Tech Manager's Digest

EDITOR’S LETTER

UNCHARTED TERRITORY T rying something new and unfamiliar is one of the things most of us are

afraid of.

Writing has never been my forte; I'm more of a numbers and graphs guy. But then, TM291 happened! Our group was tasked to create a magazine for the Technology

Management Center (TMC). Pursuing this project was really challenging given that no one from our team has ever been involved in such a task. Nevertheless, we gave it a try—there's nothing to lose in trying. We did our best in writing and gathering all the content that you'll read about in here. We hope that you, the readers, will learn from and enjoy reading the very first Technology Manager's Digest! ☺

Roma Espiritu Roma is a graduate of BS Electronics and Communi-cations Engineering. Five years after college, she decided to pursue a post-graduate degree in Technol-ogy Management. She has a fascination for things relat-ed to food, yoga, technolo-gy, and travel. In the future, she plans to embrace a digital nomad lifestyle and travel across continents, possibly after finishing her studies. Currently, she keeps herself busy by com-pleting work projects, writing school reports, and wrapping holiday presents.

Patrick Espallardo Patrick graduated with a degree in electrical engineer-ing. He recently left his 7-year job at Emerson to work for the government. He is also competitive in different sports such as volleyball, tennis, dragon boat, and badminton. In his spare time, he enjoys classic films featur-ing Fred Astaire, Clark Gable, Greta Garbo, and Marlon Brando among others. He would usually post this on his FB page so people would think he is cultured.

Ian Catamora Ian is a self-proclaimed lover boy, but he's still single. Ouch! He loves reading science fiction novels and solving math and physics problems. He is an environmentalist and outdoor enthusiast. On a typical weekend, he can be found in a movie house or in the library (occasionally studying). He is a frustrated singer and dancer, but he is good in playing with musical instruments. :p

Roland Guerrero A true-blue Sagittarian with an eye for precision, Roland accomplishes his goals in life with pin-point accuracy. Armed with a combination of technical knowledge and social-scientific background, he is able to see things from various perspectives. A lost soul in the arts and sciences, he dreams of being able to apply these disciplines in business. After a brief stint at the Technology Management Center, he believes that he has found a place where his multidisciplinary background may be put into good use to fulfill his dreams for himself and the country.

Anna Urayan Anna is a mother of three boys and does a balancing act between work, school, family, and her personal interest—reading. Her love for reading stareted when her grandmother gave her the book “Lakbay Diwa” by Bella Angeles Abanagan when she was 11. It was from one of the stories in this book that she got her favorite quote: “Patience and Fortitude conquers all things.” This quote serves as her guiding principle whenever she misses a decent sleep working on her grad school paper.

Marjay Palumbarit Marjay is a bit of an audio-phile--he uses a customized in-ear monitor. He listens to classical music composed by Vivaldi and Chopin among others, which bores other people until they wear their own headsets to listen to other genres. He also loves dogs. He prefers talking to and playing with his dogs rather than with humans, specifically his neighbors.

PROJECT TEAM

Technopreneurship is the main theme in this first edition of the Technology Manager's Di-gest. First, we present the history of TMC. We then give a sneak peek on the lives of a few MTM students and alumni.

The story of Stephen Co and his company will inspire you to start your own business. We even wrote a comprehensive guide on how you should finance your business. Moreover, we included articles on technology business trends and incubators that you'll definitely look for-ward to.

Students and alumni share their stories about their companies and trips abroad. They present the things that they learned from the MTM

program that helped them succeed. We also featured events organized by MTM students.

Furthermore, we included an analysis on ABS-CBN's black box and their digital market-ing strategy.

Finally, Prof. Edison Cruz and Prof. Glen Imbang share their words of wisdom for MTM students and aspirants.

Ian R. Catamora Managing Editor

The Technology Manager’s Digest

Team posing for the camera before

TMC’s Christmas Party 2015.

From L-R: Marjay, Anna, Ian, Roma and

Patrick.

on our cover

TECHNOPRENEUR IN FOCUS

TECHNOPRENEURSHIP GUIDE

TMC EVENTS

DA BAR

DIGITAL TV MIGRATION

TMC HISTORY AND ACHIEVEMENTS

Nipa Brew: An Interview with the Founder,Stephen Co

HOW TO FINANCE YOUR START UP

START WARS & TMUP

EXPERIENCE SHARED BY AN INSIDER

STRATEGIC PLANNING APPROACH

CELEBRATING 20 YEARS

37

132325

1main features

subf

eatu

res

TECHNOPRENEURSHIP 6 | TECHLINGO 10 | TECHNOLOGY BUSINESS TRENDS 12 | TECHINCUBATOR TECHMANAGERS IN PRACTICE 18 | Footprints at Silicon Valley 19 | Shifting Gears 20 | A Day in PMI Operations Office 21 | The Technophile 22 | Technology for a Higher Purpose

contents

17

TECHNOLOGY MANAGEMENT CENTERUNIVERSITY OF THE PHILIPPINES DILIMAN

www.tmc.upd.edu.ph

TECHNOLOGY MANAGER’S DIGEST | JANUARY 2016

1 | UP TMC HISTORY AND ACHIEVEMENTS

On the 23rd of February 1995, the University of the Philippines Board of Regents (BOR) held its 1084th meeting, which authorized the establishment of the Technology Management Center (TMC) at UP Diliman. Dr. Emil Q. Javier, then UP president, signed the Executive Order granting approval for the organization, administration, and operation of the TMC.

Recognizing the need for and the growing interest in the development of an education and research institution for technology management in the Philippines, TMC was created to serve for these fundamental purposes: [1] to respond to the needs of firms and industries for technology upgrading, productivity improvement, and enhanced global competitiveness, as well as [2] to respond to the established requirements of the Philippine government for expert advice and assistance on science and technology policy analysis and formulation; technology forecasting, planning and assessment; R&D management; and program and project management.

TMC is structured as a research and extension unit, which is attached to the Office of the Chancellor for program coordination and administrative supervision. It is also considered a first of its kind in the Philippines and the ASEAN region as an interdisciplinary program drawing expertise and experience from other UP Diliman units, namely, College of Science, College of Engineering, College of Business Administration, School of Economics, College of Social Sciences and Philosophy, National College of Public Administration and Governance, College of Home Economics, Asian Center, and Institute for Small-Scale Industries.

TMC offers graduate courses leading to the degree of Master of Technology Management (MTM). The initial offering of the MTM Program in UP Diliman was on June 1996. MTM is considered the first ever degree program in Technology Management in UP and in the Philippines. One of the main objectives of the program is to produce a new breed of Technology Managers for various sectors of the Philippine society who can respond effectively to the rapid technological changes by harnessing these innovations in order to improve productivity, quality, competitiveness, and service of their own organizations.

TMC envisions itself as a world-class center for advanced education, research, and extension services in the field of Technology Management. As part of the Executive Order from the BOR, the center was defined with the following objectives:

• To provide advanced education and training in Technology Management

• To undertake interdisciplinary research on various aspects of Technology Management

• To assist the government on technology forecasting, planning and assessment, S&T policy-making, R&D management, and other macroeconomic aspects of Technology Management.

• To provide technology management consultancy services to local entrepreneurs, business and industry executives, and other technology users.

• To increase public awareness on the importance of science and technology, technological innovations, and national technology development for economic growth and improved standards of living.

