An Analysis of the Current State of Philippine ICT

1st Student Developers DayGDG Zamboanga

04 September 2013

Network Readiness Index (NRI)

The Philippines has been declining steadily in NRI ranking over the years, as indicated in the Global Information Technology Report

(GITR) by the World Economic Forum. From 58th place in 2002, it is down to 86th out of

144 in 2013.

Overview

● ICT in the Philippines (e-Governance) - A Little Bit of History

● 2013 NRI

● ICT‘s Importance in Philippine Society

● Case Comparison: Philippines vs Malaysia, Singapore

● Recommendations for Improving Philippine ICT

● Conclusion

ICT in the Philippines (e-Governance) - A Little Bit of

HistoryRamos - Current Administration

Ramos (1992-1998): National IT Plan, NITC, IT21, Internet for Gov’t Agencies

Estrada (1998-2001): eCommerce Act, Gov’t IS Plan, ITECC

Overview

Arroyo (2001-2010): strengthened ITECC, e-Govt fund, CICT, push for DICT, National Broadband Network (NBN)

Aquino (2010-present)

Ramos Administration: Policies

● 1994: National Information Technology Plan 2000 (NITP2000)

● 1994 & 1998: Executive Order 190 s. 1994 (amended by EO 469 in 1998) established the National Information Technology Council (NITC) ○ direct policy body in ICT matters in the country

○ mandated the designation of Information Systems Planners in each government agency to take charge of its IT strategic plan formulation

Ramos Administration: Policies

● 1997: Government-approved IT21 was formulated ○ country’s action agenda for year 2000 and beyond○ promote best practices in ICT governance○ encouraged outsourcing of government ICT projects

to promote ICT growth● 1997: Administrative Order 332: Directive for

Government Agencies’ Internet Connectivity○ aims to connect for greater efficiency in

communication and data interchange■ government■ academe ■ industry-business sectors

Ramos Administration: Policies

○ stimulate the growth of the Philippine web – thereby strengthening the role of telecommunications systems, network and communications services, content management and applications to provide better services

○ meant to develop the Philippine Information Infrastructure (PII) framework

Estrada Administration: Policies

● 2000: The Electronic Commerce Act

○ defines the government’s policies on e-commerce and electronic transactions

○ recognize electronic evidence as admissible in court

● 2000: Government Information Systems Plan (GISP) 2000 framework (Executive Order 265 s. 2000)

○ computerize key frontline and common government services and operation

Estrada Administration: Policies

● created Information Technology and eCommerce Council (ITECC)

○ partnership between public and private sectors for IT and eCommerce matters

■ ISP.COM strategy

Arroyo Administration: Policies

● placed ICT as a priority in its agenda

○ General Appropriations Act of 2004-2010

establishes an e-Government fund as source of

funding for mission-critical, high-impact, and cross-agency government ICT projects

● strengthened Information Technology and eCommerce Council (ITECC) which was created by Estrada

Arroyo Administration: Policies

● 2004: Commission on ICT (CICT), a de facto DICT ○ CICT formulated Philippine IT Roadmap

■ fell short compared to Malaysia’s Wawasan 2020 and Singapore’s iN2015

● (shortly after roadmap was formulated, National Broadband Network (NBN) scandal erupted, consumed greater part of public attention)

Aquino Administration

● abolished CICT, instead moved IT directives under DOST-ICTO (Information and Communications Technology Office)

● minimized red-tapes for starting a business, tax holidays for business operating in PEZA

ICTO’s Current Projects

● iGovPhil

● Digital TV Migration

● TV White Space Initiative

● Information Systems Strategic Plans (ISSP) as a requirement for gov’t agencies

2013 NRI

● 86th position overall out of 144The Bad:○ Environment Sub-index: 100/144

■ up by 11 points, very last among ASEAN countries

○ red-tape, among the worst worldwide in other similar indicators

The Good:

○ ICT Impacts: 68/144 (up by 16 points from last year)

○ Role of ICT in creating new products and services: 43/144

○ Organization Models: 33/144

Philippines: Global IT Report 2013

ICT’s Importance in Philippine Society

ICT’s Importance in Philippine Society

● archipelagic country - improve connectivity

● improve productivity and efficiency○ different sectors

■ government and governance

■ education

■ economy

■ employment

■ industries

■ small businesses

ICT’s Importance in Philippine Society

Country’s Economic Strengths● Agribusiness

● Tourism

● Globally competitive industrial and service center

● Information and communication technology and knowledge economy

The Need to Develop ICT for Agriculture

● Philippine economy is largely agricultural○ 12% of GDP, 33% of workforce

● Country is world’s largest producer of coconuts and pineapples, and one of the largest producers of rice and sugar

The Need to Develop ICT for Agriculture

● ICT can help increase efficiency in the following phases:○ crop cultivation

○ water management

○ fertilizer application

○ pest management

○ harvesting, post-harvesting

● Pinoy Rice Knowledge Bank - http://openacademy.ph/

The Need to Boost Country’s Tourism through ICT

● Tourism Sector - no other sector spreads wealth and jobs across poor countries in the same way as this sector

