Insight Sunday, February 19, 2017 Sunday, February 19 ... · benefited GWIA; it has learnt how ......

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Transcript of Insight Sunday, February 19, 2017 Sunday, February 19 ... · benefited GWIA; it has learnt how ......

On lifelong learning tostay relevant:

• Have a positive attitude,

be willing to learn andaccept changes

• Don’t say no. If someone

gives you something to do, do it

• Be willing to share knowledge

with younger colleagues

On going international:

• Learn about other countries’

ways of doing business

• Build up a strong staff and

financial base at home

• Be bold. Don’t be put off by

differences

On teaming up with anoverseas partner:

• Match right profile of

worker to the job

• Look to constantly

improve and innovate

• Have the right mindset

to make it work

GO BOLDLY FORTH

DAILY MANTRA

SITUATIONAL AWARENESS

Yasmine YahyaAssistant Business Editor

When global giant Procter & Gam-ble (P&G) set up its Singapore Inno-vation Centre in 2011, it knew itneeded a solid and trustworthy part-ner to help with its top-secret re-search and development work.

It turned to home-grown firmGWIA.

While GWIA had been manufac-turing P&G products for decades,this new collaboration took the rela-tionship to the next level.

GWIA has 32 employees who arepermanently stationed at the P&Ginnovation centre in Biopolis. Theysupport P&G in making small batch-es of products that are still in the

R&D and testing phase.The GWIA team also works with

P&G’s research staff to plan theirraw material requirements, man-age their warehouse and provide ad-ministrative concierge services.

As GWIA’s director Lee KwaiSeng notes, there were teethingproblems at first.

“In the early days, we had to learnhow to match the right profile ofworker to this job. We thought oftransferring people from our exist-ing plant over to the innovation cen-tre, but we soon found that was notfeasible.”

GWIA ended up hiring a freshgroup of workers to match themore dynamic and innovative work-ing environment.

“In a plant, you don’t collaborateso much; you take instructionsfrom your plant manager and youexecute. Here, you have to collabo-rate with the researchers so you

would need communication skillsand you have to be comfortable us-ing higher-end technology,” Mr Leenotes.

But the steep learning curve hasbenefited GWIA; it has learnt howto better manage quality controlin its processes, lessons which ithas applied across its four plants –one in Singapore and three in Ma-laysia.

“This has also driven us to look forconstant improvement and innova-tions to continue to be a good part-ner to P&G. We have also started toexplore technologies to bettertrack our performance so that bothP&G and GWIA are able to identifyopportunities for future improve-ments,” Mr Lee says.

“For example, we manufactureAmbi Pur air freshener for P&Gand, thanks to what we’ve learnt atthe innovation centre, we’ve beenable to have discussions with P&G’s

other business units about makinga better type of packaging for theAmbi Pur car kits that we manufac-ture in Malaysia.”

The firm has also learnt how tomanufacture smaller batches withgreater cost efficiency.

“In manufacturing, it’s morecost-efficient to make millions ofunits than just one or two batchruns. But from our work at the inno-vation centre, we’ve learnt how tomake smaller batches at lowercost,” Mr Lee adds.

This makes it easier when GWIA’sother clients want to push out a sea-sonal or promotional product.

P&G’s director of corporate re-search and development, Mr JamesKaw, says the company had wantedto partner a small or medium-sizedenterprise for this work.

“Flexibility, agility and the willing-ness to partner are some key traitsthat SMEs generally have, which

counterbalances what a big multina-tional like P&G doesn’t,” he says.

“And especially in an innovationcentre, we need more flexibilityand agility because things change,batches fail, ideas don’t work, soyou need a partner with the rightmindset to make it work.”

Their partnership was shortlistedfor the Most Transformational Col-laboration prize at the Singapore In-ternational Chamber of Commerce(SICC) Awards last year.

