Tuesday, April 25, 2006

Strategic Positioning in the Context of the Cebu Silicon Island Vision

The strategic positioning of stakeholders in the context of the initiatives for achieving the "Cebu Silicon Island" vision lies in two (20) major developments: The development happening prior to the actual achievement of goals prior to 2010 and the actual achievement of strategic goals in 2015.

Developments Prior to 2010
Before 2006 ends, the Cebu information and communications technology initiatives will allow the converging of many agenda in one organizational body. The Cebu Chamber of Commerce and Industry in partnership with the Cebu Educational Development Foundation for Information Technology (CEDFIT) and the Cebu Software Development Industry Association (CebuSoft) will spearhead the creation of an organizational vehicle by the major participants in the 2nd Cebu ICT Summit happening this May 24-26, 2006.

India will be lifting its special incentives given to foreign direct investments in 2010. Prior to that will be a serious scanning of neighboring Asian countries for a new and strategic location for majority of the ICT OEM organizations currently operating in many of the ICT urban centers in India. Many will already be visiting the Philippines, Vietnam, Thailand, and Malaysia. Although, Singapore is still a contender for these organizations, the real estate values prevailing in Singapore will put it in the tail end of the wish list.

Many believe that China will be a converging point for foreign direct investments but many issues are still to be resolved if China will be an attractive site for ICT driven organizations. The only strongest selling point is still labor cost. China however has serious plans for the ICT global economy. Purchases of mission critical servers and the growth of their software development population are growing rapidly annually.

Today Cebu will be feeling the strains of the demand for human resource in an environment where the uptake of the Business Process Outsourcing sector is greater than existing supply. Cebu is not prepared for what is to come. The exciting prospect of ever increasing foreign investment will drive real estate values higher and the perception of growing migration to the island will artificially raise the cost of living. Most definitely, the poor will undoubtedly get poorer and hungrier too. There will be no opportunities in the countryside to halt the fluid migration of agricultural population into the cities. Unemployment will rise probably at the same rate as the number of seats in contact centers.

Our basic education will not be up to the challenge because it will not get any better. The strain of rising costs and low pay for teachers will force the inevitable--a search for job opportunities by public or even private school teachers in the ICT sector or even abroad.

The 2nd Cebu ICT Summit will deliver a blueprint for Cebu's strategic direction against the backdrop of global competition. It will provide focus for many stakeholders in the Telecommunications industry, in high-value competence development providers, for Business Process Outsourcing (specially medical transcriptions and back office operations), in tourism, real estate, and the wellness service providers.

Between 2006 and 2007 the International Standards Organization (ISO) will announce new standards in Social Management Audit for ISO certified organizations. This will force organizations with corporate social responsibility programs to professionalize the management of community-focused social projects. They will now be accountable for the soundness of project management processes and the impact it has on targeted beneficiaries or communities.

Developments in 2015
For the strategic goal of being an ICT hub or for a vision of Cebu Silicon Island to happen the following should be in place:

One or several centers of convergence for ICT players have matured to the extent that academic institutions are spearheading research or working with leading edge companies in product research, development and design within the confines of these centers.

Most development models for rural communities will be conceptualized and managed by academic institutions through their community extension services.

The communities around and within these high-technology urban centers are cosmopolitan lending itself to the meeting of many cultures and intellectual pursuits. Government provides a safe and non-intrusive presence.

Each year, academe is producing graduates that create new breed of entrepreneurs that not only compete profitably against the best global organizations but also manage social development programs comparable to the largest corporate benefactors in the world.

Venture capital will be finding its way into the business projects of graduate and undergraduate school students and creating new or innovative products and services every year. Products and services not only cater to high-end customers but also the poorest communities in the country. Government financial institutions will allow venture capitalists to manage government money to funnel it to small and medium enterprises.

Local ICT companies will be partnering with global organizations like Oracle, Microsoft, IBM, Sybase, Red Hat Linux, and others to penetrate European and Asian markets. Our Open Source community will be creating products and services that will serve developing countries and enabling emerging democratic nations to adopt e-governance technologies.

Tourism activity is no longer confined around urban centers and beach resorts but will be geographically dispersed into the countryside using the very culture of these communities as the core of developing value-added products and services to foreign tourists. Wellness services will contribute a major chunk of revenues in tourism.

