Integrating Operational Excellence and Digitalization

Manufacturing companies navigate two often conflicting strategic initiatives: Traditional operational excellence and digitalization. While both target process improvements, they differ substantially from each other. Thus, a conscientious approach to the integrated management of both is required.

This white paper investigates their integration across three levels: intra-program, inter-program, and individual level. The intra-program level examines the incorporation of digital tools and data within a single operational excellence program. The inter-program level explores the interfaces and potential overlaps between digitalization and operational excellence. Finally, the individual level considers the future ways of working of operational excellence practitioners, with particular focus on the digital skills and competencies they will require.

Despite widespread recognition of potential benefits, successful integration remains an ongoing challenge. Companies continue to struggle with organizational silos, technical hurdles, and cultural divides between traditional operational excellence practitioners and digital experts.

To fully realize the benefits of digitalization and operational excellence, organizations must adopt an approach grounded in shared goals that align operational and digital priorities, clear dedicated roles bridging both areas, and integrative processes that connect the programs rather than allowing them to run in parallel. Interpersonal relationships play an equally important role, fostering trust and collaboration. When these elements are reinforced by the organizational setup, the combination of digitalization and operational excellence is more likely to move beyond isolated pilots and deliver sustainable value.

At the same time, the role of operational excellence practitioners is evolving. No longer solely process experts, they must leverage digital literacy, methodological expertise, and above all, change management skills. Likewise, the digital experts must develop beyond technology embracing process understanding.