Manufacturing companies hit a new wave
The words entrepreneur and innovation brings to mind a young individual striking out on his own, struggling to market his new idea or product.
Now what stands out in a world of piracy and cheap replica's?
A new product, yes...that must be unique, not something that the market already has nor a variation.
A product that has added value to its consumers.
And most of all, consumers must like it.
Niche market, that's what we can call it.
But considering that we're advancing as such a breaknecked pace, creating a niche market is one thing, sustaining it is another.
Well, it seems manufacturing companies may have to join in this fun filled world of 'who gets the most customers'.
And of course as the end users, we are in for a treat to a wide selection of products available on the market....we're simply spoiled for choice, but whose complaining? Certainly not me.
According to an article on the Business Times website entitled R&D tolerate short -term pain for long term gain.
It said, until the late 1990's, the primary strengths of manufacturing centres was its ability to provide low-cost labour and resources.
However, the industry was in for a rude awakening as China emerged as a leading offshore manufacturing platform.
In terms of pricing, they certainly beat us hands down. Upgrading one's traditional assembly line certainly won't do much good.
Jong Voon Hoo the Chief financial officer of China-based Youcan Foods said in a statement on an article entitled Gaining an edge through innovation on the Business Times website today that 'Competition is intensifying across most industries and it is getting more difficult to find unique selling points on similar products. Therefore it is important that our R&D department remain creative'.
His fears are not unfounded as Fong Saik Hay, the chief technology officer of ST Engineering and president of ST Dynamics is also chomping at the bit through partnerships with research institutes, small start-ups and other mature companies.
So the bigger companies have their work cut out for them. Where does that leave small companies who do not have the resources?
No fear for the government is here!
Allow me to just rattle of a couple of government aids:
First, the Singapore Economic Development Board instituted the Product and Process Development Assistance Scheme to give local companies a hand to improve their design and development capabilities.
Second, Spring Singapore has launched a S$150 mln Technology Innovation Programme last August. It has set up Centers that provide technology consultancy and advise to small and medium enterprises.
It has also launched a S$9 mln Intellectual Property Management programme allows SME's to protect their products from copyright issues.
In the same article, Darius Cheung, the Chief Executive Officer of mobile technology start-up tenCube gives us a glimpse as to why manufacturing companies were not big on investing in its R&D arm.
He says that 'Asian companies are commonly pressured to focus on short-term profits without the freedom to invest in creative processes that may be difficult to justify in terms of monetary returns.
However he added that this very same process may be the one to produce tremendous bottom-line results.
So, we've covered the direction on which manufacturing companies are heading towards and the funding that will be available to them.
Not forgetting that ideas are..ultimately generated from people.
So about the welfare side.
Companies such as ST Engineering and tenCube are pressing hard on creating a 'conducive and supportive environment' and culture which will allow 'creativity to thrive' and some are even offering monetary incentives.
But it seems innovative R&D still has a rather way to go.
Resolving technologies and funding issues are just the tip of the ice berg and i dare say may be the easier obstacles.
With so many variations of products on the market, obtaining a unique selling point and meeting consumer demand is certainly not a stroll in the park.
More effort has to be placed in research gathering, to understand the end consumer before being able to create a product that will stand out and appeal.
After all culture is not something that can be created or changed overnight.
Yeo Sue En
As always, please see your licensed financial advisor before making any financial decisions.
ArchivesNow what stands out in a world of piracy and cheap replica's?
A new product, yes...that must be unique, not something that the market already has nor a variation.
A product that has added value to its consumers.
And most of all, consumers must like it.
Niche market, that's what we can call it.
But considering that we're advancing as such a breaknecked pace, creating a niche market is one thing, sustaining it is another.
Well, it seems manufacturing companies may have to join in this fun filled world of 'who gets the most customers'.
And of course as the end users, we are in for a treat to a wide selection of products available on the market....we're simply spoiled for choice, but whose complaining? Certainly not me.
According to an article on the Business Times website entitled R&D tolerate short -term pain for long term gain.
It said, until the late 1990's, the primary strengths of manufacturing centres was its ability to provide low-cost labour and resources.
However, the industry was in for a rude awakening as China emerged as a leading offshore manufacturing platform.
In terms of pricing, they certainly beat us hands down. Upgrading one's traditional assembly line certainly won't do much good.
Jong Voon Hoo the Chief financial officer of China-based Youcan Foods said in a statement on an article entitled Gaining an edge through innovation on the Business Times website today that 'Competition is intensifying across most industries and it is getting more difficult to find unique selling points on similar products. Therefore it is important that our R&D department remain creative'.
His fears are not unfounded as Fong Saik Hay, the chief technology officer of ST Engineering and president of ST Dynamics is also chomping at the bit through partnerships with research institutes, small start-ups and other mature companies.
So the bigger companies have their work cut out for them. Where does that leave small companies who do not have the resources?
No fear for the government is here!
Allow me to just rattle of a couple of government aids:
First, the Singapore Economic Development Board instituted the Product and Process Development Assistance Scheme to give local companies a hand to improve their design and development capabilities.
Second, Spring Singapore has launched a S$150 mln Technology Innovation Programme last August. It has set up Centers that provide technology consultancy and advise to small and medium enterprises.
It has also launched a S$9 mln Intellectual Property Management programme allows SME's to protect their products from copyright issues.
In the same article, Darius Cheung, the Chief Executive Officer of mobile technology start-up tenCube gives us a glimpse as to why manufacturing companies were not big on investing in its R&D arm.
He says that 'Asian companies are commonly pressured to focus on short-term profits without the freedom to invest in creative processes that may be difficult to justify in terms of monetary returns.
However he added that this very same process may be the one to produce tremendous bottom-line results.
So, we've covered the direction on which manufacturing companies are heading towards and the funding that will be available to them.
Not forgetting that ideas are..ultimately generated from people.
So about the welfare side.
Companies such as ST Engineering and tenCube are pressing hard on creating a 'conducive and supportive environment' and culture which will allow 'creativity to thrive' and some are even offering monetary incentives.
But it seems innovative R&D still has a rather way to go.
Resolving technologies and funding issues are just the tip of the ice berg and i dare say may be the easier obstacles.
With so many variations of products on the market, obtaining a unique selling point and meeting consumer demand is certainly not a stroll in the park.
More effort has to be placed in research gathering, to understand the end consumer before being able to create a product that will stand out and appeal.
After all culture is not something that can be created or changed overnight.
Yeo Sue En
As always, please see your licensed financial advisor before making any financial decisions.
Labels: culture, innovation, manufacturing, research and development, RnD, Singapore
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