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SMEs in the digital world: reboot or robots?

With the dizzying speed of digital disruption occurring in the global business environment, small and medium enterprises (SMEs) are increasingly realizing the urgent need to explore digitalization. Incorporating digitalization in their business will help expand and create new sources of value for their enterprises to remain competitive and relevant to their markets.

In my recent article, I wrote about the findings of a recent EY study, Redesigning for the digital economy: A study of SMEs in Southeast Asia. In the report, almost 370 SME executives expressed as their top priorities leveraging digital technology and prioritizing the improvement of their customer service. However, to properly implement digitally-enabled operations and meet the consumer’s increasing demand for personalization and convenience, businesses will need the support of a modernized workforce to actualize their strategies.

The function of modernized talent is critical to a company’s digital transformation. This increasing demand for appropriate digital services gives rise to new digital roles, such as digital marketers, data scientists, and automation engineers. At the same time, current employees will, by necessity, be disrupted by digital solutions that replace repetitive tasks, such as intelligent automation technologies and robotics process automation (RPA). While the use of intelligent and automated platforms to enhance efficiency will require the traditional workforce to adapt, these new and enhanced roles present the opportunity for companies to reboot their people programs and help employees focus on strategic, more value-added tasks.

THE CHALLENGES OF WORKFORCE ADAPTATION
The same study on SMEs had identified two main constraints that enterprises face in adapting their workforce to enhanced, digital roles. First is capacity and second is resources. SMEs specifically lack access to digital talent and face challenges in upgrading the skills of their employees, which understandably creates a gap between smaller enterprises and their multinational counterparts.

Many SMEs also have the disadvantage of looking less attractive to potential candidates with the right digital skills compared to larger companies with more established names and deeper pockets. In addition, they face the struggle of prioritizing effective development programs to upskill their current workforce in light of other competing business priorities.

REDESIGNING THE MODERNIZED WORKFORCE
Challenges aside, SMEs will need to go beyond identifying the roles and skills required to achieve their digital transformation. They are expected to also dedicate employees to specific digital roles instead of merely assigning these roles to existing employees as secondary positions. For example, the role of social media manager can often be a full-time job, yet some companies simply assign this task to existing sales or marketing personnel who may not have the experience and exposure to maximize and manage social media assets. SMEs will have to consciously take active steps to evolve their current workforce into one that can maximize digital investment insights and productivity gains.

One means to achieve this is by developing a clear view of critical digital roles, functions and skills instead of falling into the trap of blindly following hiring trends. SMEs need to assess and identify what roles are specifically designed to support their own digital transformation strategy. These roles and skills should then be adapted to form the career pathways of an organization, allowing management to conduct effective strategic workforce planning for the company’s future needs.

A clear overview of their talent needs also allows management to further maximize their limited pool of human resources by deploying them into strategic roles. Furthermore, this allows management to address capability gaps through targeted employee skill development initiatives and talent attraction.

For companies to effectively redesign job functions and business processes, they must leverage insights from the analysis of people data to support changes and decisions. SMEs also need to consider how to best incorporate digital solutions into any redesigned roles to improve efficiency as well as employee and customer satisfaction. This alleviates the pressure on talent shortages by expanding the workforce’s capacity to take on enhanced roles.

PRIORITIZING THE ROLE OF DIGITAL
Over and beyond considering technological or digital solutions, what is more essential is for SMEs to adopt a digital mindset and develop a digital work culture. This mindset and culture will effectively develop agility and further drive innovation. Attaining this end-goals will entail an assessment and the transformation of traditional policies, processes and platforms to better adopt and support digital thinking.

As an organization undergoes digital transformation, SMEs will benefit from engaging their employees by working together with them to minimize resistance and drive the necessary behaviors to integrate digitalization into the company. They can achieve this through effective change management and positive reinforcement through rewards linked to performance and employee recognition, both of which can go a long way in nurturing a digital work culture.

The leveraging of transformative technologies should serve as an enabler for SMEs instead of a complete replacement of their human workforce. Disruptive forces will continue to challenge SMEs in the digital age, making it increasingly apparent that digitalization cannot be relegated to a one-off project — it is by necessity a continuous and evolving journey with great impact on the entire workforce.

SMEs that prioritize digital roles and fully embrace a digital mindset will, in all likelihood, achieve a competitive edge that leads to success in the digital economy. The question now for individual SMEs is, is it better for you to reboot your digital people strategy or invest in robotic processes? Or find a solution that combines both?