● http://itsmorefuninthephilippines.com/

● 4M tourists in 2012

The Need for Stronger Support to Accelerate IT-BPO Growth

● IT industry can grow up to US$25 billion in revenue by 2016 if public-private partnership with the government is strengthen intensively, and improve the both the quantity and quality of the people working in the industry

The Need for Stronger Support to Accelerate IT-BPO Growth

● Driving standards and accreditation to ensure a better match between the skills of graduates with the requirements of industry

● More aggressive internal marketing of the industry to the local talent pool

● Strengthening awareness of the Philippine value proposition in IT, voice and non-voice BPO services in existing and new markets

The Need for Stronger Support to Accelerate IT-BPO Growth

● Advocating high impact public policies

● Strengthening our Public-Private Partnership with government to fund key programs such as study-to-work training programs

Case Comparison: Philippines versus Malaysia, Singapore

Case Comparison: Philippines versus Malaysia, Singapore

Philippines● 83rd in Gov’t IT Usage

● 1998: NITP

● Medium Term Philippine Development Plan for 1999-2004 (“MTPDP”)

○ creation and strengthening of the National Information Technology Council;

○ creation of the Electronic Commerce Promotion Council

○ establishment of RPWEB, which will later evolve into the Philippine Information Infrastructure

● 2000: 2nd among Asian countries in terms of largest number of training facilities for computer programming and computer-related courses

Malaysia- 8th in Gov’t IT Usage- 1990-2020: Vision 2020- 1996: MSC Malaysia

Singapore- 1st in Gov’t IT Usage- 2005: iN2015

Philippines’ IT21

By the turn of the 21st century, the Philippines will have laid the infrastructure for every business, every agency of

government, every school, and every home in the Philippines to have access to information technology.

By the year 2005, IT use will be pervasive in daily life. Philippine companies will be producing competitive IT

products for world markets. Within the first decade of the 21st Century, the Philippines will be a Knowledge

Center in the Asia-Pacific: the leader in IT education, in IT-assisted training, and in the application of information

and knowledge to business, professional services, and the arts.

Singapore Leading the Way in ASEAN

● ultra-high speed, pervasive, intelligent, and trusted ICT structure

● sectorial transformation of key government sectors, government, and society

● ICT-savvy workforce and globally competitive ICT manpower

Singapore Leading the Way in ASEAN

● strong start-up community for new ICT companies to flourish

● giving incentives for research and development in ICT sector

● providing funds for course and examination fees – especially in emerging technologies such as business analytics, cloud computing, and green ICT – for interested ICT professionals

Malaysia Trails Second in ASEAN

Previously● 4TFA

○ Wireless Sensor Networks○ Predictive Analytics○ 3D Internt

Now● promoting innovation through identifying

obstables and challenges to innovation

Philippines is Halfway There

● Government and Governance

● Internet access for all

● Digital Literacy

● ICT usage across business and industries

Recommendations for Improving Philippine ICT

Recommendations for Improving Philippine ICT

● strong cabinet-level leadership separate from the Department of Science and Technology (DOST)

● strong public-private partnerships must be established to execute initiatives for improvement

● a strong ICT R&D Team in the government with private sector partnership is a must

Short to Medium-Term Goals

● Improved Social Impact

○ intensifying public awareness of the benefits of ICT

and public-private partnerships, with people as direct beneficiaries■ Massive ICT Usage Promotion and Marketing across the Country

■ ICT Usage Based on Economic Strengths

■ ICT Usage Based on Community Needs

● Philippine Community e-Center Portal (PhilCeCNet) for Community e-Centers

Short to Medium-Term Goals

● Infrastructure and Affordability○ 73rd in mobile cellular tariffs

○ 95th in fixed broadband Internet tariffs – not only one of the most expensive in the world, but also one of the most expensive in ASEAN region

○ Competitive rates are expected to get better over the years, especially if new entrants are encouraged by the government.

■ mobile broadband, particularly in rural and no-service areas

■ accelerate the roll-out of broadband to the entire country

(ICTO started the TV White Space Initiative that utilizes unused TV channels for data communication.)

Short to Medium-Term Goals

● Skills Development○ Improve Quality of Math and Science Education

○ Local and International Training for Deserving Professionals

○ Government-Led Research and Development in the Following Areas:■ Cloud Computing

■ Data Management and Analytics

■ Mobile Devices and Social Networking

Long-Term Goal

● a strong ICT R&D Team in the government with private sector partnership is a must

Other Rooms for Improvement

Education

● Internet access in schools

● Quality of math and science education

● Secondary education gross enrollment rate, %

● Tertiary education gross enrollment rate, %

● Computer Usage from Elementary level

● Promote Usage of Free and Open Source Software

Other Rooms for Improvement

Enhanced ICT Environment● Political and Regulatory Environment

○ Effectiveness of law-making bodies

○ Judicial independence

○ Intellectual property protection

○ Efficiency of legal system in settling disputes

○ Efficiency of legal system in challenging regulations

○ Number of days to enforce a contract

Other Rooms for Improvement

Enhanced ICT Environment● Business and Innovation

○ Electricity production, kWh/capita

○ Total tax rate, % profits

○ Number of days to start a business

○ Number of procedures to start a business

○ Government procurement of advanced technologies

○ Capacity for innovation

○ PCT patents, applications/million pop.

