ICT products seen to boost income, revenues-A A +A
Sunday, July 6, 2014
ICT Davao Inc. is pushing for the development of the product side of the information technology (IT) sector, citing its major economic and business potential.
ICT Davao president lawyer Samuel Matunog said compared to the service side of the IT sector, ICT products have a bigger potential in generating income and revenues.
"The income generation level on the service side of the industry plateaus at a certain point, and will not increase by adding more personnel. Whereas, the revenue potential of products is exponential," he said in an email to Sun.Star Davao.
Matunog said this means that the more valuable the product or solution of an IT company, the more investment and revenue a company generates and/or attracts, without having to increase their workforce.
"Also, since it essentially is knowledge work, labor arbitrage does not work (or, jobs seeking low-wage locations)," he pointed out.
Matunog said the product side of the industry is more stable and sustainable, and its workers are not easily replaceable with workers in other locations in the world.
However, he said there are still a lot of hurdles that have to be addressed for the industry to develop fully, among them are: quality of team members, strength of the ICT ecosystem to support product development, coaching and mentorship, funding opportunities, developing a global mindset, co-working spaces, financing product development, and cost effective cloud-based platforms.
Matunog said they are doing their best to develop and enable new IT companies in Davao City to take the lead in developing IT products through various activities and initiatives. Some of those initiatives include the organizing of trainings and seminars and "ideation" activities.
He said another way to address the hurdles is through the establishment of incubation centers in universities in the city that will help develop the ideas and projects of IT students.
Other initiatives that are being employed by the IT industry to address the hurdles include: K12 program, adding 2 years to the high school curriculum, with a tech track; service management curriculum for colleges and universities; coding training for students starting in the high school level; bridge training programs; acceleration facilities in the communities; marketing, promotion and B2B engagement services through the Livelihood Exchange (LIVEX), IP protection; and networking and linkages among ideation/incubation/acceleration initiatives whether local, national and international.
Published in the Sun.Star Davao newspaper on July 07, 2014.