EstablishmEnt of thE UP tmC and mtm Program

Works Cited

1. University of the Philippines Diliman. (June 1995). Excerpt from the Minutes of the 1086th meeting of the Board of Regents held on 25 May 1995. Quezon City, National Capital Region, Philippines.2. UP Technology Management Center. (2014, April 21). The U.P. Technology Management Center: Its Present Status and Plans. 3. UP Technology Management Center. (n.d.). Agency Profile.

TECHNOPRENEURSHIP EDITION

UP TMC HISTORY AND ACHIEVEMENTS|2

• UP TMC was established on February 1995, with the approval from the UP Board of Regents of the Executive Order signed by former UP President, Dr. Emil Q. Javier.

• TMC held its first seminar-workshop on Management of Technology on November 1995 for the government, industry, and academe.

• The MTM Program commenced on June 1996.

• TMC produced the first batch of MTM graduates (First Semester, SY 1997-1998).

• TMC has accomplished eighteen research studies and publications, foremost of which are the two published research studies for the National Economic and Development Authority (NEDA), entitled, “Science and Technology Forecasting” (1997) and “Restructuring Philippine Industries Toward the 21st Century” (1998).

• In May 1997, TMC was chosen to represent the country in an ESCAP-sponsored international assembly held in Tehran, Iran. Dr. Elvira Zamora, the Center’s first full-pledged Director, was the sole Philippine representative to this forum.

• In June 1999, TMC took over the management of the UP Technology

Business Incubator (TBI). The Center supervised the physical rehabilitation of the TBI and its daily operations until the latter was transferred to the Ayala Foundation.

• In June 2000, under the leadership of former Director Helena Valderrama, TMC proposed and implemented curricular revisions for its graduate program in Technology Management, with the goal of enhancing its relevance to the changing Management of Technology needs of the country, as well as to developments and innovations in various technologies. UP Diliman University Council approved the revitalized MTM program in April 2001.

• In early 2002, the facilities and services of the TMC were further improved with the acquisition of the latest computer devices and configuration of its own Local Area Network. Thus, completely establishing the IT service and research capabilities for its students, faculty, staff, and clientele.

• In March 2003, TMC was chosen to serve as the Executing Agency for a year-long project of the ASEAN Sub-Committee on S&T Infrastructure and Resources Development. As part of the project, the Center conducted five international seminar-workshops on Public-Private Collaboration in S&T: Policy Development, Training

and Awareness, which were held in the Philippines, Malaysia, Vietnam, Thailand and Cambodia.

• In March 2004, TMC was selected to represent the Philippines in the conduct of a Technology Foresight Project on the human resource capabilities of the electronics industry by the APEC Center for Technology Foresight of the National Science and Technology Development Agency (NSTDA) of Thailand.

• Since June 2008, TMC started offering a special off-campus MTM Program at DOST in Bicutan. The program caters to the middle-level executives of DOST.

• As of June 2015, the UP MTM Program has produced 563 graduates. Majority of these graduates have been promoted to higher-level technical managerial positions or started their own technology-based ventures in various industries.

• As of the first semester of SY 2015-2016, there are approximately 300 continuing MTM students.

tmC milEstonEs

The first batch of MTM graduates


Stephen Michael Co finished his Biology degree from Ateneo de Manila University in 2009 and graduated as a top student in his Masters of Technology Management course from the University of the Philippines in 2012. He is also a recipient of UK’s Chevening Scholarship through which he took his MPhil Bioscience Enterprise degree at the University of Cambridge in 2012—2013. Currently, he divides his time between running his own company as CEO and teaching at Ateneo.

Beer connoisseurs have been praising Nipa Brew since its entry to the local market in 2014. Just barely a year since its founding, the company was able to make its flagship beer, Tropic Haze, as one of the fastest-growing locally crafted beer in the country and gain a considerable number of patrons from young professionals. Tech Mngr Digest interviewed Nipa Brew’s founder, Stephen Co, about how he started his own business, the challenges he faced, as well as

How did Nipa Brew started?

Nipa Brew is a local craft brewery. We are one of the emerging microbreweries in the country. Actually, Nipa Brew is part of Nipa Foods, which is a bigger brand. In Nipa Foods, we go around different provinces looking for the most sustainable, unique, and innovative products from our local community partners and brand them as Nipa Foods. Then I thought that, maybe, we have good beers here in the Philippines. In 2013, I went to the UK where I was able to enjoy various variants of beers. I then had an idea that the local market in the Philippines can also enjoy this variety of beers and upgrade their taste in beer. A demand for interesting artisan beverages like craft beers seems to be present. When I came back to the country. I looked around for local craft brewers that can contract brew for me. However, they said that their supply can’t even keep up with their demand. So I decided to put up my own microbrewery.

In your own words, how would you define entrepreneurship?

I think entrepreneurs are naturally risk takers. Putting up an enterprise or a business certainly involves risks. This is the number one attitude that an entrepreneur has to have. He has to be able to take risks. The second would be hard work—most definitely hard work!

I wake up every day at 6:30 AM and sleep at 12 midnight still thinking about my business.

I work during weekends, even Sundays. I am able to do that because I love my business so much. When you are passionate with something that you do, you don’t even see it as a sacrifice. I see it as a step in growing my business. That’s the holistic approach to business—when you enjoy what you’re doing and you’re passionate about it, even though you know it’s hard work, you still enjoy what you do.

What is the competitive advantage of your business?

The craft beer market in the Philippines is still very small. Only around 10 of us are in the playing field. To differentiate us from others requires some sort of innovation. You should know how to find opportunities. For example, when you look at your competitors, don’t look at what they are doing but look at what they are not doing and go there. Most of the craft beers in the Philippines are more on the mature side, the very bitter beers, very flavorful but very bitter

Then you have your commercial beers, which are plain and bland. Where we are playing is in the middle ground. Someone to play in the entry point is needed, so we are your gateway to craft beers.

How did you transition from being a biologist to an entrepreneur?

I really enjoyed Biology back in college. I love working in the lab. But I didn’t know what to do after college and I didn’t want to go to med school because as a doctor, you can only help people as fast as your two hands can work. Since I came from a family of business people, I had quite a head start on doing business. So I thought of how I can combine this love for Biology and business at the same time after college.

In Hybridigm Consulting, we commercialized research from Filipino scientists. The goal, which I enjoyed doing, was very noble. We always talked about the biodiversity in our country. So I thought to myself, how can we utilize or commercialize this biodiversity? That is how our business was formed.

What is you motivation as an entrepreneur? What keeps you going?

My motivation for being an entrepreneur is that I want to be remembered by society—by history—and what better way to be remembered other than by doing good to society. Entrepreneurship is one way of giving back. If you ask any successful entrepreneur, I don’t think money is their first motivator. What really motivates most of us entrepreneurs is that we are trying to solve a problem and we have a good solution that people can enjoy and pay for. For me, Nipa Brew somehow does that. We want to affect young people; we want to reach millennials who enjoy drinking San Miguel.

TECHNOPRENEUR IN FOCUSNipa Brew: An Interview with the Founder,Stephen Co

WRITER/INTERVIEWER : PATRICK ESPALLARDO

“In Hybridigm Consulting, we commercialized research from Filipino Scientist, this goal is very noble. We talked about biodiversity in our country”

3 | TECHNOPRENEUR IN FOCUS


Our company’s tagline is “We are your gateway to craft beer,” because when you want to upgrade from the commercial beers such as San Miguel, Budweiser, and Heineken, you look for us, Nipa Brew. Then when you are done with us, you can move on to our competitors, which are the more mature tasting beers.Another competitive advantage that we have is that we’re mostly made up of science graduates, which is how I envisioned the company. By forming the company with science graduates from local universities, we are certain that we can do everything; we can go down to the molecular level to make sure that our food tastes great. Also, safety is our number one concern. We have a team of food technologists and microbiologists who tests our food and makes sure that our food is safe to eat and drink with artificial preservatives. We also focus on our packaging, which is another one of our competitive advantages.