This article is for general information only and is not a substitute for professional advice where the facts and circumstances warrant. The views and opinion expressed above are those of the author and do not necessarily represent the views of SGV & Co.

 

Wilson P. Tan is the Vice Chairman and Deputy Managing Partner of SGV & Co.

VP risks losing post as drug czar, says Palace

VICE PRESIDENT Maria Leonor G. Robredo risks losing her position as President Rodrigo R. Duterte’s drug czar if she reveals confidential information to foreign entities, the presidential palace said yesterday.

“The president stated that disclosing classified information of the Philippine government to foreign individuals and entities will cause the removal of the vice president from her current post,” presidential spokesman Salvador S. Panelo said in a statement.

Ms. Robredo, the opposition leader whom Mr. Duterte had put in charge of his deadly war on drugs, met with United States Embassy officials last week to discuss how the US could help the country’s anti-illegal drug campaign.

Officials from the International Narcotics and Law Enforcement Affairs of the State Department, Drug Enforcement Administration, Federal Bureau of Investigation and US Agency for International Development gave a “comprehensive briefing,” Ms. Robredo said in a statement.

Philippine police have said they have killed about 6,000 people in illegal drug raids, many of them resisting arrest. Some local nongovernmental organizations and the national Commission on Human Rights have placed the death toll at more than 27,000.

The opposition leader this month said she had agreed to head the Duterte administration’s anti-illegal drug campaign, if only to stop the killings. She accepted the post against the advice of many of her party mates, who said the appointment might be a trap.

Meanwhile, Justice Secretary Menardo I. Guevarra said Ms. Robredo could lose her post as drug czar anytime the president loses trust in her.

“As the appointing authority, the president may remove any appointee at his pleasure, more especially if trust and confidence, which is the principal basis of any appointment, is lost,” he said in a mobile-phone message.

Ms. Robredo has vowed to enforce the state’s anti-illegal drug campaign within the bounds of the law. She said she would treat the drug problem not only as a crime, but also as a health issue.

The vice president has repeatedly cited the need to re-assess the government strategy against illegal drugs given the rising number of drug dependents.

“Needless to say, disclosing sensitive and classified information to unauthorized persons is betrayal of trust, and is therefore a proper and reasonable basis for revocation of one’s appointment,” the justice chief said.

Mr. Panelo on Sunday said Ms. Robredo would lose her job if she insists on getting access to all documents about the drug war.

Since accepting the post, Ms. Robredo has met with the US Embassy and United Nations officials to discuss the anti-illegal drug campaign, which majority of Filipinos support even if it has drawn international criticism.

Ms. Robredo has also asked for the list of drug targets from the Philippine Drug Enforcement Agency (PDEA) but was denied access.

Mr. Panelo said the president has the power to ensure Ms. Robredo acts according to law.

“Not only is it within the president’s discretion, but it is his constitutional duty not only to enforce all the laws but to ensure that all his alter egos, including a co-chairperson of the Inter-Agency Committee on Anti-Illegal Drugs, are performing their respective functions within the scope and ambit of the law,” he said.

Mr. Duterte has yet to meet with her to discuss her functions, Mr. Panelo said. — Gillian M. Cortez and Vann Marlo M. Villegas

Fewer Filipinos cheery about life, economy

FEWER Filipinos expect their lives and the country’s economy to improve in the next 12 months, according to the latest poll by the Social Weather Stations (SWS).

SWS said its third-quarter poll showed a net personal optimism of +41, a point lower than in the previous quarter. The net score means 46% of Filipinos thought their personal lives would improve. Only 5% of Filipinos were pessimistic about their personal lives.

Net economic optimism also fell to +28 in September from +33, SWS said. The poll showed 41% of Filipinos thought the economy would improve in the next 12 months. Only 12% said it would worsen.

The poll also found that 36% of Filipinos said their lives had improved, while 25% said their lives worsened in the past 12 months.

SWS interviewed 1,800 adults for the poll, which had an error margin of ±2.3 points. — Gillian M. Cortez

Bill seeks marshal protection of judges

A CONGRESSMAN has filed a bill that seeks to create an office for marshal services to protect judges, according to an emailed statement from the author’s office.

Surigao del Sur Rep. Johnny T. Pimentel filed House Bill 5403, which will create the Office of Philippine Marshals under the Supreme Court, according to the statement.

