Friday, September 30, 2011

DOST at the forefront of Innovation in the Philippines

"Innovate or DIE"

Recent news at ABS CBN featured DOST saying that it a department at the forefront of innovation in the country.  Its efforts though has been largely unnoticed.

Silently, it has been sparking many important development among inventors and entrepreneurs.  We have a student now at the entrep elective whose job is to help inventors get on with new ventures and businesses.  One of their initiatives now is fighting dengue. (Take note:  it should be the Department of Health who should take the cudgels for this!)  They had this idea of releasing genetically modified mosquitoes (whose offspring will lose wings and lose ability to fly - with Oxytec) and the anti OL kit.  In some areas, they were able to bring down the cases of dengue from 300 to 0.  And the OL kit only costs Pl0.00@ wow.

That is why Sen. Lacson wants more budget for DOST.

Congratulations to DOST and to RBF.  More power.

"New ideas create more and better new products and services; create more wealth."

Thursday, September 29, 2011

Invitation to connect on LinkedIn

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From Carlito Galamgam, Jr.
Owner at Global Career Access Training Institute
Philippines
I'd like to add you to my professional network on LinkedIn.

- Carlito
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Wednesday, September 28, 2011

NU6: Paper 1 Community Based Forest Management by R090204

New Attitude/ Paradigm: Community-Based Forest Management

One of the statements that National Geographic used to describe the Philippines struck a chord. It said, "Poverty and deforestation mar the islands' many charms."[1] Filipinos have grown accustomed to this reality that we tend to be resigned to or are apathetic towards the wanting state of our country and our countrymen. Often times, focus is overly placed on the negative that many resources and strengths that the Philippines possess tend to be forgotten.

An article in the Philippine Daily Inquirer last Sunday served as a reminder and affirmation that a change in paradigm coupled with the right attitude and support can make a lot of difference. The article talked about the Young Innovators for Social and Environmental Development Association (Yiseda), a non profit organization from Maasin, Southern Leyte whose work focuses on reforestation, argo-forestry, animal raising and alternative livelihood.

Yiseda subscribed to the Community-Based Forest Management (CBFM) Program in that members were trained on reforestation and forest preservation practices and on the sustainable use of resources. Members of forest communities were equally trained on livelihood programs to provide for their basic needs, aid in poverty alleviation and prevent from the premature harvest of trees.

The article highlighted how the group proceeded to harvest mahogany trees from the 500 hectare land that it tilled for the past 19 years. Proceeds from the hardwood will flow back to the members of the community. To ensure continuity and protection of the forest, Yiseda committed to planting 300 seedlings for every tree that was cut.

CBFM not only aimed to address two of the most vital issues the country is faced with, poverty and deforestation, but it also allowed for a sustainable solution that is able to reconcile both areas of concern. Coupled with the right training and support system, much of the success of CBFM is anchored on collaboration (in the vernacular bayanihan), responsible stewardship, hard work, perseverance and a long-term mindset. The arduous wait for almost two decades is clear indication that this is no dole out and that it seeks to be a sustainable solution to an endemic problem.

Cognizant of how far back the program was initiated, the question of what we can now do as citizens of this country and residents of this earth comes to the surface. Although conceived many years back, there is still so much value on the program and its outcomes because it focused on something that is relevant. Now more than ever, the call to action should not only be one that is able to make a difference but one that is of relevance for peoples and for the world.

Creativity and innovation then should not only be applied in the context of businesses. More so, opportunities for positivism, for transformation and to think out of the box should also be harnessed to address social problems and concerns as what social entrepreneurs like Illiac Diaz and organizations like Yiseda have done.

NU 6 by MB What pisses you off at the mall? What do you suggest?

What pisses you off at the mall? What do you suggest?
By R090206


            With the current issue of the shooting at the mall, what really pisses me off right now is the security we have when we enter the mall. I pass by SM Megamall on the way to the office, when I'm having my dinner and on the way home. It really is a hassle when you have to wait in line as the security guards inspect each and every bag of each and every person.

           Personally, I feel that my privacy is being invaded. When I go to the gym and they have to inspect my gym bag, they even have to take out some of my personal items for them to see through. Even the backpack that I bring to the office, I have to open each and every pocket on it. What if I had some personal items on those bags? The security guard may not care, but how about my friend who is with me that now knows I carry this stuff?
           I'm not against inspection if it really helps keep the malls safe. But I think right now, they're overdoing it. It probably is an initial reaction to the shooting a few days ago. I think they're turning people out. I already know some people that would rather go to a separate restaurant than to have their dinner at the mall and lineup for the inspection. Some foreigner guests we have are surprised why the mall thinks it is like a bank or airport due to the level of security.
           The problem right now is how to tighten security and at the same time not inconvenience the mall goers.
            My first suggestion is to have a metal detector in which you could walk-through. These can be found in airports. Of course these things come with a hefty price. To cut the cost, they could put it only on those entrances where there is a lot of traffic. In other entrances, they can have handheld metal detectors in which trained guards can use to inspect the bags without actually taking things out of it. Mall owners can also require high traffic stores to have their own walk-through metal detectors.
           Second would be using dogs. The dogs can sniff out the gunpowder or bombs. The problem with this is it might scare some mall goers as mostly, these dogs are quite frightening.
            Third would be cameras. Mostly, malls already have these cameras but most of the time they're hidden. Some of these cameras need to be seen by people so that it will discourage them for any wrongdoing they might be thinking. Some cameras don't even need to work full time but their presence alone helps.

As an entrepreneur, we could come up with ideas based on the suggestions. First idea would be to think of a way to produce the metal detectors or x-rays. If someone could create a low cost product that fits this description, I think he would be a market leader in this industry. As there is a security threat, there is always a demand for the product. Second would be to have training center for dogs or to have them available for security threats. Mostly, canine are from the military but I think there is no law prohibiting private individuals in pursuing this line of work. Lastly, is to pursue a Security Agency which will provide the metal detectors, canine, cameras and others as part of their service.