“Collaboration is often the fastestway to innovate. This is just as truefor large companies as it is for smallones,” an SICC spokesman said.

“The SICC Awards celebrate andrecognise collaborative innova-tions between large and small com-panies to increase collective learn-ing and to encourage other compa-nies to collaborate and innovate.”

yasminey@sph.com.sg

Wong Siew Ying

The offshore oil and gas sector hastaken a beating over the past year,but local firm Valves.com hasweathered the storm, thanks to itsoverseas business and strong cashflow.

The firm, which distributesvalves for the energy, petrochemi-cal and power industries, made itsfirst foray abroad in 2004 when itset up shop in China. Representa-tive offices followed in Indonesia,South Korea and France.

It is now embarking on its nextphase of growth with a proposed ac-quisition of a valve manufacturingbusiness in the United States, whileit has plans to tap the Middle East

market by the end of next year.Chief executive Wong Seng Kee

says: “The Singapore market issmall. I decided to go abroad oncemy business here stabilised. Had Inot done that, I think my businesswould have plateaued.”

Internationalistion helped to dou-ble the firm’s profitability, he says.

Its customers include global play-ers such as BW Offshore, Modecand Siemens.

Mr Wong, who started the firm17 years ago, says about half of thecompany’s revenue comes fromoverseas markets.

Its growth story follows a familiarpattern of other companies thatheeded the Government’s call topush beyond Singapore.

Valves.com distributes valves

from major manufacturers in theUS and Europe. It also provides engi-neering and procurement supportservices.

Valves are a key component in oiland gas equipment as they controlthe flow and pressure in pipelines.

The firm’s valves are used inprojects such as floating produc-tion, storage and offloading (FPSO)units – vessels used by the offshoreenergy industry to process andstore oil.

It has 12 employees at its head-quarters here and is likely to addtwo more engineers to support busi-ness in the region.

“The market has slowed, butthere are still some projects outsideSingapore. We are also looking toadd one more sales representativein Europe,” says Mr Wong, 62, whoadds that the company will assign arepresentative in the Middle East.

The sales representative will

work with local partners to tap op-portunities in markets such asOman, Qatar, Saudi Arabia and theUnited Arab Emirates.

Mr Wong’s advice for companiesthat want to venture abroad in-clude having deeper knowledgeabout the culture and business envi-ronment in overseas markets, build-ing up strong manpower and financ-es here – and being plucky.

“Have no fear. Don’t be put off bydifferences in other markets,” hesays.

Apart from seeking out new mar-kets, Valves.com intends to diversi-fy its business by acquiring a manu-facturing business in Houston forUS$10 million (S$14.2 million). Thedeal is expected to be closed in thecoming weeks.

The acquisition target is a valvemanufacturer that the firm hasbeen working with for about sevenyears.

Mr Wong is unable to disclose theidentity of the US company owingto confidentiality reasons, but saysthe transaction would seeValves.com taking over a 14,000 sqft manufacturing facility in Hou-ston.

He noted: “The company whichwe will acquire manufactures forthe global market, so we will be-come a global manufacturer. Wewill be focusing on this new ven-ture. It has the potential to grow to$50 million or $100 million in the fu-ture.”

Mr Wong, who trained in mechan-ical engineering, expects the acqui-sition to double the firm’s revenuewithin a year. The US firm’s owner-ship of two patents and researchand development capabilitiesshould also help Valves.com devisenew and more advanced products.

wongsy@sph.com.sg

The CFE has called for companies to internationalise and partner one another, and for individualsto pick up and use deep skills. Three trailblazers and two experts show how it can be done.

GWIA’s Mr Lee (left) and P&G’s Mr Kaw. The partnership between the SME andglobal giant was shortlisted for the Most Transformational Collaboration prizeat last year’s SICC Awards. ST PHOTO: JAMIE KOH

Home-grown firm partners global giant on research and development work

COPING WITH NEW CHALLENGES

By the second or third day,I thought of giving up. It wasa totally new place withdifferent functions.

