KUALA LUMPUR, 10 JUNE 2009 – Malaysian state Penang’s SMEs can benefit from sustainability programmes, according to a partnership between technology giant IBM Malaysia and University Sains Malaysia (USM).
“The programme is a collaboration between IBM, USM’s CSR & Philanthropy Transdisciplinary Action Group (CPTAG) and Australian Business Volunteers, one of IBM’s corporate responsibility partners,” said IBM Malaysia marketing director, Eric Wong. “We completed a one-month programme centered on helping small and medium enterprises [SME] practise greater leadership in business, as well as establish a sustainable framework on corporate social responsibility [CSR].”
“SMEs contribute about 32 per cent to the economy,” said Wong. “By 2010, SMEs are projected to contribute about 37 per cent of GDP, constituting more than one third of our nation’s total GDP. In the light of this growth, businesses must find ways to differentiate themselves. They must seek out new and creative ways to enhance sector-based economies in a manner that creates more revenue, increase the pool of knowledge workers and build a strong and resilient business proposition.”
Founded in 1962, USM has been developing and expanding since its inception, which started with the enrolment of 57 science-based students. Now, USM offers courses at undergraduate and postgraduate levels to about 20,000 students.
Develop a strategic blueprint
Wong said seven IBM volunteers from US, Argentina, India, the Czech Republic and Canada from IBM's corporate service corps (CSC) together with a special task force from CPTAG, were involved in this programme to develop a strategic blue print of short-term and longer term initiatives to steer SMEs for growth through sustainable business practices.
The seven IBMers were handpicked out of thousands of applicants from around the world to work on this project in Penang, said Wong. "The CSC will allow these high-potential IBMers to develop leadership skills while engaging with USM and local SMEs on developing business plans and programmes suited for a growth market. Not only would they have first-hand experience on this, but they can also share with their colleagues back home on what it really means to be a global citizen in a globalised economy.”
“This collaboration between USM and the IBM volunteers has definitely taken us many steps closer towards our aim to help empower local businesses and enhance our CSR initiatives here in Penang,” said CPTAG chairperson Dr. Reevany Bustami. “Together with the volunteers, we have had many milestones on what we can do for CSR platforms as best practices, as well as how we can work with SMEs in the state to transform and better manage their businesses to expand in and beyond Penang.”
Importance of sustainable practices
Bustami said they worked directly with a D’Monte Child Care & Development Centre to streamline the centre’s business management, incorporating business models and information technology that would potentially help the centre expand in and out of Penang. “With consistent business practices across its subsidiaries and a standard, managed set of operations, the centre can also optimise operational costs while providing better services to its customers.”
“One focus for businesses to consider is in the area of standardisation and consistent business processes. In D’Monte’s case, it allows the centre to serve its customers better in an organised way,” said David Reynolds, a CSC volunteer who is also a service delivery project manager in IBM USA. “Especially in this economic climate, it is very important for SMEs to optimise expenditure, while remaining competitive.”
“It was important to see that these CSR initiatives were focused on providing sustainable practices to the community and businesses to fit in with their specific needs with focused actions based on concrete data,” said CPTAG’s Bustami. “These platforms that we have worked on together with the volunteers will enable the university and the community to better strategise for sustainability efforts with shared information and statistical facts.”


