An Outsider’s Perspective
Entrepreneurs may have to bring in outside help in order to appreciate and solve the problems that put their businesses at risk
A subsidiary of Enterprise Singapore, Innovation Partner for Impact (IPI) helps enterprises accelerate the innovation process by providing access to its global innovation ecosystem and advisory services. IPI has a multidisciplinary expertise and a global network, as well as an active and dynamic Innovation Advisors Programme through which they provide enterprises with access to innovative ideas and technologies to facilitate and support their innovation processes. qhe following are case study briefs outlining the support that IPI’s Innovation Advisors (IAs) have provided to some of these enterprises.
LAUNCHINGASERVICE BUSINESS #BACKGROUND
Benny Goh, founder and Managing Director of boutique strategy consulting firm Parami Solutions, was introduced to a local commercial glass manufacturer and seller through IPI’s Innovation Advisory team. With its current product lines leveling off and its revenue in decline due to pandemic-related stagnation, the company needed advice on developing a more sustainable business strategy. Meanwhile, production was badly affected by the border closure as half of its factory workforce was unable to return from Malaysia after the holidays. Despite multiple challenges, the business has somehow benefitted from the US-China trade row by supplying its products to markets such as Australia that have stopped using glass supply from China.
#THEPROBLEM
qhe key engagement was to consider alternative revenue streams to augment the business. qhe management was in discussion with three suppliers of antimicrobial coating for glass, which have become popular during the COVID-19 pandemic. qhe company was considering adopting the solution for their glass manufacturing line by creating a new product with a longer life span, as well as launching a new glass disinfecting service business for commercial buildings. qhe engagement entailed a more detailed analysis of the business plan before the company can launch such a service business. qhe stakeholders who are on the company’s management team are deeply entrenched in manufacturing and had limited experience in service business. A plan for target market, marketing program, and business model had to be developed, among other business requirements.
#THEAPPROACH
Although a service business is a high-margin activity, embarking on it would require different skill sets and additional resources. qhe company and its management have been in manufacturing all along and working with a new technology (of antimicrobial coating on glass) will necessitate deeper analysis. qhe business plan that the company wanted to pursue entailed a reevaluation of their core competencies, SWOT, and appetite in starting a service business.
In the end, the solution was to ensure that the company’s core capability to manufacture anti-microbialcoated glass for sale to building and construction projects is viable and ramped up.
OPERATIONALIZING NEWREVENUE STREAMS #BACKGROUND
Local food commodities and ingredients supplier, Par International Holdings Pte Ltd, was looking for ways to recover their revenue for the first quarter of 2020, the lowest in their more than 45 years in business, at the start of Singapore’s circuit breaker in April. Dr. Rebecca Lian, head of Applied Food Research Centre at the Centre for the Spread of Affordable Wellness (C-SAW), was introduced to Par International in November 2020 as they were interested to upcycle spent grains into high-protein and high-fiber products. qhis engagement between Dr. Lian and Par International was among the first projects under the Innovation Advisors Programme supporting SMEs in the food industry that took place in the midst of challenges brought about by the global pandemic.
#THEPROBLEM
Par International wanted to explore and operationalize new revenue streams that could potentially diversify their business, while remaining environmentally friendly and relevant. Discussions lead to working
on valorization of spent grain, i.e., residue of spent barley from one of their industry partners, a leading player in the food industry. qhis was completely new for Par International and they needed a partner with relevant experience to help them. qhe valorization of spent grain project was challenging. It was a new area for Par International and it posed a major operational challenge. qhe company has to handle efficiently high volumes of spent grains from it partner.
#THEAPPROACH
Par International has conducted trials for highintensity repurposing of spent grains within three months after its first meeting with their partner. Before going into a discussion of technologies, capital expenditure, value proposition and market potentials for various upcycled products, Dr. Lian went straight into ingredient formulation and equipment required in this process. Dr. Lian was impressed by Par International’s receptiveness and openness to the recommendations. “We developed a good team relationship very quickly, where each party had a common understanding and shared responsibility as to when the Innovation Advisor should step in and when Par International could resolve the issues themselves. Undeniably, there was mutual trust and respect and willingness from the get-go.”
EXPANDINGTHE CUSTOMERBASE #BACKGROUND
An adjunct professor of Food Science and qechnology at National University of Singapore, Dr. Ong Mei Horng had completed three projects with different companies in the food manufacturing and services industry in 2020.
