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A new wave of home coffee machines is producing perfect pour-overs

RATIO FOUR — RATIOCOFFEE.COM

By Matthew Kronsberg

I’LL ADMIT IˆT. I’m an absolute sucker for evocative tasting notes on a bag of good coffee. Promise me hints of apricot marmalade, candied walnuts, honeysuckle or milk chocolate, and I’m in. Throw in a mention of Lambrusco and Grape Nerds? Even better. But having then shelled out some exorbitant sum of money for a bag of magic beans (even cheap coffee is getting very expensive lately), I’ll go home, start brewing and, more often than not, think to myself that it tastes more than anything like, well, coffee.

That’s not to say those tasting notes are a scam. There is an art to coaxing those promised flavors out of beans. Pour-over is the process tailored to do the job best, but executing it well demands a level of focus and precision I often lack, particularly first thing in the morning before I’ve had any coffee. You need to weigh and grind the beans just so, heat water to the precise temperature recommended for that roast and then pour just the right amount of it over the grounds, at the right speed, at the right intervals, sometimes even in the right pattern. It can take longer to make a cup of pour-over than it does to drink it.

For some people, that’s just fine: They’re in it for the ritual as much as the result. “We’re seeing more and more customers getting away from pods and K-cups,” said Kelli Rognilie, director of marketing for retailer Seattle Coffee Gear. “They’re just wanting more out of their cup of coffee.”

To get more out of their cups without asking people to put in the time, manufacturers have been developing coffee makers which automatically replicate a lot of the pour-over process. It’s a development welcomed not just by coffee drinkers, but also by roasters, says Andrea Allen, co-founder of Onyx Coffee Lab in Bentonville, Arkansas. “People that source, roast, and brew coffee here in our cafe [are] able to put input into those recipes. You really are getting something that is very specifically engineered all the way from the way the machine is made, into the way that barista has decided that that’s like the best profile for this particular cup of coffee. It’s honestly an incredible advance.”

XBLOOM STUDIO ($499)
When Richard Xu was working as a product designer at Apple, Inc., he’d spend about $100 a month on a Blue Bottle subscription that delivered assorted exotic single-origin roasts. One day, a shipment of rare gesha beans caused a crisis of confidence. Mr. Xu, who has a Ph.D. in mechanical engineering, and knows “all the parameters that matter,” recalls thinking, “I can’t brew it. I’m going to ruin it.” He started questioning himself, then Blue Bottle: “Is this the right way for them to sell coffee of that caliber?”

Quality coffee, he decided, had a last-mile problem. Growers could raise incredible beans, and roasters could transform them with heat and package them beautifully. But when customers got them home, all bets were off.  Xu’s fix was to make a coffee machine that could grind and brew, pour-over style, to a roaster’s exact specifications. He left Apple and in 2022 released the $699 xBloom Original.  (He’s not the first Apple alum to go into the consumer coffee business: Douglas Weber decamped to Japan to make coveted gear, including the $1650 HG-2 manual grinder.)

In April 2024, xBloom released the follow-up, Studio, which also combines a grinder, scale, and brewer into a tall, slender, almost Bauhaus-esque device. Like the Original, its great party trick is a robotic arm-like mechanism that shuttles the filter between the grinder and the brewer head.

The simplest way to use the machine is to buy xBloom’s single-serve, whole-bean-filled pods, most of them made by a roster of small, independent roasters like Onyx Coffee Lab and Proud Mary. Each pack comes with an RFID, or radio frequency identification, embedded card with the coffee’s details. Touch the card to the top of the machine, and it sets the Studio to the roaster’s recipe. Pour the beans into the grinder, set the empty pod, which doubles as a filter, in its holder and press start. The 48-millimeter conical burr grinder adjusts to the preferred size and speed, and water streams out at the programmed rate and temperature. Between pours, the arm may even vibrate to agitate the coffee for better extraction.

You can also use your own beans with one of the preset brewing profiles in xBloom’s app or create your own, customizing every aspect of the process. The app even shows the progress of the brew, mesmerizingly charting the changing ratio of water to coffee. The scale, grinder, and hot water dispenser also work independently, so you can use them for everything from making tea to weighing ingredients for preparing  dinner or baking a cake.

FELLOW AIDEN ($365)
For the last 11 years, Fellow has made some of the most stylish, functional coffee gear on the market. Their grinders, scales, and kettles frequently anchor coffee shop counters and are favored by people who take their pour-over coffee seriously. But there was one place Fellow’s gear was conspicuously absent, says founder Jake Miller: his mother’s kitchen. “She doesn’t use a single one of my products.”

That’s changed with the release of Fellow’s first coffee maker, the Aiden, designed to make pour-over-style coffee accessible to the Mr. Coffee set while offering the kind of precision and customization options coffee geeks demand. It has two principal modes of brewing: the one-touch instant brew and the more customizable guided brew. Like the xBloom, Aiden can brew to a roaster’s specification (or yours), with tweakable times and temperatures for each pour. A growing roster of roasters such as La Cabra and Verve already have preset brewing profiles on the machine for some roasts. Unlike the xBloom, Aiden can also serve as a batch brewer, making up to 50 ounces of coffee at a time.

Because the physics of making a cup of coffee differ greatly from making a carafe, the Aiden comes with small and large brewing baskets that ensure the grounds are evenly saturated, however much you brew. Control is via a single dial and a full color, circular screen that’s perfectly fine for scrolling through preset brewing profiles. For the complicated business of creating your own profiles — setting bloom times and tweaking temperatures — use the app.