A part of a skill set of an entrepreneur is turning something negative into positive. Though the event unfortunately caused some death, this can be also viewed as an opportunity if you looked at it in a positive way.

JC 1st NU6 paper Leon's Mangoes-

New product improvement (process improvement)
Leon Mangoes

I came from a town in Iloilo called Leon.  We are 28 kilometers from the City.  Our area is mostly mountainous or hilly.  Our town grows a variety of agricultural crops and we are popular in Iloilo as the town the produces the best and sweetest mango.

Department of Agriculture and the Western Visayas Integrated Agricultural Research Center (DA-WESVIARC) research show that our mango has a higher sucrose content than that of Guimaras, meaning- sweeter.  The quality of our mangoes is superior and are proven to be very marketable abroad.  Despite the known quality, our mango farmers subsist on minimal margin on their produce compared to to the mangoes farmers of Guimaras.  Why are Guimaras mangoes more popular?  Magnolia even launched a new limited edition "Guimaras Mango" flavored ice cream recently.  That opportunity should have been ours. My aim in this NU6 is to present a new idea on how we can generate more income from the quality mangoes that we have in our town. 

My idea is to form a cartel of Leon Mango growers.  I used the word "Cartel" because the rules within the organization I'm visualizing will be stricter that the ordinary farming cooperative.  To illustrate my idea, here are the basic steps i'm thinking:

1)  Get hold of a government or private grant that will support the research and development of creating the best quality mango possible.
2) Form a cartel / cooperative.  Recruit Mango farmers in the town. Highlight the yield they will get using your new mango growing technique and the price protection the cartel will offer.
3) Apply for a loan in Landbank,  Use the money to finance the first roll-out of the new technique
4)  Share the new technique to the cartel members and ensure that they follow the procedures.
5)  When harvest time comes,  the farmers will sell their produce to the cartel at a predetermined price.  This is where the price protection comes in.
6)  Cartel will obtain contracts from big companies (Nestle, Robinsons Supermarket, SM Supermarket, San Miguel Corporation etc.) by capitalizing on their ability to deliver the agreed quantity and the quality of the mangoes.
6)  Once they receive payments from these clients, they will use the revenues to pay up the loan in step 3,  pay the succeeding cost of produce of farmers in step 5, and pay for further research and development in step 1.  The remainder (net income) of the cartel will be distributed among the cartel members as dividends.

Graphical representation of these steps are shown in the attached file.

The general idea of this NU6 paper is to find a way of creating synergy among the mango farmers to allow them to get higher returns for their produce.  By creating a cartel, I am trying to create a structure that will market the product, acquire the needed knowledge and support from both private and public sectors, protect that knowledge, maintain quality of the produce and at the same time create unity and cooperation among the farmers.

To protect the cartel, if a farmer decides to sell his produce outside the cartel, he will automatically be kicked out of the organization thus denying him of the dividends, price protection and the further knowledge and developments on mango farming.


NU 6 by CTG, Serendipity Walk

Serendipity Walk
by: R090205

Ever since before, I was fascinated by the fact that many food kiosks have been successful food business. Anyone who wishes to venture into food business with small capital to invest, food kiosk is the one suited for this requirement compared to putting up a restaurant which needed higher capital thus exposing to a higher risk. Many of these food kiosks are usually located at high volume traffic of people like supermarkets, movie houses, bus and LRT/MRT stations and malls. As I observed, many of these food kiosks are innovated street foods before such as fish balls, popcorn, cotton candy, taho, siomai and even green mango/singkamas with bagoong which is a very recent concept.

I remember these foods when I was still young in which these were being sold only by vendors roaming house to house. I was motivated to wonder of other concepts that are not yet offered in the market. So as I roam around a certain mall, I thought of the following ideas for a food concept:

1.      Makisushi Rolls Pinoy Version

Japanese food inspired suited for Filipino taste with different varieties of Filipino dishes such as adobo presented in makisushi rolls.

2.      PutoPao

Puto inspired by siopao presented in well-presented packaging with different flavors.

3.      Bananaque and Kamoteque

The ordinary bananaque and kamoteque that are not on sticks instead will be offered as finger foods.  These will be sliced on bite size.

4.      Ice Buko and Ice Candy with various flavors

The well-known ice buko and ice candy are no longer be found nowadays. These products should be relaunched and repackaged in such a way that these can attract new market especially kids nowadays who are not familiar with these and at the same time those people who used to patronize these products before. 

Jonee Bilasano's NU 6 paper

The AGSB's New Clothes: A Constructive Critique

An NU6 Paper submitted to Prof. Jorge Saguinsin

By

JCB
(Student No. R090209)

Once there was an emperor who cared only about his own self-image. And since the emperor thought too highly of himself, he felt that he deserved to wear the finest clothes. Knowing that there was an opportunity, two tailors promised the emperor that he will get what he wanted.

After some time, the two tailors presented to the monarch the fabric, which they claimed to be so fine that it turned out to be invisible. The emperor, of course, couldn't see anything, but pretended that he did for fear of being unfit for his position. His court did the same.

And so the time came when the emperor had to go on a lavish parade. He then put on his new invisible clothes and walked as if he was indeed wearing the finest thing every sewn. The emperor's subjects amazingly played along and intimated that they also saw their monarch's new clothes. After some time, a child saw the emperor and said: "He's wearing nothing at all!" Everyone laughed. The emperor was embarrassed and knew that what the child said was true. But, instead of stopping or doing anything, he proceeded with to walk and finish the parade.