Graduates from far-flung barangays will be products of curricula that is recognized globally and enable them to compete academically with foreign counterparts. Many of these barangay schools will be managed cost-effectively by not-for-profit or non-government organizations using a globally accepted learning environment.

Communities are no longer dependent on local governments for their development and people's organization are taking pro-active role in local governance. Community cooperatives are competing with large private enterprises on equal terms and in many communities will be the major provider of value-added services to business and even local government.

I don’t know how others look at 2010 or 2015, but from where I am standing now all the above is what I see. What do you think?

Post your comments!

Monday, April 24, 2006

Pillar 1 - The Innovation Ecosystem

The Online Focus Group Discussion is now open. The discussions which was suppose to start April 24, 2006, did not go well as schedule because of the long holiday. Now it's finally up and live.

We are starting off with first pillar of the Silicon Valley Model: The Innovation Ecosystem.

Innovation ecosystem. The concept has two (2) keywords: innovation and ecosystem. Let's define both. According to Microsoft® Encarta® Reference Library 2004:

in·no·va·tion [ìnn? váy sh’n](plural in·no·va·tions)

n 1. origination: the act or process of inventing or introducing something new.

2. new idea or method: something newly invented or a new way of doing things suspicious of fax machines and other technological innovations.

ec·o·sys·tem [éko sìst?m, ?ko sìst?m](plural ec·o·sys·tems) n organisms and their environment: a localized group of interdependent organisms together with the environment that they inhabit and depend on.

Innovation starts with an idea or a thought. An idea or thought always starts on somebody's head, therefore innovation starts with people. The complexity of information and communication technology together with the seemingly evolving convergence of these technologies, naturally requires the relationships and exchanges of people with diverse expertise and knowledge. People however do not churn out ideas in a vaccuum. Even artists have to get some inspiration or some environment within which they derive a vision of their art.

Discussions of creating an Innovation Ecosystem must therefore start with "Who are the people, the players or characters within this ecosystem?" Who should be in this ecosystem? What are the traits of people who will drive this innovation? What competence, experience, educational background or expertise must they have? What institutions will they be coming from or even getting them together?

The other question will be "What constitutes this ecosystem?" What environment will get these people together? What will make them stay there and thrive. We need therefore to discuss places or centers, projects or events, relationships or networks, and even culture. A culture that nurtures excellence, dedication, commitment, failures or mistakes, and risk-taking.

It is important that you have the proper perspective when joining the Online Focus Group discussions. I spent more than three (3) months to find reference materials that will help participants start off the discussions and interaction in the right direction.

You may think that your contributions will stop after the last day of the discussion. It will not. Go to this blogsite or better yet register and subscribe
to get updates and post your comments there. Enter your email address in the field on the right side of this page and click "subscribe" to get an email containing the latest posts on this blog site. I may not be able to include your comments in the final discussion but it will surely guide me during the live summit strategic planning workshop. We need everyone's help.

Please always remember that the 2nd Cebu ICT Summit is going to come up with blueprint for Cebu's economic development until 2010 to 2015 it is vital that we get every stakeholder to participate and commit to making the plan happen.

Let's do our homework and do some serious reading. You have a lot to read! Start with the information I prepared below.

Relevant Online FGD Readings:

Economic Development Board - Singapore
Progress in today's rapidly innovating and expansively globalising world requires the readiness to adopt and adapt to new technologies and techniques for greater efficiency and value. Singapore understands the challenges that globalisation, rising Asian economies and local economic maturation bring, and has set a host of initiatives in motion to respond accordingly. These initiatives are the wards of the Economic Development Board - the organisation responsible for the continued economic success of Singapore and the companies on its shores.

Source URL:
http://www.sedb.com/edb/sg/en_uk/index/about_us/edb_investments.html

Global Entreprolis Singapore
Global Entrepolis @ Singapore (GES) is an international marketplace connecting enterprises to funds, markets, partners, and technology. It is a dynamic platform for networking opportunities, where large enterprises, technopreneurial startups and the venture capital community can meet, interact and transact. Each group benefits by leveraging on the others' strengths, and value is created.


