Republic of the Philippines: Strengthening Knowledge-Based Economic and Social Development (Financed by the Republic of Korea E-Asia and Knowledge Partnership Fund)

Technical Assistance Consultant’s Report

Project Number: 46234-001 September 2016

Republic of the Philippines: Strengthening Knowledge-Based Economic and Social Development (Financed by the Republic of Korea e-Asia and Knowledge Partnership Fund)

Prepared by Information Technology and Business Process Association of the Philippines Taguig City, Philippines

For Department of Finance

This consultant’s report does not necessarily reflect the views of ADB or the Government concerned, and ADB and the Government cannot be held liable for its contents.

Asian Development Bank Department of Finance Republic of the Philippines

COMPLETION REPORT

IT-BPM Ind ustry Knowledge Hub

Proje c t

TA-8164 PHI: Strengthening Knowledge-Based Economic and Social Development – 1 BPAP (46234-001)

Prepared by

Information Technology and Business Process Association of the Philippines Consultant (September 2016)

Information Technology and Business Asian Institute of Management University of the Philippines Process Association of the Philippines Open University

Table of Contents

I. Description 1.1 Rationale ...... 1 1.2 Background ...... 2

II. Expected Result and Outputs 2.1 Expected Result ...... 3 2.2 Output 1 (Outcome, Output, Activities) . . . . . 3 2.3 Output 2 (Outcome, Output, Activities) . . . . 3 2.4 Output 3 (Outcome, Output, Activities) . . . . 4

III. Delivery of Inputs and Conduct of Activities 3.1 Terms of Reference of Consultants . . . . . 4 3.2 Detailed Accomplishments ...... 4 3.2.1 Quarter 1 (Sep to Dec 2013) . . . . . 4 3.2.2 Quarter 2 (Jan to Mar 2014) . . . . . 7 3.2.3 Quarter 3 (Apr to Jun 2014) . . . . . 11 3.2.4 Quarter 4 (Jul to Sep 2014) . . . . . 14 3.2.5 Quarter 5 (Oct to Dec 2014) . . . . . 16 3.2.6 Quarter 6 and 7 (Jan to Jun 2015) . . . . 18 3.2.7 Quarter 7 and 8 (Jul to Dec 2015) . . . . 19 3.2.8 Quarter 9, 10, and 11 (Jan to Sep 2016) . . . 20 3.3 Changes Made During Implementation . . . . 21 3.3.1 Variation No. 1 ...... 21 3.3.2 Variation No. 2 ...... 22 3.3.3 Variation No. 3 ...... 22

IV. Evaluation of Outputs and Achievement of Outcome 4.1 Evaluation of Outputs ...... 22 4.2 Reports and Deliverables of IBPAP . . . . . 24 4.3 Monitoring and Evaluation Framework . . . . 25

V. Overall Assessment and Rating ...... 30

VI. Challenges Encountered...... 30

VII. Recommendations and Follow-Up Actions. . . . . 31

Annexes

Annex 1 : ADB and IBPAP Contract Annex 2 : Terms of Reference for Consultants Annex 3 : IBPAP Inception Report Annex 4 : AIM Thought Paper Annex 5 : TOR - Deployment and Pilot of Knowledge Hubs Annex 6 : TOR - Development and Implementation of MIS and Project Portal Annex 7 : TOR - Design and Implementation of eSMP Courseware Annex 8 : DOF Endorsement Letter to ADB Annex 9 : AIM Case Studies Annex 10-a : Contract Variation No. 1 Annex 10-b : Contract Variation No. 2 Annex 10-c : Contract Variation No. 3 Annex 11 : IBPAP Deliverable 1 Criteria for locating knowledge hubs and selecting beneficiary HEIs/SUCs

Annex 12 : IBPAP Deliverable 2 Overall strategy and roadmap for enhancing curriculum and instruction in HEIs including incentives and management systems design for the continuous improvement of curriculum and instruction in HEIs

Annex 13 : IBPAP Deliverables 3 and 4 Deliverable 3: Models and best practices for university-industry linkages including recommendations to address constraints for improving quality of services and achieving closer university and industry linkage

Deliverable 4: List of HEIs and international/regional institutions for twinning arrangements including a draft twinning arrangement or partnership agreement document

Anne 14 : IBPAP Deliverable 5 KH Business Case & Financial Model which was a deep dive of Deliverable 2

Acronyms and Abbreviations

ADB Asian Development Bank AdEPT Advanced English Proficiency Training AIM Asian Institute of Management BEST Basic English Skills Training BPO Business Process Outsourcing CEO Chief Executive Officer DOF Department of Finance DOST Department of Science and Technology GDP Gross Domestic Product HEI Higher Educational Institution HR Human Resource IBPAP Information Technology and Business Process Association of the Philippines ICT Information and Communications Technology ICTO Information and Communications Technology Office IT-BPM Information Technology and Business Process Management KH Knowledge Hub LMS Learning Management System M&E Monitoring and Evaluation NEDA National Economic Development Authority PDP Philippine Development Plan PDS Philippine Digital Strategy PSC Project Steering Committee SMP Service Management Program SUC State University and College TA Technical Assistance TOR Terms of Reference UPOU University of the Philippines Open University

I. PROJECT DESCRIPTION

1.1 Rationale

The Information Technology and Business Process Management (IT-BPM) industry in the Philippines has attained leadership in establishing a sizeable business process outsourcing (BPO) presence in Southeast Asia. Over the last ten years, the Philippine IT–BPM industry has grown at an impressive annual rate of about 30%. It is a major generator of jobs for skilled Filipinos contributing approximately 5% of GDP in 2011 and it is the Philippines’ third largest foreign exchange earner after tourism and remittances. In 2010, it has emerged as the number one provider of voice and the number two in non-voice related outsourced work in the BPM industry worldwide.

In its Roadmap, the Information Technology–Business Process Association of the Philippines (IBPAP) is targeting to achieve revenues of $25 billion or about 10% of the global IT–BPM 1 market .This revenue figure is projected to account for about 8% of GDP, potentially making it the second largest source of foreign exchange for the country.

Collectively, this goal translates to about 1.3 million direct employees by 2016 and approximately 3.2 million indirect jobs that include a sizeable number in the informal sector. Industry leaders are confident that its 2016 targets are within reach. The industry is embarking on a wide range of initiatives and strategies to sustain its competitiveness and success in the voice segment and consider expanding into non-voice services. To further drive the leadership, it will seriously consider diversifying in portfolio services and markets by focusing on higher value and more complex services including: software development and IT services, animation, game development, health care information management outsourcing, legal, financial and accounting services, and HR among others.

The government continues to give high priority to the development of the IT–BPM industry. The Philippine Development Plan (PDP) 2011–20162 and the Philippine Digital Strategy (PDS) 2011–20163 have identified major strategies to support the industry including: (i) developing public-private partnerships to promote both backward and forward linkages in the Next Wave Cities, (ii) enhancing investment promotion and ICT policy, (iii) harmonizing the educational system to the needs of the industry, and (iv) infrastructure support to address connectivity deficit and increase broadband coverage. Government invested heavily to address the skills–job mismatch and is putting attention to developing and sustaining the growth of a quality talent pool.

One of the key drivers for growth in the outsourcing industry, whether global or national is talent. It is acknowledged that the Philippine IT–BPM industry has been able to aggressively establish a solid position in the global IT–BPM market because of its service-oriented, English-speaking talent pool. The Philippines has the third largest talent availability among the world’s top IT-BPM centers, next to India and China, and leading Poland, Mexico, Egypt and Malaysia in annual tertiary graduates. ______

1Philippine IT–BPM Roadmap 2012–2016, © 2013 Information Technology Business Process Association of the Philippines and TeamAsia, published by the Department of Science and Technology–Information and Communications Technology Office (DOST–ICTO). 2 http://devplan.neda.gov.ph/index.php 3 http://www.icto.dost.gov.ph/index.php/philippine digital-strategy

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Major education reform measures are being instituted and supported including the K-12 program. While these educational reforms are designed to benefit the industry in the long run, it is expected that these will impact on the supply of talent in the short to medium term.

The industry hires only an average of 5% to 10% of applicants largely because of inadequate education and training that is suitable to a career in the IT–BPM industry. The problem in recruitment continues to increase further as the global BPM composition is now evolving dramatically. New and more lucrative market settings such as health information management are bringing opportunities for expansion in voice—and more complex and emerging services are being required in non-voice that is putting additional pressure on availability of quality talent. Many small and medium BPO firms who wish to participate in the IT–BPM sector are constrained by their ability to invest in training programs that will allow them to scale-up and compete with the multinational BPOs who already have established training programs and a well-developed talent pool.

1.2 Background

The Government of the Philippines requested through its Department of Finance (DOF) that the Asian Development Bank (ADB) provide capacity development technical assistance (TA) to address skills shortages in high growth industries such as the information technology – business processing management (IT-BPM) industry by aligning higher education curricula with international standards and labor market, while building on public and private initiatives. The TA Outcome is a replicable and sustainable system of ICT-enabled knowledge hubs for improved teaching and learning of IT–BPM industry-based curricula in higher education institutions (HEI). Three key Outputs will accomplish the Outcome of the TA:

i. Access to knowledge resources for teaching and learning IT-BPO courses, ii. Higher education curriculum and instruction enhanced, and iii. Partnerships with industries and academic institutions strengthened.

Three organizations have been identified and separately contracted by the ADB to work jointly for the implementation of the TA: IBPA – the umbrella organization of the IT–BPM industry that has pioneered in the development and delivery of industry-designed courses and plays a pivotal role in sustaining the rapid growth of the industry; the Asian Institute of Management (AIM) – that has a solid track record in development management and business management programs, and research; and the University of the Philippines – Open University (UPOU) – the only open university in the country, and the only distance education institution in Southeast Asia region that is offering 100% of its courses online. IBPAP is primarily responsible for managing the TA while ensuring closer university-industry linkage and sustainability of the TA benefits. UPOU is responsible for designing and deploying e-learning products for industry designed courses in HEIs and AIM will lead the TA knowledge management components (See Annex 1 for the Contract between ADB and IBPAP).

The Impact of the ADB TA which is funded by the Republic of Korea e-Asia and Knowledge Partnership Fund is improved alignment of higher education with the needs of the economy. The TA would greatly assist the development of the IT–BPM industry by providing alternative business models and scale-up mechanisms to support the continuous supply of qualified talent that it needs—and more importantly, strengthen the higher education system by introducing innovative and creative education programs that are relevant to the country’s competitive advantage in economic sectors like the IT–BPM industry.

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II. EXPECTED RESULT AND OUTPUTS

2.1 Expected Result

Details of the Outputs are presented below.

2.2 Output 1 (Outcome, Output, and Activities)

Access to knowledge resources for teaching and learning IT–BPM industry-based course increased.

Access would be increased through the following initiatives and actions: i. consultations with industry CEOs, HEIs and other stakeholders, ii. developing online learning modules and study guides, iii. courses for talent management development program, iv. developing the framework and business model for the pilot knowledge hubs, and v. identify and establish three (3) knowledge hubs.

The main Outputs from these initiatives would be: i. three (3) out of six (6) online service management program (SMP) courses available for use in the UPOU learning management system (LMS), ii. entry-level middle management program designed and developed by AIM, iii. framework and replicable business models for developing the pilot knowledge hubs prepared, and iv. three (3) pilot knowledge hubs established.

2.3 Output 2 (Outcome, Output, and Activities)

Higher education curricula and instruction enhanced.

Higher education curricula and instruction will be enhanced through the following initiatives and actions: i. run online IT–BPM courses for 900 faculty members and 3,000 students, ii. develop a certification and assessment framework, iii. certify/assess teachers and students who have completed the online courses, and iv. scale-up model for delivering IT–BPM courses documented.

The main Outputs from these initiatives would be: i. three (3) online courses offered to 900 teachers and 3,000 students of participating HEIs, and

ii. teachers and students who have completed the courses availed of, or completed certification /assessment.

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2.4 Output 3 (Outcome, Output, and Activities)

Partnerships between industry and academic institutions strengthened through the following initiatives and actions: i. prepare industry–academe partnerships and linkages framework, ii. prepare three (3) partnerships agreements between HEIs and industries, and iii. establish two (2) twinning arrangements between foreign or domestic HEIs.

The main Outputs from these initiatives would be: i. sustainable partnerships between industry and academe in the Next Wave Cities, and ii. at least two (2) twinning arrangements between foreign or domestic HEIs formalized for IT-BPM courses.

III. DELIVERY OF INPUTS AND CONDUCT OF ACTIVITIES

3.1 Terms of Reference for Consultants

The TA was delivered by one international and thirteen national consultants across the three partners. IBPAP, which was responsible for managing overall TA inputs and outputs including the sustainability of TA benefits, provided two person-months intermittent for the Lead Expert on Industry-Designed Education who worked closely with other TA consultants for the preparation of the strategy and roadmap for enhancing curriculum and instruction in the HEIs and other technical reports and five person-months intermittent for the Industry-based Education Specialist who were responsible for ensuring that the TA objectives and targets are met and overseeing and integrating all TA inputs and outputs.

AIM, which was the partner leading the knowledge management components, provided one International Knowledge Management Expert for seven person-months intermittent and a Senior Researcher for seven person-months intermittent who assisted the Knowledge Management Expert in the preparation of the benchmarking study and in preparing policy notes and reports.

UPOU was responsible for designing and deploying e-learning products for industry-designed courses in HEIs. It had the largest number of consultants and experts with a total of seventeen (17) person months.

See Annex 2 for the TOR for Consultants.

3.2 Detailed Accomplishments

3.2.1 Quarter 1 Accomplishments (September to December 2013)

The first quarter of implementation which was a start-up and mobilization period generally went smoothly. The implementation partners – IBPAP, AIM and UPOU commenced work on the TA with a kick-off meeting held on 24 September 2013. This meeting served to level off expectations, launch the inception phase and align individual implementing

4 | P a g e partner workplans. Regular weekly partners and parallel internal team meetings were conducted during the mobilization phase to ensure coordination and synchronization of activities among the different partners and teams. The three implementing partners mobilized their respective resource teams, set up management/monitoring, financial and personnel systems and identified equipment for procurement. Key mobilization activities undertaken also included the immersion of the AIM and the UPOU teams to IBPAP and industry firm operations and the preparation of the Inception Mission Report. In addition, the partners began preparations for the conduct of the first Project Steering Committee (PSC) meeting.

As outlined in the workplan, the majority of the activities undertaken in this reporting period were in support of Output 1 which is designed to increase access to knowledge resources for teaching and learning IT-BPM industry-based courses. Activities for Output 2 and 3 are planned to commence only in the succeeding quarters. IBPAP began developing the Criteria for Locating Knowledge Hubs and submitted the Consolidated Inception Report (See Annex 3). AIM drafted and submitted the IT-BPM Knowledge Hub Thought Paper (See Annex 4). UPOU commenced review of the first three courses of the Service Management Program (SMP) – BPO 101, Business Communications and Service Culture.

The tables below summarize the actual accomplishments of each implementing partner from September to December 2013.

Table 1: IBPAP Accomplishments (September to December 2013) Activities Accomplishments 1. Mobilization Office systems, accounting systems, MIS and project Set up Office Systems management systems identified and set up. HR resources allocated and list of equipment finalized. Identify resources and equipment Procurement Process initiated. 2. Conduct IT-BPM Industry Orientation/Immersion IBPAP made arrangements to do immersion in Accenture-Eastwood, one of the largest BPO operations in non-voice. The immersion took place on 21 November Identify industry firm and coordinate for 2013. A total of eight people from AIM and UPOU joined immersion, sign NDAs, Conduct immersion the program. Ten middle managers and staff joined in the discussion/People panel. An orientation workshop of ADB Project partners on IBPAP and SMP was conducted on 10 December 2013. Both AIM and UPOU were given access to GCAT, BEST, AdEPT and the SMP courses. In addition, the IBPAP Provide research materials and courseware Roadmap and Next Wave Cities documents were also provided. 3. General Project Management Activities Liaised w/ ADB, IBPAP internal stakeholders and Liaison/Coordination work and stakeholder Industry Associations to brief on project and solicit management inputs. Conducted regular weekly meetings w/ AIM and UPOU; Provide technical, admin and coordination participated in partners' briefing and workshops. A total support to UPOU and AIM activities of 20 meetings were conducted.

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Table 1: IBPAP Accomplishments (September to December 2013) Activities Accomplishments IBPAP organized a consultation workshop for HEIs, selected government education related agencies, and Consultation with IT-BPM CEOs, HEIs and private sector firms. The consultation was originally Other stakeholders scheduled for the 3rd week of December but had to be pushed to the 1st week of January, 2014 because of the holiday season. The PS Secretariat was organized and a long list of Set-up and convene PSC potential PSC members was identified. A short list of PSC candidates arrived and letters were Invite and finalize PSC members prepared to invite the members. 4. Conduct of PSC meetings Administrative and technical preparation for Venue selection and reservation, preparation of PSC 1st PSC materials, etc. commenced in December 2013. 5. Set-up and maintain Monitoring and Evaluation (M&E) process Framework for the systematic collection of data and Oversee, coordinate and integrate all inputs integration of inputs/outputs was designed. IT support for and outputs this process also defined. 6. Deliverable 1: Define Criteria for Knowledge Hubs Prepare final draft Prepared the draft Criteria for Knowledge Hubs. 7. Deliverable 2: Inputs to overall strategy and roadmap for enhancing curriculum and instruction in HEIs Scope for developing the overall strategy and roadmap Preparation of final Draft Roadmap paper finalized. Research phase commenced.

Table 2: AIM Accomplishments (September to December 2013) Activities Accomplishments 1. Start-up Human resource capacity and management systems Project Mobilization were organized.

An overarching plan to achieve the AIM deliverables was agreed upon. The researchers reviewed the TOR and realigned the deliverables, dates, and budget with Prepare Inception report and provide inputs pragmatic considerations, as well as real needs of the IT- to consolidated Inception Report BPM industry. Realignments were based on ongoing discussion and meeting with IBPAP team and a deeper understanding of the context of the IT-BPM industry and IBPAP's talent initiatives.

AIM researchers participated in activities initiated by IBPAP. Regular meetings and the other activities were Participate in immersion and other crucial in deepening AIM team's knowledge and mobilization activities w/ other implementing understanding of the IT-BPM industry. In addition, the partners activities enabled AIM team to build relationships with other stakeholders and implementing partners.

Table 3: UPOU Accomplishments (September to December 2013) Activities Accomplishments 1. Start-up Identified Support Staff and formed Project Management Support Team; Briefed the Project Management Support Project Mobilization Team and mobilized the UPOU Team of consultants (activities and schedule of deliverables).

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Table 3: UPOU Accomplishments (September to December 2013) Activities Accomplishments Prepare Inputs for Inception Report Prepared and submitted the Inception report for UPOU. Provide inputs to Consolidated Inception Provided inputs to the consolidated Inception Report. Report Participated in the IBPAP-SMP briefing and Accenture Undertake immersion in IT-BPM firms immersion activities organized by IBPAP. 2. Review and enhance IT-BPO industry designed courses Coordinated with IBPAP the collection of existing course materials under the Service Management Program (SMP) and started the review the three courses covered in the project. The review framework was also Review of existing SMP courses developed based on the overall objective of the project which is to increase the rate of hiring in the BPO industry from the current rate of 5-7%. The results of the review will be inputs to the course enhancement process. Coordinated with IBPAP for the collection of relevant materials for the enhancement of the current course Review of existing materials package. Relevant information through interviews and FGDs were also considered. Developed the research plan to gather student profile; selected and mobilized research teams; finalized survey instrument based on the information gathered and the Prepare target student profile initial plan for learner support services provision in consideration of the other deliverables (number of trained students and teachers). Provide IBPAP/AIM inputs for business Participated in the FGDs organized to discuss model sustainability and business models. 3. Deliver online courses Planned how the process documentation as well as other research component of the project will be done (what Conduct process documentation exactly will be documented; what will be the focus of research). Reviewed the ADB's policies on report submission; Submit monthly interim reports financial policies; etc.

3.2.2 Quarter 2 Accomplishments (January to March 2014)

During this period, several deliverables were completed and progress achieved in each of the three components. The completion of the 1st draft of the AIM Thought paper and the IBPAP criteria for Selecting Knowledge Hubs are two of the key deliverables that provide essential pillars for the development of the Knowledge Hubs (KHs). Both outputs will impact on the achievement of the scale-up mechanism and the final design of the KH business model that will house the IT-BPM courses that are being prepared by UPOU. UPOU completed its Learning Profile Research and have commenced review of the existing IBPAP courseware. AIM on the other hand conducted CEO/stakeholder consultations with at least five different IT-BPM sectors and IBPAP also conducted a workshop-consultation process as part of the process for drafting the Criteria for Locating Knowledge Hubs

From a governance perspective, the 1st Project Steering Committee meeting was successfully organized and held on 30 January 2014. Regular weekly meetings were held to ensure alignment and synchronization of the different activities of each component.

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As defined in the workplan, a substantial portion of the activities undertaken in this reporting period continue to support Output 1 specifically in developing the Business Model for operating and sustaining the KHs and in digitizing teacher training materials and study modules that will be incorporated in the KHs.

The tables below summarize the actual accomplishments of each implementing partner from January to March 2014.

Table 1: IBPAP Accomplishments (January to March 2014) Activities Accomplishments 1. Mobilization Procure Project equipment 3 laptops procured this quarter 2. Conduct IT-BPM Industry Orientation/Immersion Homegrown company identified (Pointwest Technologies Identify and request a homegrown IT-BPM Incorporated). Logistics and other arrangements in company to host an orientation/immersion progress. UPOU and AIM participated in discussions, UPOU able Coordinate for participation in IBPAP-HRCC to distribute questionnaires for learners profile survey: monthly meeting UPOU able to discuss with HRCC members and get inputs for defining target student profile. 3. General Project Management Activities Liaised w/ ADB, IBPAP internal stakeholders, Industry Liaison/Coordination work and stakeholder Associations and selected HEIs to brief on project and management solicit inputs. Weekly management meetings jointly or individually were Provide technical, admin and coordination conducted with AIM and UPOU to discuss activity and support to UPOU and AIM activities deliverable status and issues. IBPAP organized consultation workshop for HEIs, Consultation with IT-BPM CEOs, HEIs and selected government education related agencies, and Other stakeholders private sector firms for the Criteria Selection was conducted on January 6th. 4. Conduct of PSC meetings The PSC membership was finalized and invited for the Set-up and convene PSC 1st PSC meeting. 1st PSC meeting held on 30 January 2014 at F1 Hotel in Bonifacio Global City. 5. Set-up and maintain Monitoring and Evaluation (M&E) process Oversee, coordinate and integrate all inputs M&E work commenced. Outputs reflected in the design and outputs and monitoring framework that is included in this report. 6. Deliverable 1: Define Criteria for Knowledge Hubs Prepare final draft Completed the 1st draft ready for submission to ADB 7. Deliverable 2: Inputs to overall strategy and roadmap for enhancing curriculum and instruction in HEIs Preparation of final Draft Roadmap Started the research and consultations.

Table 2: AIM Accomplishments (January to March 2014) Activities Accomplishments 1. Deliverable 1: Thought Paper articulating an initial framework and proposition for knowledge hubs for the Philippine IT-BPO industry Review of literature was concluded and integrated into Developing the initial framework and the thought paper. Among the cases included was the propositions will entail reviewing the example of the Leaders for Global Operations (LGO), a literature on industry-university partnerships, partnership between the Massachusetts Institute of particularly the case of India, China, and the Technology (MIT) School of Engineering and the Philippines

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Table 2: AIM Accomplishments (January to March 2014) Activities Accomplishments Sloan School of Management and American multinational companies. Examples of industry-academe partnerships for up-scaling talent in IT-BPM Association were also cited. Finally, a case study of call center and HEI partnerships in the Philippines was provided. IBPAP lead education experts will be Partially accomplished. Discussions on IBPAP's past interviewed to gain an understanding of how experiences with university partnerships have been the current partnerships operate initiated. All documents and articles comprising the literature review will be analyzed in order to Completed. develop an initial framework for the knowledge hubs An extensive second revision was completed on the Integrate inputs from IBPAP and UPOU basis of lengthy comments by IBPAP and UPOU. Revise the thought paper Completed. Submit Final Draft Started the revision. 2. Deliverable 2: Case stories/studies represented by each IT-BPO sub-sector and final framework of knowledge hubs prepared A draft case study for the Gaming Industry has been Benchmark Study: The output for this part completed. Data gathering is complete for Software will be case stories/studies represented by Industry. Data gathering for the Call Center industry is each IT-BPO sub -sector and a final next to begin. A Draft Framework for the Knowledge framework of knowledge hubs based on Hub has already been proposed/included within the interviews and archival data Thought Paper. Developing the final framework and propositions will entail conducting interviews Seven interviews have taken place. Site visits have also with CEOs eliciting their insights and taken place. suggestions In addition, interviews with HR managers and executives will also be conducted to Started. elicit their insights and suggestions The interviews will be analyzed and Started. synthesized into case stories/studies Interviews, data gathering, site visits to IT-BPM offices as All interviews and archival data will be well as training institutions have started and will serve to analyzed and synthesized in order to further refine the framework for the Knowledge Hubs that develop a final framework for the knowledge have already been described at length in the Thought hubs Paper. Submit Final Draft Started the revision. 3. Deliverable 3. Host CEO Conference: Discussion with IT-BPO CEOs on the initial framework of knowledge hubs, and gaining commitment and support on creating and sustaining the knowledge hubs, as well as refining the framework and propositions based on CEO input CEO Conference: Discussion with IT-BPO The CEO Conference was redefined with the agreement CEOs on the initial framework of knowledge of IBPAP and UPOU in order to maximize the potential hubs, and gaining commitment and support results from the conference. In order to maximize the on creating and sustaining the knowledge inputs from the CEO's, the conference was deferred to a hubs, as well as refining the framework and later time which will allow better questions and better propositions based on CEO input prepare the format. Constant and regular consultation with Consultations have started - during interviews with industry based education experts on the industry experts and aspects of industry need have development of knowledge hubs framework partially been clarified through interviews. and the identified university partners

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Table 3: UPOU Accomplishments (January to March 2014) Activities Accomplishments 1. Review and enhance IT-BPO industry designed courses The review of the existing SMP course materials on going and research/gathering of other relevant materials Review of existing courses that will be useful I revising/enhancing the courses have started. A draft workplan on how to go about enhancing the existing course materials has been prepared. A survey research was conducted to determine the profile of the possible learners of the BPM courses being prepared. The survey was done online and offline. The online survey used google doc, the link for which was posted in the UPOU FB page. In the online survey, the purpose was to get respondents who will represent the Prepare target student profile following sectors/groups: undergraduate students who may be looking for a job while studying or after graduation; career switchers; and OFWs. The offline survey was done in selected HEI's in areas identified as NWCs. Write-up is submitted as part of this report for the results. Initial drafts of course outlines were prepared for the two courses: BPM101 and Business Communication during Finalize modular course outlines with the writeshop held on 6-7 March 2014 in Tagaytay City. learning objectives The multimedia materials to be integrated as lessons and assessment were also identified for discussion with the multimedia consultant. Participate in immersion activities organized Participated in weekly meetings and discussion. by IBPAP to gather more Attended the HRCC and the IBPAP consultation information/relevant enhancements of the workshop for defining the Criteria for Knowledge Hubs. course materials 2. Implement a program accreditation system A preliminary list of HEIs was prepared for the purpose. Further discussion with the Project Team (IBPAP and Mobilize HEIs AIM) will have to be done to come up with the final list of HEIs. An initial thought/concept paper was developed for this for presentation to the rest of the Project Team Review existing accrediting system members. Presentation, consultation and discussion is scheduled for next quarter. 3. Develop online learning modules and study guides Drafted the course module development plan for Finalize course module development plan BPM101 and Business Communication. Research on content for the courses BPM101 and Business Communication done. The research on content was matched with the observations and interviews/information gathered during immersion and Conduct research on content (cases) project team meetings as well as the skills/competencies being considered when hiring. Assessment mechanisms (both formative and summative) were also initially planned as well as the accompanying multimedia materials. Develop course materials (including learning Started conceptualizing learning activities for BPM101 activities) for 1st 3 courses and Business Communication. Started conceptualizing assessment tools/mechanism for Design assessment tools BPM101 and Business Communication. Started conceptualizing the multimedia materials which Produce multimedia materials (i.e., video, will be included in BPM101 and Business animation, graphics, etc.) Communication.

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Table 3: UPOU Accomplishments (January to March 2014) Activities Accomplishments Reviewed the course materials for BPM101 and Review course materials (instructional Business Communication from the instructional design design, language editing, content review) perspective; content vis-à-vis the planned assessment mechanism. Started revising BPM101 and Business Communication Revise course materials as per review course materials. 4. Deliver online courses Discussions have started to define the scope of Conduct process documentation documentation. Progress reports submitted to IBPAP; and for PSC Submission of Interim reports meeting.

3.2.3 Quarter 3 Accomplishments (April to June 2014)

In this quarter, AIM prepared a revised Thought Paper and continues to develop the case studies. UPOU commenced development of courseware for Business Communications (BusCom) and BPM 101. UPOU launched eSMP on 19 June 2014. Part of the launching ceremony was a press conference announcing the availability of the program. The launching ceremony was followed by enlistment for the two courses. UPOU took advantage of the opportunity brought about by the change in academic calendar schedules to advance the timeline for launching eSMP. Consequently, a substantial portion of the activities undertaken in this reporting period supported Output 2 specifically in digitizing teacher training materials and study modules for BusCom and BPM 101. The eSMP course site can be accessed at http://www.upoumodel.com/.

IBPAP lead the immersion of the project teams to a home grown company, identified and prepared IT-BPM industry senior managers who served as technical resources in delivering the course modules for the e-learning materials. IBPAP also continued to develop the draft Roadmap for enhancing curricula and instruction in HEIs. During this period, time was also spent to review and evaluate the framework for developing the knowledge hubs. Time was also spent to draft the proposals for identified activities that will add value to the existing scope of the project.

From a governance perspective, preparations were undertaken for the 2nd Project Steering Committee meeting that was originally scheduled for May 2014. However, the 2nd PSC meeting was postponed for July to accommodate the PS members’ schedules. The project partners utilized this time instead to get feedback and inputs from the PSC members who were present. Regular weekly meetings were held to ensure alignment and synchronization of the different activities of each component.

At the output level, activities leading to outputs 1 and 3 are on schedule with the exception of the preparation of the Business Model and the establishment of the knowledge hubs which are slightly delayed. Activities for Output 2 which covers the design and delivery of eSMP, however, are slightly ahead of schedule with two courses – Business Communications and BMP 101 ready for delivery in the next quarter.

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The tables below summarize the actual accomplishments of each implementing partner from April to June 2014.

Table 1: IBPAP Accomplishments (April to June 2014) Activities Accomplishments 1. Conduct IT-BPM Industry Orientation/Immersion Identify and request a homegrown IT-BPM Orientation design, admin and logistical arrangements company to host an orientation/immersion completed. Immersion of UPOU and AIM consultants in homegrown Conduct Immersion company (Pointwest) conducted on 30 April 2014. 2. General project Management Activities 15 Industry resource persons identified; assisted in the Courseware development inputs and QA for setup, coordinated and facilitated the video shoots for Courses 1(BusCom) and 2(BPM 101) BusCom and BPM 101. At least 4 shoot sessions conducted this quarter. At least 14 weekly management meetings jointly or Provide technical, admin and coordination individually were held with AIM and UPOU to discuss support to UPOU and AIM activities activity and deliverable status and issues; Coordinated with ADB/DOF and PSC members and participants. Date and agenda were finalized. Set-up and convene PSC Coordinated with ADB for venue and logistics. Briefing kits and materials prepared. 3. Conduct of PSC meetings Administrative and technical preparation for 2nd PSC meeting to be held on 21 July 2014 at ADB. All 2nd PSC PSC members are anticipated to attend the meeting. 4. Set-up and maintain Monitoring and Evaluation (M&E) process Oversee, coordinate and integrate all inputs M&E work commenced. Outputs reflected in the design and outputs and monitoring framework that is included in this report. 5. Deliverable 2: Inputs to overall strategy and roadmap for enhancing curriculum and instruction in HEIs Draft outline prepared; data gathering/research almost Development of the Outline and data gathering completed., one or two more consultation sessions with HEIs and Industry firms to be scheduled.

Table 2: AIM Accomplishments (April to June 2014) Activities Accomplishments 1. Deliverable 1: Thought Paper articulating an initial framework and proposition for knowledge hubs for the Philippine IT-BPO industry Revise the thought paper Completed the Thought Paper. 2. Deliverable 2: Case stories/studies represented by each IT-BPO sub-sector and final framework of knowledge hubs prepared Interviewed Mirshariff Tillah of PBed (April 7), Love Basillote of PBed (April 14), Jaideep Anil Pradhan of EXL Prepare for interviews with CEOs, HR on (May 22), Dan Reyes of GENPACT on (May 29), Jovy managers, university leaders, and university Hernandez of PLDT Alpha on (June 9), and Cynthia partnership director Maslian of GENPACT on (June 17). Additional interviews for academe respondents in the process of schedule finalizing Conduct the interviews Started the interviews. Analyze the interviews Analysis and synthesis of interviews have started. Develop the case studies/stories per sub- Development of cases has started. sector or per company 3. Deliverable 4. Establishing at least 3 industry-university Knowledge Hubs Discussions and negotiations with identified Identified potential university partners which will potential university partners will be discuss/review with IBPAP and UPOU in the next undertaken quarter.

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Table 3: UPOU Accomplishments (April to June 2014) Activities Accomplishments 1. Review and enhance IT-BPO industry designed courses Review and evaluation of BusCom and BPM 101 completed in early April 2014. This activity was originally Review of existing materials scheduled to be completed in the 1st quarter of the year. Additional time was required for the review because of the scope of the curriculum. Participated in weekly meetings and workshop for Provide IBPAP and AIM inputs for Business discussing the frameworks for the business model, the Model/University-Industry Linkages and linkages and twinning arrangements and certification and twinning arrangement framework accreditation process. Participate in immersion activities organized by IBPAP to gather more information Participated in the immersion to Pointwest at the Ayala relevant to the enhancement of the course TechnoHub in Quezon City on 30 April 2014. materials Participate in the ADB Inception Mission for Participated in all meetings during the mission proper the project held on 2, 3 and 9 June 2014. 2. Implement a program accreditation system Data gathering has started. Discussions with project Mobilize HEIs consultants have been initiated and will continue in the next quarter. Review existing accrediting system Accrediting system development has started. 3. Develop online learning modules and study guides Drafted the course module development plan and Finalize course module development plan multimedia development plan for BPM101 and Business Communication. Deploy Course Module Development Plan Deployed for BPM101 and Business Communication Initial gathering of reference materials and cases Conduct research on content undertaken. Develop course materials (including learning Conversion of IBPAP materials to e-learning materials activities) for 1st 3 courses completed for BusCom and BPM 101. Design assessment tools Completed for BPM101 and Business Communication. Produce multimedia materials (i.e., video, Production completed for BPM101 and Business animation, graphics, etc.) Communication. Review course materials (instructional Writeshops conducted to review course materials for design, language editing, content review) BusCom and BPM 101. Revise course materials as per review 1st phase of the revisions for BusCom and BPM 101 done Complete Online Materials 1st 2 courses Completed for BusCom and BPM 101 (including study guides/e-tutors training) 4. Deliver online courses Design of initial Learner Support System framework for Design learner support system BusCom and BPM 101 prepared Set up and maintain Learning Management Learner Support System for BusCom and BPM 101 set System and deployed as http://www.upoumodel.com/. Training conducted for 2 Industry tutors for BusCom and Training of Tutors for BusCom and BPM 101 BPM 101. eSMP was launched on 19 June 2014. Enlistment commenced on that date. There were about 1,000 Run Online Course as MOOCs (BusCom people who have responded and expressed interest to and BPM 101) enroll. Classes for these two subjects are scheduled to start on 26 July 2014. The eSMP site is located at http://www.upoumodel.com/. Conduct process documentation Started. Progress reports submitted to IBPAP; and for PSC Submission of interim reports meeting.

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3.2.4 Quarter 4 Accomplishments (July to September 2014)

During this period, the activities primarily focused on the launching of the first two eSMP courses UPOU commenced offering of Business Communications (BusCom) and BPM 101 on July 26,2014. A total of 390 enrolled in BPM 101 and 425 enrolled in BusCom. The pilot run for both course was planned for eight weeks.

IBPAP continued to develop the draft Roadmap for enhancing curricula and instruction in HEIs. Significant time was also devoted to review and evaluate the framework for developing the knowledge hubs. Internal and external stakeholder consultations were undertaken. In addition, three draft proposals for the use of the additional ADB TA funds were prepared by the IBPAP for new project activities which the consultants believed could add greater value to the overall project impact and which were within the existing project scope. These draft proposals will be presented to the PSC and the ADB during PSC meeting next quarter.

From a governance perspective, two PSC meetings were held this quarter. The 2nd PSC originally scheduled in June, 2014 was held on July 21, 2014. At that meeting, substantial discussions on the Knowledge Hub Framework and the draft proposals for additional project funding took place. The 3rd PSC meeting was held on August 29, 2014. At that meeting there was a follow up discussion on the Knowledge Hub with an agreement to have another meeting with AIM specifically to thresh out details and finalize the Business Model. The implementing partners also briefed the PSC on the activities during the last uarter. Regular implementing partners’ meetings were held to ensure alignment and synchronization of the different activities of each component.

At the output level, activities leading to Outputs 1 and 2 are on schedule with the exception of the preparation of the Business Model and the establishment of the knowledge hubs that are slightly delayed. Activities leading to Output 3 have been deliberately delayed by a quarter pending the results of the Business Model and the pilot run of the eSMP.

The tables below summarize the actual accomplishments of each implementing partner from July to September 2014.

Table 1: IBPAP Accomplishments (July to September 2014) Activities Accomplishments 1. Conduct IT-BPM Industry Orientation/Immersion Convene the Industry Council to review e- Structure, process and scope of review have started. courseware of BusCom and BPM 101 2. General Project Management Activities Consultation with IT-BPM CEOs, HEIs and At least three internal/external consultations supported Other stakeholders and and/or conducted. Fifteen industry resource persons were identified; assisted in the setting up, coordinated and facilitated the video shoots for BusCom and BPM 101. At least 4 shoot Courseware development inputs and QA for sessions conducted this quarter. An initial review by the Courses 1(BusCom) and 2(BPM 101) IBPAP Internal Quality Assurance team was conducted for BPM 101 and half of BusCom.

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Table 1: IBPAP Accomplishments (July to September 2014) Activities Accomplishments The results of the review were very positive. The addition of the interviews with industry practitioners that were done through video shoots enhanced the technical content of the courseware. It addressed some of the existing courseware weaknesses. Five industry resource persons identified; industry firms Courseware development inputs for Course defined. Video shoot schedule was delayed for the first 3 (Service Culture) quarter (Q1) of 2015 together with the two other courses to achieve greater efficiency in production. At least 14 weekly management meetings jointly or Provide technical, admin and coordination individually were held with AIM and UPOU to discuss support to UPOU and AIM activities activity and deliverable status and issues. Coordinated with ADB/DOF and PSC members and participants. Date and agenda was finalized. Coordinated Set-up and convene PSC with ADB for venue and logistics. Briefing kits and materials were prepared. 3. Conduct of PSC meetings Administrative and technical preparation for 2nd and 3rd PSC meeting was held on 21 July 2014 and the 2nd and 3rd PSC meeting 29 August 2014 respectively at the ADB. 4. Set-up and maintain Monitoring and Evaluation (M&E) process Oversee, coordinate and integrate all inputs M&E work commenced. Outputs reflected in the design and outputs and monitoring framework that is included in this report. Prepare Consolidated Quarterly Progress Q3 Progress report has been submitted to ADB. Report Prepare draft concept paper for the use of Three concept papers were drafted and submitted to the additional ADB funds PSC, DOF and ADB. 5. Deliverable 2: Inputs to overall strategy and roadmap for enhancing curriculum and instruction in HEIs Development of the Outline and data Draft of the Roadmap has been finalized to include a gathering proposed alternative KH Model .

Table 2: AIM Accomplishments (July to September 2014) Activities Accomplishments 1. Deliverable 1: Strategic Policy Note: Thought Paper articulating an initial framework and proposition for knowledge hubs for the Philippine IT-BPM Revise the thought paper Completed. 2. Deliverable 2: Case Studies/stories represented by each IT-BPO sub-sector and a final framework of knowledge hubs based on interviews and archival data Conduct the interviews Completed. Analyze the interviews Completed. Develop the case studies/stories per sub- Started the development. sector or per company Knowledge hub final framework has been drafted based Develop the final framework of knowledge on IBPAP requirements and guidelines to fit IBPAP hubs based on interviews and case studies needs but the draft is not yet presented to PSC, IBPAP and UPOU.

Table 3: UPOU Accomplishments (July to September 2014) Activities Accomplishments 1. Review and Enhance IT-BPM Industry-designed courses Review course materials (instructional Started. design, language editing, content review) Revise course materials as per review Started. Complete Online Materials 1st 2 courses Materials are being reviewed and finalized. (including study guides/e-tutors training)

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Table 3: UPOU Accomplishments (July to September 2014) Activities Accomplishments 2. Deliver online courses Preparation of the LMS to include the various plug-ins as specified by the course faculty like YouTube anywhere to make possible students recording themselves when taking exams, uploading the answers to the exam questions to YouTube and setting it to private so that Set up and Maintain Learning Management only the professors can see the material for marking System purposes. A guide on this was developed including a practice session. A guide was also developed on the use of google hang out. Another tool, academics, was also integrated into the course site to facilitate learners to connect with one another, form study groups and learn through social interaction. The two courses were initially offered: BPM101 and Offer/Run BusCom and BPM 101 as Business Communication. 2. Each of the 2 courses were MOOCs divided into 2 parts: (Parts 1 and 2) with each component/part to be offered for 8 weeks). Conduct evaluation/research on project Started. model Conduct process documentation Started. Progress reports submitted to IBPAP; and for PSC Submission of Interim reports meeting.

3.2.5 Quarter 5 Accomplishments (October to December 2014)

During this relatively short period, the activities primarily focused on completing the pilot run of the two eSMP courses - Business Communications (BusCom) and BPM 101- that were offered on 26 July 2014, reviewing these two courseware based on the delivery results, completing the KH Business Model and roadmap. Significant time was also devoted to review and evaluate the framework for developing the knowledge hubs. Extensive internal and external stakeholder consultations were undertaken. IBPAP developed the draft Roadmap for enhancing curricula and instruction in HEIs.

From a governance perspective, the fourth PSC meeting was held on 11 December 2014. At that meeting, discussions focused on the Knowledge Hub Framework and Model and the results of the pilot run of the eSMP courses. The implementing partners briefed the PSC on the activities and challenges during the last quarter. Regular implementing partners’ meetings were also held to ensure alignment and synchronization of the different activities of each component.

At the output level, activities leading to Outputs 1 and 2 are on schedule with the exception of the establishment of the KH which is delayed by two quarters. The project undertook preliminary activities leading to Output 3.

The succeeding tables summarize the actual accomplishments of each implementing partner from October to December 2014.

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Table 1: IBPAP Accomplishments (October to December 2014) Activities Accomplishments 1. Conduct IT-BPM Industry Orientation/Immersion Proposals for i) finalizing the design of the KH and piloting on KH, ii) development and implementation of the Prepare 3 Project Proposals for the use of MIS and Project Portal, and iii) design and development the ADB TA additional funds of 3 eSMP courses (Service culture, Systems thinking and Internship) were prepared and presented to the PSC . Copies of proposals are attached in Annexes 5 – 7. UPOU and IBPAP Project teams met with DOF to discuss proposal details after which the DOF endorsed Secure approvals for proposal the proposals to ADB for approval. The DOF endorsement to ADB is attached as Annex 8. Internal and external consultations for the establishment Consultations with IT-BPM CEOs, HEIs and of the KH conducted this quarter. Preparations for HEI other stakeholders and HRCC consultation for next quarter commenced this quarter. Courseware development inputs and QA – IBPAP internal QA team continue to do QA work on the 2 Course BusCom, BPM 101 courses (BusCom and BPM 101). 2. Conduct of PSC meetings Convene 4th PSC Meeting PSC meeting held on Dec 11, 2014 Administrative and technical preparation: 4th Administrative and logistics for PSC meeting requirement PSC meeting of the different PSC members done . 3. Set-up and maintain Monitoring and Evaluation (M&E) process Prepare Consolidated Quarterly Progress Draft Quarterly Progress report for July-Sept 2014 has Report started. Submission of Draft quarterly progress report was Submit Jul-Sep 2014 Quarterly Progress scheduled in January 2015 pending submission of Report and Workplan Quarterly accomplishment report of UPOU.

4. Deliverable 2: Inputs to overall strategy and roadmap for enhancing curriculum and instruction in HEIs Develop and finalize framework and IBPAP developed and finalized framework and business Business Model for KH model for KH. Preparation of draft roadmap Draft completed in November. Deliverable 2: Framework and Business Model for KH Submit Draft Roadmap was submitted by IBPAP in November.

Table 2: AIM Accomplishments (October to December 2014) Activities Accomplishments 1. Deliverable 1: Strategic Policy Note: Thought Paper articulating an initial framework and proposition for knowledge hubs for the Philippine IT-BPM Conduct workshop with PSC members 1 workshop conducted at AIM. 2. Deliverable 2: Case Studies/stories represented by each IT-BPO sub-sector and a final framework of knowledge hubs based on interviews and archival data Develop the case studies/stories per sub- 1st draft of 6 ITBPM stakeholders submitted (Annex 9) sector or per company Note: Contract of AIM with ADB ended in September 2014 but deliverables have not been completed.

Table 3: UPOU Accomplishments (October to December 2014) Activities Accomplishments 1. Implement a Program accreditation system Mobilize HEIs Preparations to mobilize HEIs undertaken

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Table 3: UPOU Accomplishments (October to December 2014) Activities Accomplishments Design appropriate accreditation system Started. Finalize Accreditation System Started. 2. Develop online modules and study guides Review course materials (instructional Started. design, language editing, content review) Online Materials for BusCom and BPM 101 completed. Complete Online Materials 1st 2 courses eTutor concept being revisited due to sustainability and (including study guides/e-tutors training cost issues 3. Deliver online courses Set up and maintain Learning Management Started. system Complete Part 2 of BusCom Completed. Offer BusCom Part 2 and BPM 101 Part 2 Completed for the pilot batch. Accredit/Certify those who will complete the 11 students certified this quarter BusCom and BPM 101 Conduct evaluation/research on pilot run and recalibrate to ensure higher enrollment Started. and completion rates Planning for the Training of Tutors/Training The mechanics for eTutors being reviewed. Draft TORs of Tutors prepared. Conduct Process Documentation Started.

3.2.6 Quarter 5 and 6 Accomplishments (January to June 2015)

The key deliverables during this period were the submission of the 3 major reports and the enhancement and completion of BPM 101 and Business Communication courses. Since the contract of AIM and ADB ended in September 2014, IBPAP assumed the remaining responsibilities of AIM. The eSMP was also disseminated through the Community eCenters and public library, which is outside the ADB project scope. This will help address learners’ issues such as connectivity and completion rate as this are local facilities available for community enrichment.

Accomplishments also include the completion of stakeholder analysis and consultation both on the industry and the academe counterparts. As UPOU builds the network in the supply side, IBPAP took charge on building the demand side organizing an Industry- Academe forum through its Human Resource Coordinating Council (HRCC) that provided UPOU a stage to bridge the raw talent resource that is available to the Industry that will require their involvement and participation which they- the industry HR representatives positively responded to.

The succeeding tables summarize the actual accomplishments of each implementing partner from January to June 2015.

Table 1: IBPAP Accomplishments (January to June 2015) Activities Accomplishments 1. Conduct IT-BPM Industry Orientation/Immersion Consultations with IT-BPM CEOs, HEIs and Completed the Stakeholder Analysis and consultations other stakeholders both on IT-BPM Industry and Academe counterparts. HEI Briefing Organized and conducted HEI briefing

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Table 1: IBPAP Accomplishments (January to June 2015) Activities Accomplishments Four (4) IT-BPM Industry-Academe Completed in Manila, Cebu, Laguna, and Clark Sessions 2. Deliverable 2: Inputs to overall strategy and roadmap for enhancing curriculum and instruction in HEIs Completion of the report Submitted the report to ADB . 3. Deliverable 3: Models and best practices for university-industry linkages Completion of the report Submitted the report to ADB . 4. Deliverable 4: List of HEIs and international/regional institutions for twinning arrangements Completion of the report Submitted the report to ADB. 2. Conduct of PSC meetings Convene 5th PSC Meeting PSC meeting held on July 2, 2015

Table 2: UPOU Accomplishments (January to June 2015) Activities Accomplishments 1. Implement a Program accreditation system Mobilize HEIs Preparations to mobilize HEIs undertaken

Design appropriate accreditation system Started. Finalize Accreditation System Started. 2. Develop online modules and study guides Review course materials (instructional BPM 101 and BusCom. SerCul enhancement has design, language editing, content review) started. Complete Online Materials 1st 2 courses Online Materials for BusCom and BPM 101 completed. (including study guides/e-tutors training Repository of these materials has started. eSMP was disseminated though Community eCenters Course Awareness and public library. Marketing e-SMP Ad was released via UPOU website 3. Deliver online courses Set up and maintain Learning Management Started. system Offer BusCom and BPM 101 BPM 101 and BusCom pilot completed. Accredit/Certify those who will complete the Started. BusCom and BPM 101 Conduct evaluation/research on pilot run and recalibrate to ensure higher enrollment Started. and completion rates Planning for the Training of Tutors/Training Developed the Teachers Module of Tutors

3.2.7 Quarter 7 and 8 Accomplishments (July to December 2015)

During this period, the deliverable originally assigned to AIM which IBPAP took was completed and submitted to ADB - Deliverable 5: KH Business Case & Financial Model which was a deep dive of Deliverable 2. Another key progress of the project was the exploratory work done with BPOCareerHub (owned by Teledev) on designing frames that will fill the content of a career hub website that presents the platform for the recruitment side of the Hub.

