Process mining market set for robust growth & media firms face digital transformation hurdles

PEX Network’s weekly news bulletin rounds up the latest research, reports and publications in operational excellence (OPEX), digital transformation, artificial intelligence (AI) and automation, business process management (BPM), process mining and process intelligence and more.

This week includes:

• Global process mining market poised for strong growth
• Media companies face significant digital transformation hurdles
• Microsoft highlights Australia’s most promising AI opportunities
• Digital transformation augments long-term M&A performance
• OPEX yields positive outcomes in sales organization setting

Global process mining market poised for strong growth

The process mining software market is poised for robust growth, driven by continued demand for operational insights and process optimization. Increasing investments in AI and machine learning are expected to enhance process mining capabilities, making solutions more predictive and adaptive. That’s according to new research from Verified Market Research.

“The process mining software market is expanding across key regions, including North America, Europe, Asia-Pacific and Latin America. North America and Europe are currently dominant due to their high adoption of digital transformation technologies,” the report reads. However, Asia-Pacific is expected to witness significant growth due to increasing investments in process optimization tools and rapid industrial digitalization. “Latin America and the Middle East are also emerging markets where the adoption of process mining software is anticipated to grow, supported by economic reforms and a focus on efficiency.”

Tony Benedict, president of the Association of BPM Professionals International, discusses breaking down silos in process management

Media companies face significant digital transformation hurdles

Media companies face considerable hurdles in digital transformation, with more than half of firms struggling to implement automated workflows and system connectivity. That’s according to the M-Connect Survey from content management firm Mediagenix. Based on responses gathered during the May 2024 M-Connect event, the findings show that nearly half of media companies use data-driven strategies only sporadically. Organizations scored an average of 2.3 out of 5 for their approaches to automation, while just 33 percent have developed a deliberate strategy to automate core processes, highlighting a major opportunity for improving efficiency and reducing operational errors.

“The industry needs to step up its use of smart workflows to remain competitive,” commented Gunel Mammadova, director, corporate planning and management at media company MBC Group. “At MBC Group we understand that achieving high maturity in these areas means we are better positioned to navigate challenges, make the most of new opportunities, and deliver content more efficiently. By capitalising on data-driven decision-making, automating our processes and connecting our systems, MBC is future-proofing its workflows.”

Nao Anthony, Commonwealth Bank, and Tariq Munir, PepsiCo, discuss the complexities and challenges of digital transformation

Microsoft highlights Australia’s most promising AI opportunities

A new report has revealed how Australia can lead in the new global AI economy, highlighting the nation’s most promising opportunities across all the components that power generative AI technology. Australia’s opportunity in the new AI economy, published by Microsoft and consultancy Mandala Partners, identifies applications, AI datacenters and data, based on the tech layers that underpin generative AI. Together, these areas represent 90 percent of the projected A$18.8 billion (more than US$ 12 million) in annual revenue that Australia could generate across the entire generative AI tech stack by 2035, according to the report.

The paper outlines targeted actions industry and government can take to capitalize on AI opportunities including support for local startups and new technologies, securing renewable energy and developing Australia’s AI workforce. It also highlights the role that industry and government can play in mitigating the risks and challenges associated with AI such as bias, unpredictability, misuse, digital exclusion and security.

“Australia has a solid foundation for AI, with its favorable business environment, strong sustainability credentials and high level of AI readiness all being among the country’s key strengths,” said Steven Worrall, managing director at Microsoft Australia and New Zealand. “We’re excited to be partnering with startups, datacenter companies and other business and government organizations to unlock the significant opportunities outlined in this report.”

Thought leader Vishal Bhalla reflects on the pros and cons of AI

Digital transformation augments long-term M&A performance

Digital transformation efforts of traditional enterprises possess the potential to substantially augment long-term merger and acquisition (M&A) performance, a new research paper found. “We argue that, differing from the ‘winner-take-all’ logic observed in M&A undertaken by born-digital enterprises, digital transformation initiatives pursued by traditional firms can enhance long-term M&A performance by mitigating internal control costs in terms of organizational inertia,” the authors wrote.

The findings come from an analysis of M&A activities conducted by publicly listed Chinese firms. When compared to “technology-based” digital transformation, “application-based” digital transformation exhibits a superior capacity to facilitate long-term M&A performance by alleviating routine rigidity. “This study extends the application of organizational inertia theory to the digital economy era and provides practical insights for enterprises that are implementing digital-transformation strategies.”

OPEX yields positive outcomes in sales organization setting

A new study explored the application of OPEX within a sales organization, highlighting the benefits of OPEX in improving efficiency, reducing waste, enhancing employee satisfaction and time management. The study emphasizes the importance of aligning OPEX with organizational culture, leadership and continuous improvement to achieve sustainable success, outlining a theoretical framework covering various OPEX models focusing mainly on Lean and identifying key success factors such as leadership, workforce engagement and effective communication.

“The pilot phase yielded positive outcomes, including high trust levels, managerial support, continuous improvement recognition, clear communication and high employee engagement,” the author wrote. However, challenges include balancing continuous improvement activities with regular tasks, confusing training materials, language barriers, fast implementation pace and a lack of managerial support in daily work, they added. Improvement suggestions included tailored training, better time management, stronger managerial support, clear process documentation and fostering a culture of continuous improvement.

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