Attended 1st Annual Business Restructuring for Productivity Forum 2013 by Vector Scorecard

I attended the 1st Annual Business Restructuring for Productivity Forum organized by Vector Scorecard. I was very glad that I attended that event. If you are an SME(Small Medium Enterprise) owner, you should attend this forum. The speakers include; His Excellency Mr Teng Theng Dar, Director for Business Compass Consultancy and former CEO of Singapore Business Federation, Mr Mohamad Damshal Awang, CEO of ACA Amanie, Mr Lawrence Kong, Managing Director for NexMU Pte Ltd, Mr M Nazri Muhd, Group CEO of VSC Group. The Guest of Honour was His Excellency, Mr Zainul Abidin Rasheed, Former Senior Minister of State and Special Envoy to the Middle East.

Based on Spring Singapore's performance indicators, in 2012, 99% of all enterprises in Singapore are SMEs  and they provide about 70% of the employment locally, and contribute over 50% of national GDP (http://www.spring.gov.sg/aboutus/pi/pages/performance-indicators.aspx#.UV8AqKJHKSo). SMEs will get a lot of support from Singapore government in various forms. I am very impressed by the support given. Mr Damshal shared with us on the different forms of funding available in other countries and their different conditions such as in the United States with the JOBS Act (Jumpstart Our Business Startups Act). He also explained the functions of chaebols in the Korean business scene and how it can be a two-edged sword.

Mr Nazri shared about the different industry trends between the retail, manufacturing and property. Here are some of my takeaways from his segment;
1. Strategic Investors are important. Even when the value of their investment is about a dollar(for eg), their network and knowledge will be able to help create channels for SMEs
2. Pricing expectation of customers must be assessed from time to time. The price that a customer might be willing to pay 5 years ago may not be an acceptable price today for the same product/service.
3. Relationships with existing customers must be strengthened.
4. Control cost of marketing and sales operations relative to the sales growth.

His Excellency, Mr Teng, was the keynote speaker and he shared his deep insights on the needs of a growing SME. He made a strong point that SMEs must not depend on the government on their growth. If they are, then they are in the wrong trade.

He shared 4 components that an SME will need in order to succeed in business in new economy. They are;
1. Business Model.
Different business will need different model and these models may influence the customer's expectation. He gmade a comparison between MacDonalds and Tung Lok. I remembered sharing this point to my former business partners when we set up our first venture. We need to make a choice whether to adopt a differentiated business or a cost leadership model.

2. Business Process Flow.
Is the organization static or dynamic? Are the processes looked into? Some organization depends on a process flow that was set up years ago.

3. Technology and Innovation.
Are we using the right technology correctly? Are we problem solvers or whiners? Can the spirit of innovation be instilled into the team.

4. People.
Are people an asset or a commodity? Are they trained to do the right things? Human capital must not be taken for granted. Especially in a small country like Singapore, how you treat your employees may be a factor for some talents whether or not to work for you.

After the session, I went out for some snacks and spoke to a few entrepreneurs. Among those that I met are Mr Nazzim, Senior VP(VSC) and Abang Abu(Nowasia) and they shared some experience and provided some suggestions of how I can move forward. The beauty of networking is that I can get free advise from experienced people on what works and what doesn't. I got a few very useful advise which will require me to change my strategy. I'm always after knowledge of those more experienced and I am blessed that those I met are very willing to share.

To the team at VSC, thank you for organizing this event. And to those whom I've met at the event, from the bottom my my heart and with deepest gratitude, thank you for your sharing. I've learned more practical business lessons in that short sharing than any business workshop I've attended.