Source URL:
http://www.globalentrepolis.com/en/faqs/faqs.html

Singapore takes giant step into bio sciences
By Tony Sitathan
One of the clear tests of attracting more talent into Singapore is to improve its infrastructure conditions. Hence, Singapore has came up with the concept of a biopolis, a city dedicated to biomedical science where there would be interaction among the various research and medical communities from the research institutes of molecular biology, genomics, bioinformatics, bioengineering, bio-processing technology and chemistry.

Source URL:
http://www.atimes.com/se-asia/DF18Ae04.html

Skills That Are Most Welcome
The Government has committed a total of S$7 billion to the third national Science & Technology 2005 (S&T 2005) Plan. This details Singapore's intention to identify and build world-class science and technology capabilities in niche areas, and to strengthen private sector R&D initiatives. The S&T 2005 Plan will see more collaborative partnerships with world-class research organisations and institutions. With the increase in PhD research scientists and engineers, manpower development programmes like the R&D Fellowship Programme will be internationally recognised.


Source URL:
http://www.contactsingapore.org.sg/oppor_research.shtml

Bridging the Digital Divide
By Teresa Peters
Executive Director, Bridges.org
Installing computers and connections in underdeveloped communities is only part of what is needed to put information and communications technology to use for socio-economic development. An understanding of grassroots realities, pooling of resources, and a favorable regulatory system are among the many elements necessary in an effective approach to the digital divide.


Source:
http://usinfo.state.gov/journals/itgic/1103/ijge/gj08.htm

EDB – Singapore Economic Development Board
The Singapore Economic Development Board (EDB) is the lead agency that plans and executes strategies to sustain Singapore as a compelling global hub for business and investment. Set up in 1961, EDB acts as catalyst and facilitator to nurture a vibrant, self-sustaining enterprise ecosystem, creating a conducive environment for startups and companies of all sizes. The Board works closely with other agencies to promote innovation and develop human, intellectual, financial and cultural capital in Singapore.


Source URL:
http://www.edb.gov.sg/edb/sg/en_uk/index/about_us.html

Where should the Philippines build its Silicon Valley environment?
By DENNIS POSADAS
Consultant UP Ayala Technology Business Incubator
Cebu is very gung-ho on developing itself as an IT hub. I had the pleasure of visiting Cebu a few weeks ago. Its laid back vacation type atmosphere can serve to enable the phrase "work hard, but party hard". Of all the local government groups that I have met, Cebu seems to be the most determined to implement the Silicon Valley concept. If Cebuanos can beef up their universities (like University of San Carlos, UP, etc.) and tap their expatriate community, they can achieve great strides in certain niche areas.

Source URL:
http://itmatters.com.ph/columns.php?id=peso_092605

Singapore takes giant step into bio sciences
By Tony Sitathan
The biopolis is to be built on 90 hectares of land and it will feature dedicated new buildings, the first of which are due to open next year. It will be designed to house between 20,000 and 30,000 scientists for work, and for about 1,000 residents. There are plans to make the biopolis completely self-contained with apartments, schools, shops and entertainment, and even a monorail to transport residents.


Source URL:
http://www.atimes.com/se-asia/DF18Ae04.html

Building An Asian Silicon Valley Ecosystem
For many...countries, the key driver of economic development was innovation. In South Korea, innovation was applied first to traditional industries and now to semiconductors. In Taiwan, it was initially applied to personal computer accessories and now to contract wafer fabrication. In Singapore it was applied to contract electronics and semiconductor manufacturing.

Source URL:
http://www.ey.com/global/download.nsf/Philippines/SGV_Review_June_2005/$file/sgvreview_june05.pdf

Can Cebu Foster a High-Tech Cluster?
By Michael Alan Hamlin
February 26, 2001
No one knows for sure how to foster a high-tech industrial cluster. In fact, no government or private-sector consortium has ever strategically intended to develop an industrial cluster of any kind and actually succeeded. Instead, industrial clusters tend to develop when all the ingredients of the particularly appropriate soup are in place, sort of like some theories of natural creation. What we do know about high-tech cluster evolution is that like most evolutionary processes, it’s messy, and chaotic. We also know that at the center of the process are heavyweight educational institutions that attract — but frequently fail to retain — very bright people. They leave to start fulfilling their visions, but still draw on the pool of bright people they leave behind. While there are other ingredients to the evolutionary soup that produces high-tech clusters, they seem to be drawn together by intellectual excellence manifest in innovative ideas with apparently practical application.

