eLearning, OpenOffice and LCD Monitors
I want to share with our readers today
some of the press updates I received last week. These
pertain to eLearning initiative of A.P. Moller-Maersk,
IBM’s support of OpenOffice (all Microsoft Office
loyalists watch out!), and a discernible trend showing
increasing sales of LCD monitors.
A.P. Moller-Maersk Outsources eLearning Development
to Manila-Based Headstrong
A.P. Moller-Maersk, the world’s largest container
shipping company, has outsourced its eLearning development
requirements to Headstrong, announced Nora Terrado,
Headstrong Philippines country manager.
Headstrong is a global consultancy firm offering consulting,
application outsourcing, product development, and business
process outsourcing services. The company is headquartered
in the US with Global Delivery Centers in the Philippines
and India. The eLearning modules for A.P. Moller-Maersk
are being developed by a project team in the Philippines.
Denmark-based A.P. Moller-Maersk leads the container
services, agency, logistics and terminal activities
market, operating over 550 container vessels and over
45 terminals. At present, the company has approximately
110,000 employees in offices located in 130 countries.
“My department is responsible for training our
seafarers in both the Danish fleet, as well as globally.
We realized that we have to approach eLearning in a
systematic way, because it’s becoming more challenging
to reach our dispersed audience and communicate the
same message,” said Julie Nachtigal Broberg, A.P.
Moller-Maersk general manager, Training and Development
for Marine HR.
According to Broberg, Maersk’s Marine HR training
requirements were previously delivered in its major
training centers in Denmark , India and the UK, and
other third party training centers around the world.
But the company’s exponential growth of the in
recent years has made this educational infrastructure
less viable.
“We chose Headstrong for its quality, professionalism,
and expertise in project management,” Broberg
said. “We felt they had the domain expertise and
creativity to fulfill our requirements. They are so
service-minded, and very pleasant to work with—a
big difference between the Philippines and other countries
where one might outsource such a project.”
In all, the engagement involves development of all
eLearning requirements for Maersk seafarers for an entire
year. After the courses have been developed, Maersk
intends to deploy them to the ships in rollout packages.
“We hope this will help us deliver the learning
and knowledge that our seafarers need in a faster and
more uniform manner,” said Broberg. “Depending
on their contracts, seafarers typically sail for half
a year, and then spend the other half at home. With
the eLearning courses, their vacations don’t have
to be as course-intensive. We are anticipating this
to make a positive impact on our retention rate.”
“Headstrong Philippines is pleased with the feedback
from Maersk at this early stage of the engagement. We
also recognize that Headstrong’s international
reputation, talent and professionalism, reflects on
the Philippines as well. This strengthens our commitment
to deliver world-class service in the friendly and engaged
manner that Filipinos are known for,” said Terrado.
IBM Support For OpenOffice
Inquirer.Net reported on 15 September that IBM has formally
expressed support for OpenOffice, the open-source counterpart
to Microsoft Office, and pledges to include it in future
product releases.
In a statement, IBM said it will assign more than 35
of its software engineers in Beijing, China to work
with the open-source community in improving OpenOffice.
“IBM is contributing significant technology that
will help make OpenOffice more accessible to those with
disabilities,” the statement said. “In addition
to actively contributing to and participating in the
community, IBM will also include versions of OpenOffice
in its products in the future.”
By extension, IBM also renewed its support for the
OpenDocument Format (ODF), developed by an IBM-led consortium
and standardized by the Geneva-based International Organization
for Standardization or ISO. IBM said it will work with
the OpenOffice community, and with other ODF application
developers. ODF is currently the standard recognized
by governments to enable transfer of documents from
on country to another. According to IBM, countries that
have developed pro-ODF policies include Malaysia, China,
Japan, Belgium, Norway, France, Denmark, Brazil, Poland,
Italy and Croatia.
IBM’s statement follows recent news of Microsoft’s
failure to get ISO recognition that would have similarly
recognized the software giant’s Office Open XML
as an international standard.