The story above is from Hans Christian Andersen's short tale entitled The Emperor's New Clothes. The story indeed has regaled and entertained a lot of children. Many have laughed because of its humor. But, more important, it teaches an important lesson. It imparts how an obvious truth can be ignored. This lesson is significant. In fact, the author thinks it's apt to where he is studying. He feels that the Ateneo Graduate School of Business has long ignored an obvious truth.

The Ateneo Graduate School of Business (AGSB) has long regarded itself as one of the best institutions of higher learning. In fact, it represents itself as one of the finest business schools around. Further scrutiny, however, reveals the truth.

The AGSB acts as if it is one of the best business schools in the world. Some of its professors walk the corridor as if they are sauntering through the halls of the Harvard Business School. Some AGSB's MBA students act as if they know everything about business simply because they attend the institution. These are all, of course, misguided. Because underneath all the glitter brought by carrying the Ateneo name, the AGSB actually does not rate well internationally. In fact, when perusing the ratings of MBA schools around the world, the only business school from the Philippines that registers is the Asian Institute of Management. With this realization, can the AGSB even claim that it is the best business school in the Philippines?

The author also laments the AGSB's failure to offer a Doctor of Business Administration (DBA) degree or a PhD in a specialized field in business. This is saddening because the lack of a DBA or PhD program is indicative of the state of research in the AGSB. Indeed, for a school of higher learning to be known internationally, it must prove itself in the realm of academics. And this can be done by churning out research after research, or the school develops new and cutting edge business concepts. Of course, the business school, to be a major player in the field, must publish many books.

Another factor that is keeping the AGSB from piercing the list of the best schools internationally is its lack of professors without PhDs or DBAs. This of course does not mean to say that those AGSB teachers who do not have PhDs or DBAs are incompetent. They are not. Almost all of the author's teachers, both past and present, are extremely capable. They are masters in their fields; they're extremely knowledgeable about what they teach. But, these professors can offer more if they have PhDs or DBAs. The lessons that they can impart will be so much better if they have these degrees. And if this happens, then the state of teaching will improve tremendously. Hopefully, once most AGSB professors learn the value of research, then some of them can take their places beside Michael Porter or John P. Kotter.

This exercise, as one of the choices in the author's entrepreneurship class, was supposed to be an essay about what pisses him off about the AGSB. Piss off is such a strong term. And that is not how the author actually feels. The author of course wants, just like any other stakeholder, to improve the AGSB. After all, he can never deny that the school has taught him so much. The author, so as not to be misconstrued, does not want to cast aspersions against the institution that undoubtedly is helping him develop into becoming a better manager.

The author therefore hopes and prays that the time will come when the AGSB will be mentioned in the same breath as the Harvard Business School, Stanford Business School, and University of Chicago Booth School of Business. But, this will only happen if the AGSB admits its shortcomings. By doing so, it can then evolve and move forward. Thus, the author hopes that the AGSB will finally shed its invisible clothes. They may be fine in the eyes of the school, but it isn't in the eyes of the author. And in this case, he apologizes for saying that the AGSB, while it strolls along, is actually naked. 

Tuesday, September 27, 2011

Bustaurants from Entrepreneur Magazine

"Innovate or DIE"

The food truck seems to be a hit also in US.  There was a group of Pinoys in LA featured in ABS CBN news who put up mobile silog business and it was a hit.  The entrepreneur magazine featured this new type of business in food service.  Here is the link

:http://www.entrepreneur.com/article/220401

Please read more:  (from Entrepreneur.com Magazine)

1. Food kiosks
Food kiosks are temporary booths or stands used to prepare and sell foods like pretzels, ice cream and hot dogs. The low overhead, flexibility and ease by which a kiosk can be opened and closed are among the reasons why they’re so popular. Because they are usually operating indoors, kiosk owners typically sign licensing agreements at malls, stadiums, movie theaters or other locations. Many major food businesses such as Ben & Jerry’s franchise express kiosks.
Related: Food Trucks 101 -- How to Start a Mobile Food Business
2. Food carts and concession trailers
This style of mobile food business has been around for decades and is a multibillion-dollar industry. Cart owners prepare food in advance or purchase ready-made food like ice cream bars. Then, the food is heated up or pulled from the freezer. Food carts used to focus on simple fare like ice cream and hot dogs, but have expanded their menus in recent years to include dishes like kebobs, gyros, salads, and fish and chips.

Food carts usually either have room for the vendor to be inside and serve food through a window, or they utilize all the cart space for food storage and cooking equipment. Concession trailers, on the other hand, are often found at fairs, sporting events, or other places where they can be unhitched and sit for awhile. Unlike most carts, trailers allow for cooking and have room for two or three people inside.
Carts are less expensive than food trucks, and are usually pulled by a vehicle or pushed by hand. They're fairly easy to maintain and, in many areas, require less licensing than the full-sized food trucks.
3. Food trucks
Larger than carts, trucks can carry more food and handle more business. However, food trucks need more space to park both when doing business and when off-duty.
A food truck can carry more sophisticated equipment for storing, serving, cooking and preparing foods. Food trucks can serve traditional quick lunch fare, be stocked with food from concessionaires, be run by a chain restaurant like In-n-Out or California Pizza Kitchen, or serve gourmet fare by an up-and-coming chef. They can do big business in corporate parks and places that have limited access to restaurants.
Related: A Retail Spin on the Food-Truck Model
There are two types of food trucks: the mobile food preparation vehicle (MFPV), where food is prepared as customers wait, and the industrial catering vehicle (ICV), which sells only prepackaged foods. An MFPV costs more than an ICV, and both cost more than a food cart. A used hotdog cart may cost under $2,500, while a retro-fitted used food truck typically costs $30,000 or more. A new MFPV could cost upwards of $100,000. Complying with additional health department rules and regulations can also drive up food truck costs.
4. Gourmet food trucks
Basically the same as a food truck, the gourmet food truck takes food quality to a higher level. Of the 4,000 food trucks licensed to do business in the Los Angeles area, only about 115 are considered gourmet. They are run by ambitious young chefs who offer cuisine not typically found in food trucks, such as specialty crepes, Korean-Mexican fusion, osso buco or velvet cupcakes. Many gourmet trucks have specialties and themes. In addition, they let their clientele know where they’ll be parked through their websites and social media sites like Twitter. While food trucks need not have kitchens, gourmet trucks are more likely to have food prepared on the spot -- and high-end food at that.
Related: How to Start a Food Truck
5. Mobile catering businesses
Mobile catering trucks are similar to mobile food trucks, but are hired for specific events. The client chooses food from a catering menu, and the truck then serves the food at the event.
The differences between catering trucks and food trucks are primarily in the manner of doing business. One particular advantage of a mobile catering business is you're not risking as much in inventory because you are cooking and bringing food as ordered for the party. You also have a specific destination, so you need not worry whether your favorite destinations will be busy or not.
6. Bustaurants
As the name implies, a bustaurant is not a truck but a bus, often a double-decker with the lower level for the kitchen and the upper level for customers to sit and eat. This is a new concept and hasn't really been proven yet, especially since the idea tests a rash of licensing issues. They also require more room to park, and are more costly to start because the buses need to be fully refurbished.
Related: Franchises Hop on the Food-Truck Trend





