Half of businesses deploy enterprise-wide OPEX & transformation

Almost half of organizations are deploying enterprise-wide operational excellence (OPEX) and business transformation initiatives. That’s according to the PEX Report 2024/25, which compiles and assesses the findings of a recent survey of almost 200 business professionals.

The survey found that while OPEX and business transformation journeys are complex and present significant challenges, 48 percent of business are embarking on them in an enterprise-wide fashion, a significant increase from 2023 (37 percent).

Importance of enterprise-wide OPEX and business transformation

Enterprise-wide deployment of OPEX is key to ensuring comprehensive and sustainable improvements, says Ricardo Henriques, transformation leader at EDP, business automation professor at Católica Lisbon School of Business and Economics. “By touching all corners of the enterprise, these initiatives ensure that every part of the organization contributes to and benefits from OPEX.”

Debashish Sarkar, managing partner at Proliferator Advisory & Consulting, concurs, adding that unlocking the full potential of business transformation hinges on comprehensive implementation across the entire organization. “This is crucial because core processes often span functional silos, requiring an enterprise-wide rollout for seamless integration,” he says. A piecemeal approach risks a ‘half-baked’ transformation that delivers only localized benefits or falls short of its intended impact.

Less than a quarter (21 percent) of businesses are deploying OPEX/transformation initiatives at one or more business units, while 7 percent are doing so via small-scale pilots. A fifth have trained process improvement resources but no formal process excellence/OPEX program, with just 4 percent having no OPEX/transformation strategy at all.

Pradheep Kileti, National Grid, discusses balancing operations and innovation

Building OPEX and business transformation

One-third of surveyed businesses are currently building an OPEX/transformation process base and framework, a small increase compared to 2023. Meanwhile, 20 percent have optimized processes, implemented technology and are conducting continuous improvement/adjustments, with slightly less (17 percent) having implemented initial technology and looking to go further. Only 10 percent of businesses are yet to embark on an OPEX and business transformation journey with 5 percent considering solution providers to partner with.

OPEX and business transformation strategies are mission critical in helping to drive growth, manage turnaround and deliver strategic objectives within organizations, according to almost half (47 percent) of respondents. Improving productivity and efficiency (43 percent), improving customer satisfaction (32 percent) and adapting to new ways of working/automating processes (both 24 percent) are the next biggest advantages of OPEX and business transformation.

Increased throughput/efficiency is the primary measure of OPEX and business transformation, applied by 26 percent of respondents, followed by cost savings (17 percent) and business top-line growth (14 percent).

3 areas of OPEX and business transformation

The key drivers of OPEX and business transformation initiatives can be categorized into three main areas, says Henriques. These are increasing competitiveness in the market, enhancing customer relevance and becoming more attractive to potential employees. “Organizations must continuously innovate and adapt to changing market conditions and technological advancements. Implementing Agile methodologies and fostering a culture of continuous improvement helps in staying ahead of competitors.”

Likewise, by streamlining processes to eliminate waste, reduce costs and improve efficiency, businesses can ensure they deliver high-quality products and services faster and at a lower cost, which is essential for maintaining a competitive edge, Henriques adds.

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