India defeats China in industrial growth. Lessons for China to learn

Nine-in-ten businesses in India are caught out by unplanned business growth, exposing them to unexpected operational and resourcing risks, a survey by Epicor Software has revealed.

It provides a shockingly honest view of the realities of business growth.

“Not having the right initiative, infrastructure, head count, planning and the right fiscal decisions lead to unplanned growth,” said Sabby Gill Executive Vice President, Epicor International.

India vs China

Globally 70% of the businesses showed growth in 2016, compared to 58% in 2015. Though China is a developed nation, India is ahead of the race.

1. In India there is 84% growth and 80% in China in 2016.

2. In India only 20% of the growth was in tune with the business plan while in China only 9% business showed planned growth.

Sectors

The global statistics showed that the manufacturing sector showed most planned growth, while the distribution sector showed the least planned growth.

Pitfalls of growth

In India, business leaders admitted that they even fear the consequences of growth – citing excessive pressure of staff, product quality and customer satisfaction levels as negative impacts.

• 63% said they worry that business growth puts excessive pressure on operations, damaging quality and customer satisfaction.

• Half (52%) were also concerned that their business IT systems may prove unable to cope with managing a larger, more complex, business model.

• 66 per cent of business leaders said that as a result of growth, they worry that their business might take on large or complex projects that they lack the skill set and technology to deliver effectively, damaging their brand reputation.

• 59 per cent said that due to growth, workloads may increase to a level that places too much pressure on staff, prompting key people to leave.

• 60 per cent of business leaders even worry that they are not personally prepared for the challenges of managing a larger, more diverse business.

Dangers of unplanned growth

Senior executives identify four key dangers that they most wish to avoid when growing their businesses:

• 33% believe loss of intimacy with customers is a result of unplanned growth. For a small or midsize business customer intimacy is much easier. But as the business grows there comes a point where the same direct personal contact can’t be maintained and businesses have to introduce other people and processes to manage relationships. 


• 42% fear lack of management control. Senior management cannot possibly maintain personal direct involvement in a large business. Effective control can only be maintained by efficient delegation, access to good quality management information and the automation of key processes 


• 40% fear lack of visibility of business operations. No one person can personally have direct visibility of all that is going on in a large business. This can only be achieved by collecting, distilling, editing and presenting meaningful management information in a timely manner 


Top growth stimulants

The report also identified the success factors to how businesses can better plan for growth.

The top two stimulants for growth were ‘technology leadership’ and ‘skilled workforce’.

82% in India think infrastructure is essential for achieving 100% planned growth.

Overall, business growth was found to be challenging as well as rewarding. Businesses across the globe need to prepare for all forms of growth more effectively.

The global research, which surveyed 1,826 business leaders worldwide and 104 in India, delves into the widespread problems of business growth when it is not planned for effectively.
(Image credits: indiatimes)