Innovation is about value creation. In the highly competitive defence and engineering industry, it is no longer a question of choice but a necessity to ensure the ongoing viability of any enterprise.

New ideas generated by ST Engg’s staff contribute 20% to 30% of its revenue each year. In addition, 22 patents were filed in 2003 and more than 380 patents are projected to be filed by 2010. ST Engg is committed to fostering the spirit of innovation among its people and creating an environment where innovation is encouraged and rewarded and where ideas thrive.

(I) Foundation for Innovation

Innovation is the adoption of an idea, process or technology that creates value for customers, improves business efficiency or provides a new strategic direction for an enterprise. The pursuit of innovation must be supported by organisational systems and processes to capture the ideas and convert them into valuable assets for the enterprise.

A major focus for ST Engg this year was the alignment of its capabilities and skill sets according to the few key thrusts: network-centric warfare, unmanned systems, precision strike, smart munitions and simulation. The Group also focused on the rapid convergence of information, communications and computers. With an eye on the future, ST Engg is tracking advances in biotech, photonics, and intelligent algorithms and networks.

It set up ST Dynamics as an advanced engineering centre to source and develop new technologies. The team nurtures promising concepts in defence or commercial applications. This year, ST Dynamics set up a presence in the US to seek out new technologies, partners and trends in the growing defence market. Offices in other parts of the world may also be established in the future.

2003 also saw ST Engg make further inroads in pursuit of unmanned aerial and ground vehicle technology within its Aerospace and Land Systems sectors by strengthening domain knowledge. Another example of innovation in action is the 120mm Super Rapid Advanced Mortar System developed by ST Kinetics, which offers the highest sustained firing rate and lowest recoil load in the world. ST Elect also received global acclaim for its Infrared Fever Screening System, developed during the SARS outbreak, by winning local and regional engineering awards and making TIME magazine’s list of Coolest Inventions in 2003.

Its quest for innovative excellence led the Group and all its subsidiaries to join the Singapore Innovation Class programme in 2003 as a discipline to develop innovation throughout the enterprise. It will complement ST Engg’s in house innovation infrastructure to develop the conditions, culture, competencies and connectivity needed to sustain innovation.

(II) The Innovative Organisation of the Year Award 2003 ST Engg’s efforts in promoting innovation were rewarded when it became the sole winner of Singapore Innovation Council’s Singapore Innovation Award 2003 – Innovative Organisation of the Year. The Council noted the Group’s leadership in charting a clear innovation mission and strategy to stay ahead of the market and attain world class standards. The Council found that innovative strategy flows throughout the entire organisation, from customer service to people development, collaboration with partners and communications with internal and external audiences. The Group has a systematic and proven strategic planning process that cascades from the corporate office to its four business sectors. This has allowed ST Engg to maximise opportunities, leverage economies, and quickly move ahead to anticipate and respond to changing market and customer needs. The Council also commended ST Engg’s emphasis on developing its people into creative, thinking, and innovative individuals and team players. The Singapore Innovation Award marks another milestone in ST Engg’s quest for business excellence and success. It is an important building block in its journey to become a robust organisation that can compete and succeed internationally. It follows other awards for business excellence including the Singapore Quality Award 2002 and various recognition for best management and corporate governance.

(III) Using the Internet Innovatively

The application of Internet technologies to web enable ST Engg’s processes began in 2000. In 2001, it implemented an employee self service portal allowing employees to manage their benefits, apply for leave and receive their pay statements online, among other functions. Another initiative provided for the online administration of share options.

In 2003, ST Engg took this a step further by implementing the digital signing of board resolutions in a secured electronic environment with storage into an electronic vault. Known as Boards-iView, the system includes features such as electronic disclosures and tracking by directors of board changes and share transactions in related corporations, and a database of the corporate profile and an electronic statutory register for statutory compliance. Board deliberations can continue seamlessly as directors can log on anytime and from anywhere so long as there is Internet connectivity. ST Engg’s pioneering initiative as an early adopter of electronic resolutions and record keeping is consistent with Singapore’s objective of becoming an information communications and digital hub.

(IV) Innovating for Growth

Alan Kay, one of the pioneers of advanced computing concepts, once said, “The best way to predict the future is to invent it." Faced with a world that is changing every day, ST Engg has put in place the systems, infrastructure and culture to make innovation a way of life. It has made innovation not only the purview of the research and development teams, but an enterprise wide value that all staff must embrace.

Together with its globalisation initiatives, the Group’s ability to innovate will be a key factor in its quest for growth in the medium and long term. Its innovative spirit and capabilities will enable it to go the distance and take its place as one of the leading defence and engineering organisations in the world.