There are so many important strategic initiatives that must be considered each year to ensure company success that they don’t all make it into the final budget. But one that is on the rise is investment in strategic / operational excellence solutions for 2016 with 55% of companies indicating this is a key investment area according to a recent PEX Network report.
That’s no surprise considering the speed at which business and technology changes in today’s busy environment.
Without digging into the specifics of every single business, it’s tough to nail down exactly what’s driving this surge in investment, but here are a few possibilities.
1. Operational Excellence Is A Long Term Commitment
Operational excellence (OE) has a lot of moving parts that involves process, people and technology. It’s not just about becoming more efficient and reducing costs, nor is it an event based program with a hard start and end date. Many companies begin the shift to OE in departmental siloes and may need time to expand inside the organization. OE overall involves a huge shift in the organizational culture from the top to the frontline with the goal being a company that continuously questions the status quo for opportunities to improve both inside and outside of the company.
2. Technology Needs To Catch Up
It’s likely that technology envisioned to support the shift in business approach at the start of the transition to OE is still in the process of acquisition or implementation. Most technology solutions take quite some time from start to finish. That means there are probably stop gap low code app development solutions that were created to meet the needs of the business while it was waiting for the final technology solution. It could also mean that issues have surfaced which require a whole new technology solution to achieve business requirements.
3. New Information Has Surfaced
Information comes at businesses today in the form of a data tidal wave. Each company needs a plan to determine what data is important that will help them achieve their strategic objectives and a way to track what’s critical to inform important decisions that need to be made.
These points are supported by additional results shared in the 2015/2016 PEX 4th Biennial State of the Industry Report.
- Leadership and Cultural Strategy is the number one process improvement focus for organizations in 2015/16, with just under half (47.1%) of organizations identifying this as a main focus of programs. Making cultural changes takes a lot of time and money.
- Data Analytics / Business Intelligence has increased in importance and investment focus over the last three years. In 2013/14, 28.57% of organizations were looking to target Data Analytics / Business Intelligence as a targeted OE Solution. Last year it grew to 33.80% of organizations and this year to 43.5%.
- There is increased urgency and focus by professionals wanting to invest in Process Mapping / Modeling Tools, which 37.9% of organizations plan to invest in. This has surged from 21.80% last year and from 8.16% in 2013/14.
- Respondents were also asked to predict whether the number of full time employees dedicated to an improvement program would increase, remain the same or decrease over the next 12 months, and while 40% believe headcount numbers will not change going into 2016, 39.1% believe process improvement employee numbers will increase.
Attending #PEXWEEK in Orlando this week? Stop by the Intuit QuickBase booth, #1, and learn more about how a low-code rapid app development platform can support your operational excellence initiatives.Posted in Operational Excellence, Process Improvement | Tagged operational efficiency, PEX, PEXWEEK, process improvement