"New ideas create more and better new products and services; create more wealth."

Managing Creativity from Slideshare

"Innovate or DIE"








"New ideas create more and better new products and services; create more wealth."

NU6 by MG, Internet Lending

NU6 Paper (R01-8177)
published on www.marcguison.blogspot.com

New Business Idea: Internet Lending

We know for a fact that as of July 2011, total OFW remittances to the Philippines had already exceeded US$11 billion.   Even with the global economic slowdown in recent past, our hard working OFWs are still sending money to their families.  However, it is a common story that there are certain occasions where the family needs money urgently.  They need the money way before the OFW receives their weekly pay check.  This results to the family to borrow money from moneylenders that charge very high interest rates for short-term loans.

This is a story that I have heard several times from my clients who had resorted to borrowing from bombays who charged 20% interest for a 30 day loan!  They had to do it because their sons or daughters or parents cannot send the money when they needed it the most.

Hence, I thought of creating an online facility that will help bridge this problem.  Most OFWs, especially those in the United States, have credit cards.  They use that to make their daily purchases and they pay it off every pay day.  If their family needs money ASAP, my online facility will enable the OFW to send money by paying me via credit card for the loan that will be released to their loved ones. This internet lending will not charge interest rates as the risk of payment of the money is carried by the credit card issuer.  I will merely charge a minimum transaction fee for the processing of the payments, courier service and incidentals to the beneficiary.  

Basic requirements to run this internet business are:

1.  Approved internet merchant account from a reputable bank.
2.  Internet domain name and website that is accredited by Visa and MasterCard.
3.  Database that will gather the information of sender and beneficiary.
4.  A small call center that will verify information from the beneficiary and to determine preferred delivery method (each method will have a corresponding transaction fee)
5.  Effective E-marketing to introduce the company as a reputable business.

Prior to implementation, the company has to review the Anti-money laundering act and submit to compliance requirements of the SEC and BSP.  A full business plan can be created once the government approves the legality of this business.









NU IDEA#1 -by RO8023 Turning Waste Paper into Advantage

TURNING WASTE PAPER INTO AN ADVANTAGE  
By R08023

What pisses you off in your office? What must be done?

What is frustrating in the company that I work for is that we have a “hot desking” policy and yet, the amount of papers that you have to fill up for any approval is still very high. This result to a lot of paper lying around the office that ends up as trash.

“Hot desking” is a policy that does not assign any actual table to sales and marketing staff of Sony Philippines. The amount of available seats then at the office is reduced to about 50% only of the number of sales and marketing staff and these seats are signed up for once you are in the office. This policy encourages sales and marketing staff to be out of the office almost all the time and do their rounds in the market place where they actually need to be. This is a great and innovative solution to both a smaller work place and in encouraging higher productivity to sales and marketing staffs. However, my main problem here is that the amount of paper works one has to fill out for any request is still not reduced. In the end, one ends up with a pile of paper on his or her desk and since a sales and marketing staff really does not have any permanent seat in the office workplace, it ends up in piling up in the car or getting lost somewhere in the office. Worse, this goes against green policy where paper usage reduction is still not achievable to levels that we intend to comply with.

My solution to this is e-approval – which is not really something new since this has been a practice of a lot of companies now. A lot of companies are implementing this idea to reduce paper consumption for both cost cutting purposes and waste reduction programs. Here are some ways to better implement this program – at least in Sony Philippines:
a.)    Remove all paper forms in the office and instead, do it electronically. Develop an in-house program that is linked to the Intranet or to Outlook so as to make it very “customer” friendly. The main reason as to why there is much resistance in the use of e-approval and e-forms is that it ends up being more complicated and time consuming to do. By making it the only possible to get one’s approval done and making sure that it is very customer friendly to use will, I believe, will result to 100% employee compliance.
b.)     Encourage paper reduction through recognition. The use of the company’s printers should be monitored through global ID’s and award the top 5 people who has the least number of printer usage every month.
c.)     Allocate paper supply to make employees value their paper supply more.
d.)    Use of visual workplace to make employees be more aware of the value of paper reduction programs.
e.)    Invest in technologies to replace paper usage. A great example is the use of tablet which enables employees to bring their work to other places without having to print things.
f.)     Invest in tables which you can write on using pens and erase as quickly. This reduces the use of “scratch papers” because you can use your tables to write down quick notes.
A technology that I want to conceptualize and develop is a portable paper recycling machine that allows quick production of fresh papers from used, old ones. I am thinking of a contraption where in you throw all your papers in, gets shred and goes through a process of paper making similar to principles of the Fourdrinier Machine[1]. I was going through the Internet for a portable paper recycling machine, even one that can create low quality paper, but could not find any. In any case, a portable paper recycling will be a helpful concept to any business, even if it is only capable of producing low quality and quantity of paper.

