The 5 I framework, developed by Vector Scorecard Asia Pacific (VSAPAC), helps SMEs strengthen internal competencies, processes and practices, refine and modify business models, innovate, find and manage the right mix of human and financial capital, and provide access to international markets through VSAPAC’s international network of offices.

Pillar 1: Internalisation

Internalization relates to Financial and Business Management, primarily in Strategy, IT, Operations, Marketing, Finance and Human Resources.

In Marketing, we will focus on branding, the marketing mix and targeting. The Finance and Strategy module focuses on financial optimisation, especially cost management, and includes solvency, liquidity, taxation capitalization programs and business modelling, with the aim of optimising profitability. Information Technology and Operations addresses technical as well as functional support. Human Resources’ key issues are manpower management and company structuring.

We intend to equip at least 1,500 MMBs - about 30% of Singapore’s MMBs - with self-directed financial and business management systems, to stay competitive, manage risks and strengthen financial knowledge. This will be accompanied by customised training and business advisory sessions at the Centre.

Innovation is one of the most powerful tools a business can employ, as it involves the creation of a new source of revenue or radical revision of a process. In our context, Innovation is targeted at developing new business ideas and establishing new companies. Our expertise lies in Product Offerings, Market Penetration, Partnering, and Creating Platforms. As ideas often come from or are sparked by outside factors, or made possible by external resources, 50% of the EDC’s activities will have participation by outside businesses and/or organisations.

In times of turmoil, people are more receptive to change, and this creates opportunities. Consolidation and acquisition / merger to create Horizontal or Vertical Integration will strengthen businesses and enable growth as the economic environment improves. In addition, as innovation produces new revenue streams, there is a need to absorb these new business units into the company’s mainstream operations. We can provide the organisational and executional structures and processes required.

We intend to incubate and commercialise at least 50 new businesses and/or product ideas with 10% going regional.

Once a company has sorted out its products, service, positioning, business architecture and financial management, the next step is to increase the scale of operations. This usually requires cash, either in the form of loans or additional equity investment.  We provide assistance in these main areas: loan arrangement, fund raising, mergers and acquisitions, grants and incentives.

We will be setting up a robust investment infrastructure and platform to facilitate investments – both local and overseas, based on Shariah principles (details to be announced).

It may be more comfortable to remain at home, but many opportunities await overseas. Over reliance on a single market increase risk, so we help you diversify into overseas markets, to reduce operational risks and amortise overheads over higher sales volumes. We can advise you how to manage sovereign and currency risks by linking you to our established partners, in Singapore and overseas.

We aim to facilitate at least 100 MMBs to do cross-border transactions / engagements.

To find out more about our 5”I”’s Core Verticals/Themes, stay tuned for programs and seminars jointly brought to you by EDC@SMCCI and Center of Excellence.