OPEX

ASIA
2019:
state of the industry
Asia vs RoW
Contents
2

Introduction 3

Note on the data 3

Analysis 4

Conclusion 14

OPEX Asia 2019: state of the industry Asia vs RoW

Introduction
3

Asia is a small word for a huge region. The largest and most-populated continent on the
planet, its influence extends well beyond any geographical border - though as China
grows in economic power, Asian companies are increasingly looking to deal with their near
neighbour. It’s a complicated picture; OPEX has a role - but how does it fit in?

There are really three main questions, and this paper will give some insights into the answers:

How does the Asia region differ from the rest of the world?
What trends have had a big impact recently?
What are the threats to growth?

To consider these questions, we need to look into the data that we have collected from OPEX
leaders in 2018. The PEX Global Annual survey gives us a global snapshot of the Process
Excellence on a macro level, but how do the figures stack up when they are broken down by
region? In this paper, we’ll be looking at selected highlights of the PEX Report showing some
of the key figures comparing the Asian responses to the Rest of the World (RoW).

Notes on the data

The State of the Industry Process Excellence Survey gathered data from a self selecting
sample of worldwide PEX professionals. In total, 881 respondents answered the survey, 150
of whom identified as from the ‘Asia’ region.

Scores are shown as percentages, rounded to the nearest whole number; in some cases this
may result in totals that are not exactly 100%. In some cases the option to select more than
one answer gives much higher totals than 100%.

Where it makes sense to do so, the tables have been sorted in descending order of values
(ie. from highest to lowest) for the Asia region.

OPEX Asia 2019: state of the industry Asia vs RoW

Analysis
4

What management solutions are you looking to invest in to drive your operational excellence
projects over the next 12 months? (please check all that apply)

Asia Row

57% 55% 48% 45%

44% 47% 40% 38%

Data Analytics/ Strategic/ Cultural Workflow

Business Intelligence Operational Excellence Transformation Automation

37% 36% 16% 15%

41% 37% 13% 14%

Behavioral/ Process Mapping/ BPM Process

Employee Engagement Modeling Tools Suites Simulation

PEX: Understanding the business is a top priority in Asian
respondents. Using data to drive strategy is an approach
that should drive benefits - with businesses responding
to what really works. ‘What really works’, however, is often
buried deep in the workings of a business, so a proper
analysis suggests that these companies are looking to the
real world rather than ‘Process Simulation’ (bottom of the
list) to inform future moves.

OPEX Asia 2019: state of the industry Asia vs RoW

Analysis
5

In which functions of your business are you applying operational excellence methodologies?
(please check all that apply)

60%
General Business Operations 69%

40%
Manufacturing 30%

36%
IT 36%

35%
Supply Chain 29%

34%
Human Resources 30%

31%
Finance 29%

28%
Customer Service (excluding Call Center) 34%

25%
Procurement 30%

18%
Call Center/Customer Contact Center 21%

18%
Sales 24%

17%
Marketing 21%

17%
R&D 17%

11%
Travel & Expenses 9%

10%
Distribution 14%

8%
Legal 9%

5%
Other 4% Asia Row

PEX: Perhaps unsurprisingly, manufacturing is high on the priorities of Asian respondents.

OPEX Asia 2019: state of the industry Asia vs RoW

Analysis
6

From a scale of 1 - 10 how would you rate the success of your operational excellence programs?

10 2
9 3
4

Asia
6 10 1 2
9
3

4
7
8

RoW 5

PEX: Asia is seeing slightly more positive outcomes of raises the question: do Asian companies get more for their
their OPEX programmes than RoW. Obviously this large efforts? Or are their expectations managed differently? Is
figure masks what is a much more varied picture, but it there some overselling of the benefits of OPEX?

OPEX Asia 2019: state of the industry Asia vs RoW

Analysis
7

Which of the following best describes how your company views the process excellence/
operational excellence function?

Asia Row

32% 17% 16% 15%

34% 18% 10% 7%

A way to help the A way to improve customer A way to improve the A way to deliver culture and
organization deliver its satisfaction through better quality of a product leadership change across
strategic objectives quality and efficiency or service your organizations

12% 5% 4%
21% 2% 3%

A way to cut costs by A way to ensure A way to automate processes

improving productivity and/or compliance with through the application of
reducing headcount regulatory regimes software such as BPM Suites

PEX: Across the board, PEX and OPEX are overwhelmingly being a major stumbling block in implementation of new
seen as essential for delivering strategic objectives. One ideas, this suggests Asian companies may have the edge
major difference between Asai and RoW is the delivery of when it comes to agility and rolling with the changes
culture and leadership change. With change management enforced by fluctuating markets or uncertain geopolitics.

OPEX Asia 2019: state of the industry Asia vs RoW

Analysis
8

What is your primary measure of success for your Process Excellence program?

