Perfect storm and next wave cities program melchor calabarzon rdc final2

The Perfect Storm and
the Next Wave Cities Program:

Get Ready for the Next Wave of
Job Growth and Investment!
CALABARZON Regional Development Council
2Q 2012 Full Council Meeting, July 19, 2012
Cavite State University, Indang, Cavite
Alejandro P. Melchor III
Deputy Executive Director for ICT Industry Development
Department of Science & Technology
Information and Communications Technology Office

Philippine IT-BPO Industry:
The country’s premier sunrise industry
Total Employees (000s)‫‏‬ Annual Revenue (US$B)‫‏‬

700 $12.0
643 $11.0

600 $10.0
525 $8.9
500
442 $8.0
$7.1
400 372
$6.1
$6.0
300 $4.9
300
236
$4.0 $3.3
200 163
$2.2
101
$2.0 $1.3
100

0 $0.0
2004 2005 2006 2007 2008 2009 2010 2011 2004 2005 2006 2007 2008 2009 2010 2011

Source: Business Processing Association of the Philippines (BPAP)

Philippines #2 after India in
worldwide IT-BPO, and gaining

SSource: Aon Hewitt, 2011

Philippines now the preferred IT-BPO destination.
Market leaders on hypergrowth mode.

ASEAN, China and India (ACI Region)
now viewed as the world’s premier growth region

By 2030:
• ASEAN, China, India Region (ACI) combined GDP could
quadruple and exceed that of the US and Europe combined

• ASEAN, China, India Region’s share of world investment
projected to be 40% of global total
http://www.adb.org/features/fast-facts-asean-prc-and-india-great-transformation?ref=annual-meeting/2012/features

Where willPRC and India: The Great Transformation? ASEAN go?
Source: ADB: ASEAN, the
the investment into

Universal consensus on ICT as growth engine
Europeans view ICT as EU’s Africa views ICT as growth engine…
growth engine…

http://test-naukawpolsce.pap.pl/en/news/news,373313,ict---eus-growth-engine.html

Koreans view ICT as key
engine for development… ASEAN views ICT as its growth
engine…

ASEAN’s Economic Integration and ICT Master Plan
2015 will funnel investments to ICT
GET READY FOR THE NEXT WAVE OF JOB CREATION AND INVESTMENT!

Key Outcomes
• ICT as an engine of
growth in the ASEAN
countries.

• Recognition for ASEAN as
a global ICT hub

• Enhanced quality of life
for people of ASEAN

• Contribution towards
ASEAN integration

http://www.aseansec.org/documents/ASEAN%20ICT%20Masterplan%202015.pdf

Universal consensus on the Philippines as
a star performer and tiger economy
Standard & Poor’s Investment firm Kohlberg
upgraded PH credit Kravis Roberts & Co views
rating in July, citing the Vietnam, Indonesia,
improved debt rating Philippines (VIP) as best
and record high foreign ASEAN countries to invest in.
currency reserves.
BLOOMBERG on Jan. 20,
BREAKOUT NATIONS: 2012 reported that PH is a
The new “BRICs” in Asia leading Asian tiger economy,
are Thailand, Indonesia, in the same league as China.
Philippines (TIP).
The Grant Thornton
GOLDMAN SACHS: International Business
PH one of the “Next Review survey revealed that
11”—the next BRICs, Filipino business executives
who may rival the G7 in are the 2nd most optimistic in
economic power. the world at 90%, after Peru
with 96%.

WE ARE IN THE EYE OF A PERFECT STORM…

A once-in-several-decades window of opportunity to
dramatically accelerate economic growth, job
creation and investment.

…to ensure the Philippines emerges a big winner.

…to dramatically increase market share in IT-BPO.

…to harness ICT as an engine of growth and
investment magnet.

…to accelerate countryside development.

There has never been a better opportunity to develop the
entire Philippines!