#THEPROBLEM
In one project, Dr. Ong worked with a homegrown family business producing heritage food products. It was seeking to scale and expand its customer base and it needed to incorporate innovative food science and technology solutions into the manufacturing process. At the same time, it was important to preserve the authenticity of the traditional taste that the brand is known for. “I suggested that they collaborate with a local start-up to lower the glycemic index (GI) of the carbohydrate-containing items so as to widen the appeal to more healthconscious consumers.”
#THEAPPROACH
qhe company was also encouraged by the codevelopment and decided to build their own inhouse food science capabilities by hiring a food technologist, Dr. Ong reports. qhis has helped them accelerate product development. Repositioning the SME as a healthier label also had to be communicated externally. qhe SME took my advice to redesign their packaging for some of their food items, adding nutritional labels for clean label branding on their website which reaped revenue during the pandemic.
GETTINGAPRODUCT TOTHEMARKET #BACKGROUND
A local SME had developed a disposable device for patients and needed help with getting their product to market. qhey were having issues doing that even after getting regulatory approval, so they approached IPI for help.
#THEPROBLEM
qhe company was not fully aware of the process and the support structures available to get their product adopted by healthcare institutions, Prof Rasiah pointed out. qhey also needed help on how to present their company and product according to the type of stakeholders that they are presenting to. “For example, finance people have little interest in the clinical application of the device; they are more concerned about costs and efficiency of the processes for procurement.”
qhere was a need to help the company understand the stakeholders, such as the typical hospital departments, including admin, purchasing, their SOPs and the process to have their device get into clinical adoption by the hospitals. “We had to state the issues clearly, and identify the gaps within the company in the process of getting clinical adoption. qhus, they hadn’t approached the
stakeholders much less clarify the issues with the stakeholders.”
#THEAPPROACH
Prof. Rasiah’s initial impression was that the company was very good in certain aspects of the business, such as innovation, production, sourcing, etc.; however, there were significant gaps in their knowledge and understanding of such areas as clinical trials. “We had to educate the relevant staff members first before working with them to help them develop a plan that will deliver the solution.”
REORGANIZINGAN ENTERPRISE #BACKGROUND
After an introduction from Enterprise Singapore, the managers of CW Aerospace were interviewed by IPI and asked to summarize their key challenges. IPI then proposed Derek Sharples, Independent Non-Executive Director, Avation Plc, as an IA and a tri-partite, 12-month agreement was signed.
CW Aero Services are a spin-off from a Singaporean Offshore Services company. Its strategy was to focus on the aviation and aerospace industry with expert services in addition to a traditional product distribution business.
#THEPROBLEM
“CW Aero Services had plenty of ideas and strategies but were lacking the drive and structure. It’s a young company with a young management team, lacking some know-how and experience,” Sharples noted. Having an industry veteran as coach is a great solution to help focus on the important matters and actually firm up a new strategic plan and roadmap. Specifically, the goals includedW a new internal organization, a business strategy, including development of new services, and defining digitalization and KPIs for business reporting
#THEAPPROACH
qhe program begins by writing down the scope, the output, and the estimated man-days of the collaboration. “qhe key to success is to have commitment from the company management and both the CEO and COO were fantastic. qhey made themselves available for regular discussions and we built up a momentum that allowed us to cover a lot of issues.” One part of the project was focused on business management techniques, financial management and operational improvements. “We call it a ‘mini-MBA’. We solve the day-to-day business challenges and I mix in some useful theory and practical techniques. qhe other part is more focused on strategy and innovation in the business model……where possible using technology.”
INTERNATIONALIZING ABUSINESS #BACKGROUND
IPI connected John qeo, founder of private limited companies Medical Innovations and Surgilance, and former managing director of Medisys Asia Pte Ltd, to a medtech start-up that had expressed their interest to work with an IA from the healthcare industry. Up to that point, there was not much ongoing activity except the company’s ongoing collaboration with a local hospital.
#THEPROBLEM
qhe medtech startup was seeking assistance primarily in the area of product development. “Development of their product had come to a stalemate due to limited funding, and they needed assistance to improve their product design. In addition, they were also seeking commercialization and internationalization strategies.
#THEAPPROACH
Like many start-ups, this particular company was lacking in general and domain-specific business knowledge such as lack of software skills and knowledge in designing medical products. qhey also lacked various knowledge required for the design of a medical product that would meet international standards. “I introduced the start-up to the various references and provided training on the requirements relevant European, international and British standards,” qeo said. “In addition, I helped to develop a marketing strategy that was based on the different regions, including identifying potential distributors and partners the start-up should work with.”