Aiden also has a few features that set it apart from the pack, like a cold-brew setting that takes a Kyoto-style approach to the process: It begins with a hot water bloom, then very slowly drips room temperature water over the saturated grounds. It also has a preset option, so your coffee or cold brew can be ready when you walk into the kitchen (for the truly impatient, consider the Cumulus cold coffee machine, which uses capsules of concentrate to dispense ice-cold nitro-infused java into your cup in seconds). For the inveterate dial-twiddlers, it even has a hidden Easter egg, the shoot-em-up video game Spacey, playable on the brewer itself.

RATIO FOUR ($259)
If screens, menus, and apps are too much to deal with first thing in the morning (or ever), the Ratio Four is the way to go. Portland, Oregon-based Ratio was founded in 2012 with the intent of automating the pour-over process in the simplest way possible. Previous models, the Ratio Six and the Ratio Eight, were sleekly designed appliances geared more for brewing by the batch than by the cup.

The smaller-scale Four fills that gap and offers its own design distinctions, like a removable 22-oz water tank that connects to the brewer by a 14- inch-long hose wrapped in a slinky-like matte-black hose and a handblown, smoke —tinted borosilicate glass carafe.

The Ratio’s controls are limited to a single button, with a trio of lights that show the current stage of the brewing process: bloom, brew, and then ready. With just that one button, customization options are, unsurprisingly, limited. A long press tells it you’re making a smaller batch of coffee, so it shrinks the bloom cycle appropriately. After that, it pulse-pours water for two minutes before steadily adding the remainder. You can even swap out the brew basket and carafe for your own dripper and mug.

Like the xBloom and the Aiden, the Ratio Four is not built for speed. But if you’ve ever had a carefully made cup of coffee whose flavors revealed themselves the way they do with wine or whiskey, you know that a little wait can be worth it. Particularly if you don’t have to do any work. — Bloomberg

Asia-Pacific countries to leverage AI solutions

REUTERS/DADO RUVIC/ILLUSTRATION

ASIA-PACIFIC (APAC) governments and businesses are expected to continue tapping artificial intelligence (AI) solutions this year to improve their cybersecurity posture and boost efficiency in areas like energy and cloud management, according to software company Hitachi Vantara.

“The region’s rapid urbanization and growing digital economy make it an ideal environment for deploying innovative AI solutions, especially in areas like energy efficiency, hybrid cloud management, and intelligent automation,” Matthew Hardman, chief technology officer for Asia-Pacific at Hitachi Vantara, said in a statement.

“As we look ahead, emerging technologies further enhance AI’s capabilities in APAC, enabling businesses to address localized challenges with unprecedented precision. AI isn’t just a buzzword anymore — it’s a critical driver of sustainability, security, and resilience, helping the region build a future-ready economy.”

Companies in the region have been using AI-powered digital twins or virtual models to optimize energy usage and simulate efficiency improvements before implementation, he said, such as in the case of data centers.

“This approach isn’t just theoretical; retrofitting existing data centers with these technologies is already reducing power consumption to be more energy efficient,” he said.

This comes as Southeast Asia’s data center market is projected to grow by over 5% annually through 2029 to $14.41 billion in value, according to Statista.

The Philippines has also been cited as a potential market for data centers, as 73.6% of its population are internet users, according to digital platform Datareportal.

“This shift will have a massive impact on both sustainability and cost savings,” Mr. Hardman said.

He also noted the rapid adoption of hybrid cloud architectures among Asia-Pacific firms, with businesses looking to balance the flexibility of using public cloud technologies with ensuring the security of their on-site infrastructure.

Using AI-driven management tools along with container orchestration systems allows firms to deploy applications while maintaining data sovereignty, he said.

“As the demand for massive data volumes to train AI grows exponentially, organizations must rethink traditional storage architectures. Object storage solutions accessible via industry-standard protocols provide scalable, cost-effective platforms for managing large-scale data compared to traditional block storage systems,” Mr. Hardman said.

AI solutions are also helping Asia-Pacific governments and firms boost their cybersecurity posture, he added.

“When it comes to cybersecurity, AI is playing a pivotal role in combating rising threats. Advanced threat detection systems using anomaly detection models are enabling real-time responses to cyberattacks, while generative AI (GenAI) is helping businesses simulate threat scenarios to strengthen their defenses. As regulations like Singapore’s Model AI Governance Framework and Indonesia’s data sovereignty laws take hold, AI-powered compliance tools are helping organizations navigate these complexities while safeguarding their operations.”

Meanwhile, AI-driven smart grid technologies are also expected to improve energy management in the region, Mr. Hardman said.

“By integrating machine learning models into grid operations, governments and utility providers can optimize energy distribution, predict demand fluctuations, and seamlessly incorporate renewable sources like solar and wind,” he added.

Small and medium enterprises (SMEs) in Asia-Pacific are also benefiting from AI solutions, Mr. Hardman said.

“From automating customer service with multilingual small language models to optimizing inventory management with predictive analytics, SMEs are leveraging AI to compete at scale.”

The Philippines has about 1.2 million micro, small and medium enterprises, accounting for more than 99% of total businesses, government data showed.

A recent IBM study showed that the Philippines still experiences challenges with AI, with 43% reporting limited use cases, 40% difficulty in integration and scaling, and 37% lacking an AI strategy.

It said that 23% of AI investments by businesses in the Philippines this year will focus on customer experience, 18% on back-office business process automation, and 17% on employee experience and productivity.