How did you commercialize your own technology/research?

Most science graduates think that making money from their inventions or discoveries is somewhat an anti-thesis of what they do since these efforts should be free for all or that everyone should benefit.

My leadership style is to simply tell you my vision, and then we try to achieve that vision together. We don’t like micromanagers here; we don’t micromanage. As long as you play within the company policies and culture, you have a free ring on what and how you want your task to be accomplished.

What are the challenges in doing a start-up business?

I am the first in my family to venture into beverages, which is why, even though my parents have been in business for a long time, they couldn’t give me a lot of advice on how to run a food and beverage company. I wouldn’t say that it’s a failure, but that it was really, really hard. It’s really difficult to build a food and beverage company from the ground. We assembled the equipment ourselves because our Chinese supplier wouldn’t send their technician. We experienced lots of mistakes and machinery breakdowns, which we had to deal with ourselves. These setbacks teach you to be resourceful, which is exactly what an

“My leadership style is to simply tell you my vision, and then we try to achieve that vision together”

But everyone should realize that money is what’s really needed to fuel innovation. You need lab equipment, excellent personnel with good degrees, and funding.

However, grants are limited, so, why not try to commercialize your research and return the profits back into your research? There’s nothing wrong with that. This kind of mindset is what science majors should have

What kind of management style do you use in running your office?

Our office is mostly composed of millennials, those who were born during the 1980s to the early 2000s, so we have a very “millennial” culture. We don’t have fixed office hours; as long as you finish your job, you could come and leave whenever you like. This setup works for us quite well. It makes team members responsible and accountable for their actions. We just ensure that our leaders ask you to do what you have to do and that’s it.

Photo grabbed from entrepreneur.com.ph where Stephen was featured as Young Entrepeneur .

TECHNOPRENEUR IN FOCUS |NIPA BREW AN INTERVIEW WITH THE FOUNDER|4


“The number one barrier to entrepreneurial success is the mindset of our people. We are not a risk-taking country.

What are the entrepreneurial barriers that you experienced in starting up your own business?

The number one barrier to entrepreneurial success is actually the mindset of our people. We are not a risk-taking country. These businesses—real estate, food, and retail—are very traditional. I wish that we could have that Silicon Valley mindset where both the entrepreneurs and investors are like-minded in terms of funding risky ventures. Moreover, putting up a business in the Philippines is complicated. If the Philippine government can make it easier by lessening business requirements or allowing a start-up to establish itself for a few years before requiring it to submit itself to regulations, that would be a great help. Despite that, putting up a business is still not easy; having a mindset of hard work and risk are essentials to allow you to navigate the difficulties of putting up a business wherever you are in the world.

How did you go around with the technology push and market pull within your field?

In developing new products, we struggle with these two concepts. As much as we would like to create very unique flavors, we also have to consider our local market. Filipinos are used to a certain flavor, for instance, San Miguel beer.

What is your ADVICE TO ASPIRING

ENTREPRENEURS?

My advice to young and aspiring entrepreneurs is to just do it! You’ll definitely encounter all of the difficulties that you could think of—all those monsters in your head—but at the end of the day, you have to take that first step and just do it.

Read more about the article at http://www.entrepreneur.com.ph/business-ideas/Young-entrepreneur-taps-crowdfunding-for-his-startup-microbrewery

We wouldn’t deviate too much from Filipinos with this kind of palate because they are still our market. The market is what you consider first when you do any kind of business.

How do you see Nipa Foods’ future?

I’m a typical, young entrepreneur who admires established companies like Google or Facebook. I admire them not because I like their products but because of how they are able to serve the market that they are currently serving. So 10 to 20 years from now, we’d be playing in the Agri-Biotech field. The problem then would be how to overcome the

barrier to entrepreneurship in this country.

Tropic Haze is a world-class beer brewed using premium, all-natural ingredients with the Filipino taste in mind and the goal of changing the Filipino beer industry, one sip at a time.

(courtesy of thesparkproject.com )

”

“Most science graduates think that making money from their inventions or discoveries is somewhat an anti-thesis of what they do since these efforts should be free for all or that everyone

should benefit”

Acquihire

Apportunity

backseatinvestor

Bootstrap

Freemium

Pivot

In the wild

MVP

Pre-Revenue

Stealth Mode

5|TECHNOPRENEUR IN FOCUS |NIPA BREW AN INTERVIEW WITH THE FOUNDER


TechLingoSo you have an idea that is so brilliant, you think you can pitch it into Silicon Valley. Hold it right there! First learn the culture of Silicon Valley and some of its lingo. Here are some of the terms used in Silicon Valley and their urban definitions.

Acquihire

Apportunity

When a startup is being acquired, usually by a bigger company for the purpose of hiring the startup’s employees, without consideration of gaining the products or users.

An opportunity when a mobile application can meet a need in the market.

A passive investor who waits for a bigger investor to commit, so he can gain returns without active participation.

Startup funds that are generated by the founder himself because investors are not interested in it.

When investors “invest” a small amount into a company so they can use the logo for promotion.

When investors join the bandwagon of which startup to fund.

Being overconfident about growth potential.

A new technology that is currently being used by consumers.

Also known as the “minimum viable product”. A product that somehow works for its intended purposes however has less features and more bugs.

Receiving $1 a year for tax benefits, because some founders are more concerned on tax benefits rather than salary.

A startup valued for billions of dollars without having any margin.

Starting over again with a totally dissimilar product after the failure of an initial product.

Operating a startup in confidentiality to avoid potential competition.

Also known as the “I’m like Steve Jobs” Syndrome. This involves micromanaging the company, thinking that only his opinion is correct, and neglecting other opinions. Because it is his idea alone that built the company and keeps it up and running.

A business model that attracts users by offering the product or service for free, with “premium” features that you need to pay for.

backseatinvestor

Bootstrap

Buying the logo

Founder Syndrome

Freemium

Pivot

Herd Mentality

Hockey Stick Growth

In the wild

MVP

One Dollar Billionaire

Pre-Revenue

Stealth Mode

TECHLINGO|6

7|HOW TO FINANCE YOUR START UP


HOW TO FINANCE YOUR START UP|8



9|HOW TO FINANCE YOUR START UP



“New businesses can have prototypes

delivered to them within a week or less

using 3D printing technology"

3D printing has been around since 1980 and it was originally known as Rapid Prototyping (RP) Technologies. The first patent application was filed on May 1980 by Dr. Kodama of Japan, but he failed to file a full patent application within the one year deadline after the initial application. On 1986, the first patent was issued to Charles Hull, who invented the stereolithography apparatus (SLA) and co-founded 3D System Corporation. (History of 3D Printing). 3D printers are able to create objects by replicating layers of a digitally-modelled object using materials such as resin, metal, nylon, abs plastic or PLA. The technology recently went mainstream as the printer cost became affordable. The first 3D printer designed and manufactured in the country was made by Puzzlebox( www.puzzlebox3d.com ), Puzzlebox 3D Printer, with a resolution of 100 microns has price ranging from Php40,000 – Php212,000.