Source URL:
http://www.teamasia.com/media/2001/02262001.htm

Information and Governance in the Silicon Valley Model
Masahiko Aoki
October 1999
This paper argues that the truly unique role of venture capitalists is found in their information-mediating and governance functions, which can be understood only in the context of relationships between the "clustering" of entrepreneurial firms and (a club) of venture capitalists. The entrepreneurial firms in Silicon Valley compete in innovation and thus their activities are fundamentally substitutes. Therefore, their information processing activities need to be encapsulated from each other to excel competitors. A new product system may be then evolutionarily formed by combining modular products ex post that evolve from such decentralized efforts. In order for such evolutionary selection is possible, however, common standards for interfaces among modular products need to be provided to make individual product attributes compatible. Venture capitalists plays an important role in mediating information necessary for endogenously forming and governing competition among entrepreneurs under such framework. The first section assembles stylized facts about venture capital - entrepreneurial firm relationships as a basis for modeling. The second section presents a framework for comparing information systemic aspects of alternative R&D organizations and tries to understand the unique innovation capability of the Silicon Valley model. The third section then proceeds to the analysis of the venture capital governance as an institution for supporting such information system. Repeated tournaments among initially funded firms for refinancing necessary for the completion of projects, and the threat of termination of financial support by the venture capitalist, are seen to provide greater incentives for the entrepreneurs than under traditional arms length financing. The fourth section discusses the incentives of the venture capitalist and other institutional characteristics of the Silicon Valley model.


Source URL:
http://www-econ.stanford.edu/faculty/workp/swp99028.pdf


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To join the focus group discussions, please subscribe to:

fgd1-innovationecosystem-subscribe@yahoogroups.com


Please send your reactions and discussions to:

fgd1-innovationecosystem@yahoogroups.com


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Microsoft® Encarta® Reference Library 2004 and Microsoft® is a trademark and tradename of Microsoft Corporation.

The Online Focus Group Discussions

The Online Focus Group Discussions are divided into four (4) distinct groups corresponding to the Four (4) Pillars of the Silicon Valley Model. Prior to the start of each group, a guide on the content, process and moderation will be sent to you via email. Each group will also have its own schedule which will take at least three (3) days with specific intervals. The discussions will start on a Monday ending on a Wednesday. The synthesis of that group's discussion will be broadcast via email and via blog on the Monday of the following week. This will become a material for the Focus Group Discussion on that week and so on until the last Focus Group Discussion is synthesized. All these discussions will be consolidated in one document that will be broadcast via email and via blog. This material shall also be distributed to the participants of the Live Summit Workshops.


Pillar 1 - Innovation Ecosystem (April 24 - April 26, 2006 09:00 - 11:00 a.m.)

in·no·va·tion [ìnn? váy sh’n](plural in·no·va·tions)
n 1. origination: the act or process of inventing or introducing something new

2. new idea or method: something newly invented or a new way of doing things suspicious of fax machines and other technological innovations ec·o·sys·tem [éko sìst?m, ?ko sìst?m](plural ec·o·sys·tems) n organisms and their environment: a localized group of interdependent organisms together with the environment that they inhabit and depend on.

Microsoft® Encarta® Reference Library 2004. © 1993-2003 Microsoft Corporation. All rights reserved.

Innovation starts with an idea or a thought. An idea or thought always starts on somebody's head, therefore innovation starts with people. The complexity of information and communication technology together with the seemingly evolving convergence of these technologies, naturally requires the relationships and exchanges of people with diverse expertise and knowledge. People however do not churn out ideas in a vaccuum. Even artists have to get some inspiration or some environment within which they derive a vision of their art.

Discussions of creating an Innovation Ecosystem must therefore start with "Who are the people, the players or characters within this ecosystem?" Who should be in this ecosystem? What are the traits of people who will drive this innovation? What competence, experience, educational background or expertise must they have? What institutions will they be coming from or even getting them together?

The other question will be "What constitutes this ecosystem?" What environment will get these people together? What will make them stay there and thrive. We need therefore to discuss places or centers, projects or events, relationships or networks, and even culture. A culture that nurtures excellence, dedication, commitment, failures or mistakes, and risk-taking.

