Tuesday, January 09, 2007

Cebu High Technology Urban Centers

The dynamics of high technology urban spaces in Cebu should be viewed in the context of what is a high technology urban center in the Asian-European Perspective.

The more successful experience has been in the microelectronics, pharmaceutical and biotechnology industries. The key distinction is that the major players in the industry are primary sources of innovation in their respective areas of specialization. The achievements of these industries have driven the economic restructuring process of the western world in the 1970s and beyond. Another distinction is the emergence of knowledge-intensive activities disengaged from industrial production. The direction of property management shifted from purely spatial and market value considerations to specific architectural symbols and landscaping. The experience is not specific to highly industrialized countries since high technology urban spaces have successfully evolved in Third World countries.


Putting the Cebu Picture in the Urban Space Perspective
Does Cebu have this high technology urban space?

The answer is no!

There are disparate characteristics found in several urban spaces but not one of these has all the distinctive characteristics of a successful high technology urban center within the perspective described above.

The creation of export processing or special economic zones have stimulated the growth of urban centers and literally built communities around it through worker migration. These centers are not high technology per se since it does not fall within the context of the distinction described here.

MEPZ I and MEPZ II locators for example are global companies considered leaders in their fields but their contributions in terms of knowledge-based activity is directly connected to their manufacturing operations and not disengaged from it. Their choice of location is not driven by any symbolism or landscaping consideration but by tax and other incentives offered to foreign direct investments. It did matter to the decision-makers and key executives though that the best resorts and leisure places are less than an hour's drive from their production sites.

An attempt was made to leapfrog development in the southern part of Cebu through an ambitious Naga Township but nothing came out of this project. It was envisioned to be a self-contained economic ecosystem but until now we still have to see a semblance of vertical development in the area.

AsiaTown IT Park was envisioned to attract information technology and IT-enabled service locators but we still have to see a company driven by a knowledge-based work force churning out leading edge innovations.

There are quite several observations of urban centers here in Cebu that needs to be shown. MEPZ I and MEPZ II attracted so many workers however commercial activities were targeting workers did not follow as quickly since there is no mall of considerable size anywhere in proximity. The zones however did attract a lot of banks and freight forwarders to the zones.

AsiaTown IT Park on the other hand is quite near at least 3 malls and in the major residential communities but it still has to attract major global companies to the site. Efforts to come up with a cohesive IT initiatives and strategy might stimulate growth around AsiaTown IT Park.

There has to be real initiatives to create an environment for development for projects like MEPZ, AsiaTown, Naga Township and others so it can grow beyond its existing borders.

Inhibitors to the Development of Urban Space Dynamics
There are so many factors that may have to come to fore in order to force this evolution. But there are very few that may have as much impact. Many inhibitors are still affecting this evolution.

A Weak SME Base
Our small and medium enterprises are not growing as rapidly as it should. The number of small and medium information technology enterprises alone is not very encouraging. You can disregard the number of computer retailers and Internet cafes from this number. We need small and medium enterprises that can deliver certain technologies and expertise.

Our Income Tax Base Burdens the Consumer
Government still relies on the low and middle income population for the bulk of its tax revenues hence the majority of the population has no savings or surplus to either invest or to buy high-technology goods or products created by high-tech production processes.

Government Processes Is Not Ready for Evolution
No amount of tweaking in government structure or political paradigm will change this. There is a need for credible over-haul of government processes and the integration of accountability in every level of government activity. The headlines about government spending to encourage the economy, have no direct correlation to economic activity because most of this cash are not really going to the SME base. Many small and medium enterprises consider government transactions as a wasteful business exercise.

Government is A Poor Consumer of Technology
The reluctance of our politics to use technology for efficiency, standardization, transparency and accountability makes government a low and slow consumer of any technology whatever the applications. There is little confidence in any development programs whether for social or ICT since these programs will still have to be implemented within existing (or the lack of) government processes already stress by poor credibility and consistently waning public trust. This reality naturally does not encourage market mechanisms to thrive. The best technology to ensure efficiency and standardization leading towards more transparency and accountability will not get deployed in this environment.

Private Investment in Infrastructure is Too Small and Too Slow
Since government itself does not make 'credible' investment as against high investment in infrastructure, private enterprise is not compelled to provide a counterpart investment. Political initiatives in government supports only small infrastructure projects instead of the more cost-effective mega projects that has longer and more strategic impact on the local economy.

