Singapore - 27 July 2016: More Small Medium Enterprises (SMEs) with less than $5m in annual turnover are putting more efforts to tender for Singapore government projects. This is seen as a positive sign to encourage more SMEs diversify their portfolio and improve their competitiveness and innovation. In doing this, they are preparing themselves to compete for public sector projects which are typically dominated by the larger corporate players, including their peers. However, they need to adopt a more tactical approach and carefully evaluate how repeat winners attain their goals. The findings are shared today at Suntec City Convention Centre to a 100-pax audience, comprising mainly of corporate professionals, entrepreneurs, venture capitalists, learning institutions and lawyers. The study is conducted by leading analytics group, Vector Scorecard (VSC) in partnership with MyFinB.Com a bureau-fintech analytics platform provider.
The study uses a proprietary artificial intelligence (AI) analytical engine by VSC/MyFinB to data-mine more than 1600 awarded tenders and quotations by 16 ministries and 83 government agencies for the 1st half of 2016 - with a total value of $180m worth of public sector projects. More than 2,200 SMEs have been evaluated and 956 winning companies (including repeat winners) being profiled. Financial ratings, drivers of growth, risk appetite, productivity levels and pre/post impact studies form part of the analysis. This marks the second year that the VSC Group has studied the procurement trends and insights at the public and private sector levels.
"Smaller SMEs and start-ups should be putting more efforts to secure more strategic projects issued by the governments in order to strengthen their credibility and track record, according to the study. In the wake of intense competition in the marketplace and active fund raising activities by technology start-ups particularly, there is still a large portion of tenders issued by the government that is dominated by the larger SMEs and corporates. This does not mean that it is next to impossible for the smaller players to participate," explains M Nazri, Group CEO of VSC and Head of its Global Advisory Solutions.
The study also found that some winning firms are undercapitalised and have weak ratings; suggesting that historically good relationships, confidence level towards management and past performance may possibly play a part.
The findings also suggest that organisations are increasingly cognizant to various form of risks, opportunities and compliance matters in their supply chain in order to fulfill its promise of service to customers and stakeholders. This is even more important in public services, where major infrastructure project or even provision of basic services due to vendor’s business failure or business stress can affected service to the public and erode confidence.
According to MyFinB Chief Operating Officer/Co-Founder, “We believe more can be done to enable government agencies in mitigating such risks. The use of analytics can complement and enhance existing tender process and vendor management practices. This can be achieved by providing deep analysis to the business health of the vendor beyond the pre-qualification information provided by the vendor and the capability assessment by the tender committee.”
“Such deep analysis provides predictive insights to the vendors’ abilities to fulfill its commitments beyond tender assessment stage and support better decisioning. Business health of the vendor and its ability to remain so is key to the success of the project and public confidence.”
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