Having been accused of lagging other global business destinations, innovation in Singapore is now on the rise, especially among the most important segment of Singapore’s economy: small and medium sized enterprises (SMEs). Increasingly, Singapore’s smaller businesses - the lifeblood of the country’s growth and development - are finding new and more exciting ways to do business. However, there is always room for improvement! Below are some of the top techniques Singapore SMEs can employ to embed innovation into their business models for growth today and tomorrow. 



1. Don't be afraid of change



Change, as most of us know, can be disruptive and disturbing, and so many avoid it altogether. This includes the managers of Singapore SMEs, who in a number of recent surveys have reported an unwillingness to embrace innovation. The reasons for this are often understandable and include high overheads, risk of failure and fear that a firm may not be able to break into a new market.



However, while understandable, such fears will inevitably hold a business back, and are weighing on SME managers’ minds. According to global insurer Aon’s latest Inpoint report , Singapore SMEs are finding it more and more difficult to know what their customers need and want, and see the inability to innovate as a big risk factor. As many are coming to realise, fostering innovation in Singapore must involve embracing change: a necessary part of life, especially in the business world. 



Consumer facing businesses must be especially nimble, particularly in fast moving areas like entertainment, retail and leisure. Here, examples are already piling up of once successful businesses that did not move with the times and so ultimately met extinction, including music retailers and once dominant high-street fashion brands. Avoid the scrapheap by paying attention to how your customer and client needs are evolving and matching those needs with cutting-edge products and services.



2. Develop your strengths 



Innovation doesn’t always have to be about throwing out the old for the new, though. In fact, figuring out how to build on your current strengths is really the first place to start. In order to cultivate innovation in Singapore SMEs, Enterprise Singapore has developed the Centres of Innovation (COIs) : ten specialised centres across the region dedicated to helping businesses to develop and grow. Run in partnership with local colleges and research institutes, each COI centre is a “one-stop shop” specialising in a different industry. 



The ten COIs include Supply Chain Management, where businesses can learn how to improve value stream and supply mapping and implement new processing and automation solutions. In the Food Innovation Resource centre, food and beverage companies will find resources to improve product and process development, as well as all important sensory and consumer studies to help them stay ahead of the consumer trend curve. The other eight COI centres cover Aquaculture, Energy, Electronics, Environment and Water, Marine And Offshore, Materials, and Precision Engineering Industries.



3. Access “deep tech” solutions 



On the other hand, in today’s digital-first world, innovation in Singapore SMEs will inevitably involve technology. The great news is that there are now a whole host of products and services that can truly transform how a business is run. At SG Innovate , the firm invests in young companies in Singapore that are providing “significant” solutions to “hard problems” using deep tech that has the potential to transform industries.



These include AIDA Technologies , an advanced artificial intelligence platform that uses data from the finance world to streamline processes and improve outcomes in banking, digital lending and insurance claims management. AIDA now works with financial service providers across Singapore to reduce costs and improve customer outcomes through its cutting edge technology, which can predict customer behaviour. Implementing deep tech solutions like these has the potential to give any SME a lead in the innovation race.



4. Embrace the IOT  



The internet of things, or ‘IOT’, has been one of the most exciting global innovations of recent years, giving rise to products and services many of us now use daily: from our fitbits to our interconnected laptops and phones and even home security systems we can monitor from work. With an estimated 50 billion devices expected to be connected to each other this year alone, the IOT is set to be the next big global technology growth story, and Singapore is positioned to lead.



With its advanced computing capability, abundant connectivity and mission to be a ‘Smart Nation’, the IOT is an area where Singapore can thrive, and where all sorts of solutions are being found for SMEs. In the medical field, a partnership between international microchip manufacturer Intel and local start-up ConnectedLife led to the development of wearable technology that can constantly monitor elderly people in their homes and respond to abnormalities. These sorts of IOT innovations are set to transform the way Singaporeans work and live, and those SMEs that embrace the technology early will gain an edge.



5. Invest in talent 



A company is, after all, only ever as good as its people. Thus, one of the most important areas for innovation for any SME is its talent pool. Singapore SMEs can count on support in this area through the SkillsFuture Enterprise Credit (SFEC) programme , which encourages employers to invest in training and developing the capabilities of their employees. Through the scheme, eligible employers can claim a one-off S$10,000 credit to cover up to 90% of out-of-pocket expenses on qualifying costs for supportable initiatives.



These initiatives include some top re-training programmes, including the Enterprise Leadership for Transformation Programme (ELT) as well as Skills-Framework aligned courses in areas including Digital Advertising, Content Marketing and key IT software skills. Professional Conversion programmes and Job-Redesign initiatives are also available for those looking to really overhaul their staff skill set.



Innovation doesn’t have to be frightening. As the above demonstrates, there are some truly exciting and engaging opportunities for innovation in Singapore available right now that SMEs can seize. Whether it be retraining staff to take the company in a new direction, or embracing a deep tech or IOT solution, the key for any business looking to innovate is to ensure it is aligning its products and services with the needs of its customers and clients. Those SMEs that do that will find innovation not only commercially beneficial, but enjoyable.