Friday, October 05, 2007 Product development support for Otop SMEs continues
TOP product development consultants from Manila as well as in-house trainers and marketing specialists from the Department of Trade and Industry (DTI) just recently finished the first phase of the three-stage product development (prodev) project for the One Town, One Product Small and Medium Enterprises (OTOP SMEs) in Region 9.
A total of 48 SMEs had been identified this year for product development support, eight of whom are from Zamboanga City, 14 from Zamboanga del Sur, 19 from Zamboanga del Norte, three from Zamboanga Sibugay and four from Isabela City in Basilan.
The identification of the SMEs for assistance is based on certain criteria such as its financial capability to execute and produce the designs into finished products, availability of raw materials, and the receptiveness and commitment of the beneficiary SME to implement the designs and to participate in DTI-initiated marketing events such as trade fairs where the products shall be exhibited.
The other primary consideration in the selection process is that it should be an OTOP-enrolled SME.
OTOP is an SME development strategy similar to the highly successful One Village, One Product (OVOP) project in Japan's Oita Prefecture under Governor Morihiro Hiramatsu in 1979.
Replicated successfully in other Asian countries, it was thereafter adopted as a priority economic program by the Arroyo administration in 2004.
Hermie Barreto-Cuevas, chief of the Industry and Investment Division of the DTI Regional Office 9, said this product development project is a continuing activity of the DTI.
"The problem with Region 9 is that we have too few new products that have a decided competitive edge over similar products of other regions. During trade fairs, we find the same products being exhibited over and over again. Thus, this ongoing prodev program to support our SMEs in this area where we are somewhat weak," Cuevas added.
Product development is a very costly undertaking, particularly when renowned Manila-based consultants are tapped - something that is beyond the reach of manyof the OTOP SMEs in the municipalities, Cuevas said.
Tapped for this year's product development activities are the consultancy firms of Raynor Zuleta and Rey Soliven.
Both firms have a string of awards in their credit for participating and winning in national and international events.
The same firms had been tapped by the DTI 9 in the past, the most recent of which was last year to introduce new product designs as well as create innovative labels for products showcased during the 15th Mindanao Business Conference held in Zamboanga City on August 31-September 2, 2006.
"The entrepreneurs are very appreciative of the government's concern to upgrade their skills and to keep them abreast of the latest designs and trends. Through persistent prodev efforts, I know we can produce more globally competitive products which the DTI can then help market through the agency's regular holding of local, national and international trade fairs, bazaars, market encounters and exhibits," Cuevas said.
Cuevas further disclosed that the second and third phases of the prodev will commence this coming November and is expected to be completed by end of April 2008.
The culmination is timed to coincide with the holding of the Zamboanga Hermosa Trade Fair in May 2008 at the Mega Trade Halls of SM Mega Mall in Manila.
As in the past, partner agencies of the DTI such as the DOST, Tesda, Dole, and BFAD as well as the LGUs are actively involved in all these OTOP prodev undertakings thus resulting in a more holistic, efficient and cost-effective delivery of services via a convergence of expertise and resources. (Lowell S. Vallecer/DTI 9)
