Business Times Singapore. English., © 2010 Singapore Press Holdings Limited
This Week's Topic:
A recent SME innovation survey released by brand management consulting firm StrategiCom showed that only 21 of the 100 respondents said they have the right tools to innovate, and actually do so. Do you think SMEs will bite into the new Productivity and Innovation scheme? Why aren't more SMEs embracing innovation, and how do you think more can be encouraged to do so?
Cheryl Tong
Managing Director
Pursuit Pte Ltd
INNOVATION is definitely important for a company's long-term productivity. The innovation survey by StrategiCom might have been conducted during the period when most companies were grappling with surviving the recession. This may explain the low proportion of SMEs embracing innovation.
As the economy recovers, competition will compel companies to improve their productivity by adopting productivity tools such IT applications to automate processes and control. However, there are other ways to improve productivity without the need for capital expenses. These include innovating more efficient operation processes and researching better ways of doing things. Small improvements in processes can lead to significant productivity increase.
Many SMEs have a lean management team and in the hustle and bustle of running the business, they may not have the time nor the tools to study and evaluate processes to identify areas for improvement. This is where external consultants can help.
The Productivity and Innovation scheme can support SMEs in identifying qualified consultants and providing grants to defray the cost of engaging them to assist SMEs to innovate. These consultants could also cover the spectrum of intellectual property rights for the company's innovations.
We hope that the Productivity and Innovation scheme would have minimal red tape and be easily accessible for companies to apply.
Pursuit has always adopted a company-wide approach to productivity and innovation improvement. Innovation is not just top down. Our rank and file staff are encouraged to contribute ideas for improvement and we have a reward system to reward those who contribute to innovation and productivity improvement.
Donna Lim
Executive Director
HSR Property Group
IN the new world of disorder, the rate of change will be faster than ever before. What works yesterday may not tomorrow. Therefore, SMEs need to innovate or risk becoming lunch for those who do.
The challenge for SMEs is to integrate innovation in not just management, but every level of the organisational hierarchy. Innovation should become a systemic capability, a value proposition for their clients that is deeply embedded in their culture, structure, systems and processes.
Unfortunately, the misconception is that innovation is to be delegated only to a part of the organisation eg R&D department rather than being an integral part of every employee's role and responsibilities. By tapping on collective creative power of the organisation, SMEs can enhance productivity and the bottomline.
To orchestrate a culture of innovation, SMEs need to commit itself to building a learning organisation that is willing to accept failures as a necessary part of growth. It should put the spotlights on the new heroes of innovation and introduce incentive schemes to reward breakthrough thinking. There should be open communication to build an organisation that will not accept status quo and have a passion for constant and radical improvements.
Fong Loo Fern
Managing Director
CYC The Custom Shop Pte Ltd
I BELIEVE that innovation is very important in this day and age of intense competition in almost every industry. To stand out in this crowded marketplace, we need not only to innovate but to also differentiate ourselves.
For companies who are forward looking and are prepared to make changes, I believe the new Productivity and Innovation scheme will be well received. As far as we are concerned, we are thankful that our government has the vision and capability to offer assistance to businesses to improve so that we can compete in the global market place. Not many countries in the world have such schemes to help businesses to grow and compete.
I believe many SME's are keen to embrace innovation but, the major obstacles are time and manpower. This is a difficult problem to overcome as Singapore's employment market is getting tight again. Perhaps, MOM may have to re-consider it's foreign worker policy.
Jerry Tan Soon Huat
Managing Director
Hu Lee Impex Pte Ltd
MY humble opinion is that this could be because most SMEs are run 'family style' and have limited professionals to assist to execute projects. They must be ready to accept outsiders to join them and position the right person doing the right job. Otherwise, professionals will not be leaving their existing job to join SMEs.
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