In the recently concluded 3D printing & DigiFab Expo Conference last Aug 7 to 9 at SMX Convention Center, Frederick Chua, a UP alumnus and President of My 3D Concepts Corporation “3d2go” has discussed some practical applications in the mainstream consumer industry including medical science, engineering, design and architecture. They build prototype for industrial design, model house and interior design. “3D printing is a truly disruptive

technology. It changes the way we think about design and manufacturing in a fundamental way, giving users the ability to literally transform their ideas into tangible products. This technology is a true driver of innovation and creativity” (The Philippine 3D Printing and Digifab Expo and Conference 2015, 2015)

The research company Gartner predicts that 3D printer shipments worldwide will double every year until 2018, driven by falling costs and companies integrating them into their manufacturing operations. According to Wohlers Report 2014, the worldwide 3D printing industry is expected to grow from $3.07B in revenue in 2013 to $12.8B by 2018, and exceed $21B in worldwide revenue by 2020. Prototyping (24.5%), product development (16.1%) and innovation (11.1%) are the three most common reasons why companies are pursuing 3D printing (Columbus, 2015)

TECHNOLOGY BUSINESS TRENDS|10



Some of globally well-known 3D printer creations are:

Local Motors’ 3D Printed ‘Strati’ Car.

Shanghai-based WinSun 3D Prints 6-Story Apartment

World’s First 3D Printed Castle by Andrey Rudenko

Learn more at: 3dprint.com

Bibliography

Columbus, L. (2015, Mar 31). 2015 Roundup Of 3D Printing Market Forecasts And

Estimates. Retrieved from forbes.com:

http://www.forbes.com/sites/louiscolumbus/2015/03/31/2015-roundup-of-3d-

printing-market-forecasts-and-estimates/

Krassenstein, E. (2015, Sep 08). Lewis Grand Hotel Erects World’s First 3D Printed

Hotel, Plans to Print Thousands of Homes in the Philippines Next. Retrieved from

3dprint.com: http://3dprint.com/94558/3d-printed-hotel-lewis-grand/

Tablang, K. (2015, Sep 28). Manila’s Lewis Grand Hotel Unveils The First 3D-Printed

Hotel Room. Retrieved from forbes.com:

http://www.forbes.com/sites/kristintablang/2015/09/28/lewis-grand-hotel-unveils-

first-3d-printed-hotel-room-philippines/

The Philippine 3D Printing and Digifab Expo and Conference 2015. (2015, May 23).

Retrieved from neotrade: http://www.neotrade.co/2015/05/3d-printing-philippines-

now.html

�ow would you like to spend a night with a room created by 3D printing technology? In near future, this will be possible as the Lewis Grand Hotel in Angeles, Pampanga has recently unveiled a 130-square meter concrete made room with a 3D printed spa. It is the first legally sanctioned and operational commercial structure in the world constructed using 3D-printing technology (Tablang, 2015) . The project was spearheaded by hotel owner, Lewis Yakich who is also a material science engineer with the help of Andrey Rudenco, who served as the lead designer for the printer. “It took approximately one month to develop and test the right mix using local materials. We have sand with volcanic ash here in the Philippines, which is difficult to extrude, but a reliable process was developed, and we obtained great results with pretty strong walls and good bonding between layers. It took 100 hours to produce the whole structure as wiring, plumbing and rebars needs to be installed”. Rudenco explains. (Krassenstein, 2015).

11|TECHNOLOGY BUSINESS TRENDS


Don’t just give up on it!

SO YOU HAVE AN IDEA, BUT YOU DON’TKNOW HOW TO COMMERCIALIZE IT?

Technology incubators might be able to help you to succeed in your budding entrepreneurial venture. So what is a technology incubator? It is an entity, which can either be public or private, which assists startup companies to develop by providing mentoring assistance, equipment, office space, and seed funding among many other benefits. Simply put, it helps startups in the early stages of development so the entrepreneur can focus on developing the technology.

So here’s a few of the technology incubators in the Philippines, in random order:

DOST-UP Enterprise Center for Technopreneurship

Inaugurated on February 2012, Department of Science and Technology partnered with University of the Philippines to offer this program. It is located in National Engineering Center within UP Diliman Campus, and caters to a myriad of technology fields such as ICT, electronics, food technology, and biotechnology among many others.

Ideaspace Foundation

Ideaspace offers both incubation and acceleration. Getting into the program is through a multi-industry startup competition. The top 10 ideas will be incubated in Makati for 6 months and shall be granted P500, 000 through the program. Once successful, the entrepreneur shall give back 20% that will be used for the next generation of startups.

Kickstart Ventures

Kickstart is a spin-off from Globe Telecom which started on March 2012. Their portfolio now consists of various startups which can be categorized into SaaS, eCommerce, Social Impact, or Lifestyle. Most notable in its portfolio is Kalibrr, which is the first Filipino startup to join Y Combinator, one of the pioneer startup accelerators in Silicon Valley.

Hatchd Inc.

Hatchd is incorporated in November 2010. Their portfolio consists of mainly digital content, software development, and e-Commerce among many others. They also provide back office support aside from the usual tech incubator offerings. They are the technology and business arm of Rappler.com, a social news network.

Manila Founder Institute

Founder Institute headquarters is in Silicon Valley, they opened their Manila chapter last May 2014. It aspires to deliver a Silicon Valley experience to innovative Filipinos through an outstanding startup entrepreneurship program. Their program is well-designed, challenging and consists of 4-month weekly night sessions.

DOST-PEZA Open Technology Business Incubator

Beside Technology Management Center is the OpenTBI. Department of Science and Technology collaborated with Philippine Economic Zone Authority to offer business and technical coaching. It also offers virtual incubation service for startups that operate elsewhere. Startups are of various industries such as embedded systems, software development and other interesting fields.

TECH INNCUBATOR|12

13|start wars


start wars|14

This half-day events aims to ignite the technopreneur-ship aspirations of Technology Management students and oth-er budding technopreneurs to put up their own start-up busi-ness in the field of technology.

Richard Moya, Department of Budget and Management’s Chief Information Officer & Un-dersecretary, serves as a keynote speaker , with technopreneur-ship rockstars, Ari Bancale, Paul Gadi, Gary Villame, and Mon Ibrahim joined as guest panellist.

The TM291 Class who organized Start Wars with Prof. Paulo Paje, Prof. Glen Imbang and TMC Director Edison Cruz.

Photo grabbed from Ces Dela Fuente’s Intagram Account



15|TMUP: CONNECT. CONVERGE. COLLABORATE.


TMUP: CONNECT. CONVERGE. COLLABORATE.|16

2015 TMUP Core Group. From L-R: Kai Bangcola, Ian Pestelos, Ronnie Gozun, Jules Capacillo, UP-TMC Director Edison Cruz, Mike Anselmo, Ari Bancale (Speaker), JC Rojales, Prof. Glen Imbang, Rey Babilonia, JM Flores, and Nidez Cruz

“It is our vision to have sustained TMUP

events beyond the founding TMUP

Team. We believe it’s highly valuable to have

close and continuous collaboration among

the MTM students and alumni.”

TMUP: CONNECT. CONVERGE. COLLABORATE.UP Technology Management Center (TMC) has produced almost 600 graduates in 20 years, creating ripples in their own respective industries. Combine that with more than 100 current Masters of Technology Management (MTM) students and you can only imagine the wealth of knowledge and expertise that can be harnessed among these technology game-changers.

This huge potential is exactly what the Technology Managers of UP (TMUP) aims to bridge. Composed of 10 students of Professor Glen Imbang’s TM 291 Project Management class, the group sets course to explore how meetup groups and networking sessions can be harnessed to get the conversation, collaboration, and connection to happen.

