Singapore – Singapore small and medium enterprises (SMEs) have cited employee engagement, employee training and the creation of incentives as measures that will boost company innovation.
According to a research study conducted by brand strategy consulting firm StrategiCom, only 91% of the 100 interviewed SME leaders have a modern understanding of innovation. However, only 21% had the necessary tools to manage innovations.
Out of this 21%, 51% employed human resource management to engage people to innovate and develop the skills needed, while 35% utilised the need to search for external sources to provide valuable impulses for innovation direction. In addition, 29% of companies say they co-operated to share the risk and costs of innovation, and 27% developed team work for knowledge sharing.
A combination of at least three of the aforementioned innovation management instruments will result in a higher probability of successful innovations, the report stated.
Out of the SMEs that have employed innovation tools, 62% of them achieved efficiency innovation, 24% of them achieved product line novelty, market novelty and business model innovation and 14% experienced quality innovation.
Wilson Chew, group principal consultant and CEO of StrategiCom, says that because innovation extends beyond technical issues to involve people, process, technology and research, it is important that SMEs manage innovation through a holistic approach which permeates all aspects of the organisation.
"A holistic approach towards managing innovation will augment a firm’s capability to realise its innovations, resulting in greater profitability,” Chew explains.
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