○ ICT PCT patents, applications/million pop.

○ Knowledge-intensive jobs, % workforce

Conclusion

Conclusion

● ICT plays a significant role for a country’s growth and productivity.

● Through productivity, economic growth

will follow suit.

● ICT must be utilized to promote inclusive growth and sustainability – everyone in the country must experience the growth.

Resources1. Romulo, R. Philippine ICT after GMA. The Philippine Star, 29 May 2009. http://www.philstar.com/business/471917/philippine-ict-after-gma. 11 June 2013.

2. The Philippine Digital Strategy Transformation 2.0: Digitally Empowered Nation. Philippine Commission on Information and Communications Technology, 2011. http://www.ncc.gov.ph/files/PDS.pdf. 11 June 2013.

3. ICT Strategic Review 2012/13. National IT Council at Ministry of Science, Technology, and Innovation Malaysia and PIKOM, The National ICT Association of Malaysia, 2008. http://www.pikom.org.my/cms/ICT_Strategic_Review/ICT_Strategic_Review_2012-2013.pdf. 11 June 2013.

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6. Philippines Tails ASEAN Neighbors, Rwanda in ‘network readiness’ index. Interaksyon.com, 2012. http://www.interaksyon.com/business/28717/philippines-tails-asean-neighbors-rwanda-in-network-readiness-index. 24 June 2013.

7. 2011-2016 Philippine Development Plan. NEDA, 2011. http://devplan.neda.gov.ph/index.php. 25 June 2013.

8. BROADBAND: A PLATFORM FOR PROGRESS. UNESCO, 2010. http://www.unesco.org/new/fileadmin/MULTIMEDIA/HQ/CI/CI/pdf/broadband_commission_report_overview.pdf. 25 June 2013.

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11. Philippines. Wikipedia, date unknown. http://en.wikipedia.org/wiki/Philippines. 25 June 2013.

12. The Economic Impact of Broadband in the Philippines. May 2012, ITU BroadbandCommission. http://www.itu.int/ITU-D/treg/broadband/BB_MDG_Philippines_BBCOM.pdf. 26 June 2013.

13. e-Government in the Philippines: Benchmarking Against Global Best Practices. April 2002, Digital Philippines. http://www.unapcict.org/ecohub/resources/e-government-in-the-philippines-benchmarking-against-global-best-practices/at_download/attachment1. 28 June 2013.

Resources14. IT-BPO Road Map 2011-2016. IT and Business Process Association Philippines, 2010. http://www.bpap.org/about-us/it-bpo-road-map-2011-2016. 28 June 2013.

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16. Philippines Aims at Higher-Value Process. http://www.sunstar.com.ph/cebu/business/2013/06/05/philippines-aims-higher-value-process-285984. M. Aznar, Sun Star Cebu, 05 June 2013. 28 June 2013.

17. Super regions of the Philippines. http://en.wikipedia.org/wiki/Super_regions_of_the_Philippines. Wikipedia, date unknown. 29 June 2013.

18. ICTO Launded for TV White Space Initiative. http://icto.dost.gov.ph/index.php/news-events/current-news/101-icto-lauded-for-tv-white-space-initiative-. ICTO, 2012. 29 June 2013.

Resources19. Economy of the Philippines. http://en.wikipedia.org/wiki/Economy_of_the_Philippines. Wikipedia, date unknown. 29 June 2013.

20. ICT in Agriculture. http://en.wikipedia.org/wiki/ICT_in_agriculture. Wikipedia, date unknown. 02 July 2013.

21. Tourism: Enhancing Economic Growth in Emerging Markets. http://www.ifc.org/wps/wcm/connect/industry_ext_content/ifc_external_corporate_site/industries/manufacturing+and+services/sectors/tourism,+retail+and+property/tourism. International Finance Corporation, January 2012. 02 July 2013.

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Resources23. PIKOM ICT Strategic Review 2012-13. http://www.enterpriseitnews.com.my/coverage/item/1693-pikom-ict-strategic-review-2012-2013-–-part-1-innovation-for-digital-opportunities.html. Enterprise IT News, date unknown. 02 July 2013.

24. IT Action Agenda for the 21stCentury. http://www.neda.gov.ph/Subweb/IT21/default.htm. National Information Technology Council, October 1997. 02 July 2013.

About The Speaker

● Senior Java Developer, dJava Factory (KL)

● Master in Information Systems Student, University of the Philippines Open University

● Evangelist and Python Developer, The Usbong Project (http://www.usbong.ph)

● Admin, Big Data Philippines (Facebook, Google+, Linked In) (https://www.facebook.com/groups/169641346529976/)

Diana Jayne Gonzales

Questions?

● http://www.linkedin.com/in/godiane

● http://gplus.to/godiane

I hope this has been informative.

Enjoy the rest of the day! :)