Be Innovative!!!

I was Googling for an image to put on this page when I came across the image above with a very interesting quote:

"Dumating ang mga Pilipino, pana at sibat lang ang sandata."

In the face of global competition, based on how far ahead in terms of technology and resources other players are, Filipino technopreneurs could be said to just be carrying pana at sibat. Should we just retreat? The problem is the fight is not on foreign soil, it is already at our own backyard, in our sidewalks, in our malls. It's either we take a stand now or risk waking up one day with local industries almost dead.

But how do we fight? The strength of small groups is agility and creativity. We must look for gaps and weaknesses and move quickly. Attacking the enemy at directions they wouldn't expect. Using strategies they never thought of.

Traditional rules will give traditional results. We cannot compete in the game that ‘Big’ players play with the same rules they use. We must play “A Different Game”.

Taking Advantage of Under-utilized Resources

Most local companies complain that it is difficult to do business in the Philippines due to the scarce production capability available locally. That is not true if you look at problems from a different point of view.

At i-ARC (http://i-arcsys.blogspot.com), we were able to design an automated barrier for use in controlling access to parking lots and toll stations at expressways. Like many other Filipino inventors, the next problem we faced was manufacturing. We have a product but how do we mass produce it? The traditional approach was to setup a factory but that would entail large capital investments which we don't have. So we tried finding an alternative solution.

We have observed that many businesses in Valenzuela City (where I use to live) are service companies such as machine shops and automotive repair shops. Because of the passive nature of their business (they usually just wait for customers to approach them), they usually do not perform at peak capacity. Most of them only have business fifty percent of the time; others are only busy twenty percent of the time. The unused capacity is already accepted as industry norms and is factored in as part of the cost of doing business and written-off as excess capacity. We have considered organizing a network of machine shops in Valenzuela and we saw it's potential as a massive manufacturing force.

Another interesting production model popular in the Philippines that we considered is the cottage-industry model. This is commonly applied in the handicraft business. Just as there is a lot of unused capacity in micro-enterprises, there is also untapped production potential within the common household – housewives, elderly, small children and the unemployed workforce.

Handicraft manufacturers give free training to these people on how to make a particular item. The manufacturers then deliver the raw materials to their homes at the start of the week and pick up the finish goods at the end of the week. Payment is on a per finished item basis and there are weekly production quotas.

Given the proper training and equipment, these housewives manufacturing handicrafts can be made to assemble circuit boards. They can do it on their spare time after house chores or when the children are sleeping.

Technology industries in the Philippines have yet to tap this production system. However, in China, unofficial sources narrate of villages that produce fake Sony video cameras. Villagers were given basic training in electronics such as components identification and soldering. Components are shipped in from Taiwan, assembled there and then brought to appliance stores all over the world. The amazing thing about this system is that the quality of their equipment is comparable to those made by Sony of Japan. This story may or may not be true. However, if you think about it, a high-tech cottage industry is indeed possible.

Linked In

If you have other innovative ideas that could help the Technopreneurial Revolution, please contact Rodec through LinkedIn, http://www.linkedin.com/in/rodec. Let's LINKED IN..