Additional deliverables were given to UPOU – enhancement of the remaining 2 courses of SMP, Systems Thinking and BPM 102. Other courses such as BPPM 101 and BusCom, were offered on-line. A total of 53 teachers and 1,310 students were trained. The

19 | P a g e enhancement of Service Culture was almost complete. In addition, the report on the profiles of the Target Learners was submitted.

It was also during this period that the project was almost complete as all minor activities were completed. See table below for the summary of accomplishment and remaining deliverables.

Summary of Accomplishment as of December 2015 Partner Deliverable Status Completion IT-BPM 101 and Business eSMP (3 courses: IT-BPM 101, Communication piloted and Business Communication, 80% delivered, Service Culture Service Cullture) under enhancement. UPOU eSMP (2 courses: Systems Systems Thinking and IT- 50% Thinking and BPM 102) BPM 102 under production. Certification and Certification and Assessment Assessment Framework 60% Framework drafted. Overall Project Management Reporting and Monitoring 80% QA for AIM and UP QA of Project Outputs 80% Outputs Deliverable 1: Criteria Submitted 100% Deliverable 2: Roadmap Submitted 100% Deliverable 3: Model and Best IBPAP Submitted 100% Practices Deliverable 4: Twinning Design Submitted 100% Deliverable 5: Knowledge Hub Submitted 100% Business Plan Design and sustainability Deployment of Pilot Hub 80% model drafted

3.2.8 Quarter 9, 10, and 11 Accomplishments (January to September 2016)

This period covered the completion of all pending deliverables and closing of the project. Integration of the KH organizational activities with the CHED Project closing to create continuity was done. Physical and on-line hubs were also completed. The on-line hub, which is currently live, included the MIS for the project.

Several Industry-Academe partnerships were also finalized where HEIs will be tied with an Industry Partner and will actually deploy the eSMP courses. All the materials for the 5 courses of SMP were completed as well.

Summary of Accomplishment as of September 2016 Partner Deliverable Status Completion IT-BPM 101 and Business eSMP (3 courses: IT-BPM 101, Communication piloted and Business Communication, 100% delivered, Service Culture Service Cullture) enhanced. UPOU eSMP (2 courses: Systems Systems Thinking and IT- 100% Thinking and BPM 102) BPM 102 completed. Certification and Certification and Assessment Assessment Framework 100% Framework presented to HEIs.

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Summary of Accomplishment as of September 2016 Partner Deliverable Status Completion Overall Project Management Reporting and Monitoring 100% QA for AIM and UP QA of Project Outputs 100% Outputs Deliverable 1: Criteria Submitted 100% Deliverable 2: Roadmap Submitted 100% IBPAP Deliverable 3: Model and Best Submitted 100% Practices Deliverable 4: Twinning Design Submitted 100% Deliverable 5: Knowledge Hub Submitted 100% Business Plan Deployment of Pilot Hub Completed 100%

3.3 Changes Made During Implementation

In September 2014, the contract between AIM and ADB ended but not all deliverables were completed. The concept for the Knowledge Hubs and draft framework for developing the business model originally assigned to AIM was not completed. To address this, IBPAP made available project resource time for completing the KH components and exploring other strategies for the hubs (Deliverable 5 of IBPAP).

Given this significant delay in finalizing the KH Model deliverable, it meant that there will be no time to refine and finalize the model, or to discuss and provide much needed technical inputs during the identification and deployment of the hubs or in forming the twinning arrangements. But IBPAP found other internal/external resources to help finalize the model and begin to deploy it given its limited technical expertise in this area and its budgetary constraint.

There were also three (3) Contract Variations made during the implementation (See Annex 10- a, 10-b, and 10-c).

Summary of Variations:

1. Variation No. 1 dated December 2, 2015  engaged the following new experts to render the tasks in the Terms of Reference;

Name Position Remuneration Rate Engagement Dates 17 Jun 2015 30 Florentino Destajo Dulce MIS Officer Php75,000.00 – Sept 2015 17 Jun 2015 30 Camille Rivera Basa Sr. Marketing Manager Php80,000.00 – Jun 2015

 increased out-of-pocket expenses as needed in the project;  changed the bank details in Clause 7(f) as follows: For PHP Account Number : 0061-0543-16 Account Name : IT & Business Process Association of the Philippines, Inc Bank Name : Bank of the Philippine Islands

Bank Address : G/F unit 1086 Glorietta Mall, Ayala Center, Makati City, Philippines

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Swift BIC/BEI : BOPIPHMM  extended the contract completion date from 21 November 2015 to 30 September 2016; and  increased the maximum amount contract payment by US$37,686 from US$127,313 to US$165,000 per revised Appendix C marked Variation No. 1 (2015-1222)

2. Variation No. 2 dated December 2, 2015  replaced Florexie F. Molina-Neo with Florentino Destajo Dulce, the current MIS Officer, for the Industry Education Association position at the same monthly remuneration rate of Mr. Dulce as MIS Officer;  engaged Ryan Hansen-Reeder as National Writer at a monthly remuneration rate of Php.44,500 to render the tasks in the Terms of Reference;  increased staff inputs to render the tasks in the Terms of Reference;  increased the maximum contract payment by US$45,000 from US$165,000 to US$210,000 per revised Appendix C marked Variation No. 2 (2015-2146).

3. Variation No. 3 dated August 31, 2016  changed the authorized representative of the firm from Ronald Arambulo to Benedict Hernandez;  replaced the Industry Education Specialist with Ana Maria Bongato, the current Lead Expert on Industry Design Education at the same monthly remuneration rate of Ms. Bongato as Lead Expert on Industry Design Education;  engaged the following replacement National Experts from 01 August 2016 to 30 September 2016:

Name Position Remuneration Rate Jopat M. Lelay Industry Education Association Php75,000.00 Marizel A. Galapon Project Support Staff Php58,193.00

 varied the contract per revised Cost Estimates marked Variation Order No. 3 (2016- 1711).

IV. EVALUATION OF OUTPUTS AND ACHIEVEMENT OF OUTCOME

4.1 Evaluation of Outputs

Output 1: Access to knowledge resources for teaching and learning IT-BPM Courses increased

Creating the materials and digitizing the 5 eSMP courses were completed:  BPM 101  BPM 102  Business Communication  Service Culture  Systems Thinking

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Business Communication and BPM 101 were offered on-line but the remaining 3 eSMP courses were not because of the pending process of certifying the participants electronically. The UPOU Networks which is the on-line resource repository hub has been redesigned to accommodate the materials for the 5 eSMP courses. With this, both teachers and students who are interested in teaching or learning the IT-BPM Industry- based courses may access the program thru the UPOU repository hub.

To create an institutional framework for continuously designing, testing and rolling out talent programs such as the eSMP courses, make available to various stakeholders industry information or data including employment opportunities and research results, and development and dramatically align the higher education curriculum with both international standards and labor demand, a study on the Knowledge Hub (KH) business case and financial model was prepared and submitted to ADB (Deliverable 2 and 5 of IBPAP).

The KH seeks to support improvement in the alignment of higher education with the needs of the IT-BPM industry. It will have a central role to play specifically in driving the continuous process for generating and sustaining talent development programs and courses.

The first KH was developed and can now be accessed on-line thru the SMP website (http://servicemanagementprogram.ph). Following this, the physical hub was placed at the IBPAP office, Bonifacio Global City, Taguig. In general, Output 1 was accomplished successfully.

Output 2: Higher Education Curricula and Instruction enhanced

The framework/mechanism of the Accreditation system for the IT-BPM courses in HEIs/SUCs was developed and presented to the schools. It was then revised in coordination with some partner HEIs who are willing to try different models that UPOU has developed with the program.

As of January 2016, UPOU has conducted both face to face and on-line models where 53 teachers from 25 schools were trained and 1,310 students were able to complete the program. For the teachers’ certification, the module on Blended Teaching was conducted. It was a face to face training and allowed them to learn how to use the materials and teach the course and assess the learners.

Currently, there are still several teachers and students taking the courses on-line and the numbers will be presented in a separate report.

Taking everything into account, Output 2 was successfully achieved.

Output 3: Partnership between Industry and Academic Institutions strengthened

One of the key components identified under the TA to improve higher education curricula specifically for the IT-BPM sector is to build and support stronger industry-academe linkages so that the academe can better contribute to addressing the IT-BPM talent supply gap.

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To help achieve this output successfully, a partnership framework was developed which was specified in Deliverable 3 of IBPAP.

Many efforts in Industry-Academe partnerships in the Philippines have been initiated by both state and private universities. Majority of the partnerships were created primarily to secure training and employment for students and graduates, to increase the responsiveness of the schools’ curricular offerings to industry needs and to secure physical resources or technology

Several MOAs have been signed between the IT-BPM companies and the schools and some are still in review and in progress.

Output 3 was successfully accomplished as well except for the twinning arrangement. On-going discussions relating to this are still in progress and schedule of actual deployment of this deliverable has not yet been determined.

4.2 Reports and Deliverables of IBPAP

A. IBPAP submitted the following Reports:

i. An Inception Report The purpose of Inception Report was to set out a clear strategy and way forward for the implementation of the TA and to specify various implementation activities, timeframes and outputs of specific tasks for the project. This inception report outlined: the approach and methodology, an organizational chart, consultant’s schedules, budgets, and the Terms of Reference (TOR) for the three implementing partners (Submitted by IBPAP to ADB on November 15, 2013).

i. Quarterly Reports Quarterly reports were submitted to ADB on a regular basis. This reports allowed ADB to be updated on the status and progress of the project every quarter.

ii. A Summary Report of each Deliverable Summary Reports of each deliverable were already included in the actual Deliverables (See details below on each Deliverable)

iii. A Draft Completion Report This whole report serves as the draft completion report.

B. IBPAP completed the following Deliverables:

i. Deliverable 1: Criteria for locating knowledge hubs and selecting beneficiary HEIs/SUCs (Annex 11).

From a project perspective, this study follows on from the AIM Thought Paper on the Knowledge Hubs. It will serve as an input for the preparation of the overall strategy and roadmap for enhancing curricula and instructions in HEIs/SUCs designed to meet the labor supply needs of the IT-BPM industry and other follow on studies intended to improving the quality of services and achieving closer university linkages, for example. It

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shall also provide direction for developing models and defining best practices for the continuous improvement of curriculum. More importantly, it will be used as the primary basis for identifying the three pilot Knowledge Hub sites for the project.

ii. Deliverable 2: Overall strategy and roadmap for enhancing curriculum and instruction in HEIs including incentives and management systems design for the continuous improvement of curriculum and instruction in HEIs (Annex 12).

This paper is designed to establish a KH framework that is suitable for the IT–BPM sector, and define a proposed road map and timeline for the establishment of the IT– BPM knowledge hub project. It identifies critical technical, organizational, financial and administrative requirements in the development, operation and management aspects that are necessary to support the initial implementation of a KH.

iii. Deliverable 3: Models and best practices for university-industry linkages including recommendations to address constraints for improving quality of services and achieving closer university and industry linkage including an assessment of the capacity of HEIs to supply the BPM talent needs and; iv. Deliverable 4: List of HEIs and international/regional institutions for twinning arrangements including a draft twinning arrangement or partnership agreement document (Annex 13).

Both deliverables 3 and 4 covered the overall framework for thinking strategically about Industry-Academe partnerships for improving the quality of services and achieving closer university and industry alliances for the IT-BPM sector, recognizes different factors that impact on different relationship stages from a strategic perspective and also considers the depth of collaboration and synergy taking into account factors in the environment, membership characteristics, process and structure, communication, purpose and resources.

v. Deliverable 5: KH Business Case & Financial Model which was a deep dive of Deliverable 2 (Annex 14).

This is the second part of Deliverable 2 which discusses at length the overall framework and technical model, organizational design and where the hub is envisioned to be between 3 -5 years after implementation. It serves as a roadmap for frameworks, models and activities starting from its development phase to full operation in the medium to long term. This document will present a snapshot of the developmental and organizational phases from startup through its 3rd year of operation.

4.3 Monitoring and Evaluation Framework

Monitoring and evaluation framework describes the indicators that are used to measure whether the project is a success. This increases the understanding of the goals and objectives and defines the relationship between factors key to implementation, and articulates the internal and external elements that affect the success of the project.

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Monitoring and Evaluation Framework (Design Summary)

Performance Targets and Data Sources and Reporting Design Summary Assumptions and Risks Indicators with Baselines Mechanisms Outputs Business model for operating and Annual reports of partner Assumptions 1. Access to knowledge resources sustaining the knowledge hubs industries  HEIs and partner industries for teaching and learning IT-BPM developed by 2015. providing continued institutional industry-designed courses support. Increased. Digitized teacher training materials and study modules incorporated in  Faculty members and students the knowledge hubs by 2015. motivated to improve their knowledge and skills.

2. Higher education curricula and 900 faculty members from Annual reports of participating Risks instruction enhanced. participating HEIs, of which at HEIs (H) SMP is not integrated in the least 50% are women, completing HEI curricula offering because online teacher training programs recurring costs for e-learning on IT-BPO industry designed materials are not budgeted. courses by 2016. (H) SMP deployment may be disrupted because of poor 3000 students, of which at least bandwidth or IT access of the 50% are females, complete online school. learning modules and study (M) Service Level and delivery guides on IT-BPO industry- timelines of the implementing designed courses by 2016. partners are unsatisfactory or the working relationship between the 3. Partnerships between industry At least three partnership TA progress report implementing partners becomes and academic institutions agreements involving HEIs and difficult. strengthened. industries signed by 2016. (H) HEIs not amenable to or not aligned with integration of SMP or At least two twinning TA progress report ITBPM courses in their system. arrangements between foreign (H) Non-acceptability of online and domestic HEIs established by courses and certification by large 2016. IT-BPM players.

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Monitoring and Evaluation Framework (Outputs)

Activities and Milestones Project Targets Consolidated Project Performance OUTPUT 1 1.1 5 IT-BPM on-line courses Develop materials for 5 IT-BPM courses and offer them UPOU were able to complete and digitize all 5 IT- on-line. BPM courses: Business Communication, Service Culture, BPM 101, BPM 102, and Systems Thinking.

1.2 Entry level middle Create a program for registration and enrollment. UPOU designed the middle management program management program that will allow the teachers/students to register and enroll.

Deliver on-line courses UPOU offered the Business Communication and BPM 101 on-line.

1.3 Business model of Knowledge Prepare strategic Policy Notes: Thought Paper AIM unable to resubmit the revised and updated Hub articulating initial framework and propositions for version of the Thought Paper. IBPAP conducted knowledge hubs for the IT-BPM industry. intensive research and consultation and prepared the Knowledge Hub framework and business model.

Case studies/stories represented by each BPO sector. Transcript of meetings with IT-BPM stakeholders presented. Draft case submitted by AIM.

Preparing the criteria for locating knowledge hubs and Criteria documents submitted by IBPAP in 2014. selecting beneficiary HEIs/SUCs.

1.4 Pilot hubs deployed Establishing industry-university knowledge hubs. The on-line hub was designed and created by IBPAP and can be accessed at http://servicemanagementprogram.ph

Physical hub is located at the IBPAP office.

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Monitoring and Evaluation Framework (Outputs)

Activities and Milestones Project Targets Consolidated Project Performance OUTPUT 2 2.1 Run eSMP courses Review and enhanced courses. UPOU completed the enhancement of all 5 eSMP courses.

eSMP courses offered on-line. As of January 2016, 53 teachers and 1,310 students completed the program. There are still on-going classes as of this date.

2.2 Certification and assessment Develop and complete certification process and The framework/mechanism of the Accreditation framework assessment framework. system for the IT-BPM courses in HEIs/SUCs was developed and presented to the schools.

It was then revised in coordination with some partner HEIs who are willing to try different models that UPOU has developed with the program.

2.3 Certify and assess Certify teachers and students who completed the on- For the teachers’ certification, the module on line training. Blended Teaching was conducted. It was a face to face training and allowed them to learn how to use the materials and teach the course and assess the learners.

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Monitoring and Evaluation Framework (Outputs)

Activities and Milestones Project Targets Consolidated Project Performance OUTPUT 3 3.1 Partnership framework Develop a partnership framework. IBPAP submitted Deliverables 3 and 4 which covered the overall framework for thinking strategically about Industry-Academe partnerships for improving the quality of services and achieving closer university and industry alliances for the IT- BPM sector.

3.2 MOA signed At least 3 MOAs signed between the school and an IT- There were several MOAs signed and are still in BPM company review and progress as of this moment.

3.3. Twinning arrangement At least 2 twinning arrangements with foreign or local On-going discussions relating to this are still in HEIs. progress and schedule of actual deployment of this deliverable has not yet been determined.

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V. OVERALL ASSESSMENT AND RATING

In general, the Knowledge Hub project was successful. UPOU was able to complete the materials and digitized the five (5) eSMP courses and were made partially available on-line. It has attracted mounting interest from local as well as overseas students. A repository hub for these courses was also developed by UPOU and was linked to the Knowledge Hub.

On the other hand, IBPAP submitted the Knowledge Hub Framework and Business Model to ADB. Following this, IBPAP was able to deploy both on-line and physical knowledge hubs for these eSMP courses.

Partnerships between the HEIs/SUCs were also accomplished to further strengthen the conduct of both e-SMP and SMP courses that will address the talent supply gap in the IT-BPM industry, which is the primary objective of the project.

VI. CHALLENGES ENCOUNTERED

The project was originally intended to have been completed over a twenty six (26) – month period from September 2013 to November 2015. But challenges were encountered along the way that resulted to difficulties and delays such as the following:

Additional Deliverable. A key contributor to the TA was not able to accomplish its deliverables, including Knowledge Hub Business Model and Framework. To address this, IBPAP assumed the responsibilities for this particular task.

Financial Approvals. Requests for additional funds were made by IBPAP in order to address unanticipated additional work. Due to the nature of the funding of a Technical Assistance project, funds were released after due process, which was unfamiliar to IBPAP and exacerbated initial delays as mentioned in the Assessment Report.4

Limited Human Resources. In the beginning of the project, IBPAP was already challenged to assemble the team necessary to complete its own responsibilities and with the addition of the deliverables from AIM, it became more challenging as the team members needed to exert more effort to complete their tasks.

Decision delays. Meetings with the Project Steering Committee (PSC), composed of Industry, Academe, Government, and ADB representatives, served as guidance in the implementation of the project. But since it was difficult to align the schedules of the various parties, there were some delays in the meetings which resulted to delay in decisions as well.

Low demand. There were some challenges in achieving the enrollment target in the eSMP courses. Although all 5 courses have been digitized, the targets have not been met yet.

______

4Assessment Report on the IT-BPM Industry Knowledge Hub Project Prepared by Ryan Hansen-Reeder, May13, 2016

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VII. RECOMMENDATIONS AND FOLLOW-UP ACTIONS

To sustain the Knowledge Hub and ensure its efficiency will be maintained, it is recommended to establish an organization fully dedicated to the hub. It should have adequate human and financial resources as well as leadership support to continue achieving its objectives. It is also advised to re-engage stakeholders and expand efforts to market the program to industry, academe, and other consumers.

The following are also recommended to sustain the initiatives for the IT-BPM industry:

1. The need to improve the quality of education has been identified as one of the priority areas through inputs from interviews with IT-BPM businesses. The issue of poor-quality graduates has been a long-term pain point and has, in the past, led to the development of initiatives such as SMP and TESDA vouchers aimed at training graduates just before they enter the workforce.

Recommendation:  Accredit training providers that add value to the most effective skills as determined by the IT-BPM industry.  Maintain a positive list of skill development providers (public and private) which is updated annually.

2. SMP was originally designed to train upcoming graduates with skills relevant for jobs in the local outsourcing industry. It aims to reinforce the skills and competence of students enrolled in traditional business administration and information technology courses. With the widening strategic focus of the IT-BPM industry toward high-value business activities, there is a need to expand the focus of the SMP program.

Recommendation:  Establish four respective IT, Gaming, Animation Industry, and Healthcare Advisory Boards to enhance SMP to be more specialized.  Leverage capability of schools to partner with industry to enhance specific courses and provide additional certifications for specialized curriculum.  Roll-out mandatory tracer studies for SMP.

3. With the high turnover rate, over 50%, of employees in the IT-BPM industry, there is little motivation for the industry to invest in training the workforce, especially with the likelihood of employees leaving within a short period of time; it would be more cost effective to hire industry- ready graduates.

Recommendation:  Roll-out mandatory tracer studies for all human capital interventions with IBPAP.

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4. While the English language competency of the Philippines is known as one of the key strengths of the nation and of the IT-BPM industry, there are growing concerns over the long- term sustainability of this competency.

Recommendation:  Advocate for the inclusion of the English Language Proficiency Assessments for the Philippines at secondary, tertiary public and private education.  Fund and pilot the Academic Teaching Excellence Course for selected schools in the Next Wave Cities.  IBPAP and affiliate associations to participate in the development of English Language course content.  Create a near-hire certification and training module.

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Annex 1: Contract between ADB and IBPAP (Not for Disclosure)

Terms of Reference for Consultants

A. IBPAP

BPAP will be mainly responsible for overall management of the TA, for coordinating the different component activities, including ensuring adequate industry participation, closer university-industry linkage and sustainability of TA benefits.

A-1. Lead Industry-Based Education Expert will work closely with other TA consultants in performing the following tasks:

(i) Provide inputs for the preparation of the overall strategy and roadmap for enhancing curriculum and instruction in HEIs to meet the labor supply needs of the IT-BPM industry. (ii) Design the incentives and management systems for the continuous improvement of curriculum and instruction in HEIs. (iii) Review higher education systems and practices and identify measure to address constraints for improving quality of services and achieving closer university and industry linkage. (iv) Take responsibility for the satisfactory and timely submission of required reports under the TA.

A-2 Industry-Based Education Specialist will work closely with other TA consultants in performing the following tasks:

(i) Ensure that TA objectives and targets are achieved, all policies are complied with, and appropriate standards and guidelines for managing and coordinating the TA are in place. (ii) Oversee, coordinate and integrate all inputs and outputs under the TA in close consultation with industry players, concerned government agencies, HEIs, SUCs and ADB. (iii) Coordinate with the lead expert in identifying the resource requirements for strengthening skills development programs in HEIs and SUCs. (iv) Serve as the overall manager, coordinator and integrator for the different TA outputs and inputs including managing the PSC secretariat and the preparation of the TA progress reports to ADB. (v) Assess the capacity development requirements of HEIs and SUCs to effectively address the talent supply needs of the IT-BPM industry. (vi) Identify and recommend appropriate twinning arrangements or partnership agreements between foreign and local institutions to enhance HEI curriculum and instruction in the country. (vii) Prepare draft twinning arrangements and/or partnership agreements for consideration of concerned institutions. (viii) Assist the lead expert in undertaking the tasks and responsibilities

A-3 Industry Education Associate – will work closely with other TA consultants in performing the following tasks are:

(i) Support to the Industry Education Expert in the preparation of the inception report and detailed work plan, Lead Organizer for events of Programs being implemented by the Industry Education Expert including liaising with partners, private and government institutions as necessary, including the different working groups and project teams. (ii) Serve as the Project Steering Committee Secretariat Head including the preparation of presentations and technical materials for the PSC meetings, drafting minutes and liaising with PSC members as required (iii) Support for Project Report Consolidation and Preparation, including the drafting of all project interim and final reports (iv) Prepare technical materials, project-related researches pertinent to institutional, financial, economic analyses that may be required by the project particularly for the HEIs and SUCs in the proposed hubs. (v) Assist the industry-based education specialist in undertaking the tasks and responsibilities

A-4. Project Support Staff shall support the overall project management and shall perform the following tasks:

(i) Provide all administrative and logistical support required by the project experts, including organizing special events such as consultation meetings, workshops etc. (ii) Prepare project budgets, project financial reports for submission to ADB, including documenting and tracking expenses of the project within BPAP. (iii) Assist in the reproductions of project technical reports, including building a repository and MIS system for tracking all project documents.

B. AIM

AIM will lead the TA’s knowledge management components.It will work closely with BPAP and UPOU in preparing strategic policy notes, developing the business model and framework, identifying site locations, incorporating e-learning products, identifying resource requirements, and providing technical guidance and resources for the setting up and management of the IT-BPM industry-university knowledge hubs.

B-1. The Knowledge Management Expert will work closely with other TA consultants in performing the following tasks:

(i) Conduct a study and prepare strategic policy notes for enhancing industry– university linkage to support key industries such as IT–BPM as well as a thought paper/industry note. (ii) Develop the business model, institutional framework, management arrangements, and agreements for establishing, operating, expanding, and sustaining knowledge hubs in consultation with stakeholders. (iii) Identify sites of industry-university knowledge hubs based on a sound and transparent set of criteria. 3

(iv) Identify resource requirements for establishing and operating knowledge hubs (e.g., staffing, finances, program applications, furniture, hardware, and peripherals). (v) Prepare inputs for the TA inception report, progress and annual reports to be consolidated by BPAP.

B-2. The Senior Researcher will work closely with the Knowledge Management Expert in performing the following tasks:

(i) Assist the Knowledge Management Expert in conducting a benchmark study and preparing policy note, thought paper/industry note, and inputs to TA reports. (ii) Collect data through interviews and focus group discussions and process this. (iii) Contribute to the identification of sites of knowledge hubs. (iv) Assist in developing a business model, institutional framework, management arrangements, and agreements for establishing, operating, expanding, and sustaining knowledge hubs. (v) Assist the Knowledge Management Expert in identifying the resource requirements for establishing and operating knowledge hubs. (vi) Organize consultation conference.

C. UPOU

UP will be responsible for the design and deployment of e-learning products for teaching and learning of industry-designed courses in HEIs including developing a framework for certification and assessment. It will work in close coordination with IBPAP and the AIM to ensure that the development of elearning courses are based on industry needs and standards and that any resulting inputs for business model design, knowledge hub or educational policy developments resulting from the development, production and deployment of elearning courses are properly documented and shared.

C-1. Education System Integration Expert will work closely with the expert on industry-designed education and other TA consultants in performing the following tasks:

(i) Determine the project schedule from evaluation to procurement, installation, test run, and handover. (ii) Identify staff requirements. (iii) Propose annual budget requirements, including capital and operating expenditures, to maintain the e-learning system, which will be made part of the envisaged knowledge hubs. (iv) Monitor and evaluate the teaching and learning components of the courses, including the accreditation system, to ensure quality and relevance to industry needs. (v) Coordinate the integration and implementation of research and training components of the project (vi) Oversee the system installation, test run, and handover.

C-2. OnlineCourse Development and Delivery Expert willwork closely with other TA consultants in performing the following tasks:

(i) Prepare the online course material development and delivery plan. (ii) Work with industry experts and the Instructional Design and Assessment Expert to convert the existing learning materials for online mode of delivering instruction. (iii) Organize and conduct online course development training for other course module writers and online course delivery training for course faculties (iv) Monitor and supervise the development of the online modules and its subsequent quality assessment by the Quality Circle and enhancement after the pilot runs. (v) Document the course development and delivery process.

C-3. Learner Support Expert willWork closely with other TA consultants in performing the following tasks:

(i) Assess student support requirements based on target student profile (ii) Coordinate the registration of students from participating educational institutions (iii) Develop a system of providing learner support

C-4. Multimedia Production Expert will work closely with other TA consultants in performing the following tasks:

(i) Select media formats for the course content including the learning activities. (ii) Recommend multimedia learning activities or objects appropriate to the courses. (iii) Supervise the design and production of multimedia materials (graphics, animations, videos, Web interfaces for Web portals, and marketing and communications products). (iv) Prepare a multimedia production evaluation report.

C-5. Instructional Design and Assessment Expert will work closely with other TA consultants in performing the following tasks:

(i) Review and enhance the existing curriculum in the light of the target learner profiles, e-learning requirements, and professional trends. (ii) Review and recommend online teaching and learning approaches for the online courses to be developed. (iii) Review and refine formative and summative assessment in line with GCAT for each course.

C-6. Research and Evaluation will work closely with other TA consultants in performing the following tasks:

(i) Coordinate the process documentation of the whole project. (ii) Coordinate and conduct research and evaluation studies on the courses content and pedagogical approaches. (iii) Coordinate and conduct the monitoring and evaluation study of the project. (iv) Recommend appropriate sustainable models for subsequent scaling up of the courses.

C-7. Learning Management System Expert will work closely with other TA consultants in performing the following tasks:

(i) Setup and manage a suitable e-learning system infrastructure. (ii) Troubleshoot LMS and other system issues. (iii) Design Tech support system for learners.

C-8. Education Technology Expert will work closely with other TA consultants in performing the following tasks:

(i) Coordinate with the Learning Management System Expert the setting of the e- learning system infrastructure. (ii) Design e-learning repositories in knowledge hubs in consultation with IBPAP and participating educational institutions. (iii) Recommend appropriate tools and technologies for e-learning.

CONSOLIDATED INCEPTION REPORT

TA-8164 PHI: Strengthening Knowledge-Based Economic and Social Development – 1 BPAP (46234-001)*

Prepared by*

Information Technology-Business Process Association of the Philippines Consultant 15 November 2013

*This Inception Report is prepared in partnership with the Asian Institution of Management (AIM) and the University of the Philippines–Open University (UPOU) ii

Acronyms and Abbreviations

AdEPT Advanced English Proficiency Training ADB Asian Development Bank AIM Asian Institute of Management BEST Basic English Skills Training BPO Business Process Outsourcing CEO Chief Executive Officer CHED Commission on Higher Education DOF Department of Finance DOST Department of Science and Technology GDP Gross Domestic Product GMAM General Membership Assembly Meetings HEI Higher Educational Institutions HR Human Resource IBPAP Information Technology–Business Process Association of the Philippines ICT Information and Communication Technology ICTO Information and Communication Technology Office IT Information Technology IT–BPM Information Technology–Business Process Management I-TWSP Industry-based Training for Work Scholarship Program LMS Learning Management Systems M&E Monitoring and Evaluation NEDA National Economic Development Authority PDP Philippine Development Plan PDS Philippine Digital Strategy PMF Project Management Framework PSC Project Steering Committee RBM Results-based Management SEI Science Education Institute SMP Service Management Program SUC State Universities and Colleges TA Technical Assistance TESDA Technical Education and Skills Development Authority TOR Terms of Reference UPOU University of the Philippines-Open University

I. INTRODUCTION

The purpose of this inception report is to set out a clear strategy and way forward for the implementation of the Technical Assistance (TA) and to specify various implementation activities, timeframes and outputs of specific tasks for the project. This inception report outlines: the approach and methodology, an organizational chart, consultant’s schedules, budgets, and the Terms of Reference (TOR) for the three partners.

A. Objective of the TA

The Impact of the ADB TA which is funded by the Republic of Korea e-Asia and Knowledge Partnership Fund is improved alignment of higher education with the needs of the economy. The TA would greatly assist the development of the Information Technology–Business Process Management (IT–BPM) industry by providing alternative business models and scale-up mechanisms to provide the continuous supply of qualified talent that it needs—and more importantly, strengthen the higher education system by introducing innovative and creative education programs that are relevant to the country’s competitive advantage in economic sectors like the IT–BPM industry.

B. Organization of the Inception Report

Section I : Introduction Section II : Project Background, Objectives, Outcomes Section III : Strategies, approach and methodology Section IV : Project description, outputs and activities Section V : Workplan and onsultant’s Schedule Section VI : Monitoring and evaluation Section VII : Financial and Budget Plan Section VIII : Risks and Potential Challenges

II. PROJECT BACKGROUND

A. Rationale

The IT–BPM industry in the Philippines has attained leadership in establishing a sizeable business process outsourcing (BPO) presence in Southeast Asia. Over the last ten years, the Philippine IT–BPM industry has grown at an impressive annual rate of about 30%. It is a major generator of jobs for skilled Filipinos contributing approximately 5% of GDP in 2011 and it is the Philippines’ third largest foreign exchange earner after tourism and remittances. In 2010, it has emerged as the number one provider of voice and the number two in non- voice related outsourced work in the BPM industry worldwide.

In its Roadmap, the Information Technology–Business Process Association of the Philippines (IBPAP) is targeting to achieve revenues of $25 billion or about 10% of the global IT–BPM market.1 This revenue figure is projected to account for about 8% of GDP, potentially making it the second largest source of foreign exchange for the country.

1 Philippine IT BPM Roadmap 2012 2016, © 2013 Information Technology Business Process Association of the Philippines and TeamAsia, published by the Department of Science and Technology–Information and Communications– Technology Office (DOST– –ICTO). 2

One of the key drivers for growth in the outsourcing industry, whether global or national is talent. It is acknowledged that the Philippine IT–BPM industry has been able to aggressively establish a solid position in the global IT–BPM market because of its service- oriented, English-speaking talent pool. The Philippines has the third largest talent availability among the world’s top IT-BPM centers, next to India and China, and leading Poland, Mexico, Egypt and Malaysia in annual tertiary graduates. 4

Historically, talent supply in the industry was in excess of demand. The IT–BPM industry was able to attract its talent, in part, because of the limited scope for full employment in other sectors. However, since 2010, demand has consistently outpaced supply.

IBPAP and the different education sector agencies have partnered in implementing talent development initiatives aimed at addressing the talent gap. These include the P450 million Industry-based Training for Work Scholarship Program (I-TWSP) funded by the Technical Education Skills Development Authority (TESDA) that is expected to add up to 250,000 people to the talent pool over a five year period, the P125 million Service Management Project funded by the Commission on Higher Education (CHED) to support seventeen state universities and colleges (SUC) in Next Wave Cities that is expected to generate up to 150,000 new talent over the next three years and the P8 million support from the Department of Science and Technology–Science and Education Institute (DOST–SEI) for the implementation of GCAT and AdEPT that will allow participation of a few thousand SEI scholars to particularly in more complex, technical fields in the IT–BPM sector.

While these traditional programs have resulted in concrete gains, critical gaps and constraints have yet to be adequately addressed and many new ones are emerging. The country’s educational institutions who are well aware of the industry’s re uirements continue not to be able to provide a suitable number of graduates to meet the demand.

2 http://devplan.neda.gov.ph/index.php 3 http://www.icto.dost.gov.ph/index.php/philippine digital-strategy 4 Footnote 1, p. 11 3

B. Project Description, Objectives and Expected Outcomes

The TA on Strengthening Knowledge-Based Economic and Social Development is designed to address the skills shortage in high growth industries such as the IT–BPM sector by aligning the higher education curriculum with both international standards and labor demand while building on public-private initiatives. The TA Outcome is a replicable and sustainable system of ICT-enabled knowledge hubs for improved teaching and learning of IT–BPM industry based curricula in higher education institutions (HEI). Three key Outputs will accomplish the Outcome of the TA:

(i) Access to knowledge resources for teaching and learning IT-BPO courses, (ii) Higher education curriculum and instruction enhanced, and (iii) Partnerships with industries and academic institutions strengthened.

Three organizations have been identified and contracted by ADB to work jointly for the implementation of the TA: IBPAP—the umbrella organization of the IT–BPM industry that has pioneered in the development and delivery of industry-designed courses and plays a pivotal role in sustaining the rapid growth of the industry; the Asian Institute of Management (AIM)—that has a solid track record in development management and business management programs, and research; and the University of the Philippines–Open University (UPOU)—the only open university in the country, and the only distance education institution in Southeast Asia region that is offering 100% of its courses online.

C. Overall TA Strategy

The TA is flexibly designed to support strategic investments in the development of sustainable business models for scaling-up the delivery of talent programs, and in piloting innovative mechanisms for building and sustaining industry–academe partnerships. It will focus on the establishment of knowledge hubs which will provide facilities for HEIs or SUCs to access e-learning products for teaching and learning IT–BPM industry-designed courses. The overall strategy is forward looking based on a Results Based Management (RBM) framework that incorporates a phased approach to implementation to ensure: quality of the different activities or outputs; minimized risks; and proper integration and sustainability of the outputs across stakeholders. At the activity level, the phased approach will allow initiatives to be modified at mid-year or after consultation with the different stakeholders; and will give the implementers the opportunity to recalibrate or immediately scale up. 4

III. STRATEGIES, APPROACH AND METHODOLOGY

A. Project Strategy

Over a twenty six-month period, the project will design, develop and pilot knowledge hubs. The development and integration of online IT–BPM industry-designed courses including the industry assessment tools and an entry to middle management and leadership program both for scaling teaching and learning will be house in these hubs. The hubs aim to initiate international or national twinning arrangements and stronger industry–academe linkages. These activities are collectively designed to allow the scale deployment of cost effective models for strengthening and delivering HEI programs, sustaining the knowledge hubs and substantially contribute to addressing industry demands for talent.

Central to the preparation of the consolidated project workplan is an approach emphasizing stakeholder participation (CEOs, Industry partners, HEI administrators, faculty), focusing on sustainability, and institutionalization. The systemic project design logic and management employed in establishing targets and M&E framework ensures synergy and linkage among the different activities, components and contractor/partners. For example, the deployment of the e-learning courses in the UPOU system and the middle management leadership program in AIM will serve as inputs to building models that can scale up delivery of the IT– BPM industry-designed courses for HEIs nationwide; and will contribute to sustaining existing demand and effectively addressing emerging demand for talent in the long term. The analysis will also serve as inputs for systematically enhancing higher education curriculum and instruction in the HEIs and in preparing models or addressing policy or operational constraints for effective industry–academe linkages.

IBPAP and its implementation partners, AIM and UPOU, are aware that the successful implementation of the TA requires a holistic management approach including precise coordination in the execution of the different activities of the implementing partners so that all the different output components are efficiently completed and the project results are achieved.

The project strategy must be situated within the larger national educational development and economic framework. Thus, cooperative efforts will serve to support information dissemination activities aimed at engaging with government education and industry leaders to strategically situate the TA and to obtain crucial support and commitment to the TA outputs both at the policy and operational levels. This management strategy is also anchored on IBPAP’s overall philosophy for talent development that recognizes the linkage among government, the industry partners and academic institutions like AIM and UPOU as central to the talent development process—and recognizes its role primarily as an enabling association. The chart below (Figure 1) summarizes IBPAP’s overall talent development framework.

Figure 1: Project Framework: Industry–academe Linkage

ACPI = Animation Council of the Philippines CCAP = Call Center Association of the Philippines GDAP = Game Developers Association of the Philippines HEI = Higher Education Institution HIMOAP = Health Information Management Outsourcing Association of the Philippines IBPAP = Information Technology–Business Process Association of the Philippines OJT = On-the-Job Training PSIA = Philippine Software Industry Association QA = Quality Assurance

From a project management perspective, carefully constructed and orchestrated approaches to collaborative relationships will strengthen the management structure of the project and ultimately bring greater synergy. The implementation partners have defined clear roles and scope that will allow enhanced information and monitoring capacity, seamless and timely integration of individual outputs.

B. Technical Approach and Methodology

The methodology for achieving the TA outputs includes an emphasis on participatory approaches to planning, developing, designing and implementing the TA activities. All initiatives will be developed and delivered in consultation with industry and HEI partners, government education institutions and other stakeholders. The TA activities will utilize existing IBPAP support structures and mechanisms such as the CEO Forum, the Human Resource (HR) Council, the General Membership Assembly Meeting (GMAM) and the English Council among others to consult and solicit inputs for the development of new curriculum—for enhancing industry–academe partnerships, and for the design and establishment of the knowledge hubs.

As the enabling industry association, IBPAP continues to drive stakeholder support for talent programs designed to reach industry goals. Thus, where there is a convergence in goals or direction, the TA activities will be designed and implemented to support IBPAP talent development and stakeholder programs as defined in its Roadmap 2012–2016.

Figure 2: Stakeholder Objectives

ANZ = Australia and New Zealand BPM = Business Process Management CP = Creative Process CRM = Customer Relationship Management EU = European Union F&A = Finance and Accounting HIM = Health Information Management HR = Human Resources IT = Information Technology UK = United Kingdom Sources: IBPAP, Everest Group, Outsource2Philippines (2010-2012)

The TA components: particularly the development of the hubs, and the development and delivery of e-learning and management programs will serve as a building block for identifying alternative, pioneering business models that: (i) optimize and promote strong industry–academe partnerships, and (ii) scale the deployment of industry responsive curriculum and instruction in the HEIs. Both support the Talent and IBPAP Role objectives in the chart above (Figure 2).

Consistent with the Terms of Reference (TOR) and the Technical Proposal, the approach and methodology will utilize a diverse range of analysis, research, consultation, and case studies and benchmarking to best practices, so that all components of the project are harmonized with and strategically impacting on producing the quantity and quality of talent required by the industry. Details of the Consultants and Resource Persons to be utilized under the TA are in Appendix 4.

The TA will support the Philippine Government and ADB’s gender and development objectives. The TA will promote gender parity in participation and access to the e-learning 7

training programs and other outputs of the TA. Gender and development considerations will be identified in the preparation of studies and researches on the knowledge hubs, case studies, policy papers and in the development of new curricula.

The TA contributions are directed towards the achievement in three areas: increasing access to the industry-based courses and resources through the knowledge hubs, increased delivery of courses for teachers and students, and increased industry–academe partnerships. The core emphasis will be on strengthening IBPAPs existing courses by converting these to e-learning, open university standard, learning management system (LMS) modules, building the entry to middle management course, and creating sustainable, cutting-edge industry–academe partnerships that can continuously update and deliver these programs.

The TA is founded on some key organizing and technical principles. First, all initiatives should be designed to help establish models that are replicable and sustainable. Second, all TA activities will be monitored within the context of assessing and improving strategic and operational policy and planning and implementation practices. This latter aspect requires effective feedback and consultative approaches to information gathering and a readiness to flexibly or proactively respond to requests of industry and academe during the implementation of the TA.

Another fundamental principle is that the process of integrating gender sensitive, ICT- enables courses and the utilization of LMS must be implemented with a clear recognition that such a dramatic shift in the education delivery process requires a very supportive environment for academic administrators and managers. It also requires the recognition of the reality that: such a change may be gradual or may take time, that it will require a firm commitment to the use of ICT tools and systems as an integral part of a different delivery process, and that such shifts require technologically-equipped and managed work environments.

The implementation of the TA will ensure that inputs are consistent with these principles. It will explore avenues that guarantee the establishment of performance standards and imbed performance management and accountability agreements based on roles and responsibilities. Identifying best practices, determining models that guarantee scalability, sustainability and institutionalization of the TA benefits will be critical in assuring the maximum development impact of the project. Integral to this is the need to acknowledge the realities faced at the HEI level and to modify and adjust approaches based on the findings.

C. Financial Resources

The total cost of the TA is estimated at $500,000 equivalent and will be financed on a grant basis by the Republic of Korea e-Asia and Knowledge Partnership Fund. The budget for the TA is distributed to the three implementing partners as follows (Table 1):

Table 1: TA Budget Distribution Amount Implementing Partner (US$) IBPAP 127,313 AIM 68,750 UPOU 206,095 Total 402,158 AIM = Asian Institute of Management IBPAP = Information Technology–Business Process Association of the Philippines UPOU = University of the Philippines–Open University

The budget will be expended over a 26 month period beginning September 2013 to November 2015 based on the approved personnel schedule.

D. Institutional and Implementation Arrangements

The project organizational chart in Appendix 1 shows the institutional arrangements between IBPAP, AIM, UPOU, ADB, the government of the Philippines and the HEIs/SUCs as well as the organizational linkages, reporting structures and coordinating mechanisms. The Department of Finance (DOF) will be the executing agency to lead and implement the TA implementation. It shall char a project steering committee (PSC) composed of the Commission on Higher Education (CHED), the National Economic and Development Authority (NEDA), the Department of Science and Technology–Information and Communication Technology Office (DOST–ICTO), a private sector representative, an industry firm representative and a representative from the academe. The PSC shall provide quality assurance and ensure effective coordination among government agencies, development partners and stakeholders.

IBPAP will have overall responsibility for the management of the TA, oversee and coordinate all TA inputs and outputs in close coordination with industry players, government institutions while ensuring closer university–industry linkages and sustainability of the TA benefits. UPOU will be responsible for design and deployment of e-learning products developed by the IBPAP for teaching and learning, and will develop the certification and assessment framework for the programs. AIM will lead the knowledge management component including developing the business models for the knowledge hubs, preparing strategic policy notes for scaling up the industry developed courses, and developing the middle management and leadership program for the IT-BPM sector. The Lead Industry- based Education Expert, supported by the Industry-based Education Specialist, will liaise closely with the ADB as well as with the AIM and UPOU and stakeholders to ensure smooth and timely implementation of the TA and that TA targets and objectives are achieved.

A detailed consolidated workplan and implementation schedule has been developed for the duration of the 26 month implementation period from 23 September 2013 to 21 November 2015 (Appendix 2). This workplan will serve as an important tool for planning, implementing and monitoring TA activities for AIM, IBPAP and UPOU. It provides a detailed schedule for the implementing partners and all project stakeholders to better understand their respective roles. Each of the three implementing agencies will provide administrative and logistical support for their own individual TA activities with IBPAP providing the overall project management support for specific activities or whenever required.

IV. PROJECT DESCRIPTION

A. Project Components and Expected Results

The overall impact of the TA is improved alignment of higher education with the needs of the economy. The outcome is a replicable and sustainable system of ICT-enabled knowledge hubs for improved teaching and learning of IT–BPM industry-based curriculum in the HEIs. The major outputs and activities that will contribute to this outcome are detailed in the Consolidated Project Workplan in Appendix 2.

Details of the Outputs are presented below (Section IV B).

B. Output 1 (Outcomes, Outputs, Activities)

Access to knowledge resources for teaching and learning IT–BPM industry-based course increased.

Access would be increased through the following initiatives and actions:

(i) consultations with industry CEOs, HEIs and other stakeholders, (ii) developing online learning modules and study guides, (iii) courses for talent management development program, (iv) developing the framework and business model for the pilot knowledge hubs, and (v) identify and establish three (3) knowledge hubs.

The main Outputs from these initiatives would be:

(i) three (3) out of six (6) online service management program (SMP) courses available for use in the UPOU learning management system (LMS), (ii) entry-level middle management program designed and developed by AIM, (iii) framework and replicable business models for developing the pilot knowledge hubs prepared, and (iv) three (3) pilot knowledge hubs established.

C. Output 2 (Outcomes, Outputs, Activities)

Higher education curricula and instruction enhanced.

Higher education curricula and instruction will be enhanced through the following initiatives and actions:

(i) run online IT–BPM courses for 900 faculty members and 3,000 students, (ii) develop a certification and assessment framework, (iii) certify/assess teachers and students who have completed the online courses, and (iv) scale-up model for delivering IT–BPM courses documented.

The main Outputs from these initiatives would be:

(i) three (3) online courses offered to 900 teachers and 3,000 students of participating HEIs, and (ii) teachers and students who have completed the courses availed of, or completed certification /assessment.

D. Output 3 (Outcomes, Outputs, Activities)

Partnerships between industry and academic institutions strengthened through the following initiatives and actions:

(i) prepare industry–academe partnerships and linkages framework, (ii) prepare three (3) partnerships agreements between HEIs and industries, and (iii) establish two (2) twinning arrangements between foreign or domestic HEIs.

The main Outputs from these initiatives would be:

(i) sustainable partnerships between industry and academe in the Next Wave Cities, and (ii) at least two (2) twinning arrangements between foreign or domestic HEIs formalized for IT–BPM courses.

V. PROJECT WORK PLAN AND CONSULTANTS SCHEDULE

A. Consultant’s Inputs and Schedules

This TA will be delivered by one international and thirteen national consultants across the three partners. IBPAP which is responsible for managing overall TA inputs and outputs including the sustainability of TA benefits will provide two person-months intermittent for the Lead Expert on Industry-Designed Education who will work closely with other TA consultants for the preparation of the strategy and roadmap for enhancing curriculum and instruction in the HEIs and other technical reports and five person-months intermittent for the Industry-based Education Specialist who will be responsible for ensuring that the TA objectives and targets are met and overseeing and integrating all TA inputs and outputs.

AIM which is the partner leading the knowledge management components will be expected to provide one International Knowledge Management Expert for seven person-months intermittent and a Senior Researcher for seven person-months intermittent who will assist the Knowledge Management Expert in the preparation of the benchmarking study and in preparing policy notes and reports.

UPOU is responsible for designing and deploying e-learning products for industry-designed courses in HEIs. It has the largest number of consultants and experts with a total of seventeen (17) person months.

The schedule of consultants, their inputs into the project and timelines are found in Appendix 3.

B. Workplan

The consolidated workplan for the implementation of the TA is outlined in the Gantt chart in Appendix 2. It presents the twenty six month summary of tasks, activity outputs, timeframes and responsibilities and is intended to guide all implementing partners so that all activities are coordinated, dependencies among the different components are clearly understood, and all necessary activities are implemented so that the planned outputs are achieved in accordance within agreed time schedules.

The workplan will serve as a monitoring tool to ensure the achievement of outputs and progress towards outcomes. Monitoring and evaluation is part and parcel of the overall workplan which includes critical milestones at the activity and output levels that can readily serve as an indicator on whether the implementation is on or off target.

VI. MONITORING AND EVALUATION

A. Monitoring and Evaluation Requirements

One of the criteria for the success of any project would be extent and scope of monitoring and evaluation mechanisms that are built into the overall implementation strategy. A Performance Measurement Framework (using the ADB-prescribed Design and Monitoring Framework) outlined in Attachment 5 will be utilized by the project. The PMF, which was built around elements of the TA design and monitoring framework, will be used internally by the project implementing partners and stakeholders primarily to track performance and measure progress towards the achievement of the project results. The PMF identifies data sources, methods and techniques of data collection and analysis, and frequency of data collection. Responsibility for gender disaggregated data collection, analysis and report preparation are to be identified.

The focal point of project monitoring efforts is comparing actual performance against what was planned. The monitoring and evaluation mechanisms will be undertaken at different levels to ensure that the project is implemented according to the activities defined in the workplan. The monitoring and evaluation framework has the following features:

(i) clear milestones and benchmarks established to guide implementation, (ii) structured and systematic monitoring system with clear and specific performance indicators, 12

(iii) systematic tracking and reporting of TA activities and outputs of each of the implementing partners, and (iv) tracking, monitoring and reporting on specific performance results areas and performance benchmarks and indicators.

The table below (Table 2) summarizes the monitoring and evaluation schedule.