Meanwhile, a survey conducted by PwC Philippines in partnership with the Management Association of the Philippines showed that 40% of CEOs in the country said that they have already adopted GenAI.

The survey said 71% of CEOs believe that GenAI will change how their companies create, deliver, and capture value. — B.M.D. Cruz

Trump’s Folly? Greenland for critical minerals is utter nonsense

JENNIFER LATUPERISA-ANDRESEN-UNSPLASH

EVERY FEW YEARS, a craze engulfs the commodity industry: A new and exotic source of mineral supply is about to emerge, solving all the world’s shortages. The list stretches the imagination from the ocean abysses (deep sea mining) to the vastness of space (asteroid mining).

The buzz today is more mundane: Greenland — cold, vast, and, so we’re told, endowed with every mineral the world needs. So large are its riches that US President-elect Donald Trump wants it. Trouble is, the theory is utter nonsense.

As with every tall tale, the story starts from a grain of truth. The island of about 60,000 people, a self-ruling territory of Denmark, has some mineral deposits, some of which are even large. That’s unsurprising. Geologically, the island is an extension of the North American continent, and we know that the US and Canada do enjoy a significant mineral endowment.

But cynical observers should be forgiven a case of déjà vu: The hyperbole around Greenland and commodities has a 50-year long history. Back in the 1970s, the interest was about oil. The craze resurfaced in the early 2000s after oil and iron ore prices surged. Suffice to say the island doesn’t pump a barrel of oil and the miner that planned to develop an iron ore deposit went into bankruptcy.

Now it’s an eagerness to tap “a lot of great natural resources” — in the words of Vice-President-elect JD Vance. But here, it really depends on your definition of “a lot” — certainly, using my definition, it doesn’t qualify. It’s not even close.

A 2023 Danish geological survey identified at least 50 locations with mineral potential. Of them, more than half are north of the Arctic Circle, making their exploitation very hard and expensive, if not impossible. A handful, however, are in the ice-free southern tip of Greenland, opening the door to development. But most of them are small. Of the potentially large, perhaps the most interesting one is the Tanbreez rare earths deposit.

Yet the geological report warns that Greenland has very little chance of developing its commodity deposits due to high production costs. “Greenlandic deposits could become more economically viable in the future,” it says, only if prices were to rise significantly.

Here is where the sales pitch is required. Of course, prices will rise, the bulls say; haven’t you seen that China controls 90% of the world’s rare earth metals, and Beijing could close the tap any day, they add. Yes, I have; I even saw the price of dysprosium, one of the rare earth compounds often quoted as very rare and very important, go parabolic in 2011, during the last rare earth mania. In a few weeks, it went up 800%, only to crash nearly as quickly.

Rare earths are a bit of a misnomer — they are quite abundant. The problem is that rarely are they abundant in a concentration worth mining for. Even when the concentration is high, extracting the elements from the ore is expensive and very polluting. Hence why China controls the market. Not only does the Asian giant have more reserves than anyone else, it also doesn’t mind the environmental cost of the rare earths refineries.

Are the Greenlandic reserves of rare earths large? Not as far as we know. According to the US Geological Survey, considered an authority in the field, the island contains 1.5 million tons. That puts Greenland in the world’s top 10, but well behind the US itself, as well as China, Brazil, Vietnam, India, and Australia. Very likely, mining for rare earths in all of those countries would be easier and cheaper than in Greenland.

What about the geopolitical considerations? Let me put it this way: Rare earths aren’t oil. Or copper; or uranium; or natural gas. In 2023, the total value of the rare earth compounds and metals the US imported was $190 million. The price of rare earth can surge by 50 times and not be more than a blip for the US economy. And at those prices, American companies would find many projects at home before Greenland.

True, if the cost of rare earths like dysprosium was to surge once again — and crucially, stay higher for a long period — perhaps some of the Greenlandic projects would make sense. But one has to assume the most bullish price forecasts — and simultaneously, that climate change will render mining in Greenland a lot easier than today, and that every other nation with rare earths reserves wouldn’t rush to develop their own, crashing the market.

Past performance is no guarantee of future results — but investors should beware of the siren song of the rare earth sector. Look at the VanEck Rare Earth and Strategic Metals exchange traded fund. It’s down nearly 80% since its launch in 2010.

If Greenlandic rare earths aren’t worth the time and money, perhaps other commodities? I don’t think so. Not at current prices, anyhow. Take cobalt, key for the batteries used by Tesla, Inc. and other electric-car companies. It’s hovering close to a 20-year low thanks to Chinese miners, deterring investment everywhere. The same goes for nickel, facing a glut thanks to booming Indonesian output; likewise, iron ore. Perhaps copper has a future, but if prices climb, many other locations would be far more profitable – and offer far more production potential — than Greenland, which has very limited reserves of the reddish mineral. The same applies to more exotic minerals like titanium, tungsten, and vanadium. For all, the potential reserves are equally abundant elsewhere, and at a lower production cost.

If the US is serious about mineral supply, it has better places to flex its diplomatic muscle. The Democratic Republic of Congo is, by far, the most important one — home of huge, proved reserves of copper and cobalt, two minerals far more important than rare earth elements. So are Chile, Peru, Brazil, and Mongolia. Kazakhstan goes into the list too. Sadly, none of them is for sale. But neither is Greenland.

BLOOMBERG OPINION

Yields on term deposits decline as market eyes further BSP cuts

BW FILE PHOTO

YIELDS on the central bank’s term deposits dropped further on Wednesday amid expectations of further rate cuts by the Bangko Sentral ng Pilipinas (BSP).