Tell-tale Signs of Urban Space Dynamics
There are existing and specific areas already for the emergence of potential high technology urban centers. The challenge really is to either wait for these areas to evolve 'naturally' or to force evolution at a rapid pace by planning and deliberately creating the business culture and the innovation ecosystem.

The new framework to stimulate this evolution is to move from the framework of simply encouraging foreign direct investment and export to a sublime strategy of actually creating a technological base through legal channels of transferring technology, collaboration or encouraging research and product development in these areas.

There are already efforts in this direction at least in Cebu. The main concern is determining the number of stakeholders who should be involved and the development of a process to 'trigger' this evolution.

posted by Virgilio Paralisan @ 3:35 PM 0 comments

Friday, June 23, 2006

The Cebu Innovation Island: The Information and Communication Technology Road Map of Cebu

(Speech delivered during the ICT Congress of the Cebu Business Month InTourPreneur Conference and Exhibits held on June 22, 2006, 1:50-2:10 p.m. at the Mediterranean Room of the Cebu Waterfront Hotel)

The recently concluded 2nd Cebu Information and Communication Technology Summit just like the first has the goal of making Cebu an information and communication technology or ICT hub.

We are still working for the same goal.

To recall many issues were put forward and discussed in the first summit held last March 29 to 31, 2001, at the Grand Ballroom of Cebu City Marriott Hotel. In the 2nd Cebu ICT Summit held at the Social Hall of the Cebu Capitol Building on May 24-26, 2006, there were not that many new issues from the participants. The difference was the way we approach the formulation of the program of action.

I was and am the Workshop Manager of both of these Summits.

In the 2nd Cebu ICT Summit we did away with theoretical concepts of solutions and decided to take up only working models or existing programs that are already responding to the many issues we are and will be confronting. The organizers of the summit have also decided in the meetings last 2005 that the Silicon Valley Model was still the most viable model for Cebu. The logic behind this approach is:
  • The models are already existing and successful.
  • The approach provides models for replication.
  • Almost all of them have proven themselves sustainable.
  • There are clearly identified program and project managers and stakeholders.
  • These programs and projects by themselves are accomplishments.
Moving forward from this logic, the focus group discussions centered on issues related to the four pillars of the Silicon Valley Model, namely:

Pillar 1 - The Innovation Ecosystem
Pillar 2 - The development of the Culture of Technology Entrepreneurship
Pillar 3 - The Provision for a Critical Mass of Professionals and Practitioners
Pillar 4 - Financial and Legal Framework

Because of the issue of how technology can further help Cebuanos at the barangay level, the issue of the digital divide in the province was taken up and was later on referred to as the Digital Inclusion.

Four issues were raised in Pillar 1 (The Innovation Ecosystem) and 22 specific courses of action were agreed upon to confront these issues. In Pillar 2 eight (8) issues were raised and sixteen (16) specific courses of actions were agreed upon. Pillar 3 had ten (10) issues and twenty-nine (29) specific courses of action were proposed. Pillar 4 had six (6) issues discussed and fifteen (15) specific courses of actions were agreed upon. Six (6) major issues were taken up in the Digital Inclusion discussions and seventeen (17) specific courses of action were proposed and agreed upon by the body.

Admittedly, the long list of list of things to do is really a mixture of actions to be accomplished within the short and the long term between now and year 2010. Many of these courses of action were anticipated to address specific issues, deliver the same impact, done the same way or will benefit similar clients or stakeholders so we came up with a logical clustering of similar activities or those that follow a similar process to achieve their goals or objectives. This clustering is now what we call the programs.

The specific courses of action proposed by the body are now grouped into the following programs.
  • Information Education & Communication (IEC)
  • Innovation & Enterprise Development
  • Brand Management & Business Development
  • Education & Human Resource Development
  • Standards & Best Practices
  • Research & Intelligence
  • Laws & Incentives
  • Structural Support Development

Information Education & Communication (IEC)
Information is the content or the message in campaigns or projects. This should include editorial style, images, forms, fonts, layout, etc. Communication is the technology, media, channel or sets of activities that delivers the message. Education is the set of strategies, projects, tasks or activities that creatively and effectively use information and communication for a desired outcome. The outcome can be a certain course of action, acquisition of knowledge or skill, change of attitude and perspective or a decision in favor or against a certain issue.