Table 2: Monitoring and Evaluation Schedule Stages/ Timeline Locations Details Focus Oct–Nov 2013 Mobilization  Set-up Project  Developing the Logical M&E Framework Analysis  Three Teams  M&E reporting Structure  Total of Three  M&E Policies, Process & national Procedures consultants  Forms & Templates  tie-up with MIS for programming Nov–Dec 2013 Consultation on the Consultation with IBPAP, M&E System AIM, UPOU Dec 2014 Orientation of M&E  conduct of workshop System Policies &  Integration of the Procedures Workshop outputs  Processing and Analysis Jan 2014 Baseline data Baseline data gathering gathering activities with partners Jan–Feb 2014 Standardization of Q2 Reports and Quarterly Reports reports thereafter Feb 2014– Implementation Progress and  Monthly Reports (UPOU) Jun 2015 Financial Reporting  Quarterly Reports  Interim Reports Jul–Sept 2015 Completion Draft the Project Completion Report AIM = Asian Institute of Management IBPAP = Information Technology–Business Process Association of the Philippines M&E = Monitoring and Evaluation MIS = Management Information Systems UPOU = University of the Philippines–Open University

B. Project Reporting

IBPAP through the Lead Expert on Industry-Designed Education will submit all consolidated reports on the implementation of the TA and its progress. These reports include: i) an inception report ii) quarterly report iii) summary report iv) draft completion report and v) the completion report. To assist IBPAP in preparing the reports, AIM and UPOU will collect performance data and prepare an assessment of their individual activities as part of the implementation of their respective components. A template format for reporting may be 13

provided by IBPAP for ease of consolidating. The table below (Table 3) summarizes the project reporting requirements.

Table 3: Project Reporting Requirements Report Timeline Consolidated Inception Report 15 November 2013 Consolidated Quarterly Report 29 January 2014 and every 3 months after Consolidated Summary Report After completion of each deliverable Draft Completion Report 30 September 2015 Completion Report 15 November 2015

C. Project Evaluation

The project will be subject to normal ADB evaluation requirements.

VII. FINANCIAL AND BUDGET PLAN

The estimated budget for the TA activities is a total of $500,000 for the three implementing partners broken down in Table 1.

The implementing partners will be responsible for managing their respective budgets and will report actual expenditure to ADB based on their approved workplan. Each partner will be responsible for preparing their financial report on a monthly basis and both AIM and UPOU will provide financial report summaries to IBPAP for the preparation of the consolidated quarterly report.

Given the level of activities, some flexibility was built into the contracts through the provision of a small amount of contingency in the implementing partner’s budget. These amounts are foreseen to be utilized before the end of the project period.

VIII. RISKS AND POTENTIAL CHALLENGES

Through continuous monitoring and analysis of project operational and development activities and their results—including formal and informal verbal and written inputs from IBPAP, AIM, UPOU, industry partners and other stakeholders, a flow of quantitative and qualitative information is expected to be generated to define risks and contribute to risk detection and mitigation solutions. The objective is to ensure transparency in information, participatory definition of risks and formulation of solutions that are in the best interest of successful TA implementation. The initial list of key risks have been identified in the design and monitoring framework in Appendix 6.

APPENDICES

Appendix 1. Implementation Structure

Appendix 2. Project Workplan

Appendix 3. Consultants Schedule (September 2014–November 2015)

Appendix 4. Consultants and Other resources Responsibilities

Appendix 5. TOR for Consultants

Appendix 6. Design and Monitoring Framework

Appendix 1. Implementation Structure

Appendix 1 15 Appendix 2 16

Appendix 2. Project Workplan

Note: ██ IBPAP ██ AIM ██ UPOU

Appendix 2 17 Appendix 2 18

Note: ██ IBPAP ██ AIM ██ UPOU

Appendix 2 19 Appendix 2 20

Note: ██ IBPAP ██ AIM ██ UPOU

Appendix 3. Consultants Schedule (September 2014–November 2015)

Year 2013 2014 2015 Total Local Consultants Month 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 Months 1 Ana Maria Bongato IBPAP 2 Lead Industry-Based Education Expert ------2 Ronald Arambulo IBPAP 5 Industry-Based Education Specialist ------3 Florelixie Neo IBPAP 6 Industry Education Associate ------4 Rachelle Cagurungan IBPAP 6 Project Support Staff ------5 Robert Keitel AIM 7 Knowledge Management Expert ------6 Melissa Ledesma AIM 7 Senior Researcher ------7 Melinda Bandalaria UPOU 3.5 Education Systems Integration Expert ------8 Primo Garcia UPOU 3.5 Online Course Development & Delivery Expert ------9 Maria Fe Mendoza UPOU 1.5 Learner Support Expert ------10 Grace Alfonso UPOU 2.5 Multimedia Expert ------11 Patricia Arinto UPOU 3 Instructional Design & Assessment Expert ------12 Melinda Lumanta UPOU 1 Research and Evlaution Expert ------13 Roberto Figueroa UPOU 1 Learning Management System Expert ------14 Reinald Adrian Pugoy UPOU 1 Educational Technology Expert ------Note: Time periods shown above are indicative only; adjustments may be made according to the progress of the TA and the requirements AIM = Asian Institute of Management IBPAP = Information Technology–Business Process Association of the Philippines UPOU = University of the Philippines–Open University

Appendix 3 21 22 Appendix 4

Appendix 4. Consultants and Other resources Responsibilities

Consultant/ Partner Resource Person Key Responsibility Area IBPAP 1 Ana Maria Bongato Lead Industry-Based Education Expert/who will prepare overall framework, strategy & roadmap for enhancing curriculum and instructions in HEIs & be responsible for submission of technical reports in the project IBPAP 2 Ronald Arambulo Industry-Based Education Specialist/who will oversee, coordinate and integrate all inputs and outputs under the TA IBPAP 3 Florelixie Neo Industry Education Associate/support the Industry-based Education Specialist in the preparation of technical and management reports and in coordinating and managing the TA inputs and outputs IBPAP 4 Rachelle Cagurungan Project Support Staff/provides all administrative & logistical support including building a repository and MIS system for tracking all documents and , prepares all project budgets and financial reports

AIM 5 Robert Keitel Knowledge Management Expert/who will prepare strategic policy notes, develop the knowledge hub business model, institutional framework, management arrangements, and agreements, identify sites and resource requirements for establishing and operating knowledge hubs, and prepare inputs for the reports. AIM 6 Melissa Ledesma Senior Researcher/who will assist the Knowledge Management Expert in conducting a benchmark study and preparing policy notes and reports, collect data through interviews and focus group discussions, assist in developing the business model, institutional framework, management arrangements, and agreements, assist in identifying the resource requirements for establishing and operating knowledge hubs, and organize the consultation conference. UPOU 7 Melinda Bandalaria Education System Integration Expert/ Over all management of the UPOU component, including monitoring, evaluation, and integration of the project systems from installation to hand over. UPOU 8 Primo Garcia Online Course Development and Delivery Expert/ Coordination and development of online course materials and training of online tutors on online delivery. UPOU 9 Maria Fe Mendoza Learner Support Expert/Design and implementation of support sysytem for learners. UPOU 10 Grace Alfonso Multimedia Expert/Supervision and development of multimedia materials for the online courses. UPOU 11 Patricia Arinto Instruction Designa nd Assessment Expert/Instructional design of the courses , inlcuding assessment tools UPOU 12 Melinda Lumanta Research and Evaluation Expert/Process documentation of the project and development of farameworks/models for professional development through online learning. UPOU 13 Roberto Figueroa Learning Management System Expert/Setting up of course delivery platform, trouble shooting, and tech support for learners UPOU 14 Reinald Adrian Pugoy Educational Technology Expert/Recommendation on educational technology applications and design of online respository for online course materials.

Appendix 5 23

Appendix 5. TOR for Consultants

TERMS OF REFERENCE FOR CONSULTANTS

A. IBPAP

A-1. Lead Industry-Based Education Expert will work closely with other TA consultants in performing the following tasks:

A-2 Industry-Based Education Specialist will work closely with other TA consultants in performing the following tasks:

24 Appendix 5

A-3 Industry Education Associate – will work closely with other TA consultants in performing the following tasks are:

A-4. Project Support Staff shall support the overall project management and shall perform the following tasks:

B. AIM

B-1. The Knowledge Management Expert will work closely with other TA consultants in performing the following tasks:

Appendix 5 25

B-2. The Senior Researcher will work closely with the Knowledge Management Expert in performing the following tasks:

C. UPOU

C-1. Education System Integration Expert will work closely with the expert on industry-designed education and other TA consultants in performing the following tasks:

26 Appendix 5

C-2. OnlineCourse Development and Delivery Expert willwork closely with other TA consultants in performing the following tasks:

C-3. Learner Support Expert willWork closely with other TA consultants in performing the following tasks:

C-4. Multimedia Production Expert will work closely with other TA consultants in performing the following tasks:

C-5. Instructional Design and Assessment Expert will work closely with other TA consultants in performing the following tasks:

Appendix 5 27

C-6. Research and Evaluation will work closely with other TA consultants in performing the following tasks:

C-7. Learning Management System Expert will work closely with other TA consultants in performing the following tasks:

(i) Setup and manage a suitable e-learning system infrastructure. (ii) Troubleshoot LMS and other system issues. (iii) Design Tech support system for learners.

C-8. Education Technology Expert will work closely with other TA consultants in performing the following tasks:

Appendix 6 28

Appendix 6. Design and Monitoring Framework

Performance Targets and Data Sources and Reporting Design Summary Indicators with Baselines Mechanisms Assumptions and Risks Impact Assumption Improved alignment of higher Philippine education system Institute for Management Global economic stability education programs with the scoring at least 4.50 on the Development World needs of the economy Institute for Management Competitiveness Online Risk (H-M-L) Development World Database (M) Economic shocks Competitiveness Online Database (H) Natural Disasters by 2018, up from 4.03 in 2009 Outcome Assumptions A replicable and sustainable IT-BPO industry-designed courses Annual reports of the  Sufficient Government support system of ICT-enabled adopted in at least 3 HEIs by Q3 Commission on Higher  Cooperation and support of HEIs and knowledge hubs developed for 2015 Education Industry firms the improved teaching and  Implementation is phased to learning of IT-BPO industry- Adoption of GCAT in selected Annual reports of the Business accommodate flexibility and realistic designed curricula in HEIs HEIs by Q3 2015 Process Association of the implementation timeframe Philippines Risks TA Progress reports (H) Teacher & student attrition (L) Cross-implementation partner activities will not be completed on time because of a lack of internal cooperation (L) Lack of support for public-private partnerships on both the government and private sector side. (L) Students are not motivated or interested to enroll in IT-BPM courses. (H) Failure of the HEIs & Knowledge hubs to systematically address the IT infrastructure requirements for integrating ITBPM courses into their curriculum (M) Sufficient project funding is not made available by ADB in a timely manner

Performance Targets and Data Sources and Reporting Design Summary Indicators with Baselines Mechanisms Assumptions and Risks Outputs Assumptions 1. Access to knowledge Business model for operating and Annual reports of partner  HEIs and partner industries providing resources for teaching sustaining the knowledge hubs industries continued institutional support and learning IT-BPO developed by Q4 2014 industry-designed courses Digitized teacher training materials  Faculty members and students increased and study modules incorporated in motivated to improve their knowledge the knowledge hubs by Q3 2014 and skills

2. Higher education curricula 900 faculty members from Annual reports of participating Risks and instruction enhanced participating HEIs, of which at least HEIs (H) SMP is not integrated in the HEI 50% are women, completing online curricula offering because recurring teacher training programs on IT- costs for e-learning materials are not BPO industry designed courses by budgeted Q3 2015 (H)SMP deployment may be disrupted because of poor bandwidth or IT 3000 students, of which at least access of the school 50% are females, complete online (M) Service Level and delivery timelines of learning modules and study guides the implementing partners are on IT-BPO industry-designed unsatisfactory or the working courses by Q2 2015 relationship between the implementing partners becomes difficult 3. Partnerships between At least 3 partnership agreements TA progress report (H) HEIs not amenable to or not aligned industry and academic involving HEIs and industries with integration of SMP or ITBPM institutions strengthened signed by Q4 2012 courses in their system. (H) Non-acceptability of online courses and At least 2 twinning arrangements certification by large IT-BPM players between foreign and domestic TA progress report HEIs established by Q2 2014

Appendix 6 29 30 Appendix 6

Appendix 6: Design and Monitoring Framework

Activities and Milestones Inputs

1.1 Drawing from best practice and Republic of Korea e-Asia and lessons regarding the management Knowledge Partnership Fund : $500,000 and operation of knowledge hubs, Amount design a model and operational Item ($’000) systems for knowledge hubs by Q4 Consultants 2012. 355.2 1.2 Develop criteria for locating knowledge

hubs and selecting beneficiaries by Q4 Equipment 32.0 2012.

1.3 Set up three knowledge hubs by Q4 Training, seminars, and 2013. Conferences 55.8 1.4 Develop capacity for managing and

maintaining knowledge hubs from Q1 Evaluation surveys and studies 15.0 2013 to Q4 2013.

Miscellaneous administration 2.1 Develop and enhance IT-BPO And support costs 13.0 industry-deisgned courses by Q1 2013.

2.2 Implement a system for accrediting Contingencies 29.0 courses by Q4 2013. 2.3 Develop online teacher training Government programs and guides by Q2 2014. The government will provide counterpart support in the form of remuneration of 3.1 Identify partner industries and HEIs by counterpart staff, office accommodation, Q3 2012. utilities, and other in-kind contributions. 3.2 Discuss and agree on partners’ responsibilities by Q3 2012. 3.3 Develop a partnership framework by Q3 2012. 3.4 Develop a business model to sustain the propagation and operation of knowledge hubs by Q4 2014.

BPO = business process outsourcing HEIs = higher education institutions IT = information technology ICT = information and communication technology GCAT = Global Competitiveness Assessment Tool, Q = quarter TA = technical assistance. Source: Asian Development Bank

Page 1

IT-BPM Knowledge Hub Thought Paper (Draft 1)

1. Objectives of the TA and purpose of the thought paper

The Philippine Government sought the assistance of the Asian Development Bank through the Department of Finance to provide capacity development technical assistance (TA) in addressing skills shortages in the IT-BPM industry by aligning higher education curricula with international standards and labor market demand, simultaneously, developing and strengthening public and private partnerships. To achieve these goals, the TA will employ knowledge hubs to develop replicable models for strengthening relationships among the government, industry, and higher education institutions (HEIs) within the IT-BPM industry; sharing and learning regional knowledge and experiences; and supporting other high-growth industries.1

The TA envisions an improvement in the alignment of higher education with the needs of the economy. Such impact becomes tangible through a replicable and sustainable system of ICT-enabled knowledge hubs for the improved teaching and learning of IT-BPM industry design curricula in HEIs. The expected key specific outputs are increased access to knowledge resources for the IT-BPM designed courses, enhanced higher education curricula and instruction, and strengthened partnership between industries and academic institutions.2

This thought paper is the beginning phase in the process of formulating the operation and business model for the IT-BPM Knowledge Hub. The concepts, ideas, and propositions articulated in this thought paper were derived from review of literature, analysis of industry and government documents and presentations, dialogues and focus group discussions (FGDs) with partner institutions IBPAP and UPOU, as well as industry experts and practitioners. Data was generated and analyzed in a period of three months, beginning October 2013 through December 2013.

Imbued within the concept of knowledge hub is the process called knowledge mapping.3 The formulation of this thought paper is conceived as the beginning of the knowledge mapping process. In the forthcoming months, the initial framework articulated in this thought paper may likely develop and evolve in complexity and detail as more data will be gathered and analyzed, ultimately, leading to the operation and business model of the IT-BPM Knowledge Hub.

1 Technical Assistance (TA) Report, Technical Assistance to the Philippines for Strengthening Knowledge-Based Economic and Social Development, ADB, 2012. 2 Ibid 1 3 Guidelines for Knowledge Partnerships, ADB, 2011. Page 2

The following questions guide the knowledge mapping process:

1. How will knowledge hubs transform the learning pedagogy and student competencies to meet the talent demand of the agile ever-changing IT-BPM industry? 2. How will the knowledge hub improve access to knowledge resources for industry-designed courses specific to the IT-BPM? 3. How will the knowledge hub enhance higher education curriculum and instruction? 4. How will the knowledge hub strengthen industry-academe partnerships? 5. How will knowledge hub transform course delivery? 6. How will knowledge hub reach new talent diasporas (OFWs)? 7. Why will stakeholders commit to the knowledge hub?

2. Knowledge Hub

Definition of a Knowledge Hub

From the point of view of development practitioners on the level of transnational exchange, a knowledge hub has been defined as “an organization, or part of an organization, dedicated to sharing and exchanging development experiences and models.”4

A review of ADB’s “Guidelines for Knowledge Partnerships” 5 is useful in creating a working model for a knowledge hub. The guide was developed in order to guide ADB staff in the implementation and practice of applying knowledge solutions for development. ADB considers that “knowledge networks facilitate information exchange toward practice-related goals.”6 Six main functions describe the strategies and activities of networks:7

filtering amplifying – investing and providing – – 4 Choesni, Tubagus A. and Schulz, Nils-Sjard. “Knowledge ubs — Progress in Practice since the Bali ommuni u ,” p. . http://jicari.jica.go.jp/publication/assets/040_Chapter4.pdf and http://wbi.worldbank.org/sske/sske/knowledge_hub 5 Guidelines for Knowledge Partnerships, ADB, 2011. 6 Citing ADB. 2008. Creating and Running Partnerships. Manila. Available: www.adb.org/Documents/Information/Knowledge- Solutions/Creating-Running- Partnerships.pdf

7 citing Mendizabal, E. 2008. Supporting Networks: Ten Principles. Available: www.odi.org.uk/resources/download/1130.pdf Page 3

convening community building – learning and facilitating – Types– of Knowledge

The following definitions of knowledge are useful in drafting a working model for the IT-BPM Knowledge Hub. Citing the work of International Institute for Sustainable Development (IISD), three types of knowledge are identified: 8

 Explicit knowledge is knowledge that can be written down, recorded, or codified in some manner.

 Tacit knowledge is an understanding of how to do things (such as how to develop new policy recommendations, how to run a community consultation, or how to negotiate a policy change with a decision maker). It is created by doing, and personal trial, error, reflection, and revision. It can be difficult, however, to articulate what that “how to” actually is. The transfer of tacit knowledge, therefore, is facilitated through shared processes (working together, mentoring, and so forth) in addition to the physical transmission of related written or recorded content.

 Implicit knowledge refers to the inherent values and cultural considerations that shape and influence the perceptions, choices, and actions of knowledge holders.

Knowledge Processes

Several processes are identified in knowledge management practice. These key knowledge processes are:9 (1) knowledge mapping or the process of identifying knowledge needs and gaps, and sourcing knowledge accordingly; (2) generating or creating knowledge through original research and through refining, testing, and implementing new applications of existing knowledge; (3) storing and retrieving knowledge through appropriate information systems and protocols (such systems often sit at the heart of good knowledge management practice, although they are only one part of the full range of knowledge management activities); (4) sharing and applying knowledge through interactions with other stakeholders and broader communities of interest; and (5) engaging in cycles of learning and reflection leads to adaptation and progress against given objectives. Typologies of Knowledge Networks

8 citing Creech, H. 2005. The Terminology of Knowledge for Sustainable Development: Information, Knowledge, Collaboration and Communications. An International Institute for International Development Knowledge Communications Practice Note. Winnipeg: IISD

9 ADB, Guidelines for Knowledge Partnerships, 2011, p. 3-5 Page 4

Knowledge hubs can be operationalized in several ways. As “Point-to-Point exchange” or “strategic alliance,” the relationship can be between two institutions. As “information hub,” a “hub and spokes,” or a “networking hub,” the relationship can be between several institutions with one institution serving as primary driver and/or secretariat, holding the connection between members of the network, encouraging other institutions to engage and participate on the basis of formal or informal contracts and tools.10

Typologies of partnerships and networks can be organized in a number of ways—by level of formality and obligations of participants and by function, geographic distribution, and time.11

TYPOLOGY BASED ON FORMALITY AND OBLIGATIONS OF THE PARTNERS

Type of Partnership Characteristics Formal, between organizations Strategic Alliances -term purposeful arrangements among distinct but related organizations that allow thoseIn the firms private to gain sector, or sustain these alliances are long

In the public or nonprofit sector,competitive a strategic advantage. alliance is established for a value exchange between the partners, governed typically under the terms of a Memorandum of Understanding. ADB describes these as voluntary formal arrangements between two or more entities with a common set of objectives to meet critical needs, which pool resources while remaining independent. Public-private partnerships Contracts between a private sector entity and the government, where the private partner delivers a desired service and assumes the associated risks. In return, the private partner receives payment according to criteria specified in the contract and assumes the financial and administrative burden of providing the service, while the government regulates and monitors performance.* Tri-sector or cross-sector This type of partnership consists of private investment, public partnerships objectives, and community participation.* Less formal, between organizations World Summit on These partnerships are voluntary, multi-stakeholder initiatives Sustainable Development aimed at implementing the sustainable development goals of Multi-stakeholder Agenda 22, Rio+5, and the Johannesburg Plan of Implementation. Partnerships Such partnerships are considered to be a key mechanism for translating political commitment into action. These may be long- term relationships or focused in specific project implementation. Formal knowledge networks Knowledge networks among institutions focus in strengthening the sharing of knowledge and generating new knowledge to have greater influence on policies and practices outside the network. The knowledge is for use beyond the network; the network is purpose driven, to create knowledge for application; and often time bound,

in setting and achieving goals and objectives. Formal 10 ibid., 14-15. 11 Creech, H. 2005. The Terminology of Knowledge for Sustainable Development: Information, Knowledge, Collaboration and Communications. An Institutional Institute for International Development Knowledge Communications Practice Note, Winnepeg: IISD. Page 5

TYPOLOGY BASED ON FORMALITY AND OBLIGATIONS OF THE PARTNERS

Type of Partnership Characteristics knowledge networks have a greater degree of structure, bringing together expert institutions for more specific research tasks, but retaining the focus on promoting the findings for use beyond the network members. Less formal, between individuals Open source development These communities are purpose driven in the development and communities testing of new ideas. They are open in that anyone wishing to contribute to the purpose can join; structured in the expectation that members will contribute actively to the purpose, with dedicated monitoring and reviewing of those contributions by the originators of the community; and hierarchical in that the endorsement and adoption of new ideas is through the inner circle of the original creators of the community. They are prone to regular branching off to new communities when the ideas are not endorsed or adopted. Network of experts These networks bring together individuals rather than organizations; the invitation to join is based on expertise in a particular area. Their purpose can be either advisory or focused in research and problem solving. Communities of practice Two or more individuals can create a community of practice for conversation and information exchange, possibly even leading to the development of new ideas and processes. Participation is purely voluntary and will wax and wane with the level of interests of the participants. Communities of practice can exist within an organization, or be independent of any organization; they can be face-to-face in person or virtual/online. Communities of interest These are more loosely knit communities built around common characteristics or shared interests (youth activism, hobbies, etc.). Participation is purely voluntary and will wax and wane with the level of interest of the participants. Information networks and These networks provide access to information supplied by network portals members, occasionally with overlays of interpretative materials that organize content thematically. However, they are fundamentally passive in nature. Users must come to the network- physically or electronically- to benefit from the work of the network. * Jarillo, C.J. 1993. Strategic Networks Creating the Borderless Organization. Oxford: Butterworth-Heinnmann. * Loew, J. and M. McLindon. 2002. A P3 Primer:– Why Are Countries Interested in P3? Available www.ip3.org/pub/publication002.htm * Karpova, K. 2002. Public-Private Partnerships in the United States: A Snapshot of Recent Developments and New Directions. Available: www.ip3.org/pub/publication2002_010.htm

Source: Creech, H. 2005. The Terminology of Knowledge for Sustainable Development: Information. Knowledge, Collaboration and Communications. An International Institute for Development Knowledge Communications Practice Note. Winniper: IISD.

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Overall, the preceding discussions on knowledge and partnerships are meant to provide the co-initiators (IBPAP, UPOU and AIM) and other partners in the TA an overview of how ADB and other development organizations define and conceptualize knowledge and knowledge hub. These conceptualizations will be utilized as guiding conceptual foundations in the development of the IT-BPM Knowledge Hub, and its overarching operations and business model.

Detailed below are the expected outcomes of the IT-BPM Knowledge Hub as defined by the TA: 12

1. IT–BPO industry-designed courses adopted in at least 3 HEIs 2. Adoption of GCAT in selected HEIs 3. Business model for operating and sustaining the knowledge hubs developed 4. Digitized teacher training materials and study modules incorporated in the knowledge hubs 5. 900 faculty members from participating HEIs, of which at least 50% are women, completing online teacher training programs on IT–BPO industry- designed courses 6. 3,000 students, of which at least 50% are females, complete online learning modules and study guides on IT–BPO industry-designed courses 7. At least 3 partnership agreements involving HEIs and industries signed 8. At least 2 twinning arrangements between foreign and domestic HEIs established

Fusing together the grounding concepts on knowledge, knowledge processes, knowledge partnerships, the enumerated outcomes above, and the main objectives of the TA, a tentative framework of IT-BPM Knowledge Hub is developed.

12 Ibid 1 Page 7

3. Tentative framework of IT-BPM Knowledge Hub

Definition of the IT-BPM Knowledge Hub

The initial conception of the IT-BPM Knowledge Hub is categorized into virtual and physical domains. Virtual Knowledge Hub (Diagram 1) can be appreciated at the conceptual level, because it an omnipresent vessel containing the different types of knowledge (tacit, implicit, and explicit) and utilizing the different knowledge processes (knowledge mapping, knowledge creation, knowledge storage and retrieval, knowledge sharing and application, and learning and reflection) in its quest to bring about change in the Philippine IT-BPM industry talent development and labor force supply chain.

The External Environment is characterized as a gap between a qualified labor supply and industry demand. Companies seek talent with required competencies which they cannot acquire through their present training and recruitment process. Companies have formulated competency standards and work through their industry associations and IBPAP and are working with Government and academe to improve competencies in the labor supply. However, IBPAP Page 8

recognized that the current practices lacked scalability to achieve the industry target of 770,000 new hirers. Thus, the TA has drawn on the experience of UPOU and AIM. UPOU has a strong track record in delivering online education through its virtual and physical education network. It is tasked with courseware curriculum development. AIM with its industry-academe consulting and research experience will apply its knowledge hub and partnership enabling processes through value propositions and business modeling to the IBPAP talent gap resulting in industry- academe partnerships to close the talent gap.

The hub is all encompassing, both global and national in breadth and scope. Globally, the Virtual Hub can partner with other organizations in enriching its knowledge and practices. Moreover, the hub can elevate the Philippine IT-BPM industry to the world stage, as well as raise IT-BPM careers to be aspirational careers. The global scope will also allow the hub to reach out to Filipinos living internationally. Nationally, the Virtual Hub draws on the strength of each of the core co-initiators (IBPAP, UPOU, and AIM), in supporting the needs of the regional hubs and industry-academe partnerships.

Finally, the Virtual Hub will be agile and flexible adjusting to the changing needs of the stakeholders. 13 It shall inculcate the tenets of organizational development and organizational change.

While the Virtual Knowledge hub tends to be conceptual, and not constrained by physical boundary, in contrast, the Physical Knowledge Hub (Diagram 2) is tangible and bounded by physical space and location. The Physical Knowledge Hubs will be located across the Philippines in Next Wave Cities. The intent is to target the whole nation, particularly those identified as Next Wave Cities. 14 The Physical Knowledge Hubs, which may be referred to as Regional Hubs, will primarily drive the knowledge partnerships and industry-academe partnerships. The Virtual Knowledge Hub will guide the Physical Knowledge Hubs in curriculum development, assessment, certification, teacher training, business and operation modeling, and best practices research. IBPAP has identified IT-BPM centers in Next Wave Cities which combine a conglomeration of population, educational institutions and IT BPM infrastructure appropriate for talent development scalability. Here best practices will develop a customized business model to meet local labor market needs. Academic Associations and pilot talent development academe leaders will work with Government to identify emerging location for partnerships. UPOU and AIM will facilitate the academe-industry partnership.

13 Cappelli, P. 2008. Talent on Demand, Managing Talent in an Age of Uncertainty. Harvard Business Press. Boston, Massachusetts. 14 Next Wave Cities. Page 9

The Physical Knowledge Hubs may utilize the seven UPOU campuses as education and assessment centers. The online course materials that will be developed by UPOU could be accessed in these centers. This is particularly crucial for potential students who, either do not own personal computers, nor have Internet connection. Centers may assess students GCAT progress and teacher training outcomes.

IT-BPM companies, industry associations, local government units, and academic institutions will collaborate to target specific talent needs through industry- academe partnerships. Industry partners will provide support in terms of time, money, and effort. In addition, Industry partners will develop with academe internships, real-life learning experiences, and ultimately jobs for program graduates. Industry associations and academic institutions will align their curriculum to the needs of the industry from elementary, higher education, all through to executive development. Industry andacademe partners together with the LGUs and the community will work toward transforming the negative notion toward the industry into positive aspirations for careers in IT-BPM.

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The IT-BPM Global Knowledge Network (Diagram 3) tells the story of global collaboration in the development of best practices and the symbiotic relationship with the external world environment and the Philippines emerging leadership in the IT-BPM industry. Many of the multinational players have multiple locations around the world. Other research hubs share knowledge. Industry- academe research network develop best practices.

There is a unique global challenge for the Philippines. How does it deliver the IT-BPM industry battlecry “work abroad, live here” to the overseas workers and Filipino diasporas around the world? Promoting online learning for professional development through the Internet may help bring talent home and narrow the talent gap.

Essential Concepts for the IT-BPM Knowledge Hub

Organizational Development and Change. The TA addresses the issue of skills shortages in the IT-BPM industry with the apparent solution to align industry- academe competencies and scalability with job market demands. Achieving these goals will require rethinking this approach through the lens of organizational Page 11

development and change at the company, industry, academe, and government level.

Burke (2002) emphasizes the importance of agility and flexibility for organizational survival in an environment that is, “changing more rapidly than the organizations themselves.” He thus urges the researcher-consultant to investigate organizational complexities in order to discover the organization’s capacity for change.

Given the highly dynamic nature of IT-BPM industry job requirements and the manner through which they can be addressed, organizational development and change management theory and practice would be very helpful in developing the IT- BPM Knowledge Hubs.

Burke also distinguishes between content and process in organizational change. In the context of the TA, the IBPAP vision of addressing the talent shortage in the IT-BPM industry15 is considered content. IBPAP has begun to define this transformational vision through its Road Map 2016 and Next Wave Cities program.

The process is how change is planned for and achieved. The intricacies of the processes in the change effort will include considerations on achieving scale and sustainability through the development of an operations and business model.

IBPAP, as an association of associations of allied industries, must lead all stakeholders to achieve the collective industry vision. It must be clear on what lies in store for all who follow it into an unfamiliar future and what needs to be done to get there.

Burke notes that “the kind of behaviors required for content differ from those re uired for process.” 16 To determine the content, vetting the thought paper propositions with industry CEOs through forums and interviews will help IBPAP achieve consensus on the end goal. Determining the process requires leadership that is participative, open, agile, and committed. First adaptive leaders exist in IBPAP, UPOU, AIM, the government, and the academe. The question will be how to motivate other leaders in industry, government, and the academe to commit to and participate in the change process?

Resistance to change among the diverse IT-BPM industry stakeholders may exist. As part of the knowledge-mapping process through the thought paper, the researcher-consultants intend to identify issues that may feed this potential resistance.

15 Ibid 14 16 Ibid 15 Page 12

Co-Initiators of the IT-BPM Knowledge Hub

To reiterate the TA on the roles of the consultants, the discussion below is presented.17

Asian Development Bank (ADB). The Asian Development Bank facilitates the economic development of Asian countries. ADB and the Philippine Government agreed on a new country partnership strategy (CPS) 2011 – 2016, consistent with the Philippine Development Plan, 2011-2016. The strategic thrust includes, among others, an improved investment climate and private sector development and aims to drive broad based growth and poverty reduction efforts. The country operations business plan (COBP), 2014-2016, drawing on ADB’s Strategy 2020, further operationalizes the programs strategic focus on inclusive growth.

The Technical Assistance to the Philippines for Strengthening Knowledge- Based Economic and Social Development aligns with the Philippine Government’s strategy and program and ADB’s knowledge management plan. This TA supports the establishing of knowledge hubs to address skills shortages in high growth economic sectors such as the IT-BPO.

The Philippine Government. Studies show that the Philippines has the potential to attract large investments that can generate a significant number of new high-quality jobs in key sectors such as the IT-BPO industry. Thus, the Philippine Government is taking steps to improve competitiveness by pursuing efforts to move the economy into higher growth areas. However, the country’s education system’s output, its graduates, must be able to meet the labor demands in these high growth areas. The country’s schools are not providing the uantity and uality demands of the rapidly growing sectors.

Through the Department of Finance, the Philippine Government requested the Asian Development Bank to provide development technical assistance, the intricacies of which were agreed upon during a fact-finding mission on April 26 to May 4, 2012, to focus on the identified deficiencies. In essence, the government must come up with a way to align higher education curricula with both high- growth sector labor requirements and international standards. The President has approved ADB administering technical assistance. The Department of Finance is the executing agency.

University of the Philippines Open University (UPOU). The University of the Philippines (UP), the country’s state university and higher education pioneer, offers 240 undergraduate and 402 graduate programs, and has 14 campuses in the country, UP is one of the country’s leading EIs and has extensive experience in educational administration, curriculum design, knowledge management, and capacity development. The UP system includes the University of the Philippines Open University (UPOU), the only distance education institution in Southeast Asia

17 Ibid 1 Page 13

that offers most of its courses online. UPOU’s network consists of 10 learning centers, a virtual learning center, and its 19 testing centers are located here and abroad. UP boasts strong ties with industry players and has previously partnered with ADB in knowledge management initiatives.

UP will be responsible for designing and deploying e-learning products for industry-designed courses in HEIs and will also manage the teacher development component of the TA.

Asian Institute of Management (AIM). An Asian business school accredited with the AACSB, the Asian Institute of Management is a private, nonprofit teaching and research institution. The W. SyCip Graduate School of Business and The Stephen Zuellig Graduate School of Development provide graduate education in business and development management. The school was established in partnership with Harvard Business School. AIM is the first private management education institution in the world to partner with the World Bank via the establishment of the AIM-World Bank Development Resource Center. AIM also collaborates with the ADB in delivering programs that cultivate progress in Asian societies. AIM has strong professional ties with business, and experience in operating and managing knowledge hubs such as the ADB-assisted knowledge hub for poverty reduction and the World Bank–supported Global Distance Learning Center. AIM will lead the TA knowledge management components.

IBPAP. The Information Technology (IT) and Business Process Association of the Philippines (IBPAP), founded in 2004, is the enabling organization that supports and promotes the interest of its 300 firm members from the full range of IT and business process management (BPM) sectors. IBPAP undertakes industry- relevant research, develops programs to support the growth of the industry, and establishes partnerships with key stakeholders with the intent of making the Philippines the number one global destination for voice and non-voice BPM services.18

Since 2007 IBPAP, DOST-ICTO, and DTI, have jointly identified and promoted potential business growth sites, Next Wave Cities, where favorable conditions and stakeholder actions can spur increased employment opportunities for the public.19 Talent development, through industry public-private partnerships (IPPPs), has been identified as a means to take on the goal of more than one million talents in 5 years. Branding, marketing, and scaling of talent development programs are the current challenges.

IBPAP Talent Initiatives

18 BPAP. 2012 19 IBPAP Page 14

BPAP’s talent management programs are at various stages of deployment. Included in its 13 programs lineup is the Service Management Program, emerging services program, service technology management program, and its associate program.

TESDA Industry Training for Work Scholarship (I-TWSP). The I-TWSP is a government subsidized, industry co-managed near-hire bridging program for the IT-BPM industry. The initiative’s objective is to create a ualified, globally competitive and job-ready labor pool for the IT-BPM industry. TESDA and IBPAP co-managed the project, providing monitoring and management oversight. IBPAP, along with its partner industry associations, allocated scholarship vouchers and worked with TESDA- accredited technical vocational institutions (TVIs). Of the 66,967 graduates of the program, 47,492 or 70.9% were employed.

TESDA and IBPAP have demonstrated that the I-TWSP is an effective program for addressing the IT-BPM’s talent gap. It also has an efficient, transparent, and replicable business model for delivery.

Service Management Program (SMP). The Service Management Program (SMP), approved by the Commission on Higher Education (CHED) for implementation in school year 2012-2013, is an industry-practitioner designed 21- unit minor degree that can be taken by any university or high school student who wishes to pursue a career in the IT-BPM industry.

Advanced English Pre-employment Training (AdEPT). AdEPT was launched in 2008 as an industry-standard language training program. Its current version is delivered through a computer-based (CBT), e-learning platform. and is on its pilot run. Once fully tested, the CBT version will become a precursor to the AdEPT classroom program.

AdEPT Train-the-Teachers Training (T3). T3 trains teachers in AdEPT content and methodology so that they can effectively teach English proficiency to their students. The teachers are required to take the GCAT (described below), an orientation on the e-learning platform, and the facilitation skills and teaching methods training.

Basic English Skills Training (BEST). BEST, AdEPT’s e-learning precursor, is designed to increase the number of qualified applicants to the language-training program and includes such subjects as English Fundamentals, Listen and Type, Vocabulary Build up, Speech Lessons, and Reading Comprehension.

Page 15

Global Competitiveness Assessment Tool (GCAT). The Global Competitiveness Assessment Tool (GCAT), is an industry-developed online test to assess basic competencies requisites of entry-level employees.

4. International Models of Knowledge Hub and Knowledge Partnership

The MIT Leaders for Global Operations (LGO) case is presented for the purpose of examining and analyzing a model of knowledge hub and knowledge partnership, where lessons and best practices on leadership and management can be drawn. The contents of the case had been extracted from a book chapter authored by three of the faculty leaders from Massachusetts Institute of Technology (MIT).20

The MIT LGO successful knowledge partnerships may provide a guide to the TA’s industry-academe partnerships that will be established in the Regional Hubs.

USA – Leaders for Global Operations (FGO)

Sometime in the early 19 0’s, American manufacturing corporations were struggling because they were losing market share, most notably from the Japanese. The quality of American-made products deteriorated compared with Japanese made goods. This dilemma was shared by the nation as a whole and there was a clamor for answers.

Massachusetts Institute of Technology (MIT) felt partly responsible for the problem. The institution felt accountable for not creating appropriate programs in manufacturing and not attracting the best and brightest students in manufacturing. The institution then decided to develop a broad program that weaves together the disciplines of engineering and management to attract top students.

In the early phase of the program conceptualization, the school of engineering sought to establish an engineering research center for manufacturing and it sought funding from the National Science Foundation. The school of engineering believed that it needed the help of the Sloan School of Management to help American manufacturing corporations address their challenges and issues.

There were a number of attempts in finding sponsors, but to no avail. Then, in 1987, William Weitz, then vice Chairman of Motorola, hosted a meeting for senior executives from 10 to 15 companies and MIT. In this meeting, Weitz delivered an impassioned speech about the proposed program, American manufacturing, and

20 Hanson, W., Magnanti, T., & Rosenfield, D. (1996). Industry and universities: New Partners on the Endless Frontier. In Johnson, S. & Kidwell, J. (eds). Reinventing the university. New York: John Wiley. Page 16

the need for true partnership between industry and the university. This was the critical point for the beginning of the Leaders for Manufacturing Program (LFM).

Principles underlying LFM

The First Principle: The Partnership

LFM is centered on a partnership, that between MIT and industry, and within MIT, between the School of Engineering and the Sloan School of Management. The partnership demands strong and deep commitment from both MIT and the industry. First, the partners commit to engage in a long-term relationship. Second, the partners agree that within their organizations, people will devote significant amount of time and energy. Third, partners share scarce resources such as facilities, equipment, talent, and knowledge. Underlying the foregoing tenets, the partners acknowledged and agreed that they must not take on each other’s problems; that the program cannot jeopardize academic freedom; and that the participants cannot disregard commercial rights.

All partners translated their tenets of commitment into a set of responsibilities:

The industry responsibilities to the university are:

 Educating the university about industrial current practices, problems, and needs.  Willingness to provide long-term support to the university in the form of time, energy, resources, and “living laboratories.”  Ability to test new knowledge quickly and provide timely feedback on its value and applicability.

MIT’s responsibilities to the industry partners are:

 Willingness to listen to the needs of the industry and its customers.  Help to ensure that new knowledge is effectively and efficiently converted into innovations that meet customer needs.  elp for industry’s education process. Continual improvement requires both effective teaching on campus and effective on-site education of industry employees.  Letting industry have a voice in the educational process.  Valuing its roles in improving economic competitiveness, responding to the intellectual challenges of running a profitable industry, and helping to achieve national economic security.

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The second component of the partnership involved MIT’s School of Engineering and the Sloan School of Management. This entailed bringing together the expertise of both schools in developing the best engineers that understood good management, and mangers that had a deep understanding of the technical complexities of a modern corporation. LFM had to contend with bridging the differences between the two schools, as they have different value systems and educational philosophies.

Second Principle: Adequate Support

LFM needed $25 million in financial commitment from industry partners, as well as endowment funds to support its first five years of operation and to ensure its long-term viability. This vast amount of money was needed to provide full fellowships and six and one half month, fully supported internship, as well as fund manufacturing research projects, and the development of a new curriculum.

The amount of financial commitment required from the industry partners were viewed as essential triggers for eliciting enduring, long-term corporate commitment to the partnership. It commanded top leadership commitment from corporations solely from the money it required to be in the partnership. Companies that wanted to participate, solely by contributing the financial commitment, but not the time and people were declined.

Although the involvement in the partnership required a significant financial commitment, as well as time and personnel, companies were motivated for a variety of reasons. Some industry partners were interested in reshaping the landscape of higher education, particularly manufacturing education. Some wanted to attract the best managers and leaders in manufacturing. Some wished to raise the manufacturing’s prominence in the corporate world. Some were motivated to collaborate with other manufacturing companies. Some wanted to utilize MIT’s expertise, and finally, others wanted to undertake manufacturing research.

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The Third Principle: Enterprise-Wide Manufacturing

LFM took on a much broader understanding of manufacturing, negating the narrow definition of the past to encompass the total enterprise that covers areas of human resources, technology, customers, suppliers, community, and government, in addition to manufacturing and production operations.

MIT Integration Industry

Governing Board

Operating Committee

Company LFM Fellows Supervisors of Administration Internship Program Faculty

RAs Research Company Program Research STANDING COMMITTEES The following is a partial list of standing committees. All committees have members from MIT, industry partners, and students, except those marked with an asterisk (*), which have no student members.

Workforce or company Fellow –focused: Program-focused: focused: • Curriculum • Research* • Extended • Leadership • Internships Education* • Admissions • Recruiting and Placement

Replicating LFM in China

Twenty years after the first fellows program started, partner companies requested that the program be replicated in China. This request arose from the desire of American partner companies to employ globally competent managers and leaders in their China operations. During this period, manufacturing operations have been mostly transported out of the US and into China. By this time, LFM has been renamed to Leaders for Global Operations (LGO).

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The program that was established in China was thus called, China Leaders for Global Operations (CLGO). This program is forged through the collaboration of LGO, Shanghai Jiao Tong University (SJTU), and partner companies with manufacturing operations in China.

CLGO shares the characteristics and nuances of LGO, as the former was patterned after the latter. A few customizations were instituted to situate, contextualize, and articulate the needs and role of China.21

Relevance of LGO to IT-BPM Knowledge Hub

We can begin to cull out lessons on the LGO knowledge partnership and knowledge hub through its drivers of success.

 Commitment

Strong commitment is one of the founding principles of the partnership. It is the core foundation that binds everybody and every facet of the partnership together. The financial obligation, particularly from the industry partners, is a factor that highlights this commitment. The significant amount of the initial funds raised for the LFM program attracted the attention and lead to outright manifestation of depth of commitment by the stakeholders.

In addition, the partners’ long-term outlook demonstrated further commitment. Industry partners were required to commit not only funds but also time, effort, and other resources. Potential partners were not admitted into the program if they only made financial commitments. Partners felt safe and secure that they can rely on one another for the program to develop and meet their mutual needs.

Top leadership involvement of industry partners is another important characteristic of the success of the partnership. It was through industry’s senior executives’ commitment and active participation that catalyzed the formation, maintenance, and expansion of the partnership.

21 Keitel, R. and Ledesma, M. (2010). China Leaders for Global Operations: A Partnership in the Manufacturing Industry. Presented at the 14th UNESCO-APEID International Conference, Education for Human Resource Development, 21-23 October 2010, Bangkok, Thailand.

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 Shared Responsibilities

The LGO knowledge partnership thrives on shared responsibilities between academe and industry partners. Palpable in the partnership is the sense of reciprocity in knowledge management. Both the academe and the industry partners take it upon themselves to be accountable for continuous learning through knowledge sharing and knowledge creation. The academe relies on industry for learning about the problems, needs, and advances in the manufacturing world, while industry depends on academe to help them with innovative solutions on their operation and leadership issues and challenges. Explicit is the recognition of each partner’s needs and priorities and ensuring that these are heard and addressed through collaboration and reciprocity.

 Mutual Benefits

Both academe and industry partners derive benefits from the partnership. The realization of benefits continually compels and motivates the partners to further sustain the partnership. The industry derives benefits by gaining recruiting access to graduates, gaining a provider of workforce continuing education through distance and leadership courses, and gaining huge savings and better operation processes resulting from learning via internships and theses. The academe derives benefits through continuous faculty development, curriculum development, refined research strategies, and research productivity.

 Clear Direction

Given the instituted operational framework and committees’ leadership allow for clear direction towards realization of goals. There is a formal structure to the partnership. The integration of the partners’ responsibilities was governed through the partnership Governing Board, Operating Committees which engaged in three (3) partnership processes: 1. Fellow-Focused: curriculum, leadership and admissions issues, 2. Program-focused: research and internships; and 3. Workforce or company focused: extended Education and Recruitment and Placement. Faculty and industry partners as well as students were engaged in relevant standing committees.

5. Global Knowledge Hubs and Research Networks

LGO

Adding to the best practices in the IT-BPM global arena are global knowledge hubs and research network emerging from industry-academe partnerships. In the early years of the LGO development, both graduate student and Page 21

faculty research projects led to impressive outcomes. Industry estimated $28 million in savings through implementation of innovations that evolved from internships and theses projects. LGO fellows, faculty, and industry personnel published more than 400 academic journal articles (1998) drawn from the LGO partnership. As on the Dec 31, 2013, MIT LGO has received about 21,000 citations on Google Scholar.22

The Polaroid Corporation is an example of the industry-academe partnership where significant changes in industry practices through knowledge sharing have been made. Polaroid desired to combine organizational development with change management in manufacturing. LGO faculty-student teams identified how the two functions could to be integrated drawing from another company’s quality system and applying the process to Polaroid. As a result several LGO graduates were employed at Polaroid to bring “best practices” and act as “change agents” in the implementation of this integration project. The Polaroid case demonstrated how students’ research projects lead to organizational change and employment of graduates further depending the academe industry partnership.

The Offshoring Research Network

Currently, there are a few IT-BPM global research centers that function as collaborative knowledge hubs linking academic scholarly research with industry based issues and challenges. Duke University’s partnership with Fuqua School of Business houses The Offshoring Research Network (ORN) as a global network of renowned research universities, top scholars, and industry practitioners that provides unparalleled data and insight into the globalization of services. ORN tracks more than 2000 companies and 700 service providers. Since 2004, ORN surveys have tracked offshoring practices at the function, industry, and implementation levels. ORN has become one of the most recognized international research network tracking the globalization of services. The university network extends to Australia, Korea, and Japan. The ORN creates partnership through an annual membership fee of $25,000. Companies join periodic round tables, receive research reports, and participate in international conferences. Members received invitations to join the Association of International Business (AIB) special meeting in Moscow and the Academy of Management’s 7 rd Annual Meeting in Orlando, Florida. These are opportunities for practitioners and academics to share interests and develop collaborative relations contributing to the knowledge hub.23

London School of Economics, The Outsourcing Unit

22 http://scholar.google.com.ph/scholar?q=MIT+leaders+for+Manufacuting &btnG=&hl=en&as_sdt=1%2C5 23 http://www.fuqua.duke.edu/offshoring/about/ Page 22

The Outsourcing Unit of the London School of Economics (LSE) and Political Science was founded to research at the international, governmental, and corporate levels global issues surrounding outsourcing. The Outsourcing Unit has three goals: (1) through research identify outsourcing best practices; (2) raise the standard of knowledge; and (3) working with government, organizations, and companies to influence policy. The Unit is housed in the LSE Systems Information Group with more than twenty full-time faculty, fifty doctoral degree students and one hundred fifty masters degree students. Its research focus is geared to five key drivers of effective outsourcing detailed below.24

 Managing risk;  Leveraging core capabilities;  Delivering effective sourcing strategies;  Streamlining cost and performance;  Developing the innovation agenda.

The research reports and white papers drawn from academic industry partners are shared with The Outsourcing Unit’s stakeholders.

Relevance of Research Networks to IT-BPM Knowledge Hub

The review of literature on research networks conspicuously revealed the lack of citations on India or the Philippines. Absent are knowledge linkage with Indian or Philippine based academic research centers. More analysis is necessary to discover if linkages exist. The question is why Philippines and Indian industry- academe players are not included? Further research may reveal and understanding of this anomaly.

6. Summary

This thought paper presents the initial framework of the IT-BPM Knowledge Hub. In addition, propositions are herein presented which were derived from the framework and other essential concepts related to the knowledge hub. The foregoing discussions and ideas are intended to re-affirm the change that the IT- BPM industry seeks to pursue. Further, this thought paper is deemed to spark new inspirations and novel insights from co-initiators and stakeholders as we further engage in developing the IT-BPM Knowledge Hub and its business model.

24 http://www.outsourcingunit.org/ Page 23

Propositions:

1. The Virtual Knowledge Hub recognizes the complexity of the IT-BPM talent supply development. The TA should look beyond HEIs to include TVIs and K- 12 programs. This concept of academe is more inclusive than HEIs alone as TVIs and K-12 pilot programs are developing talent for the IT-BPM sector. Therefore, there is a need to develop the talent supply qualified for industry beyond the HEI boundaries.