The BSP’s term deposit facility (TDF) fetched bids amounting to P319.353 billion on Wednesday, above the P240 billion placed on the auction block but slightly lower than the P339.78 billion in bids seen for the P180-billion offer a week ago.

Broken down, tenders for the seven-day papers reached P189.095 billion, higher than the P140 billion auctioned off by the central bank but lower than the P213.661 billion in bids recorded for the P100-billion offer the previous week.

Banks asked for yields ranging from 5.725% to 5.825%, narrower than the 5.715% to 5.8745% band seen a week ago. This caused the average rate of the one-week deposits to decline by 2.1 basis points (bps) to 5.7983% from 5.8193% previously.

Meanwhile, bids for the 15-day term deposits amounted to P130.258 billion, above the P100-billion offering and the P126.119 billion in tenders for the P80 billion in 14-day papers placed on the auction block on Jan. 8.

The two-week tenor offered this week was adjusted from the usual 14-day maturity due to a holiday.

Accepted rates for the tenor were from 5.75% to 5.91%, lower than the 5.84% to 5.97% margin seen a week ago. With this, the average rate for the two-week deposits dropped by 6.44 bps to 5.8675% from 5.9319% recorded in the prior auction.

The BSP has not auctioned 28-day term deposits for more than four years to give way to its weekly offerings of securities with the same tenor.

The term deposits and the BSP bills are used by the central bank to mop up excess liquidity in the financial system and to better guide market rates.

Term deposit yields went down amid expectations of further policy easing by the BSP, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

BSP Governor Eli M. Remolona, Jr. last week said the central bank still has room to continue cutting interest rates as inflation remains manageable, adding that current benchmark borrowing costs remain “restrictive.”

Headline inflation picked up to 2.9% in December from 2.5% in November, the government reported last week. Still, this was slower than the 3.9% print in the same month in 2023 and was within the 2.3%-3.1% forecast of the BSP.

The December rate brought the full-year 2024 inflation average to 3.2%, slower than 6% in 2023 and marking the first time since 2021 that the consumer price index settled within the BSP’s 2-4% annual target.

The Monetary Board has slashed benchmark borrowing costs by a total of 75 bps since it began its easing cycle in August, bringing its policy rate to 5.75%.

Mr. Remolona previously said that while the BSP remains in an easing cycle, 100 bps worth of cuts this year may be “too much” amid inflation concerns. He added that they will continue to bring down benchmark interest rates in “baby steps.”

The Monetary Board will hold its first rate-setting meeting for this year on Feb. 20.

“The BSP TDF average auction yields also declined after the initial implementation of the maximum suggested retail price (MSRP) for imported rice (that) could further support benign inflation,” Mr. Ricafort said.

The Agriculture department had set the MSRP at P58 per kilogram for imported rice with broken-grain content of 5%.

A price ceiling has not yet been set for imported 25% broken rice. The price ceiling is expected to take effect on Jan. 20, initially in Metro Manila. — L.M.J.C. Jocson

Sunlight Air expands fleet

SUNLIGHTAIR.PH

SUNLIGHT AIR announced on Wednesday the addition of new aircraft to its fleet.

“As we enter the new year, we find that there are more growth opportunities that come with the continuous increase in passenger demand,” Sunlight Air Chief Executive Officer Ryna C. Brito-Garcia said in a media release on Wednesday.

Sunlight Air, operated by Sunlight Express Airways Corp., said it procured an ATR 72-600, which is described as a modern and fuel-efficient aircraft.

The ATR 72-600 can seat up to 78 passengers and aligns with the boutique airline’s commitment to environmentally friendly operations, Sunlight Air said.

This addition will further boost Sunlight Air’s fleet as it currently operates three ATR 72-500 planes, it said, adding that it is moving closer to its goal of expanding its existing routes in 2025.

“By increasing flight frequencies and exploring new destinations, the airline aims to solidify its reputation as a trusted choice for regional travel,” Ms. Brito-Garcia said.

Sunlight Air said it is constantly looking to boost its flight frequencies to position the company as a market leader in domestic travel.

Currently, Sunlight Air flies from Clark, Cebu, and Manila to Siargao; San Vicente, Coron, and Busuanga in Palawan; and Caticlan, Aklan; Iloilo; and Cagayan de Oro. — Ashley Erika O. Jose

Tiong Bahru Bakery opens in Manila

LOOKING for a really good croissant in Manila used to be a bit of a challenge (you would have to troop to the mall, or order a batch from a baker friend). Things have changed, and a new player has now come all the way from Singapore.

Tiong Bahru Bakery’s roots are in Singapore’s indie district, which it was named after. Offering French Viennoiseries (a French term for the Austrian pastries they’ve perfected), the bakery has been around since 2012. Its location in Bonifacio Global City’s Verve Residences is its first foray out of Singapore, where they have 21 outlets. “Manila, with its vibrant culinary scene, and deep appreciation for food that brings people together felt like a perfect first home for Tiong Bahru Bakery overseas,” said Tiong Bahru Bakery International General Manager, Matt Mclaughlan in a speech during a preview on Jan. 14.

At the heart of its menu is the classic Croissant — golden and flaky on the outside, with rich buttery aroma and mouthfeel (we’d also like to point out its shiny laminated surface, which baker acquaintances say is hard to achieve). A new batch is baked every two hours to ensure freshness.

“Our signature croissant takes three whole days to make: the combination of fermentation… of folding, of prepping, proofing, and baking to get that delicious, buttery, flaky taste,” said Mr. Mclaughlan in his speech.