Another possible option to encourage is the use of eco-friendly papers. It would be very helpful if we can come up with papers that are “washable” using water and special machines that clear it off anything written on it. Imagine having a supply of these eco-papers and after using these papers, are put on a specialized machine that “cleans” it of anything written on it and are recycled back for another round of usage.

These practices, investments and “future technologies” will ultimately achieve reduction on huge amounts of paper waste. The benefits of this are enormous for the company – even beyond the cost of buying new reams of papers for usage. For one, hot desking and storage facilities for documents can be reduced thus reducing space needed. Another is the claim to an environment friendly company which is increasingly becoming a strong preposition for many companies in an increasingly “green” society.





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China is Being Transformed from Imitator to Innovator?

"Innovate or DIE"


US Treasury Secretary Tim Geithner in another business article said China is agressively taking away copyrights and technology from US companies. However, the data from the quoted article suggests that China is increasingly becoming an innovator.

What do you think is right? Sec. Geithner, or this article?

The link:China from Imitator to Innovator?

"New ideas create more and better new products and services; create more wealth."

The full article:
The number of domestic patent filings in China increased at an annual rate of 35% from 1999 to 2006. But the reasons behind this ‘patent explosion’ are unclear. By compiling a new dataset of 20,000 Chinese manufacturing firms, this column shows that the explosion has been ignited by the ICT sector.

China’s economic success over the past three decades has been widely regarded as the result of its ability to produce manufactured goods at low cost, building on the availability of cheap labour and scale economies, while relying on existing (albeit in part advanced) technologies of production. China’s ability to upgrade its technology-base and its moving up the value-chain has been widely regarded as hampered by weak (intellectual) property rights enforcement (Zhao 2006). More recently, however, there has been increasing evidence that China is catching up fast in terms of scientific and technological innovation.
Strikingly, the number of domestic invention patent filings with the Chinese patent office has increased at an average annual rate of 35%, from around 15,600 to over 122,000 during the period 1999-2006 (WIPO Statistics Database, January 2011) – see Figure 1. This catching-up process is paired with strengthened statutory intellectual property rights protection (Park 2008) and a growing interest from policymakers in the role of intellectual property in fuelling domestic innovation by increasing foreign technology transfer and providing domestic firms with incentives to invest in R&D. Accordingly, the recently formulated National Patent Development Strategy (2011-2020) envisions an increase in the number of annual patent applications, including invention and utility patents as well as designs, from about 1.2 million in 2010 to 2 million in 2015. The plan also foresees a doubling of the number of patent applications filed by Chinese applicants overseas in the same timeframe.
At the same time, there is evidence to suggest that most of the innovation in China is of merely incremental nature and hence the corresponding patents protect “small incremental inventive steps” rather than substantive new technologies (Puga and Trefler 2010). While such incremental innovation may still be valuable and in fact account in large part for China’s growth success (Breznitz and Murphree 2011), the concern is that the recent strong increase in domestic patent applications is produced overwhelmingly by low quality inventions that may not even be ’new-to-the-world’, driven by the incentives put in place by the Chinese government to encourage patenting directly rather than indirectly through the promotion of innovation (The Economist 2010, Lohr 2011).

The ‘patent explosion’ explained

What is behind the recent Chinese patent explosion? Is China rapidly transitioning from imitating technology to producing genuine innovation? What impact does the patent explosion have on the Chinese economy and on the rest of the world?
While answers to these questions are of immediate concern to policymakers in China and beyond, their empirical investigation has to date been severely hampered by data limitations. Indeed, there were no data available for Chinese firms that included companies’ actual patent filings. We overcome this constraint and construct a dataset that contains domestic (SIPO) as well as US (USPTO) patent filings by about 20,000 manufacturing firms registered in China. We employ the data to chart the Chinese patent explosion and then further investigate the factors behind the patent explosion during the period 1999-2006 (see Eberhardt et al 2011).
Our answer to what is behind the Chinese patent explosion is unambiguous: a handful of companies in the ICT equipment sector account for the overwhelming share of patents, with this concentration considerably more pronounced for USPTO filings than for SIPO (Tables 1 and 2). Our analysis of the patenting decision and the patent productivity of Chinese firms reveals that firms patenting both in China and the US, which account for the overwhelming share of both SIPO and USPTO filings by companies registered in China, are very large, relatively young, more R&D-intensive than their peers, and strongly (but not exclusively) export-oriented – in short, true global players. For these companies, a substantial share of patents covers product innovation albeit of relatively low-tech character. Process innovations and combinations of product and process innovation covered by patents held by these companies appear to be technologically more innovative and potentially valuable. Hence, our results suggest that these few, patent-active companies are not merely ‘castles in the air’ inflated by Chinese public policy directed at increased patenting, but (at least to some extent) innovative companies highly integrated into the global economy. Does this imply there is evidence for wider technological take-off among Chinese companies? Our analysis suggests most likely not. Patenting is concentrated in a limited range of industries and even within these industries is undertaken by very few, albeit highly active, firms.

‘Red Queen Run’ or middle-income trap?