Pilot Event in NovemberAri Bancale, Founder and CEO of Cyburban and 2001 MTM graduate, delivered quite a thought-provoking talk (note: without presentation slides) about transitioning from employee to entrepreneur. He also honestly admitted to an inconvenient truth about most students’ objective in taking up MTM - to get promoted. And while that may be a noble goal, to Ari the tools that MTM provides are perfectly suited to propel students to succeed in entrepreneurship if only we can overcome the fear of the unknown and the fear of failure.

Ari took the attendees to his startup journey for the last few years - from his challenges with connecting and speaking to people to getting funding and signing up customers, and how he overcame them one by one. He encouraged everyone to take the leap to entrepreneurship, understand the ongoing shift to an “experience” economy, and appreciate that now, ‘context is king’.

TMUP also invited a few quick “pitches”: Jay Diaz, also an MTM alumni, talked about “Cyberpreneur: Online Business Startup Guide” where he contributed a chapter about Technopreneurship, while UP-TMC Founder Dr. Roger Posadas provided an overview of an upcoming Ph.D. program in Technology Innovation Management in Lyceum of the Philippines University.

“We’re off to a great start, and there were positive feedback from attendees and the professors alike. We believe more conversations and networking events like this will be very valuable to the TMC community”, says TMUP Marketing Head Nidez Cruz.

Sustained TMUP EventsTMUP is holding their next event entitled “TMUP Launch” on December 5, 2015 in UP-TMC, hosting a few alumni and industry thought-leaders as event speakers. The event will also be co-organised by the 2015 MTM batch officers - a move to pass the baton to the TMC student leaders to continue organising the TMUP events forward.

“It is our vision to have sustained TMUP events beyond the founding TMUP Team. We believe it’s highly valuable to have close and continuous collaboration among the MTM students and alumni - we could be seeing the future of Filipino technology management being shaped right here, right now”, says TMUP Project Manager BJ Edward Taduran.

If you are interested to help out sustain the TMUP initiative as an organiser, sponsor, speaker, or attendee – please email [email protected] Bancale talks about his startup journey and how his

MTM learnings is helping him through it.

Technology Managersin Practice

photo: http://www.gmbtechnology.com/

Technology Managersin Practice

Footprints at Silicon Valley. Northern California By: Camille Alamban

Nov. 11, 2015–After an hour and a half of travel on the busy streets of East-West San Francisco, I, together with my colleagues in the IT industry, went to the southern portion of the San Francisco Bay Area–the Silicon Valley. Silicon Valley is home to many of the world’s largest leading high-tech corporations, thousands of startups, and great entrepreneurs. Personally seeing and stepping onto the land of the bold and the great minds is one item checked from my bucket list. Given that most of the IT industry’s influencers such as Google, Cisco Systems, Facebook, and Oracle are in Silicon Valley, visiting this place is truly a one-of-a-kind experience.

One of the companies we visited was F5 Networks, Inc. (F5 Networks), which was one of the fastest-growing companies in 2000 and one of the top ten best-performing stocks in the S&P 500 index in 2010. F5 Networks, originally called F5 Labs, is a multinational American company that specializes in load balancers, which are active components that distribute network traffic in network infrastructures. F5 Networks has streamlined its business of optimizing the delivery of network-based applications as well as the security,

One of the managers we met was Cyrus Rafii, F5 Network’s Senior Business Development Manager.

According to Mr. Rafii, by 2020, a projected of 50 billion connected devices will be in use, or seven devices for each person on the planet; thus, securing and managing the Internet of Things will become even more critical. Operators will need to scale networks to handle the rapid growth of data traffic and corresponding increase in signaling traffic. As such, F5 Networks will also need to offer a secure connectivity to support these new service and business models.

Vincent Ng, the Senior Solutions Architect at F5 Networks, explained that their F5 Synthesis architecture supports a service provider’s ecosystem using carrier-grade solutions around intelligent traffic management, diameter and signaling traffic management, multi-layer security, and Network Functions Virtualization for a secure, dynamic, and tight network control. These solutions enable operators to upgrade their networks cost-effectively, ensuring optimized network services and enhanced Quality of Experience for their subscribers, while still driving new revenues.

Combined with other technologies such as Cisco and Openstack, F5 Networks is providing a solid future in the cloud environment, security, and mobility by delivering applications and services to anyone, anywhere, at any time.Our visit to F5 Networks was truly a worthwhile experience; it broadened my insights on the current and emerging technologies in the IT industry. These new learnings combined with the knowledge gained from the Technology Management Center program will surely be valuable to my endeavors in the IT profession.

performance, and availability of servers and storage devices. F5 Networks was originally headquartered in Seattle, Washington, which I was very fortunate to visit last July 2013. They just recently opened their Silicon Valley office last July 2015. Both of their Data Centers are truly remarkable; both are capable of simulating data traffic as well as client application environment, data sustainability, and security. During our visit, we were able to meet a few of F5 Networks’ managers. They came from top companies such as Cisco Systems and SAP and moved to F5 Networks because of the company’s promising solution portfolio.

technology managers in practice|18


Shifting GearsBy Rose Pamittan

One might wonder what a trade officer is doing in a Technology Management master programme. Please allow me to back track a bit. Prior to joining the foreign government service, I am with an engineering and technology firm. With a business course as my bachelor’s degree, I initially wanted to compliment it with a master programme that shows the technical side of things. In short, I want to learn how technical people (engineers, IT professionals, scientists) work, speak, and think. But it wasn’t long when I decided to shift gears and took the opportunity to join the foreign government service- first with one of Ministry of Trade and Industry’s agency for trade and investment promotions and now with the European Union.

At some point, I thought this master’s programme will no longer make sense in the line of work that I chose to take. To my surprise, it remains useful. My trips in Singapore for trainings made me realize the gaps in our government policy making and system especially when it comes to research and development, innovation, and science and technology. It also showed me how the collaboration of government, universities and businesses can really create synergistic impact to the society at large. Technology Management also served as a handy tool during my official missions where I brought in Singapore companies (established or new), to invest in various PPP projects in -the country or even in private direct foreign investments in various PEZA zones.

While I witnessed in Singapore how their government assists its companies to grow both domestically and internationally, with EU I see how policies and standards are put in place to make lives easier, products and services more sustainable and how processes are streamlined to make it more efficient. During official missions to the Philippines, I also see how the country works hard to get Filipino products part of various global value chains and production networks especially in relation to this economic bloc. I also see how the

-Philippines put in place pieces of legislation to ensure that the country is compliant with the many international conventions that it ratified. I also get the chance to interact with experts in various fields like intellectual property, public procurement, competition, agriculture, customs and taxation, and international law on human and labour rights.

Currently, I work for the Delegation of the European Union to the Philippines as Trade Officer. This gave me the opportunity to travel to Europe (Brussels, Belgium) where the seats of the European Commission and European Parliament are located. This also gave me the opportunity to see the other member states like Germany, Netherlands, and France. In my official mission to Brussels mid of this year, I had the opportunity to witness how robust EU’s knowledge management system is which makes knowledge transfer more seamless and efficient. The training I had made me further understand economic diplomacy and how these two change global dynamics among nations, and realized the importance of international standards across borders and intellectual property protection especially in today’s global trade.