We had one along with coffee, and it did taste more buttery and was more yielding (that is, softer and easier to break) than other croissants in the city (though the difference may be imperceptible to many). We do note that the coffee and the croissant were served cold, but we’ll clock this up to first-day jitters. We also had a pain au chocolat, just to round things out, and we were satisfied with the chocolate filling and the excellent flaky pastry. “You either love it now, or you will love (it) in a few minutes,” said Mr. Mclaughlan in his speech.

“We pride ourselves in using these time-honored French backing techniques that hone the craft in true artisanal baking. Every croissant, every loaf, every pastry that you see behind me starts with the finest ingredients and is infused with a deep respect for this tradition,” he continued.

“I’d like to extend my heartfelt gratitude to our partners, Jollibee Foods Corp.,” he said, thus adding another feather to the homegrown global brand’s cap. The same group has the franchises for Panda Express, Yoshinoya, and Burger King in the Philippines, not to mention acquiring the Tim Ho Wan and The Coffee Bean & Tea Leaf brands.

Tiong Bhru Bakery is located at Verve Residences in Bonifacio Global City, Taguig. — Joseph L. Garcia

Predictions: Top 6 strategic priorities for Southeast Asian enterprises in 2025

FREEPIK

By Rajesh Ganesan

AMID rapidly changing market conditions, organizations broadened their perspectives, shed age-old practices, and embraced novelties to strengthen their foothold in the market in 2024. With the technological landscape evolving each year, enterprises are compelled to look into various aspects of their businesses and understand how technology is contributing to their overall growth. Businesses that don’t adopt digital technology run the risk of becoming obsolete as these technologies grow more integrated into daily operations.

We have identified six key priorities for 2025 that modern organizations in Southeast Asia should consider while navigating through the challenging digital landscape in order to remain competitive and resilient in a rapidly evolving environment. For Southeast Asia’s digital economy to continue achieving double-digit growth in 2025 across gross merchandise value, organizations need to focus on the following priorities: scaling up artificial intelligence (AI) usage, democratizing cybersecurity, implementing a distributed governance model for compliance, reengineering experiences, embracing sustainability, and focusing on outcome-driven information technology (IT).

1. DEMOCRATIZING CYBERSECURITY

Per PwC, “The number of mega breaches experienced by Asia Pacific organizations in the past three years has risen considerably: in 2023, 35% of organizations say they have experienced data breaches costing anywhere from $1 million to $20 million over the last three years.” This highlights how managing cyber risk at all levels of the workforce — and not restricting it to just the top organizational level — should be a priority for security leaders in 2025.

This involves the democratization of cybersecurity, which essentially makes everyone in an organization responsible for its defense. Organizations stand to benefit from proactive security management, increased cyber resilience, cost savings, increased efficiency, and innovation in security practices.

Organizations should ensure employees undergo dedicated continuous security engagement programs. Since the biggest challenge to democratizing security is poorly equipped employees and ill-defined processes, organizations should also ensure that employees only have limited access to self-service tools and services.

2. DISTRIBUTED GOVERNANCE MODEL FOR COMPLIANCE

Multiple regulations and audits will soon force privacy and compliance leaders to implement a distributed compliance framework to ensure pervasive compliance. The general practice so far has been to entrust compliance to a central team; however, the job is intrinsic to every department within an organization.

The central compliance team is primarily responsible for program management. It should have a pulse of what’s happening in the industry and map the requirements evolving out of relevant regulations and standards. This central compliance team should keep leadership updated about the evolving landscape and macro challenges posed.

On the other hand, the execution of the compliance program should be broad, empowering business functions at all levels. Each team and business function should undergo training to understand risk management and use it consistently to address non-conformities flagged during audits as well as for root cause analysis of incidents.

3. REENGINEERING EXPERIENCES

In any organization, customers and employees are regarded as the most valuable assets. Every single interaction they have, be it with either a human or a machine, is critical in shaping their overall experience. These experiences are crucial in determining the fate of an organization, making them a strategic priority for leadership.

Ease of use, availability, consistency, being proactive with changes, contactless digital experiences, and keeping the feedback loop open are some key user expectations that can’t be ignored. This approach involves reimagining and redesigning an organization’s existing technology architecture, which may have scalability and compatibility issues, to deliver better than before. It also includes leveraging emerging technologies such as AI, generating actionable insights from data analytics platforms, and customizing workflows to enhance employee engagement and customer satisfaction.

A major challenge to reengineering includes context setting — the size of the enterprise and the productivity hit taken during the shift. Another challenge would be ensuring IT security while at the same time ensuring those measures don’t hinder or impact the user experience.

4. OUTCOME-DRIVEN IT

Modern-day enterprises are powered by IT, which now occupies a place at the top of the management table. Any failure that results in services being unavailable or disrupted can result in huge business implications. IT leaders will need to clearly demonstrate the value generated by their IT investments or risk shrinking budgets. That clarity can be gained by aligning IT with not only operational efficiency but also with business velocity and opportunity costs.

In 2025, CIOs need to focus closely on KPIs and metrics that provide a direct link to the business outcomes that depend on them. For instance, in the healthcare industry where there is a constant focus on safeguarding data and compliance management, metrics that track user behavior and anomalies, ensure continuous availability of critical assets, and give visibility into critical and high-risk vulnerabilities and incidents are most vital since they all affect business operations.

5. SCALING UP AI USAGE

The past couple of years were significant for AI as a lot of enterprises ran pilots to harness its capabilities. As we approach 2025, enterprises will view AI integration from the lens of scaling up its usage and generating ROI.