The measure is in line with Chief Justice Diosdado M. Peralta’s plan to boost the protection of judges.

Improving security of judges, justices and halls of justice is part of Mr. Peralta’s 10-point agenda. He wants to create a security system patterned after the United States Marshals.

Unidentified gunmen shot and killed Tagudin, Ilocos Sur regional trial court Judge Mario Anacleto Bañez, the 31st judge killed in the line of service since 1999.

“Right now, every active judge is a sitting duck with absolutely no protection whatsoever against potential attacks,” Mr. Pimentel said in the statement.

The bill is a “very important first step” in the creation of a Judiciary Marshal Service, high court spokesman Chief Brian Keith F. Hosaka said in a mobile-phone message.

“We do hope that this initiative continues to gain traction until a law is eventually passed at the soonest time possible,” he said.

“It goes without saying that when we protect our magistrates, we also protect the rule of law. We thank our lawmakers for their prompt action on this matter,” he added.

Under the bill, the chief justice will appoint a director who will lead the marshal service. Marshals must be holders of a bachelor’s degree, at least 21 years old and not older than 35, and undergo training at the Philippine Public Safety College.

They will serve as “peace officers” and may conduct arrests, searches and seizures, and investigate and fight crimes against judges.

There are 2,561 trial judges in the country, 15 Supreme Court justices, 70 from the Court of Appeals, and nine justices from the Court of Tax Appeals, according to the statement, citing the 2019 General Appropriations Act. — Vann Marlo M. Villegas

Russians interested in Filipino language

RUSSIAN schools are looking for Filipino language programs for its citizens, Honorary Consul Armi Lopez-Garcia of the Russian Federation said.

Officials from the academic institutions will come to Manila this month to present their proposals, she said in an interview last week. They will also visit Cebu and Davao.

Ms. Garcia said more Russians are becoming more interested in Filipino given closer ties between the two countries.

President Rodrigo R. Duterte visited Russia last month and witnessed the signing of 10 business deals worth about $12.57 million. — Arjay L. Balinbin

Wider Bangsamoro coverage targeted in 2nd round of polio vaccination

HEALTH AUTHORITIES are targeting a wider coverage in Mindanao, especially in the Bangsamoro region, for the second round of the polio vaccination program on Nov. 25 to Dec. 7. The first round was conducted Oct. 14–27 covering Lanao del Sur, including Marawi City, Davao del Sur, and Davao City. Rabindra Abeyasinghe, World Health Organization (WHO) representative in the Philippines, said they are expecting more challenges in the second round, particularly in terms of reaching remote areas. “Because these areas are sometimes difficult to access,” he said in a media forum last week. He stressed, however, that they are determined to have as wide a coverage as possible. “If children are unprotected, we could possibly see a resurgence of polio. So if you want to break this transmission, we have to work to very high coverage and this can be only achieved if all of other partners join hands together,” he said. The vaccination program is being implemented by the Department of Health (DoH) with support from WHO and the United Nations Children’s Fund. Mr. Abeyasinghe added that to achieve high coverage, the local government units (LGUs) must also implement a monthly vaccination program. For the long term, LGUs need to be at the forefront of a routine immunization program. “The ultimate aim is to restore every high level of coverage in the campaign,” he said.

95% COVERAGE
Health Secretary Francisco T. Duque III also called for assistance from the Philippine Pediatric Society chapters in Mindanao. “For high coverage in Mindanao, 95% of children need to be vaccinated… In some areas in Mindanao like BARMM (Bangsamoro Autonomous Region in Muslim Mindanao)… we saw a very poor implementation of the campaign,” Mr. Duque said. Four polio cases in the country have been confirmed by the DoH, after almost two decades of being free from the disease. Three of these are in Mindanao, with the first two in the provinces of Maguindanao and Lanao del Sur, while the third was not specified where. The other was in Laguna in Luzon. — Maya M. Padillo

PAGASA warns against another ‘fake news’ on super typhoon

WEATHER BUREAU PAGASA on Sunday warned the public against social media posts indicating that the low pressure area (LPA) east of the Visayas is expected to develop into a super typhoon. “There is no truth to this. This is considered as fake news,” PAGASA Weather Specialist Benison Estareja said during the 11 a.m. update for the current typhoon, Ramon (international name: Kalamaegi). A similar post circulated on social media days before Ramon, now categorized as a tropical cyclone from a tropical storm, entered the Philippine area. Mr. Estareja appealed against sharing and “liking” such posts, which he said do not come from the government weather agency. The LPA, located 2,420 kilometers (km) east of the central islands as of Sunday morning, is being monitored by PAGASA and it is likely to strengthen into another typhoon when it enters the Philippine area by Tuesday. Based on PAGASA’s typhoon name list for the year, it will be called Sarah.