Recently, the broader debate over China's innovative prowess and potential development path has intensified. Some observers regard Chinese firms’ ability to stay close to the world technology frontier and to improve upon and adapt existing innovation as key to the country’s continued growth (Breznitz and Murphree 2011). Yet, there is concern that without the domestic development of genuinely novel product innovation that pushes the global technology frontier, China might get caught in a ‘middle income trap’ (The Economist 2011). Our analysis suggests that the reality most likely lies between these two views. Contrary to a genuine ‘Red Queen Run’, a number of Chinese companies appear to be truly innovative, potentially even pushing the global technology frontier in certain niches. At the same time, there are very few such companies, and some of the most active among them are foreign-invested. Most companies are thus likely to concentrate on incremental process innovation rather than the generation of ‘new-to-the-world’ innovation.

What next?

What is the likely impact of the patent explosion? In our view, it points to China becoming an economy that competes not only on cheap labour and sheer scale, but also in terms of innovation. However, not unlike other successful Asian economies at the equivalent point in their development, the basis for China’s transformation from imitator to innovator is relatively thin, with just a few truly global players.
Figure 1. The Chinese patent explosion at home and abroad: Patent filings by Chinese residents (in thousands of patents)

Data source: WIPO Statistics Database, January 2011.
Table 1. Top 10 companies in China patenting with USPTO (1985-2006)
Rank
Company
# of Patents
Share
Industry Affiliation
1
Hongfujin Precision Industry (Foxconn)
513
26.42%
Electronic computer (404)
2
Huawei Technology
399
20.55%
Communications equipment (401)
3
Fuzhun Precision Industry (Foxconn)
215
11.07%
Electronic computer (404)
4
China Petroleum Chemical (Sinopec)
161
8.29%
Crude Petroleum and Natural Gas Exploration (079)
5
Semiconductor Manufacturing International
126
6.49%
Electronic apparatus (405)
6
Futaihong Precision Industry (Foxconn)
100
5.15%
Communications equipment (401)
7
ZTE
61
3.14%
Communications equipment (401)
8
Lenovo
38
1.96%
Electronic computer (404)
9
BYD
33
1.70%
Automobiles (372)
10
China International Marine Containers
18
0.93%
Containers and metallic packages (343)

Other
278
14.32%


Total
1,942
100.00%

Notes: Share indicates the proportion of total USPTO patents filed by our sample of 20,000 manufacturing firms between 1985 and 2006. Chinese GB/T 3 digit industry codes are indicated in brackets.
Table 2. Top 10 companies in China patenting with SIPO (1985-2006)
Rank
Company
# of Patents
Share
Industry Affiliation
1
Huawei Technology
15,603
34.09%
Communications equipment (401)
2
ZTE
4,594
10.04%
Communications equipment (401)
3
LG Electronics Appliances Tianjin
4,244
9.27%
Household electrical apparatus (395)
4
Hongfujin Precision Industry (Foxconn)
3,710
8.11%
Electronic computer (404)
5
China Petroleum Chemical (Sinopec)
 1,977
4.32%
Crude Petroleum and Natural Gas Exploration (079)
6
Lenovo
1,137
 2.48%
Electronic computer (404)
7
BYD
835
1.82%
Automobiles (372)
8
LG Electronics Shanghai
775
1.69%
Communications, computers and other electronic equipment (409)
9
Baoshan Iron and Steel
756
1.65%
Ferrous metal smeltering and rolling (320)
10
Inventec Shanghai
711
1.55%
Communications, computers and other electronic equipment (409)

Other
11,423
24.96%


Total
45,765
100.00%

Notes: Share indicates the proportion of total SIPO patents filed by our sample of 20,000 manufacturing firms between 1985 and 2006. Chinese GB/T 3 digit industry codes are indicated in brackets.

References

Breznitz, Dan and Michael Murphree (2011), Run of the Red Queen, Yale University Press.
Eberhardt, Markus, Christian Helmers and Zhihong Yu (2011), “Is the Dragon Learning to Fly? An Analysis of the Chinese Patent Explosion”, University of Oxford, CSAE Working Paper 2011/15.
The Economist (2010) “Patents, yes; ideas, maybeEconomist.com, October.
The Economist (2011) “Beware the middle-income trapEconomist.com, 23 June.
Lohr, Steve. “When Innovation, Too, Is Made in China” (2011) New York Times, 1 January.
Park, Walter (2008), “International patent protection: 1960-2005”, Research Policy, 37(4):761-766.
Puga, Diego and Trefler, Daniel (2010), “Wake up and smell the ginseng: International trade and the rise of incremental innovation in low-wage countries”, Journal of Development Economics, 91(1):64-76.
Zhao, Minyuan (2006), “Conducting R&D in Countries with Weak Intellectual Property Rights Protection”, Management Science, 52(8):1185-1199.

This article may be reproduced with appropriate attribution. See Copyright (below).


 

Markus Eberhardt
Lecturer (assistant professor), School of Economics, University of Nottingham

Christian Helmers
Assistant Professor, Management Department, Universidad Carlos III, Madrid

Zhihong Yu
Research Fellow at the School of Economics, University of Nottingham



Electric Sports Car Made by Pinoy - from GMA News Video

"Innovate or DIE"

I am embedding a video on sports car EV (Electric Vehicle) Made by Pinoy.  EV are torqeuey are faster, and saves the earth from Global Warming.  Here is the video - proudly Pinoy (Philippine Made). Who says Filipinos are behind innovation?


For the latest Philippine news stories and videos, visit GMANews.TV

"New ideas create more and better new products and services; create more wealth."

Monday, September 26, 2011

The Grades Have Been Posted Under Comments

"Innovate or DIE"

Please take note that those who have submitted their assignments have been graded under comments.

Please blogsend your assignments for NU6 to jorge.saguinsin.jusgein@blogger.com

Thanks.  I hope you find this experimental methods of submitting assignments convenient, and saves ink and paper. (Planet friendly).  The feedback (grades) is instant. (RFE - rewards for efforts in biking)

"New ideas create more and better new products and services; create more wealth."

