Perfect storm and next wave cities program melchor calabarzon rdc final2

The Perfect Storm and the Next Wave Cities Program:

Alejandro P. Melchor III Deputy Executive Director for ICT Industry Development

Department of Science & Technology

Information and Communications Technology Office

CALABARZON Regional Development Council 2Q 2012 Full Council Meeting, July 19, 2012

Cavite State University, Indang, Cavite

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

Philippine IT-BPO Industry: The country’s premier sunrise industry

Source: Business Processing Association of the Philippines (BPAP)

101

163

236

300

372

442

525

643

0

100

200

300

400

500

600

700

2004 2005 2006 2007 2008 2009 2010 2011

$1.3

$2.2

$3.3

$4.9

$6.1

$7.1

$8.9

$11.0

$0.0

$2.0

$4.0

$6.0

$8.0

$10.0

$12.0

2004 2005 2006 2007 2008 2009 2010 2011

Total Employees (000s)‏ Annual Revenue (US$B)‏

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

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

http://www.adb.org/features/fast-facts-asean-prc-and-india-great-transformation?ref=annual-meeting/2012/features

Universal consensus on ICT as growth engine

Europeans view ICT as EU’s 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…

Africa views ICT as growth engine…

GET READY FOR THE NEXT WAVE OF JOB CREATION AND INVESTMENT!

ASEAN’s Economic Integration and ICT Master Plan 2015 will funnel investments to ICT

• 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

Key Outcomes

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 upgraded PH credit rating in July, citing the improved debt rating and record high foreign currency reserves. BREAKOUT NATIONS: The new “BRICs” in Asia are Thailand, Indonesia, Philippines (TIP). GOLDMAN SACHS: PH one of the “Next 11”—the next BRICs, who may rival the G7 in economic power.

Investment firm Kohlberg Kravis Roberts & Co views Vietnam, Indonesia, Philippines (VIP) as best ASEAN countries to invest in. BLOOMBERG on Jan. 20, 2012 reported that PH is a leading Asian tiger economy, in the same league as China. The Grant Thornton International Business Review survey revealed that Filipino business executives are the 2nd most optimistic in 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

7- Infrastructure & Smarter Cities

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Cities TM Wave

Next Wave Cities IT-BPO Scorecard

• College and high school graduates

• Professionals

• Schools and degree programs

• Airports

• Roads

• Utilities (telecom, power, water)

• Real estate

• Rental

• Regulatory fees and taxes

• Median pay

• Utility costs

• PEZA-approved facilities

• ICT Council

• Real estate developers

Talent

Infrastructure

Cost

Business Environment

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





4- Marketing




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iEducation for a Smarter Philippines

1- Knowledge Workers for a Knowledge Economy

2- 21st Century Skills and Industry-driven Curriculum

3- Learning Organizations and Knowledge Management 2.0

4- Computer Gaming for Education and Leadership Development

5- Learning Technologies to transform teaching, the learning experience, and the education system

6- Knowledge creation, Knowledge transfer & Sharing of free resources

7- Global Perspective and Global Networking and Collaboration

4

What is the knowledge economy?

• 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

Capital

Knowledge

Land

Labor

Agricultural age

Industrial age

Knowledge age

Source: Paraphrased from Andre Saito and Katsuhiro Umemoto

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

Posted on Facebook July 3 Coming study

Coming soon

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

http://www-01.ibm.com/software/solutions/soa/innov8/index.html






3- Organizational Development/ Capability Building

4- Marketing



7- Infrastrcuture & Smarter Cities

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Next Wave Cities Organizational Development & Capability Building Activities

Organizing ICT Councils nationwide Strategic Planning Workshops

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





4- Marketing




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NWCs Marketing Efforts Website (coming soon!)

Social Media for knowledge dissemination

Marketing Collaterals

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





4- Marketing


6- Business Environment & Incentives


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ACTION: Plan with your Regional DOST Office for a TBI based on your city’s growth direction

DOST-PEZA Open Technology Business Incubator

Ayala Foundation's TBIs

TBI for ICT-based Small and Medium Enterprise in Region 8

The University-based TBIs

UP Visayas Cebu Business Incubator for IT

University of the Philippines Los Banos TBI

Central Luzon State University Agriculture and Food TBI

University of San Carlos TBI





4- Marketing




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Smarter Philippines will harness ICT as an engine of growth

1- iGovPhil -- Gov’t e-Services Portal -- eLGU -- Community e-Centers -- National Information Infra -- CIO Forum & gCIO Training

2- iEducation -- Knowledge Workers -- 21st Century Skills -- Learning Organizations -- Computer Gaming -- Learning Technologies -- Global Collaboration

3- iIndustry -- Global Leadership in IT-BPO -- $50 B ICT Industry -- ICT-Enabled Creative Arts -- iAgribusiness -- iManufacturing

4- Smarter Transportation and Green Technology -- Eco-Jeep (DOST NCRP) -- UP Monorail (DOST MIRD)

5- Smarter Healthcare (PCHRD) & Nutrition (FNRI) -- Phil Health Research Registry -- Public health surveillance & health intelligence systems -- Sulong Pinoy anti-malnutrition -- Nutritious brown rice

6- Smarter Disaster Mitigation -- Project Noah (DOST-PAGASA) -- Earthquake & Tsunami Early Warning (DOST- PHIVOLCS) -- 3D LIDAR Mapping (DOST & UP Geodetic Engineering)

7- Smarter Cities -- Digital Ecosystem -- Smarter Local Government Svcs -- Smarter Buildings -- Smarter Environment -- Smarter Energy & Utilities -- Smarter Public Safety

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.





4- Marketing




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Smarter Cities are booming in Asia… and are investment magnets

India plans to spend $130 billion building Smarter Cities

As many as 18 Chinese cities have announced Smarter Cities plans

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

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

The “Smart City” as a brand is an investment magnet ACTION: Consider developing your city as a Smart City

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

In response to Singapore’s iN2015 Masterplan, tech giant IBM announced a $38M investment in an Asia Pacific cloud computing data center

ACTION: Study Internet Resources on Smarter Cities

CISCO: SMART + CONNECTED COMMUNITIES http://www.cisco.com/web/strategy/smart_connected_communities.html

ACCENTURE: INTELLIGENT CITY 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.

Alejandro P. Melchor III Deputy Executive Director for ICT Industry Development

Department of Science & Technology

Information and Communications Technology Office

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

Department of Science and Technology- Information and Communications Technology Office

Thank You

[email protected]

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 ICT & BPO