Now we go back – of what use is technology management then? It’s in every bit of it – in government systems modernization, in all public-private partnerships projects, in foreign direct investments, in technology and knowledge transfers, in trade relations, and most especially in policy making. As a matter of fact, working with the EU gave me the impression that technology management can be a tool to create more technocrats in the government – to ensure that more than politics, we have people in place who know what they are doing and what has to be done. To ensure that amidst the bureaucratic processes in place, innovative projects are delivered to improve the way and quality of life of everyone.

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A Day in PMI Operations CenterIn 2001, Philip Morris International (PMI), a leading tobacco company in the world moved their sales and marketing and operations center from New York, USA, to Lausanne, Switzerland. PMI’s center for Research & Development (R&D) is also located in Switzerland. We have over 500 R&D employees focused on the development of products aiming to reduce the risk of tobacco-related diseases which is primarily the mission of the company other than producing quality ready-to-use cigarettes.

Last October 11-21, 2015, I had an opportunity to visit our operations center as part of the knowledge transfer on my new role in Philip Morris International. I am working as a Planning Analyst which is part of the Global Technology Services Project Management and Planning function, reporting to the manager based in Lausanne, Switzerland. With my visit in Lausanne, I had a face-to-face encounter with our management team. Since the focus of my job is on project management for IT, the visit helped me to be adept with the management of operations specifically that of infrastructure, telecommunications, service management, and other tasks in the company.

The PMI office itself is really far beyond the offices here in Manila – from its architecture to the amenities they provide for their employees are indeed incomparable. Having employees as their key strengths, the operations center does not only deliver better benefits to their employees.I observed that the company wants its employees to have a work-life balance.

There is a gym with sauna facilities, an entertainment room and even the food on the cafeteria is quite health conscious. People there are from different regions. From my observation, majority came from different European regions. French is the language used in Lausanne but since people come from other places, English became their common language.

As R&D is located in Lausanne, I witnessed a promotion of their new product – iQos. iQos is smokeless cigarette that uses the typical cigarette but has an additional electronic device used for burning or heating the cigarette. The new device uses real tobacco refills but instead of burning it to produce harmful smoke and tar, it heats it to produce tobacco-flavored vapor. Nevertheless, iQos is for people who don’t want to quit smoking but wanted to reduce the risk of tobacco’s negative effect in the body.

The R&D of PMI conducted technology assessments on this matter. Since they noticed that people are shifting to vape and the company wanted to continue producing reduced risk quality tobacco, they thought of combining a vape-like device and the cigarette itself. iQos is the first in this kind of innovation. This has shaken the tobacco industry in the market. As of this writing, iQos is only sold in Switzerland and Japan.Overall, my trip to Lausanne was such a great opportunity for me to visit Philip Morris International and to know our team personally. The trip was quite short but was still a memorable one. I am looking forward to going back to Lausanne again!

By Zaramaine Bona

A light moment with my manager, John Coke andmy teammates Christian Dreer and Victor Orel.



AffinityX - Affinity Express, is a white label creative and marketing services provider for companies that serve small and medium businesses (SMBs) in the US, Canada and Australia, AffinityX Offers Digital Ad Production and Ad Trafficking, Web Development, Print, Pagination and Copywriting servicesPaulo has worked for AffinityX since January 2013 and is the Manager for Operations for Digital Design and Content Services in Manila. He oversees a group of Digital Ad Designers and Web Developers for various US, Canadian and Australian clients. Aside from Operations, he is also involved on product development and acts as a subject matter expert for Digital Ad and Video Production, Online Campaign setup and Web development. On a typical day, Paulo checks on how the team is doing in terms of meeting SLAs and maintaining the quality of work. If there are complex and custom requests for campaign setup and implementation, he assists and provides technical support. He also provides consulting work for clients on how they can utilize the maximum potential of their online campaigns through different channels. (Online Display, Search, Web).

One of his biggest accomplishments at AffinityX was to help expand the company’s product offerings for digital ads, video and web development. He contributed to discovery for the new products, and trained designers and developers for new technologies and platform tools being used in digital marketing production operations.

Paulo grew up in a fishing town in Marilao, Bulacan, where his parents often caught him chasing carabaos (water buffalo) in the rice fields, fishing or playing with other kids. Paulo has an older brother, younger brother and younger sister. He moved to Manila when he was in college and now lives in Quezon City.

When not at work, Paulo does a lot of sleeping, eating and playing video games (he owns a PS3, PS Vita and 3DS!). He loves to cook and credits his mom for his skills in the kitchen. He also explores new restaurants with friends and try

Paulo says he is a technophile by nature. “It really excites me whenever I see something new and I usually get passionately curious about how things work. This is what inspires me to share my knowledge and expertise with people, as well as learn from others in the process.”

Currently Paulo is deployed to one of the popular Online Marketing companies in the US based in Loveland, Colorado. Doing consulting work for online campaign setup and design and implementation.

The TechnophileBy Paulo Sumawang

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A desire to give back to the institution that has shaped and given me the best times of my life – this sums up why, after finishing a bachelor’s degree in the University of the Philippines, I found myself quickly landing a job in the University of the Philippines Manila - National Telehealth Center (UPM NTHC).

I expect that my organization is unheard of for most; but the UPM NTHC is actually a widely recognized research and development organization, dubbed as the “pioneer of eHealth in the Philippines”, with a wide array of proudly Filipino-made eHealth products and a vast nationwide footprint. Basically, eHealth is where information and communications technology (ICT) meets health; it involves the electronic transfer of health information using ICT to improve health services delivery. Aligned with UP’s mission to serve the people, NTHC’s solutions are designed by and for Filipinos in geographically isolated and disadvantaged areas (GIDAs). It is our strong belief that eHealth will eliminate health inequity in our country by enabling the delivery of quality health care services that break geographic and economic barriers.

Our vision is to bring eHealth in empowered communities all over the Philippines by developing eHealth applications drawn from the users’ problem-solving contributions. This is why our products and services are aptly branded as people-centric solutions. The principal aim of UPM NTHC is not to gain profit from its research products but to allow the maximum benefit to be realized by the greater majority of people in the Philippines.

It may come as a surprise, but I my background is neither health nor information technology (IT) heavy. But I found that I was able to align my personal goals with NTHC’s bigger picture – and that is what largely matters in terms of job fit. I joined the NTHC team just two weeks after I graduated in April 2012, with a degree in Industrial Engineering (IE) from Diliman. Despite being a fresh graduate, I instantly assumed the role of head of operations or Chief Operations Officer (COO). From 2012 to now, NTHC remains a close-knit workplace, with an average population of 40, majority of which are doctors and nurses. Although I am literally one of my kind in NTHC, I did not find it difficult to adjust to the environment; after all, the UP Department of IE and Operations Research’s extensive curriculum has ensured that graduates of the program will not be limited to managing manufacturing plants and assembly lines. Given that NTHC is a small organization, my flexible scope of work cuts across functions that would otherwise be separate in regular firms: from human resource management, financial management and accounting, to managing administrative support services, among others.

Aside from my natural affinity to a challenge, I also love the many opportunities that come with my work. I am very fortunate to be able build up my knowledge base, and usually for free, thanks to NTHC’s vast network of sponsors. Last year, I was funded by the World Health Organization’s Asia eHealth Information Network (AeHIN) to attend a course on IT governance and management; the second certification level of which AeHIN also sponsored, this first week of December held in Thailand. The month before, I also attended a special course on technology marketing as a delegate of the Philippines in Seoul, sponsored by the APEC Technology Commercialization Training Center (APEC TCTC).