’’BANKER JOHNNY TAN, 67, on how he began heading operationsfor StanChart’s SME unit 13 years ago. He still heads the unit today.

Valves.com, set up in 2000 by Mr Wong, distributes valves for the oil and gas,petrochemical and power industries and has since expanded to China,Indonesia, South Korea and France. ST PHOTO: KUA CHEE SIONG

Going global is a salve for this valve distribution company

Mr Tan, the longest-serving employee across StanChart’s worldwide network, feelshe still has much to contribute. The 67-year-old says: “Our mindset must be tolearn and be prepared to accept changes all the time.” ST PHOTO: MARK CHEONG

Joanna Seow

At the age of 54, when most peoplewould be looking ahead to retire-ment, banker Johnny Tan – now 67– was asked to take on an entirelynew role.

By that stage, he had worked withStandard Chartered Bank Singa-pore for close to 40 years, progress-ing from a clerical role to managingbranches.

But after all those years on the re-tail side, he was given the task ofheading operations for the bank’sunit for small and medium-sized en-terprises (SMEs).

It was not an easy transition.“By the second or third day, I

thought of giving up. It was a totally

new place with different func-tions,” says Mr Tan.

The products and clients changed,as well as the staff and processes hehad to manage.

But he persevered and continuesto head the unit today, 13 years later.

He declares: “Our mindset mustbe to learn and be prepared to ac-cept changes all the time. If some-thing is given to you, just do it.”

Indeed, StanChart says he hasheld 11 jobs with the bank over thecourse of his career.

His first job was as a clerk helpingwith cheque deposits in StanChart’sBattery Road branch.

Then, to get up to speed with thelatest in the banking industry, hewent for a diploma course duringhis first few years of work, to learn

about topics such as banking law,accounting and the finance of in-ternational trade.

He also attended courses at thebank’s offices in Kuala Lumpur andLondon early on in his career, meet-ing colleagues from around theworld and picking up public speak-ing skills.

In 1975, he was promoted tobranch manager, running a smallbranch in Changi which servedmainly pilot trainees and trainers aswell as residents from Pulau Ubin,Pulau Tekong and Changi Village.

Although he did not have a formaltraining and progression frame-work to follow, Mr Tan accumulat-ed a wealth of experience as he over-saw different bank functions inbranches such as Jurong, Selegieand Battery Road.

“Every place I worked, the know-ledge and experience stayed withme,” he says.

For example, learning how tomanage staff in his branches andtroubleshoot customer complaintslater served him well as he imple-mented new procedures in the SMEbanking unit.

Noticing that his staff had a cul-ture of staying late at work, he intro-duced a cut-off time for the bank’srelationship managers to pass casesto his team each day.

He also has to resolve relationshipmanagers’ issues as quickly as possi-ble, so that they can help clients.

When the bank introduced a newsales verification process to allo-cate commissions for staff, heworked out details such as what doc-uments were needed from relation-ship managers and how to get staffto input details into spreadsheets.

StanChart Singapore chief execu-tive officer Judy Hsu says that MrTan “always keeps an open mind,takes initiative to add value and al-

ways has the customer at the cen-tre of what he does”.

She adds: “Most importantly, hemakes an effort to learn new skillsand is always willing to take on newchallenges.”

Mr Tan has been on re-employ-ment contracts since he turned 62,with his current contract lasting un-til next year.

Even now, after 50 years with thecompany – making him the long-est-serving employee across thebank’s worldwide network – hefeels he still has much to contrib-ute, such as through developingyounger colleagues and helpingthem use their strengths to their ad-vantage.

“You must be willing to shareknowledge with younger col-leagues, and make sure they canlearn from you,” he says.

joseow@sph.com.sg

The strategy of getting workers toacquire deep skills is the way for-ward, but they need to look beyondthis to learning to master “competen-cies”, says an expert on the future ofwork.

