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What Operational Optimization Means and Why It Helps SMEs

All SMEs can benefit from optimising their operations and business processes, as it helps companies stay up to date in a competitive and ever-changing market, minimise current costs, and maximise operational capabilities.

This article delves into the concept of operational optimisation and its importance in driving an SME’s performance and success.


What is operational optimisation?

In layman’s terms, operational optimisation refers to breaking down business processes, such as those in sales or manufacturing, to assess their efficiency and effectiveness. By optimising core processes in a rigorous and targeted manner, businesses can reduce costs, improve customer satisfaction, and drive higher revenue. It can also help businesses identify areas of weaknesses and vulnerabilities.


How to implement operational optimisation?

The first step of operational optimisation is to identify the problem affecting current processes. Some problems may be easy to spot: for example, if employees across the company have a hard time accessing the servers, one might guess that IT operations are inefficient. Other inefficiencies may affect only specific teams; in such cases, it helps to get employees involved and ask for feedback.

Once the problem has been identified, the business can plan for a suitable strategy and determine whether they have current assets to help resolve the issue.

Next, businesses should apply the suggested changes and streamline each process where appropriate.

Lastly, the results of the implemented changes should be observed and reviewed regularly. This may involve constant updates to improve and adjust the strategy.


How can operational optimisation benefit an SME?


Competitive advantage

SMEs today face many challenges, one being the competitive business landscape.

Constant updates to operational processes are beneficial because they allow organisations to keep up with ever-changing market demands and innovative competitors. Moreover, operational optimisation reduces inefficiencies and bottlenecks, resulting in smoother operations. As such, businesses can better meet customer demand for product or services, thus increasing customer satisfaction.


Quality results

Operational optimisation helps simplify processes by removing unnecessary steps and automating time-consuming tasks. Hence, it helps reduce costly errors and ensure consistent results for clients and customers.


Improve efficiency

Many businesses rely on inefficient systems and processes, which lead to wasted time and resources. Outdated processes may also add undue stress to employees, leading to poor employee satisfaction and undesirable results.

Operational optimisation allows your business to identify consistencies and eliminate inefficiencies, improving productivity and allowing employees to dedicate more time to value-adding tasks. In addition, it encourages right person-job fit: by identifying the different job roles and understanding employees’ strength and weaknesses, firms can better leverage their human capital.


Track employee performance

Creating optimised and efficient processes helps businesses ensure total transparency and increase employee accountability. As such, it can help boost employee performance and productivity.



Operational optimisation plays a significant role in boosting a business’ productivity and performance. Ultimately, it ensures your SME remains competitive in a saturated market; as such, it is always critical to invest in process optimisation.

If you’re looking for advice regarding operational optimisation, reach out to LiT Strategy. We are a business consultancy firm in Singapore that provides EDG grant consultant and PSG Job Redesign advisory services.