It is one thing to manage a commonplace business, such as a restaurant or a call center, and another thing to manage a research and development (R&D) organization, much more a technology-intensive one. Over the course of three years, I have found that managing R&D is tricky, to say the least; mostly because of the nature of R&D – it is difficult to tell whether timelines will be met, or deliverables will be as expected. Managing government-funded R&D also magnifies the difficulty; and, most times if not all, the bureaucracy that come with such funding sources is the hardest hurdle for us. It is not unusual for us to continue working to meet timelines despite funds being unavailable – to the point that it is difficult to tell, sometimes, if we are employees or volunteers. This translates, of course, to high employee turnover, multiple transition periods, which lead to delays in development, and the cycle goes on. What I have realized in my 3-year stay, although regrettably, is that if you are not aligned your organization’s higher purpose – in NTHC’s case is to serve the underserved – you will not bother to see the projects through. But as they say in UP, kung hindi tayo, sino?

These challenges largely influenced my decision to take a graduate program on technology management. And after seeing the Technology Management Center’s curriculum – which includes courses on R&D management, marketing, financial management, intellectual property management, even information security management, and more – my mind was more than made up. The relevance of TMC’s courses for my role in NTHC is undeniable. Equipped with more knowledge of how R&D works, how intellectual property shapes technologies, how marketing influences adoption, among others, I have improved my skills to provide guidance to the NTHC Director and the project managers on how to operate more effectively and efficiently – which is, basically, the bottom line of my role in the organization.

Technology for a Higher PurposeBy Roxanne Llamzon


To encourage synergy and sharing of resources, BAR strengthens its linkages with agriculture and fisheries R&D institutions from other countries. These collaborations serve as venue to help improve the lives of farmers and fishers. The Project Evaluation Officer coordinates and represent the conduct of various collaborative activities including conferences, trainings, workshops, and consultative meetings. Among the partner agencies of the bureau includes (but not limited to): Asian Food and Agriculture Initiative (AFACI), the WorldFish Centre, Southeast Asian Regional Center for Graduate Study and Research in Agriculture (SEAMO-SEARCA), Bioversity International, International Crops Research Institute for Semi-Arid Tropics (ICRISAT).

The Bureau of Agricultural Research (BAR) is one of the staff bureaus of the Department of Agriculture (DA) which was established to lead and coordinate the national agriculture and fisheries research and development (R&D) in the country. BAR is committed to consolidate, strengthen, and develop the agriculture and fisheries R&D system for the purpose of improving its effectiveness and efficiency by ensuring customer satisfaction and continuous improvement through work excellence, teamwork and networking, accountability and innovation.

Vision

“A better life for Filipinos through excellence in agriculture and fisheries research and development”

Mission

To attain food security and reduce poverty through technology-based agriculture and fisheries sector

Mandate

The Bureau of Agricultural Research (BAR) was created by virtue of Executive Order 116 signed in 1987 by then President Corazon C. Aquino. Under this EO, the government addressed the lack of coordination and integration of agriculture research and development among the existing bureaus, councils, and agencies by creating BAR under the Research, Training, and Extension Group.

BAR’s specific mandate to coordinate agricultural research was affirmed by EO 292, otherwise known as the Administrative Code of 1987. BAR’s specific mandate is:

“…to ensure that all agricultural research is coordinated and undertaken for maximum utility to agriculture. It shall tap farmers, farmer organizations, and research institutions, especially the State Colleges and Universities, in the conduct of research for the use of the Ministry and its clientele, particularly the farmers/fishermen and other rural workerst.”In 1997, Republic Act 8435, a law also known asthe Agriculture and Fisheries Modernization Act (AFMA), was enacted. This law, together with Executive Orders 127 & 338 affirmed the leading role of BAR in coordinating and managing agriculture and fisheries research and development (R&D).

“Further expanded and strengthened the mandate of BAR by providing leadership in enhancing, consolidating and unifying the national and regional agriculture and fisheries research and development programs of the National Research and Development System in Agriculture and Fisheries (NaRDSAF)”

BAR has been formulating and introducing innovative strategies and approaches in order to disseminate the R&D interventions and success stories of how various farming and fishing technologies were made available for the adoption to improve production and income. The Project Evaluation Officer under the Project Monitoring and Evaluation Division spearheads the conduct of regular meetings with R&D partners. These meetings serve as a feedback mechanism and evaluation on the various programs and activities organized by the bureau.

Inside DA BAR

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Marnelie Gadong is continuing MTM Student and a Project Evaluation Officer for the Bureau of Agricultural Research to the next level. She chose to invest in a graduate degree that promises to endow technologists and researchers with appropriate management skills that may widen their viewpoints in terms of the technology and its context in an R&D institution like Bureau of Agricultural Research, its clients, and its oversight. A promise that the program on Master in Technology Management offers.

Through her participation in the MTM Program, she had the opportunity to learn new tools and strategies. Actual visits to high technology firms, and conduct of interviews to technocrats, entrepreneurs, and technopreneurs allowed her for outside the classroom experience. Although she has yet to complete the program, she chose to start utilizing her learnings to contribute substantially to the bureau towards the improvement of its monitoring and evaluation processes.

“DABAR chief believes that investing in a highly capable workforce enhances the bureau’s core competence which is the efficient and effective implementation and management of the R&D programs and activities in agriculture and fisheries”

inside da bar|24


ABS-CBN’s Digital TV Migration:

“Technology dictated all those strategies … because as new tech came out and we need to think of new ways to use this technology. We are not just buying technology for technology’s sake.”

-Raul Bulaong (Chief Technology Officer, ABS-CBN)

ABS-CBN, the country’s leading broadcasting company, recently entered the digital TV age with the unveiling of the ABS-CBN TV Plus last February 2015. This unique device enables the reception of digital TV signals and increases the number of channels received from ABS-CBN. The launch of this device is just one of the many changes that are happening in the Philippine broadcasting industry. The bigger picture is that—through this device—the Philippines now enters the digital TV age, a period in broadcasting history characterized by crisper images, more channels, more programs, and more interactivity compared with analog TV, as well as a television landscape that will completely change the way we watch TV. Shifting to digital TV is not just a local phenomenon, but a worldwide development brought about by the rapid advances in technology. This shift adds another milestone in ABS-CBN’s long list of many firsts in the broadcasting industry. It is a testament to the company’s unwavering commitment in delivering the latest broadcast technologies to its millions of viewers.

Being the first in many broadcast innovations has always been in the DNA of ABS-CBN, and they don’t want to miss out on digital TV. In fact, they were the first to do color, microwave, and satellite broadcasts, among other firsts. At the forefront of this massive undertaking is a well-crafted strategic plan that started 15 years ago. Migrating to this new broadcast technology was by no means an easy task; it involved years of strategic planning, including forecasting, market analysis, risk analysis, and technology planning, among others. This article gives an overview of how ABS-CBN planned and implemented a major innovation in broadcasting, told through the eyes of their Chief Technology Officer, Mr. Raul Bulaong, who the main executive in charge of this huge endeavor. The interview was conducted in October 2014, four months before the launch of the Digital TV Plus. The author was lucky enough to be given a sneak peek on how strategic planning was implemented for this massive endeavor.

