Gaps in the ecosystem slow innovation push

CEBU, Philippines — While Cebu continues to struggle to recover its ranking in advisory firm Tholons' globalization index, its economy may have to refocus on accelerating its investment in its innovation push.

There are gaps within the business sector that need to be addressed, according to Maria Elena Arbon, assistant director at the Department of Trade and Industry in Central Visayas.

Arbon was sought reaction on Cebu's 2019 ranking in Tholons' Top 100 Super Cities, which fell to 12th from 11th in 2018.

In a separate interview last Friday, Cebu Chamber of Commerce and Industry president Virgilio Espeleta also emphasized the need for businesses in Cebu to really adopt digitalization.

The digitalization pivot should emerge as an industry-wide effort not just in certain sectors as the business community in general is faced with challenges brought by new technologies.

“In order for us to thrive, you have to really adapt to the new ways of doing business," Espeleta said on the sidelines of the Cebu Business Month 2019 launch at Marco Polo Plaza Cebu.

DTI's Arbon said innovation is a concern of Cebu's whole business community -- not just the business process outsourcing (BPO) sector -- including the academe and government.

"It’s really the entire ecosystem,” she noted.

Cebu's falling ranking in the Tholons Services Globalization Index (TSGI) 2019 was primarily attributed to how it's been adopting digital innovation.

The 2019 index included new indicators such as digital investment and usage of artificial intelligence/cloud, the number of mobile phone/internet users, and regulatory/compliance.

"There are huge gaps in our innovation ecosystem," the DTI official said. "This is recognized by the government, community, businesses and the academe."

Espeleta said embracing digitalization remains a challenge especially among traditional businesses.

He cited the need for companies to link digitally to one another to boost adoption amid the technological disruptions.

Arbon also said the brick and mortar micro, small and medium enterprises (MSMEs) need to have a better understanding on how digitalization can improve their operations.

“There is still a lot of resistance from our brick and mortars to embrace digital," she added.

“The more people will embrace digital, the more demand there is for digital services that will help our startups grow,” she said.

She pointed out businesses must disrupt themselves by injecting technology into how they operate rather than wait to be disrupted by competitors who are ahead of the game.

“When you’re disrupted, you’re disrupted forever. The fact is there’s a new business model in town. And that business model is more efficient which the market wants,” she said. (FREEMAN)