Please subscribe to this Online Focus Discussion:
fgd1-innovationecosystem-subscribe@yahoogroups.com


Pillar 2 - Technology Entrepreneurship (May 1 – May 3, 2006 09:00 - 11:00 a.m.)

You will get a formal introduction about this person we call the entrepreneur in your basic management class and your introduction to economics. Both subjects consider the role of the entrepreneur as essential in driving business and the economy.

Entrepreneurs are individuals who are always seeking out and taking on the challenge of responding to change. They are risk takers but not the wanton kind but the kind that take "calculated risks".

For Cebu to be an ICT hub, we need people deeply immersed in ICT to be entrepreneurs. We need technological builders to be business builders who deliver technology innovation into the marketplace. Technology innovators create products and services with value to the global market.

They generate profit and their profit growth must be sustained to generate jobs and improve the quality of life here in Cebu.

We have to ask these questions:
  • How do we generate a mass of "home-grown" technology entrepreneurs?How do we bring successful technology entrepreneurs to Cebu?
  • How do we help those technology entrepreneurs who are starting up?
  • How do we convince those "technology geniuses" to be entrepreneurs?
  • What programs should we implement to create the environment to bring or nurture technology entrepreneurs to Cebu?
  • What support systems must we put up or invest in?
  • Do we even have a list of these technology entrepreneurs?
  • How do we identify these technology entrepreneurs?
Please subscribe to this Online Focus Discussion:
fgd2-itrepreneurship-subscribe@yahoogroups.com


Pillar 3 The provision for a Critical Mass of Quality Professionals and Practitioners (May 8 – May 10, 2006 09:00 - 11:00 a.m.)

Even before the first Cebu Information Technology Summit, the issue of building the critical mass of human resource was at the forefront of the summit discussions. Today with the new competence, skills and knowledge requirement in the IT and IT-enabled sectors, the critical mass of human resource will play an even more important component of Cebu's journey to being an ICT hub.

But are we really talking about just the human resource directly involved in managing and creating products and services for IT and IT-enabled organizations? Entrepreneurs will need managers and supervisors, they will need good communicators, and specialized technologists for fabrication and instrumentation.

We need inventors. We need patent or intellectual property lawyers. We need accountants and financial analysts specializing in IPO and valuation of intellectual property and technology. Not only do we need technicians who can repair and maintain computers, we need professionals who can design and build IT infrastructures. Our software development industry need not only software designers and writers, they need system integrators, process development consultants, project managers, and product development managers.

In the business and finance areas, we need business and strategic planning facilitators, venture capital consultants, service portfolio managers, marketing consultants, Internet business consultants, and real estate developers.

Our educational system needs innovative strategies to achieve real improvements in basic education to improve our children's comprehension and communication. Our higher education must evolve from creating a mass of future employees to creating a generation of entrepreneurs and technologists creating value-added products and services for the global market.

A deliberate program must be instituted to increase our mass of PhDs and develop a crop of PhDs working for corporations or starting enterprises.

We should ask ourselves the following questions:
  • How do we build the critical mass of not only ICT professionals but all the needed human resource
    for our innovation ecosystem?Are there other alternatives aside from academe to build the critical mass of professionals and practitioners in Cebu?
  • Is there a way to deliberately create and nurture a society of inventors and innovators?
  • How can we build social organizations geared towards creativity, inventiveness and innovation?
  • Are our trade and professional associations geared towards supporting the ICT agenda? (Examples: PICPA, PICE, IBP, etc.)
  • Do we have programs to bring Filipino entrepreneurs and technologists back to Cebu to form an integral part of our human resource or to stimulate the development of our human resource.
Please subscribe to this Online Focus Discussion:
fgd3-peoplemass-subscribe@yahoogroups.com


Pillar 4 Legal and Financial Framework (May 15 – May 17, 2006 09:00 - 11:00 a.m.)

There's no doubt that government cannot extend assistance to the private sector without a mandate defined by law. Our ability to move within our innovation ecosystem and our economy is hinge on the environment that our national and local laws provide.

Tax and investment incentives even financial access is almost absolutely defined by our fiscal policies, investment and banking laws. The creation of our organizations and the ability of organizations to expand are encouraged or limited by our laws.

Our vision to expand beyond our shores to enter into global markets will force us not only to deal with our national laws but also the laws of the country we intend to trade with and intervening international laws and conventions.