NU 6 by EV, Mystery Shopper

Introduction:
My idea started when I was in the US. Each restaurant is always striving to do their best to attract customers. The food industry is very fierce. Quality food and service is the key in getting business.
Situation:
In the Philippines, most of the time, there is no quality in the food and service served in restaurants and fast food. Sometimes, Filipinos don't care of quality food or service.
Great restaurants and fast food know the secret in attracting customers. It is by keeping the place clean, serving hot food and delivering on time.      
Problem:
To address food quality and service to all restaurant and fast food
Analysis:
The idea is not new but it is not implemented to a lot of areas. The information also is not available to public. In the US, they call this secret shopper. The objective of the secret shopper is to provide impartial feed backs of places they visit.
How will this affect quality of food? Restaurants rely on customer feedback to improve their service and food. It is their way of improving food quality. They can decide if they will serve other food type and provide better service to all their customers.   
This type of business will push all restaurants and fast food to better quality food and service. It will not only help the customers but help the nation in driving quality in everything.
Decision:
To implement this, there are a couple of items needed to accomplish. First is the mission and vision of the company. It has to be clear and concise to everyone why are they doing this. This will be the main driving force for the employees to buy in to the idea.
Second is the process. The process will crucial, specially, if you are trying to rate the establishment. It should be simple enough for the front line employee. Shown below is the process in providing feedback.
1.    As the secret shopper enters the establishment, they will start taking notes and rate them accordingly.
2.    They will start ordering the usual items or specialties of the store.
3.    The secret shopper will start rating in how the order was taken.
4.    In their service, the shopper will time the delivery of the product according to the promise it gave.
5.    When the product is delivered, rate the product according to their promise to their customers.
6.    The shopper can also rate various sections such as restrooms, table cleanliness and atmosphere. 
After gathering all the info from the target store, it is sent to the HQ of the establishment and published in the web for the public to see.
Third portion is the tools needed. A simple website that is easy to view. It can be published through social media such as facebook and twitter. These kinds of info what the customer looks to decide on their next spending.   
Execution:
The bulk of the operations come from the front line secret shopper. They should be impartial and educated individuals trained for these types of work.
Second is the systems operation. It would compose of internal systems such as email and external systems such as company web site.  
Capital is very minimal. IT operation of the company is another minimal cost. In my estimate, it would start below Php 1M. It would still qualify as a small business.
To sustainability, there are a couple of ways to do it. Sponsorships in the company website can be a source of income. There is an increase in internet advertising due the massive growth of users accessing the internet. Another source is paid subscription of companies would like to improve. Since there is a drive to provide good quality food and services, companies resort to this because customer feedback is not thorough. Unlike this method, secret shopper is impartial and has a complete list of items important to the inquiring company.
Conclusion:
Good food and service is the aim of this cause. We should demand more for our hard earned money. It will also drive restaurants and fast food in providing quality to the customers.
If this is successful, the secret shopper can extend its service to other industries that provide products and services. Samples of other industries are supermarkets, clothing stores, hotels and service stations.

Rl00092






Nu6 Idea by AC,New Business Idea/s for [Fashion] Bloggers







Nu6 Idea: New Business Idea/s for [Fashion] Bloggers

With the growing trend towards customization and on-demand business, personalized digital marketing has evidently grown over the past years. Traditional and mass marketing seem to have significantly lost its appeal to Search Engines, Campaign URL, Online VideoBanner/Pop-up Advertising and more recently, Digital Social Media Marketing (check out and watch Social Media Statistics 2011 <http://www.youtube.com/watch?v=3SuNx0UrnEo&feature=player_embedded>). Major brands such as Starbucks, Southwest Airlines, and Microsoft Bing have already leveraged their presence in Facebook by tapping Fans  and Friends of Fans, while the likes of Nokia, Procter and Gamble, and Summit Media have already explored Blogging for marketing.

Fashion labels are no different. With about 346 million people following blogs globally (as of Year 2008), Coach, Mango, Zara, Forever21 - among many others - have already commissioned fashion bloggers to exercise Astroturfing and take advantage of Stealth and Viral Marketing. But how come not too many bloggers have taken an advantage of making money out of their blog entries - out of their "mastery" of topics they choose to talk about? True, a blogger can and may be paid for Sponsored Links/Stories or even commissioned assignments, but hardly any blogger has actively marketed him/herself for "Expert Opinion-On-Demand". For instance, Tricia Gosingtian of Tricia Will Go Places <http://blog.triciagosingtian.com/>, a Philippine-based fashion blog with over 4 million page views from across the world, could probably make tons of money by offering practical fashion consultancy services. Imagine, if she were able to capture 25% of her audience and charge a meager Php1.00 for each of their online queries, she would still make about Php1,000,000.00. Cecille Zamora-Van Straten of Chuvaness.com <http://chuvaness.livejournal.com/>, could make tons more with over 23 million page views. For a peso (paid via Paypal, mobile money, credit card, deal coupon/vouchers, or credit points) aren't we just all in need of a good, personalized fashion advise?

Or why not create an "Online-Blogger's Garage-Sale"?  1. Consumers are 90% influenced by peer recommendation, 2. Blog followers get a lot of influence from bloggers they subscribe to, and  3. if there's anything that fashion bloggers have, it's a ginormous pile of old/used/unused clothes, shoes and accessories. What better way to re-organize the closet then than to make money out of each piece of clothing you try to dispose of? Nothing like eBay on your own blog.

R100027








NU6 - by ML, Locker Store Concept

New Business Idea: Locker store concept as an alternative or supplement to online selling
By: R100022

We are all probably aware of the online selling boom happening right now in the Philippines. These online sellers utilize a variety of websites to post and advertise their items for sale (ebay.ph, multiply.com, facebook.com, sulit.com.ph, etc.). There are many advantages to selling online—there is little to no fixed overhead costs, the effort required to keep the business running is minimal, and it allows sellers to reach a huge audience without the need for expensive advertising.