Innovation and Enterprise Development
A cluster of programs that develops or enhances the capability and capacity of the business sector of Cebu to develop products and services, sell and deliver these products and services to their chosen market niches, create alliances, build equity or capital, encourage a culture of innovation, and build infrastructure support. The program must also encourage the inflow of investments that enhances local competence and technology transfer in the areas such as that of engineering design or software development.

Brand Management and Business Development
A program to market all products and services from Cebu under a single brand and the development of a unified strategy to market the Cebu brand globally. The initiative shall include establishing alliances with international regional business or trade organizations and setting up Cebu marketing or business centers near diplomatic offices and creating a single point of entry over the Internet.

Education and Human Resource Development
Strategies or cluster of programs to develop or enhance the infrastructure, processes, mechanisms, investments, or capabilities of stakeholders, delivering or using education and managing our human resource. These encompass stakeholders like the academe, human resource development practitioners, independent HR service providers, training or capability enhancement providers, workforce development institutions, etc. Institutional partnerships and collaboration shall also be encouraged in this program whether formal or informal.

Standards and Best Practices
A program that gather information, analyze, collate, document, coordinate, develop, and disseminate industry standards and best practices in information and communications technology for whatever applications. These standards cover professional standards, education, infrastructure, information systems, data or information management, security and privacy, communications, e-governance, e-commerce, etc. Also included in the program is the collaboration and cooperation between local and foreign institutions.

Research and Intelligence
Programs that encourage research both basic and advance whether initiated by the government, private sector or academe in the use, development, deployment or application of information and communication technology. These programs emphasizes the development of products and services that meet niche-market needs, solves an adverse human condition or improve the quality of life. Intelligence is the deliberate activities to gather information about markets, technological developments, local environment, foreign, and domestic trade with the objective of aiding our positioning in the global economy. Also included in this program are the collaboration and the alliances to bring research and development from overseas.

Laws and Incentives
A cluster of programs that cover review of existing laws, policies, processes and structure in the context of developing or using information and communications technology. This program also includes drafting a proposed bill, amending an existing law or a local council ordinance or resolution, developing and changing implementing rules and regulations in the context of regulating, encouraging or prescribing incentives.

Structural Support Development
A program to coordinate government and private sector initiated programs that include the creation of organizational vehicles to implement all programs of actions under the ICT agenda, acquiring the competence to manage programs and projects, and developing and managing logistical support for these programs.

Each of the course of action in each of the programs have already a specific proponent or organization already doing work of accomplishing the goals of the program. The next step is the meeting of the stakeholders in each of the Program and mapping out the following:

Stakeholder Consultation Meeting (June 2006)
  • Presentation of the Summit Output
  • Confirmation of Stakeholders Commitment
  • Identification of Programs/Projects for Integration
  • Defining General Framework for Planning
  • Creation of Workgroup for Planning
  • Defining the Structure of the Workgroup
  • Inventory of the Projects being implemented under the Program and the organization implementing them and the community/location where it is implemented.
  • The project schedules of existing programs
Program Integration Conference (July 2006)
  • Presentation of Programs/Projects
  • Rationalization and Integration of Programs/Projects
  • Identification of Project Leaders
  • Creation of the Integration Workgroup

Integration Planning (July-August 2006)

  • Publication of the Proposed Integration Plan over the Web
  • Social Preparation Meetings
  • Creation of A Portal for Project Management and Collaboration
  • Publication of the Planning Templates for Communities
The next steps will be dependent on what will be output of these meetings, conferences and planning sessions. The Cebu Provincial Information and Communication Technology is setting a timetable of 7 months or less to start the major milestones and to come with a comprehensive and integrated master plan towards 2010.

To get updates of what the different stakeholders are doing, please log on to:


http://cebuinnovationisland.blogspot.com/

posted by Virgilio Paralisan @ 6:37 PM 0 comments

Saturday, May 27, 2006

The Cebu Innovation Island

The 2nd Cebu Information and Communication Summit is over. The good news is that we have come up with our priorities and a general set of programs to do. We are moving from the Cebu Silicon Island model to a concept of creating a Cebu Innovation Island.

posted by Virgilio Paralisan @ 3:46 AM 0 comments