Next Wave Cities Program will ensure this
growth spreads to the entire Philippines

Next Wave Cities Program Components

1- Research & Road Mapping

2- Talent Development

3- Organizational Development &
Capability Building

4- Marketing

5- IT-preneurship & Technology
Business Incubators

6- Business Environment &
Smarter Philippines
Next
Wave 7- Infrastructure &
Cities TM Smarter Cities

Next Wave Cities IT-BPO Scorecard
• College and high school graduates
Talent • Professionals
• Schools and degree programs
• Airports
• Roads
Infrastructure
• Utilities (telecom, power, water)
• Real estate
• Rental
• Regulatory fees and taxes
Cost
• Median pay
• Utility costs
• PEZA-approved facilities
Business
• ICT Council
Environment
• Real estate developers

Next Wave Cities Road Map:
Talent Deep Dive & Location Assessment



3- Organizational Development &
Capability Building

4- Marketing

Business Incubators

Smarter Philippines
Next

iEducation for a Smarter Philippines

1- Knowledge Workers 4- Computer Gaming for
for a Knowledge Economy Education and Leadership
Development

2- 21st Century Skills 5- Learning Technologies
and Industry-driven to transform teaching,
Curriculum the learning experience,
and the education system

3- Learning Organizations 7- Global Perspective and 6- Knowledge creation,
and Knowledge Global Networking and Knowledge transfer &
Management 2.0 Collaboration Sharing of free resources

What is the knowledge economy?
Capital

Labor Knowledge

Agricultural age
Industrial age
Land Knowledge age

• Knowledge has become the main resource
• Creating and using knowledge is the key
• Success based on what you know, not what you own
• The pace of innovation is accelerating
• Organizations must evolve, or become irrelevant
Source: Paraphrased from Andre Saito and Katsuhiro Umemoto
4

Why are Knowledge Workers Important?

• Knowledge workers tend to be closely aligned with
the organization’s or nation’s growth prospects.
• Knowledge workers in management invent new
strategies.
• Knowledge workers in R&D and engineering create
new products.
• Knowledge workers in marketing package products
and services in ways that appeal to customers.
• Without knowledge workers, there would be no new
products and services, and no growth.

Source: Paraphrased from the writings of Tom Brokaw

iEducation Resources posted on Facebook

Coming soon

Posted on Facebook July 3 Coming study

Innov8 Business Process Management Online Simulation Game
prepares students to manage IT-BPO enterprises

Colleges and
universities are invited
to download the full
academic edition

ACTION: Convince your local college to download the free academic edition of Innov8
and use it in several class sessions to train students to manage an IT-BPO firm.
http://www-01.ibm.com/software/solutions/soa/innov8/index.html
ACTION: Watch the YouTube video on how USC Marshall School of Business uses
Innov8 to teach students IT-BPO operations.
http://www.youtube.com/watch?v=WymKQvznzF8




3- Organizational Development/
Capability Building

4- Marketing

Business Incubators

Smarter Philippines
Next
Wave 7- Infrastrcuture &

Next Wave Cities Organizational Development
& Capability Building Activities

Organizing ICT Councils nationwide Strategic Planning Workshops

Knowledge creation, sharing of free resources &
Capability Building Workshops continual learning—briefs posted on Facebook




Capability Building

4- Marketing
Business Incubators

Smarter Philippines
Next

NWCs Marketing Efforts
Website (coming soon!) Marketing Collaterals

Social Media for knowledge dissemination Geo-footprint Expansion

ACTION: Make students aware that with all the big MNCs coming here and the
high pay in IT-BPO, they no longer need to seek jobs abroad

Source: BPAP, 2012




Capability Building

4- Marketing

Business Incubators

Incentives
Next

ACTION: Plan with your Regional DOST Office for
a TBI based on your city’s growth direction
TBI for ICT-based Small and
Medium Enterprise in Region 8

The University-based TBIs
DOST-PEZA Open Technology
Business Incubator

University of the Philippines Los UP Visayas Cebu Business
Banos TBI Incubator for IT

Central Luzon State University University of San Carlos TBI
Ayala Foundation's TBIs Agriculture and Food TBI

26

Smarter Philippines will harness ICT as an engine of growth

1- iGovPhil 4- Smarter Transportation
-- Gov’t e-Services Portal and Green Technology
-- eLGU -- Eco-Jeep (DOST NCRP)
-- Community e-Centers -- UP Monorail (DOST MIRD)
-- National Information Infra
-- CIO Forum & gCIO Training