Strategic Planning of a Broadcasting Innovation

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photo from: http://www.taragis.com/2015/02/list-abs-cbn-tvplus-coverage-area-signal-coverage-ng-mahiwagang-black-box


CAPITALIZING ON THE TECHNOLOGICAL INNOVATION IN BROADCASTING

Analog TV in the Philippines, which was initiated by ABS-CBN, has not changed since it first went on air in 1953. Since its first broadcast, analog TV have been utilizing the National Television System Committee (NTSC) standard for analog TV broadcast. With the entry of digital TV, the NTSC standard is replaced by the Advanced Television System Committee (ATSC) standard, which is the technical standard that defines digital TV for terrestrial TV stations. Figures below show that the whole 6 Mhz bandwidth is occupied by a single television station in analog TV, whereas the same bandwidth can be occupied by multiple channels in the new ATSC standard. This new standard allows as many as six multiple channels, but only four standard-definition television channels or two high-definition channels are usually used. This increased number of channels in digital TV is achieved through a data compression process, namely, the MPEG-2 data compression standard, in which areas of the screen that have not changed since the previous frame are not transmitted. For Mr. Bulaong, the capability of producing as many as seven channels in the same 6 MHz bandwidth is a perfect example of efficiency in the use of frequency. “There is always a shortage in frequency. … It’s a limited resource, … so everyone is struggling to figure out better way[s] to use the available frequency to fit as many [channels],” he stressed.

ABS-CBN’s decision to go digital was openly welcomed despite the massive capitalization it required. For ABS-CBN, digital TV provides a solution to their poor signal quality as well as an opportunity to capture a bigger audience share. According to Mr. Bulaong, their poor signal quality is due to them being the first broadcast station, as such, they were assigned with a VHF range that is much lower than what other broadcast stations are using today. Initially, being the first station on the dial as a result of having the lowest frequency was their advantage over the other stations; however, as soon as buildings and other structures started rising, it became a disadvantage for them. He emphasized that this disadvantage is the reason why “ABS-CBN is the first to go into that market as far as digital is concerned. … We are [sic] on air five years ago.”

Aside from the improved quality of signal, another important improvement in digital TV that Mr. Bulaong pointed out is the efficient use of bandwidth. He stated that with the 6 Mhz bandwidth, which is the range allocated for analog TV, only one channel can be carried because of the inefficient bandwidth utilization in analog TV. This inefficiency is solved with digital TV due to its technological efficiency: it allows as many as seven channels to fit in the same bandwidth, thus nothing is wasted. A scarce resource like bandwidth can now be utilized much more efficiently.

To be able to receive a digital TV broadcast, the user is required to purchase a digital box. The digital box serves as a translator that converts all the digital signals transmitted by ABS-CBN back to analog so that the user’s

local analog TV sets can display these signals correctly. According to Mr. Bulaong, “the same physics apply. How it is split up at two ends in the input and output will be … the only difference.”

digital tv migration|26

photo from: Chang, Soo-Young. Spectra of TV Channels. IEEE 802.22-06/0032r0. Feb. 2006.


ANALYZING AND CAPTURING THE MARKET WITH THE RIGHT TECHNOLOGY

STRATEGIC TECHNOLOGY PLANNING OF A BROADCASTING INNOVATION

Planning the migration strategy was only secondary according to Mr. Bulaong. Before the planning was conducted, they first assessed the market. Market assessment was an important first step because the findings that they gathered became the bases of their decisions for the planning stages. The most important finding they were able to gather was that 99% of households in the Philippines are still using analog TVs. Moreover, these households are not ready to jump into using new technologies that initially require shelling out a big amount of money. As such, switching to a full high-definition digital TV that only has two channels but has the best picture will be useless because no one will be able to watch it.

At present, Mr. Bulaong stated that analog TV, with its single-channel offering, is fit for a mass-based market—reaching as many mass-based audience as possible is the ideal approach. However, he admits that eventually, the market will be divided and fragmented into niche markets as an effect of technology.

As early as 2000, ABS-CBN already knew that digital TV will soon enter the Philippines: “Planning for digital TV started even way before 2000. A lot of executive time [was] devoted. … We worked on that a lot. A lot of executive time was spent just to come out with those decisions.” Based on their finding that 99% of Philippine households are not digital TV ready and the possibility of a strong resistance in buying new digital TVs, ABS-CBN decided to adopt the multichannel, standard-definition ISDB-T Japanese standard, which is much more appropriate for the local market conditions.

Technically, ABS-CBN’s digital TV migration followed a migration path similar to those implemented by IT companies. The entire migration was implemented in the following order: assessment, planning, deployment, testing, and migration. No definite time frame was detailed, but the start of the assessment and planning period was around 2000, and the start of the testing period was in 2007. As stated by Mr. Bulaong, “what happened insideis a natural migration because every three years we replace our camera[s], … so there is anatural progression. … As your equipment fail, you start replacing them. … You replace them with new ones. … You have to have a transition plan.”

He further adds that “the market will change. … When digital TV comes, there are [sic] seven channels. It will be the niche markets that will be targeted by digital TV.” In contrast to analog TV, which only has a single market, that is, the mass market, the new digital TV channels offered by ABS-CBN cater to a wide variety of audiences across various demographic categories. ABS-CBN’s strategy is to divide the mass market and to create new markets for teens, kids, moms, dads, and the entire family. Based on these niches, ABS-CBN added a movie channel (Cine Mo!), a cartoon channel (Yey!), an educational channel (Knowledge Channel), a news channel (DZMM Teleradyo), and a music channel (Myx 2). The creation of these new channels confirms the niche marketing strategy employed by ABS-CBN for digital TV. Using these new niche markets, they will create new business models for increased revenues—this model is the new multichannel platform that ABS-CBN wants to develop.t

The migration started with an upgrade to digital equipment; first the production equipment, then the post-production equipment. Then all the equipment were integrated in a centralized server-based system where all of the data go into and is redistributed from. In addition, outside broadcast equipment such as transmitters were placed in key strategic locations within Metro Manila. As these technical and engineering changes were being implemented, digital TV content was simultaneously being created. During this process, analog broadcast services were not disrupted because both analog and digital broadcast transmissions can work side by side. System testing began in 2007. During this stage, most of the equipment that should be digital were already converted. Also, most of the digital transmitters and receivers that will be used for testing were already in place. For testing, a few hundred households were given digital boxes so that they can receive digital broadcast signals. During this stage, digital standard-definition channels were already broadcasting digital content.

Digital TV is a new development that will forever change the Philippine television landscape. The technical migration of ABS-CBN from analog to digital broadcast is a

Regarding the digital TV business, Mr. Bulaong said that, compared with analog TV, digital TV just created more opportunities: “The business has not changed! It just opens up new opportunities in the business. … If you think about it, the major change is you come from one channel per frequency to seven channels per frequency, so there’s new content.” For him, the business is still about advertising, but he also gave an indication that with this new platform, viewers will see other forms of advertising in the form of program guides, similar to what we see in cable TV. Aside from the other forms of advertising that may result from this new platform, with the integration of the USB broadband stick, audiences can further expect new forms of advertising from ABS-CBN. The convergence brought about by the digital box combined with a USB broadband connection offers a lot of possibilities.

massive project that took the company years of planning and implementation. Instead of looking at the huge capital expenditure that the migration required, ABS-CBN focused on the opportunity to reach more markets and broaden their audience. They also viewed the migration as a solution to the imperfections in analog TV, particularly, the poor signal quality of ABS-CBN due to the limitations of analog technology. Currently, ABS-CBN’s digital TV Plus strategy is a huge success. All of these changes did not happen overnight. Their migration is a perfect example of an effective and efficient strategic planning that involved plenty of short-term and long-term strategic plans, which consequently delivered the right product to the right market at the right time.

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TECHNOLOGY MANAGEMENT CENTERUNIVERSITY OF THE PHILIPPINES DILIMAN

www.tmc.upd.edu.ph

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