By Oh Boon Ping
DP Bureau has launched seven new tailor-made packages to help SMEs use technology to stay competitive.
The one-stop business advisory centre said the offers are part of the SME Infocomm Package (SIP) introduced by the Infocomm Development Authority of Singapore (IDA), and they help SMEs reap substantial savings as well as subsidies from IDA.
The SIP initiative seeks to provide companies that have yet to embrace technology with affordable, entry-level IT packages that come complete with one-stop helpdesk and advisory services.
DP Bureau said in a statement the subsidy is available if the SME is investing in a web presence for the first time and is open to the first 5,000 SMEs on a first-come, first- served basis.
Said DP Bureau general manager Ong Siew Kim: 'In today's fiercely competitive world, every SME should be making full use of technology to stay competitive. The SME Infocomm Packages are an efficient and affordable way for SMEs to get the technology to stay ahead in the game.'
Of the seven packages, four are focused on providing the essential infrastructure required for using technology in a business - website development and hosting, domain names and broadband Internet access.
The other three are designed to meet the technological needs of companies in the retail, trading and services sectors.
For example, the retail sector package offers sophisticated point-of-sale equipment, while the service sector package includes accounting software.
The trading sector package comes with accounting and inventory management software.
These latest offerings came as the 2008 Start-Up Enterprise Survey - conducted by DP Information Group - identified a clear link between the use of technology and higher net profit.
The study found 50 per cent of those generating net income of $200,000 to $500,000 were highly dependent on technology.
Of the firms with net profit in excess of $500,000, some 35 per cent were also dependent on technology.
Conversely, 37 per cent of firms with low levels of technology reliance reported losses.
One of the first SMEs to sign up for an SME Infocomm Package is Hai Yang Cultural Arts & Development Centre.
Said its director Yu Shu Huai: 'This package and the government grant enables IT-illiterate people like me to establish a company website with ease. It allows me to create brand awareness and raise my competitiveness.'
To qualify for a subsidy, an SME must have at least 30 per cent local shareholding and less than $15 million in assets.
In addition, non-manufacturing firms must have fewer than 200 employees.
The SIP initiative follows the call by IDA last November for tech vendors to come up with product bundles for local SMEs, a group that is perceived to be lagging behind in using technology to improve their daily operations.
The so-called CFC (call for collaboration) closed in January this year with proposals from 31 consortiums.
This article was first published in The Business Times on 24 June 2008.