2- iEducation 5- Smarter Healthcare
-- Knowledge Workers (PCHRD) & Nutrition (FNRI)
-- 21st Century Skills -- Phil Health Research Registry
-- Learning Organizations -- Public health surveillance &
-- Computer Gaming health intelligence systems
-- Learning Technologies -- Sulong Pinoy anti-malnutrition
-- Global Collaboration -- Nutritious brown rice

3- iIndustry 7- Smarter Cities 6- Smarter Disaster
-- Global Leadership in IT-BPO -- Digital Ecosystem Mitigation
-- $50 B ICT Industry -- Smarter Local Government Svcs -- Project Noah (DOST-PAGASA)
-- ICT-Enabled Creative Arts -- Smarter Buildings -- Earthquake & Tsunami Early
-- iAgribusiness -- Smarter Environment Warning (DOST- PHIVOLCS)
-- iManufacturing -- Smarter Energy & Utilities -- 3D LIDAR Mapping (DOST & UP
-- Smarter Public Safety Geodetic Engineering)

Developing Smarter Systems for government, education, industry, transportation,
healthcare and finance will harness ICT as an engine of growth, create new jobs, and
enable the Philippines to be a hub for outsourced services for these global systems.

Smarter Cities are booming in Asia…
and are investment magnets
As many as 18 Chinese cities have India plans to spend $130
announced Smarter Cities plans billion building Smarter Cities

ACTION: Download the 1-page infographic on the Anatomy of a Smarter City

Download the Smart City Infographic:
http://farmwars.info/wp-content/uploads/2011/12/anatomy-of-a-smart-city-final.pdf

The “Smart City” as a brand is an investment magnet
ACTION: Consider developing your city as a Smart City
In response to Singapore’s iN2015
Masterplan, tech giant IBM announced a
$38M investment in an Asia Pacific cloud
computing data center

http://www.smartplanet.com/blog/smart-takes/-8216smart-city-tech-investment-to-
total-108-billion-by-2020/19541

ACTION: Study Internet Resources on Smarter Cities

CISCO: SMART + CONNECTED COMMUNITIES ACCENTURE: INTELLIGENT CITY
http://www.cisco.com/web/strategy/smart_connected_communities.html http://www.accenture.com/us-en/pages/insight-building-managing-
intelligent-city.aspx

IBM: SMARTER CITIES
http://www-03.ibm.com/innovation/us/thesmartercity/index_flash.html

“Smarter Philippines” is the brainchild of Science &
Technology Secretary Mario G. Montejo

Sec. Montejo is an inventor, a trained engineer, and a successful
businessman who knows how to commercialize scientific
inventions. A member of the Top 100 Graduates of the University
of the Philippines College of Engineering, his vision is to create a
vibrant domestic knowledge economy in which Filipino technology
companies and Filipino technopreneurs deliver indigenous
technologies to solve the problems that beset ordinary Filipinos.

iGov, the central program under “Smarter Government,” is the
brainchild of the DOST Information & Communications
Technology Office’s Executive Director Louis Casambre. His focus
is all-out support for President Aquino’s promise of a transparent,
equitable and effective government service, through ICT.

ACTION: Get Ready for the Next Wave
of Job Growth and Investment!

Alejandro P. Melchor III
Deputy Executive Director for ICT Industry Development
Department of Science & Technology

Thank You
Knowledge creation, sharing of free resources and
continual learning--
ACTION: Study presentations posted on Facebook
and stay tuned for new releases weekly

• Seeding the Digital Ecosystem to Fuel the
Philippine Renaissance

•Computer Gaming for Leadership Development

• The DOST ICT Office’s Initiatives for the ICT & BPO
Industry

• The Next Wave Cities Program: Get Ready for the
Next Wave of Growth and Investment

• Seven Global Shifts: Trends and Opportunities in
budmelchor@yahoo.com ICT & BPO

Department of Science and Technology-

Perfect storm and next wave cities program melchor calabarzon rdc final2

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