LANDFALL
Meanwhile, tropical cyclone Ramon was almost stationary over the weekend and remained over sea. It is forecasted to make landfall by Tuesday in the northeastern part of Cagayan province. As of Sunday, typhoon wind signal #1 was up in Cagayan, including Babuyan Islands, Isabela, and the northern portion of Aurora covering Dilasag, Casiguran, and Dinalungan. Mr. Estareja said the tropical cyclone is expected to be 250 km west of Dagupan City, Pangasinan by Wednesday and out of the Philippine area by Thursday. On Monday, light to moderate with occasional heavy rains are expected over Cagayan, Isabela, Apayao, Kalinga and Ilocos Norte. Light to moderate with intermittent heavy rains could be experienced over the Babuyan Islands, Abra, Ifugao, Mt. Province, Northern Aurora, and Quirino.

EVACUATION
As of noon Sunday, 98 people have moved to two evacuation centers in the Cagayan Valley Region, according to the Department of Social Welfare and Development. Regional and city/municipal response teams remain on full alert for possible flooding and landslides. Sea travel, especially for small vessels, remains “risky” in the areas under wind signal #1 as well as the seaboards of northern Luzon, and eastern part of central and southern Luzon.

Iloilo City aims for UNESCO Creative City tag under food category

ILOILO CITY is aiming to be part of the UNESCO Creative Cities Network — joining Baguio and Cebu, the only two Philippine cities in the group — through the food category. Mayor Jerry P. Treñas said the Creative City tag would be part of the campaign to boost tourism. “If we will be identified by UNESCO, for our food, I don’t know if we will also be identified by architectural, probably we get to have more people visit Iloilo,” he said in an interview last week. The mayor was scheduled to hold meetings in Manila over the weekend to gather advice and information for what he described as a new “journey” for the title. “It’s going to be long and tedious process, but this will be another feather on the cap of Iloilo City. And I think everyone is working together to make sure that we achieve our goals,” he said. Meanwhile, the city government is also looking at a branding campaign, which will be bid out. IPG Mediabrands Philippines are among those tapped to come up with a proposal. “We’re here to study and to have immersion on what Iloilo can offer on its tourism segments, we know that you have Dinagyang (Festival) and half of tourist arrivals come from Dinagyang, but… you have to make them come for the whole year to be a successful brand,” said IPG Mediabrands Philippines Chief Executive Officer Venus Peralta during a visit last Thursday. Mr. Treñas said the branding is part of efforts to complement the regional tourism sector’s campaign to make Iloilo a preferred destination for the meetings, incentives, conferences, and exhibits (MICE) segment. — Emme Rose S. Santiagudo

10 tons collected from Iligan City bridge trash nets

MORE THAN 10 tons of household trash have so far been collected at the trash nets installed under two bridges in Iligan City in June, the Department of Public Works and Highways-Northern Mindanao (DPWH-10) office reported on Saturday. About 90% of the collected garbage consists of plastic bottles, food packaging, discarded clothing, and magazines. The rest are organic materials like leaves and small pieces of old furniture. The trash net system was installed to prevent domestic garbage from reaching Iligan Bay, one of the most important fishing grounds in southern Philippines. DPWH, in a statement, said “illegal fishing and the effects of burgeoning coastal communities” have contributed to the steady decline in marine catch. “We hope to stem the tide and restore back the abundance of our local fishing grounds. We feel that by protecting Iligan Bay from domestic garbage, we are moving towards the right direction,” said OIC-District Engineer Alykhan Ali of the DPWH-Lanao del Norte 2nd District Engineering Office. The trash nets are installed underneath bridges in Barangays Tibanga and Tubod.