2. The assessment tool, GCAT, is the industry standard. What are the complexities of this assessment? How can the GCAT be transformed into a professional license administered by the Department of Labor and Employment through its Professional Regulation Commission (PRC)? What are the advantages and disadvantages of this approach? How can a pre- GCAT test be developed by UPOU and administered on-line? How can the GCAT PRC license be confirmed on-line?

3. The Virtual Knowledge Hub draws on international and local best practices forming research opportunities with faculty and industry personnel.

4. The academe-industry partnerships require strong support and leadership from the IT-BPM companies. Partnerships demand financial commitment, as well as commitment of effort, time, and other resources for success. Openness to change and a willingness to engage in the complexities of talent development are also required.

5. The evangelists and the first adapters both in the industry and academe, must carry the message of change to other stakeholders. Current existing pilot programs may integrate on-line learning and assessment, thus, demonstrating scalability.

6. Internships must be real and lead to IT-BPM jobs. IT-BPM companies must provide meaningful internships that benefit the company, the academe, and the student.

7. Regional knowledge partnerships must be aligned with the labor market needs.

8. Creating the IT-BPM aspirational career vision requires a campaign to reach students, career shifters, parents, academics, and the greater Philippine population. “Work abroad, live here,” needs to become a living mantra for inclusive growth.

9. The IT-BPM Knowledge Hub will drive the process to further enhance the Philippines’ position on the world stage for IT-BPM. As a global leader, The Page 24

IT-BPM Knowledge Hub will promote industry-academe research to highlight the best practices and strategic issues.

7. Future Direction

The tentative IT-BPM Knowledge Hub framework, propositions, concepts, and best practices presented in this thought paper will continually evolve as the TA co-initiators engage in the knowledge-mapping process over the forthcoming months. More needs to be done as we seek to institute change. Other stakeholders need to be heard and their inputs integrated in the framework, as we develop the IT-BPM Knowledge Hub business model.

It is foreseen that the following activities will be conducted:

 Discussions and Interviews with stakeholders (CEOs, HRs, Academe, Associations)  Reviews of other best practices in the Philippines and globally  Discussions with knowledge management experts (Olivier Serrat of ADB)  Development of the business model for operating and managing the knowledge hubs

8. Further References

Keitel, R. & Ledesma, M. D. (forthcoming). The Government IT-BPO Industry Partnership for Inclusive Growth in the Philippines. International Journal of Development and Sustainability (IJDS), Japan. (ISSN: 2186-8662)

Keitel, R. & Ledesma M.D. (2009). Night work prohibition on women workers in the Philippines. ILO Conference on Regulating for decent work, presented Geneva 8-10 July 2009.

Keitel, R. (2008). A proposed model of higher education institution-call center industry partnership. The Asia-Pacific Education Researcher Journal. Vol 17, No 2. (ISSN 0119-5646X)

Kumar, S. & Leonard, A. The Art of Knowledge Exchange, A Results-Focused Planning Guide For Development Practitioners. The World Bank.

Serrat, O. (2012). Business Model Innovation, Knowledge Solutions. Asian Development Bank.

Serrat, O. (2008). Creating and Running Partnerships, Knowledge Solutions. Asian Development Bank 1

The Deployment and Pilot of Knowledge Hubs

Impementing Agency: IT-Business Process Association of the Philippines (IBPAP)

BACKGROUND/RATIONALE

In September 2013, the Asian Development Bank (ADB) contracted the IT-Business Processing Association (IBPAP), the Asian Institute of Management (AIM) and the University of the Philippines Open University (UPOU) to implement over a 26 month period TA-8164 PHI: Strengthening Knowledge-Based Economic and Social Development. The TA is designed to address the skills shortage in high growth industries such as the IT–BPM sector by aligning the higher education curriculum with both international standards and labor demand while building on public-private initiatives. The TA Outcome is a replicable and sustainable system of ICT-enabled knowledge hubs for improved teaching and learning of IT–BPM industry based curricula in higher education institutions (HEI). Three key Outputs will accomplish the Outcome of the TA:

The IBPAP, contracted by the ADB in September 2013, is principally responsible for the overall management of the TA, for coordinating the different component activities, including ensuring adequate industry participation, closer university-industry linkage, deployment of the pilot knowledge hubs and sustainability of TA benefits. It established a project management team that serves as the operations unit for the TA implementation. It also acts as the Secretariat for the project’s Project Steering Committee (PSC) that meets once a quarter.

In the Consultant’s Inception Report, the IBPAP prepared its workplan for deploying the Knowledge Hubs using a very simple, theoretical approach that required minimal resources. Additionally, it was banking on the expertise of the Asian Institute of Management to work closely with IBPAP in providing technical guidance and resources for setting up the hubs as defined in the AIM TORs for the project.

Following the initial consultations and discussions on the design of the knowledge hub and the criteria for selection, it was determined that these initial assumptions were no longer valid. Deploying the knowledge hub is a more complex process that will require a more pragmatic approach and where the deployment process needs to be right resourced in order to succeed. It will require consultation with many stakholders in the HEIs, local government, national government and the private sector firms and industry associations. It will also require a solid assessment of a number of shortlisted HEIs or institutions to determine capacity level and commitments to deliver the Knowledge Hub activities. 2

ADDITIONAL TECHNICAL ASSISTANCE:

Given the progress of the AIM in preparing the Business Model for the Knowledge Hubs, IBPAP realizes the need to provide internal technical resource time to complement the work being done by AIM so that critical business model design parameters are sufficiently identified and a suitable overall framework can be finalized and deployed within the project timelines.

The IBPAP requests the ADB for additional technical assistance to facilitate the pilot of the Knowledge Hubs. This activity is within the scope of the overall TA design and is a vital component in strengthening the partnerships between industry and academic institutions. However, this initiative is not included in the list activities to be undertaken by IBPAP and therefore not part of the Consultant’s approved budget. The additional TA which is for new activities and will be implemented within the existing project timelines provided that approvals are secured within October-November, 2014.

Objectives:

The objective of this TA is to set up pilot knowledge hubs by Q2, 2015.

The specific output of this TA is to identify and deploy one pilot hub and assist in developing the capacity for maintaining and managing the hubs.

Specific Scope:

Task 1: To finalize the design of the business model for the knowledge hub and identify a shortlist of prospective knowledge hub sites.

Task 2: To Set-up one knowledge hub

Task 3: To Develop capacity for managing and maintaining knowledge hub

Expected Activities & Outputs:

This additional TA/work package will include the following:

Task 1: To finalize knowledge hub design and business model.

 Conduct consultation workshops with different stakeholders including industry associations, CEOs, HEIs, government education administrators & policy makers and other stakeholders.  Finalize business model, institutional arrangements, management arrangements, deployment of SMP e-learning courses, revenue/pricing structure and roles.  Identify/shortlist sites of for knowledge hubs based on a pre-defined criteria

Task 2: To Set-up one knowledge hub.

 Draft MOAs and other agreement for setting up the KH  Negotiate with selected institution  Prepare career advocacy and information campaigns  Assist knowledge hub institutions in setting up facilities, staffing, program applications, etc.  Conduct orientation, briefing, training on IT-BPM sector and knowledge hub functions, e-SMP courses and curriculum, protocols for management and operations, etc  Integrate eSMP program delivery  Provide support during initial stage of deployment

Task 3: To Develop capacity for managing and maintaining knowledge hubs

 Monitor initial operations and assist in defining adjustments or troubleshooting for the eSMP program activities, as required  Conduct training/coaching as required.  Assist in linking knowledge hub with HEI’s and industry firms and associations in the area.

Schedule of Implementation:

Task Task Description Schedule 2014 –2015 0 To complete administrative requirements to secure approval for additional TA October-November 2014 1 To finalize the design of the business model for the knowledge hub and identify a December-January 2014 shortlist of prospective knowledge hub sites. 2 To Set-up one knowledge hub January-March 2015

3 To Develop capacity for managing and April-June 2015 maintaining knowledge hubs

The Development and Implementation of a Management Information System and Project Portal

Impementing Agency: IT-Business Process Association of the Philippines (IBPAP)

BACKGROUND/RATIONALE

The IBPAP, contracted by the ADB in September 2013, is principally responsble for the overall management of the TA, for coordinating the different component activities, including ensuring adequate industry participation, closer university-industry linkage and sustainability of TA benefits. It established a project management team that serves as the operations unit for the TA implementation. It also acts as the Secretariat for the project’s Project Steering Committee (PSC) that meets once a quarter.

During the first PSC meeting held on January 30, 2014, the IBPAP presented an industry situationer including an update on industry developments related to talent development. Following that presentation and the briefing on project activities from the three project contractors, the PSC members realized the fast pace at which the industry is moving and saw the need to keep stakeholders, particularly the PSC members, updated both on industry developments and project activities. Consequently, the PSC required the project to set up a website/portal which could serve as the venue for updating the PSC, project implementers, potential or enrolled students and other stakeholders on developments in the IT-BPM sector. It will also serve as the tool for communicating with the project partners on a regular basis and for piecing together information from the different activities in a manner that will facilitate accomlishment of the overall projct goals.

In addition to communicating to its stakeholders, IBPAP is also cognizant of the need for a system that can, at a program level, help systematically track and provide project 2

stakeholders information on different activities including the knowledge hub and supporting enrollment through career advocacy and information campaigns/initiatives to boost participation. An important finding of the Learners’ Profile that was conducted by the UPOU prior to developing the first two eSMP courses shows that one of the factors limiting enrollment is the seeming unclear or lack of understanding of the kinds of careers in the IT-BPM sector.

IBPAP is exploring several options and tools that will respond to ithe communication and management information needs and career advocacy and support initiatives to support the eSMP offering of UPOU, taking into consideration cost efficiency and the existing resources that are availble at IBPAP for these activities.

ADDITIONAL TECHNICAL ASSISTANCE:

The deployment of the MIS/Management Information tool and the additional career advocacy and suppport initiatives were not identified as part of the initial project cost because it was assumed that the existing IBPAP systems and activities in these areas would be sufficient. However, because of the expansive reach of the eSMP program and results of the Learning Profile, it is important that more resources be dedicated to these emerging needs so that the project can effectively address the project’s requirements in these areas.

The IBPAP requests the ADB for additional technical assistance as part of its overall project management function, specifically in keeping the PSC members informed of the industry developments and updated on project activites, in strengthening its project monitoring and evaluation process and in setting the foundation for the establishment of the knowledge hubs. This activity falls within the original scope of the project design and will add value to and support the deployment of the eSMP and the establishment of the knowledge hub. This initiative was not part of the original list of activities to be undertaken by IBPAP and therefore not part of the original list of activities to be undertaken by IBPAP and therefore not part of the Consultant’s approved budget. The additional TA will fund new activities an will be implemented within the existing project timelines provided that approvals are secured within October-November, 2014.

Objectives:

The objective of this TA is to increase engagement of the different stakeholders through better communication and timely access to industry and project information.

The specific output of this TA is to deploy and maintain the communication/MIS tool, provide supplementary career advocacy and information dissemenation initiatives directed at the offering of eSMP, supporting the internship process and provide mangement and governance documentation to the different stakeholders.

Specific Scope:

Task 1: To set up, deploy and maintain the tool for communicating with different stakeholders and the project MIS.

Task 2: To conduct career advocay and information campaigns/activities for potential enrollees and teachers/HEIs.

Expected Activities & Outputs:

This additional TA/work package will include the following:

Task 1: To set up, deploy and maintain the tool for communicating with different stakeholders and the project MIS.

 Evaluate IT communication and MIS options  Deploy communication tool and MIS  Maintain communication tool and MIS

Task 2: To conduct career advocay and information campaigns/activities for potential student and teacher enrollees/HEI partners.

 Review results of Learners’ profile & other feedback from stakeholders  Conduct consultation sessions with HEIs, Industry Associations and Industry Partners  Prepare Career Advocacy Campaign  Prepare Information Campaign materials and collaterals  Conduct Career Advocacy Campaign for eSMP partners and in Knowledge Hubs

Schedule of Implementation:

Task Task Description Schedule 2014 –2015 1 To set up, deploy and maintain the tool for communicating with different stakeholders and the project MIS. October-November 2014

2 To conduct career advocacy and information campaigns/activities for potential student December 2014 and teacher enrollees/HEI partners

The Design and Implementation of eSMP Courseware (Service Culture & Systems Thinking)

Impementing Agency: University of the Philippiines Open University (UPOU)

BACKGROUND/RATIONALE

The UPOU is the primary resource for developing and delivering distance e-learning courses. It is working closely with the IBPAP in converting the Service Management Program (SMP) courseware, an industry designed program prepared by IBPAP for entry and staff level positions, to e-learning materials/courseware which it will deliver as 100% masssive open distance e-learning (MODeL) courses beginning in late July 2014. UPOU shall also lead the teacher development component of the program.

Based on approved funding levels and project workplan, UPOU is developing 3 of 5 subjects of SMP, namely BPM-101, Business Communications (BusCom) and Service Culture. The conversion process for BPM 101 and BusCom to e-learning mode are being completed in time for classes to commence on July 26, 2014. The Service Culture course will be completed in time for its offering sometime in late October. Since the SMP Program was launched on June 19th, the initial enlistment/enrollment has reached close to 600 applicants. Pre-class administrative and diagnostic activites are now underway to prepare them for classes.

The UPOU has made substantial progress in converting the SMP and the initial response to the enlistment/enrollment call confirms that a strong demand exists for the program. While a profiling is still being completed, what is clear is that the SMP may now be accessed nationally and globally. A substantial number of these potential enrollees are composed of OFWs located in different parts around the world (London, Dubai,

Singapore, Malaysia, to name a few) and those from the Philippines come from as far as Mindanao. However, UPOU needs to complete conversion of the remaining two courses so that it can offer the full program to the public and fully meet the industry skillset requirements tht will allow these potential BPM workers to apply for jobs in the IT-BPM sector.

ADDITIONAL TECHNICAL ASSISTANCE:

The hard copy SMP courseware for five subjects was initially reviewed during the Inception period. One of the highlights of the Inception report was the conclusion that the UPOU approved budget for the development of the SMP to e-learning courseware will be sufficient to develop only three of the five courses. UPOU prioritized the development of BPM 101, BusCom and Service Culture based on the pedagogy for delivering the Program. It will require additional financial resources to complete the development of the two remaining courses – BPM 102 and Systems Thinking – before it can offer the full SMP program.

The UPOU requests the ADB for additional technical assistance as part of the component for developing the e-learning courseware and delivering the eSMP online to develop the e-learning courseware for the remaining 2 SMP courses – BMP 102 and Systems Thinking.

Objectives:

This TA is essential for the project to achieve its overall objectives of “improving teaching and learning of IT-BPM industry based curricula and instruction in higher education institutions”. The additional two courses will be delivered to complete the 900 faculty members from participating HEIs and the 3000 students participating in the program.

The specific output of this TA is to develop e-learning courseware and deliver BPM 102 and Systems Thinking online beginning 2nd semester of 2015.

Specific Scope:

Task 1: Review existing course materials of BPM 102 and Systems Thinking courseware and other related materials .

Task 2: Develop modules and study guides for BPM 102 and Systems Thinking for MODeL mode of instructional delivery. The TA will be used to finalize and deploy the courseware development plan, prepare cases to be used in the courses, develop additional course materials e.g. multimedia materials and learning activities, and design assessment for both courses.

Task 3: Deliver BPM 102 and Systems Thinking under the Massive Online Distance eLearning (MODeL) framework

Expected Activities & Outputs:

This additional TA/work package will include the following for BPM 102 and Systems Thinking)

Task 1: Review and enhance IT-BPM Industry designed courses

 Review of existing course materials based on course objectives and overall learning outcomes for the Service Management Program  Review of other related documents  Finalize course outlines with learning objectives

Task 2: Develop learning modules and study guides for MODeL mode of instructional delivery

 Finalize course module development plan  Deploy course module development plan  Conduct research on content (cases)  Develop course materials (including learning activities) for 2 courses (BPM102 & Systems Thinking)  Design and develop pedagogically sound assessment  Produce multimedia materials (i.e. video, animation, podcasts etc,)  Revise course materials to incorporate review inputs/comments  Submit revised course materials  Complete onine materials for 2 courses including study guides/etutor training)  Develop Teacher Guides for the Training of Teacher component

Task 3: Deliver online courses

 Design learner support systems  Set up and maintain necessary plug-ins to the Learning Mangement System  Training of Tutors on e-learning (2 courses)/Training of Teachers  Submit Onine course delivery report  Run online course as Massive Open Online Distance eLearning courses (MOOCs framework) (1st batch)  Certify those who completed the course and passed the Assessment for Certification  Accredit teachers who can teach the two courses  Submit online course delivery report (2 courses)  Conduct Process documentation  Submit monthly interim report  Write final report  Submit closing report

Annex 8: DOF Endorsement Letter to ADB (Not for Disclosure)

Annex 10 a-c: Contract Variation 1-3 (Not for Disclosure)

Asian Development Bank

Department of Finance Republic of the Philippines

IT-BPO Industry Knowledge Hub Project

Deliverable 1: Establishing the Criteria for Locating Knowledge Hubs and Selecting Beneficiary HEIs/SUCs

Implementing Partners

Information Technology and Asian Institute of Management University of the Philippines Business Process Association Open University of the Philippines

DRAFT (Apr 4)

Deliverable 1: Establishing the Criteria for Locating Knowledge Hubs and Selecting Beneficiary HEIs/SUCs

TA-8164 PHI: Strengthening Knowledge-Based Economic and Social Development – 1 BPAP (46234-001)*

Prepared by

Information Technology-Business Process Association of the Philippines Consultant 15 February 2014

iii

Acronyms and Abbreviations

AdEPT Advanced English Proficiency Training ACPI Animation Council of the Philippines, Inc. ADB Asian Development Bank AHP Analytic Hierarchy Process AIM Asian Institute of Management BEST Basic English Skills Training BPO Business Process Outsourcing CEO Chief Executive Officer BSBA Bachelor of Science in Business Administration BSIS/IM Bachelor of Science in Information Systems/Information Management BSIT Bachelor of Science in Information Technology CCAP Call Center Association of the Philippines CHED Commission on Higher Education CMO CHED Memorandum Order COA Commission on Audit COD Center of Development COE Center of Excellence DBP Development Bank of the Philippines DMC Developing Member Countries DOF Department of Finance DOST Department of Science and Technology DOLE Department of Labor and Employment DSWD Department of Social Welfare and Development DTI Department of Trade and Industry FGD Focus Group Discussion GO Government Organization GDAP Game Developers Association of the Philippines GDP Gross Domestic Product GMAM General Membership Assembly Meetings HEI Higher Educational Institutions HIMOAP Healthcare Information Management Outsourcing Association of the Philippines HR Human Resource IBPAP Information Technology–Business Process Association of the Philippines ICT Information and Communication Technology ICTO Information and Communication Technology Office ILO International Labor Organization IT Information Technology IT–BPM Information Technology–Business Process Management I-TWSP Industry-based Training for Work Scholarship Program K-12 Kindergarten to Grade 12 LGU Local Government Unit LMS Learning Management Systems LUC Local Universities and Colleges M&E Monitoring and Evaluation NEDA National Economic Development Authority iv

Acronyms and Abbreviations

NGO Non-government Organization NRCO National Reintegration Center for OFWs OFW Overseas Filipino Worker OSY Out-of-School Youth OWWA Overseas Workers Welfare Administration PAGCOR Philippine Amusement and Gaming Corporation PDP Philippine Development Plan PDS Philippine Digital Strategy PKH Physical Knowledge Hub PMF Project Management Framework PNU Philippine Normal University PO People’s Organization PSC Project Steering Committee PSIA Philippine Software Industry Association PWD Persons with Disability RBM Results-based Management SEI Science Education Institute SME Small to Medium scale Enterprise SMP Service Management Program SUC State Universities and Colleges TA Technical Assistance TESDA Technical Education and Skills Development Authority TOR Terms of Reference TVI Technical and Vocational Institutions TULAY Tulong Alalay UNDP United Nations Development Program UPOU University of the Philippines-Open University VKH Virtual Knowledge Hub WB World Bank WHO World Health Organization

TABLE OF CONTENTS

EXECUTIVE SUMMARY ...... 1 I. INTRODUCTION ...... 2 II. BACKGROUND ...... 3 III. OBJECTIVES OF THE STUDY ...... 5 IV. REVIEW OF RELATED LITERATURE AND SELECTED BEST PRACTICE ...... 5

TM A. IBPAP’S NEXT WAVE CITIES ...... 5 B. LOCAL KNOWLEDGE HUB INITIATIVES ...... 6 C. KNOWLEDGE HUB INITIATIVES IN THE ASIA PACIFIC REGION...... 7 D. KNOWLEDGE HUBS IN OTHER PARTS OF THE WORLD ...... 7 V. APPROACH AND METHODOLOGY ...... 8 VI. CONCEPTUAL FRAMEWORK ...... 9

A. WHAT IS A KNOWLEDGE HUB? ...... 9 B. KEY CHARACTERISTICS OF A HUB ...... 11 VII. DEFINING THE CHARACTERISTICS AND MEASURE OF POTENTIAL KNOWLEDGE HUBS USING THE ANALYTICAL HEIRARCHY PROCESS ...... 13

A. PROCESS AND PROCEDURE ...... 14 B. CHARACTERISTIC 1: CONTENT...... 15 C. CHARACTERISTIC 2: DELIVERY METHOD ...... 18 D. CHARACTERISTIC 3: AUDIENCE ...... 21 E. CHARACTERISTIC 4: GEOGRAPHICAL LOCATION ...... 25 F. CHARACTERISTIC 5: CHAMPION/PRIMARY OWNER ...... 28 VIII. CONCLUSIONS AND RECOMMENDATIONS ...... 31 IX. OTHER CONSIDERATIONS FOR SELECTING KNOWLEDGE HUBS...... 33 APPENDIX 1. DISTRIBUTION OF HIGHER EDUCATION INSTITUTIONS ...... 35 APPENDIX 2. PHILIPPINE REGIONS AS OF 31 DECEMBER 2013 ...... 36 APPENDIX 3. SAMPLE QUESTIONNAIRE ...... 40 ANNEX A. COMPUTATIONAL SPREADSHEET (SAMPLE FILE) ...... 46

EXECUTIVE SUMMARY

The Information Technology and Business Process Management (IT-BPM) industry is one of the major contributors to the Philippine economy. IT is considered one of the top four sources of foreign exchange. The industry is projected to earn US$25 billion in revenues and generate 1.3 million direct and 3.2 million indirect jobs by 2016. To support the steady supply of talent, the Information Technology – Business Process Association of the Philippines (IBPAP) has been working with government education agencies and the academe to implementing various talent development programs. IBPAP is working closely with the Asian Institute of Management (AIM) and the University of the Philippines Open University (UPOU) to explore and develop new strategies for scaling up its talent development program in order to meet the 2016 labor demand. It will establish and implement three Knowledge Hubs primarily designed to deliver its Service Management Program (SMP) and other programs.

A Knowledge Hub is defined as an institution, entity, network or group, typically with high connectedness and high internal and external networking and knowledge sharing capabilities that operates in a knowledge domain or activity and whose excellence is recognized by those who engage with or are supported by it. They are local innovation systems that are nodes in networks of knowledge production and knowledge sharing.

Knowledge Hubs fulfill three major functions:

(i) to generate knowledge, (ii) to transfer knowledge to sites of application; and (iii) to transmit knowledge to other people through education and training.

Internationally and locally, knowledge hubs are being developed and implemented locally and internationally by many different sectors and have been found effective in attracting foreign investments, in providing access to high quality education and training and in creating a knowledge-based economy to name a few.

This study aims to define the overall framework for defining a criteria and process for identifying knowledge hubs and selecting beneficiary Higher Education Institutions (HEI)/State Universities and Colleges (SUC). It shall define a criteria for the establishment of knowledge hubs. The study recommends that five key elements be present in the criteria:

(i) content, (ii) delivery method, (iii) audience, (iv) geographical location, and (v) champion/primary owner.

Facets of each element have been identified to define features and details that need consideration. For content, the facets are alignment to the overall objective, cost of delivery, demand from the audience, requirement by the industry, and urgency of the industry need. The facets for delivery method are availability, ease, effectiveness, maintenance, and quality. Employability, resources, support, sustainability, and volume are the facets for the audience. The associations, Center of Excellence/ Next Wave City rank, IBPAP members, partnerships, and schools are the facets for geographical location. Lastly, the facets for the champion/primary owner are physical accessibility, current infrastructure, local and

international linkages, commitment of management and administration, and availability of capable personnel.

The stakeholders, i.e. the members of the different associations under IBPAP, will determine the weight of each characteristic through the Analytic Hierarchy Process. Rating of the alternatives per characteristic will also be done. At the end of the exercise, both characteristics and alternatives will be ranked according to priority. In addition to the identified criteria, a second level – SMP specific criteria is also being proposed as an additional selection filter.

The Analytical Hierarchy Process and the above-mentioned criteria are expected to help IBPAP in the selection of the three institutions that will serve as Knowledge Hubs.

I. INTRODUCTION

In September 2013, the Information Technology-Business Processing Association of the Philippines, the Asian Institute of Management, and the University of the Philippines Open University were contracted by the Asian Development Bank (ADB) to implement the Technical Assistance (TA) for Strengthening Knowledge-Based Economic and Social Development (TA-8164 PHI). The project is designed to assist the development of the Information Technology-Business Process Management (IT-BPM) industry by providing alternative models and scale-up mechanisms to provide continuous supply of qualified talent that it needs and, more importantly, strengthen the higher education system by introducing innovative and creative education programs that are relevant to the country’s competitive advantage in economic sectors like the IT-BPM industry.

As the lead agency for the TA, IBPAP is responsible for preparing a number of studies and papers. The first of these is the framework for defining the criteria for locating Knowledge Hubs and selecting beneficiary HEIs/SUCs (Deliverable 1). From a project perspective, this study follows on from the AIM Thought Paper on the Knowledge Hubs. It will serve as an input for the preparation of the overall strategy and roadmap for enhancing curricula and instructions in HEIs/SUCs designed to meet the labor supply needs of the IT-BPM industry and other follow on studies intended to improving the quality of services and achieving closer university linkages, for example. It shall also provide direction for developing models and defining best practices for the continuous improvement of curriculum. More importantly, it will be used as the primary basis for identifying the three pilot Knowledge Hub sites for the project.

This study will benefit both the academe and the IT-BPM industry by defining the parameters within which institutional mechanisms such as the Knowledge Hubs can help bring more sustainable and effective academe-industry linkages, strengthen academic programs and increase productivity at the firm level. In particular, it can pave the way for creating greater access to relevant training/education to people anywhere especially in the countryside who wish to be employed or involved in the IT-BPM industry. Through the use of information or knowledge gained from the hubs, the Filipino workers in IT-BPO companies or those who are planning to join the IT-BPM industry can become more competent and competitive in delivering excellent service to their clients. Excellent customer and technical services can mean more investments, better employment opportunities and income for the employees, and increased economic activity for the country as a whole. 3

Other high growth industries are also expected to benefit from this study as the knowledge hubs are intended to be developed using replicable models. Hence, policy and decision makers both the government and private education sectors considering scaling up educational programs will also find this study useful as this will give them a more rational and systematic blueprint for selecting HEIs that can serve as knowledge hubs.

II. BACKGROUND

The Information Technology and Business Process Management (IT-BPM) industry is one of the fastest-growing industries in the Philippines. It is one of the top four sources of foreign exchange, along with electronics, remittance from Overseas Filipino Workers (OFWs), and tourism.1

The IT-BPM workforce grew at an average annual rate of 21% between 2007 and 2011. The industry is projected to earn US$25 billion in revenues by 2016. At this size, it could account for about 8% of Philippine Gross Domestic Product (GDP). This goal collectively translates to about 1.3 million direct employees and approximately 3.2 million indirect jobs that include a sizeable amount in the informal sector. Demand for talent has already outpaced supply, and meeting the 2016 requirement is a major concern.

Historically, talent supply in the industry was in excess of demand. The IT-BPM industry was able to attract its talent, in part, because of the limited scope for full employment in other sectors. However, since 2010, demand has consistently outpaced supply. The industry hires only an average of 5% – 10% of applicants largely because of inadequate education and training that is suitable to a career in the IT-BPM industry.2 The country’s educational institutions who are well aware of the industry’s requirements continue not to be able to provide a steady, suitable number of qualified graduates to meet the demand. In addition, there are not enough entry to mid-level managers or senior executives in the industry to lead the growing pools of young employees. The problem in recruitment is further compounded as the global IT-BPM composition is now evolving dramatically. New and more lucrative market settings such as health information management and back office operations are bringing opportunities for expansion in voice and more complex emerging services are being required in non-voice that is putting tremendous pressure on availability of quality talent.

At present there are 2,299 HEIs in the country. 656, or 28.53%, are public HEIs. 547 of these are State Universities and Colleges (SUCs), 95 are Local Universities and Colleges (LUCs), 1 is a CHED-Supervised Institution, 5 are classified as special HEIs, while the remaining 8 are considered as other government schools. Private HEIs accounts for 71.47% of the higher education system, with a total number of 1,643 institutions – 1,296 are non-sectarian private while 347 are sectarian HEIs. Close to 500,000 students complete their tertiary education and graduate from the HEIs annually.

1 Background of the BPO Industry (http://www.investphilippines.info/arangkada/seven-winners/business- process-outsourcing/background-bpo/) 2 IT-BPM Road Map 2012-2016

IBPAP and the different education sector agencies have partnered in implementing talent development initiatives aimed at addressing the talent gap. Currently, IBPAP is implementing the Service Management Specialization Track or Service Management Program (SMP) for Business Process Outsourcing. This is a 21-unit program that aims to prepare tertiary-level students for employment in the IT-BPM industry.

SMP includes five areas, namely:

(i) Business Communications, (ii) Service Culture, (iii) Principles of Systems Thinking, (iv) Fundamentals of Business Process Outsourcing 101 and 102, and (v) a full-time Internship program.

Commission on Higher Education (CHED) issued CHED Memorandum Order (CMO) No. 06, Series of 2012, which allows all higher education institutions (HEIs) with existing permit and recognition to offer a Bachelor of Science in Business Administration/Management (BSBA) with an SMP specialization track. Likewise, CMO No. 34, Series of 2012 also allows all HEIs with existing permit and recognition to offer the Bachelor of Science in Computer Science (BSCS), Bachelor of Science in Information Technology (BSIT) and Bachelor of Science in Information System/Management (BSIS/IM) to offer this specialization track. The other training programs under the talent development initiative of IBPAP are the Train-the-Teachers Training (T3), Basic English Skills Training (BEST), Advanced English Pre-employment Training (AdEPT), and Global Competitiveness Assessment Tool (GCAT), among others.3 While these traditional programs have resulted in concrete gains, critical gaps and constraints have yet to be adequately addressed and many new ones are emerging.

The implementation of the K-12 program by the Department of Education (DepED) and the upcoming ASEAN integration by 2015 are two of the more pressing challenges that are expected to impact on the labor demand and supply. The latter is being viewed to potentially boost economic development prospects and competitiveness at an international level if a reliable labor supply chain is ensured. From an IT-BPM perspective, this could generally mean greater regional competition that would further increase the demand for talent.

The IBPAP is working closely with AIM and UPOU to explore more comprehensive and innovative approaches to scale up the delivery of its training programs and improving alignment of HEIs with the needs of the IT-BPM industry. It will establish three knowledge hubs whose purpose is to provide greater access to knowledge resources for teaching and learning IT-BPM courses, enhance higher education curriculum and instruction and strengthen partnerships between the IT-BPM industry and academic institutions.

3 Initiatives should focus on four action areas (2112-2116 Philippine Information Technology and Business Process Management [IT-BPM] Road Map, Slide 31). 5

III. OBJECTIVES OF THE STUDY

For the Philippines’ education and IT-BPM sectors, developing and using knowledge hubs is a relatively new field of engagement and the actual solutions for scaling up delivery of IT- BPM designed courses using this mode are still unknown. This study shall define the overall framework for defining a criteria and the process for identifying knowledge hubs and selecting beneficiary HEIs/SUCs. In particular, it aims to determine the attributes and criteria for the establishment of virtual or physical knowledge hubs. The study will also look into the dynamics of the different attributes as it relates to the specific case of the Philippine IT-BPM industry and the education sector.

IV. REVIEW OF RELATED LITERATURE AND SELECTED BEST PRACTICE

TM A. IBPAP’s Next Wave Cities

IBPAP and the Department of Science and Technology – Information and Communications Technology Office (DOST-ICTO) have identified the top 10 locations for the next wave of growth for the IT-BPM industry for 2012. Known as the Next Wave CitiesTM (NWC), these locations include Baguio City, Davao City, Dumaguete City, Iloilo City, Lipa City, Metro Bulacan (Baliuag, Calumpit, Malolos City, Marilao, and Meycauayan City), Metro Cavite (Bacoor City, Dasmariñas City, and Imus City), Metro Laguna (Calamba City, Los Baños, and Sta. Rosa City), Metro Naga (Naga City and Pili), and Metro Rizal (Antipolo City, Cainta, and Taytay). These Next Wave CitiesTM were chosen as the best current or potential IT-BPM hosts based on an established criteria. Metro Manila, Metro Cebu, Metro Clark, and Bacolod City have been identified as Centers of Excellence (COE) for being premiere IT-BPM hosts and high-density locations.4 A Center of Excellence is a city that has proven its capability of attracting and hosting major locators.

The National Capital Region has only 24% of the country’s graduate population, but it has 77% of the IT-BPO jobs. This means that most of the employees in the IT-BPM industry come from the provinces. The Next Wave CitiesTM were identified to promote the IT-BPM industry in the countryside, which is a rich source of untapped talent. The criteria for the selection of the Next Wave Cities include:

(i) talent pool (considerable pool of generalist and specialist talent/ graduates; presence of higher education institutions that are Centers of Development (COD) and Centers of Excellence (COE); size of the labor force), (ii) cost (manpower cost; rental/land cost; cost of utilities), infrastructure (connectivity by land/air; telecom/electrical/water infrastructure; real estate availability), and (iii) business environment and risk management (national government/ local government unit support to the IT-BPM industry; special incentives for locators; regulatory framework; political/security risk; incidence of crime; natural risks like weather-related calamities; regulatory risk).

Aside from the Next Wave CitiesTM and Centers of Excellence, Emerging Locations were also identified in the 2012 report. The Emerging Locations were Batangas City, Cagayan de Oro City, Dagupan City, and Tagbilaran City. The 2012 report also included Special

4 DOST-ICTO, IBPAP announce Next Wave CitiesTM for 2012 (http://icto.dost.gov.ph/index.php/news- events/current-news/104-dost-icto-ibpap-announce-next-wave-cities-for-2012)

Awards. Metro Cavite got the Best in Talent award. Laoag City was given the Best in Infrastructure award. The Best in BERM award was given to Iloilo City. The Most Effective ICT Council and LGU were Legazpi City and its ICT Council.5

The Next Wave CitiesTM provide a blueprint not only for locating IT-BPM offices in the area but more importantly for systematically developing and sustaining inclusive growth in the locality. College graduates and skilled/semi-skilled local workers do not need to go to Metro Manila to get decent jobs, as the jobs will be brought closer to them through the investments generated in these Next Wave CitiesTM.6 As jobs are brought to the countryside, more residents will become economically productive and new business opportunities will also emerge and flourish. For the IT-BPM industry, this shift will create a greater need to train the local labor source for industry- specific skills requirements.

The Tholons’ Top 100 Outsourcing Destinations for 2014 named Metro Manila as the second most preferred destination for outsourcing services. Number one in the list is Bangalore, India. Other Philippine cities included in the list are Cebu (8th); Davao City (69th); Sta. Rosa in Laguna (82nd); Bacolod (93rd); Iloilo (95th); and Baguio (99th). Tholons’ is a leading full-service Strategic Advisory firm for Global Outsourcing and Research.7

B. Local Knowledge Hub Initiatives

An example of a knowledge hub is the Academic Initiative of IBM. It is a no-charge program providing educators with the training materials, curriculum guides, software, and hardware needed to teach in-demand business and technology skills. IBM offers a wide range of products and solutions to those teaching computer science, information technology, business, or marketing courses for the enhancement of the curriculum and to help develop the students’ competitive skills on the latest industry-standard software, systems, and tools. The members of the Academic Initiative can get full-version software and professionally developed courseware at no charge.8

The Department of Education launched a brick and mortar Library Hub in 2003 aimed to address the lack of public libraries across the country. Financed by both public and private sectors, hubs have been set in 32 school divisions for a total of 145 hubs. Initial success was noted in 15 out of the 32 school divisions with hubs who registered an impressive 50% Mean Percentage score or higher in AY 2005-2006 and AY 2006-2007. The other schools still registered increases but substantially lower than 50%. Many challenges have been registered that have hampered the full time operations of the hub including the lack of trainers, lack of full-time staff, lack of trained staff to operate the hubs, and inadequate budgetary support.

5 Next Wave CitiesTM 2012 Report 6 DOST’s Next Wave Cities mean more jobs, biz prospects for the region (http://dost.gov.ph/index.php?option=com_content&view=article&id=1281:dosts-next-wave-cities-mean-more- jobs-biz-prospects-in-the-regions&catid=1:latest&Itemid=150) 7 Metro Manila named 2nd top site for outsourcing (http://business.inquirer.net/162259/metro-manila-named-2nd- top-site-for-outsourcing#ixzz2rphDNlkS) 8 IBM Academic Initiative (http://www-03.ibm.com/ibm/university/academic/pub/page/academic_initiative) 7

C. Knowledge Hub Initiatives in the Asia Pacific Region.

The Asian Development Outlook 2003, a publication of the Asian Development Bank, identified knowledge as the most important resource in maintaining the Asia and Pacific region’s competitiveness, given the rapid rate of change created by globalization and technological innovation. In light of the above, ADB must assume a more proactive role as catalyst of applied knowledge in the region, which is critical for the future development of its developing member countries (DMCs). While new knowledge and technologies are being developed successfully in different countries and regions, a key challenge facing DMCs is to capture and translate this international knowledge into locally useful knowledge. There is a need to develop knowledge hubs in the region to make available and disseminate identified new basic and applied knowledge of relevance to DMCs. These knowledge hubs should aim to mainstream new concepts in innovation, science, technology, management development, and related fields for the region. They should also promote improved exchange of data, information, and knowledge; and increase the capabilities of institutions and organizations in the region.9 Since 2006, ADB is supporting Tsinghua University in Beijing in establishing a regional knowledge hub on climate change. The hub is envisioned to be a center of excellence in the region to support and strengthen research and disseminate new and emerging concepts and technologies. Other centers are planned in Thailand and India, strengthening and supplementing the already existing Beijing knowledge hub.10

In Thailand, the E-Society is one of the strategic initiatives aimed to access knowledge and opportunities to all groups of people with its final goal of sustainable development. It has a community telecenter composed of 20 centers in 2007 and this has grown to 300 centers by 2009. The telecenter is an interactive hub used for development purposes by government organizations (GOs), non-government organizations (NGOs), business and people’s organizations (POs). The hub serves as the knowledge platforms for all rural communities especially rural women who are left behind in aspects such as ICT literacy, Small to Medium scale Enterprise (SME) skills, leadership skills etc.11 This model attributes its success to the mutual collaboration among different kinds of stakeholders from policy makers to community and a bottoms-up knowledge sharing and learning approach.

D. Knowledge Hubs in Other Parts of the World

Multilateral and Bilateral development agencies including the World Bank (WB), ADB, World Health Organization (WHO), GIZ and other aid programs, the United Nations Development Program (UNDP), academic institutions and governments worldwide encourage and support the use of knowledge hubs for their development operations. These hubs perform different functions such as providing technical assistance, supporting technical resource networks, as a dedicated way of sharing development experience and models in peer-to-peer learning, to engage with national and international partners and stakeholders, to provide tools for making knowledge happen and to facilitate access to funding.12 Hubs are established at the local, national, regional and even globally levels for

9 Asian Development Bank (2005). Technical Assistance on the Establishment of Regional Knowledge Hubs. 10 Knowledge hubs and knowledge clusters: designing a knowledge architecture for development. Hans-Dieter Evers, Center for Development Research, University of Bonn. 2008 11 Telecentre: Community Knowledge Hubs and Networks, Dr. Kamolrat Intarat, Sukhothai Thammathirat Open University, School of Communication Arts, Pakket District, Thailand. 12 World Bank support for Knowledge Hubs Institutions, Sanjay Pradham Keynote Speech-Bali Conference on Knowledge Hubs, 11 July 2012.

a variety of objectives such as attracting foreign investments, providing access to high quality education, contributing to research and innovation, creating a knowledge-based economy, providing and disseminating information in health and other related areas among others. Knowledge hubs operate using different business models, have wide geographic coverage and cater to a vast number of audiences and stakeholders.

Education Hubs are one of the newest development in the international higher education landscape. The objectives for setting up Educational hubs vary from one hub to another and may include:

(i) to attract foreign investment, (ii) retain local students, (iii) provide access to high-quality education and training for both domestic and international students, and (iv) create a knowledge-based economy.

An educational hub can include different combinations of domestic or international institutions, branch campuses and foreign partnerships.

In-depth studies in six country level education hubs – United Arab Emirates, Qatar, Malaysia, Hong Kong, Singapore and Botswana shows that “one size does not fit all.” Different factors influence the criteria for developing and setting up educational hubs including economic competitiveness, the demand for trained work force, a desire to move towards a knowledge or service-based economy, modernization of the tertiary education sector, cross-border education among others. These different motivations have influenced the development of three different types of education hubs, namely the student hub, the talent hub and the knowledge/innovation hub.13

V. APPROACH AND METHODOLOGY

The study recognizes the importance of engaging stakeholders in the academe, government (national and local) and the IT-BPM industry associations and firms in defining the attributes and criteria for knowledge hubs. A consultative process that included a Focus Group Discussion (FGD) and selected interviews and individual stakeholder consultation meetings were used to solicit and validate inputs in developing the criteria, and ensure buy- in and support during the establishment of the hubs.

More importantly, the methodology recognizes the importance of consulting with the hub’s potential “clients” (i.e. the potential students, teachers, local communities and civil society), to better understand their needs and seek their insights so that the structure could be made more responsive and purposeful in it use. Selected stakeholder interviews in both the public, private and academe sectors were also undertaken.

To complement the FGD and consultations, several data sources also gave substance to this paper. A review of literature was conducted. Secondary data from industry, academe, multilateral and bilateral development partner publications, websites, working papers and local IT-BPM published materials on knowledge management and knowledge hubs were reviewed. Appropriate analysis of both qualitative and quantitative information was done

13 Student, Talent, Knowledge-Innovation Models, Jane Knight (Ed), VIII. 2014. 9

with the help of tools and models such as the Analytical Hierarchy Process, Hub and Spokes Model to name a few.

VI. CONCEPTUAL FRAMEWORK

A. What is a Knowledge Hub?

A knowledge hub is defined as an institution, entity, network or group, typically with high connectedness and high internal and external networking and knowledge sharing capabilities that operates in a knowledge domain or activity and whose excellence is recognized by those who engage with or are supported by it.14 They are local innovation systems that are nodes in networks of knowledge production and knowledge sharing.

As meeting points of communities of knowledge and interest, knowledge hubs fulfill three major functions: to generate knowledge, to transfer knowledge to sites of application; and to transmit knowledge to other people through education and training.15 Knowledge hubs are a logical way to scale up learning and sharing of related information and experience by making information available to those who need it at that the time that they need it.

For this study, it is assumed that a knowledge hub may be a virtual or physical knowledge hub (PKH) which can be an HEI or any entity that is connected to the virtual knowledge hub (VKH), located in an established geographical location (Metro area or Next Wave CitiesTM ) which will collaborate with other institutions (HEIs, Technical and Vocational Institutions (TVI), and K-12) and individuals (Out-of-School Youths (OSY), Overseas Filipino Workers (OFW), and Persons with Disabilities(PWD)) within its or surrounding regions for a blended (physical and online) implementation of the SMP, BEST, AdEPT and other programs of IBPAP to achieve the 2016 employment targets for the IT-BPM industry. One simple operating model that may be considered is the hub and spokes model. The collaboration between the hub (servicing institution or organization) and the spokes (beneficiary institutions or individuals) includes ICT access (phone, personal computer, internet), information, training, and knowledge. Initially, it is envisioned that there will be three (3) PKHs to be established by the project, where one each may be established for Luzon, Visayas, and Mindanao.

A hub and spokes model has one institution serving as the primary driver and hosts a secretariat or coordination unit. There is less connection between the spokes; and the hub is administered typically through a series of agreements or contracts between the host institution and each participant, with little engagement among the spokes.

14 ADB Report: Technical Assistance to the Philippines for Strengthening Knowledge-Based Economic and Social Development 15 Knowledge hubs and knowledge clusters: Designing a knowledge architecture for development, Hans-Dieter Evers, Center for Development research (ZEF, University of Bonn, 2008.

Figure 1 illustrates how the spokes relate to each other and to the hub.

Figure 1: Hub and Spokes Model

Participants

Hub Primary Driver Host Secretariat Contracts and Agreements

The transformation process from telecenters to knowledge hubs is indicated in the Figure 2 below. In this process, the Information and Communications Technology (ICT) access points with access to phones, computers and Internet are value added with knowledge, information, training and services. Many telecenters currently functioning in developing countries have successfully incorporated knowledge and information into their area of operations. A study on the assessment of the status of the implementation and use of ICT access points in Asia and the Pacific identified potential telecenters to be transformed into knowledge hubs. These telecenters have established necessary infrastructure and processes to facilitate creation and dissemination of development related information and promote active community participation. These telecenters could generate and disseminate information while benefiting from information generated by other telecenters in the region. Thus, they may qualify to be knowledge hubs in a potential knowledge network of telecenters.

Figure 2: Transformation Process

ICT ICT Access Access Centers Centers

Knowledge Hubs

Transformation Process

Knowledge

Training

Information

ICT Access ICT Access (Phone, PC, Internet) (Phone, PC, Internet)

B. Key Characteristics of a Hub

Following the discussion on the functions of a knowledge hub, a set of characteristics were established which were considered necessary and sufficient to effectively implement its objectives for supporting talent in the IT-BPM industry. These characteristics will compose the criteria in rating and prioritizing the selection of the knowledge hubs.

Figure 3 identifies the five key characteristics of an effective knowledge hub.

Figure 3: Knowledge Hub Key Characteristics

Knowledge Hub

Content Delivery Method Audience

Geographical Champion/ Location Primary Owner

Content is information and experiences that may provide value for an end-user/audience in specific contexts. Delivery method is the medium that facilitates the transfer of content from the primary owner to the end-user/audience. This transfer may be done via the internet, television, and audio CDs, as well as live events such as conferences and stage performances. The word is used to identify and quantify various formats and genres of information as manageable value-adding components of useful media to the target audience.

An audience is a group of people who participate in a program or encounter a work of art, literature (in which they are called "readers"), theatre, music (in which they are called "listeners"), video games (in which they are called "players"), or academics in any medium. Audience members participate in different ways in different kinds of art; some events invite overt audience participation and others allowing only modest clapping and criticism and reception.

The terms location and place in geography are used to identify a point or an area on the Earth's surface or elsewhere. The term location generally implies a higher degree of certainty than place, which often indicates an entity with an ambiguous boundary, relying more on human/social attributes of place identity and sense of place than on geometry.

The champion/primary owner is the organization or entity that will be ultimately responsible for the day-to-day activities of the knowledge hub, including but not limited to transactions with the audience and other stakeholders.

The characteristics of a knowledge hub are listed in Table 1below, together with the corresponding facets, as determined during the FGD.

Table 1: Characteristics and Facets of Knowledge Hubs Characteristic Facet Content Alignment to Cost of Delivery Demand from Requirement by Urgency of the the Overall the Audience the Industry Industry Need Objective Delivery Method Availability Ease Effectiveness Maintenance Quality Audience Employability Resources Support Sustainability Volume Geographical Associations Center of IBPAP Partnerships Schools Location Excellence/ Members Next-Wave City (COE/NWC) Rank Champion/ Physical Current Local and Commitment of Availability of Primary Owner Accessibility Infrastructure International Management Capable Linkages and Personnel Administration

The definition of each facet is discussed in the next section. The weight of each facet will be determined by the stakeholders, i.e. the members of the associations under IBPAP, through the Analytic Hierarchy Process. 13

VII. DEFINING THE CHARACTERISTICS AND MEASURE OF POTENTIAL KNOWLEDGE HUBS USING THE ANALYTICAL HEIRARCHY PROCESS

Analytic Hierarchy Process (AHP) is a structured technique for organizing and analyzing complex decisions, based on mathematics and psychology. It was developed by Thomas L. Saaty in the 1970s and has been extensively studied and refined since then. It has particular application in group decision making and is used around the world in a wide variety of decision situations, in fields such as government, business, industry, healthcare, and education. Rather than prescribing a correct decision, the AHP helps decision makers find one that best suits their goal and their understanding of the problem. It provides a comprehensive and rational framework for structuring a decision problem, for representing and quantifying its elements, for relating those elements to overall goals, and for evaluating alternative solutions.

To be able to establish the weight of each identified facet or alternative, a modified rating is used. Table 2 describes the ratings from the most preferred (9) to the least preferred (0).

Table 2: Standard Rates Rate Definition 9 Most preferred 8 7 6 5 4 3 2 1 0 Least preferred

Table 3 describes the special ratings that may be used by the rater.

Table 3: Special Rates Example Meaning 2.5 A rate between 2 and 3. 4 and another 4 Two items with equal rate. 9 followed by 7 Rate 8 may be skipped. Blank is considered rate 0.

The following exercise in modified analytic hierarchy process is a result of a simulated exercise. The resulting information is used only for demonstration purposes and will be validated by the ratings of the identified stakeholders once the criteria is finalized and agreed to.