We have to ask ourselves:
  • What laws will help us take advantage of opportunities?
  • What laws will enhance our capability to penetrate the global market?
  • What laws will help build and nurture our innovation ecosystem, build the critical mass of professionals and practitioners, and create a generation of technology entrepreneurs?
  • What laws or portions of such laws inhibit our Agenda?
  • What laws do we need to pass or portions of the laws we need to amend to push our Cebu ICT Agenda or the National ICT Agenda?
  • What mechanisms and programs will enable stakeholders in the innovation ecosystem to participate in the legislation process to frame pragmatic and relevant laws to further our ICT Agenda?
Please subscribe to this Online Focus Discussion:
fgd4-legal-financial-subscribe@yahoogroups.com

Is the Silicon Valley Model the only Model?

The good thing about doing research prior to a facilitating engagement is that you get to understand that most of the issues you thought to be new aren't actually new and not only that, you find out that you're not the only one getting into the same discussions. There is actually some discussions about the Silicon Valley in Australia. If you just disregard who's talking, you'd think we're actually talking to the same people here.

You can go browse their discussions here:
http://abc.net.au/science/wings/episode2.htm

A paper by Masahiko Aoki done in Stanford University dissected the phenomenon he called Silicon Valley Model and how the dynamics work in Silicon Valley. This is also interesting reading. You can download the paper from the URL below:
http://www.wider.unu.edu/publications/dps/dps2002/dp2002-11.pdf

Another paper "Information and Governance in the Silicon Valley Model" can supplement Masahiko Aoki's paper above. Go to this URL:
http://www-econ.stanford.edu/faculty/workp/swp99028.pdf

In his book, "Rice Bowl & Chips", Dennis Posadas looking at Asian adaptation of the Silicon Valley Model has pointed out eight (8) rules that seem to apply to make the model work:
  1. There must be a critical mass of brilliant engineers and scientists, venture capital, key suppliers and other players needed in technology venture formation.
  2. There must be a university or research institute that does research and development at par with the rest of the world, and publishes and/or patents its results to gain recognition for its achievements.
  3. There must be stories of successful entrepreneurs that are handed down from generation to generation.
  4. Culture is an important key to innovation.
  5. Proximity is very important.
  6. Those living abroad and at home must organize themselves to exchange ideas regularly, help mentor startups, and help with policy.
  7. A good financial and legal framework for startups should be available.
  8. Realize that failure is an important learning opportunity.
The book is a good starting point of any discussion on the Silicon Valley Model. I really hope Dennis Posadas can make it to the summit to talk more about the model. You should get a copy of his book. I bought 3 copies.

The Silicon Valley Model

Since last year, when the working group on the ICT Summit started meeting, the keywords "Silicon Valley" have been floating around our discussions in the Cebu Chamber of Commerce and Industry led by Clarito "Lito" Fruelda. It was Bonifacio "Boni" Belen, Executive Director of the Cebu Educational Development Foundation for Information Technology or CEDFIT that came out with a paper and a Microsoft PowerPoint presentation to explain to the group all about this Silicon Valley Model.

According to Boni Belen, the Silicon Valley model seem to have four (4) significant components to work he refers to as "pillars" of the model. To get the exact perspective of Boni I'm going to quote his concept paper here:

(Start of quote)

Pillar 1 - The creation of an Innovation Ecosystem
Innovation is a major driving force behind economic success. Innovation happens within an "ecosystem" that promotes and enables R&D to find its way to the marketplace.For Cebu to aim at long-term sustainability in ICT, innovation has to be at the heart of the endeavor with our IT Parks (Asia Town, for example) taking center stage in such undertaking.

Pillar 2 - The promotion of a Culture for Technology Entrepreneurship
Technologists need much encouragement to make the decision to enter into business. Beyond this step, moreover, the "incubation" of their ideas, mentorship from business experts, and partnership form venture capitalists, has to be within "real" reach. Cebu has the potential of reaping an abundance of technology entrepreneurs within the next
decade, but only if we succeed (through CebuSoft, for instance) in "incubating" these people and start-up companies.