Increasing Sales of LCD Monitors
According to IDC’s Asia/Pacific Quarterly PC Monitor
Tracker 2Q 2007 report, the Asia/Pacific excluding Japan
(APEJ) PC monitor market totaled 25.9 million units
in 1st half 2007, representing an increase of 6.5% over
2nd half 2006, and an impressive 22.5% over 1st half
2006.
The top six PC monitor vendors are stand-alone monitor
vendors (Samsung, LG Electronics, ViewSonic and AOC),
while the other two are PC vendors Lenovo and HP.
Samsung, Lenovo, LG Electronics and HP retained the
same top four vendor rankings as 2nd half 2006. ViewSonic
climbed one spot to fifth, while AOC took ViewSonic’s
formerly ranked sixth up from its eighth spot. Of the
top six vendors, Lenovo was the only vendor to exhibit
a drop in market share as a result of a decline in its
desktop sales. Although more PC vendors have been keen
to explore opportunities in building their presence
in the standalone monitor market, Lenovo’s monitor
sales were still very much dependent on its desktop
sales.
(Leo V. Morada has more than 20 years of professional
IT management experience in the Philippine ports industry.
He can be contacted at email address lmorada3f1@yahoo.com).
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Side Notes to BOC VASP Testing
I have closely monitored the thorough
tech-nical evaluation process being undertaken by Bureau
of Customs since the start of this year with regard
to the four entities vying for accreditation as Value
Added Service Providers (VASP).
My observations on this ongoing process are focused
on a number of areas that really matter to IT planning
and strategy.
Web Software Application Design — Software developers
for web-based solutions just like the BOC VASP system
prefer either a scrolling document approach or a dividing
a document into several component parts which fit one
screen at a time.
For example, the import entry declaration document
may be displayed in its entirety on a single screen
and the user will just scroll downwards in order to
view the whole document. The other design technique
is to display one document part at a time (e.g., shipper
details) and then click on a menu button in order to
display the next document part (e.g, bill of lading
details).
Both design techniques have advantages and disadvantages
insofar as ease of use and speed of screen page refresh.
Reliability & Speed of Internet Connections —
The VASP system puts into real test the reliability
and speed of Internet connections provided by various
telecommunication firms and Internet service providers.
I understand that one of the major telco players servicing
the Port Area and Intramuros sites is bound to lose
valuable clients due to its unreliable Internet connection
with some of the VASP applicants.
There is just one concern here which I hope can be
addressed soon. With many customs brokers and freight
forwarders still having no Internet connection in their
offices or use only dial-up to access the Internet,
it will be very worthwhile looking into how reliable
and fast Internet services can be made available to
all.
Use of Internet Cafes To Access VASP Services —
Not all Internet cafes are created equal. Some have
fast connections while others have lower bandwidth capacity
thereby making it an unsatisfactory experience for a
user when downloading electronic document information.
The big Internet cafÈ chains may not always prove
better than their competitors which are single proprietorship
businesses.
Mobilizing Customs Administration Students For Data
Encoding — I note with great interest that when
applicant VASPs reach the parallel run stage of BOC
testing, they actually mobilize students of customs
administration college courses for data encoding. I
understand the students themselves are all very eager
to participate since the VASP system is what they will
all use when they graduate and become professional customs
brokers.
Meanwhile, I am enumerating below some other IT developments
worth watching.
P4.8-M Computerization Project of Cebu Ports Authority
The Cebu Ports Authority (CPA) invited last month all
interested bidders to apply for eligibility and to bid
for the supply of a Financial Information System Software
and database server. The approved budget for the contract
is P4.8 million.
I recall that about 2 years ago CPA also undertook
a big computerization project involving the purchase
of Microsoft software licenses.
Computer Associates Closes Down Philippine Office
IT Managers watch out.