It will also be a big year for AI in cybersecurity. With attacks becoming more sophisticated by leveraging AI, traditional cybersecurity measures may not be enough to defend against them. This is where investing in AI for defense becomes crucial. Investing in augmented AI is also becoming increasingly important as it can significantly enhance employee productivity. Additionally, we can expect to see more LLMs being utilized in the enterprise setting. These LLMs will be equipped with agents that can make real-time API calls and augment their generative capabilities.

To realize all this, it’s crucial for companies to have a solid data strategy in place. This includes streamlining relevant processes and ensuring that they are in sync with that strategy. CIOs must prioritize data sovereignty and data preparation — operating on encrypted data — to guarantee the success of AI implementation.

6. EMBRACING SUSTAINABILITY

Investments in GPUs are skyrocketing as they play a critical role in training deep learning models and supporting faster computing. However, their energy requirements, which are difficult to maintain and constitute massive carbon footprints, call for immediate intervention.

A sustainable outlook reduces the environmental damage inflicted by such advanced technologies, meets the demands of environmentally conscious customers, helps adhere to compliance standards, and improves efficiency, making it a key competitive differentiator and a strategic priority for organizations in 2025.

Organizations should conduct internal environmental audits, raise their investments to explore alternate energy sources, and gain carbon credits. This will empower enterprises to secure their business posture, gain competitive advantage, and enhance their operational efficiency in the ever-changing digital ecosystem.

By embracing and staying ahead of transformative technology changes, Southeast Asia’s enterprises will be able to drive business growth in a sustainable and secure manner in the next year and for years to come.

 

Rajesh Ganesan is the president of ManageEngine

Revisiting the four-day work week

PHILIPPINE STAR/WALTER BOLLOZOS

In 1926, pioneering automaker Henry Ford demonstrated that shortening the workweek would not result in economic catastrophe. Through research and experimentation, the industrialist recognized the importance of rest and decided to operate his factories for only five days a week, down from six. He also limited workdays to eight hours without reducing employee pay.

As one of the largest manufacturers of his time, Ford’s decision influenced many other companies to adopt the 40-hour workweek format. Before this innovation, workers typically endured 12-hour days, six days a week — totaling over 70 hours. Sundays were reserved for rest and religious obligations. The new approach represented a significant shift in labor practices.

Ford believed that overworking employees caused fatigue and diminished productivity. A shorter workweek, he argued, would allow workers to rest and recover, making them more efficient during their working hours. Additionally, he anticipated that more leisure time would encourage higher consumer spending, including on Ford products. He saw this balance between work and leisure as essential for sustained economic growth.

Ford implemented the five-day workweek unilaterally, without waiting for government mandates or union pressure. Importantly, he maintained wages despite reducing hours. This ensured employees did not suffer financially and, instead, enjoyed an improved quality of life.

The “Ford format” has endured for nearly a century, but as technology transforms the workplace, it may be time to revisit the idea of a shorter workweek. If productivity and efficiency can be maintained, and workers assured of fair pay, a shorter workweek could be a win-win for both employers and employees.

Globally, governments and companies have begun experimenting with flexible work arrangements, including shorter workweeks, particularly in the wake of the COVID-19 pandemic. For instance, the United Arab Emirates (UAE) introduced a 4.5-day workweek in 2022 to improve work-life balance and align with global markets. Fridays were designated as half-days to accommodate cultural practices, while weekends were shifted to Saturday-Sunday.

Similarly, Iceland conducted landmark experiments between 2015 and 2019, testing a four-day workweek for public sector workers. The trials, involving 2,500 participants, demonstrated that shorter workweeks could increase productivity, reduce stress, and maintain or even enhance output. In Japan, the “Work Style Reform Act” encouraged public offices to adopt flexible schedules to reduce overwork and promote better work-life balance.

In the private sector, a 2022 trial in the United Kingdom involving over 60 companies tested the four-day workweek without pay cuts. Results showed sustained or increased revenue, better employee mental health, and lower burnout. In the United States, companies like Twitter and Microsoft adopted remote or hybrid work models. Kickstarter implemented a permanent four-day workweek after successful trials. Similarly, New Zealand’s Perpetual Guardian conducted a four-day workweek experiment in 2018, which resulted in better work-life balance, reduced stress, and sustained productivity.

Iceland’s trials were particularly influential. By 2022, nearly 90% of Iceland’s workforce had access to shorter workweeks. Similarly, in the UK, 91% of firms participating in 2022 trials chose to continue the four-day workweek, citing improved employee retention, reduced absenteeism, and stable or increased revenues.

Elsewhere, European Union pandemic recovery funds incentivized remote work, particularly for small and medium enterprises. Germany and France supported hybrid work arrangements through subsidies, while Singapore introduced the Work-Life Grant, providing financial incentives for businesses implementing flexible work setups. In the Philippines, the 2018 Telecommuting Act created a legal framework for remote work, though adoption remains limited.

However, not all jobs easily adapt to remote work or reduced hours. Manufacturing and healthcare roles, for example, often require on-site presence. While some manufacturers are exploring partial automation to accommodate reduced shifts, human oversight remains essential. In healthcare, telemedicine can address some services remotely, but frontline workers — such as nurses, doctors, and support staff — must remain physically present.

Additionally, in regions with limited digital infrastructure, remote work can exacerbate socioeconomic disparities. Large corporations can afford to provide equipment and connectivity for employees, but small businesses often lack the resources to do so. This creates an uneven playing field, particularly for smaller companies competing in flexible work environments.