A. Process and Procedure

IBPAP, as the implementing institution/ project leader, will implement the steps in the Analytic Hierarchy Process, as shown below:

(i) IBPAP requests stakeholders (one or more representative from each of its five member associations of IBPAP) to answer the questionnaire. (ii) IBPAP asks the stakeholders to rate the facet for the first characteristic from 0 to 9, 0 being the least preferred and 9 being the most preferred. The special ratings discussed earlier may also be used. (iii) IBPAP then asks the stakeholders to rate the alternatives per facet, from 0 to 9, 0 being the least preferred and 9 being the most preferred. The special ratings discussed earlier may also be used. (iv) IBPAP encodes the ratings per stakeholder using the Excel Worksheet (Table 6 Rating). The Excel Worksheet will automatically compute for the total (Table 7 Total) and product (Table 8 Product). The last column in Table 8 Product represents the ratings of a stakeholder for the alternatives. The Excel Worksheet will automatically summarize the stakeholder ratings (Table 9 Stakeholder Ratings). The ranking of alternatives is shown on the last column of Table 9 Stakeholder Ratings. (v) IBPAP repeats Steps 2 to 4 for the rest of the characteristics. (vi) This process is expected to aid IBPAP in objectively and systematically determining the priorities for selecting a knowledge hub in terms of content, delivery method, audience, geographical location, and champion/primary owner.

To select the institutions that will serve as knowledge hubs, IBPAP will pay particular attention to the rankings for the Geographical Location (Characteristic 4) and Champion/Primary Owner (Characteristic 5). To illustrate, if the exercise yields Metro Clark as the Number 1 priority in terms of Geographical Location and HEI/SUC as the Champion/Primary Owner, then IBPAP needs to generate the list of all HEIs and SUCs in Metro Clark. Using the same characteristic and rating per measure for the Champion/Primary Owner, the stakeholders will rate the alternatives (HEIs and SUCs), following the procedure below:

(i) IBPAP asks the stakeholders to rate the HEIs and SUCs, from 0 to 9, 0 being the least preferred and 9 being the most preferred. The special ratings discussed earlier may also be used. (ii) IBPAP encodes the ratings per stakeholder using the Excel Worksheet (Table 24 Rating). The Excel Worksheet will automatically compute for the total (Table 25 Total) and product (Table 26 Product). The last column in Table 26 Product represents the ratings of a stakeholder for the alternatives. The Excel Worksheet will automatically summarize the stakeholder ratings (Table 27 Stakeholder Ratings). The ranking of alternatives is shown on the last column of Table 27 Stakeholder Ratings.

B. Characteristic 1: Content

Content is determined by the following facets as a result of the FGD earlier conducted as well as information gathered in the course of the study:

(i) Alignment to the Overall Objective (ii) Cost of Delivery (iii) Demand from the Audience (iv) Requirement by the Industry (v) Urgency of the Industry Need

Table 4 below shows the definition of each facet.

Table 4: Definition of Criteria (Content) Facets Meaning Alignment The content is aligned to the over-all objectives of the knowledge hub. Cost The cost to deliver the content to its audience is minimal or nil. Demand There is high demand from the audience for the delivery of the content. Requirement There is high requirement by the industry for graduates of the content. Urgency The need by the industry for graduates of the content is urgent.

Alternatives were also identified and shortlisted. The list is not exhaustive and stakeholders may expand or propose to change some alternatives as justified. The initial list includes:

(i) Assessment Tools (ii) Certification Courses (iii) Corporate Training (iv) English Courses (v) Foreign Languages (vi) Formal Education (vii) Skills Training

To address the competency gap in the country’s IT-BPM industry, IBPAP partnered with the academe to implement its two workforce English programs: Basic English Skills Training (BEST) and Advanced English Pre-Employment Training (AdEPT). Recently, 20 faculty participants and six teachers graduated from the BEST and AdEPT Teacher Training (T3) courses, respectively, in ceremonies held at the Philippine Normal University (PNU). The two English-proficiency programs have already been rolled out in five state universities and colleges and the recent T3 training held in PNU Manila is aimed at further spreading BEST and AdEPT instruction through our country’s future teachers.16

16 Industry talent development programs to assist teachers, increase competency of students in IT-BPM http://www.teamasia.com/newsroom/read-client-news.aspx?id=503:industry-talent-devt-programs-to-assist- teachers-increase-competency-of-students-in-it-bpm

Table 5 below shows the definition of alternatives.

Table 5: Definition of Alternatives (Content) Alternatives Meaning Assessment Assessment tools (GCAT, etc.) can be accessed. Certification Certification courses for faculty and trainers (T3, etc.) are delivered. Corporate There are short courses for corporate employee/management training. English English courses (BEST, AdEPT, etc.) are delivered. Foreign Foreign language courses (Spanish, French, etc.) are delivered. Formal There is content that leads to formal diploma education (SMP, etc.). Skills There are short courses for technical skills training.

Table 6 below shows the simulated ratings of the facets and each alternative per facet.

Table 6: Rating (Content) Facets Alignment Cost Demand Requirement Urgency Rate 7 1 4.5 9 5 Alternatives Alignment Cost Demand Requirement Urgency Assessment 2 8 5 4.5 6 Certification 5 7 9 4 5 Corporate 4 9 7 3 4 English 7 4 4 8 7.5 Foreign 6 6 3 7 6 Formal 6 5 6 6 7 Skills 9 3.5 8 9 8

Table 7 below shows the total ratings.

Table 7: Sum of Ratings (Content) Facets Total Alignment Cost Demand Requirement Urgency Rate 7 1 4.5 9 5 26.50 Alternatives Alignment Cost Demand Requirement Urgency Assessment 2 8 5 4.5 6 Certification 5 7 9 4 5 Corporate 4 9 7 3 4 English 7 4 4 8 7.5 # Foreign 6 6 3 7 6 Formal 6 5 6 6 7 Skills 9 3.5 8 9 8 Total 39.00 42.50 42.00 41.50 43.50

Table 8 below shows the dominant alternative based on the ratings.

Table 8: Product of Ratings (Content) Facets Total Alignment Cost Demand Requirement Urgency Rate 0.26 0.04 0.17 0.34 0.19 1.00 Alternatives Alignment Cost Demand Requirement Urgency Product Assessment 0.05 0.19 0.12 0.11 0.14 0.10 Certification 0.13 0.16 0.21 0.10 0.11 0.13 Corporate 0.10 0.21 0.17 0.07 0.09 0.11 English 0.18 0.09 0.10 0.19 0.17 0.17 Foreign 0.15 0.14 0.07 0.17 0.14 0.14 Formal 0.15 0.12 0.14 0.14 0.16 0.15 Skills 0.23 0.08 0.19 0.22 0.18 0.20 Total 1.00 1.00 1.00 1.00 1.00 1.00

The result will have to be validated by asking various stakeholders from the IT-BPM industry to do pair-wise comparisons across member-organizations. Respondents from the following sectors may be asked to participate:

(i) Animation Council of the Philippines (ACPI) (ii) Contact Center Association of the Philippines (CCAP) (iii) Game Developers Association of the Philippines (GDAP) (iv) Healthcare Information Management Outsourcing Association of the Philippines (HIMOAP) (v) Philippine Software Industry Association (PSIA)

Table 9 below shows the dominant alternative based on the ratings by the stakeholders.

Table 9: Stakeholder Ratings (Content) Rating by Representatives Average Priority Alternatives ACPI CCAP GDAP HIMOAP PSIA Assessment 0.10 0.21 0.12 0.13 0.08 0.13 7 Certification 0.13 0.15 0.17 0.09 0.12 0.13 5 Corporate 0.11 0.14 0.10 0.14 0.17 0.13 6 English 0.17 0.12 0.14 0.16 0.19 0.16 2 Foreign 0.14 0.12 0.15 0.17 0.13 0.14 4 Formal 0.15 0.14 0.16 0.17 0.12 0.15 3 Skills 0.20 0.12 0.16 0.14 0.19 0.16 1 Total 1.00 1.00 1.00 1.00 1.00 1.00 #

See Annex A for the spreadsheet file that details the flow of the computations.

C. Characteristic 2: Delivery Method

Delivery method is determined by the following facets as a result of the FGD earlier conducted as well as information gathered in the course of the study:

(i) Availability (ii) Ease (iii) Effectiveness (iv) Maintenance (v) Quality

Table 10 below shows the definition of each facet.

Table 10: Definition of Facets (Delivery Method) Facets Meaning Availability The delivery method is available everywhere and anytime. Ease The delivery method is easy for the audience to use. Effectiveness The method is effective in the delivery of the content. Maintenance The cost for maintenance of the delivery method is minimal. Quality Quality of graduates who used the delivery method is high.

Alternatives were also identified and shortlisted. The list is not exhaustive and stakeholders may expand or propose to change some alternatives as justified. The initial list includes:

(i) Classroom (ii) e-Mail (iii) Mail (iv) Mobile (v) Online (vi) Social Media (vii) VOIP (Voice Over Internet Protocol)

Table 11 below shows the definition of alternatives. Table 11: Definition of Alternatives (Delivery Method) Alternatives Meaning Classroom The delivery method is classroom or face-to-face. e-Mail The content is delivered through electronic mail. Mail The content is delivered through traditional mail. Mobile The content is delivered through mobile devices. Online The content is delivered online. Social The content is delivered through social media. VOIP The content is delivered through voice over internet protocol.

Table 12 below shows the simulated ratings of the facets and each alternative per facet.

Table 12: Rating (Delivery Method) Facets Availability Ease Effectiveness Maintenance Quality Rate 6 5 9 2.5 8 Alternatives Availability Ease Effectiveness Maintenance Quality Classroom 2 7 3 9 6.5 e-Mail 7 8 2.5 8 1 Mail 8 9 5 7.5 6.5 Mobile 5 3.5 6 6 7 Online 4.5 4 8 5 8 Social 9 6 7 5 6 VOIP 6 5 9 4 9

Table 13 shows the total ratings.

Table 13: Sum of Ratings (Delivery Method) Facets Total Availability Ease Effectiveness Maintenance Quality Rate 6 5 9 2.5 8 30.50 Alternatives Availability Ease Effectiveness Maintenance Quality Classroom 2 7 3 9 6.5 e-Mail 7 8 2.5 8 1 Mail 8 9 5 7.5 6.5 Mobile 5 3.5 6 6 7 # Online 4.5 4 8 5 8 Social 9 6 7 5 6 VOIP 6 5 9 4 9 Total 41.50 42.50 40.50 44.50 44.00

Table 14 below shows the dominant alternative based on the ratings.

Table 14: Product of Ratings (Delivery Method) Facets Total Availability Ease Effectiveness Maintenance Quality Rate 0.20 0.16 0.30 0.08 0.26 1.00 Alternatives Availability Ease Effectiveness Maintenance Quality Product Classroom 0.05 0.16 0.07 0.20 0.15 0.11 e-Mail 0.17 0.19 0.06 0.18 0.02 0.10 Mail 0.19 0.21 0.12 0.17 0.15 0.16 Mobile 0.12 0.08 0.15 0.13 0.16 0.13 Online 0.11 0.09 0.20 0.11 0.18 0.15 Social 0.22 0.14 0.17 0.11 0.14 0.16 VOIP 0.14 0.12 0.22 0.09 0.20 0.17 Total 1.00 1.00 1.00 1.00 1.00 1.00

Table 15 below shows the dominant alternative after the ratings by the stakeholders.

Table 15: Stakeholder Ratings (Delivery Method) Rating by Representatives Average Priority Alternatives ACPI CCAP GDAP HIMOAP PSIA Classroom 0.11 0.15 0.13 0.13 0.09 0.12 7 e-Mail 0.10 0.15 0.17 0.09 0.12 0.13 6 Mail 0.16 0.14 0.15 0.14 0.18 0.15 2 Mobile 0.13 0.19 0.14 0.17 0.19 0.16 1 Online 0.15 0.12 0.15 0.17 0.13 0.14 4 Social 0.16 0.14 0.10 0.17 0.12 0.14 5 VOIP 0.17 0.11 0.16 0.13 0.17 0.15 3 Total 1.00 1.00 1.00 1.00 1.00 1.00 #

See Annex A for the spreadsheet file that details the flow of the computations.

D. Characteristic 3: Audience

Audience is determined by the following facets as a result of the FGD earlier conducted as well as information gathered in the course of the study:

(i) Employability (ii) Resources (iii) Support (iv) Sustainability (v) Volume

Table 16 below shows the definition of each facet.

Table 16: Definition of Facet (Audience) Facets Meaning Employability The audience are highly employable after the program. Resources The audience have the resources to complete the program. Support The audience is supported by private or public institutions. Sustainability The partnership with the audience is sustainable in the long-run. Volume There is high volume of participants from this audience-sector.

Alternatives were also identified and shortlisted. The list is not exhaustive and stakeholders may expand or propose to change some alternatives as justified. The initial list includes:

(i) HEI (ii) K-12 (iii) OFW (iv) OSY (v) PWD (vi) Career Shifters (vii) TVI

Technical vocational education, especially for the out-of-school youth, took center stage at the celebration of the International Year of the Youth, which gathered government agencies, international institutions and nongovernment organizations to promote youth welfare and empowerment. Technical Education and Skills Development Authority (TESDA) Director General Joel Villanueva joined other government agency heads in gracing various initiatives held at the SMX Convention Center to celebrate the event, which coincided with the signing of a partnership agreement with the International Labor Organization (ILO). The event also featured learning sessions that showcased TESDA’s Apprenticeship Program in partnership with Panasonic. Villanueva, together with representatives of the Department of Labor and Employment (DOLE) and the ILO, led the ceremonial signing of a Partner’s Agreement in Entrepreneurship and TechVoc Training. The agreement targets 2,000 youths from poor communities in four provinces, namely, Masbate, Antique, Agusan del Sur, and Maguindanao.17

17An August 12, 2011 press release from the Technical Education and Skills Development Authority (http://www.gov.ph/2011/08/12/tesda-promotes-entrep-techvoc-training-among-osys/)

DOLE reports that since the launching of the P2-billion National Reintegration Program Fund for OFWs last year, the DOLE, Overseas Workers Welfare Administration (OWWA) and the National Reintegration Center for OFWs (NRCO)—continue to receive inquiries not only on what the program is all about, but also on how to avail of a reintegration loan. The P2-billion reintegration program is a special loan program of the OWWA in partnership with the Development Bank of the Philippines (DBP) and the Landbank of the Philippines to support enterprise development among OFWs and their families. This program is open to all active members of the OWWA and to those who have completed the Entrepreneurial Development Training conducted by the NRCO and the OWWA-Regional Welfare Officers in cooperation with the Department of Trade and Industry (DTI), Philippine Trade Training Center, and Bureau of Micro, Small and Medium Enterprise Development.18

The Department of Social Welfare and Development (DSWD), through its rehabilitation and vocational programs, has also provided continuing capability-building for individuals as well as self-help groups of PWDs. Rehabilitation services for the sector have three major components: social preparation, functional literacy and job placement. The main objective of this program is to develop self-reliance and socio economic independence. Together with the Tulong Alalay (TULAY) or Support and Maintenance Program of the DOLE, employment and livelihood trainings are provided. Grants for initial business capitals given or loaned to deserving trainees are included in the package. The expenses on training on chosen skills and management are provided as grants while capital outlays and operational supports are loaned with soft terms and conditions. For the deaf sector, the encoding jobs of NOVA Foundation receive financial supports in its training components from the Philippine Amusement and Gaming Corporation (PAGCOR).19

Table 2.16 below shows the definition of alternatives.

Table 17: Definition of Alternatives (Audience) Alternatives Meaning HEI The target audience are the higher education institutions. K-12 The target audience are the K-12 (senior high school) institutions. OFW The target audience are the overseas Filipino workers. OSY The target audience are the out-of-school youth. PWD The target audience are the persons with disability. Shifters The target audience are the career shifters. TVI The target audience are the technical and vocational institutions.

18 National Reintegration Program for OFWs (http://theofwcenter.blogspot.com/2012/03/national-reintegration- program-for-ofws.html) 19 Rehabilitation, Sheltered Workshop and Employment (http://drpi.research.yorku.ca/AsiaPacific/resources/PhilippinesLPPRep/x) 23

Table 18 shows the simulated ratings of the criteria and each alternative per criterion.

Table 18: Rating (Audience) Facets Employability Resources Support Sustainability Volume Rate 3 7.5 8 5 7 Alternatives Employability Resources Support Sustainability Volume HEI 2 7 4 6 6.5 K-12 9 5 2.5 8 3 OFW 8 9 5 8 6.5 OSY 5 3.5 7 6 2 PWD 4.5 4 8 2 8 Shifters 1 3 6.5 5 8.5 TVI 6 5 9 4 9

Table 19 shows the dominant alternative based on the summary of the ratings.

Table 19: Sum of Ratings (Audience) Facets Total Employability Resources Support Sustainability Volume Rate 3 7.5 8 5 7 30.50 Alternatives Employability Resources Support Sustainability Volume HEI 2 7 4 6 6.5 K-12 9 5 2.5 8 3 OFW 8 9 5 8 6.5 OSY 5 3.5 7 6 2 # PWD 4.5 4 8 2 8 Shifters 1 3 6.5 5 8.5 TVI 6 5 9 4 9 Total 35.50 36.50 42.00 39.00 43.50

Table 20 shows the product of the ratings.

Table 20: Product of Ratings (Audience) Facets Total Employability Resources Support Sustainability Volume Rate 0.10 0.25 0.26 0.16 0.23 1.00 Alternatives Employability Resources Support Sustainability Volume Product HEI 0.06 0.19 0.10 0.15 0.15 0.14 K-12 0.25 0.14 0.06 0.21 0.07 0.12 OFW 0.23 0.25 0.12 0.21 0.15 0.18 OSY 0.14 0.10 0.17 0.15 0.05 0.12 PWD 0.13 0.11 0.19 0.05 0.18 0.14 Shifters 0.03 0.08 0.15 0.13 0.20 0.13 TVI 0.17 0.14 0.21 0.10 0.21 0.17 Total 1.00 1.00 1.00 1.00 1.00 1.00

The result will be validated by asking various stakeholders from the IT-BPM industry to do pair-wise comparisons across member-organizations. Respondents from the following sectors may be asked to participate:

Table 21 shows the dominant alternative based on the ratings by the stakeholders.

Table 21: Stakeholder Ratings (Audience) Rating by Representatives Average Priority Alternatives ACPI CCAP GDAP HIMOAP PSIA HEI 0.14 0.18 0.12 0.13 0.12 0.14 6 K-12 0.12 0.15 0.17 0.17 0.12 0.15 3 OFW 0.18 0.14 0.15 0.14 0.14 0.15 1 OSY 0.12 0.13 0.14 0.16 0.19 0.15 2 PWD 0.14 0.12 0.16 0.10 0.13 0.13 7 Shifters 0.13 0.14 0.16 0.16 0.12 0.14 5 TVI 0.17 0.14 0.10 0.14 0.18 0.15 4 Total 1.00 1.00 1.00 1.00 1.00 1.00 #

See Annex A for the spreadsheet file that details the flow of the computations.

E. Characteristic 4: Geographical Location

Geographical Location is determined by the following facets as a result of the FGD earlier conducted as well as information gathered in the course of the study:

(i) Associations (ii) Center of Excellence/Next-Wave City (COE/NWC) Rank (iii) IBPAP Members (iv) Partnerships (v) Schools

Table 22 shows the definition of each facet.

Table 22: Definition of Facet (Geographical Location) Facets Meaning Associations The location has professional and civic associations. COE/NWC The location is ranked high as Center of Excellence or Next Wave CityTM (COE/NWC) IBPAP The location has active IBPAP members. Partnerships The location has existing private-public partnerships. Schools The location has existing schools (HEI/SUC, TVI, K-12).

Alternatives were also identified and shortlisted. The list is not exhaustive and stakeholders may expand or propose to change some alternatives as justified. The initial list includes:

(i) Bacolod City (ii) Davao City (iii) Metro Cavite (iv) Metro Cebu (v) Metro Clark (vi) Metro Laguna (vii) Metro Manila

Table 23 shows the definition of alternatives.

Table 23: Definition of Alternatives (Geographical Location) Alternatives Meaning Bacolod City The geographical location is to be established in Bacolod City. Davao City The geographical location is to be established in Davao City. Metro Cavite The geographical location is to be established in Metro Cavite. Metro Cebu The geographical location is to be established in Metro Cebu. Metro Clark The geographical location is to be established in Metro Clark Metro Laguna The geographical location is to be established in Metro Laguna. Metro Manila The geographical location is to be established in Metro Manila.

Table 24 shows the simulated ratings of the facet and each alternative per facet.

Table 24: Rating (Geographical Location) Facets Associations COE/NWC IBPAP Partnerships Schools Rate 3.5 7 6 8 4 Alternatives Associations COE/NWC IBPAP Partnerships Schools Bacolod City 1 7 3 8 4 Davao City 7 5.5 6 8 1 Metro Cavite 8 9 5 7.5 6.5 Metro Cebu 9 2 9 6 8 Metro Clark 4.5 4 8 2 6.5 Metro Laguna 3 7.5 7 5 6 Metro Manila 6 5 4 9 7

Table 25 below shows the total ratings.

Table 25: Sum of Ratings (Geographical Location) Facets Total Associations COE/NWC IBPAP Partnerships Schools Rate 3.5 7 6 8 4 28.50 Alternatives Associations COE/NWC IBPAP Partnerships Schools Bacolod City 1 7 3 8 4 Davao City 7 5.5 6 8 1 Metro Cavite 8 9 5 7.5 6.5 Metro Cebu 9 2 9 6 8 # Metro Clark 4.5 4 8 2 6.5 Metro Laguna 3 7.5 7 5 6 Metro Manila 6 5 4 9 7 Total 38.50 40.00 42.00 45.50 39.00

Table 26 below shows the dominant alternative based on the ratings.

Table 26: Product of Ratings (Geographical Location) Facets Total Associations COE/NWC IBPAP Partnerships Schools Rate 0.12 0.25 0.21 0.28 0.14 1.00 Alternatives Associations COE/NWC IBPAP Partnerships Schools Product Bacolod City 0.03 0.18 0.07 0.18 0.10 0.12 Davao City 0.18 0.14 0.14 0.18 0.03 0.14 Metro Cavite 0.21 0.23 0.12 0.16 0.17 0.18 Metro Cebu 0.23 0.05 0.21 0.13 0.21 0.15 Metro Clark 0.12 0.10 0.19 0.04 0.17 0.11 Metro Laguna 0.08 0.19 0.17 0.11 0.15 0.14 Metro Manila 0.16 0.13 0.10 0.20 0.18 0.15 Total 1.00 1.00 1.00 1.00 1.00 1.00

Table 27 below shows the dominant alternative based on the ratings by the stakeholders.

Table 27: Stakeholder Ratings (Geographical Location) Rating by Representatives Average Priority Alternatives ACPI CCAP GDAP HIMOAP PSIA Bacolod City 0.12 0.19 0.12 0.13 0.15 0.14 4 Davao City 0.14 0.15 0.17 0.13 0.12 0.14 5 Metro Cavite 0.18 0.14 0.13 0.13 0.17 0.15 2 Metro Cebu 0.15 0.11 0.12 0.16 0.19 0.15 3 Metro Clark 0.11 0.12 0.15 0.14 0.13 0.13 7 Metro Laguna 0.14 0.14 0.19 0.17 0.11 0.15 1 Metro Manila 0.15 0.15 0.12 0.14 0.13 0.14 6 Total 1.00 1.00 1.00 1.00 1.00 1.00 #

See Annex A for the spreadsheet that details the flow of the computations.

F. Characteristic 5: Champion/Primary Owner Champion/Primary Owner is determined by the following facets as a result of the FGD earlier conducted as well as information gathered in the course of the study:

(i) Physical Accessibility (ii) Current Infrastructure (iii) Local and International Linkages (iv) Commitment of Management and Administration (v) Availability of Capable Personnel

Table 28 below shows the definition of each facet.

Table 28: Definition of Facet (Champion/Primary Owner) Facets Meaning Accessibility The primary owner is physically accessible. Infrastructure The primary owner has existing infrastructure. Linkages The primary owner has existing local and international linkages. Management The primary owner has a committed management or administration. Personnel The primary owner has capable and willing personnel.

Alternatives were also identified and shortlisted. The list is not exhaustive and stakeholders may expand or propose to change some alternatives as justified. The initial list includes:

(i) AIM (ii) HEI/SUC (iii) BPAP/Industry Association (iv) ITBPM Company (v) LGU (vi) TVI (vii) UP Open University

Table 2.28 below shows the definition of alternatives.

Table 29: Definition of Alternatives (Champion/Primary Owner) Alternatives Meaning AIM The primary owner is Asian Institute of Management. HEI/SUC The primary owner is an HEI or SUC. IBPAP/IA The primary owner is IBPAP or an industry association. ITBPM The primary owner is an IT-BPM company. LGU The primary owner is a local government unit. TVI The primary owner is a technical and vocational institution. UPOU The primary owner is UP Open University.

Table 30 below shows the simulated ratings of the facets and each alternative per facet.

Table 30: Rating (Champion/Primary Owner) Facets Accessibility Infrastructure Linkages Management Personnel Rate 5 9 3.5 7 7.5 Alternatives Accessibility Infrastructure Linkages Management Personnel AIM 2 8 3 2 7 HEI/SUC 5 4.5 5 8 1 IBPAP/IA 8 9 6.5 7.5 6.5 ITBPM 5 3.5 6 6 4.5 LGU 9 4 8 1 8 TVI 3 7 4 5 3 UPOU 6 5 9 4 9

Table 31 below shows the total ratings.

Table 31: Sum of Ratings (Champion/Primary Owner) Facets Total Accessibility Infrastructure Linkages Management Personnel Rate 5 9 3.5 7 7.5 32.00 Alternatives Accessibility Infrastructure Linkages Management Personnel AIM 2 8 3 2 7 HEI/SUC 5 4.5 5 8 1 IBPAP/IA 8 9 6.5 7.5 6.5 ITBPM 5 3.5 6 6 4.5 # LGU 9 4 8 1 8 TVI 3 7 4 5 3 UPOU 6 5 9 4 9 Total 38.00 41.00 41.50 33.50 39.00

Table 32 below shows the dominant alternative based on the ratings.

Table 32: Product of Ratings (Champion/Primary Owner) Facets Total Accessibility Infrastructure Linkages Management Personnel Rate 0.16 0.28 0.11 0.22 0.23 1.00 Alternatives Accessibility Infrastructure Linkages Management Personnel Product AIM 0.05 0.20 0.07 0.06 0.18 0.13 HEI/SUC 0.13 0.11 0.12 0.24 0.03 0.12 IBPAP/IA 0.21 0.22 0.16 0.22 0.17 0.20 ITBPM 0.13 0.09 0.14 0.18 0.12 0.13 LGU 0.24 0.10 0.19 0.03 0.21 0.14 TVI 0.08 0.17 0.10 0.15 0.08 0.12 UPOU 0.16 0.12 0.22 0.12 0.23 0.16 Total 1.00 1.00 1.00 1.00 1.00 1.00

The result needs to be validated by asking various stakeholders from the IT-BPM industry to do pair-wise comparisons across member-organizations. Respondents from the following sectors may be asked to participate:

Table 33 below shows the dominant alternative after the ratings by the stakeholders.

Table 33: Stakeholder Ratings (Champion/Primary Owner) Rating by Representatives Average Priority Alternatives ACPI CCAP GDAP HIMOAP PSIA AIM 0.13 0.21 0.12 0.15 0.12 0.15 2 HEI/SUC 0.12 0.15 0.17 0.11 0.12 0.13 7 IBPAP/IA 0.20 0.16 0.14 0.12 0.15 0.15 1 ITBPM 0.13 0.10 0.14 0.16 0.19 0.14 3 LGU 0.14 0.12 0.15 0.17 0.13 0.14 5 TVI 0.12 0.14 0.16 0.17 0.12 0.14 4 UPOU 0.16 0.12 0.12 0.12 0.17 0.14 6 Total 1.00 1.00 1.00 1.00 1.00 1.00 #

See Annex A for the spreadsheet file that details the flow of the computations.

VIII. CONCLUSIONS AND RECOMMENDATIONS

Knowledge Hubs can serve many different purposes to different stakeholders. It can be a vehicle to learn systematically, it can be a venue for exchanging development or commercial experiences in order to accelerate economic growth, it can channel knowledge to and from stakeholders or serve as the venue for training and speeding up talent development. Knowledge hubs are used by a broad range of sectors and areas including agriculture, environment, public health, social protection, disaster and relief operations, IT, training, research, climate change, development cooperation programs, etc. Different models for establishing Knowledge hubs exist locally and globally.

Because knowledge hub functions encompass a wide range of responsibilities, the criteria for establishing a hub varies from one hub to another. The criteria for selecting the hubs consider many elements and include many factors depending on its purpose and model. The table below summarizes the key characteristics that are considered necessary for locating the knowledge hubs and selecting the beneficiary HEIs/SUCs. The following characteristics which are deemed to be the minimum requirements to effectively implement the hubs objectives are recommended to be the core considerations for defining and selecting the knowledge hubs that will be created by IBPAP and its partners under the ADB funded project:

Criteria Factors to consider to determine Characteristics Description of the Characteristics score or weight of Characteristics 1. Content Is information and experiences that  Is the content is aligned to the over- may provide value for an end- all objectives of the knowledge hub? user/audience in specific contexts.  Is the cost to deliver the content to its Content may be delivered via any audience minimal? medium such as the internet,  Is there is high demand from the television, and audio CDs, as well as audience for the delivery of the live events such as conferences and content? stage performances. The word is  Is there is high requirement/demand used to identify and quantify various by the industry for graduates of the formats and genres of information as content? manageable value-adding  Is the need for the graduates of the components of useful media to the content urgent? target audience. 2. Audience Is a group of people who participate  Is the audience highly employable in a program or encounter a work of after the program? art, literature (in which they are called  Does the audience have the "readers"), theatre, music (in which resources to complete the program? they are called "listeners"), video  Is the audience supported by private games (in which they are called or public institutions? "players"), or academics in any  Is the partnership with the audience medium. Audience members sustainable in the long-run? participate in different ways in  Is there a high volume of participants different kinds of art; some events from a particular audience-sector? invite overt audience participation and others allowing only modest clapping and criticism and reception.

Criteria Factors to consider to determine Characteristics Description of the Characteristics score or weight of Characteristics 3. Geographical The terms location and place in  Does the location have professional, Location geography are used to identify a point industry or civic associations? or an area on the Earth's surface or  Is the location ranked high either as elsewhere. The term location a Center of Excellence or Next Wave generally implies a higher degree of City? certainty than place, which often  Does the location have active IBPAP indicates an entity with an ambiguous members? boundary, relying more on  Does the location have existing human/social attributes of place private-public partnerships? identity and sense of place than on  Does the location have HEIs/SUCs? geometry. 4. Delivery Delivery method is the medium that  Is the delivery method available Method facilitates the transfer of content from everywhere and anytime? the primary owner to the end-  Is the delivery method easy for the user/audience. This transfer may be audience to use? done via the internet, television, and  Is the method effective in the delivery audio CDs, as well as live events of the content? such as conferences and stage  Is the cost for maintenance of the performances. delivery method minimal?  Is the quality of graduates who used the delivery method high and does it meet industry standards? 5. Champion/ The champion/primary owner is the  Is the champion/primary owner Primary Owner organization or entity that will be physically accessible or a resident of ultimately responsible for the day-to- the area? day activities of the knowledge hub,  Does the champion/primary owner including but not limited to have sufficient and appropriate transactions with the audience and existing IT & physical infrastructure? other stakeholders.  Does the champion/primary owner have existing short term or long term local, national or international linkages?  Does the champion/primary owner have demonstrated management and administration expertise?  Does the primary owner have sufficient, capable and willing personnel?

The weights of each characteristic will be determined by the stakeholders based on the application of the Analytic Hierarchy Process and on any other priority considerations that may be identified by IBPAP and its partners to be part of the criteria. At the end of the exercise, ratings in terms of content, delivery method, audience, geographical location, and champion/primary owner, will be determined. Ultimately, the exercise will facilitate the selection of the three institutions that will serve as knowledge hubs.

IX. OTHER CONSIDERATIONS FOR SELECTING KNOWLEDGE HUBS

In addition to the core characteristics enumerated in the previous section, the selection criteria may also consider a second level SMP-specific criteria that would include the following:

(i) Considering that the knowledge hubs will potentially include a broader target group that will include the OSYs, OFWs, and PWDs, it is important that the hub is able to deliver the SMP in different modes based on the needs and capacity of these potential users. This would facilitate access of the SMP to more untapped talent all over the country, including the career-shifters who have already earned their baccalaureate degrees in the past. Limiting the delivery to a specialization track under the existing CHED-CMO for the BSBA, BSCS, BSIT, and BSIM programs may, to a certain extent, limit the scale up that is envisioned.

(ii) There is merit for the knowledge hub be made a one-stop shop for internship and employment, i.e. an intermediary between the industry and the talent pool. As a one-stop shop, the knowledge hub will facilitate the matching between demand and supply including placement during internship and recruitment after graduation. This strategy will allow students to acquire an education that balances practical learning experiences with knowledge and skills development to prepare them for the workforce. In addition, this rationale will ensure the sustained production of knowledge and innovation

(iii) A sustainable business model, including funding and organizational structure, must be created for the knowledge hub. The Champion/Primary Owner must treat the knowledge hub as a separate business unit that is able to generate sufficient revenues to fund its operations. It should also have its own dedicated personnel who will ensure that the knowledge hub will serve its purpose efficiently and effectively.

(iv) The IT infrastructure for operationalizing the hub, including the IT requirements for students to access the hubs (or the knowledge) needs to be reviewed and made available if the hub is to function effectively. Two key factors need to be seriously evaluated in this regard. The ICT architecture of the hub should have the design to acquire, assimilate and adopt new knowledge while at the same time ensuring that its audience can easily access the knowledge in a cost effective manner. The ability to make available a sustainable structure for Knowledge flows and knowledge depositories should be a major consideration in selecting the hubs considering the current ICT constraints brought about by the uneven growth of ICT infrastructure in rural areas and knowing that knowledge hubs take time to develop.

(v) Knowledge hub is a relatively new term in the field of education even if a few educational institutions have begun to develop and operate their hubs. It will be important to have strong political commitment (and even investment) from the government education sector and to ensure the other implementing institutions capacities to engage more systematically in developing, and sustaining hub components and programs. Because it is a new field of engagement, actual solutions for scaling up knowledge sharing, for example, are still largely unknown. A lot of effort and expertise need to be tapped to develop an effective hub.

APPENDICES

Appendix 1. Distribution of Higher Education Institutions

Appendix 2. Philippine Regions as of 31 December 2013

Appendix 3. Sample Questionnaire Appendix 1 35

Appendix 1. Distribution of Higher Education Institutions

Figure 4: Distribution of Higher Education Institutions by Institution Type AY 2011 - 2012

Table 34: Distribution of Higher Education Institutions by Region and Sector Type: AY 2011 - 2012

36 Appendix 2

Appendix 2. Philippine Regions as of 31 December 2013

Region: NCR - National Capital Region Code: 130000000 No. No. of No. of No. of 0 of 16 1 1,705 Provinces Municipalities Barangays Cities Registered Voters (2010): 5,999,706 Population (as of May 1, 2010): 11,855,975

Region: CAR - Cordillera Administrative Region Code: 140000000 No. No. of No. of No. of 6 of 2 75 1,176 Provinces Municipalities Barangays Cities Registered Voters (2010): 840,145 Population (as of May 1, 2010): 1,616,867

Region: REGION I (Ilocos Region) Code: 010000000 No. No. of No. of No. of 4 of 9 116 3,265 Provinces Municipalities Barangays Cities Registered Voters (2010): 2,627,045 Population (as of May 1, 2010): 4,748,372

Region: REGION II (Cagayan Valley) Code: 020000000 No. No. of No. of No. of 5 of 3 90 2,311 Provinces Municipalities Barangays Cities Registered Voters (2010): 1,735,564 Population (as of May 1, 2010): 3,229,163

Region: REGION III (Central Luzon) Code: 030000000 No. No. of No. of No. of 7 of 13 117 3,102 Provinces Municipalities Barangays Cities Registered Voters (2010): 5,472,593 Population (as of May 1, 2010): 10,137,737

Appendix 2 37

Region: REGION IV-A (CALABARZON) Code: 040000000 No. No. of No. of No. of 5 of 16 126 4,011 Provinces Municipalities Barangays Cities Registered Voters (2010): 6,178,557 Population (as of May 1, 2010): 12,609,803

Region: REGION IV-B (MIMAROPA) Code: 170000000 No. No. of No. of No. of 5 of 2 71 1,458 Provinces Municipalities Barangays Cities Registered Voters (2010): 1,375,320 Population (as of May 1, 2010): 2,744,671

Region: REGION V (Bicol Region) Code: 050000000 No. No. of No. of No. of 6 of 7 107 3,471 Provinces Municipalities Barangays Cities Registered Voters (2010): 2,774,327 Population (as of May 1, 2010): 5,420,411

Region: REGION VI (Western Visayas) Code: 060000000 No. No. of No. of No. of 6 of 16 117 4,051 Provinces Municipalities Barangays Cities Registered Voters (2010): 3,914,326 Population (as of May 1, 2010): 7,102,438

Region: REGION VII (Central Visayas) Code: 070000000 No. No. of No. of No. of 4 of 16 116 3,003 Provinces Municipalities Barangays Cities Registered Voters (2010): 3,655,441 Population (as of May 1, 2010): 6,800,180

38 Appendix 2

Region: REGION VIII (Eastern Visayas) Code: 080000000 No. No. of No. of No. of 6 of 7 136 4,390 Provinces Municipalities Barangays Cities Registered Voters (2010): 2,337,185 Population (as of May 1, 2010): 4,101,322

Region: REGION IX (Zamboanga Peninsula) Code: 090000000 No. No. of No. of No. of 3 of 5 67 1,904 Provinces Municipalities Barangays Cities Registered Voters (2010): 1,804,278 Population (as of May 1, 2010): 3,407,353

Region: REGION X (Northern Mindanao) Code: 100000000 No. No. of No. of No. of 5 of 9 84 2,022 Provinces Municipalities Barangays Cities Registered Voters (2010): 2,230,538 Population (as of May 1, 2010): 4,297,323

Region: REGION XI (Davao Region) Code: 110000000 No. No. of No. of No. of 5 of 6 43 1,162 Provinces Municipalities Barangays Cities Registered Voters (2010): 2,433,932 Population (as of May 1, 2010): 4,468,563

Region: REGION XII (Soccsksargen) Code: 120000000 No. No. of No. of No. of 4 of 5 45 1,194 Provinces Municipalities Barangays Cities Registered Voters (2010): 1,896,772 Population (as of May 1, 2010): 4,109,571

Appendix 2 39

Region: REGION XIII (Caraga) Code: 160000000 No. No. of No. of No. of 5 of 6 67 1,311 Provinces Municipalities Barangays Cities Registered Voters (2010): 1,307,397 Population (as of May 1, 2010): 2,429,224

Region: ARMM - Autonomous Region in Muslim Code: 150000000 Mindanao No. No. of No. of No. of 5 of 2 116 2,490 Provinces Municipalities Barangays Cities Registered Voters (2010): 1,692,468 Population (as of May 1, 2010): 3,256,140

PHILIPPINES ( REGIONS) No. No. of No. of No. of 81 of 140 1494 42026 Provinces Municipalities Barangays Cities Registered Voters (2010): 48,275,594 Population (as of May 1, 2010): 92,335,113

40 Appendix 3

Appendix 3. Sample Questionnaire

Dear IBPAP member,

IBPAP is in the process of establishing three (3) knowledge hubs in the Philippines. The primary purpose of these knowledge hubs is to address the gap between labor demand and supply in the IT- BPM industry. We need your assistance in determining the institutions that will serve as knowledge hubs. We would like to ask for a few minutes of your time to accomplish the questionnaire below.

Thank you very much.

IBPAP Research Team

Steps: 1. For each attribute, please rate each of the criteria from 0 to 9, 0 being the least preferred and 9 being the most preferred. Example: For Attribute 1: Content, please rate Alignment (a criterion) from 0 to 9.

2. Alternatives have been identified for each attribute. Please rate each alternative based on a particular criterion. Example, please rate Assessment (an alternative) from 0 to 9 based on alignment with the overall objectives of the knowledge hub.

3. Special rates, as shown below, may also be used. Example Meaning 2.5 A rate between 2 and 3. 4 and another 4 Two items with equal rate. 9 followed by 7 Rate 8 may be skipped. Blank is considered rate 0.

Appendix 3 41

Characteristic 1: CONTENT Criteria Meaning Alignment The content is aligned to the over-all objectives of the knowledge hub. Cost The cost to deliver the content to its audience is minimal. Demand There is high demand from the audience for the delivery of the content. Requirement There is high requirement by the industry for graduates of the content. Urgency The need by the industry for graduates of the content is urgent.

Alternatives Meaning Assessment Assessment tools (GCAT, etc.) can be accessed. Certification Certification courses for faculty and trainers (T3, etc.) are delivered. Corporate There are short courses for corporate employee/management training. English English courses (BEST, AdEPT, etc.) are delivered. Foreign Foreign language courses (Spanish, French, etc.) are delivered. Formal There is content that leads to formal diploma education (SMP, etc.). Skills There are short courses for technical skills training.

Criteria Rate Alignment Cost Demand Requirement Urgency

Alternatives Alignment Cost Demand Requirement Urgency Assessment Certification Corporate English Foreign Formal Skills

42 Appendix 3

ATTRIBUTE 2: METHOD OF DELIVERY

Criteria Meaning Availability The delivery method is available everywhere and anytime. Ease The delivery method is easy for the audience to use. Effectiveness The method is effective in the delivery of the content. Maintenance The cost for maintenance of the delivery method is minimal. Quality Quality of graduates who used the delivery method is high.

Alternatives Meaning Classroom The delivery method is classroom or face-to-face. e-Mail The content is delivered through electronic mail. Mail The content is delivered through traditional mail. Mobile The content is delivered through mobile devices. Online The content is delivered online. Social The content is delivered through social media. VOIP The content is delivered through voice over internet protocol.

Criteria Rate Availability Ease Effectiveness Maintenance Quality

Alternatives Availability Ease Effectiveness Maintenance Quality Classroom e-Mail Mail Mobile Online Social VOIP

Appendix 3 43

ATTRIBUTE 3: AUDIENCE

Criteria Meaning Employability The audience are highly employable after the program. Resources The audience have the resources to complete the program. Support The audience is supported by private or public institutions. Sustainability The partnership with the audience is sustainable in the long-run. Volume There is high volume of participants from this audience-sector.

Alternatives Meaning HEI The target audience are the higher education institutions. K-12 The target audience are the K-12 (senior high school) institutions. OFW The target audience are the overseas Filipino workers. OSY The target audience are the out-of-school youth. PWD The target audience are the persons with disability. Shifters The target audience are the career shifters. TVI The target audience are the technical and vocational institutions.

Criteria Rate Employability Resources Support Sustainability Volume

Alternatives Employability Resources Support Sustainability Volume HEI K-12 OFW OSY PWD Shifters TVI

44 Appendix 3

ATTRIBUTE 4: GEOGRAPHICAL LOCATION

Criteria Meaning Associations The location has professional and civic associations. COE/NWC The location is ranked high as Center of Excellence or Nextwave City. IBPAP The location has active IBPAP members. Partnerships The location has existing private-public partnerships. Schools The location has existing schools (HEI/SUC, TVI, K-12).

Alternatives Meaning Bacolod City The geographical location is to be established in Bacolod City. Davao City The geographical location is to be established in Davao City. Metro Cavite The geographical location is to be established in Metro Cavite. Metro Cebu The geographical location is to be established in Metro Cebu. Metro Clark The geographical location is to be established in Metro Clark Metro Laguna The geographical location is to be established in Metro Laguna. Metro Manila The geographical location is to be established in Metro Manila.

Criteria Rate Associations COE/NWC IBPAP Partnerships Schools

Alternatives Associations COE/NWC IBPAP Partnerships Schools Bacolod City Davao City Metro Cavite Metro Cebu Metro Clark Metro Laguna Metro Manila

Appendix 3 45

ATTRIBUTE 5: PRIMARY OWNER

Criteria Meaning Accessibility The primary owner is physically accessible. Infrastructure The primary owner has existing infrastructure. Linkages The primary owner has existing local and international linkages. Management The primary owner has a committed management or administration. Personnel The primary owner has capable and willing personnel.

Alternatives Meaning AIM The primary owner is Asian Institute of Management. HEI/SUC The primary owner is an HEI or SUC. IBPAP/IA The primary owner is IBPAP or an industry association. ITBPM The primary owner is an ITBPM company. LGU The primary owner is a local government unit. TVI The primary owner is a technical and vocational institution. UPOU The primary owner is UP Open University.

Criteria Rate Accessibility Infrastructure Linkages Management Personnel

Alternatives Accessibility Infrastructure Linkages Management Personnel AIM HEI/SUC IBPAP/IA ITBPM LGU TVI UPOU

Annex A 46

Annex A. Computational Spreadsheet (Sample File)

Knowledge Hub Knowledge Hub Knowledge Hub Knowledge Hub Knowledge Hub Criteria Criteria Criteria Criteria Criteria Respondent: Sample Respondent: Sample Respondent: Sample Respondent: Sample Respondent: Sample

Characteristic: 1 Content Characteristic: 2 Delivery Method Attribute: 3 Audience Attribute: 4 Geographical Location Attribute: 5 Primary Owner

Table 2.3 Definition of Criteria Table 2.9 Definition of Criteria Table 2.15 Definition of Criteria Table 2.21 Definition of Criteria Table 2.27 Definition of Criteria

Facet Meaning Facet Meaning Criteria Meaning Criteria Meaning Criteria Meaning Alignment The content is aligned to the over-all objectives of the knowledge hub. Availability The delivery method is available everywhere and anytime. Employability The audience are highly employable after the program. Associations The location has professional and civic associations. Accessibility The primary owner is physically accessible. Cost The cost to deliver the content to its audience is minimal. Ease The delivery method is easy for the audience to use. Resources The audience have the resources to complete the program. COE/NWC The location is ranked high as Center of Excellence or Nextwave City. Infrastructure The primary owner has existing infrastructure. Demand There is high demand from the audience for the delivery of the content. Effectiveness The method is effective in the delivery of the content. Support The audience is supported by private or public institutions. IBPAP The location has active IBPAP members. Linkages The primary owner has existing local and international linkages. Requirement There is high requirement by the industry for graduates of the content. Maintenance The cost for maintenance of the delivery method is minimal. Sustainability The partnership with the audience is sustainable in the long-run. Partnerships The location has existing private-public partnerships. Management The primary owner has a committed management or administration. Urgency The need by the industry for graduates of the content is urgent. Quality Quality of graduates who used the delivery method is high. Volume There is high volume of participants from this audience-sector. Schools The location has existing schools (HEI/SUC, TVI, K-12). Personnel The primary owner has capable and willing personnel.

Table 2.4 Definition of Alternatives Table 2.10 Definition of Alternatives Table 2.16 Definition of Alternatives Table 2.22 Definition of Alternatives Table 2.28 Definition of Alternatives

Alternatives Meaning Alternatives Meaning Alternatives Meaning Alternatives Meaning Alternatives Meaning Assessment Assessment tools (GCAT, etc.) can be accessed. Classroom The delivery method is classroom or face-to-face. HEI The target audience are the higher education institutions. Bacolod City The geographical location is to be established in Bacolod City. AIM The primary owner is Asian Institute of Management. Certification Certification courses for faculty and trainers (T3, etc.) are delivered. e-Mail The content is delivered through electronic mail. K-12 The target audience are the K-12 (senior high school) institutions. Davao City The geographical location is to be established in Davao City. HEI/SUC The primary owner is an HEI or SUC. Corporate There are short courses for corporate employee/management training. Mail The content is delivered through traditional mail. OFW The target audience are the overseas Filipino workers. Metro Cavite The geographical location is to be established in Metro Cavite. IBPAP/IA The primary owner is IBPAP or an industry association. English English courses (BEST, AdEPT, etc.) are delivered. Mobile The content is delivered through mobile devices. OSY The target audience are the out-of-school youth. Metro Cebu The geographical location is to be established in Metro Cebu. ITBPM The primary owner is an ITBPM company. Foreign Foreign language courses (Spanish, French, etc.) are delivered. Online The content is delivered online. PWD The target audience are the persons with disability. Metro Clark The geographical location is to be established in Metro Clark LGU The primary owner is a local government unit. Formal There is content that leads to formal diploma education (SMP, etc.). Social The content is delivered through social media. Shifters The target audience are the career shifters. Metro Laguna The geographical location is to be established in Metro Laguna. TVI The primary owner is a technical and vocational institution. Skills There are short courses for technical skills training. VOIP The content is delivered through voice over internet protocol. TVI The target audience are the technical and vocational institutions. Metro Manila The geographical location is to be established in Metro Manila. UPOU The primary owner is UP Open University.

Table 2.5 Rating Table 2.11 Rating Table 2.17 Rating Table 2.23 Rating Table 2.29 Rating

Facet Facet Criteria Criteria Criteria Rate Alignment Cost Demand Requirement Urgency Rate Availability Ease Effectiveness Maintenance Quality Rate Employability Resources Support Sustainability Volume Rate Associations COE/NWC IBPAP Partnerships Schools Rate Accessibility Infrastructure Linkages Management Personnel

Alternatives Alignment Cost Demand Requirement Urgency Alternatives Availability Ease Effectiveness Maintenance Quality Alternatives Employability Resources Support Sustainability Volume Alternatives Associations COE/NWC IBPAP Partnerships Schools Alternatives Accessibility Infrastructure Linkages Management Personnel Assessment Classroom HEI Bacolod City AIM Certification e-Mail K-12 Davao City HEI/SUC Corporate Mail OFW Metro Cavite IBPAP/IA English Mobile OSY Metro Cebu ITBPM Foreign Online PWD Metro Clark LGU Formal Social Shifters Metro Laguna TVI Skills VOIP TVI Metro Manila UPOU

Table 2.6 Total Table 2.12 Total Table 2.18 Total Table 2.24 Total Table 2.30 Total

Table 2.7 Product Table 2.13 Product Table 2.19 Product Table 2.25 Product Table 2.31 Product

Facet Facet Criteria Criteria Criteria Total Total Total Total Total Rate Alignment Cost Demand Requirement Urgency Rate Availability Ease Effectiveness Maintenance Quality Rate Employability Resources Support Sustainability Volume Rate Associations COE/NWC IBPAP Partnerships Schools Rate Accessibility Infrastructure Linkages Management Personnel #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! Alternatives Alignment Cost Demand Requirement Urgency Product Alternatives Availability Ease Effectiveness Maintenance Quality Product Alternatives Employability Resources Support Sustainability Volume Product Alternatives Associations COE/NWC IBPAP Partnerships Schools Product Alternatives Accessibility Infrastructure Linkages Management Personnel Product Assessment #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! Classroom #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! HEI #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! Bacolod City #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! AIM #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! Certification #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! e-Mail #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! K-12 #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! Davao City #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! HEI/SUC #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! Corporate #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! Mail #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! OFW #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! Metro Cavite #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! IBPAP/IA #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! English #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! Mobile #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! OSY #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! Metro Cebu #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! ITBPM #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! Foreign #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! Online #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! PWD #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! Metro Clark #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! LGU #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! Formal #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! Social #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! Shifters #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! Metro Laguna #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! TVI #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! Skills #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! VOIP #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! TVI #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! Metro Manila #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! UPOU #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! Total #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! Total #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! Total #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! Total #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! Total #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!