The Philippine Daily Inquirer recently reported that
software company Computer Associates (CA) will close
down operations in the country starting October 5.
According to this report, CA said it was far from reducing
its commitment to the Philippines.
“CA is putting into place a service structure
able to draw on a heritage of local industry expertise,
coupled with in-depth cultural awareness of the Philippine
market. This move is in line with a carefully considered
channel partnership strategy that has been under development
in our Asia Pacific and Japan (APJ) region for a number
of years,” the statement added.
CA said its customers in the Philippines “will
continue to enjoy access to CA’s considerable
support capabilities via their IT infrastructures, and
CA APJ will maintain close contact with our customer-facing
partners on a daily basis to provide quality service
to client organizations.”
(Leo V. Morada has more than 20 years of professional
IT management experience in the Philippine ports industry.
He can be contacted at email address
lmorada3f1@yahoo.com.)
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Another Look at ICT Predictions
for the Philippines
AT the start of this year International
Data Corporation (IDC) Philippines released its top
10 predictions for 2007. I am reproducing this press
release upon the request of some of our readers who
are currently taking a snapshot review of how their
respective IT organizations are doing vis-à-vis
these technology predictions.
According to IDC’s Philippine Top 10 Predictions,
2007: Innovation, Redefinition, and Expansion, the Philippine
information and communication technology (ICT) market
will be marked by concerted efforts from ICT players
to innovate, redefine, and expand. Innovation will take
place among business models, offerings, and product
portfolios while redefinition of primary objectives
and business strategies are also expected to occur.
ICT players will also ensure expansion in IT spending
and areas of business opportunities through various
innovative programs aimed at gaining control of a larger
piece of the market. Such key trends will be done to
ensure profitability in a market that is expected to
witness hypercompetition as well as various disruptions.
1. ICT Spending Shows No Signs of Letting Up
IDC predicts that both IT and telecommunications spending
in the country will see over 10% growth in 2007. The
hardware category is projected to account for 67% of
the total IT spending, pushed by the expected growth
in personal systems. IT services and software categories
will expand by 14.2% and 10.5%, respectively. Wireless
service sector will lead the telecommunications spending,
expected to make up almost 68% of the total market pie.
2. The Philippine Cyberservices Corridor – Pathway
to the Future
The Philippine Cyberservices Corridor project will help
spur ICT-related activities in areas outside key urban
centers in the coming years. While it may not necessarily
lead to a significant increase in IT spending due to
reallocation of IT budgets, the significance lies in
the fact that these other largely untapped areas will
now be given the relevant support and consideration
since these areas are good alternatives and highly capable
ICT locations.
3. Philippine IT Brain Drain – Brain Gain for
Southeast Asian Countries
Export of ICT professionals to ASEAN countries will
accelerate, further deepening IT brain drain in the
country. IDC believes that the policy review should
be in order, as worker migration could gradually develop
into a shortage of qualified professionals or a labor
supply death by export.
4. Digital Gadgets – Still on the Go
Adoption of digital gadgets will penetrate beyond mainstream
audiences. Devices like mobile phones focusing on integration,
still digital cameras harboring high-end features, handhelds
possessing more functionality, along with LCD monitors
and MP3 players, will become a common sight among more
consumers.
5. Small Business Means Big Business
Hypercompetition among branded and whitebox vendors
in the SMB space will further intensify, with focus
on achieving a proper balance between service and support
and cost.
6. Server Hardware – Breaking Out of the Box
Bundling of security and storage solutions will drive
growth in the server market, as complementary products
put higher premium on server spending. Such scheme is
seen to ease out the inhibiting factors of fairly prohibitive
prices and perceived setup complexity.
7. Consumer Penetration via Enterprises
ICT players will move into consumer penetration via
enterprises, in order to capture potential “second-round”
buyers and loyal patrons. ICT product corporate packages
intended for employees’ personal/home usage is
a good alternative selling venue, providing attractive
pricing for consumers and bridging possible gaps within
remuneration packages.