Increased Throughput/Efficiency 23%

18%

Business Transformation 13%

12%

12%
Cost Savings
19%

11%
Customer Satisfaction
12%

Improved Customer Satisfaction (Net 10%

7%
Promoter Score or other measure)

Aligned Strategy and Process 10%

15%
Transformation

8%
Employee attitude change
6%

6%
Top line Revenue Growth
5%

3%
Reduced Operational Risk

3%
Reduced Defects 2%

1%
Number of Trained Employees 1% Asia Row

PEX: Asia is slightly more satisfied with the outcomes of their OPEX programmes than RoW.

OPEX Asia 2019: state of the industry Asia vs RoW

Analysis
8

In 2019, is the number of people employed full-time in process improvement in your company
is expected to:

Asia Row

50%
38%

Increase
36%
43%

Remain Same
6%
5%

Decrease
7%
14%

Don’t know

PEX: Asia is markedly more optimistic with half of respondents The ‘don’t knows’ are often an afterthought - but something
anticipating an increase in budget. RoW is expecting that interesting is happening here: Asia’s figure is half that of
things won’t change - it’s quite a difference between RoW. There seems to be more clarity in Asia about the
investing in the future and clinging on to the status quo. changes coming down the track - whether they’re good or bad.

OPEX Asia 2019: state of the industry Asia vs RoW

Analysis
8

What is the annual budget for investment in operational excellence next year?

36%
$0-$500,000 46%

12%
$500,000 to $999,999 9%

7%
$1 million to $5 million 8%

4%
$5 million to $10 million 4%

4%
Over $10 million 1%

4%
Over $50 million
1%

Don’t know 34%

31% Asia Row

PEX: Asia enjoys a wider spread of investment up to the these categories are the biggest players of all, and that
top of the budget options given. The difference between kind of investment could have a major impact.
4% and 1% might not seem much, but the businesses in

OPEX Asia 2019: state of the industry Asia vs RoW

Analysis
9

Which of the following best describes the current scope (in 2018) of the Process Excellence/
Operational Excellence deployment at your company?

Asia Row

7% 18%
10% 21%

No process excellence/operational Have trained process improvement

excellence program resources but no formal process
excellence/operational excellence program

26% 21% 28%

18% 28% 23%

Small-scale pilot One or more business units Enterprise wide

PEX: Again, Asia is edging ahead of RoW with more though having no PEX/OPEX program is becoming a less
mature projects and small scale pilots. It does look as viable option for businesses around the world.

OPEX Asia 2019: state of the industry Asia vs RoW

Analysis
9

How long has your organization had a formal process/operational excellence program?

15%
Not applicable (don’t
17%
have a process
excellence/operational
excellence program)

13%
Less than 1 year
17%

20%
1 to 2 years
19%

16%
3 to 4 years
16%

13%
5 to 6 years
9%

11%
7 to 10 years
11%

11 or more years 12%

10% Asia Row

PEX: Asian projects are slightly more mature than RoW - but not by much.

OPEX Asia 2019: state of the industry Asia vs RoW

Analysis
10

Which statement best describes the effect the economy is having on your operational excellence
program budget? (select one)

Asia Row

20%
19%

49%
Budget is expected to
decline in 2018

57%

31%
Budget is expected to
remain flat in 2018

24%

Budget is expected to
increase in 2018

PEX: Asia confirms a bullish attitude towards their budget.

OPEX Asia 2019: state of the industry Asia vs RoW

Conclusion
11

Asia expects more budget in the future, and although their projects are broadly maturing
at the same rate as RoW, Asia is more satisfied in the outcome of OPEX programs, and get
better results.

Investment in OPEX and PEX seem good strategies for businesses in Asia: peers are already
doing it, and customers expect it. The budget should be there, best practice should be
established and the benefits are clear.

One of the big differences - RoW is looking for increased revenue while Asia is looking to
increase efficiency and throughput - may account for some of these differences: attitude
plays a crucial role. You can’t change your circumstances, but you can change your response;
and this has given way to a self-reinforcing culture that is showing more enthusiasm and
return on that enthusiasm that gives Asian businesses a considerable advantage.
Key speakers include:

HEMANTH SUBRAMANYA DEEPA RENJEN

Vice President, Business Director, Digital
Excellence Operations &
SGX Process Excellence
Petronas

AMIT SHARMA SELVEEN MUNIANDY

Director, Operations Head, Robotics Process
Excellence, Automation CoE
Engineering & Innovation RHB Banking Group
DB Schenker

Fuelled by digitisation and today’s competitive business environment, operational and

process excellence approaches are becoming increasingly pragmatic in addressing
the strategic business objectives for many of Asia’s leading organisations. Join us at the
OPEX (Operational & Process Excellence) Week Asia 2019 to explore topics ranging
from digitising business processes, robotics, customer-centric process innovation,
data-driven operational excellence and more.

15-18 April 2019

Singapore
pexasia.iqpc.sg

Scaling Organizational Agility & Performance

through Business Digitalization, Operational
Innovation and Customer-Centric Transformation