Table 2.8 Stakeholder Ratings Table 2.14 Stakeholder Ratings Table 2.20 Stakeholder Ratings Table 2.26 Stakeholder Ratings Table 2.32 Stakeholder Ratings

Rating by Representatives Rating by Representatives Rating by Representatives Rating by Representatives Rating by Representatives Alternatives Priority Alternatives Priority Alternatives Priority Alternatives Priority Alternatives Priority ACPI CCAP GDAP HIMOAP PSIA ACPI CCAP GDAP HIMOAP PSIA ACPI CCAP GDAP HIMOAP PSIA ACPI CCAP GDAP HIMOAP PSIA ACPI CCAP GDAP HIMOAP PSIA Assessment #DIV/0! #DIV/0! Classroom #DIV/0! #DIV/0! HEI #DIV/0! #DIV/0! Bacolod City #DIV/0! #DIV/0! AIM #DIV/0! #DIV/0! Certification #DIV/0! #DIV/0! e-Mail #DIV/0! #DIV/0! K-12 #DIV/0! #DIV/0! Davao City #DIV/0! #DIV/0! HEI/SUC #DIV/0! #DIV/0! Corporate #DIV/0! #DIV/0! Mail #DIV/0! #DIV/0! OFW #DIV/0! #DIV/0! Metro Cavite #DIV/0! #DIV/0! IBPAP/IA #DIV/0! #DIV/0! English #DIV/0! #DIV/0! Mobile #DIV/0! #DIV/0! OSY #DIV/0! #DIV/0! Metro Cebu #DIV/0! #DIV/0! ITBPM #DIV/0! #DIV/0! Foreign #DIV/0! #DIV/0! Online #DIV/0! #DIV/0! PWD #DIV/0! #DIV/0! Metro Clark #DIV/0! #DIV/0! LGU #DIV/0! #DIV/0! Formal #DIV/0! #DIV/0! Social #DIV/0! #DIV/0! Shifters #DIV/0! #DIV/0! Metro Laguna #DIV/0! #DIV/0! TVI #DIV/0! #DIV/0! Skills #DIV/0! #DIV/0! VOIP #DIV/0! #DIV/0! TVI #DIV/0! #DIV/0! Metro Manila #DIV/0! #DIV/0! UPOU #DIV/0! #DIV/0! Total #DIV/0! 0.00 0.00 0.00 0.00 # Total #DIV/0! 0.00 0.00 0.00 0.00 # Total #DIV/0! 0.00 0.00 0.00 0.00 # Total #DIV/0! 0.00 0.00 0.00 0.00 # Total #DIV/0! 0.00 0.00 0.00 0.00 #

Asian Development Bank

Department of Finance Republic of the Philippines

IT-BPO Industry Knowledge Hub Project

Deliverable 2: Proposed IT-BPM Knowledge Hub Business Model and Roadmap

Information Technology and Business Process Association of the Philippines

DRAFT (Dec 5)

Deliverable 2: Proposed IT_BPM Knowledge Hub Business Model and Roadmap

TA-8164 PHI: Strengthening Knowledge-Based Economic and Social Development – 1 BPAP (46234-001)*

Prepared by

Information Technology-Business Process Association of the Philippines Consultant 5 December 2014

iii

Acronyms and Abbreviations

AdEPT Advanced English Proficiency Training ACPI Animation Council of the Philippines, Inc. ADB Asian Development Bank AHP Analytic Hierarchy Process AIM Asian Institute of Management ASEAN Association of Southeast Asian Nations BEST Basic English Skills Training BPO Business Process Outsourcing BSBA Bachelor of Science in Business Administration BSIS/IM Bachelor of Science in Information Systems/Information Management BSIT Bachelor of Science in Information Technology CCAP Call Center Association of the Philippines CEO Chief Executive Officer CICT Commission on Information and Communication Technology (currently DOST-ICTO) CHED Commission on Higher Education CMO CHED Memorandum Order COA Commission on Audit COP Community of Practice CSO Civil Society Organization DOF Department of Finance DOST Department of Science and Technology FGD Focus Group Discussion FTE Full-time Employee GIC Global In-house Center GO Government Organization GDAP Game Developers Association of the Philippines GDP Gross Domestic Product GMAM General Membership Assembly Meetings HEI Higher Educational Institutions HIMOAP Healthcare Information Management Outsourcing Association of the Philippines HR Human Resource IBPAP Information Technology–Business Process Association of the Philippines ICT Information and Communication Technology ICTO Information and Communication Technology Office (formerly CICT) ILO International Labor Organization IT Information Technology IT–BPM Information Technology–Business Process Management I-TWSP Industry-based Training for Work Scholarship Program K-12 Kindergarten to Grade 12 KH Knowledge Hub LGU Local Government Unit LMS Learning Management Systems LUC Local Universities and Colleges iv

Acronyms and Abbreviations

M&E Monitoring and Evaluation NEDA National Economic Development Authority NG National Government NGO Non-government Organization OFW Overseas Filipino Worker OSY Out-of-School Youth PDP Philippine Development Plan PDS Philippine Digital Strategy PKH Physical Knowledge Hub PMF Project Management Framework PO People’s Organization PSC Project Steering Committee PSIA Philippine Software Industry Association PWD Persons with Disability RBM Results-based Management SEI Science Education Institute SME Small to Medium scale Enterprise SMP Service Management Program SUC State Universities and Colleges TA Technical Assistance T3 Train-the-Trainer (Program) TESDA Technical Education and Skills Development Authority TOR Terms of Reference TVI Technical and Vocational Institutions UPOU University of the Philippines-Open University VKH Virtual Knowledge Hub WB World Bank

TABLE OF CONTENTS

EXECUTIVE SUMMARY ...... 1 I. INTRODUCTION ...... 4 II. THE PHILIPPINE IT–BPM SECTOR: A TRACK RECORD OF GROWTH & OPPORTUNITY . 5 A. Sector Performance and Targets ...... 5 Figure 1: Philippines’ IT–BPM and Global In-house Center (GIC) industry revenue targets for 2016...... 5

B. The IT–BPM Talent Challenge ...... 6 Figure 2: Projected talent demand-supply gap for the IT–BPM industry ...... 6

C. IBPAP’s Talent Development Framework ...... 8 Figure 3: The IT–BPM Learning Journey ...... 8 Figure 4: SMP/eSMP Implementations Framework ...... 9 III. A NEW TALENT DEVELOPMENT STRATEGY TO SUSTAIN TALENT GROWTH: THE KNOWLEDGE HUB ...... 10 IV. KH BEST PRACTICES AND MODELS IN OTHER COUNTRIES AND SECTORS ...... 11 Table 1: Typology based on formality and obligations of the partners ...... 11 V. PHILIPPINE GOVERNMENT SUPPORT FOR THE IT–BPM SECTOR AND E-LEARNING .. 14 VI. THE PROPOSED IT–BPM KNOWLEDGE HUB ...... 15 A. Mission/Purpose ...... 15

B. Knowledge Hub Building Blocks...... 16

C. The Knowledge Hub Business Model ...... 17 Figure 5: Business Model Canvas ...... 19 Figure 6: KH Interdependencies ...... 20 Figure 7: KH Network Functionality and Flow ...... 21 Figure 8: KH Functional Chart ...... 22 Figure 9: Governance Structure ...... 23 VII. BUILDING THE KNOWLEDGE HUB ...... 25 A. Design Considerations and Assumptions ...... 25

B. KH Development Phases ...... 26 Figure 10: Conceptual Gantt Chart ...... 27

C. Implementation Timeline ...... 30 Table 2: Implementation Timeline Summary ...... 31 VIII. ROLE OF IBPAP...... 32 A. Role in the Industry ...... 32

B. Role with respect to the KH ...... 32 IX. PERCEIVED RISK AND RISK MITIGATING MEASURES ...... 32 Table 3: Risk and Mitigation Measures ...... 33 X. FINANCIAL REQUIREMENTS OF THE KH ...... 34 APPENDIX 1. KNOWLEDGE HUBS REVIEWED ...... 37

EXECUTIVE SUMMARY

The IT–BPM industry in the Philippines has attained leadership in establishing a sizeable business process outsourcing (BPO) presence in Southeast Asia. Currently, it is the largest private sector job creator for skilled Filipinos contributing approximately 6.2% of GDP in 2014 and it is the Philippines’ third largest foreign exchange earner after tourism and remittances. Industry leaders and the results of the 2014 Tholons study commissioned by the IBPAP and the Commission on Information Communication Technology (CICT) confirm that its 2016 targets of $25 billion in revenues and 1.3 million full time employment (FTE)/jobs and are within very easy reach. The study also projects that by 2020, the industry will achieve $48 billion in revenues for the Philippine global outsourcing industry

The single, most important issue facing the industry that will impact on the success of the IT–BPM sector in sustaining its growth is the availability of qualified talent. Historically, talent supply in the industry was in excess of demand. However, since 2010, demand has consistently outpaced supply given the faster growth being experienced by the industry. Many challenges have been cited including the lack of proficiency and skills, low IT literacy rates and poor access to computers of the larger sector of the population, relatively higher attrition rates and weak university–industry linkage have been cited as key issues impacting on the availability of qualified talent.

To address these gaps, IBPAP and the different government education sector agencies have partnered in implementing traditional talent development initiatives, including the Service Management Program (SMP). While many concrete gains have been achieved by these projects at this time, there remain many critical gaps and constraints that have yet to be adequately addressed and many new ones are emerging.

Hundreds of knowledge hubs or networks are used globally in many different sectors and for many different reasons. Governments invest in dedicated institutional and operational arrangements for peer-to-peer learning – what pitfalls to avoid, what practices to adopt. For many countries, sharing their knowledge and experience, especially those with interesting development experiences, is a way to develop meaningful international partnerships. In the private sector, knowledge hubs or portals are used to support different part of operations to disseminate information, quality standards, do knowledge transfers and training, communicate needs and issues, and announce employment opportunities that covers human resources, technology, customers, suppliers, community, and civil society groups.

The proposed Knowledge Hub aims to support the following government, academic, IBPAP and IT–BPM sector goals and initiatives:

(i) address the skills shortage in the IT–BPM industry, (ii) serve as the gateway for knowledge sharing and networking among industry members and other stakeholders, (iii) enable Public-Private Partnerships for Talent Development, (iv) build and sustain Industry-Academe Partnerships, (v) promote Industry Growth, (vi) reform initiatives in the higher education systems and programs to produce suitable graduates to meet the labor demands of high growth industries such as IT-BPM industry, and (vii) expand reach and scale IT-BPAP’s talent development programs

The KH seeks to support improvement in the alignment of higher education with the needs of the economy. It will have a central role to play specifically in driving the continuous process for generating and implementing talent development programs and courses. The expected KH key specific outputs are increased access to knowledge resources for the IT– BPM designed courses, enhanced higher education curricula and instruction, and strengthened partnership between industries and academic institutions. The long term impact becomes tangible through a replicable and sustainable system of ICT-enabled knowledge hubs for the improved teaching and learning of IT–BPM industry designed curricula in HEIs.

The KH is intended to house developed industry-designed courses and industry assessment tools including a middle management and leadership program that will be utilized by all HEIs and training institutions. The Knowledge Hub will also initiate international and national twinning arrangements and support stronger industry-academe linkages. These activities collectively aim to scale up the deployment of cost-effective models for strengthening and delivering HEI programs, improving the flow of talent to the industry, sustaining Knowledge Hub activities and substantially contribute to addressing industry demand for talent.

The KH Business Model will offer services covering the following foundational areas:

(i) member’s competency promotion, (ii) assessment, certification, and accreditation delivery, (iii) curriculum development, (iv) opportunity matching, (v) talent development, and (vi) industry knowledge management.

It will employ a Hub and Spoke model to bring together the different stakeholder sectors and players. It is designed to be sustained through an identified number of revenue streams that include membership fees, project funds from multilateral, bilateral and other international agencies, sponsorships from the IT–BPM firms and fees for “services and knowledge products” such as certification and assessment fees, and cost of GCAT pins. A governance mechanism that includes representation from the industry and industry associations, academe, government, NGOs/CSOs and similar stakeholders is proposed.

Four phases have been identified for the implementation of the Knowledge Hub: Organizational, Developmental, Operational and Innovational. The KH will require an initial PHP 10 million seed fund and an annual operating budget of about PHP 5-10 million. A workplan has been prepared for the establishment of the KH.

IBPAP will work in partnership with the KH to achieve common IT–BPM talent development goals. It will continue to exercise and lead in strategically building and supporting talent development. IBPAP will identify and approve selection of the KH based on an established criteria, assist in creating it and be the lead resource to help build the Hub’s core capacity to manage and operate. During the early stages of organization and development as it builds some operational experience including building networks with the industry, IBPAP may serve as the virtual or physical base from which the KH will operate. To ensure its close ties and partnership with the IT–BPM sector, the IBPAP President shall sit as a permanent member of the KH Board of Trustees.

As the KHs become operational and the HEIs are able to institutionalize SMP in their curriculum offering, IBPAP is seen to slowly divest from its existing course delivery and deployment function. The KH is envisioned to move towards being operationally independent as it strengthens its management and sustains its activities.

I. INTRODUCTION

The Philippine Government sought the assistance of the Asian Development Bank (ADB) through the Department of Finance (DOF) to provide capacity development technical assistance (TA) in addressing skills shortages in the IT–BPM industry by aligning higher education curricula with international standards and labor market demand, simultaneously, developing and strengthening public and private partnerships. To achieve these goals, the TA will employ knowledge hubs to develop replicable models for strengthening relationships among the government, industry, and higher education institutions (HEIs) within the IT– BPM industry; sharing and learning regional knowledge and experiences; and supporting other similar high-growth industries.1

The TA impact is improved alignment of higher education with the needs of the economy. The TA outcome is a replicable and sustainable system of ICT-enabled knowledge hub (KH) for improved teaching and learning of IT-BPO industry-based curriculum in HEIs.

One of the key components identified under the TA to improve higher education curricula and support a stronger industry-university linkage specifically for the IT–BPM sector; vital to this is the establishment of a Knowledge Hub (KH). Initially, the KH is envisioned to provide online training to teachers and digitized learning modules and study guides to students.

The project consultants reviewed different best practices and lessons learned on the management and operations of KHs, numerous consultations and discussions with different partners and stakeholders were conducted to solicit their views and inputs, and various literature, laws, and policies were also reviewed. These served as the basis for identifying a possible business models for establishing the KH that will primarily provide on-line training for the IT–BPM courses, potentially serve as the link to potential employers and serve as the forum for the IT–BPM community of practice (COP).

This paper is designed to: (i) establish a KH framework that is suitable for the IT–BPM sector, and (ii) define a proposed road map and timeline for the establishment of the IT– BPM knowledge hub project. It identifies critical technical, organizational, financial and administrative requirements in the development, operation and management aspects that are necessary to support the initial implementation of a KH.

1 ADB. 2012. Technical Assistance (TA) Report, Technical Assistance to the Philippines for Strengthening Knowledge-Based Economic and Social Development. 5

II. THE PHILIPPINE IT–BPM SECTOR: A TRACK RECORD OF GROWTH & OPPORTUNITY

A. Sector Performance and Targets

The IT–BPM industry in the Philippines has attained leadership in establishing a sizeable business process outsourcing (BPO) presence in Southeast Asia. Over the last ten years, the Philippine IT–BPM industry has grown at an impressive annual rate of about 30%, the fastest recorded growth of a global services location. During this ten year period, its global business process management (BPM) market share increased from 4% to 12.3% while employment grew ten times, reaching 1 million employees in 2014.2 It is the largest private sector job creator for skilled Filipinos contributing approximately 6.2% of GDP in 2014 and it is the Philippines’ third largest foreign exchange earner after tourism and remittances. Since 2010, it has been the number one provider of voice and the number two in non-voice related outsourced work in the BPM industry worldwide.

One of the reasons cited for its high level industry performance is an ambitious roadmap that is targeting to achieve revenues of $25 billion or about 10% of the global IT–BPM market.3 This revenue figure is projected to account for about 8% of GDP, potentially making it the second largest source of foreign exchange for the country. Collectively, this goal translates to about 1.3 million direct employees by 2016 and approximately 3.2 million indirect jobs that include a sizeable number in the informal sector. Industry leaders and the results of the 2014 Tholons study commissioned by IBPAP and the Commission on Information Communication Technology (CICT) confirm that its 2016 targets are within very easy reach. The study also projects that by 2020, the industry will achieve $48 billion in revenues for the Philippine global outsourcing industry. Figure 1 shows the projected growth of the industry in terms of revenue.

Figure 1: Philippines’ IT–BPM and Global In-house Center (GIC) industry revenue targets for 2016

2 Tholons Study 3 Philippine IT–BPM Roadmap 2012–2016, © 2013 Information Technology Business Process Association of the Philippines and TeamAsia, published by the Department of Science and Technology–Information and Communications Technology Office (DOST–ICTO).

The industry has embarked on a wide range of initiatives and strategies to sustain its competitiveness and success in the voice segment and consider expanding into non-voice services. It has identified key drivers of growth and the kind of strategies needed to reach its targets. Specifically, its strategies are concentrated on protecting and extending the right supply conditions and target a significant, differentiating degree of market share in order to leverage network effects and virtuous benefits of scale. To further drive the leadership, it seriously considered diversifying in portfolio services and markets by focusing on higher value and more complex services including: (i) software development and IT services, (ii) animation, (iii) game development, (iv) healthcare information management outsourcing, (v) legal, financial and accounting services, and HR among others.

B. The IT–BPM Talent Challenge

The single, most important issue facing the industry that will impact on the success of the IT–BPM sector in sustaining its growth is the availability of qualified talent. For the period 2007-2011 alone, the IT–BPM workforce grew at an annual average of 23% making the industry the largest private sector new-job creator.

Historically, talent supply in the industry was in excess of demand. There exists a steady pipeline of talent in the educational system that is sufficient to support growth of about 15% annually with approximately 480,000 new tertiary graduates. However, since 2010, demand has consistently outpaced supply given the faster growth being experienced by the industry. In the International IT-BMP Summit held on 13-14 October 2014, participant CEOs confirm that talent continues to be the number one issue that needs to addressed for their firms to meet their targets in the next two years. Figure 2 shows the widening talent demand-supply gap for the IT–BPM industry.

Figure 2: Projected talent demand-supply gap for the IT–BPM industry

2016 Talent requirement with reverse the current demand-supply situation by 2012-2013

In addition, the recruitment funnel has also been a challenge. For every 100 applicants that are screened, only 5-8% actually qualify and are hired. Many college graduates lack proficiencies in English, Math, Science and Technology, and Service Culture – which are 7

needed by the industry. Low IT literacy and poor access to computers of the larger segment of the population also hinder the development of suitable talent for the IT–BPM industry.

With limited supply of talent, stiff competition among outsourcing suppliers and clients alike has led to high attrition rates and, consequently, increased spending on recruitment and training. IT–BPO companies are providing education and training to their prospective employees, which increases overhead costs and creates disincentives. In addition, there are not enough mid-level managers and senior executives within the industry to lead the large pools of young employees. Another challenge facing the IT–BPM sector is the weak university-industry linkage. Programs of HEIs are not directly related or complementary to the IT–BPM industry.

The IBPAP Roadmap identified five complementary efforts to deliver the additional 300,000 to 600,000 full time employees (FTE) that the industry needs to grow faster:

(i) developing a comprehensive assessment and training program; (ii) creating awareness of career opportunities; (iii) training alternative talent pool; (iv) helping students to continue to fund their education; and (v) working with the education sector to find ways to make college and high school curricula more directly related or complementary to the ITBPM industry.

IBPAP and the different government education sector agencies have partnered in implementing traditional talent development initiatives, including the Service Management Program (SMP) as a foundation course, aimed both at increasing the quantity and addressing the quality of the graduates. While many concrete gains have been achieved by these projects at this time, there remain many critical gaps and constraints that have yet to be adequately addressed and many new ones are emerging. Moreover, as the BPM global composition becomes more and more diverse, the demand for more complex and emerging services is putting additional pressure on the skills requirements on talent. As a result, many small and medium BPO firms who wish to participate in the IT–BPM sector are being constrained by their ability to invest in training programs that will allow them to scale-up and compete with the multinational BPOs who already have established training programs and a well-developed talent pool.

The country’s educational institutions that are well aware of the industry’s requirements continue not to be able to provide a suitable number of qualified graduates to meet the demand. Despite the creation of CHED Memorandum Orders number 6 and number 34 in 2012 that institutionalizes the SMP in its BA and IT Programs as a minor track, various conditions and issues including policy, teacher capability and lack of adequate physical IT infrastructure continue to be cited by the school as part of the challenges that need to be overcome before they can fully contribute to addressing these talent gaps.

The industry’s current focus has been primarily in the areas around Metro Manila and the National Capital Region (NCR) and a few key cities such as Angeles, Bacolod and Cebu. IBPAP estimates that approximately 70% of IT–BPM jobs are currently located in these areas while 70% of the tertiary schools and graduates are located in other regions outside these areas. This inverse relationship of jobs and graduate locations is limiting the universe of talent, space and infrastructure, and creating pressure on costs. The development of the Next Wave Cities (NWC) as alternative locations is IBPAP’s strategy that will make

accessible to the IT–BPM industry the larger number of graduates from tertiary education that are located in these areas.

C. IBPAP’s Talent Development Framework

IBPAP plays a critical role in driving successful talent intervention programs in the industry. It leads major talent projects and programs and is the interface of the sector with government and multilateral and bilateral development agencies.

The IBPAP Talent Development Framework utilizes an integrated approach with objectives that progressively lead to expanding the talent pool and addressing the talent supply gap primarily through public-private partnerships (PPP). It is designed to improve the flow of talent to the industry by finding solutions to a number of root causes that are lowering talent availability, impairing sustainability and willingness to work in the industry and limiting access to talent pools outside the NCR. The framework is also anchored on the five factors that drive recruitment in the industry namely, availability, suitability, willingness, accessibility and “stickiness.”

The Talent Development Framework is anchored on the IT–BPM sector 2012-2016 Roadmap and is designed to (i) attract and train up to 1.1 million potential employees by 2016; and (ii) make the IT–BPM careers aspirational. Figure 3 below shows the IT-BPAP’s conceptual framework for developing its talent pool.

Figure 3: The IT–BPM Learning Journey

The framework recognizes that learning is a journey over a period of time. It defines the process, courses and providers that may direct one’s career path in the different IT–BPM sub-sectors from entry level position through mid-level managerial or supervisory career paths. Foundational capabilities that include communication skills, critical thinking and a 9

strong service orientation form the base “building blocks” for joining the industry. These skills are then complemented by domain specialization including technology familiarization that is provided by the HEIs, state universities and colleges (SUC) and other training institutions. IT–BPM industry specific and work-related skills are then incorporated to form the third level capacity that provides an orientation to the industry, its distinct features and the required work ethics that will enable the talent to effectively contribute to the industry and build a sustainable career. Continuous learning programs are provided by the employer’s in-house learning and development programs to further increase efficiency and support career development.

At the heart of this framework is the focus for specialization, innovation and sustainability that is required to drive performance and increase the capacity of the employee to add value in a highly competitive industry like the IT–BPM industry. These themes will also address low hiring and high turnover rates.

The Service Management Program (SMP) and the eSMP courses have been identified in the IBPAP Talent Development Framework as the fundamental course for entry into the IT– BPM sector. These courses are designed to strengthen or develop key skillsets, namely, communication skills, service culture, systems thinking, basic industry knowledge and processes and build competencies in perceptual speed and accuracy, English proficiency (including workplace English), computer literacy, service orientation and learning ability.

As a foundation course, SMP/eSMP may be accessed using different modalities at different stages of the potential talent pool’s learning and career journey as illustrated in Figure 4.

Figure 4: SMP/eSMP Implementations Framework

III. A NEW TALENT DEVELOPMENT STRATEGY TO SUSTAIN TALENT GROWTH: THE KNOWLEDGE HUB

One of the solutions that have been identified to holistically address the skills shortage and support inclusive growth is a formally organized mechanism such as the Knowledge Hub. The KH will create an institutional framework for continuously designing, testing and rolling out talent programs and make available to various stakeholders industry information or data including employment opportunities and research results and development. The KH can bridge the different industry talent development stakeholders and in the process minimize the constraints brought about by distance, access and resource requirements. The establishment of the KH is also expected to dramatically align the higher education curriculum with both international standards and labor demand, provide access to IT–BPM knowledge resources and build on public-private initiatives.

A knowledge hub is defined as an institution, entity, or group that operates in a knowledge domain or activity and whose excellence is recognized by those who engage with or are supported by it. The ultimate objective of the knowledge hub is to make information available to those who need it at the time they need it. Both a virtual and physical (brick- and-mortar) knowledge hub may be developed and operationalized for this purpose. From the point of view of development practitioners a knowledge hub has been defined as “an organization, or part of an organization, dedicated to sharing and exchanging development experiences and models.”4 Development practitioners also use the term “Knowledge Hub” to refer to networks that “facilitate information exchange toward practice-related goals.”5

From the point of view of development practitioners a knowledge hub has been defined as “an organization, or part of an organization, dedicated to sharing and exchanging development experiences and models.”6 Development practitioners use the term “Knowledge Hub” to refer to networks that “facilitate information exchange toward practice- related goals.”7 Information exchange here specifically refers to knowledge exchange for the purpose of achieving a development goal, to inform development policies and practices.

In the field of management, the sharing of information among partners for the purpose of pursuing a common goal has also been present in the literature on organizational change. Here the term “communities of practice” has been used to refer to “groups of people informally bound together by shared expertise and passion for a joint enterprise” where “people…share their experiences and knowledge in free-flowing, creative ways that foster new approaches to problems”. As a change management strategy, “communities of practice can drive strategy, generate new lines of business, solve problems, promote the spread of best practices, develop people’s professional skills, and help companies recruit and retain talent.”8 Communities of practice, voluntary in nature, can be particularly well suited to coming up with innovative solutions to problems.

4 Choesni, T. A. and Schulz, N. Knowledge Hubs Progress in Practice since the Bali Communiqú, p. 83. http://jicari.jica.go.jp/publication/assets/040_Chapter4.pdf, http://wbi.worldbank.org/sske/sske/knowledge_hub 5 ADB. 2008. Creating and Running Partnerships Manila. http:// www.adb.org/Documents/Information/Knowledge- Solutions/Creating-Running- Partnerships.pdf 6 footnote 4. 7 footnote 5. 8 Wenger, E.C. and Snyder, W.M. 2000. Communities of Practice: The Organizational Frontier. Harvard Business Review. 11

IV. KH BEST PRACTICES AND MODELS IN OTHER COUNTRIES AND SECTORS

Table 1 summarizes different models and typologies of KHs and networks found around the world.

Table 1: Typology based on formality and obligations of the partners Formal, between organizations Strategic In the private sector, these alliances are “long-term purposeful arrangements among Alliances distinct but related organizations that allow those firms to gain or sustain competitive advantage.” In the public or nonprofit sector, a strategic alliance is established for a value exchange between the partners, governed typically under the terms of a Memorandum of Understanding. ADB describes these as voluntary formal arrangements between two or more entities with a common set of objectives to meet critical needs, which pool resources while remaining independent. Public- Contracts between a private sector entity and the government, where the private private partner delivers a desired service and assumes the associated risks. In return, the partnerships private partner receives payment according to criteria specified in the contract and assumes the financial and administrative burden of providing the service, while the government regulates and monitors performance.* Tri-sector or This type of partnership consists of private investment, public objectives, and cross-sector community participation.* partnerships Less formal, between organizations Knowledge Knowledge networks among institutions focus in strengthening the sharing of networks knowledge and generating new knowledge to have greater influence on policies and practices outside the network. The knowledge is for use beyond the network; the network is purpose driven, to create knowledge for application; and often time bound, in setting and achieving goals and objectives. “Formal” knowledge networks have a greater degree of structure, bringing together expert institutions for more specific research tasks, but retaining the focus on promoting the findings for use beyond the network members. Less formal, between individuals Open source These communities are purpose driven in the development and testing of new ideas. development They are open in that anyone wishing to contribute to the purpose can join; communities structured in the expectation that members will contribute actively to the purpose, with dedicated monitoring and reviewing of those contributions by the originators of the community; and hierarchical in that the endorsement and adoption of new ideas is through the inner circle of the original creators of the community. They are prone to regular branching off to new communities when the ideas are not endorsed or adopted. Network of These networks bring together individuals rather than organizations; the invitation to experts join is based on expertise in a particular area. Their purpose can be either advisory or focused in research and problem solving. Communities Two or more individuals can create a community of practice for conversation and of practice information exchange, possibly even leading to the development of new ideas and processes. Participation is purely voluntary and will wax and wane with the level of interests of the participants. Communities of practice can exist within an organization, or be independent of any organization; they can be face-to-face in person or virtual/online.

Table 1: Typology based on formality and obligations of the partners Less formal, between individuals Communities These are more loosely knit communities built around common characteristics or of interest shared interests (youth activism, hobbies, etc.). Participation is purely voluntary and will wax and wane with the level of interest of the participants. Information These networks provide access to information supplied by network members, networks and occasionally with overlays of interpretative materials that organize content portals thematically. However, they are fundamentally passive in nature. Users must come to the network-physically or electronically- to benefit from the work of the network.

Several processes are identified as standard in knowledge management practice and represent the breadth of activities that may be included in the IT–BPM Knowledge Hub. These key knowledge processes are:

(i) knowledge mapping or the process of identifying knowledge needs and gaps, and sourcing knowledge accordingly; (ii) generating or creating knowledge through original research and through refining, testing, and implementing new applications of existing knowledge; (iii) storing and retrieving knowledge through appropriate information systems and protocols; (iv) sharing and applying knowledge through interactions with other stakeholders and broader communities of interest; and (v) engaging in cycles of learning and reflection leads to adaptation and progress against given objectives.9

Hundreds of knowledge hubs or networks are used globally in many different sectors and for many different reasons. Governments invest in dedicated institutional and operational arrangements for peer-to-peer learning–what pitfalls to avoid, what practices to adopt. For many countries, sharing their knowledge and experience, especially those with interesting development experiences, is a way to develop meaningful international partnerships. As demand for the exchange of practical development experiences grows, countries are seeking better, more predictable ways to connect and scale up their knowledge sharing. In the private sector, knowledge hubs or portals are used to support different part of operations to disseminate information, quality standards, do knowledge transfers and training, communicate needs and issues, and announce employment opportunities that covers human resources, technology, customers, suppliers, community, and civil society groups.

International organizations, including multilateral and bilateral agencies operating in many countries use knowledge hubs to drive all kinds of innovative changes, support disaster relief and rehabilitation programs and share development best practices and experiences among others. Professional organizations or bodies also serve as knowledge hubs to service their members and stakeholders–to provide continuing education, certification and accreditation, disseminate information, research results, employment opportunities and other information relevant to their community of practitioners. A list of the knowledge hubs reviewed under this project are presented in Appendix 1

9 footnote 5. 13

Many best practices have been noted in the operation and management of knowledge hubs including the following:

(i) Hub partners commit to exercise leadership, engage in a long-term relationship and identify clear directions toward the realization of goals. (ii) Organizational partners involved in operating or managing the hubs recognize shared responsibilities and agree that, within their organization, people will devout a significant amount of time and energy to the operation of the hub. (iii) Organizational roles and accountability structures are clear and committed to. (iv) Partners share scarce but adequate resources including physical facilities, equipment, talent and knowledge. (v) Partners acknowledge that the hub and any of its talent programs cannot jeopardize academic freedom nor can the participants disregard the commercial prospects. (vi) Partners recognize that their commitment and participation in the hub will translate into a set of shared responsibilities that they need to execute and be accountable for. (vii) The use of appropriate information and communication technology is a key factor for the success of the hub. (viii) Sustainability for the hub must be clearly defined at the start. Partners must be willing to provide or ensure long-term support. One underlying factor that will contribute to its sustainability is the mutual benefits that all partners will derive from this undertaking.

V. PHILIPPINE GOVERNMENT SUPPORT FOR THE IT–BPM SECTOR AND E-LEARNING

The Philippines needs to improve its overall competitiveness by prioritizing sectors where the country has competitive advantages, while ensuring a reliable labor supply chain. Studies indicate that with its position within the Association of Southeast Asian Nations (ASEAN), its large, young, and well-educated workforce, and improved access to fast- growing markets, the Philippines is well situated to attract large investments that can generate significant number of new high-quality jobs in key sectors such as information technology (IT) and business process outsourcing (BPO). The Philippine Medium Term Development Plan and the Philippine Digital Strategy both aim to support a globally competitive service sector. Government is strengthening its system of education to meet the labor demands of innovative and growing industries such as the IT–BPM sector. In particular, it continues to implement programs such as the Commission on Higher Education (CHED) Developing State University and College Graduates Towards Global Competitiveness, National Productivity and Development Project, and the Technical Education and Skills Development Authority (TESDA) Industry Based Training for Work Scholarship Program (ITWSP) that are designed to provide market responsive education and training and ensuring that the supply side of the labor equation is addressed through quality education/training and effective assessment and certification system. The Department of Education (DepED) is implementing a major educational reform program under the K-12 Program that will include courses in service management for grades 11 and 12. The DOST-ICTO is also assisting the IT-BMP sector through a number of policy, advocacy and coordination initiatives including talent development.

Congress is also seriously looking at what policies need to be put in place to contribute to the administration’s vision of inclusive national economic growth and development by producing qualified and competent human resource needed by priority growth sectors such as the business processing outsourcing (BPO) industry. At least nine bills have been consolidated into what is now House Bill 4553 that seeks to expand access to educational services by institutionalizing open distance learning in higher education. House Bill 4553 when passed into law will institutionalize distance education as a system of delivering quality higher educational services in the country. In this proposed law, UPOU will be able to provide expertise to CHED in the development of open learning and distance education expertise in the country and in the appropriate use of information and communications technologies in support of quality higher education and allow UPOU to design model curricular programs, which shall serve as prototypes for similar programs to be offered by other HEIs, among others. 15

VI. THE PROPOSED IT–BPM KNOWLEDGE HUB

The IT–BPM Knowledge Hub aims to support the following government, academic, IBPAP and IT–BPM sector goals and initiatives:

(i) address the skills shortage in the IT–BPM industry; (ii) serve as the gateway for knowledge sharing and networking among industry members and other stakeholders; (iii) enable Public-Private Partnerships (PPP) for talent development; (iv) build and sustain industry-academe partnerships; (v) promote industry growth; (vi) reform initiatives in the higher education systems and programs to produce suitable graduates to meet the labor demands of high growth industries such as IT–BPM industry; and (vii) expand reach and scale IBPAP’s talent development programs.

The IT–BPM Knowledge Hub seeks to support improvement in the alignment of higher education with the needs of the economy. It will have a central role to play specifically in driving the continuous process for generating and implementing talent development programs and courses. The expected KH key specific outputs are increased access to knowledge resources for the IT–BPM designed courses, enhanced higher education curricula and instruction, and strengthened partnership between industries and academic institutions. The long term impact becomes tangible through a replicable and sustainable system of ICT-enabled knowledge hubs for the improved teaching and learning of IT–BPM industry designed curricula in HEIs.

The IT–BPM Knowledge Hub is intended to house developed industry-designed courses and industry assessment tools including a middle management and leadership program that will be utilized by all HEIs and training institutions. The Knowledge Hub will also initiate international and national twinning arrangements and support stronger industry-academe linkages. These activities collectively aim to scale up the deployment of cost-effective models for strengthening and delivering HEI programs, improving the flow of talent to the industry, sustaining Knowledge Hub activities and substantially contribute to addressing industry demand for talent.

A. Mission/Purpose

The specific roles of the proposed knowledge hub for the IT–BPM industry are:

(i) Provide opportunity for business, employment, education, and training to industry member organizations, partners, prospective and current industry talents, and other stakeholders

a. Employment, education, and training information to job seekers and/or learners intending to work in the IT–BPM industry b. Serve as a key database for candidate or potential employees information to potential employers c. Be a key touch point or source of reliable information for prospective enrollees (or learners) data or statistics to IBPAP training partners and institutions

d. Be a source of local business opportunities from prospective clients of industry to industry members and partners e. Serve as a source and repository for related IT–BPM programs and industry information (e.g. company profiles, accreditations, certifications, research outcomes) to potential and current talents, employers, and other stakeholders

(ii) Direct prospective talents to prospective employers

(iii) Direct prospective and existing talents to educational and training programs and providers

(iv) Provide assessment, certifications, and accreditation services to talents, industry members and partners

(v) Develop prospective and current talents’ potentials into purposeful and rewarding careers

(vi) Promote the services of industry members and partners to the global and local business community

(vii) Support the advocacy campaign of the IT–BPM sector particularly as it relates to IT–BPM career development, K-12 and its other talent development programs

B. Knowledge Hub Building Blocks

To achieve its mission, the following building blocks need to be developed to provide the backbone of the knowledge hub:

(i) Member’s Competency Promotion Mechanism

This pertains to the identification and development of strategies, policies and procedures on how industry members’ competency will be marketed to attract potential clients. This will feed into the development and operation for opportunity matching.

(ii) Assessment, Certification, and Accreditation Delivery Mechanism

This pertains to definition, identification, and/or development of standards and tools for assessment, certification, and accreditation of industry members (e.g. industry ratings and service competencies), potential and current industry talents (e.g. skill levels, aptitudes, knowledge, and employability), and industry partners (e.g. service competencies and ratings). This will include the design of strategies, policies, procedures, and technology pertaining to assessment, certification, and accreditation. This mechanism will feed into the development and operation for opportunity matching.

(iii) Curriculum Development Mechanism

This pertains to the identification and development of required general and specific curriculum for each industry group (e.g. ITO, Contact Centers, Animation and Game Development, Knowledge Process Outsourcing (KPO), Healthcare, Engineering, GIC), its contents, and delivery using traditional and virtual approaches. This will include the design of strategies, policies, procedures and technology pertaining to curriculum development and maintenance, including the management and operation of the community of practice (COP) teams for each of the industry group to provide key inputs into courseware development and versioning. This mechanism will feed into the development and operation for both opportunity matching and talent development.

(iv) Opportunity Matching Mechanism

This pertains to the identification and development of strategies, policies, procedures, rules, and technology for acquiring and matching opportunity with competency of industry members and partners, potential and current talents. Opportunities will include, but is not limited to, business, employment, career advancement, education and training.

(v) Talent Development Mechanism

This pertains to the identification and development of strategies, policies, procedures, and technology for developing, managing and retaining industry talents to support career entry, shifting, and advancement opportunities. Approaches will include traditional and online degree and diploma programs for curriculum-based and specialized education and trainings, extending to cross- functional and re-tooling programs. It will also provide career monitoring and employment tracking mechanisms for industry talents. This activity will be done in support to the IBPAP Talent Development Program.

(vi) Industry Knowledge Management Mechanism

This pertains to the identification and development of strategies, policies, procedures, researches and technology for the acquisition, capture, storage, retrieval, and sharing of knowledge in each of the industry groups. This mechanism will feed into the development and operation for curriculum development.

C. The Knowledge Hub Business Model

Based on the consultation, researches, the analysis of stakeholder benefits and costs, formulated concepts, and moving beyond its traditional objectives, a business model and value proposition chart is being presented to form part of the KH overall business strategy. The discussion below is intended to establish its position of value, identify potential revenues and benefits associated with the delivery of the KH “products or services”, geographical coverage, partners as well as the related costs. It will also help identify the economic risks associated within its “ecosystem”.

(i) Key Business Model Design Principles

a. Global Access – The KH can be accessed worldwide particularly by OFWs who are looking for opportunities in the IT–BPM sector or those who are wanting to return and establish a career in the Philippines. It must also be accessible to IT–BPM headquarters firms and stakeholders who may wish to directly participate in KH activities. b. Self-sustaining – The KH will generate sufficient financial resources from its activities to sustain and grow its operations. It will charge membership fees to recover costs, not to make profit. It is also envisioned to be a recipient of multilateral, bilateral funding and research grants. c. Well resourced – The KH must have the capacity to provide the leadership on strategy or on shaping the KH agenda for talent development delivery and driving deployment of IT–BPM courses. It should also be able to successfully deliver talent initiatives, develop a coherent organization and governance structure, clear service lines and ensure a viable funding mechanism. d. Collaborative – The KH must serve as a catalyst to the different stakeholders to address talent supply-demand issues and build strong industry-academe partnerships. It must improve the level of cooperation and participation among the different stakeholders and more importantly engage these stakeholders so that they can deliver tangible results that will contribute to the achievement of the KH goals. e. Stakeholders participate because of perceived value – Demand for the services of the KH is dependent on the kind of services and “products” that it will offer. The more quality and useful services, information, training, research data etc., is made available in the KH, the more members it will generate. The more quality information is provided, the more active the stakeholders are in participating in the KH. f. Membership based (whether corporate or individual) – This structure will be critical for the sustainability of the KH. It will also ensure fair distribution of rights and responsibilities among the stakeholders g. Online & Blended IT–BPM training programs available – The KH will be the main source of IT–BPM online and blended training content. It will include SMP, eSMP, BEST, AdEPT, GCAT and all other courses and programs that are still being developed.

(ii) Business Model Canvas and Value Proposition

The Business Model Canvass in Figure 5 was developed to define the KH business model.

Figure 5: Business Model Canvas KP KA VP CR CS Key Partner Key Activities Value Proposition Customer Relationship Customer Segments  Academe – DepEd,  Training  Access to Industry  Career Marketing to  Student members, CHED, TESDA, HEIs,  Marketing information, government students, influencers Career shifters, OFWs SUCs, TVIs  Advocacy agency partners and  Scholarships for interested in an IT-BPM  Industry  Research relevant legislation, teachers/trainers career Firms/Employers,  Resource sharing roadmap and thought  Training programs,  Teachers/trainers Homegrown SMEs,  Recruiting leadership course access, wanting to upskill to Multinationals  Courseware  Access to Training and certifications include IT-BPM skillsets  IT-BPM Industry maintenance and Employment  Interviews, Internship  Corporate members Associations/NGOs versioning opportunities, company coordination, and sector  HEI/SUC/TVI members  IT-BPM Recruitment  Accreditation & specific information, employment readiness  Local Communities/Civil Companies Assessment career paths Society  NG and LGUs,  Access to Recruitment, Policymakers with IT- marketing channel, BPM specific agendas PPP, Investor  Multilaterals/Bilaterals opportunities looking for IT-BPM  Sustainable partnership exposure agreements, PPP KR CH Key Resources Channel  Academe partnered  HEIs and SUCs with Industry direct – classrooms - partnered Internships and OJT with Industry firms  Contracts with  MoDEL Subscriber career  Subscriber career portals, recruitment portals firms  Contracts with enablers and training vendors

(iii) Service Lines:

a. Offer/Deliver IT–BPM training Programs (SMP, eSMP, BEST, AdEPT and any other programs that may be developed); b. Certify or accredit those students who have successfully completed the training courses; c. Conduct the accreditation test and serve as an accreditation testing site for the IT–BPM industry; d. Be a repository and source of industry training and IT–BPM employment related information, IT–BPM research and resource materials for its stakeholders; e. Facilitate internships with industry firms; f. Develop and host the Community of Practice for the IT–BPM; and g. Serve as the link between potential employers and those who qualify and are interested to join the IT–BPM industry

Figure 6 shows the relationships and interdependencies of the different value proposition and other variables and their impact on stakeholder roles.

Figure 6: KH Interdependencies

(iv) KH Network Functionality and Flow

The KH will succeed only if all stakeholders are involved and provide support in multiple areas. The KH will leverage the resources and expertise of its stakeholders, including IBPAP, national government, civil society organizations (CSO), and local governments. It will drive talent development programs that it hosts, effectively facilitate, support and implement initiatives in designated IBPAP talent development related activities such as accreditation; and provide leadership with its different stakeholder groups to make sure that they are able to contribute effectively towards increasing and retaining the industry talent pool. It will utilize different formal and informal contractual mechanisms described in Chapter III that may be appropriate including building strategic alliances with schools, facilitating public-private partnerships between industry firms and schools, tri-sector or cross sector partnerships among local CSOs and local government etc.

The key KH functionality that will materially make a huge difference in sustaining the relative competitive advantage of the Philippines’ IT–BPM sector will be its ability to ensure alignment of the talent supply side to industry so that qualified graduate continuously feed into the IT–BPM firms (demand side). It will use the Hub and Spoke model for building the different mechanisms as it sees fit. Figure 7 shows the envisioned main KH process flow from the supply side (education) to the demand (employment) side for Talent Development Management.

Figure 7: KH Network Functionality and Flow

(v) Organizational Structure - Internal

For the KH to provide its users vital services and deliver its value proposition discussed above, it needs to be managed by a professional, highly competent, objective organization that has dedicated full-time staff. There will be teams responsible for the five key service lines: (i) Membership, (ii) Certification, Assessment and Accreditation, (iii) Curriculum Enhancement and Development, (iv) Career Opportunity Matching, and (v) Talent Development, Management, Monitoring and Career Tracking. The KH will be supported by a lean team for Finance and Shared Services, Technical Support, Industry Talent Development Relations and Research under the office of an Executive Director. The internal functional chart in Figure 8 outlines the flow of accountability and functional roles of each unit. The functions of each unit directly support the building blocks roles described in chapter V section B.

Figure 8: KH Functional Chart

(vi) Governance Structure

The KH is seen as a collaborative initiative among many stakeholders. Thus, at the governance level, it must maximize the level of collaboration and coordination among industry (and sub-industry) associations, industry players, academe and academe related institutions, government, professional organizations and other stakeholders. Along these lines, the KH will be guided initially by a Steering Committee which can shift to a more traditional governance body (e.g., Board of Trustees). It is expected that the role of the governing body will shift from a developmental role at the early stages to a more strategic and performance driven one as hub takes off.

Whichever structure the governance body takes, it is important that the composition of the governance body ensures a strong IT–BPM industry representation and leadership. Further, it should include adequate representation from among its various stakeholders, including academe and the government

education sectors. That being said, the governing body should remain small in order to facilitate decision making, particularly during the setting up stage of the KH. In addition, the governing body should constitute working committees to better oversee the performance of the KH (e.g., audit, quality assurance).

Figure 9: Governance Structure

(vii) Revenue and Budget Model

The KH will have a membership base open to all industry players and non-industry players who contribute to the development of the IT–BPM industry. The membership model is designed to draw contributions from members depending on the value that each member is able to derive or the ability of the member to contribute or both. It will adopt a tiered membership model based on the category of membership.

a. Industry players will be charged a tiered fixed annual membership fee with corresponding “rights” or access to specific “products” e.g. access to the KH data base for graduating students that they can use for employment or access to schools offering SMP/eSMP and school information on these courses. b. Students, graduates and communities of practitioners who wish to access the KH courses or are enrolled in these courses, want to be updated on IT– BPM information and research or wish to stay in touch with the industry practitioners will be charged a membership fee to avail of services (e.g., employment possibilities, use of physical facilities etc.) c. Academic Institutions, CSOs, Industry Associations, sub-industries and similar organizations, providers and enablers who are interested to participate, engage or collaborate in certain activities of the KH.

In addition to membership, the KH will also derive revenues for specific products and services such as those for conducting certification or assessment, administration of the GCAT tool, tuition fees for SMP classes and other IT–BPM course that it will conduct, research output materials, job matching fees etc. It will also look at soliciting sponsorships, grants and donations to fund some of its development oriented initiatives and scholarships.

While the KH may be part of a much larger organization or academic endeavor or an independent organization e.g., an NGO, it is expected that resources still need to be made available for it to operate. The KH will require financial resources to cover organizational or set-up costs and operational/administrative costs. It is estimated that the KH will require a one-time PHP 10 million for its organizational costs (for cost of equipment, facility, office furniture etc.). It will require another PHP 8 million annually for its operational/administrative costs, including salaries and benefits, project costs, marketing, research, utilities and communication costs.10

10 Cost figures are based on the IBPAP set up and operating costs.

VII. BUILDING THE KNOWLEDGE HUB

A. Design Considerations and Assumptions

The following principles and assumptions were used in formulating the IT–BPM industry knowledge hub roadmap:

(i) Continuity of Programs

IBPAP has the SMP/eSMP course in its pilot deployment stage. The learning and experience gained in its initial deployment are used as a foundation for the proposed knowledge hub.

The online Service Management Program (eSMP) project will provide the base virtual knowledge hub model, which has the following key components:

a. The IBPAP website as the industry touch point for the eSMP portal; b. The eSMP portal, which is currently under development, and the UPOU portal will provide access to learners for the online SMP course; c. The online SMP course will adopt the UPOU model as the SMP course delivery mechanism; and d. Two portals will be linked to provide the employment channel: a freelancer work portal and a subscriber career portal.

The Service Management Program (SMP), on the other hand, will provide the base physical (brick-and mortar) knowledge hub model. Under this model, IBPAP works with third party providers (e.g. SUC and HEI) for the supply of learners. While basically following a traditional brick-and-mortar approach, it may also deliver eSMP courses which is the online (or virtual) version.

Employment channels in both models will be provided via a third-party job matching providers or directly with identified industry partners through Industry- academe partnerships.

SMP and eSMP are assumed to be the base programs and models upon which the proposed knowledge hub will be developed. Both programs are assumed to be the foundation curriculum program in the industry. Thus, the proposed knowledge hub project will start as a more powerful and extensive version of SMP/eSMP.