ICT-Davao to ink deal with Amazon, SAS Technology for training

ICT-Davao, Inc., the information and communication technology umbrella group in Davao Region, is teaming up with technology firms SAS and Amazon.com, Inc. to help “re-tool” local professionals. ICT-Davao President Samuel R. Matunog said the memorandum of understanding will be signed during the LiveX 2019 (Innovation Summit 2019 and 5th Mindanao ICT Cluster Conference) on Nov. 18 to 19 at the Marco Polo Davao. “We will be signing an agreement to train our professionals on artificial intelligence, data and analytics with some of the most respected and well-known companies in the world. We are talking with SAS Technologies, the number one analytics and business intelligence platform in the world… Hopefully with the partnership with them and we can train some of you (media) to become data analysts. We are also looking forward with same arrangement with Amazon for cloud computing,” he said during last week’s Habi at Kape forum. Representatives of SAS Technologies and Amazon will be speaking during the LiveX 2019, which will also be participated in by the ICT councils around Mindanao. “We have over 20 ICT councils organized in urban centers in the whole island and will be complemented by the friends from Malaysia and Indonesia,” Mr. Matunog said. — Maya M. Padillo

MinDA TienDA to serve as livelihood development program for earthquake victims

THE MINDANAO Development Authority (MinDA) will expand the MinDA Tienda project into a livelihood development program for those affected by the series of earthquakes last October in parts of Mindanao. The Tienda project was initially rolled out in Makilala, Cotabato and Bansalan, Davao del Sur as temporary retail outlets for fresh and dry goods to give earthquake-affected residents easier access to supplies. MinDA, in a statement over the weekend, said they will be holding capacity-building and financial management trainings for the earthquake victims to help them set up livelihood projects. “After their capability trainings… they will be organized into associations and cooperatives, MinDA TienDA outlets will be established on the first quarter of 2020 in all earthquake affected areas which would be owned and managed by the victims themselves,” MinDA Chair Emmanuel F. Piñol said. MinDA is also looking for partners that will help provide funding for the outlets. — Carmelito Q. Francisco

Rain or Shine remains in the hunt for QF spot

By Michael Angelo S. Murillo
Senior Reporter

THE Rain or Shine Elasto Painters are not about done with their Philippine Basketball Association Governors’ Cup campaign, staying in the hunt for a quarterfinal spot after defeating the Meralco Bolts, 83-81, in their final game of the elimination round on Sunday at the Smart Araneta Coliseum.

Needing to win to stay alive in the race entering the contest, the Elasto Painters did just that with a strong finishing effort in the game en route to outlasting the Bolts.

The win pushed Rain or Shine to a 4-7 record, still in the mix for the two remaining seats in the next round of the season-ending PBA conference.

Rain or Shine was now awaiting the outcome of the game later in the day between the Barangay Ginebra San Miguel Kings (7-3) and Northport Batang Pier (4-6) to have a clearer picture of its playoff fate.

It was a tight affair to begin the game with both teams looking to establish the tone for their respective thrusts.

Rain or Shine was slightly ahead at the end of the first quarter, 23-21, before the Bolts turned the tables around in the second canto, up, 42-41, at the halftime break.

In the third period, Meralco created some separation on the lead of Baser Amer and import Allen Durham.

The Bolts outscored the Elasto Painters, 24-13, to build a 12-point lead, 66-54, with 2:57 left in the frame.

Rain or Shine though would manage to narrow the gap to nine points, 69-60, heading into the final canto.

It picked up where it left off in the third, opening the final quarter with 11 straight points on the lead of import Richard Ross and Mark Borboran and overtaking the Bolts, 71-69, with six minutes to play.

The two teams went back-and-forth after, fighting to an 80-77 count, with Rain or Shine up, entering the last two minutes.

Rey Nambatac made it a five-point lead, 82-77, for the Elasto Painters with a floater in the paint with 1:28 left.

But the Bolts were not to allow Rain or Shine to just run away with the win, pushing themselves to within a point, 82-81, with 47 seconds left on buckets of Mr. Durham and Raymond Almazan.

They, however, could not complete the fight back as a split charity by Jewel Ponferrada to make it a two-point lead, 83-81, for Rain or Shine with 34 seconds to play proved to be enough to preserve the win for the Elasto Painters.

Mr. Ross led Rain or Shine with 26 points and 12 rebounds, with Mr. Nambatac coming up with 24 markers of his own.

For Meralco (8-3), it was Mr. Durham who showed the way with 23 points and 16 rebounds, followed by Messrs. Amer and Almazan with 18 points each.

Despite the loss, the Bolts are safe through the quarterfinals with a twice-to-beat advantage to boot.

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