8. Verticalization – Information and Communication
Technology Players Put the Spotlight on Target Industries
Verticalization strategies will be on vendors’
top agenda in 2007. The verticalized approach will be
manifested in marketing strategies; tailoring, mixing,
and remixing of product offerings; and product positioning,
as buying behaviors differ based not only on company
sizes, but also on vertical segmentations.
9. The Philippine Business Process Outsourcing Industry
– Will This Sunshine Industry Continue to Shine?
IDC believes that 2007 will be an acid test for this
much-heralded industry. The Philippine BPO industry
will reposition itself as “quality of service
(QoS) destination” rather than a pure “cost-reducing
destination”, to veer away from the emergence
of PRC, Vietnam and Easter European countries.
10. Fixed-Mobile Convergence Gets Push from Carriers
and Manufacturers
Carriers and manufacturers push fixed mobile convergence,
driven by the growing adoption of verticalized models
among ICT players. The shift to FMC will likewise trigger
more restructuring and changes in business models as
well as the network infrastructures of carriers.
“The 2007 spending will center on overall IT
consolidation, building a secure IT environment, and
reducing the total cost of IT. These factors will drive
the need for vendors to innovate their existing product
portfolios, redefine their business strategies, and
expand to new and unchartered business areas. ICT players
that are not jumping out of the box will be left out
while enterprising players who are keen on exploring
new ideas while keeping a focal view of end-user buying
behaviors, competitive dynamics, technological movements,
and macroeconomic indicators will gain needed market
traction,” says Jubert Daniel Alberto, senior
analyst, Peripherals and Consulting Research, IDC Philippines.
This IDC study presents IDC’s top 10 predictions
for the Philippines for 2007. These important future
trends and events, which resulted from the collective
opinions of IDC’s industry experts, are also guaranteed
as significant insights that will require executive
attention and will consequently drive strategic choices
for the year ahead.
Leo V. Morada has more than 20 years of professional
IT management experience in the Philippine ports industry.
He may be contacted at lmorada3f1@yahoo.com.
Back to Top
VASP As An IT Service Delivery
Model
A number of PortCalls readers who are
IT professionals asked me last week to provide some
clarifi-cation — from a technology perspective
— on what is a VASP.
In response to their request, I am featuring below
a revised version of an article I originally wrote for
Asian Quality magazine published last year.
In that feature story, I asserted that the value-added
service provider (VASP) approach has become the preferred
IT service delivery model for trade facilitation in
the Philippines. The fact that PEZA calls it Value Added
Solutions Provider and BOC uses the terminology Value
Added Service Provider is due to the distinct nature
of each regulatory agency’s role in trade facilitation.
Notwithstanding this difference in terminology, both
belong to one and the same VASP business model providing
standard technology platform and frontline electronic
services for Philippine-based importers/exporters which
are at par with global trade standards.
Let us take a closer look at the experiences of both
PEZA and BOC in order to gain better understanding on
how this IT service delivery model operates within a
trade facilitation environment.
PEZA Experience: VASP as Solution Provider
The Philippine Economic Zone Authority has an Electronic
Import Permit System (eIPS) which is an online system
for filing and processing of PEZA Import Permit applications
of PEZA-registered economic zone enterprises.
eIPS is actually implemented through a privately-owned,
accredited VASP which will develop and operate the system
for use by both PEZA and economic zone enterprises.
It must conform to minimum system requirements identified
by PEZA in terms of environment and technical capability,
enrollment system for intended users, screening parameters
for users and list of allowed commodities, electronic
payment of PEZA fees, electronic notification of cargo
clearance and movements, reportorial requirements, and
mandatory PEZA ownership of all system data.
The VASP seeking PEZA accreditation is required to
possess a minimum of six (6) qualifications.