(ii) Sustainability of Program

The knowledge hub project is assumed to have the full support of the industry member firms and partners–from conceptual, to operational, to maintenance and management stages of the project; including the provision for logistics and financial support. It is assumed to have a business model that will generate financial support through membership, subsidies, subscription, and grants.

The physical (brick-and-mortar) knowledge hub is assumed to develop its own business models, to generate its financial revenues, above and beyond subscription and grant supports. IBPAP may consider developing a franchising model for it.

(iii) Replicability/Scalability of the Program

The knowledge hub processes and contents will be designed to be scalable and adaptable for the teaching and learning of IT-BPO knowledge areas across HEIs and accessible to its different stakeholders globally.

a. Public-Private Partnership

IBPAP has piloted a number of public-private partnership models under its existing projects. This paper assumes that some of these pilot models will be replicated and others will be modified or enhanced depending on the partners and the nature of their involvement in the hub. The PPP model is organized along a continuum between public and private nodes and needs as they integrate normative, albeit separate and distinct, functions for the industry without diminishing either sector. Multisectoral, or collaborative, partnering is experienced on a continuum of private to public in varying degrees of implementation according to the need, time restraints, and the issue at hand. The unified partnership has immediate impact in the development of communities and the provision of public services.

b. Iterative, Incremental, Integrated, and Parallel Development

An iterative, incremental and integrated development, which pursues phases and develops “building blocks” rather than one-time delivery of service features over time, is assumed in the roadmap. This has the advantage of realizing benefits and institutionalizing mechanism faster as well as minimizing failure risks than if all features will be collectively delivered at the end of each project phase.

Given that there are several industry sub-groups to be served, it is assumed that a parallel development will best serve their interests, compared to a sequential, prioritized basis. This will also have the advantage of realizing benefits faster for each industry sub-group and building a broader intranet of stakeholders, rather than being dependent on each sub-group whose interests may differ from each other.

B. KH Development Phases

The KH will develop a range of information and development services to help the IT–BPM sector manage and attain its growth targets. For the KH to be effective in its role, it needs to systematically build its capacity, create critical information services and training programs, build and sustain its network of stakeholders and institutionalize its activities within the IT–BPM and academe sectors. This section establishes a blueprint of the key stages and outputs that will guide the development and operation of the KH.

The proposed roadmap identifies four key phases: Organizational, Developmental, Operational, and Innovational. Figure 10 shows the conceptual Gantt chart for the proposed implementation, where certain phases may be performed in parallel with incremental and integrated delivery to address both the common and specific platforms to

all industry sub-groups. The developmental stage may be implemented concurrently after a commitment has been obtained from each of the industry sub-groups (e.g. ACPI, CCAP, GDAP, HIMOAP, and PSIA) and the organization of the KH Management Office (MO). The charts below detail the specific activities and milestone outputs for each of the phases

Figure 10: Conceptual Gantt Chart

(i) Organizational Phase

Activities Descriptions Output Milestone 1. Secure  Secure commitment to project from  MOA or similar form Commitment industry members from Members signed  Secure commitment for investments  MOA or multilateral  Secure agreements with potential agreements for Hubs/Spokes Investments signed 2. Organize and  Organize IBPAP PMO that will provide  KH leadership & staff Set up the KH governance function to project identified and hired Management  Formation of Project Teams and  KH Management Office Office Leadership set up  Staffing PMO and Teams  KH management &  Design of standardized program and program systems management processes designed and developed. 3. Prepare  Confirm the strategic direction defined  Strategic Plan and Strategic in the roadmap and prepare the 2015 workplan drafted Direction & workplan and presented to Workplan  Prepare a marketing plan that is Board for approval aligned to the IBPAP career  Finalized marketing development plan plan/campaign ready  Identify work packages; financial for implementation requirements & budgets for the next two years; identify risks 4. Service Provider  Selection of Service Providers for  Service provider for Selections Virtual Knowledge Hub (portal site virtual & brick & mortar design, development, and operators) KH identified and MOA  Selection of Service Providers for signed Physical (brick-and-mortar) Knowledge Hub (physical site design and development, and operators) 5. Selection and  Creation of Community of Practice  Identified curriculum Formation of (COP) group for each industry group, and content Content who will provide knowledge content for development service Providers curriculum development providers  Identify curriculum and content development service providers

(ii) Developmental Phase

Activities Descriptions Output Milestone 1. Business  Design of processes for the following  Consultation sessions Process Design (for each industry group) : with industry • Assessment, Accreditation, and experts/IBPAP talent Certifications dev. committees • Curriculum Design, Development, conducted and Delivery  Business Processes • Industry Knowledge Acquisition, defined and agreed Storage, Retrieval, and Sharing upon with Industry & • Talent Development academe • Opportunity Matching  Business Processes • Competency Promotion adopted and  Design of an integrated business operationalized process for the knowledge hub  Increased student  Design of physical (brick-and-mortar) awareness of the KH knowledge hub business process and and the IT-BMP career operations opportunities  Launch marketing campaign  Increased stakeholder awareness and involvement in the hub. 2. Curriculum  Identification of required curriculum (for  Approved and Content Design each industry group) deployable curriculum, and  Assist IBPAP in Design of contents by content, and course Development COP (for each industry group) materials (with delivery  Assist IBPAP in Design and approach for traditional development of course materials classroom training)  Assist IBPAP in Design and development of course delivery methods for traditional classroom- based training 3. Virtual  Commissioning of selected provider for  Shortlist of potential Knowledge Hub virtual knowledge hub portal design and KHs Portal Design development (for each industry group)  Signed MOAs w/ KH and  Design and development of selected  Approved and Development virtual knowledge hub portal (for each deployable virtual industry group) knowledge hub portal  Update of Industry Touch Point portal (IBPAP website) 4. Physical (brick-  Selection of pilot site location  Shortlist of potential and-mortar)  Commissioning of selected provider for KHs Knowledge Hub physical knowledge hub site design  Signed MOAs w/ KH Portal Design  Commissioning of pilot site operator  Approved and operable and development  Design of selected pilot site pilot brick-and-mortar  Development (i.e. construction) of pilot knowledge hub site location

(iii) Operational Phase

Activities Descriptions Output Milestone 1. Deployment of  Selection of curriculum service  Commissioned and Approved providers (HEI, SUC, and others) operational physical Curriculum  Train-the-Teachers (T3) program rollout knowledge hub for new curriculum operations  Course delivery to learners  Operational T3  T3 program, curriculum and course program, curriculum, delivery reviews and course delivery  Inspection and Adaptation of T3  Marketing Plan/Career program, curriculum and course Development Program delivery implemented in conjunction with IBPAP and HEIs 2. Deployment of  Commissioning of Virtual Knowledge  Commissioned and Virtual Hub operators operational virtual Knowledge Hub  Transition of Virtual Knowledge Hub to knowledge hub commissioned operators operation  Commissioning of Virtual Knowledge  Marketing Plan/Career Hub Development Program  Virtual Knowledge Hub Operations implemented in review conjunction with IBPAP  Inspection and Adaptation of Virtual and HEIs Knowledge Hub operations  eSMP courses offered  Teachers/Students trained in eSMP  Membership base reaches 100,000 after 12 months of operation 3. Deployment of  Commissioning of Physical Knowledge  Commissioned and Physical (Brick- Hub pilot site operator operational physical and-Mortar)  Commissioning of Physical Knowledge knowledge hub Knowledge Hub Hub pilot site location operations  Physical Knowledge Hub pilot  Marketing Plan/Career operations review Development Program  Inspection and Adaptation of Physical implemented in Knowledge Hub operations conjunction with IBPAP  Commissioning of Physical Knowledge and HEIs Hub operator for other site locations  SMP Courses offered  Construction of other Physical  Teachers/Students Knowledge Hub site locations trained in SMP  Commissioning of other Physical  Membership base Knowledge Hub site locations reaches 100,000 after 12 months of operation

(iv) Innovational Phase

Activities Descriptions Output Milestone 1. Opportunity  Design and develop fully automated  Fully automated Matching Full opportunity matching mechanisms (job- opportunity matching Automation matching, required education and mechanisms installed training matching, business matching, and functioning etc.)  Industry able to  Update of virtual knowledge hub with access/mine database fully automated matching mechanisms of SMP/eSMP  Update of related business processes graduates  Industry/academe able to share research results and new trends to COP 2. Continuous  Inspection and adaptation of existing  Improved (more Improvements knowledge hub processes efficient and effective)  Review and updates to curriculum and business processes training delivery  New/additional  Inspection and adaptation of supporting curriculum developed organizational mechanisms (e.g. and deployed IBPAP-PMO role)  Revenue streams from other services generated.

C. Implementation Timeline

Table 2 summarizes the implementation timelines for the four phases.

Table 2: Implementation Timeline Summary 2015 2016 Activities 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 PHASE I: ORGANIZATIONAL PHASE 1 Secure Commitment

2 Organize & set-up the KH Management Office 3 Prepare strategic direction & Workplan

4 Service Provider selections

5 Selection and Formation of content providers PHASE II: DEVELOPMENTAL PHASE 1 Business Process Design

2 Curriculum Content Design and Development 3 Virtual Knowledge Hub Portal Design & Development 4 Physical (brick-and-mortar) Knowledge Hub Portal Design and Development PHASE III: OPERATIONAL PHASE 1 Deployment of Approved Curriculum

2 Deployment of Virtual Knowledge Hub

3 Deployment of Physical (brick-and- mortar) Knowledge Hub PHASE IV: INNOVATIONAL PHASE 1 Oppurtunity Matching Full Automation

2 Continous Improvements

31 32

VIII. ROLE OF IBPAP

A. Role in the Industry

As the enabling association for the information technology and business process management industry in the Philippines that services its approximately 300 industry and support-industry members, including sub-sector associations, IBPAP plays a pivotal role in sustaining the rapid growth of the industry and its members by working to address the talent supply gap, ensure an enduring supply of high quality labor and supporting service innovation.

IBPAP will work in partnership with the KH to achieve common ITBPM talent development goals. Its strategic role in building and supporting talent development and the KH will concentrate on the following key areas:

(i) standard setting and quality assurance, (ii) curriculum development and versioning, (iii) accreditation and assessment, (iv) marketing and career development, (v) public-private partnership building, (vi) policy advocacy, and (vii) strategic talent development solutioning

B. Role with respect to the KH

As part of its strategic talent development solutioning function, the IBPAP will identify and approve selection of the KH based on an established criteria, assist in creating it and be the lead resource to help build the hub’s core capacity to manage and operate. During the early stages of organization and development, as it builds some operational experience including building networks with the industry, IBPAP may serve as the virtual or physical base from which the KH will operate. To ensure its close ties and partnership with the IT–BPM sector, the IBPAP President shall sit as a permanent member of the KH Board of Trustees.

IX. PERCEIVED RISK AND RISK MITIGATING MEASURES

Table 3 summarizes the perceived risk factors, possible impact on the KH and possible course of action to mitigate these factors.

Table 3: Risk and Mitigation Measures Probability Possible Impact on Possible Courses of Action Perceived Risks (L,M,H): Project Implementation & Success to Prevent or Mitigate Risks The failure to create a KH strategic Low Constrains the industry’s ability adequately IBPAP/KH Board of Trustees to ensure that the plan that is aligned with the IBPAP address the supply gap and sustaining the supply preparation of the KH strategic plan is done in and the IT-BPM industry of quality talent consultation with IBPAP/industry Sufficient funding for KH development Low to Project will have difficulty supporting the Secure commitments for KH start-up and operational and cooperation is not made available Medium development and operations of the KH. Adequate funding as early as possible. Set up revenue in a timely manner technical and support staff may not be provided schemes and systems; solicit multilateral/bilateral and quality of the KH service may be funding. compromised. Industry does not recognize SMP/ Medium KH/SMP may lose credibility, students and KH with IBPAP should Intensify dialogue and eSMP as a course that will address industries may discontinue patronizing the marketing with industry partners to solidify their entry training/recruitment KH/SMP if quality and impact of the program is an commitment and support to SMP. Focus on the top requirements issue 20 industry firms. Formalize industry commitments thru MOAs. Conduct studies to validate actual results of the SMP program Students/enrollees do not have Medium Use of the system is limited to those who have KH to coordinate with UPOU to ensure that eSMP adequate access to ICT infrastructure, IT/Internet access. Limited number of students MOOCs can be accessed through cellphones or hardware and internet connection that will enroll or complete the courses. tablets, convert language programs to run on similar is required by eSMP/SMP and IBPAP MOOCs platform. language programs. KH and HEIs are unable to make Low Students will not enroll; limited number of IBPAP to put in place a QA system that will review available quality SMP/eSMP and other graduates, KH membership targets will not be training programs to ensure that it is up to industry IT–BPM training programs to met. standard. Identify new methodologies & strategies to students. improve reach. IBPAP to define an accreditation/ assessment process that will ensure quality of graduates. KHs not able to construct the Medium KH capability to deliver service will be severely Major effort to monitor performance of the KH to backend MIS system/portal according constrained, limiting its usability. Users ensure that construction and deployment of MIS to requirements/specs within the expectations not met and may affect long term meet schedules and technical specs.. timeframes specified and not able to sustainability of the KH. manage and operate the system efficiently 24/7 SMP/eSMP is not integrated in all Low KH mechanisms not fully utilized, membership KH to Launch a strong “marketing”/ awareness HEIs curriculum offering targets not met campaign to create student awareness, collaborate with CHED and other government education agencies to put additional policy measures in place Graduates of SMP/eSMP are not Low Students will discontinue to enrol, KH will not be KH should ensure a good internship program, design hired by the industry viable. communications program that meets the needs of the industry, provide industry/KH mechanism to calibrate according to industry standards.

33 34

X. FINANCIAL REQUIREMENTS OF THE KH

The KH will require an initial seed capitalization of about PHP 10 million and funds to support its operation of about PHP 5–10 million annually, depending on its structure and functions. The KH will need funding to support start up costs and the initial one-year operations or up to the time that it is able to generate membership and sponsorship fees. It will also require funding to support researches and foras that it may initiate but funding for these latter activities can either be sourced individually or be taken from its revenue streams

APPENDICES

Appendix 1. Knowledge Hubs Reviewed

Annex A 37

Appendix 1. Knowledge Hubs Reviewed

A. Private Sector:

Field: Information Technology Security in Development: The IBM Secure Engineering Framework

http://www.redbooks.ibm.com/redpapers/pdfs/redp4641.pdf

The Secure Engineering Framework (SEF) is intended to help ensure that software is secure by design, secure in implementation, and secure in deployment. The global nature of software development activities today necessitates the application of secure engineering principles across global development teams regardless of their physical location. The Secure Engineering Framework includes sections on education and awareness, project planning, risk assessment and threat modeling, security requirements, secure coding, test and vulnerability assessment, documentation, and incident response. The Secure Engineering Framework applies additional security-related elements to all development process stages, thus allowing teams to apply these techniques to the particular development processes that they are following. The Secure Engineering Framework also integrates with a common development process, which product teams should follow for product development.

Field: Information Technology Research and Technology Knowledge Hub for “Link Development” http://www.linkdev.com/

Knowledge Management Framework as defined by LinkDev is comprised of the following pillars, (1) Knowledge Sources (both Internal and External), (2) Business Intelligence, (3) Collaboration tools (Communities, Wiki, RSS, Discussions, Forum, News,…) (4) Workflows Business Process Management, (5) Integration, (6) Documents and Record Management, (7) Symantic Search and Classification and (8) Enterprise Search.

38 Appendix 1

B. Multilateral:

Field: Health The Health Management Network Framework from “Health Information Systems Knowledge Hub” http://www.uq.edu.au/hishub/definition-of-health-information-systems http://www.who.int/healthmetrics/documents/hmn_framework200803.pdf

The Health Metrics Network (HMN) by the World Health Organization was launched in 2005 to help countries and other partners improve global health by strengthening the systems that generate health-related information for evidence-based decision-making. Governed by defined set of policies within standard and compliant processes, data are collected from population based and institution based data sources. These data are then extracted and integrated into a Data Repository where dashboard, reports, queries, events and alerts are derived thus giving the Health Information System Actors Decision Making brought about by these actual data. The Implementation of the HMN Framework should be based upon a set of principles – empowerment, leadership and ownership; a focus on the needs of individual states; building upon what already exists; broad-based consensus-building; and an incremental approach to health information system development. These are the principles reflected in the Paris Declaration endorsed on 02 March 2005 by more than 100 ministers, agency heads and senior officials committing their countries and organization to increased efforts to harmonize, align and manage aid for results with a set of monitorable actions and indicators.

Field: Environment Knowledge Hub for Climate Change Adaptation in Southeast Asia http://www.mrcmekong.org/ http://www.mrcmekong.org/assets/Events/2010_Climate_Environment/Theme0502- Knowledge-Hub-for-CCA-in-Asia-and-Pacific-Ahmad-NAHRIM.pdf http://www.apwf-knowledgehubs.net/ http://www.apwf-knowledgehubs.net/downloads/nahrim.pdf

The Water Knowledge Hub for the Climate Change Adaptation (WKHCCA) is developed by the National Hydraulic Research Institute of Malaysia (NAHRIM). NAHRIM was established by the Government of Malaysia in response to the country’s increasing number of water- related challenges, including floods, drought events, deteriorating water quality in rivers and coastal bodies, competing users, erosion, accretion, sedimentation, and not least, the impending anticipated impacts of climate change on water. Operating under the direction of NAHRIM’s Research Centre for Water Resources, the regional water knowledge hub for water and climate change adaptation in Southeast Asia has building capacity in areas of water management impacted by climate change due to global warming as its goal. The NAHRIM, aiming to be a world premier research center for water and environment by year 2030 brought about the development of the WKHCCA that focusses on three objectives, (1) development of training modules and program, (2) research and development of policy initiatives, and (3) encouraging the development of hydro climate projection models, together with countries in the region and relevant regional organizations. The Hub provides services namely (1) Communication Strategy & partnership development, (2) Capacity building, (3) regional and river basin hydro climate projections and (4) Impact assessment & adaptation Strategy.

Annex A 39

Field: Health

Health Information System Knowledge Hub - Strengthening Health Information System in the Asia Pacific Region http://www.uq.edu.au/hishub http://www.uq.edu.au/hishub/docs/AMDIG_E%20Aung.pdf

In 2008, AusAID established 4 Knowledge Hubs for health in leading Australian institutions, addressing different dimensions of the health system. The goal of the Knowledge Hub is to contribute to the quality and effectiveness of Australia’s engagement in the health sector in the Asia Pacific Region through expanded expertise and an expanded knowledge base that is of practical value and used by stakeholders in development. The aim is to (1) increase the critical, conceptual and strategic analysis of key health system issue, (2) expand convening powers and engagement between all the key stakeholders in development in the Asia-Pacific region, (3) effectively disseminate relevant and useful knowledge, and (4) expand the capacity of Australian and regional institutions and professionals.

Field: Education ASEAN Quality Assurance Framework for Higher Education (AQAFHE) http://www.asean-qa.de/media/asean- qa.de/BKK_Conference/Day_2/3.ASEAN_Quality_Assurance_Framework_by_Zita_Mo hd._Fahmi.pdf

The ASEAN Quality Assurance Network (AQAN) developed a quality assurance framework for higher education (AQAFHE) for Southeast Asian Nations. The objectives of AQAFH are to (1) promote regional harmonization in higher education, (2) facilitate regional recognition of qualifications, (3) Encourage national QA systems to bench against the Framework, and (3) to serve as a common reference point for national QA systems to align and harmonize their systems. The Outcome of AQAFHE are 4 integrated Quadrants, the External Quality Assurance Body, External Quality Assurance Standards and Practices, Institutional Internal Quality System, and Quality Framework.

Field: Education Accreditation Board for Engineering and Technology (ABET) http://www.abet.org/about-abet/

ABET serves the public globally through the promotion and advancement of education in applied science, computing, engineering, and engineering and technology. It is recognized as the worldwide leader in assuring quality and stimulating innovation in the fields of education mentioned. Originally named as Engineer’s Council for Professional Development (ECPD), It was renamed as ABET to more accurately describe its emphasis on accreditation. ABET helped in establishing the Computing Sciences Accreditation Board (CSAB) now having more than 300 accredited Programs. ABET is an organization currently with 33 member societies which are professional and technical organization that represents the fore mentioned fields of education. This member Societies collaborates to review and accredit degree programs in the fields they represent. These society also recruit and help train 2,000 volunteers who carry out ABET’s Accreditation activities.

40 Appendix 1

Field: Education The Association of Chartered Certified Accountants (ACCA) http://www.accaglobal.com/gb/en.html

ACCA is the global Body for professional Accountants. It is supporting 170k members and 436k students throughout their careers providing services through a network of 91 offices and active centers. Its Global structure is designed in a manner that exams and support are delivered at a local level directly benefiting stakeholders wherever they are based. The ACCA core values are opportunity, diversity, innovation, integrity and accountability. Its aim is to develop capacity in the Accounting profession and encourage the adoption of global standards. It is governed by a Council that ensures ACCA is operation in the public interest and delivers the objectives stated in its own Charter. This Council sets the overall direction of ACCA engaging its members to its strategic direction and providing an objective environment for the executive team to explore new ideas or challenges. ACCA works in Partnership with governments, international agencies and professional bodies to develop the global accountancy profession and to advance the public interest. It aims to create a transparent, global profession to build credibility in financial systems. Attract inward investment and contribute to economic development.

Field: Education MIT Leaders for Global Operations

Source: AIM Thought Paper

In the early 1980’s, when the American manufacturers were losing market share to Japanese manufacturing corporations due to quality issues, MIT felt responsible and thus they have decided to develop broad program that integrates the disciplines of engineering and management that brought about the birth of “Leaders for Manufacturing Program (LFM). The MIT Leaders for Global Operation is running on the following principles: (1) partnership, (2) adequate support, and (3) enterprise-wide manufacturing. Its structure is built on the following pillars (1) Internships, (2) plant treks, (3) leadership seminars, (4) thought leadership, and (5) recruiting. LGO being centered on partnerships between MIT and Companies in the manufacturing industry are reaping benefits such as the opportunity to advance their industries and organization.

INDIA: The CISCO NetAcad - Rajasthan Partnership

Source: AIM Thought Paper

In response to the global economic growth in Asia, India will require 500 million skilled workforces by 2022 to sustain the trend. CISCO Networking Academy (NetAcad) in partnership with the Rajasthan Ministry of Education (MOE) under the Rajasthan Education Initiative (REI) signed a Memorandum of Understanding (MoU) to support the introduction of ICT training for students and teachers at government secondary Schools. CISCO NetAcad and MOE implemented in 33 DCEC the IT Essentials curriculum ranging from certificate courses in hardware basics, advance courses in computer hardware and later, software applications were added. CISCO Academy Training Centre (CATC) trained selected Secondary teachers that would returned to their respective schools once the training has been completed. A regular weekly update and planning meeting is conducted by the REI Project director with the partner representatives including the government

Annex A 41 representatives. This initiative has brought NetAcad designed courses to become available on 167 countries together with its presence in 185 local educational institutions across India.

C. Regional

Field: Health Philippines eHealth Strategic Framework and Plan 2013-2017 http://www.doh.gov.ph/ http://www.doh.gov.ph/sites/default/files/Philippines_eHealthStrategicFrameworkPla n_February02_2014_Release02.pdf

The National Objectives for Health, 2005-2010 and the 2011-2016 prioritized the use of ICT in various reforms areas, critical health programs, and specific areas in health administration. Together with the national development plans, government-wide ICT plans, assessments of ICT programs and health information systems, and priorities of the health sector, the DOH has updated its e-health framework to support Universal Health Care or Kalusugan Pangkahalatan. The Philippines eHealth Strategic ramework and Plan (PeHSFP) is the result of comprehending what the Philippines needs to achieve in order to address its health goals and challenges. The key to keeping updated the PeHSFP, as well as success in implementing the national eHealth agenda, is the continuing collaboration and communication with the different stakeholders to gain their support, guidance, cooperation and commitment.

Field: Environment Royal Government of Bhutan Ministry of Agriculture and Forests Environmental Management Framework http://www.ekh.unep.org/?q=node/2608 http://www.ekh.unep.org/files/document.pdf

The Royal Government of Bhutan (RGoB) will be implementing the Improving Rural Livelihood Project (IRLP) with World Bank financing to support rural development activities based on the Dzongkhag plans formulated for the 10th Five Year Plan (July 2008 – June 2013). The project aims to enhance agriculture production systems and to create income generating opportunities for poor communities in the project area through improved access to rural infrastructure and introduction to better agricultural technologies. The proposed project has two components: Rural Infrastructures and Agricultural Productivity, and Project Management and Institutional Support. The key objectives of the proposed project are to enhance agricultural production systems and to create income generating opportunities for poor communities in the project area through improved access to rural infrastructure and introduction to better agricultural technologies. These objectives would be achieved by improving access to roads, irrigation and marketing infrastructure, stimulating agriculture productivity growth, improving community and social infrastructure and supporting development of employment opportunities in the selected Dzongkhags. Improvement in market access would be achieved by investments in marketing and road infrastructure. Social infrastructure of community demand would be improved based on set criteria. Agricultural productivity and rural incomes would increase through improved irrigation water supply, addressing issues related to production of essential commodities and farm land.

42 Appendix 1

Field: Education The Philippine Qualifications Framework (PQF) http://www.acscu.com/system/application/sources/file/ched2.pdf

The Philippine Qualifications Framework is a national policy that describes the level of educational qualifications and sets of the standards for qualification outcomes. It is a quality assured national system for the development and award of qualifications based on standards of knowledge, skills and values acquired in different ways and methods by learners and workers in the country. It is competency based and labor market driven and assessment based qualification recognition. The Objectives of the PQF are (1) to establish national standards and levels for outcomes of education and training, (2) to support the development and equivalencies which provide access to qualifications and assist people to move easily and readily between the different Educational Sectors and the labor market, and (3) to align the PQF with international qualifications framework to support the national and international mobility of workers thru increased recognition of the value and comparability of Philippine qualifications.

Field: Education Cebu Educational Development Foundation for Information Technology (CEDFIT) http://cedfit.org/

CEDFIT is a consortium of industry, academe government and NGO’s that seeks to increase the quantity and improve the quality of professionals in the ICT and IT-Enabled Services Industry. CEDFIT was established as a result of the first CEBU IT Summit held Last March 29-30, 2001 in response to the identified need to enhance the quality and quantity of human resources in the IT industry. In order to uphold its mission to “Nurture a quality ICT education by establishing high industry standards” the organization has the following mandates: (1) to promote and support the development of IT education in the tertiary level and, therefore the quality and quantity of graduates of IT courses, (2) to enhance IT education in the tertiary level by assisting consortium member-schools in curriculum development, improvement of equipment, facilities and technology, and other related concerns; (3) to promote the early acquisition of relevant IT knowledge and skills in the primary and secondary school levels by assisting these schools integrate IT education within their curriculum, (4) TO assist in the promotion and provision of non-formal IT skills training through short-term certificate courses; (5) to guarantee the efficient absorption of qualified IT graduates by industry through an employment mechanism set up solely fro this purpose and (6) to serve as an advocacy group for the formulation of pertinent IT policies, beneficial national and local laws, and appropriate incentives program by the national and local government.

Asian Development Bank

Department of Finance Republic of the Philippines

IT-BPM Industry Knowledge Hub Project

Deliverable 3: Models and Best Practices for University-Industry Linkages

Deliverable 4: List of HEIs for University- Industry Partnerships and Draft Partnership Agreements

Information Technology and Business Process Association of the Philippines

EXECUTIVE SUMMARY

One of the key components identified under the Technical Assistance (TA) to improve higher education curricula specifically for the Information Technology and Business Process Management (IT-BPM) sector is to build and support stronger industry-academe (I/A) linkages so that the academe can better contribute to addressing the IT-BPM talent supply gap.

Many efforts in I/A partnerships in the Philippines have been initiated by both state and private universities. Majority of the partnerships were created primarily to secure training and employment for students and graduates, to increase the responsiveness of the schools’ curricular offerings to industry needs and to secure physical resources or technology. Many partnerships have been successful while others have failed. Many issues were experienced by both partners including sustainability, scaling up, security, intellectual property, internal policy, to name a few. HEIs still need to hurdle considerable challenges that affect their institutional economies and political or governance environments in supporting these linkages while private sector firms need to understand better how to guide the HEIs on methodologies and technologies that they are implementing in the workplace. This guidance from private sector is necessary for the HEIs to effectively mentor the students so that they can pass through recruitment faster and become better workforce when they join the industry. All of these I/A experiences serve as the foundation for building new partnership models and defining new research and extension priorities.

It is widely recognized that universities play a crucial role in meeting the labor demands of innovative and high growth industries such as the IT-BPM sector because they are the main producers, managers and transmitters of knowledge. In this context, I/A partnerships are considered to be important across many stakeholders. Many argue that the collaboration between industry and academe should be a concern of industry because it will help provide them with properly trained employees, and it saves them valuable time and resources in making a fresh graduate productive. With a good industry-academe linkage, the new recruits can hit the ground running. On the other hand, the academe seeks strategic partnerships that are aligned to the fulfillment of their mission and inevitably add value to students, faculty, staff, and their local communities and industry. Partnerships are vital for universities and colleges to reduce their needs on physical resources, securing training and employment for students and graduates, increase the responsiveness of curricular offering to industry needs, all of which contribute to building a credible institutional image.

Studies show that synergistic relationships between colleges and businesses, when successful, impact on economic development in the communities that the colleges serve. In addition, there are many other perceived advantages of academe and industry partnership for both students and faculty that economic developers in the US and in other developed economies visualized as a tool of for regional development.

Over the years, the interface of industry and academe has taken different shapes and forms and has encompassed different themes over time. The most compelling driver from both industry and academe perspective are ensuring that fresh graduates have the necessary skills to join the workforce, improving employee skills and retraining employees. Knowledge exchange technology improvement and improving quality of teachers as part of institutional capacity building also appear to be strong motivators for partnerships. Some I/A partnerships have focused on taking innovative steps to strengthen or make effective their relationships.

Many I/A Linkage researches have identified critical ingredients that contributed to the success of the partnerships. Interestingly, there are also studies that have identified constraints or barriers that have produced partnerships with disappointing results or failure.

The rise of the global outsourcing economy and in particular, the development of a strong Philippine outsourcing industry has intensified the need for more innovative I/A partnerships that can shift from the conventional or “sponsorship” approach of funding projects or specific research activities to a “partnership” model that requires a more creative fusion of the efficiency driven environment of the industry and the instructional culture of the universities. Today, there is recognition that a strong, more organic I/A partnership that can adopt to the shifting needs of the IT-BPM sector is necessary for improving the quality of higher education and research and extension work that in turn impacts on the industry’s capacity to achieve diversity in portfolio services and markets that the IT-BPM companies in the Philippines serve worldwide. Intense collaboration efforts are required to address key talent issues so that jointly, the industry and academe can achieve development goals and enable the industry to continually refine its competitive advantage.

The overall framework for thinking strategically about I/A partnerships for improving the quality of services and achieving closer university and industry alliances for the IT-BPM sector recognizes different factors that impact on different relationship stages from a strategic perspective and also considers the depth of collaboration and synergy taking into account factors in the environment, membership characteristics, process and structure, communication, purpose and resources.

The partnership design recognizes that mutual benefits and incentives shall be shared by the partners, including building a more efficient and sustained recruitment process. This principle provides the justification for shaping the financial sustainability of the partnerships that is also reflected in the functional structure. Both university and industry firm needs to have incentives. Industry benefits from reduced recruitment and training costs, improve the quality of their HR pipeline and stabilize their employment flow. The universities, on the other hand, benefit from increased revenues from tuition, increased physical facilities and resources, better track record in research, better faculty training, relevant and dynamic curriculum and course offering. Financial models for any revenue sharing, fund generation or fund utilization will be established based on the value proposition and nature of the initiative (e.g. research, consulting, curriculum development, certification etc.) Clearly, if industry demands more from students, leading to increased costs, either government or the industry may have to finance. Universities on the other hand need to invest in overhauling their learning ecosystems if they want revenues to increase or be sustained.

Key interrelated challenges and constraints that need to be overcome so that the partners can work better closely together include the current traditional approach to learning, marketing and communications, getting industry to actively “play” in the partnership and collecting and measuring employment data from partnership activities.

TABLE OF CONTENTS

Deliverable 3: Models and Best Practices for University-Industry Linkages I. INTRODUCTION ...... 1 II. PHILIPPINE INDUSTRY-ACADEME PARTNERSHIPS ...... 2 III. THE NEED FOR INDUSTRY-ACADEME LINKAGES FOR THE IT-BPM SECTOR ...... 4 Figure 1: IT-BPM Industry Talent Resource Gap ...... 4 Figure 2: Estimated Addressable Supply for the IT-BPM Industry ...... 5 Figure 3: IT-BPM Industry Recruitment Funnel ...... 5 IV. INDUSTRY-ACADEME LINKAGES – A STRATEGY FOR ADDRESSING THE TALENT GAP ...... 6 V. DRIVERS AND MOTIVATORS FOR INDUSTRY-ACADEME LINKAGES/PARTNERSHIPS ...... 7 Table 1: Advantages from University-Industry Collaborations (Srevatsan 2011) ...... 8 VI. GATEWAY INITIATIVES FOR LINKAGES/PARTNERSHIPS ...... 9 VII. CONSTRAINTS AND BARRIERS TO SUCCESSFUL PARTNERSHIPS...... 10 VIII. KEY PARTNERSHIP SUCCESS THEMES AND LESSONS LEARNED ...... 11 IX. I/A LINKAGES MODEL FOR THE IT-BPM SECTOR ...... 14 A. Partnership Framework ...... 14 Table 2: Austin Model ...... 14 Table 3: Partnership Collaboration Continuum Model ...... 15 B. Partnership Principles ...... 15 C. Partnership Construct and Structure ...... 17 Figure 4: Knowledge Hub Functionality ...... 18 ...... 18 D. Sustainability Mechanisms ...... 18 Figure 5: Value and Participation ...... 19 ...... 19 E. Overcoming Challenges and Constraints ...... 19

Deliverable 4: List of HEIs for University-Industry Partnerships and Draft Partnership Agreements I. LIST OF POTENTIAL ACADEME PARTNERS...... 21 Table 4: Potential Academe Partners – Manila ...... 22 Table 5: Potential Academe Partners – Northern Luzon ...... 26 Table 6: Potential Academe Partners – Southern Luzon...... 28 Table 7: Potential Academe Partners – Visayas and Mindanao ...... 32 II. DRAFT TRIPARTITE AGREEMENT SCHOOL, IBPAP, UPOU ...... 36 III. DRAFT BILATERAL AGREEMENT SCHOOL AND INDUSTRY PARTNER ...... 42 IV. DRAFT ENABLER AGREEMENT IBPAP AND BPO CAREER HUB ...... 49

Acronyms and Abbreviations

AdEPT Advanced English Proficiency Training ACPI Animation Council of the Philippines, Inc. ADB Asian Development Bank AIM Asian Institute of Management ASEAN Association of Southeast Asian Nations BEST Basic English Skills Training BPO Business Process Outsourcing BPM Business Process Management BSBA Bachelor of Science in Business Administration BSIS/IM Bachelor of Science in Information Systems/Information Management BSIT Bachelor of Science in Information Technology CCAP Call Center Association of the Philippines CEO Chief Executive Officer CHED Commission on Higher Education CMO CHED Memorandum Order CSR Corporate Social Responsibility DOF Department of Finance DOST Department of Science and Technology EDCOM Congressional Commission on Education FTE Full-time Employee GIC Global In-house Center GDAP Game Developers Association of the Philippines HEI Higher Educational Institutions HIMOAP Healthcare Information Management Outsourcing Association of the Philippines HR Human Resource I/A Industry-Academe IBPAP Information Technology–Business Process Association of the Philippines ICT Information and Communication Technology ICTO Information and Communication Technology Office (formerly CICT) IP Intellectual Property IT Information Technology IT–BPM Information Technology–Business Process Management KH Knowledge Hub PPP Public-Private Partnership PSIA Philippine Software Industry Association PWD Persons with Disability S&T Science and Technology SMP/eSMP Service Management Program/SMP Online SUC State universities and Colleges TA Technical Assistance T3 Train-the-Trainer (Program) UPOU University of the Philippines-Open University

DRAFT

(Jan 30)

Deliverable 3: Models and Best Practices for University-Industry Linkages

TA-8164 PHI: Strengthening Knowledge-Based Economic and Social Development – 1 BPAP (46234-001)*

Prepared by

Information Technology-Business Process Association of the Philippines Consultant 30 January 2015

Models and Best Practices for University-Industry Linkages 1

I. INTRODUCTION

The Philippine Government through the Department of Finance (DOF) is implementing a Technical Assistance (TA) project funded by the Asian Development Bank (ADB) to address skills shortages in the IT-BPM industry by aligning higher education curricula with international standards and labor market demand, simultaneously, developing and strengthening public and private partnerships. The TA will employ knowledge hubs (KH) to develop replicable models for strengthening relationships among the government, industry, and higher education institutions (HEIs) within the Information Technology and Business Process Management (IT-BPM) industry; sharing and learning regional knowledge and experiences; and supporting other similar high-growth industries.

The TA impact is improved alignment of higher education with the needs of the economy. The TA outcome is a replicable and sustainable system of Information and Communication Technology (ICT) -enabled knowledge hub (KH) for improved teaching and learning of IT- BPM industry-based curriculum in HEIs.

One of the key components identified under the TA to improve higher education curricula specifically for the IT-BPM sector is to build and support stronger industry-academe (I/A) linkages so that the academe can better contribute to addressing the IT-BPM talent supply gap.

This paper is being prepared to review business models and best practices of I/A linkages and partnerships locally and internationally with the end goal of developing a sustainable and replicable I/A linkages model for the IT-BPM industry that can strengthen higher education programs and address the IT-BPM skills shortage.

This paper is also being prepared to provide inputs to the KH Business Model that will be established under the project. The KH is expected to play a significant role in building and strengthen I/A linkages. The paper will identify constraints for improving quality linkages as well as offer recommendations to address these gaps. It will highlight best practices for achieving more cost effective I/A linkages that can better meet the needs of different learners, find more creative and efficient ways of utilizing different stakeholder resources for linkages and partnerships, identify ways to ensure the academe’s continuing relevance to the knowledge economy and building a broader base of community support.

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II. PHILIPPINE INDUSTRY-ACADEME PARTNERSHIPS

In the Philippines, I/A partnership was introduced by the Department of Science and Technology (DOST) over three decades ago. A large portion of the I/A partnerships began for research in the agriculture sector and expanded to other fields with the expansion of business and the growth of the economy.1 Today, majority of the partnership engagements are in science and technology and for-profit businesses including those in the ICT, education, medical sciences, engineering and other similar industry growth sectors. These I/A partnerships have strong similarities to those I/A collaborations in China, Japan, Korea and Singapore.2

Many efforts in I/A partnerships in the Philippines have been initiated by both state and private universities. These included the University of the Philippines, University of Sto. Tomas, Ateneo de Manila University, De la Salle University, technological University of the Philippines, Polytechnic University of the Philippines, San Carlos University, Central Philippine University, Mapua Institute of Technology, Adamson University, Ateneo de Davao University; Xavier University, Mindanao State University-Iligan Institute of Technology, Far Eastern University, Leyte State University, Mariano Marcos Memorial State University, Bulacan State University to name a few.3 Majority of the partnerships were created primarily to secure training and employment for students and graduates, to increase the responsiveness of the schools’ curricular offerings to industry nee ds and to secure physical resources or technology. The more recent partnerships include:

(i) IBPAP (BEST, AdEPT and SMP programs) with 17 state universities and colleges nationwide (ii) DLSU with Japan Science and Technology Corporation (iii) Ateneo de Manila University and Jollibee (iv) Don Bosco Technical College and Porsche and Toyota (v) Lyceum of the Philippines and Dusit Hotel (vi) Technological Institute of the Philippines (TIP) and IBM (vii) Jose Rizal University and LiveIt (for the Ayala group of companies - Professional Employment Program (PEP)) - (viii) Source Asia Business (SAB) with United Philippine Lines (UPL) (ix) Society of Fellows in Supply Management, Inc. (SOFSM) and 2GO (x) PACSB and BAP Bank Immersion Programs (xi) On-the-Job Training Programs; Teach-the-Trainor and other Training programs – East Asia, Asia Pacific

1 M. Villegas, Symbiosis Between Academe and Industry. Manila Bulletin, November 9, 2009. 2 World Intellectual Property Organization, Technology Transfer, Intellectual Property and effective University-Industry Partnerships: The Experience of China, India, Japan, Philippines, the Republic of Korea, Singapore and Thailand. 2005. 3 Academe-Industry Partnerships in the Philippines: Nature, Benefits and Problems, Racidon P. Bernarte, Polytechnic University of the Philippines.

Models and Best Practices for University-Industry Linkages 3

A report of the Congressional Commission on Education (EDCOM) confirms that, despite many partnerships and other policy measures to strengthen HEIs, higher education in the Philippines continues to be characterized by:

(i) large enrollments, (ii) imbalanced distribution, (iii) underinvestment and poor quality, (iv) mismatch between programs and graduates and between employment and society needs, and (v) limited and underdeveloped graduate education.

Many partnerships have been successful while others have failed. Many issues were experienced by both partners including sustainability, scaling up, security, intellectual property, internal policy, to name a few. HEIs still need to hurdle considerable challenges that affect their institutional economies, and political or governance environments in supporting these linkages while private sector firms need to understand better how to guide the HEIs on methodologies and technologies that they are implementing in the workplace. This guidance from private sector is necessary for the HEIs to effectively mentor the students so that they can pass through recruitment faster and become better workforce when they join the industry. All of these I/A experiences serve as the foundation for building new partnership models and defining new research and extension priorities.4

4 Teresita P Medado, Industry-Academe Bridging Program Initiatives, 2008. (http://www.apccenter.edu.ph/news/show/id/9) 4 Deliverable 3

III. THE NEED FOR INDUSTRY-ACADEME LINKAGES FOR THE IT-BPM SECTOR

The single, most important issue facing the industry that will impact on the success of the IT-BPM sector in sustaining its growth and remain competitive is the availability of qualified talent. Two key issues impact on the availability of qualified talent: the supply, and the quality of talent.

Historically, talent supply in the industry was in excess of demand. However, since 2010, demand for talent which has been growing at an annual average of 23% and has consistently outpaced supply.

To achieve the industry’s target of US$25 billion in revenues by 2016, the industry will require a talent pool of 1.3 million full time employees (FTE). The industry reached the 1 million employee mark in 2014, making the 1.3 million target hires for 2016 easily achievable. A 2014 Tholons’ study projects that the demand for qualified talent will continue to grow at double digit rates even beyond 2016. The Figure 1 below shows the widening talent resource gap in the IT-BPM industry.

Figure 1: IT-BPM Industry Talent Resource Gap

While the Philippines produces close to 500,000 college graduates annually, only a small fraction is able to land jobs that are appropriate to their academic training. Many cite the lack of job opportunities as the main reason for being unemployed or undermployed. Many talents find their way to work in other parts of the globe to perform roles that they have not been trained for. Oftentimes, the problem is caused by the fact that students obtain knowledge and competencies that are not what the industry needs. And this can be attributed to a variety of issues including outdated books, teaching methodologies, curricula and technology being used in the schools of higher learning; and the absence of or inadequate on-the-job training (OJT) exposure of the students. Only about 80,000 to 100,000 of these qualified graduates actually join the IT-BPM sector.

Models and Best Practices for University-Industry Linkages 5

Figure 2: Estimated Addressable Supply for the IT-BPM Industry

The recruitment funnel continues to be a challenge. For every 100 applicants that are screened, only 7-10% actually qualify and are hired. Many college graduates lack proficiencies in English, Math, Science and Technology (S&T) and Service Culture - which are needed by the industry. Low IT literacy and poor access to computers of the larger segment of the population also hinder the development of suitable talent for the IT-BPM industry.

Figure 3: IT-BPM Industry Recruitment Funnel

Many traditional solutions and policy directives have been implemented by government and Higher Education Institutions (HEIs). However, there remain many critical gaps that require more creative solutions including a more dynamic Industry-Academe Partnership model. All stakeholders also see the need for an integrated talent development approach with objectives that progressively lead to addressing the talent supply gap. A case study of I/A linkages finds that some BPM firms engage in actively embedding programs and develop linkages with higher education institutions. With the widening talent supply gap, I/A linkages 6 Deliverable 3

for the IT-BPM sector are increasingly becoming more important and going beyond the traditional funding for recruitment or discrete research projects.

One of the most recent IT-BPM I/A initiative that is being implemented is the Commission on Higher Education (CHED)-funded, IBPAP implemented Developing State University and College Graduates Towards Global Competitiveness, National Productivity and Development Project. At least ten I/A partnerships are being pursued by IT-BPM partners and state universities and colleges (SUC) in different regions in the Philippines. While still early in implementation, these initiatives are showing positive impact in better course offering for the school and increased hiring rates for the firms, both contributing to local economic development, inclusive growth and higher foreign direct investments in the sector. But there remain many challenges as it has not been replicated and there are many policy and operational issues that need to be resolved before it can get to a real collaborative and sustainable level

IV. INDUSTRY-ACADEME LINKAGES – A STRATEGY FOR ADDRESSING THE TALENT GAP

I/A linkage is crucial for the optimization of regional industrial structures and the improvement of regional economic competitive capacity in a country as they connect different single corporation requirements to a multi-enterprise industry chain.7 On the other hand, the academe seeks strategic partnerships that are aligned to the fulfillment of their mission and inevitably add value to students, faculty, staff, and their local communities and industry.8 Partnerships are vital for universities and colleges to reduce their needs on physical resources, securing training and employment for students and graduates, increase the responsiveness of curricular offering to industry needs, all of which contribute to building a credible institutional image.

Historically, academe, government and the private sectors have been used to operating in separate domains and have realized the need to work closer together to create synergies in responding to changing management paradigms and intersecting, interdependent needs of these stakeholders brought about by increased market requirements and growing complexities in the industries.

5 Francis Narin, Kimberly Hamilton and Dominique Olivastro, The Increasing Linkage between US Technology and Public Science, October 1997. 6 Evelio Echavez, The Importance of Industry-Academe Linkages, Managing for Society, The Manila Times, February, 2009. 7 Liu Juanjuan and Li Shiming, Study on Effect of Industry Linkage to Regional Competitiveness – An empirical Analysis based on Pengzhou City, Orient Academic Forum. 8 Ma. Teresita P. Medado, Towards Understanding of Academe-Industry Linkages, December 2014.

Models and Best Practices for University-Industry Linkages 7

V. DRIVERS AND MOTIVATORS FOR INDUSTRY-ACADEME LINKAGES/PARTNERSHIPS

There are a number of drivers and motivators that bind industry and academe together. Below is a summary of key motivations and justification for having I/A linkages or similar collaborative and interactive arrangements:9

(i) Increasing complexity in academia and business world and constantly changing needs of the industry; (ii) Increasing criticality of human competence in creating and sustaining organizational competitiveness including effects of globalization; (iii) Shifts in management paradigm of business schools from earlier academic models to revenue based models; (iv) Growing competition for student placements and industry mind-share, with rapid increase in the number of business schools and hence, the management graduates; (v) Growing pressure from industry to make their fresh inductees productive from day one to reduce subsequent training costs; (vi) Increasing interdependence between academe and industry to satisfy the need for sustenance and innovation in their respective areas; (vii) Impact of Internet and the World Wide Web (WWW) Technologies and applications; (viii) Complexity of social problems, diminishing governmental budgets, devolution of responsibility from federal/national to local level, cost savings, economies of scope and scale, revenue enhancement, new demands in human resource management; (ix) Access to new research, development of new products and patents, solving technical problems, funding and financial efficiency in resource requirements such as laboratory equipment; and (x) Growth of a knowledge economy including consumer knowledge and community relations.

The trend in partnerships is influenced by major socio-economic change and milestones. From 1988 to 2006, a period of 18 years, studies on I/A collaboration show that these tend to align with major societal shifts. For instance, towards the end of the 1990’s, progress in technology surged and it was at this time when Silicon Valley was generally considered to have been the center of the dot-com bubble, which started in the mid-1990s and collapsed after the NASDAQ stock market began to decline dramatically in April 2000.10

At that time, the motivations were about social problems, government policies, and the need for new human capital. It was the year of the "Y2K" (the "Y" stands for "year", and the "K" stands for "kilo" which means "thousand") fear, popularly known as the Millennium bug: computers would not shift from 1999 to 2000 correctly. The impact of the “bug” before the turn of the Century was the upsurge of software development, vigilance of the financial

9 Irfan Rizvi and Ashita Aggarwal, Making Academia-Industry Interface Work, Insttute for Integrated Learning in Management, New Delhi, India 10 Ma. Teresita P. Medado, Towards Understanding of Academe-Industry Linkages, December 2014.

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sector in protecting their business and customers, at the same time, massive recruitment of IT experts to fix the bug, and just about every automated utility service. A dense network of long-running collaboration gave rise to new technologies that transformed industries while modernizing the role of the university. And of course, the impact of the Internet during the first few years of year 2000, changed the playing field in just about all aspects of society and business. Similarly, it is expected that the significant growth in global outsourcing market over the last ten years will influence and impact on the development of I/A partnerships and the role of the universities.

Studies show that synergistic relationships between colleges and business when successful, impact on economic development in the communities that the colleges serve. In addition, there are many other perceived advantages of academe and industry partnership for both students and faculty that economic developers in the US and in other developed economies visualized as a tool of for regional development. The Table 1 lists the advantages of I/A partnerships for all key stakeholders.

Table 1: Advantages from University-Industry Collaborations (Srevatsan 2011) universities’ Advantage Industry Advantage Faculty  Access to industrial facilities and equipment  Human Capital  University researchers and firm employees  Access to skilled human publishing together resources  Revenue through R&D with Industry  Improving skills for employees  Join in startup business through education and training  Update curriculum and program in  Innovation and S&T development accordance with the market  Research and development for Student  Improve skills in working with real world products and processes problems at industries  Regular acquisition of university  Finding jobs after graduation research  Business incubation  Permanent or temporary transfer of knowledge from universities to  Students’ doctoral and master’s theses are sometimes directed by university and industries sponsoring industry jointly  Purchase of successful university  Resources and funding research such as patents.  Investment in university facility  University researchers and firm employees publishing together  Creation of business incubators and research centers Note: Reprinted from “The Role Of University-Industry Collaboration In Regional Economic Development,” by R. Srevatsan, 2012, A Dissertation Submitted to the Graduate School of The University of Southern Mississippi, p. 40. Copyright 2011 by ProQuest LLC.

