Singapore Business Innovation

Business Times - 22 Oct 2011

S'pore business innovation lacking: survey

Companies here do not engage in innovation-sparking activities consistently, although IT

sector seen as most innovative

By VICTORIA HO

THERE is a lack of activity within Singapore firms to encourage innovation, a survey has found.

Conducted across 150 business leaders here by AchieveGlobal, which provides corporate soft-skills

training, the survey revealed that almost half of companies 'seldom or never' undertake activities that

support an innovative environment.

These include activities that challenge the status quo, the firm said.

While 42 per cent of companies hold employees accountable for innovation, only a third believe that

their company is innovative.

There is also a 'significant disconnect' between perceived levels of innovation within ranks in

companies: 46 per cent of junior-level staff believe their companies to be very innovative, while only

27 per cent of directors feel the same way.

AchieveGlobal listed some innovation-supporting activities that are practised more often here.

Seventy-two per cent seek customers' point of view, and a large proportion see failure as a chance to

try again.

The least-pursued activities were creating networks to drive innovation and actively identifying new

ways to understand customers, with about 40 per cent of companies practising these.

Andrew Calvert, regional director for AchieveGlobal, told BT that while many of the companies do

appear to undertake many of the innovation-sparking activities, most don't do this consistently.

'We found the single biggest differentiator with the most innovative companies is that they push

employees to think and act in new ways. This shapes employee behaviour and gets noticeable

results,' he said.

Within the verticals surveyed, the IT sector is perceived as most innovative, Mr Calvert noted. He

attributed this to the pervasive role of technology in work and play, and that there is a growing

sensitivity to the fast pace of change and innovation within IT.

Sales and marketing, communications and the fast moving consumer goods industries are considered

innovative, as well.

Compared with multinational firms here, fewer workers in Singapore-headquartered companies

perceive their employers to be innovative. Twenty-three per cent hired by locally-headquartered firms

feel their companies were innovative, compared with 51 per cent from North American-headed firms

based here.

None of the respondents from Singapore-based firm rated their companies as 'exceptionally'

innovative.

Quick transformations from less innovative firms is tough, but possible, said the consultant.

Companies need to identify what needs to be done, and enforce these.

The most under-utilised activity here is engaging customers, he said. He pointed out that world-