However, there are disadvantages to selling online as well. (1) Buyers are not able to see the actual items for sale which may cause them to hesitate from buying the products. (2) Shipping adds to the price of the products which makes buying items, especially cheaper ones, not appealing. (3) There is a delay before the buyer gets the purchased items, therefore buyers would not get the instant gratification involved with buying the item. And lastly, (4) fraudulent sellers discourage buyers from taking the risk to buy online.

My new business idea will eliminate the disadvantages of online selling while maintaining its advantages. This was actually inspired by a recent trip to Singapore. While perusing one of its many malls, I happened to stop by a curious looking store. This store had glass shelves with different sized compartments. Inside these compartments were the most interesting things: bejewelled iPhone cases, tiny character replicas and action figures, one of a kind collectibles, hand-made jewellery, etc. It was a "locker store" where individuals can rent a compartment (called a "locker") to house their wares for sale. I realized this business model may also work here in the Philippines. This is because sometimes, when online sellers want to boost their sales or meet up with buyers, they join weekend bazaars. Doing so allows them to create a physical presence for their online store. However, bazaars are temporary—most lasting only a few days, and joining one is labor intensive since the seller would have to be physically present to conduct business with customers. My idea is to put up a local version of a locker store with online sellers as target tenants.

I can get a store space at a mall for my locker store and rent out lockers to individual online sellers. I would have to do more research to figure out the optimal locker size but I would have to offer different sizes and configurations since Philippine online sellers sell a variety of items like clothes, books, shoes, jewelry, etc. For a minimal rental fee, sellers can get a small piece of prime selling real estate. I can provide merchant services like sales associates, credit card transactions, and sales monitoring. In exchange for these services, I will also ask for a small commission on sales. Sellers can use their lockers as an alternative or as a supplement to their online stores. Since I will be putting these stores in high traffic areas, sellers will be sure that they will get a lot of exposure to potential buyers even without online advertising. However, they also have the option to advertise their products online and redirect their potential buyers to their lockers. This allows buyers to see the actual product in person before deciding to buy it.

With this concept, overhead will remain small, there will still be virtually no effort needed to keep the store running, and sellers can still reach a huge audience. Aside from these, the disadvantages involved with online selling will also be eliminated making this a win win solution for both sellers and buyers.

What Do You Know about 3d Printing - How will it Change the Way we Design Products?

"Innovate or DIE"

From the Make it Magazine, there is a lot of mention on 3d printing.  What do you know about 3d printing? How is it going to change the way we invent and create/make things.

Here is a link to a Forbes article and try to know more.

http://www.forbes.com/sites/ciocentral/2011/08/17/how-3d-printing-will-change-absolutely-everything-it-touches/

Full text of the article:

Written by Robert “Buzz” Kross

Robert Kross: 3 dimensional.
The sudden buzz about 3D printing and its potential has triggered a deafening din in the media and elsewhere. Is all the hype realistic, especially since the ability to print objects made of plastics and various other materials has been around for about a decade? Will this prove a transformative technology? Will it revolutionize manufacturing or even medicine?
The answers: Yes, yes and yes.
Already, 3D printing has been refined to the point where digital models can be duplicated into physical prototypes or production parts that closely resemble mass-produced products in looks and function. And prices of 3D printers have declined substantially in the past five years, to as low as $1,000 from $400,000 five years ago.
As a result, myriad industries – from automotive (which already created the first 3D printed car) and aerospace to footwear and jewelry – have embraced 3D printing that creates objects by laying down successive layers of materials. The Wohlers Report, an annual in-depth study of the advances in additive manufacturing technologies and applications, estimates 3D printing will grow to become a $5.2 billion industry by 2020, up from $1.3 billion last year.
Indeed, the digital age is providing companies of all sizes – as well as individuals – with the means to design and make a product relatively inexpensively. In turn, these tools are transforming the role of the traditional factory. Soon – really – it will be possible to print out products at home ranging from appliance parts to shoes. You will be able to have that dishwasher part made just for you instantly. This promises to empower a new wave of design and customization fueled by our personal taste and imagination.
Already, Nike with its Nike iD services lets customers personalize and design their own Nike merchandise, down to their favorite colors and materials. Amsterdam-based Freedom of Creation, renowned for its lighting designs, has 3D-printed fixtures gracing the interiors of luxury hotels around the world.  Canada-based Weatherhaven, which supplies portable shelters, digitally explores and validates its custom designs without having to build physical prototypes. This saves the company up to $100,000 per shelter. As a result, yesterday’s factory is evolving into a global community of custom design and personal fabrication services. And manufacturers are creatively embracing the changes.
To be sure, the most revolutionary advances for 3D printing are probably a decade or more away. But as 3D printers continue to drop in price, much like color printer prices have fallen, it will not be long before the average tech-savvy household can afford a 3D printer. When that occurs, the dreams of inventors and entrepreneurs will be realized. They simply will build a 3D model of their breakthrough idea on their computer and click “print.”
Furthermore, they likely will produce final products, not just prototypes; 20 percent of 3D “prints” are final products today, and analysts estimate that percentage will climb to 50 percent within the next decade.
Already, the boundaries of 3D technology are widening substantially with the 3D printed car, the two-seat Urbee created by KOR EcoLogic of Canada. All of its body parts were made using 3D printers, including its glass panels. Scientists in Bristol, England, printed a fully functional bicycle in March and three months later, they printed a bikini, showing how easy it is to print unique products with the same manufacturing process.
This explains why the medical profession foresees a time when more sophisticated 3D printing will produce replacement organs or drug therapies. There is little question that the evolution of this transformative technology promises to ignite a new era of custom manufacturing.

"New ideas create more and better new products and services; create more wealth."