Its actual involvement in the development and implementation
of electronic systems/ solutions, in the business, industrial
or public sector projects or undertaking should have
a minimum duration of 3 consecutive years. It must possess
in-house technical expertise and capability for developing
and implementing electronic/automated systems, and/or
partnership with other IT organizations/facilities that
will ensure access to specialized expertise on customs
procedures, security infrastructures for network/electronic
systems. The VASP must likewise have familiarity with
Import-Export transactions of PEZA-registered economic
zone enterprises, customs cargo clearance procedures
and related operations. Another qualification is the
capacity to provide a 24x7 non-stop service. It should
also be willing to adjust and further test their proposed
solution to satisfy other requirements or perform related
operations or processes that PEZA may decide to incorporate
in its Import Permit processing function. Finally, the
VASP should be willing to install and provide PEZA with
access to the approved solution at no cost, as well
as the database generated on all Import Permit applications
processed.
In complying with these minimum requirements, the VASP
is further evaluated on the basis of performance and
capability indicators: 1) three operating electronic/automated
systems developed and installed by the VASP for client
organizations, which the client organizations had formally
acknowledged as effectively providing the solutions
required, as specified in the service contract for the
VASP’s engagement; 2) in-house staff complement
with relevant educational qualifications, experience
in the fields of Enterprise Systems Design and Development,
Software Applications Development, Database Architecture
and Administration, Network Design and Administration,
and IT Training; and 3) formal or documented relationship
with other IT organizations with specialized expertise
or capabilities relevant to the development and implementation
of the eIPS.
Upon accreditation, VASP responsibilities includes
1) undertaking, at no cost to PEZA, the development,
testing, installation, operation and maintenance of
their respective systems to comply with PEZA requirements
in the implementation of the eIPS and 2) providing efficient
and continuous round-the-clock electronic Import Permit
application processing service to PEZA and PEZA-registered
economic zone enterprises.
Bureau of Customs: VASP as Frontline Service Provider
A cornerstone of BOC ASYCUDAWorld system compared to
the current Automated Customs Operations System is the
key role of VASPs in providing frontline services that
enable participants and stakeholders in the trading
community to electronically transact with the Philippine
customs through a standard technology and business process
platform called the Bureau of Customs (BOC) Portal.
The BOC Portal is an internet-enabled facility that
allows the stakeholders to gain access to relevant customs
information, exchange electronic data in and outside
the organization and perform online transactions with
various BOC offices.
Within the e-Customs Project, the VASP is defined as
“proficient IT companies in the private sector
that implements customs–specific operations and
internet-based applications, carrying out value-adding
services for their clients. Like an internet café,
a VASP offers a facility for the clients to carry out
their business with the Bureau using the internet covering
all the value-added services it supplies. VASPs make
use of internet-based application to electronically
acquire transaction data from our clients and carry
out preliminary validation in agreement to the requirements
of the BOC”.
The Internet-based services are required to be nationwide
in scope so that port users like importers, exporters,
customs brokers, freight forwarders and shipping lines/agents
throughout the country can avail of automated connectivity
to the e-Customs system.
In order to be accredited by BOC, the VASP must be
a reputable Philippine-registered ICT company, commercially
operational for 3 consecutive years immediately before
the accreditation; possess a minimum 3-year track record
in current customs automation operations; have the capability
to provide mandatory electronic services required by
BOC such as lodgment of import/export declarations;
and possess nationwide capability to service all customs
offices.
Only accredited VASPs will be allowed connectivity
to the BOC Portal. In order to ensure that the IT service
management capabilities of accredited VASPs conform
to customs requirements, the VASP must pass BOC technical
tests with regard to system integration, data security,
communications infrastructure and overall system performance.
(Leo V. Morada has more than 20 years of professional
IT management experience in the Philippine ports industry.
He can be contacted at email address lmorada3f1@yahoo.com.)
Back to Top
TODAY'S column is specifically
intended for IT managers and decision makers in our
ports & cargo transport industry.