In the Philippines, many government offices have already adopted shorter workweeks and other flexible arrangements. However, in the private sector, no-work-no-pay policies present a significant barrier. For a shorter workweek to succeed, compensation must shift from being based solely on hours or days worked to being tied to output, productivity, and efficiency.

To address these challenges, the government along with business must agree on how to clearly define the scope of flexible work arrangements — be they remote, hybrid, or shortened workweeks — and establish guidelines for compensation, overtime, and worker protections. The government can also offer tax incentives or grants to businesses transitioning to these models, particularly small and medium enterprises (SMEs) that need financial support. Encouraging a mix of on-site and remote work where possible would allow businesses to balance operational needs with flexibility goals.

Flexible work arrangements are reshaping the global workforce, offering significant benefits in terms of productivity, morale, and environmental impact. The successes documented in Iceland, the UK, and other pioneering countries demonstrate that traditional assumptions about the 40-hour, five-day workweek are increasingly outdated.

Still, caution is warranted. Implementing shorter workweeks or fully remote setups in sectors like manufacturing and healthcare presents unique logistical and operational hurdles. Each industry must carefully evaluate the pros and cons, and industry leaders must play a key role in guiding this transition.

Governments and businesses can implement sweeping changes, supported by legislation and incentives, or allow market forces to drive flexible work on a case-by-case basis. Regardless of the approach, the conversation surrounding flexible work arrangements will continue to evolve, shaped by technological advancements, cultural shifts, and the growing demand for a more inclusive, resilient workforce.

Policymakers must review real-world examples, including lessons from the COVID-19 pandemic, to design effective and equitable policies. By balancing sector-specific requirements and carefully implementing policy measures, flexible work arrangements can become a sustainable blueprint for the future of work.

 

Marvin Tort is a former managing editor of BusinessWorld, and a former chairman of the Philippine Press Council

matort@yahoo.com

BPI targets to complete integration of Robinsons Bank branches by this year

BANK of the Philippine Islands (BPI) expects all Robinsons Bank Corp. (RBC) branches to be rebranded by the end of the year following their merger.

“We’ve integrated a couple of branches already. It went really well. So, you’ll see those branches transform into BPI branches, but the rest of the branches, we should target and finish by this year,” BPI Chief Executive Officer Jose Teodoro K. Limcaoco told reporters on the sidelines of a central bank event on Friday.

As of June 2024, BPI had 865 branches while RBC had 157.

The merger between BPI and RBC took effect on Jan. 1, 2024, with BPI as the surviving entity.

Robinsons Bank President and Chief Executive Officer Elfren Antonio S. Sarte earlier said that RBC will be fully integrated into BPI’s systems in 12-18 months.

He added that RBC has started cross-selling its consumer loan products to BPI customers, which is expected to contribute to the latter’s profits.

One of the RBC products now being offered to BPI’s clients is teachers’ loans from Legazpi Savings Bank, a subsidiary of RBC that is now also owned by BPI following the merger.

BPI’s net income grew by 29.4% year on year to P17.4 billion in the third quarter of 2024 on the back of higher revenues.

This brought its nine-month net profit to a record P48 billion, 24.3% higher year on year.

BPI’s shares rose by P1 or 0.85% to end at P119 apiece on Wednesday. — A.M.C. Sy

PHL’s first Open RAN lab seen operational by Q1

USAID Assistant Administrator Michael Schiffer (second from left) and USAID Philippines Acting Mission Director Rebekah Eubanks (left) meet with DICT Assistant Secretary Philip Varilla and UP-EEEI Deputy Director Jaybie de Guzman to strengthen the adoption and deployment of Open RAN, a critical network infrastructure that increases cybersecurity. — PH.USEMBASSY.GOV

THE COUNTRY’S first Open Radio Access Network (RAN) laboratory is set to be operational by the first quarter of this year, the United States Agency for International Development (USAID) said.

“Open RAN is not yet commercially available in the Philippines, but we foresee that it will be available in the next few years. With this laboratory, we are promoting the sharing of active components as well as the liberalization of the industry,” Information and Communications Technology Undersecretary Jeffrey Ian C. Dy told reporters on Wednesday.

The establishment of the Open RAN laboratory is under the United States Agency for International Development’s (USAID) $33.3 million Better Access and Connectivity (BEACON) project, which aims to help boost the country’s economic growth by enhancing connectivity in the Philippines.

Of this, about $8 million is allocated for the Open RAN laboratory project, USAID Mission Director Ryan Washburn said, noting that $4 million is set aside for the establishment of the laboratory itself, while another $4 million is for the academy, which will facilitate the upskilling and training of local engineers in designing, building, and operating these networks.

USAID said the Open RAN laboratory will be operational by the first quarter of this year and will be officially launched in May with government and private sector participation.

Mr. Dy said that the Open RAN laboratory will help advance the fifth-generation (5G) network rollout in the country, while also allowing telecommunications providers to access radio access networks.

“It could be used by any telco. This could lead to lower capital expenditures for telcos and promote a more competitive market,” he said.

