Innovation is critical for businesses in an era where technology-driven disruptions to current business models will occur more frequently. Are companies here able to respond to the disruptions caused by new technologies that creates the potential for economic displacement or provide the opportunities for entirely new sectors to emerge? Some of these disruptions are accelerated by increased connectivity and internet penetration, advancements in sensory technology and artificial intelligence (AI). These increase the pace, breadth and depth of change.
For corporations, their business models are evolving but more needs to be done besides attaching start-ups alongside large corporations. Alternative strategies will include leveraging on start-ups and developing them as pathways for new value creation. However, the process of innovation also works along a spectrum of intensity from a “Big Bang” approach that seeks to revolutionise to more incremental innovation that helps to improve quality of products and services while saving costs.
It was reported that in 2016, over 15 enterprises launched corporate accelerator programmes or venture capital funds to foster start-ups and new technologies. These included OCBC, NTUC Income, Ascendas-Singbridge, Chan Brothers, Singapore Powers, CapitaLand, Wilmar and YCH Group. They represent diverse sectors, such as banking, real estate and travel. While companies have jumped on the corporate accelerator bandwagon they are still a minority, with the vast majority still undecided. What is inhibiting this move towards corporate acceleration?
How would companies in Singapore respond to disruptions caused by new technologies? Would they provide the opportunities for entirely new sectors to emerge? Will the plans laid out in the Committee on the Future Economy (CFE) report and Budget 2017 be adequate for Corporate Singapore to respond to disruptions?
This Closed-Door Discussion aims to address these issues as a follow-up to Action Plan Singapore. We examine the recommendations made in the Action Plan report, under the innovation track. These include creating new models of value creation and worker-friendly modes of innovation based on AI. We will also analyse some of the recommendations made in Budget 2017 and the CFE, such as the Global Innovation Alliance and the Research Innovation and Enterprise 2020 plan (RIE 2020).