This week in process excellence

Welcome to this week’s PEX Network wrap-up, where we’ve gathered the most important stories on OPEX, digital transformation, AI and process intelligence!

On Monday, our Research & Reports bulletin explored a recent study in the Business Process Management Journal which shows how small, low-tech firms can achieve business transformation through business model (BM) reconfiguration. Aruana Rosa Souza , Dra. Kadígia Faccin , and Caroline Kretschmar conducted a case study on a small, low-tech firm, illustrating how it adapted to external changes through a business model (BM) reconfiguration. Organizational flexibility played a crucial role, as the company maintained an adaptive structure, allowing it to pivot when faced with market challenges. Rather than investing in advanced technologies, the firm optimized its existing resources to adapt to customer needs, a strategy that kept it competitive and cost-effective. The researchers suggest that other small, low-tech firms adopt a similar mindset focused on reconfiguration to drive transformation. Alongside this, Jiju Antony, Vice President of Research, International Academy for Quality (IAQ) , recently commented on the importance of employee engagement and motivation to achieve a full business transformation.

Elsewhere, in the healthcare sector, the NHS is using Celonis ’ process mining technology to successfully address its operational challenges. Daniel Hayes , the NHS’s national lead for data-driven productivity, reported impressive improvements at Coventry and Warwickshire where the technology has helped streamline patient care. The Celonis platform allows Hayes’ team to analyze patient pathways, uncovering bottlenecks and inefficiencies. By adjusting their approach to patient reminders—sending notifications at 14 and four days before appointments rather than only shortly beforehand—missed appointments, or “DNAs” (Did Not Attends), have decreased by more than half, from 1,800 to 700 per week. This impactful change shortened waitlists and also created a more supportive, patient-centered experience across the network. Hayes sees a future where process mining, in combination with AI-based automation, could significantly improve healthcare efficiency and patient outcomes nationwide.

Also, Stephen Phipson CBE , Chief Executive of Make UK reported that the UK's manufacturing sector is struggling to find new recruits with the digital skills needed for transformation. ?He highlighted a "dramatic" skills gap as the sector’s biggest obstacle, with 58,000 job vacancies currently unfilled, which he attributes to an aging workforce, a decrease in apprenticeships, and limited access to European talent due to recent immigration policies. While the UK’s Industrial Strategy aims to address these concerns, many relevant qualifications are still hard to come by. Although some companies are looking to address this shortage through automation, Dr. Clive Hickman OBE , IMechE President emphasized the urgent need for a skilled labor pipeline. He proposed recruiting from countries like India as one solution, though immigration policies make this approach politically sensitive. In a recent article, Binny Gill, founder and CEO of Kognitos , also highlights the fast-paced development of AI use within manufacturing, suggesting that instead of replacing humans, it should empower the workforce.

On Wednesday, we covered the latest industry Vendor news including how Appian is revolutionizing government procurement with its latest AI-driven tool, ProcureSight , designed to simplify the complex federal procurement process. Integrated with Appian’s Requirements Management tool in its Government Acquisition suite, ProcureSight uses generative AI and semantic search to streamline research and document creation. Acquisition professionals can quickly access historical data, while an AI chatbot helps pinpoint crucial information, reducing manual research hours. With a focus on centralizing vendor, award, solicitation, and protest data from various sources, the tool enables faster, more accurate contract drafting, which could ultimately increase competition and reduce vendor pricing.

Meanwhile, FlowForma recently launched its new Copilot tool, designed to accelerate process automation. Powered by Agentic AI and Retrieval-Augmented Generation (RAG), Copilot guides process builders by suggesting relevant information and generating complete process frameworks in seconds. This tool can handle multiple languages, reducing time to design workflows from hours to minutes. Users benefit from a hands-on, intuitive approach that simplifies the automation journey, and FlowForma plans to roll out more features soon, including voice commands and interactive prompts.

We also explored the recent news surrounding the fact that IBM ’s Apptio suite and SAP ’s Signavio tools have expanded their availability, now listed on Microsoft Azure and Amazon Web Services (AWS) Marketplace, respectively. This new access streamlines digital transformations by offering business management tools that control tech costs, enhance project visibility, and improve resource allocation. By aligning with cloud giants like Azure and AWS, IBM and SAP are positioning their tools to support the operational goals of businesses in 14 additional countries. SAP’s inclusion of Process Manager, Process Intelligence, and Journey-to-Process Analytics on AWS Marketplace offers joint customers the advantage of managing processes in real time on scalable cloud infrastructure.

Also, PEX Network explored how the UK government’s G-Cloud 14 framework is the latest in cloud procurement, aimed at making cloud technology accessible to public sector organizations. From government agencies to educational institutions, G-Cloud 14 prioritizes SMEs and expands cybersecurity options, giving organizations flexibility in how they procure, scale, and secure their services. Defense.com, an approved supplier, is now offering enhanced security services like round-the-clock threat detection, addressing the critical shortage of cybersecurity talent in the public sector.

Following President Trump’s re-election, our Friday Community roundup covered the statement issued by the nonprofit RegulatingAI (RAI), which highlights its intent to collaborate with the administration on responsible AI governance. Sanjay Puri , president of RAI, emphasized the need for a balanced framework that prioritizes public interests while supporting continuous AI innovation. This partnership could signal a new approach to AI policy in the US, as the organization hopes to support advancements that benefit diverse communities.

PEX Network also covered how Shake Shack has leaned into operational excellence (OPEX) as a key driver of its growth, especially during challenging market conditions. With new locations opening, same-store sales growth, and streamlined kitchen workflows, Shake Shack has optimized its operational strategy to improve efficiency and reduce construction costs for new stores by 10 percent in 2024. The company’s approach is proof that an OPEX mindset can yield strong returns even in a turbulent economy.

Also, the UK’s Post Office Ltd introduced a new incentive program to improve branch performance, and it’s already showing promising results. This initiative allows postmasters to earn up to 5 percent additional remuneration based on operational standards. With over 3,000 branches hitting perfect scores in its first month, the program has paid out ￡871,000, demonstrating the effectiveness of data-driven performance tracking.

Meanwhile, International Airlines Group (IAG) has appointed Dr. Ben Dias , a seasoned AI visionary, as Chief AI Scientist. Dias will oversee IAG’s AI strategy across airlines including British Airways, Iberia, and Aer Lingus, focusing on improving operational efficiency, customer experience, and sustainability. With IAG.ai labs in London and Barcelona, the company aims to develop AI-powered solutions for predictive maintenance, personalized services, and automated customer support.

Also, Waygate Technologies , a 贝克休斯 business, has been awarded the 2024 Operational Excellence Award by the Kaizen Institute Global . The award recognizes Waygate’s commitment to continuous improvement through small, daily changes and centralized project management. Through optimizing workflows and improving physical layouts, Waygate has achieved a 40 percent boost in delivery punctuality and a 20 percent reduction in inventory!

Stay tuned for next week’s newsletter, where we’ll continue to explore how companies are navigating digital transformation and OPEX!

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