Plan for Small and Medium Enterprise:
Ares and the government help accelerate enterprise transformation

To assist the small and medium enterprises (SMEs) in Taiwan to complete knowledge asset management as early as possible and strengthen their competitiveness, Ares International Corp. and the Small and Medium Enterprise Administration (SMEA) of the Ministry of Economic Affairs (MOEA) kicked off the “Plan for Small and Medium Enterprise” in 2003. Combining the strength and resources of the government, industry and academy, Ares aims at helping the SMEs to introduce and apply knowledge management (KM). Through the management and innovation of knowledge to build a SME that can employ its knowledge for better competitiveness, Ares is dedicated to leading the SMEs to manage and renovate themselves. The content of the service structure of the plan is as follows:


Free on-site KM diagnosis and assessment

Appoint appropriate KM consultants to launch on site diagnosis and assessment services according to individual enterprise status and KM need while offering professional advice and assessment report for the KM application of the enterprise

Available number of applicants:

Open for application starting in every April, available number of applicants is 50/p>


KM project counseling

Publicly recruit SMEs of healthy financial structure and fair image; the government will provide subsidy for part of the budget and assist the SME to introduce KM for setting an example for other SMEs.

The consultant will propose to participate in bidding and selection of project counseling.

Bidding proposal time:

Announce at the end of every April

Number of SMEs receiving the service and total budget:

At least select 5 counseling cases; the amount of overall counseling service was NT$2.5 million for 2008 (no more than NT$500,000 for each SME)


KM consultant selection and community communication

Select KM consultants and launch audit test; assist the planning and execution of on-site KM diagnosis and assessment; plan for the professional directory database of the plan service website to help promoting the marketing network, host research and mutual exchange classes for consultants and promote community mutual exchanges.

Selection time:

Consultant application available from every April to May

Consultant research:

At least one round (held in every June)

Mutual exchange platform for the community

Plan service website: http://smekm.moeasmea.gov.tw


KM promotional activities

Offer free KM activities such as promotional lectures and conferences of achievement presentation to provide free participation for SME employees and general citizens. All activities are certified with SME lifelong learning passport; all participants can register for their learning hours.

Promotional lecture:

Four lectures in northern, central and southern Taiwan in 2008 (July-October)

Conference of achievement presentation:

In December during the Taipei IT Month


Since the start of the plan, more than 460 professional KM consultants have been selected to execute on-site KM diagnosis services for over 500 SMEs, helping them to find the basic problems of the management process, establish core knowledge to assists them to prepare for a knowledge innovation transformation. The service satisfaction rate is over 90% while related KM sales have grown around 25%. In addition, about 62 SMEs have received KM introduction counseling service; they have received assistances for:

Internal flow:

  • Improve part of the process flow by 30%
  • Reduce time spent in searching technical documents by 10%
  • Reduce time spent by replacement companies in assessment by 10%
  • Improve production yields by 10%

Customer:

  • Improve customer feedback efficiency by over 40%
  • Improve customer satisfaction by over 15%

Learning Growth:

  • Shorten employee learning time by over 25%

Finance:

  • Improve delivery accuracy by 20%
  • Lower costs by nearly NT$1.7 million
  • Grow sales by over NT$3.2 million

Among the SMEs that have received consultancy, APEX MFG. CO., LTD., a Taiwan-based manufacturer of sewing machines parts, socket and wrench parts that has been established for over 40 years, has used KM to establish a technical staff cultivation system to solve the problem of seeing its parts technicians gradually retiring. Yu Jan Hsin, a central-Taiwan-based bakery that is famous for its home-made butter crispy cake, also uses KM to pass on the skills of its well-experienced bakers.

In addition, King’s Resort & Spa, the first certified hot-spring resort in Taiwan, has transformed into a learning-based organization thanks to KM promotion.

With KM and information tools, the SMEs can not only keep its core knowledge but significantly improve the learning channel and efficiency of its employees. This will surely help SMEs that have limited resources and difficulty in increasing market shares to grow efficiently.

For more detailed content of the plan, please refer to the service website of the Plan for Small and Medium Enterprise: http://smekm.moeasmea.gov.tw