For example, knowing how to usean adjustable wrench or how to fix abroken-down car are skills. But be-ing able to repair any car irrespec-tive of its make, model and the latesttechnologies is competency, saysGerman economist Michael Zibrow-ius, 32, who works at the private Ger-man think-tank, the Cologne Insti-tute For Economic Research.

So training should not specify theexact skills that should be taught,but look at what competencies stu-dents should have after graduation,he says, adding: “This way, you also

do not need to keep adapting curric-ula every time new technologiesare introduced.”

Put another way, it was notenough to know how to lay brickson mortar; one had to understandwhy and how a wall functioned inthe first place because “you mayknow how to build a wall in 2017,but the way to build it in 10, 20 or 30years might be entirely different”.

The Lee Kuan Yew Centre for In-novative Cities in the Singapore Uni-versity of Technology and Design in-vited Dr Zibrowius to speak at itshigh-level international roundtableon the future of the global economylast month.

In an e-mail interview last Tues-day, he says the Committee on theFuture Economy’s call for everyone

here to harness deeper skills, ratherthan just chase paper qualifica-tions, “points in absolutely the rightdirection” to stay employable in thedigital age. He praised the CFE’s em-phasis on learning continuouslywhile earning a wage, through“modularised” online training pro-grammes that are easily accessibleto all – and that, most importantly,give you the skills most needed inthe job market at any point in time.

In particular, he says, the idea of re-lying on training modules “is veryhelpful because it offsets bothemployers’ and employees’ fear thatretraining requires endless time andeffort”. So the opportunity to absorbrelevant skills one module at a timeis “very efficient”, as long as thoseproviding these modules are proper-ly accredited and their training is oftop quality and relevant.

Noting that the CFE welcomedcompany-led worker training ofthese deeper skills, he cautions thatfor this to succeed, the size of thecompany matters a lot. For exam-ple, SMEs with limited training budg-

ets might explore allowing employ-ees to use their personal devices tofilm how the best among themworked, and learn from suchon-the-job videos. But big firms withdeeper pockets have the manpowerto anticipate the skills needed in fu-ture in more sophisticated ways.

Dr Zibrowius said: “Siemens, forexample, analysed 25 job profilesthroughout its value chain and iden-tified the key skills relevant in eachjob today and tomorrow. It was thenable to rearrange its vocational train-ing schemes to reflect properly theskills needed in future.” The Germancompany is Europe’s largest in man-ufacturing and electronics.

He feels acquiring deeper skillshas to start as early as from primaryschool. In India and Mexico, hepoints out, “they try to infuse practi-cal elements in their existing schoolsystems so that people have an ideaof ‘How do I work given what I havelearnt?’ and ‘How does this theoryactually work in practice?’.”

Cheong Suk-Wai

Cheong Suk-WaiSenior Writer

Amid growing concerns about howwell the Singapore economy willthrive in the future, one thing is cer-tain: much patience will be needed.

That is because economic growthhere will increasingly have to relyon constant innovation and tech-nological breakthroughs, both ofwhich rarely yield huge, immediatereturns because innovations are of-ten rapidly displaced, while break-throughs are few and far between.

In an interview here late lastmonth, Professor Joseph Wong, 43,an innovation expert, said: “It helpsus to really understand that thesethings take a long time. That’s why

oftentimes when we refer to ven-ture capital, we refer to it not onlyas risk capital, but also as patientcapital. So the expectation is thatthey (venture capitalists) not onlyhave to assess risk, but also assess itagainst time.” Venture capitalistsare typically the initial investors inprojects with uncertain outcomes.

Prof Wong is vice-provost of inter-national student experience, associ-ate vice-president and professor ofinnovation and political science atthe University of Toronto. He wasin town last month to speak at theLee Kuan Yew Centre for Innova-tive Cities’ high-level internationalroundtable on the future of the glo-bal economy.