Pillar 3 -The provision of a Critical Mass of Quality Professionals and Practitioners
Aspiring to develop technology start-ups necessarily requires that there be a critical mass of competent ICT professionals and practitioners - from engineers, to teachers with postgraduate degrees, to scientists, highly skilled technicians, etc., sustaining the needs of these technology business. The quantity and quality of such professionals and practitioners currently available, as well as the stream of graduates from Cebu's educational institutions, have to be increased; by sustaining, and making more effective and wider in scope, the interventions already put in motion by CEDF-IT (and the Cebu Computer Society) in the last four years.

Pillar 4 - The availability of Legal and Financial Framework (with the Provincial IT Council)
Technology venture formation calls for unambiguous Intellectual Property Laws, availability of IP lawyers, accountants and assessors for fair financial valuation, and adequate legal framework for venture capital. For Cebu to give birth, or lend support, to existing innovation-based companies that have no collateral except for their ideas and intellectual property, it is essential that the legal and financial framework be made definite and available (through the leadership of the Provincial IT Council perhaps).

(End of Quote)

Caesar Atienza, Consultant to the Office of the Provincial Governor, had an interesting question then: "Is Silicon Valley the only model?"

In the last several months doing research on each of the 4 pillars of the Silicon Valley Model, I found out that there is much information in different forms and model adapted by countries like Singapore, Taiwan, South Korea, People's Republic of China via Hong Kong and of course India. And in my own perspective Singapore seems to come close to us in terms of business model and geographical affinity. A lot of the materials for the coming summit are in fact coming from the Singapore experience not because I have bias for Singapore but because many studies and materials available over the web provides more meaningful information about Singapore than any country.

Even those studies conducted in Japan, South Korea, Taiwan, Australia and The Netherlands by both government and academe use Singapore as a case study. Don't be surprise if much of the URL I will be providing in the Online Focus Group Discussions will lead you to a Singapore website or a case study about Singapore.

Back to the question: "Is the Silicon Valley Model the only model we can work on?"

From what I have discerned in the materials at hand and available on the web, there is actually another model for development: The High Technology Urban Centers of Europe. The only thing different in Europe is that most high technology urban centers evolved because of the success stories of the pharmaceutical industry and the growth of medical and bio-technology research.

Europe will continue to lead in this area in the coming years and after starting off with the Silicon Valley Model, Singapore is starting to look at this model for their future and so does India. India in fact hosted a conference specifically tackling the issues on the growth of high technology urban centers. India is trying to get their finger on what will be the best model from the many presentations that will be made in this conference for their own development.

For Cebu Island, it cannot look at the European model for two obvious reasons: First, Cebu is going for ICT as a strategy for its development together with Tourism; and, second, Cebu or the Philippines for that matter is a long way off to be in the map of locations for medical and pharmaceutical research. Medical and pharmaceutical research has not faired well in the financial markets because of its low success or breakthroughs. The US has not been doing well in this area because many of the companies into production and research in this field do not have good business fundamentals to show for almost a decade now.

I rather not go into a drawn out discussions about the second reason because it is frutstrating and does not add to knew knowledge for all of us ICT stakeholders who are digging in and looking for solutions. Now my perpsective on the 4 pillars of the Silicon Valley model. I will be discussing each of the pillars in my next blogs.

Monday, April 17, 2006

The First Cebu Information Technology Summit: Looking Back

The 2nd Cebu Information and Communications Technology Summit will be happening this May 24-26, 2006. Prior to this summit is a series of Online Focus Group Discussions. Some of those participating may have been a delegate in the first summit while others may not have an idea or recollection of what the first summit was all about.

As the Summit Workshop Manager I believe that everybody must understand what we are doing now by looking back to March 2001.


Brief Background
The Cebu Information Technology Summit or Cebu IT Summit was an offshoot of Cebu’s desire to find a niche in a country suffering from several economic setbacks in the past years.

As per the National Economic Development Authority or NEDA profile of Cebu, it has an ideal set of resources to take the initiative. It has enough telecommunications, sea/air transport facilities, human resources and other resources to sustain its growth.

The Office of the Mayor of Cebu City and the Cebu Investment Promotion of Cebu commissioned Team Asia, an event organizer and marketing consulting firm, to conceptualize, plan and implement an IT summit to get the stakeholders together to set a vision and plan a strategic course of action to define Cebu as an IT Hub of the country if not of Asia.