I am sharing with them one of the latest
statistics released by International Data Corporation
(IDC) because I foresee the real impact of these information
with regard to the challenges of retaining competent
IT staff as well as recruitment of new IT manpower.
IDC has developed a Global Delivery Index (GDI) which
predicts Chinese cities are projected to overtake Bangalore,
Manila and Mumbai as highest ranked Global Offshore
Delivery Centers by 2011.
How does this situation impact IT management among
the various firms and entities belonging to our industry?
If your IT staff are resigning in order to accept better
paying employment opportunities with organizations like
Accenture (Mandaluyong) and Headstrong (Makati), then
you should continue reading the details below. Both
of the abovementioned firms belong to a category of
IT companies based in the Philippines called Global
Offshore Delivery Centers the primary business of which
are with clients abroad.
The new IDC-developed Global Delivery Index (GDI) compares
35 cities in the Asia/Pacific as potential offshore
delivery centers, based on a comprehensive set of criteria
such as cost of labor, cost of rent, language skills
and turnover rate. In its inaugural findings, Indian
cities are highly ranked, while Chinese cities are on
the rise and closely nipping at India’s heels.
Examples of cities covered include Adelaide, Bangalore,
Dalian, Hanoi, and Kuala Lumpur among many others.
ÒThere are different risk factors to consider
when evaluating outsourcing, offshoring, onshoring,
and nearshoring. Some factors are obviously more critical
than others and the GDI takes that into considerationÓ
comments Conrad Chang, Research Manager for IDC’s
Asia/ Pacific BPO Research. ÒOften times, what
differentiates leading cities from the rest is their
focus on deal-clinching factors, and the GDI weighs
that more heavily than other factors.Ó
IDC research shows that the top 10 cities in 2007 for
global delivery focused more on deal clinching factors
that include criteria such as agent skills, political
risk, cost of labor, and language skills. Other factors
that are also important in global delivery, such as
resources & skills, infrastructure, and government
factors, are well balanced among the leading cities.
IDC observes the following issues among key decision
makers regarding business decisions for global delivery:
• Confusion about offshoring, onshoring, nearshoring
and how to leverage different delivery methods for optimal
results.
• Is India the only viable option and what are
the other alternative global delivery centers?
• How to objectively compare and quantify risks
between different locations, for example, is Bangalore
better than Dalian, and what is the basis for comparison?
• What is the potential of different locations
for the future, particularly second tier locations such
as Vietnam and Malaysia?
The following graph provides a glimpse of the key findings
for the Top 10 Cities in 2007:
Source: IDC 2007
Note: Overall weighted scores take
into account all 30 criteria used in the evaluation.
Deal clinching factors focus only on selected criteria
that are deemed the most important when evaluating
a city and also has a correspondingly higher weighting
attached to them.
The IDC study also forecasts how
these top 10 cities rankings might change in 2011.
The GDI reports take into consideration future plans
of cities such as future infrastructure plans and
efforts taken to lay a firm foundation for attracting
investments. IDC forecasts that Chinese cities will
overtake Indian cities by 2011 due to massive investments
made ( e.g. infrastructure, English language, Internet
connections, technical skills, etc) which are favorable
towards offshoring. More insights can be obtained
from the soon to be launched Global Delivery Index
Program in July 2007.
The GDI will be discussed more in
depth at IDC’s up ongoing Managed Services Conference
to held from 22 June to 22 August 2007 across six
cities in the Asia/Pacific region.
Economies covered in the IDC Global
Delivery Index are Australia, Bangladesh, China, Hong
Kong, India, Indonesia, Japan, Korea, Malaysia, New
Zealand, Pakistan, Philippines, Singapore, Sri Lanka,
Taiwan, Thailand, The United Arab Emirates (UAE) and
Vietnam.
Leo V. Morada has more than 20 years
of professional IT management experience in the Philippine
ports industry. He can be contacted at email address
lmorada3f1@yahoo.com.
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