Aside from the Open RAN laboratory project, USAID’s BEACON project also includes initiatives that will help accelerate the country’s digital infrastructure, address the digital divide through low-cost broadband, and strengthen cybersecurity. — Ashley Erika O. Jose

Dining In/Out (01/16/25)

McCafé’s P49 Coffee launched

MCDONALD’S Philippines has made its McCafé products even more affordable with the release of its latest “Mah coffee, McCafé” campaign. The stronger and creamier McCafé Iced Coffee Original is now priced at P49. The McCafé Iced Coffee Black and McCafé Premium Roast Coffee are also P49. “We’re empowering the teens to take ownership of their coffee choices and what better way to do this by making available coffee choices that are bold and rich in flavor, yet friendly on their pockets,” Ada Lazaro, Vice-President and Chief Marketing Officer, McDonald’s Philippines, was quoted as saying in a statement. McCafé is available nationwide via dine-in, take-out, drive-through, dessert centers and kiosks, and delivery.

Poolside Filipino Buffet is back at City of Dreams

CITY OF DREAMS Manila’s Wave poolside restaurant brings back its Filipino Barbecue Buffet every Thursday evening from 6 to 9 p.m until March 27. Located next to Nobu Hotel’s infinity lap pool, Wave lays out a spread of Filipino street fare and other Filipino favorites as live music performances by an acoustic duo enhance the al fresco tropical vibe. Highlights of the buffet include a crispy sisig (a sizzling dish of chapped pig face) live station and on the grills, inihaw (barbecue) on sticks, Balut at Penoy (fertilized duck eggs at various stages of maturation), and sweet corn served with cheese and butter. Filipino street fare includes kwek-kwek (batter-fried eggs), fish balls, chicharong bulaklak (deep-fried pork innards), kalamares (fried squid), lumpiang shanghai (fried spring rolls) tokwa (fried tofu), crispy crablets, and dynamite lumpia. Appetizers consist of various kinilaw (like ceviche, but with vinegar instead of citrus). Pares (braised beef) and mami (noodle soup) are among the soups, while pansit batil, a savory noodle dish, is also on the menu. There are also street food desserts and snacks such as halo-halo (a shaved ice dessert), banana cue (sweet, skewered bananas), ginataang bilo-bilo (a coconut cream dessert), and a selection of kakanin (rice cakes) along with seasonal fresh fruits. For P1,999 net per person, the Filipino barbecue buffet comes with unlimited beverages including San Miguel Light and San Miguel Pale draft beers. For inquiries and reservations, call 8800-8080 or e-mail guestservices@cod-manila.com, or visit www.cityofdreamsmanila.com.

Pre-flight meals now available at PAL

PHILIPPINE AIRLINES’ (PAL) newly launched online meal pre-ordering service allows travelers to now pre-order meals via PAL’s website and mobile app before they fly. Travelers on domestic flights can use the online service to purchase dishes created by the airline’s culinary team. Economy Class and Premium Economy passengers on PAL’s international flights can likewise upgrade their inflight meals by pre-ordering online. Using the website or the mobile app, customers can select and purchase their meal from the offerings on myPAL Flavors. The myPAL Flavors menu includes dishes like Corned Beef Hoagie, Beef Sisig Wraps, Salmon Croissant, Shrimp Pita, Tagaytay Wraps, the Bistro Mediterranean Chicken Wrap, and the Bacolod Chicken Barbecue Roll. The new pre-ordering service allows Business Class passengers flying from Manila to the mainland US, Canada, Honolulu, and Australia to select from a specially designed menu, which varies depending on the flight or season. On the menu now are Chicken Adobo Roulade, Ilocano Cauliflower Adobo, Braised Beef Short Ribs, and Pan-Seared Seabass with Mashed Potatoes. PAL offers Filipino breakfast selections for passengers flying from Manila to the mainland US and Canada, with dishes like Classic Beef Tapsilog, Stuffed Bangus with Garlic Fried Rice, and Adlai Champorado. PAL Business Class passengers can select and pre-order meals online as early as 30 days in advance, or up to at least 72 hours before their flights. Passengers with dietary restrictions may request a special diet meal at least 48 hours prior to their international flights. PAL offers a variety of special meals to accommodate all types of dietary needs, including vegan, vegetarian, diabetic, gluten-free, low fat, low sodium, and low cholesterol options. The airline also provides Baby and Child Meals for younger passengers. PAL offers options for various dietary customs, including Hindu, Kosher, and Muslim preferences. The flag carrier serves only halal-certified meals on routes plying the Middle East, Indonesia, and Malaysia. To pre-order a meal, go to www.philippineairlines.com or the PAL mobile app and use the Manage Booking function.

OpenAI rolls out assistant-like feature ‘Tasks’ to take on Alexa, Siri

GENERATIVE artificial intelligence (AI) bellwether OpenAI said on Tuesday that it is introducing a beta feature called Tasks to ChatGPT, signaling the company’s foray into the virtual assistant space, competing with Apple’s Siri and Amazon’s Alexa.

Tasks will enable ChatGPT users to request tasks to be performed at a future time, including one-time reminders such as concert ticket sales or recurring actions like weekly news briefings or daily weather updates.

Based on user chats, ChatGPT may also suggest tasks, although users will have the option to accept or decline them.

The release of ChatGPT in late 2022 sparked a frenzy of investment in AI firms, prompting Amazon to update its decade-old, money-losing Alexa service with GenAI capabilities to remain competitive with GenAI-powered chatbots.

In December last year, Amazon CEO Andy Jassy said that the revamped version of Alexa—which will take actions for users without prompting—is slated to be released in the “coming months”.

Meanwhile, Apple has integrated its “Apple Intelligence” technology into Siri, leveraging ChatGPT’s expertise and seeking permission from users before querying the OpenAI service as part of Apple’s tie-up with the Microsoft-backed startup.

OpenAI said that it will start rolling out the beta to Plus, Team, and Pro users globally over the next few days, beginning with the web platform. — Reuters

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