Information Technology Workgroups
In preparation for the summit, working groups were formed from different sectors to define the content and scope of the summit. A series of meetings and smaller workshops were conducted to define general areas of concern to be covered in the summit.

These work groups were formed by the Steering Committee of the Cebu IT Summit headed by Caesar Atienza of the Cebu Investment Promotion Center.

It was decided that several pre-summit workshops should be conducted under each area of concern to determine what major issues will be taken up in the summit itself.

Eventually it was decided that all workshops be held simultaneously or done in a series of several days. Team Asia played a key role in putting the machinery in action for the pre-summit and actual IT summit.

Team Asia is not a member of the Steering Committee.Team Asia was commissioned to complete the final phase of the pre-summit preparation by managing the three-day Pre-Summit Workshop.



Pre-summit Workshops
The pre-summit workshop was done in February 26, 27 and 28, 2001, at Toledo & Danao Rooms of Holiday Plaza Hotel, F. Ramos Street, Cebu City, Philippines.

The Pre-Summit Workshop is a preparatory activity for the Cebu Information Technology Summit. The three-day activity covered Human Resource, Infrastructure, and Policy & Incentives.

Team Asia group for Cebu City headed by Ms. Doris Mongaya managed the pre-summit workshop process for Cebu Investment & Promotions Center. The Information Technology SummitThe Cebu IT Summit was held at the Ballroom of the Cebu City Marriott Hotel on March 29 & 30, 2001.

The Summit’s objectives are as follows:
  • To take stock of the state of the IT sector in Cebu vis-a-vis the rest of the country and the world.
  • To agree on a common vision and program of action that will enhance the position of Cebu as a preferred investment destination for IT and IT-related industries.
  • To agree on a mechanism that will advance the program of action for enhancing the position of Cebu as a preferred investment destination for IT industries.

Vision
To establish Cebu as an IT Hub in the Country and In Asia by making or establishing:

  • Cebu as the most IT investment-friendly island in the country.
  • Cebu as the central IT knowledge and competence center in the country.
  • A robust local economy with small and medium scale enterprises providing primary and intermediate knowledge-based products and services to local and foreign customers.
  • Cebu with the most electronically interconnected local government community and web-enabled public sector in the country.
  • Cebu with a strong base of IT practitioners and professionals in terms of both quality and quantity to support intermediate and value-added products, services and processes.

Program of Action

  1. Institute mechanism to gather and monitor baseline data covering existing student population, graduates, deployment, indices of career and current job opportunities related to the different niches in the IT sector.

  2. Undertake joint research among academe, government and industry to establish local and worldwide trends in the use and deployment of IT to be able to identify opportunities; design, plan and implement programs; lobby in support of and participate in legislation to draft a new law or amend an existing one, initiate representation to strengthen or support existing policies and legislation, improve inter-agency cooperation and coordination.

  3. Institute standards, protocols, indices to benchmark the quality and quantity of both programs and graduates focusing on training/educational program design, trainor/instructor's training design, identification of employable skills, level/quality of competence, joint academe-industry programs, and accreditation criteria for training programs/organizations.

  4. Establish a critical mass of IT professional and practitioners by encouraging the formal academic institution, business organizations and commercial training organizations to contribute a proportionate share of graduates or trainees year after year through scholarships, undergraduate, graduate, bridging and on-the-job training/apprenticeship programs.

  5. Local government must shift from being a passive player to being a proactive user of the technology and a customer for small and medium IT enterprises by instituting policies that outsource projects to local enterprises, encourage the design and implementation of web-enabled services, and support interconnection of offices and other local government units through the Internet.

  6. Continue successful programs that encourage the use and deployment of IT, and design mechanisms to institutionalize and make it more pervasive to the greater portion of Cebu's society.

  7. Establish institutional support for the IT Agenda by creating an IT Center, an Information Clearing House and a One Stop Business Processing Center to help in the conceptualization, design, plan and implementation of mechanisms to operationalize all of the above proposed program of action.

  8. Power utilities must continue to work on improving the quality of power and find better approaches to managing power distribution.
On the last day, the Vision and Program of Action was announced by then Honorable Mayor Alvin B. Garcia, Mayor of Cebu City.


(The above notes were derived from the original transcripts of the workshops during the Cebu IT Summit. I was the Lead Facilitator managing all the workshop processes.)