Between 2003 and 2008, he visit-ed Singapore many times and spoke

to many Singaporeans, includingtop policymakers, then publishedhis findings in his 2011 book, BettingOn Biotech: Innovation And TheLimits Of Asia’s DevelopmentalState, which also examined the suc-cesses of South Korea and Taiwan.

NO RESTING ON LAURELSSouth Korean conglomerate Sam-sung, for one, learnt recently justhow stunning the displacing ofeven the best innovations could be.One of its vice-presidents lamentedto Prof Wong that Samsung was“getting wiped out by the Chinesein panel displays”. Such displayswere the lifeblood of Samsung’sbusiness not long ago. Samsung,the vice-president added, was nowfighting back by investing heavily

in software and backing start-ups.Prof Wong argued that an innova-

tion-led, or cutting-edge, economyfaced “fundamentally differentchallenges” from the “Asian mira-cle” model of economic growththat turned Singapore, South Koreaand Taiwan into economic tigers inthe 1990s.

He told The Sunday Times: “Inthe past, one of the key features ofthe very effective catch-up econo-mies of Asia was that they wouldcreate winners pretty easily andrelatively quickly, whether theywere moving into semiconductors,the hard-disk sector or other com-puter peripherals. That was be-cause the technology and marketdemand were already there.

“But,” he stressed, “jump-starting

something like biomedical innova-tion is going to take a long time. Soyou see a massive investment inR&D (research and development),venture capitalists and so on, butit’s still going to take a long time be-fore you see any kinds of winners.”

Sometimes, some governmentseven have to switch horses mid-stream, as it were. Taiwan, he not-ed, was initially geared towardsnew drug discovery. But its Indus-trial Technology Research Institutesoon saw Taiwan’s considerablestrength in precision manufactur-ing, particularly in the electronicssector, and so shifted its focus tomaking medical devices. That hassince resulted in, among otherthings, Taiwan’s ground-breaking“lab on a chip”, Prof Wong added.

Noting that the frontiers of inno-vation-led economies were blurry atbest or, as he put it, “you don’t knowwhat you don’t know”, he stressed:“In the past, we were making betson that which we were uncertainbut relatively well-informed. Now,we are effectively betting blind.”

MANAGING UNCERTAINTYNonetheless, Prof Wong was quickto add, there are still ways in whichcountries can manage the uncertain-ties from placing their bets, as wellas temper citizens’ expectations ofstriking it rich, including “starting tovalue failure” by, say, making person-al bankruptcy declarations less dam-aging to an individual’s dignity.

He added: “Innovation requiresconstant experimentation, so forevery great innovative outcome,there are hundreds, if not thou-sands, of failures. So being kiasu is areal disincentive for the kind of inno-vative behaviour and experimenta-tion that you need.”

suk@sph.com.sg

Training shouldnot specify theexact skills thatshould betaught, but lookat whatcompetenciesstudents shouldhave aftergraduation, saysDr Zibrowius.

MAKING STRIDES

Inmanufacturing, it’s morecost-efficient to make millions ofunits than just one or two batchruns.But from our work at theinnovation centre, we’ve learnthow tomake smaller batchesat lower cost.

’’GWIA’SDIRECTOR LEE KWAI SENG, on the benefits of workingwithglobal giant Procter & Gamble.

Being kiasu is adisincentive forthe innovativebehaviour andexperimentationthat are needed,says Prof Wong.

Go beyond acquiring skillsto mastering competencies

Be patient – and don’t be kiasu – forinnovation and tech breakthroughs

Blazing a trail to the future

Embracing change helps him thrive – 50 years on with the same bank

German economist Michael Zibrowiuspraised the CFE’s emphasis on learningcontinuously while earning a wage,through“modularised” online trainingprogrammes that are easily accessible toall – and that, most importantly, give youtheskills mostneeded in the job market atanypoint in time.

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