IN TODAY'S competitive environment, SMEs and start-ups have to establish themselves and scale up their businesses from day one. These companies need to identify their niche competencies and develop their capabilities to meet the demands of the global market.
One strategy is for companies to develop new product and service offerings to stay ahead of their competition. They could leverage technological innovation by undertaking in-house R&D projects, partnering research organisations and institutes of higher learning, or getting a licence for appropriate technology. Boosting a company's marketing and branding capabilities so as to differentiate products and services from the competition is another important strategy. In order to ensure on-time delivery and quality, there is also a need to upgrade operational or manpower capabilities, in order to achieve increased efficiency and productivity.
As the enterprise development agency, SPRING Singapore aims to encourage the growth of more competitive companies. In addition to developing an environment conducive to enterprise growth, SPRING has put in place a spectrum of assistance programmes to help companies upgrade their capabilities and enter global markets. In particular, SPRING has supported over 3,800 capability development-related projects, with a total of $98 million in grants being awarded last year. Through these efforts, companies from various industry sectors are supported and encouraged to embark on capability-related projects.
Here are two examples of innovative Singapore companies which have developed capabilities in different areas, to ensure their long- term growth and forge ahead of the competition.
Udders - Building a brand for worldwide recognition
Udders Ice Cream is a home-grown ice cream parlour business, specialising in fresh, home-made quality ice cream, ranging from cosmopolitan to strong liqueur and Asian-inspired flavours. Udders' brand statement is: converting customers into fans with its mind-blowing ice cream flavours, especially liqueur ice cream, at an irresistible price point and served with a generous dollop of quirky good humour. It entered Singapore's F&B market in 2008, and in a short space of two years won the Emerging Enterprise Award in 2010.
However, in Singapore's extremely competitive and fast-changing F&B space, founder David Yim knew that staying ahead of the pack in its brand thinking was critical. Taking advantage of SPRING's BrandPact Programme, Udders worked with brand consultants to objectively examine how customers perceive it and developed a clear messaging strategy to reinforce its brand. By creating original Udders design elements that communicate this messaging, the project reinforced Udders' fun and flavourful ice cream image.
'The BrandPact project helped us gain clarity about our target audience and to better tailor our new offerings to them,' explained Mr Yim. 'For example, we launched a new range of sweet liqueur toppings for customers who are fans of our liqueur ice cream flavours. For the Christmas season, we also introduced Rum Rum Raisin ice cream log cakes, as well as Mao Shan Wang Durian ice cream log cakes for those who like a quirky twist to their Christmas treat. All these were new revenue-generating ideas born from understanding what appeals to this group of Udders customers.'
He added: 'The project also helped us pin down key design elements, which form part of our identity and appear at our outlets. These were captured in a Brand Manual, which is useful for controlling and auditing brand standards as we grow further.'
Udders' fifth outlet in Serangoon Gardens was designed as part of the BrandPact project. Launched last February, this outlet incorporated new interior design elements to provide the outlet with a cosy feel and reflect Udders' quirky brand values. One example is using Udders' take-away pint tubs and T-shirts as lamp shades. In addition to being a great talking point, these unique, cost-effective lamp shades serve as a reminder to patrons that they can take home ice cream too.
Understanding that it is Udders' staff who make the brand come alive and have a soul, the consultants also conducted a 'brand culturalisation' workshop for staff. By communicating Udders' brand values in a fun and engaging way, the workshop helped the staff understand Udders' brand values and carry the brand better as ambassadors.
Having completed this strategic branding project, Udders aims to implement the results to gain more mindshare in the market and increase brand loyalty among ice cream lovers, even as it continues to invest in new offerings to keep them coming back for more. With a better defined brand, the company is ready to expand internationally this year.
KAI Square - Innovating technology applications to enter new markets
Founded in 2006, KAI Square provides customised intelligent video analytics solutions by leveraging the data from cameras and tapping cloud architecture. It has since established a leadership position in Singapore in providing innovative surveillance and monitoring technology solutions for sectors such as homeland security, transport and logistics, and won the Emerging Enterprise Award in 2010.
The company was keen to branch out into new markets - in particular, the expanding healthcare sector. KAI Square co-founder and CEO Neo Shi Yong quickly realised that while the company's technology platform could be applied to the healthcare sector, it would need added features to handle the greater range of variables, as required by healthcare professionals and their patients. KAI Square decided to tap a SPRING grant in 2010, to conduct product R&D and build up the team's experience in handling video analytical projects for the healthcare industry.
In 2011, KAI Square test-bedded its new technology application, called KAI Square Health, in a Singapore hospital. KAI Square Health was installed to monitor patients and their vital signs through cameras. The application analyses the video stream and if a patient shows signs of distress or if the vital signs exceed stipulated thresholds, the system automatically alerts medical staff through SMS alerts. This way, healthcare professionals can monitor patients and their vital signs conveniently from their workstations.
KAI Square Health also incorporated patient tags, fitted with Wifi location trackers and an emergency distress button. Through these tags, patients can be easily tracked, even during a hospital transfer, and can signal when they need assistance. KAI Square Health streams patients' information into a server, enabling the medical team to access past and present data, while minimising the need for manual data entry.
Dr Neo said: 'We wanted our surveillance and monitoring technology to have an impact by directly saving lives, and we knew the healthcare sector could benefit greatly from the better use of technology. After test-bedding this pilot project, we are currently in the process of fine-tuning KAI Square Health, and plan to fully commercialise the solution in 2012.'
He believes the new technology application holds huge potential for the company. Over the next two years, he expects KAI Square Health to contribute some $400,000 in revenue to the company, from the Singapore healthcare industry alone. Furthermore, he plans to take the solution global, targeting the Middle East and China, with potential revenue hitting as high as $10 million. However, beyond just increased revenue for KAI Square, Dr Neo stressed that the benefits of the technology innovation would be felt most by the healthcare industry, as medical professionals can increase their productivity and patients can receive better treatment and care.
Developing capabilities is an ongoing process for companies that wish to sustain their growth and compete globally, during good times and bad. When times are good, innovative companies which have built up strong competencies are able to expand their business, venture into new markets and ride the wave of success. During an economic slowdown, it is companies with the right capabilities who can adapt more easily and cushion themselves from the downturn - for example, by shortening time to market for new products, reducing operational costs or boosting overall efficiency.
In a nutshell, as explained by Teo Ser Luck, Minister of State for Trade & Industry in his speech at the 2011 Enterprise 50 Awards: 'The enterprises that prove to be successful are those that are ever mindful of optimising their businesses, such that they are primed to seize opportunities even during uncertain times, through building business capabilities and productivity improvements.'
This article was contributed by SPRING Singapore