Worldwide – 27 February 2025 – Singapore – INCIT is proud to announce the launch of its Operations Excellence Readiness Index (OPERI), a cutting-edge self-assessment tool that will empower micro, small, and medium enterprises (MSMEs) and MSME business owners to tackle their toughest operational challenges, unlocking key benefits like boosting productivity, fast-tracking their growth and digitalisation progress and ultimately, future-proofing their business.
Most enterprises and small businesses shut their doors within five years, but through OPERI’s in-depth analysis, manufacturing leaders are equipped with critical operational insights, enabling them to identify vulnerabilities, seize growth opportunities, and drive long-term business success.
According to McKinsey and Co., MSMEs are considered the “lifeblood of economies around the world,” accounting for more than 90 per cent of all businesses. Yet, data shows that MSMEs are only about 50 per cent as productive as large companies, but reducing that gap could create significant value for business owners and the economy.
The top 5 challenges faced by micro, small, and medium business owners and enterprises
It is critical to recognise the volatility surrounding business ownership and the key is to prioritise operational excellence from the start, specifically in the areas of efficiency and effectiveness. MSMEs, no matter how long they’ve been established, even those that survived 20 years or more, are facing significant challenges. According to our data, roughly 44 per cent of these companies are either shrinking or stagnating in terms of their profit growth over the last decade, painting a dire picture of what many enterprises must overcome.
Based on our data, these five key challenges particularly stand out as barriers to success, and this is where OPERI steps in to make a difference to improve and help them achieve operational excellence.
1. Unstable financial performance
Limited profits due to inefficient workflows, poor operational process designs, and underscored by limited digital literacy.
2. High material cost
Commodity costs will continue to rise, and MSMEs will experience high material costs due to a small pool of suppliers and restricted bargaining power.
3. Supply chain disruptions
MSMEs are at the tail end of the supply chain and are less equipped to manage global disruptions, requiring improvement of their inventory and delivery approach.
4. Human resource challenges
Due to the worldwide workforce shortage, MSMEs have difficulty attracting and retaining talent due to growth opportunities and workforce development.
5. Technological adaptation
A lack of digital literacy is a key challenge for MSMEs, affecting their ability to adopt digital tools, extract valuable insights, and deploy automation solutions.
OPERI in numbers – why Operational Excellence is the key to MSME success
According to INCIT’s data, MSME leaders and business owners can not only improve productivity but these other core areas by capturing the benefits of OPERI: operating profits (roughly 40 per cent improvement), material cost (roughly 28 per cent reduction), on-time-in-full delivery (approximately 15 per cent improvement), talent retention (20 per cent reduction in turnover) and labour productivity (35 per cent improvement in units produced per individual).
OPERI is a comprehensive, “all rounded” self-assessment tool that places leaders in the driver’s seat of their enterprise’s journey toward operational excellence and business success. It grants CEOs and business owners the ability to benchmark performance against industry peers, gaining valuable insights and knowledge to strengthen their competitive edge.
The solution to MSME’s operational challenges and increased visibility
It is clear that leaders and enterprise owners must urgently prioritise operational excellence and act now to ensure that they cultivate a continuous improvement culture and drive operational improvements – the keys to unlocking long-term, sustainable growth for MSMEs.
With clarity around operational vulnerabilities that OPERI provides, CEOs, MSME leaders and business owners can identify, address, and conquer these challenges, turning their knowledge into a lever to unlock digital literacy and integrate innovative technology efficiently. They can improve their business outlook with data-driven decision-making and uncover growth opportunities to expand into new markets with confidence.
OPERI enables manufacturing MSMEs to rise above their challenges, addressing inefficiencies, adopting cutting-edge technologies, and embedding sustainable practices to not only drive growth, but stay competitive in a challenging marketplace. The time to take action is now. Contact INCIT at contact@INCIT.org to activate your OPERI transformation today to ensure a stronger, more sustainable tomorrow for your business.
