The State of Innovation at firm level in Singapore: findings, recommendations and case studies

131 Pages·2.776 MB·English

by  Patel H., Chakarian E.

IPS in collaboration with THE MONITOR GROUP
The State of Innovation
at firm level
in Singapore
Findings, Recommendations and Case Studies
Dr Hitendra Patel
By
and Eduardo Chakarian
The Monitor Group
www.monitor.com
SNP REFERENCE
•
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Disclaimer: Please note that information provided herein was correct at
the time of writing this book, in 2005. Changes since then have not been
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National Library Board Singapore Cataloguing in Publication Data
Patel, Hitendra, 1966 –
The state of innovation at firm level in Singapore : findings, recommendations
and case studies / Hitendra Patel and Eduardo Chakarian. – Singapore
: SNP Reference for Institute of Policy Studies, c2008.
p. cm.
ISBN-13 : 978-981-248-184-9 (pbk.)
ISBN-10 : 981-248-184-2 (pbk.)

1. Creative ability in business – Singapore. 2. Creative ability in business
– Singapore – Case studies. I. Chakarian, Eduardo. II. Institute of Policy
Studies (Singapore) III. Title.

HD53
658.4063095957 — dc22 OCN182550587
3
Contents
Foreword by Professor Tommy Koh and Arun Mahizhnan 5
Foreword by Ronald Jonash 7
Acknowledgements 9
1. Introduction 10
2. IPS-Monitor Group Innovation Survey of Singapore
2.1 Summary of Findings 13
2.2 Description of the Study 18
2.3 Singapore Compared to the World 20
2.4 Findings: Firm Level 23
2.5 Key Issue: Weak Innovation Portfolios 28
2.6 Possible Root Causes 30
2.7 Recommendations: Firm Level 41
2.8 Recommendations: National Level 58
2.9 Conclusion 63
3. Examples of Innovation
3.1 From Imitator to Transformer: How Korea Used
Innovation to Grow and Globalise – and Singapore
Can, Too 66
3.2 From Transformer to Pathfinder: Creating and
Choosing the Desired Future State and Making
It Real 77
3.3 Envisioning an Ideal Innovation Organisation –
This Could Be Your Company 89
3.4 Cementing Innovation: You Don’t Have to be
High-Tech to Innovate – Just High-Touch 104
3
4. Jump-Starting Innovation – A 12-Step Programme 114
4.1 Making Innovation a Strategic Imperative 115
4.2 Boosting the Organisation’s Intelligence and Insight 117
4.3 Inspiring Great Ideas Across and Beyond the
Organisation 119
4.4 Developing the “Right” Ideas 120
Survey and Interview Participants 122
Survey Form 123
Annex 129
About the Authors 130
4 5
Foreword
Professor Tommy Koh and
by
Arun Mahizhnan
Ever since Singapore reached what Michael Porter calls the
innovation-driven economy state, the third state after being a factor-
driven economy and an investment-driven economy, there has been a
great deal of interest in the role and nature of innovation in Singapore.
However, there has been very little systematic study of this subject
here.
To gain a better insight into the status of innovation in Singapore,
the Monitor Group and the Institute of Policy Studies (IPS) jointly
undertook a national and firm-level study. The study compared
Singapore’s innovation capabilities with other countries and drew key
insights on policies and initiatives. It also examined the challenges to
building and sustaining a culture of innovation at the firm level and on
a national basis.
The study suggests that there is a high awareness of the need to
embrace innovation as a means to continued economic growth. There
is also a wide appreciation of the “what”, i.e. “what is innovation“.
However, the “how” of “how to generate real value” remains elusive
for many. There is also a degree of “innovation scepticism” setting
in – doubts about whether all the efforts and resources expended in
innovation initiatives are really productive.
We hope that this pioneering study, completed in 2005, will
provide a basis for constructive actions and initiatives that could be
undertaken to strengthen innovation management capabilities and
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The State of Innovation at Firm Level in Singapore • IPS with The Monitor Group
performance.
I would like to take this opportunity to express our gratitude
to the Monitor team led by Dr Hitendra Patel and Steve Wyatt for
their excellent work in completing this study. We are also grateful to
the members of the steering committee for this study (see Annex).
Finally, I would like to acknowledge that the primary strength of this
study is the frank and thoughtful input from every respondent to our
questionnaire and thank them for their participation.
Professor Tommy Koh
Chairman
Institute of Policy Studies, Singapore
and
Mr Arun Mahizhnan
Deputy Director
Institute of Policy Studies, Singapore
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The State of Innovation at Firm Level in Singapore • IPS with The Monitor Group
Foreword
Ronald Jonash
by
With all the talk about innovation and its importance to competitive
advantage and sustainable growth, executives often face the difficult
challenge of making innovation real and actionable for their
businesses.
This is especially true in companies where innovation leadership
is not part of the culture and historical performance. Many of these
companies fall far short of their targets in the innovation arena. Yet
some companies in virtually every industry are able to pull off success
after success, building innovation premiums that can be harvested
for years to come. They are able to use innovation both as a driver
of top-line and bottom-line growth and as a driver of new leadership
development and company transformation. What is it that separates
the winners from the losers in this space? And what can executives
do to make sure that their companies are on the winning end of this
spectrum?
Three questions that executives frequently ask are:
1. How can I make Innovation “Real”? And how do I make it
more Measurable and Manageable? And then, how do I create
the stretch targets and right mindset for “high performance”
innovation results and outcomes?
2. How can I make Innovation more of a Strategic Priority?
And how do I assure that this strategic priority cuts across our
extended enterprise? And then, how do I move innovation
beyond the province of a few individuals and the domain of
internal R&D?
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The State of Innovation at Firm Level in Singapore • IPS with The Monitor Group
3. How can I make Innovation Sustainable? And what can I, as
a senior executive, do to embed innovation competence and
drive and support innovation excellence? And then, what are
the most critical leverage points and pathways to sustainable
innovation leadership?
There is no question that Singaporeans are famous for operational
excellence and minimising risks. While this has served Singapore well
for 40 years, the question is whether it will do the same in the next
20 years, given the dynamics in the global and Asian economies and
the changing industry structure. The Monitor Group and the Institute
of Policy’s year-long study of innovation in Singapore has led us to
discover the insights and best practices and secrets of some of the
most innovative organisations in Singapore.
Ronald Jonash
Senior Partner of Monitor Innovation
The Monitor Group
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The State of Innovation at Firm Level in Singapore • IPS with The Monitor Group
Acknowledgements
This survey and publication has been made possible with
contributions from the following organisations.
8 9
Introduction
Introduction
1.
Singapore today stands at a crossroads. The dynamics that made it
one of the world’s most competitive economies and a magnet for
foreign companies and investment – an educated workforce, a modern
infrastructure, a pro-business climate and exceptional efficiency – are
increasingly being replicated by other developing countries. The rest
of the world is catching up.
As a result, Singapore’s business leaders and policy-makers
face a crucial choice. Down one road – the safe, well-travelled path
of “business as usual” – lies the prospect of decelerating growth
and loss of market share to more aggressive global and regional
competitors. Down the other – less familiar but ultimately far more
rewarding – lies sustainable growth generated by the transformation
from fast-follower to leading innovator. It is only by committing to
this course, the relentless pursuit of innovation, that Singapore can
hope to maintain the dazzling growth it has enjoyed over the past
40 years.
By innovation, we mean not only breakthrough products and
services, but breakthrough business models as well. We mean capturing
value by creating new opportunities, new approaches to implementation
and new ways of going to market, from concept to commercialisation,
at high speed. Viewed in this broad, dynamic context, innovation is
a powerful engine that can (and should) drive any business in any
industry, from the most dominant government-linked company to
the most humble family business. Time and time again, we have seen
the power of innovation to transform firms of all types, sizes and
nationalities from also-rans to industry leaders (or highly profitable
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