Models and Best Practices for University-Industry Linkages 9

VI. GATEWAY INITIATIVES FOR LINKAGES/PARTNERSHIPS

Over the years, the interface of industry and academe have taken different shapes and forms and have encompassed different themes over time. The most compelling driver from both industry and academe perspective are ensuring that fresh graduates have the necessary skills to join the workforce, improving employee skills and retraining employees. Knowledge exchange technology improvement and improving quality of teachers as part of institutional capacity building also appear to be strong motivators for partnerships. Some I/A partnerships have focused on taking innovative steps to strengthen or make effective their relationships. The following is a summary list of specific successful areas for collaboration:

(i) Integration of employer’s needs in curriculum and content design in the academe’s programs; (ii) Involvement with industry to allow students to gain valuable practical experience and facilitate employment; (iii) Improvement of programs by including real workplace application of the theories that can only be done by industry representatives as guest lecturers in the programs; (iv) Joint seminars by industry and academe to discuss or build knowledge on common issues and concerns (e.g, recruitment requirements, applied research etc); (v) Participation of both industry and academe in governing councils or other similar educational policy making body; (vi) Development of new leadership and management or technical programs to respond to emerging business demands; (vii) Academic and applied research; (viii) Collaboration to strengthen the capacity of academic staff to keep their skills updated, for practical consultancy or similar activities; (ix) Resource sharing including funding student scholarships or faculty researches and practical consultancy that can potentially generate new ideas or serve as incubators for new business; (x) Joint initiatives such as supporting community development services that support socio-economic development; and (xi) Innovation and technology.

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VII. CONSTRAINTS AND BARRIERS TO SUCCESSFUL PARTNERSHIPS

Many I/A linkage researches have identified critical ingredients that contributed to the success of the partnerships. Interestingly, there are also studies that have identified constraints or barriers that have produced partnerships with disappointing results or failure. The list below summarizes key interrelated barriers and stumbling blocks that need to be overcome when forging substantial partnerships:

(i) Lack of clearly defined goals, objectives and commitment for the partnerships; (ii) Changes in personnel during the implementation of the partnership. New staff may have a different appreciation on what the collaboration is about and what goals it should pursue; (iii) Intellectual property (IP) is important but should not be viewed as the centerpiece of industry-academe relations. In cases where goals are broad and social or national in scope, success may depend on dropping claims to IP. This is an area that has a lot of tensions; (iv) Threat to academic freedom; (v) Internal/political issues of each partner; (vi) Security and confidentiality issues; (vii) Changing priorities of each partner; (viii) Cultural differences; (ix) Capacity to meet agreed upon timetables, accountability and reliability/ competence issues; (x) Lack of equity in partnerships – There is a difference between a contractual /sponsorship arrangement and a partnership. Power imbalance that is not negated and trust/transparency that is not built between the partners is likely to produce disappointing results; (xi) Lack of, or unclear administrative/governance and funding framework for both partners; and (xii) Lack of partnership champions and leaders.

Models and Best Practices for University-Industry Linkages 11

VIII. KEY PARTNERSHIP SUCCESS THEMES AND LESSONS LEARNED

There are many insights from studying the experiences and cases11 of industry and academe collaboration over the last century, including those partnerships in the Philippines and with the IT-BPM industry. What makes for a seamless relationship between university and industry? Why do partnerships relationships succeed or fail? How have industry and academe overcome the challenges or difficulties and successfully moved to a more strategic alliance?

Listed below are key success themes and lessons learned:

(i) The most productive collaborations are strategic and long term with built-in flexibility. Strategic partnerships deliver greater and often transformational benefits to both parties through constant interaction and updating. Narrow collaboration to high impact initiatives that can receive greater funding and last longer is important. It’s about collaboration rather than sponsorship. (IBM-Swiss Federation Institute of Technology Partnership, Source Asia Business with United Philippine Lines)

(ii) A shared vision and strategy is the essential driving force that fosters better understanding of the three possible levels of partnerships (strategic, operational or transactional) on both sides of the partnership, establishes deep professional ties, trust and shared benefits that may bridge the cultural divide between industry and academe. Successful partnerships have shared decision-making and are always based on a win-win situation. Encourage a two-way exchange. (SKF Group- University of Cambridge, GE Global Research, Munich)

(iii) Sustainable partnerships build the human capital needed to make the I/A collaboration work. Over time, the partnership produces a growing number of both teachers and graduates who can think and connect across the cultural divide, and work harmoniously to develop and implement common strategic projects and programs that are attuned to the changing business demands. (IBM-Imperial College London)

(iv) University Leadership is a vital ingredient to the success of the I/A collaboration – a leadership that recognizes the importance of communicating the partnership purpose, goals, benefits and results to the entire academic community, involving a team of senior academicians, providing incentives and engaging different stakeholders within the academic community. Engage university leaders so that they can widen their local business network to include those who can help then develop the value proposition for institutional change and collaboration. (NOKIA- Aalto University, University of California Berkley)

(v) Putting the right people in charge especially those who can cross boundaries – Collaborations works only when they are managed by multidisciplinary people capable of building and managing partnerships, who have a deep understanding of the two different cultures involved in the collaboration and who can cross borders easily. It boils down to interpersonal relationship, trust and appreciating

11 Making Industry-University Partnerships Work, Lessons from Successful Collaboration, Science/Business Innovation Board AISBL 2012

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the differences between what academe does and what industry does. Maintain different cultures while being prepared to work together. (University of California’s Industry-University Cooperative Research Program)

(vi) Promote a culture of multidisciplinary approach and teams – Successful partnerships depends on the ability of academe and industry partners to be engaged in the partnership so that together they can innovate, design or reengineer. Multidisciplinary teams can easily break down traditional academic silos and drive a new multidisciplinary culture and curricula. (Energy Biosciences Institute-University of California-Berkley and the university of Illinois Partnerships)

(vii) Build partnerships based on a set of principles anchored on understanding each other. Meet and talk regularly to talk about successes and failures of the partnership. Spend time to understand the agenda and interest of each partner. Know your partner’s needs. Ensure equity in the partnership – a partnership should deliver mutual benefit. (Microsoft-CISCO-INTEL University of Melbourne Partnership)

(viii) Develop student communities to overcome “silo” thinking - this will encourage greater support for the partnership and help them understand better how they can participate and benefit from the activities. (Aalto University–Helsinki School of Economics–Helsinki University of Technology Partnership)

(ix) I/A Partnership collaboration work best with a big framework agreement based on broad principles and sensible, pragmatic approaches. Don’t get hung up on intellectual property (IP) instead of the outcome or the incentives and rewards. More importantly, universities are not well suited for doing research that business immediately needs. Generally, the strength of universities are “blue-sky discovery” and proof-of-concept where it is an early stage of innovation and there is still a lot of work to be done to bring a “product” to market. (IBM-ETH Zurich)

(x) Develop a pool of academicians (teachers and administrators) with a deep understanding of industry and business experience. Break down academic silos and involve academicians who cross boundaries. Identify “bridge builders” who can make change happen. (Aalto University Forms Partnerships with Industry to transform Teaching and Learning)

(xi) Develop student communities that can overcome silo thinking while maintaining their unique differences. Understanding and appreciating differences in how others think is key to innovation. Embedding students in industry such as in internship or OJT make them attractive recruits and can seed them as future managers/leaders. On the other hand, industry practitioners can teach students what it is like to work with the industry. (Karolinska Insitutet – Innovation Office, Karolinska Development and the Unit for Bioentrepreneurship Strategy for Fostering Innovation, SAP-University of the Cordilleras Alliance Program )

(xii) Long-term partnerships generate the largest benefit. Long-term partnerships are the ideal platform for impact on teaching and learning. While many partnerships with industry have been organized, continuity (stickiness) persists to be a serious

Models and Best Practices for University-Industry Linkages 13

challenge12. Many reasons have been cited for this problem including changing partnership leaders, poor communication, unclear goals and objectives of the partnership, lack of capacity for planning, insufficient resources among others. In addition, most faculty are engaged in full time academic work and therefore have no time to acquire industrial work experience. Junior faculty have a well-known lack of incentives for working with industry as partners (because tenure decisions normally made by conservative members of the faculty do not recognize or reward such work.) Hence, the alliances between industry and academe is relatively limited and normally focused on transactional activity relating to their individual tasks with very little opportunity to learn and stay connected. Develop and design strategic partnerships with sustainability and continuity as part of the industry’s and the academic institution’s goals. (De LaSalle University with Japan Science and Technology, LiveIT and the Ayala group of Companies)

(xiii) Make sure everyone understands, IP, security and confidentiality standards and similar rules or procedures. These can often be obstacles to building partnerships. Communicate and come to a common understanding on these terms and how it will be dealt with by the partnership. (TECHNICOM Program13 of the Department of Science and Technology, California Institute for Telecommunications and Information Technology Project, Taiwan University’s Tjing-Ling Industrial Research Institute (TLIRI) and Tze-Chiang Foundation of Science and Technology (TCFST) Project)

12 The Future of Academic-Industry Collaboration, Consumer Experience Design, Motorola 13 TECHNICOM is a “comprehensive and unified strategy to enhance technology development for commercialization and to fast-track the transfer and commercialization of promising R&R results of government R&D institutes, academe and private sector.

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IX. I/A LINKAGES MODEL FOR THE IT-BPM SECTOR

The rise of the global outsourcing economy and in particular, the development of a strong Philippine outsourcing industry has intensified the need for more innovative I/A partnerships that can shift from the conventional or “sponsorship” approach of funding projects or specific research activities to a “partnership” model that requires a more creative fusion of the efficiency driven environment of the industry and the instructional culture of the universities. The business landscape is constantly changing, emerging verticals and geographies are driving growth and new organizational models are being developed. Today, there is recognition that a strong, more organic I/A partnership that can adopt to the shifting needs of the IT-BPM sector is necessary for improving the quality of higher education and research and extension work that in turn impacts on the industry’s capacity to achieve diversity in portfolio services and markets that the IT-BPM companies in the Philippines serve worldwide. Intense collaboration efforts are required to address key talent issues so that jointly, the industry and academe can achieve development goals and enable the industry to continually refine its competitive advantage.

A. Partnership Framework

The Austin model in Table 2 is being employed as the overall framework for thinking strategically about I/A partnerships for improving the quality of services and achieving closer university and industry alliances for the IT-BPM sector.14

Table 2: Austin Model One Two Three Relationship Philanthropic Transactional Integrative Level of Engagement Low High Importance to Mission Peripheral Strategic Magnitude of Resources Small Big Scope of Activities Narrow Broad Interaction Level Infrequent Intensive Managerial Complexity Simple Complex Strategic Value Modest Major

In addition, the Partnership Collaboration Continuum Model in Table 3 will also be used specifically in defining the depth of collaboration, relationship and synergy and will consider factors in the following six categories:

(i) environment, (ii) membership characteristics, (iii) process and structure, (iv) communication, (v) purpose, and (vi) resources.15

14 “Strategic Collaborations Between Non-profits and Business, by J.E. Austin, 2000, Nonprofit and Voluntary Sector Quarterly, 29, p. 72. Copyright 2000 by the Association for Research on Nonprofit Organizations and Voluntary Action.

Models and Best Practices for University-Industry Linkages 15

Key best practices from the local I/A partnership experiences and the global partnerships discussed in this paper are also incorporated.

Table 3: Partnership Collaboration Continuum Model Cooperation Coordination Collaboration/Partnerships

Lower intensity Higher intensity

Short term, informal Lower effort around a More durable and pervasive relationships project or task relationship

Shared information only Some planning and New structure with division of roles commitment to common goals Separate goals, resources Some shared resources, All partners contribute and structures rewards and risks resources and share rewards and leadership

B. Partnership Principles

The following principles will be given emphasis to make the partnership succeed in achieving greater alignment in the goals of the partnership institutions, to increase and transform teaching-learning-employment practices, and to achieve the right synergy for the I/A partnership. These elements ensure that the I/A partnerships are designed for sustainability.

(i) continuous improvement – Due to the rapidly changing industry needs and the growing requirement for industry-ready talent, it is important that both industry and academe bridge the gap between classroom and the marketplace reality. Continuous improvement in the curriculum, in the course content and delivery, and in research is critical for knowledge, experience and technology transfer. Most university teachers have no idea what the workplace is about. Constant communication and interaction with industry experts need to be programmed and incentives must be in place for this to happen. University professors are normally measured by publication and it is difficult to manage or be involved with I/A programs which do not relate directly to their measurement metrics.

(ii) adaptability and flexibility - It is not a must that I/A partnerships are equally beneficial to all business school. What is important is developing or evolving a “differential relationship” mechanism over time that addresses the needs of both industry and academe equitably and therefore contributes to the growth of both entities.

(iii) innovation – In a very competitive industry like the IT-BPM, I/A partnerships in case writing, applied research and problem-based consulting are only some of the

15 Infopeople online learning, Reading 1: The Partnership Continuum, printed by Admin Nancy Nerenberg, 2011

16 Deliverable 3

value adding reasons for the partnerships that lead to innovation and progressive change. These areas need to be exploited so that they can have significant and relevant impact on management education and the industry’s continuing competitiveness.

(iv) maintaining close ties with industry - HEI have collaborated with industry to provide training and internship to students. This is seen as one of the best methods of giving students both the theoretical concepts and their application, including enhancing their ability to relate the two for decision making purposes. On the other hand, Leadership and Management programs are two important areas that trigger industry’s interest to collaborate by assisting them to collaborate in developing and training their potential pool of managers, hence increasing the mind-share and the image of the HEI. Other areas for maintaining close ties include guest lecturers by industry representatives, teachers as consultants in the industry, inclusion of industry experts and academic personnel in governing councils, technical panels or similar education committees for the industry and joint conferences and similar activities.

(v) financial sustainability – Financial stability is a key component for I/A sustainability. Partnership initiatives require regular project budgets. Partners normally participate in activities where each one derives a value that can translate to some operational or financial reward for both partners. Government funding and investment must prioritize support for priority and high growth industries and support the development of hubs and other public-private partnership (PPP) models that can serve as partnership centers for knowledge sharing and exchange. Similarly, industry must have an investment if it wants to sustain its pipeline for qualified talent.

(vi) strategic and business planning – The first step to a healthy partnership is assessing the core strengths of both partners and identifying promising opportunities for collaboration. Both partners should engage in high level information exchange and brainstorming to elicit common areas of interest for partnerships. There has to be a commitment on both sides to break down barriers within their respective organizations in order to facilitate the partnership. Partners should always strive for a partnership of equals with shared decision-making and a win-win approach to all situations.

(vii) consistent engagement with partners - Strong, productive partnerships with industry require a degree of structure that academics may find uncomfortable. The right structures help nurture successful partnerships. Establish clear goals and identify a single point of contact for both the academe and the industry partner who will serve as the link between the university and the company and manage the respective internal relationships with the different personnel who will be involved on both sides. Recognize that both universities and companies are complex, unrelated systems that need to be understood. Linkage mechanisms have to be properly set up and linkage programs have to be properly managed within established and clearly understood management mechanisms.

(viii) continuity among staff members – The key issue is to have people who “cross boundaries”, people who are multidisciplinary individuals who can devote time to continuously follow industry collaboration and commit to building deep

Models and Best Practices for University-Industry Linkages 17

partnership ties over the long term. Both the academic and industry staff will be bridge-builders who can engage the different people who will be involved in different phases or activities.

(ix) creating synergy - The success or failure of the partnership is largely dependent on the synergy of intent or motivation, the reaping of mutual benefits by partners, and the ability to sustain and deepen the partnership towards a potential permanence, longevity and depth. Without synergy among partners, it may likely be that goals are not met, benefits are not harnessed and partnership becomes short-term and transitory.

C. Partnership Construct and Structure

Initially, the deployment of its existing Service Management Programs (SMP/eSMP) will be the cornerstone for defining strategic partnership arrangements between industry and academe with the end goal of increasing the supply of qualified talent to and supporting industry growth over the long term. It is envisioned that other industry courses will be developed as the partnership deepens and matures. Structure - Given the complexity and competitive nature of the industry, the knowledge hub will be utilized to help build the partnership networks, to improve access and flow of talent to the industry and to seek creative synergies that are necessary for the academe and other stakeholders to respond to the pressing need for qualified talent. Several partnerships “nodes” will be created to imbed the SMP/eSMP in higher education institutions nationwide to support as many universities in effectively and systemically contributing to addressing the talent gap regardless of location. The KH therefore is seen as the integrating structure and agreements between universities and industry will include the KH as the support entity. The KH will ensure synergy and complementation of benefits to partners and stakeholders and its appreciation and recognition of the same. The KH will serve as the backbone for sustaining I/A partnerships. Similar to the Austin model, the Partnership collaboration Continuum Model will allow time for both the academe and the industry to ensure that key I/A champions are identified and involved, policies are developed, key partnership areas for collaboration are scoped out and managerial and financial resources are made available to build the partnership over the long term. Central to the development of the partnerships is the strategic role that IBPAP will play in providing direction and sustaining the partnerships through its participation in the KH. Figure 4 illustrates the functional process for building the IT-BPM I/A partnership networks.

18 Deliverable 3

Figure 4: Knowledge Hub Functionality

This functional process provides a practical approach for developing the industry-academe partnerships. It defines better the nature and mechanisms of the partnership, set the expectation on the depth of engagement and provide for the sustainability framework of the partnership and its potential for long-term collaboration or “stickiness”.

D. Sustainability Mechanisms

Financial models for any revenue sharing, fund generation or fund utilization will be established based on the value proposition and nature of the initiative (e.g. research, consulting, curriculum development, certification etc.) Clearly, if industry demands more from students, leading to increased costs, either government or the industry will have to finance. universities on the other hand need to invest in overhauling their learning ecosystems if they want revenues to increase or be sustained. Figure 5 defines “what’s in it for the stakeholders” and defines the flow of benefits and investments. The partnerships will work iteratively to define its actual costs as they jointly identify and implement partnership activities.

Models and Best Practices for University-Industry Linkages 19

Figure 5: Value and Participation

The process will also ensures that, on a program level, the potential impact to the knowledge economy as a tangible benefit is recognized (including building the community of practice for teachers, students and alumni) and short term-impediments to the partnerships are proactively identified and dealt with.

E. Overcoming Challenges and Constraints

Despite the many results and benefits derived from successful partnerships, partnering does not come easy for most universities and industry firms. Below are key interrelated challenges and constraints that need to be overcome so that the partners can work better closely together. (i) Current approach to learning is an issue - Schools teach technical competencies directly, but technical competencies are not the only thing IT-BPM firms are looking for. Moreover, the classroom learning experience does not mirror the work environment. The curricula needs more dynamic environments. The universities need to change how students are learning. This problem is compounded by the fact that government technical panels take a long time to develop curricula. And, even with good curricula, schools do not adopt them fast enough too meet industry needs. The IT-BPM industry need the skills today, not tomorrow.

20 Deliverable 3

(ii) Marketing and communications – Because of the fast paced and competitive nature of the industry, marketing and communications will be very important. Both partners have to intensify marketing efforts to generate enrollment, to promote aspirational career possibilities in the IT-BPM sector or even to secure stakeholder support. Provide easy access to industry and academic information through websites so that stakeholders are fully informed.

(iii) Getting industry to play – Industry must be willing to invest in the partnership and look beyond the short term gains. There is a need to build deeper relationships with universities. They need to engage students more deeply- Build a presence on campus (like building IT laboratories), conduct information sessions, portfolio review, mentorship etc. If the relationship between school and the industry becomes meaningful, brand ambassadors on campus will be created in the process and awareness and acceptance will be hastened. Understand that Industry mechanisms and process differ from that of the universities. Critical to securing industry commitment and support is understanding how they work so that partnership mechanisms can also be imbedded in their systems and processes instead of just branding it as part of their corporate social responsibility (CSR) initiatives which often times are short term, one-time activities.

(iv) Measuring employment – collecting and making information available on the partnership that is easy to access through websites and portals will be key to stakeholder participation and decision making. Information needs to be shared across stakeholders. At this time, there is limited employment data whether from the recruitment or retention side. Existing data does not capture the totality of the educational process. The KH will be the ideal portal to store and access data for all IT-BPM-University partnerships.

List of HEIs for University-Industry Partnerships and Draft Partnership Agreements 21

DRAFT (Jan 30)

Deliverable 4: List of HEIs for University- Industry Partnerships and Draft Partnership Agreements

TA-8164 PHI: Strengthening Knowledge-Based Economic and Social Development – 1 BPAP (46234-001)*

Prepared by

Information Technology-Business Process Association of the Philippines Consultant 30 January 2015

List of HEIs for University-Industry Partnerships and Draft Partnership Agreements 21

I. LIST OF POTENTIAL ACADEME PARTNERS

This document presents a long list of universities and Colleges nationwide who can potentially be partners of the IT-BPM industry in helping address the talent supply gap. A total of 250 universities and colleges were initially selected. These institutions were selected based on a set of criteria that includes location (proximity to a Next Wave City), Centers of Excellence (e.g, Cebu and Manila), school population and academic programs, among others.

All of these institutions are being invited to participate in an Industry-Academe workshops scheduled in April 2015 to discuss potential partnerships for the implementation of eSMP/SMP in their respective schools. A short list of potential partnerships will be prepared based on the results of the workshop and the expression of willingness and commitment of the schools to participate in offering eSMP/SMP.

A final list of partnerships will be developed based on the results of the readiness assessment that will be done jointly by the UPOU, IBPAP and the school. This final process will help identify roles, strategies and timelines for deploying eSMP/SMP in their respective schools and will be the basis for preparing the draft Partnership or Twinning arrangements.

Deliverable 4 22

Table 4: Potential Academe Partners – Manila Name of Institution Address Head Adamson University 900 San Marcelino St., Ermita, City of Manila, NCR 1000 Rev. Fr. Gregorio L. Bañaga, Jr., C.M. AMA Computer University Maximina St., Villa Arca Subdivision, Project 8, Quezon Dr. Amable R. Aguiluz V City, NCR 1106 Arellano University-Manila 2600 Legarda St., Sampaloc, City of Manila, NCR 1008 Mr. Francisco P. Cayco Arellano University-Pasay 3058 Taft Avenue, Pasay City, NCR 1300 Mr. Francisco P. Cayco Asia Pacific College # 03 Humabon Place, Magallanes Village, City of Makati, Dr. Paulino Y. Tan NCR 1232 Ateneo de Manila University - QC Loyola Heights, Katipunan Avenue, Quezon City Fr. Jose Ramon T. Villarin, SJ Bestlink College of the Philippines #1044 Brgy. Sta. Monica, Quirino Hi-Way, Novaliches, Dr. Maria M. Vicente Quezon City, NCR 1117 Central Colleges of the Philippines 52 Aurora Blvd., Brgy. Doña Imelda, Quezon City, NCR Atty. Crispino P. Reyes 1100 Centro Escolar University-Makati 259 Gil Puyat Ave., City of Makati, NCR 1200 Dr. Maria Cristina D. Padolina Centro Escolar University-Manila #9 Mendiola St., San Miguel, City of Manila, NCR 1005 Dr. Maria Cristina D. Padolina City of Malabon University Maya-maya cor. Pampano St., Dagat-Dagatan, Malabon Atty. Ramon M. Maronillo City, NCR 1470 Colegio de San Juan de Letran 151 Muralla St., Intramuros, City of Manila, NCR 1002 Rev. Fr. Tamerlane R. Lana, O.P. College of the Holy Spirit of Manila 163 E. Mendiola St., San Miguel, City of Manila, NCR Dr. Felina Co-Young, DBA 1005 Concordia College 1739 Pedro Gil St., Paco, City of Manila, NCR 1007 Sr. Zenaida Conde D.C. De La Salle University-Manila 2401 Taft Ave., Malate, City of Manila, NCR 1004 Br. Dennis M. Magbanua FSC De La Salle-Araneta University Victoneta Ave., Malabon City, Third District 1476 Br. Narciso S. Erguiza Jr. FSC De La Salle-College of Saint Benilde 2544 Taft Ave., Malate, City of Manila, NCR 1004 Br. Dennis M. Magbanua FSC Don Bosco Technical College - 736 Gen. Kalentong St., City of Mandaluyong, NCR 1550 Fr. Martin M. Macasaet, SDB Mandaluyong Emilio Aguinaldo College 1113-1117 San Marcelino St., Paco, City of Manila, NCR Dr. Jose Paulo E. Campos 1000 Eulogio "Amang" Rodriguez Institute of Nagtahan St., Sampaloc, City of Manila, NCR 1008 Dr. Eduardo S.Caillo Science and Technology Far Eastern University Nicanor Reyes Sr. St., Sampaloc, City of Manila, NCR Dr. Michael M. Alba 1015

Table 4: Potential Academe Partners – Manila Name of Institution Address Head FEU-East Asia College Dr. Michael M. Alba FEU-FERN College Sampaguita Ave., Mapayapa Village, Diliman, Quezon Dr. Michael M. Alba City, NCR 1104 Informatics College Northgate Indo-China Drive, Northgate Cyberzone, Filinvest Mr. Daniel A. Ongchoco Corporate City, Alabang, Muntinlupa City 1770 Informatics College-Quezon City 29 North Avenue, North EDSA, Diliman, Quezon City, Mr. Daniel A. Ongchoco NCR 1104 Jose Rizal University 80 Shaw Blvd., City of Mandaluyong, NCR Dr. Vicente K. Fabella La Consolacion College-Manila 8 Mendiola St., San Miguel, City of Manila, NCR 1005 Sr. Ma. Imelda A. Mora, OSA Lyceum of Alabang #88 GNT Business Center National Road, Putatan, City of Mr. Danilo V. Ayap Muntinlupa, NCR 1772 Lyceum of the Philippines University Muralla St., Intramuros, City of Manila, NCR 1002 Atty. Roberto P. Laurel Manila Central University Epifanio de los Santos Avenue, Kalookan City, NCR 1400 Dr. Aristotle T. Malabanan Mapua Institute of Technology-Makati 333 Gil Puyat Street Extension, City of Makati, NCR 1200 Dr. Reynaldo B. Vea Miriam College Katipunan Road, Loyola Heights, Quezon City, NCR 1101 Dr. Maria Rosario O. Lapus National College of Business and Arts- Commonwealth Ave., Regalado, Fairview, Quezon City, Mr. Cesar C. Meñez Fairview NCR 1118 National University 551 M.F. Jhocson Street, Sampaloc, City of Manila, NCR Mr. Teodoro Jhocson-Ocampo 1008 Navotas Polytechnic College Bangus St., North Bay Boulevard, Navotas City, NCR Ms. Fransisca S. Roque 1485 New Era University No. 9 Central Ave., New Era, Quezon City Dr. Nilo L. Rosas Our Lady of Fatima University (Fatima 120 Mcarthur Highway, City of Valenzuela, NCR 1440 Dr. Caroline S. Enriquez Medical Science Foundation) Our Lady of Fatima University-Quezon City #1 Esperanza St., Hilltop Subdivision, Lagro, Quezon Dr. Caroline S. Enriquez City, NCR 1118 Pamantasan ng Lungsod ng Marikina Brazil St., Greenhights Subd., Phase I, Concepcion Uno, Dr. Dalisay G. Brawner City of Marikina, NCR Pamantasan ng Lungsod ng Muntinlupa NBP Reservation, City of Muntinlupa, NCR Dr. Ellen E. Presnedi Pamantasan ng Lungsod ng Pasay Pasadeña Street, Pasay City, NCR Ms. Yolanda F. Cruz

List of HEIs for University-Industry Partnerships and Draft Partnership Agreements 23 Deliverable 4 24

Table 4: Potential Academe Partners – Manila Name of Institution Address Head Pamantasan ng Lungsod ng Valenzuela Poblacion II, Malinta, City of Valenzuela, NCR 1440 Regent Dr. Nedena C. Torralba Philippine Christian University Pedro Gil corner Taft Avenue, Malate, City of Manila, Dr. Junifen F. Gauuan, Ph.D NCR 1004 Philippine School of Business 826 R. Papa Street, Sampaloc, City of Manila, NCR 1008 Dr. Jose F. Peralta Administration-Manila Philippine School of Business 1029 Aurora Boulevard, Quezon City, NCR 1109 Atty. Benjamin P. Paulino Administration-Quezon City Quezon City Polytechnic University 673 Quirino Highway, San Bartolome, Novaliches, Dr. Salvador M. Enriquez, Jr. Quezon City, NCR 1116 Rizal Technological University - Main Boni Avenue, City of Mandaluyong, NCR Dr. Jesus Rodrigo F. Torres Rizal Technological University - Pasig M. Eusebio Avenue, San Miguel, Pasig City Dr. Luis E. Castañeda San Beda College 638 Mendiola Street, San Miguel, City of Manila, NCR Rev. Fr. Aloysius Ma. A. Maranan 1099 San Sebastian College-Recoletos Claro M. Recto Avenue, Sampaloc, City of Manila, NCR Rev. Fr. Cristopher C. Maspara, OAR 1000 Santa Isabel College 210 Taft Avenue, Malate, City of Manila, NCR 1000 SR. Josie B. Onag, DC St. Clare College of Caloocan Old Zabarte Road, Camarin, Kalookan City, NCR 1422 Dr. Clarita G. Adalem St. Paul University-Manila 680 Pedro Gil Street, Malate, City of Manila, NCR 1004 Sr. Ma. Evangeline Anastacio, SPC St. Paul University-Quezon City Gilmore Avenue corner Aurora Boulevard, Quezon City, Sr. Nilda Masirag, SPC NCR 1100 St. Scholastica's College 2560 Leon Guinto St., Malate, City of Manila, NCR 1004 Sr. Mary Frances Dizon, OSB Technological Institute of The Philippines- 938 Aurora Boulevard, Cubao, Quezon City, NCR 1109 Dr. Elizabeth Q. Lahoz Quezon City The Philippine Women's University System- 1743 Taft Avenue, Malate, City of Manila, NCR 1004 Dr. Jose Francisco B. Benitez Manila

Trinity University of Asia 275 E. Rodriguez Sr. Blvd., Cathedral Heights, Quezon Dr. Josefina S. Sumaya City, NCR 1102 The University of Manila Dr. Emily D. de Leon University of Caloocan City General San Miguel St., Sangandaan, Kalookan City, Atty. Enrico "Recom" Echiverri NCR 1400

Table 4: Potential Academe Partners – Manila Name of Institution Address Head University of Santo Tomas España Boulevard, Sampaloc, City of Manila, NCR 1015 Very Rev. Fr. Herminio V. Dagohoy, O.P. University of the East-Caloocan Samson Road, Kalookan City, NCR Dr. Ester A. Garcia University of the East-Manila Claro M. Recto Avenue, Sampaloc, City of Manila, NCR Dr. Ester A. Garcia 1008 Divine Word College of Laoag General Segundo Avenue, Barangay 12, Laoag City Rev. Fr. Reynaldo Jimenez, SVD (Capital), Ilocos Norte 2900 Northwestern University Don Mariano Marcos Avenue, Laoag City (Capital), Ilocos Mr. Caesar I. Agnir Norte 2900 Mariano Marcos State University Caunayan, Batac, Ilocos Norte Dr. Miriam Edulian Pascua AMA Computer College-Fairview Blk 61 Lot 28-31 Bristol corner Regalado Ave., Fairview, Mr. Amable C. Aguiluz IX Quezon City, Metro Manila AMA Computer College-Makati 5486 South Superhighway corner Gen. Tinio St., Bangkal, Mr. Amable C. Aguiluz IX Makati City, Metro Manila STI College-Caloocan J.Teodoro St., 10th Avenue, Grace Park, Kalookan City, Atty. Monico V. Jacob Metro Manila STI College-Cubao Upper G/Flr Opulent Bldg., EDSA cor, Gen. Roxas St., Ms. Kimerly Bantad Araneta Center, Cubao, Quezon City, Metro Manila STI College-Makati 250 Sen Gil Puyat Ave., Makati City, Metro Manila Ms. Karla Foz STI College-Novaliches G/F Jordan Plains Bldg., Jordan Plains Subd., Quirino Hi- Atty. Monico V. Jacob way, Novaliches, Quezon City, Metro Manila STI Education Services Group - Fairview 70 Regalado Ave., North Fairview, Quezon City, Metro Atty. Monico V. Jacob Manila STI Education Services Group - Global City University Parkway Drive, Fort Bonifacio Global City, Atty. Monico V. Jacob Taguig City, Metro Manila Polytechnic University of the Philippines, Anonas, Santa Mesa, Manila Dr. Samuel M. Salvador Anonas, Santa Mesa, Manila St. Mary's University Bayombong, Nueva Viscaya Rev. Fr. Renillo H. Sta.Ana, CICM, Ph.D.

List of HEIs for University-Industry Partnerships and Draft Partnership Agreements 25 Deliverable 4 26

Table 5: Potential Academe Partners – Northern Luzon Name of Institution Address Head Gordon College McArthur Highway, Dau, Mabalacat, Pampanga, Dr. Arlida M. Pame Mabalacat, Pampanga 2010 Kolehiyo ng Subic Mac Arthur Highway, San Francisco, Mabalacat, Hon. Mayor Jeffrey D. Khonghun Pampanga 2010 Lyceum of Western Luzon - Zambales St. Jerome Street, Sto. Nino, Lubao, Pampanga 2005 Ms. Josette Y. Perez-Daez Ramon Magsaysay Technological City of San Fernando (Capital), Pampanga, City of San Enrico E. Savio University-Botolan Fernando (Capital), Pampanga 2000 St. Benilde Center for Global Competence San Vidal corner Ponce Street, Bayombong, Nueva Mr. Joseph Tabirara Vizcaya 3700 AMA Computer College-Tarlac City Maharlika Highway, Science City of Muñoz, Nueva Ecija Ms. Leda R Amacan 3119 College of the Holy Spirit of Tarlac Maharlika Highway, Cabanatuan City, Nueva Ecija Sister Florencia Tubaña, S.Sp.S. Dominican College of Tarlac Vallarta Street, Poblacion, San Isidro, Nueva Ecija 3106 Msgr. Florentino F. Cinense, DD, Ph.D. STI College-City of Tarlac General Tinio Street, Cabanatuan City, Nueva Ecija, Ms. Cecile D. Dela Rosa Cabanatuan City, Nueva Ecija 3100 Tarlac Christian College Cabanatuan City, Nueva Ecija, Penaflorida, Nueva Ecija Dr. Emmanuel T. Quizon, DD Quirino State University Afan Salvador Street, Guimba, Nueva Ecija 3115 Dr. Reynaldo P. Villamayor Quirino State University - Cabarroguis Bitas, Cabanatuan City, Nueva Ecija 3100 Norma O. Lim AMA Computer College-Angeles City Mabini Extension, Cabanatuan City, Nueva Ecija 3100 Dr. Amable R. Aguiluz V City College of Angeles Bonifacio Street, San Mateo, Isabela 3318 MR. AVERELL LAQUINDANUM Santa Rita College of Pampanga Tuguegarao City (Capital), Cagayan Mr. Rustico G. Coronel St. Mary's Angel College of Pampanga Arranz, Gonzaga, Cagayan Mrs. Susan Ramos STI College-Angeles City Centro 02, Lasam, Cagayan Mr. Conrado M. Dayrit III Nueva Vizcaya State University - Main, 57 College Avenue, Tuguegarao City (Capital), Cagayan Dr. Romeo R. Quilang Bayombong 3500 Saint Mary's University of Bayombong Diversion Road, San Gabriel, Tuguegarao City (Capital), Rev. Fr. Renillo H. Sta. Ana, CICM Cagayan 3500 Central Luzon State University 212 Cortez Street, Centro East, Ballesteros, Cagayan Dr. Ruben C. Sevilleja 3516

Table 5: Potential Academe Partners – Northern Luzon Name of Institution Address Head Nueva Ecija University of Science and McArthur Hi-way, City of Malolos (Capital), Bulacan 3000 Mrs. Analyn Gamit Technology-Atate Nueva Ecija University of Science and , Bulacan, Bulacan 3017 Dr. Ernesto Castro Technology-Fort Magsaysay Wesleyan University-Philippines Barangay Tabe, Guiguinto, Bulacan 3015 Prof. Manuel G. Palomo (Cabanatuan) Isabela State University-Main (Echague) Thelma T. Lanuza Our Lady of the Pillar College-Cauayan Exuperio V. Flores, Jr. University of Perpetual Help System J.P. Rizal St., Balanga City, Bataan 2100 Mr. Manuel Tamayo Cagayan State University-Andrews Dr. Roger P. Perez Cagayan State University-Aparri Dr. Simeon Rabanal, Jr. Lyceum of Aparri Narra Street Tenejero, City of Balanga (Capital), Bataan Rev. Fr. Joel M. Reyes 2100 Centro Escolar University Macarthur Hi-Way, Abangan Norte, Marilao, Bulacan 3019 Dr. Ma. Cristina D. Padolina St. Paul University at San Miguel Salangan, San Miguel, Bulacan 3011 Sr. Sonia Milagros Checa, SPC STI College-Malolos Roman Highway, City of Balanga (Capital), Bataan, City of Mr. Kerwin C. Kaw Balanga (Capital), Bataan 2100 Bataan Peninsula State University Capitol Compound, City of Balanga (Capital), Bataan, City Dr. Delfin O. Magpantay of Balanga (Capital), Bataan 2100 Colegio de San Juan de Letran Fr. Tamerlane P. Lana , O.P. Aurora State College of Technology Dr. Eusebio V. Angara Aurora State College of Technology-Bazal Evi Q. Fontanos Aurora State College of Techonolgy- Casiguran

List of HEIs for University-Industry Partnerships and Draft Partnership Agreements 27 Deliverable 4 28

Table 6: Potential Academe Partners – Southern Luzon Name of Institution Address Head AMA Computer College-East Rizal Marcos Hi-Way, Brgy. Mayamot, Antipolo City, Rizal 1870 Domingo V. Bacani Jr. College of San Benildo-Rizal Sumulong Highway, Brgy. Sta. Cruz, Antipolo City, Rizal Mr. Rodrigo Ko 1870 La Salle College-Antipolo San Luis, Antipolo City, Rizal 1870 Br. Felipe C. Belleza FSC Our Lady of Fatima University-Antipolo Km 24 Sumulong Highway, Antipolo City, Rizal 1870 Caroline S. Enriquez, MD, PD Pamantasang Bayan ng San Mateo Gen. Luna St., San Mateo, Rizal 1850 Ms. Elisa A. Carpio Roosevelt College Cainta Sumulong Hi-Way, Cainta, Rizal 1900 Mr. Romeo P. dela Paz Siena College of Taytay E. Rodriguez Avenue, Brgy. San Isidro, Taytay, Rizal 1920 M. Teresa E. Examen, O.P. University of Rizal System-Angono Ibañez, Angono, Rizal 1930 Gloria P. Sarabia AMA Computer College-Biñan 32 National Highway Canlalay, Biñan, Laguna 4024 Cherry T. Rojas Colegio San Agustin-Biñan Southwoods Interechange, Biñan, Laguna 4024 Rev. Fr. Richard L. Pido, OSA Don Bosco College - Canlubang Jose Yulo Sr. Blvd., Canlubang, Calamba City, Laguna Rev. Fr. Luisito M. Castaneda, SDB 4028 Immaculate Conception Catholic College , Sta. Cruz, Laguna La Consolacion College-Biñan Sto. Tomas, Biñan, Laguna 4024 Sr. Angelita M. Baraero, OSA Lyceum of the Philippines-Laguna Km. 54 National Highway, Calamba City, Laguna 4027 Peter P. Laurel STI College San Pablo Lopez Jaena St., San Pablo City, Laguna 4000 Reginald F. Robles STI Colleges of Luzon - Calamba Campus National Highway, Parian, Calamba City, Laguna 4027 Anarose I. Colarina AMA Computer College-Dasmariñas Governor's Tower 1, Governor's Road Langkaan 1, Alvin Mateo B. Rodriguez Dasmariñas, Cavite 4114 De La Salle University-Dasmariñas Congressional Ave., Dasmariñas, Cavite 4115 Br. Augustine L. Boquer, FSC, Ed.D. Far Eastern College - Silang Metrogate, Silang, Cavite Far Eastern Polytechnic College Sta. Lucia, DBB1, Dasmariñas City, Cavite 4114 Mr. Ben I. Gomez Immaculada Concepcion (Soldier's Hills) Block 5 Phase 2 Soldiers Hills IV, Molino, Bacoor, Cavite Dra. Angelina Eloisa Molina-Mamon Colleges 4102 The Lyceum Of The Philippines - Laguna Lyceum Of The Philippines - Laguna Km. 54 Makiling Calamba City Of Laguna Lyceum of the Philippines-Cavite General Trias, Cavite Mr. Peter P. Laurel Polytechnic University of the Philippines in PUP Calauan, Laguna Campus, Barangay Kanluran, Samuel M. Salvador, Ed. D Calauan Calauan, Laguna, Philippines

Table 6: Potential Academe Partners – Southern Luzon Name of Institution Address Head San Pablo Colleges Hermanos Belen Street, San Pablo City, Laguna 4000 Atty. Vencedor A. Alimario Olivarez College-Tagaytay E. Aguinaldo Highway, Tagaytay City, Cavite 4120 Dr. Eric L. Olivarez San Sebastian College-Recoletos de Manila Blvd., Sta. Cruz, Cavite City, Cavite 4100 Rev. Fr. Emil Jaruda, OAR Cavite STI College Bacoor Unit 3, Solid Manila Bldg., Tirona Hi-way, Bacoor, Cavite Ms. Evelyn A. Catubay 4102 STI College-Dasmariñas STI Bldg. N. Guevarra Street Zone 1, Dasmariñas, Cavite Mr. Arturo B. Lapitan 4114 Technological University of the Philippines- CQT Avenue, Salawag, Dasmariñas, Cavite 4114 Dr. Reynaldo A. Jorda Cavite University of Perpetual Help System GMA Area K., San Gabriel, General Mariano Alvarez, Cavite Dr. Antonio L. Tamayo Campus 4117 Yaman Lahi Foundation - Emilio Aguinaldo Congressional Road East Avenue Burol Main, Jose Paulo E. Campos College Dasmariñas, Cavite 4114 University of Batangas - Lipa , Lipa City, Batangas City Hernando B. Perez AMA Computer College - Lipa Ayala Highway, Lipa City, Batangas 4217 Dr. Gina D. Ocampo AMA Computer College-Batangas City National Rd., Batangas City, Batangas 4200 Mr. Melvin Caseda

De La Salle - Lipa J.P. Laurel National Highway, Lipa City, Batangas 4217 Br. Joaquin S. Martinez FSC, D. Min.

Kolehiyo ng Lungsod ng Batangas , Batangas City, Batangas 4200 Mr. Teodulfo Dequito Kolehiyo ng Lungsod ng Lipa Brgy. Marawoy, Lipa City, Batangas 4217 Atty. Leo S. Latido La Consolacion College Tanauan A. Mabini Avenue, Tanauan City, Batangas 4232 Sr. Emilia S. Lacuarta, OSA

Lyceum of the Philippines University - Capitol Site, Batangas City, Batangas 4200 Peter P. Laurel Batangas STI College-Batangas Noble St. , Batangas City, Batangas 4200 Mr. Wei Hsiung Wu University Of Perpetual Help System Alabang-Zapote Avenue, Pamplona 3, Dr. Arnaldo S. De Guzman

List of HEIs for University-Industry Partnerships and Draft Partnership Agreements 29 Deliverable 4 30

Table 6: Potential Academe Partners – Southern Luzon Name of Institution Address Head DALTA In Calamba City Las Piñas City, 1740 University Of Perpetual Help System National Hi-Way, Sto. Niño, City Of Biñan, Laguna JONELTA In Biñan City University Of Perpetual Help System Alabang-Zapote Avenue, Pamplona 3, Dr. Arnaldo S. De Guzman DALTA In Calamba City Las Piñas City, 1740 University Of Perpetual Help System National Hi-Way, Sto. Niño, City Of Biñan, Laguna JONELTA In Biñan City University of the Philippines Los Baños University of the Philippines Los Baños Dr. Portia G. Lapitan College, Laguna Saint Michael's College Of Laguna Saint Michael's College Of Laguna City Of Biñan 4024 Nestor V. Hadi Philippines Pamantasan Ng Cabuyao Pamantasan Ng Cabuyao 1A Katapatan Village, Brgy. Banay-Banay Cabuyao, Laguna San Pedro College Of Business KM30, Old National Highway, Brgy. Nueva, San Pedro, Administration Laguna, 4023. San Pedro College Of Business KM30, Old National Highway, Brgy. Nueva, San Pedro, Lourdes B. Abdallah Administration Laguna, 4023. Malayan Colleges Laguna Pulo Diezmo Road, Cabuyao, Laguna 4025 Dennis H. Tablante, BS ECE, MEP- ECE Dominican College Of Sta. Rosa Laguna San Lorenzo South, Balibago 4026 Santa Rosa, Laguna City College Of Calamba Old City Hall Compound, Burgos St, Calamba, Laguna Canossa College Canossa College, M. L. Quezon Street, Lakeside Park Subdivision, Azcarate Cir, San Pablo City, 4000, Laguna Laguna Northwestern College (Formerly Laguna Northwestern College-San Lorenzo Ruiz Burgos Laguna Northwestern Institute) St., Siniloan, Laguna Laguna Northwestern College-Corinthian Laguna Northwestern College-Corinthian Center Balibago, Cente Sta. Rosa City, Laguna Laguna Northwestern College-Pacita Laguna Northwestern College-Pacita Pacita Ave., Pacita Complex San Pedro, Laguna Laguna University Recs Village, Brgy Bubukal, Sta. Cruz, Laguna DR. Bonifacio E. Umaclap, PME Saint John Colleges Chipeco Avenue Barangay III City Of Calamba Laguna

Table 6: Potential Academe Partners – Southern Luzon Name of Institution Address Head De La Salle University Science And Laguna Boulevard, LTI Spine Road, Barangays Biñan And De Asis, Ma. Divina Cortez Technology Complex Malamig, Biñan City, Laguna Balian Community Balian, Pangil, Laguna, 4018 Pangil, Laguna International Electronics And Technical C. Mendoza Business Center Nat’l Highway Biñan Laguna Institute Inc. Biñan International Electronics And Technical Lled Bldg, Pabalan Corner, T. Alonzo Street, Calamba Institute Calamba Laguna

List of HEIs for University-Industry Partnerships and Draft Partnership Agreements 31 Deliverable 4 32

Table 7: Potential Academe Partners – Visayas and Mindanao Name of Institution Address Head AMA Computer University-Dumaguete City Martin-Anita Bldg., Cor San Jose and Perdices Sts., Rolando M. Rosales Dumaguete City, Negros Oriental 6200 Colegio De Sta. Catalina De Alejandria Bishop Epifanio B. Surban St., Dumaguete City, Negros Rev. Fr. Thadeu Enrique N. Balongag Oriental 6200 Foundation University Dr. Meciano Road, Dumaguete City, Negros Oriental Dr. Mira D. Sinco 6200 Silliman University Hibbard Avenue, Dumaguete City, Negros Oriental 6200 Dr. Ben S. Malayang St. Paul University Dumaguete L. Rovira Road, Bantayan, Dumaguete City, Negros Sr. Nintha Lucilla N. Baldado, SPC Oriental 6200 ABE International Coll of Business and Luzuriaga Street, Bacolod City, Negros Occidental 6100 Leonora A. De la Cruz Economics-Bacolod AMA Computer College-Bacolod No. 8 San Agustin Street, Bacolod City, Negros Erna Lynn M. Fajarito Occidental 6100 Bacolod City College Taculing Road, Bacolod City, Negros Occidental 6100 Dr. Ma. Johanna Ann R. Bayoneta Colegio San Agustin-Bacolod Benigno S. Aquino Drive, Bacolod City, Negros Rev. Fr. Pederito A. Aparece, OSA Occidental 6100 La Consolacion College-Bacolod Galo-Gatuslao Streets, Bacolod City, Negros Occidental Sr. Gavina F. Barrera OSA 6100 Riverside College Dr. Pablo O. Torre Sr. St., , Bacolod City, Negros Samuel Z. Lee Occidental 5802 STI College-Bacolod 26th Lacson St., , Bacolod City, Negros Occidental 6100 Mr. Francis R. Benedicto University of Negros Occidental-Recoletos Lizares Avenue, Bacolod City, Negros Occidental 6100 Rev. Fr. Emeterio Buñao, OAR University of Saint La Salle La Salle Avenue, Bacolod City, Negros Occidental 6100 Br. Raymundo B. Suplido, FSC, PhD VMA Global College Earl Carol Street, Sum-ag, Bacolod City, Negros Dr. Elizabeth O. Salabas Occidental 6100 West Negros University Burgos Street, Bacolod City, Negros Occidental 6100 Atty. Monico V. Jacob Asian College of Science and Technology- Knights of Columbus Bldg. Capt. Vicente Roa Ext. , Cagayan De Oro Cagayan De Oro City Misamis Oriental 9000 AMA Computer College Sotero Daumar-JR Borja Sts., Cagayan De Oro City, Mr. Peter C. Bacaling Misamis Oriental 9000 Cagayan De Oro College Max Suniel St., Carmen, Cagayan De Oro City, Misamis Dr. Meliton B. Salazar, Jr.

Table 7: Potential Academe Partners – Visayas and Mindanao Name of Institution Address Head Oriental 9000 Capitol University Corrales/Osmeña Streets, Cagayan De Oro City, Atty. Casimiro B. Juarez, Jr. Misamis Oriental 9000 Liceo De Cagayan University Rodolfo N. Pelaez Boulevard, Kauswagan, Cagayan De Mariano M. Lerin, PhD, CPA Oro City, Misamis Oriental 9000 Lourdes College General Capistrano Street, Cagayan De Oro City, Sister Ma. Adelaida C. Huiso, RVM Misamis Oriental 9000 STI Colleges of Mindanao Eagle St., San isidro Village, Kauswagan, Cagayan De Colbert G. Rabaya Oro City, Misamis Oriental 9000 Xavier University Corrales Avenue, Cagayan De Oro City, Misamis Oriental Dr. Roberto C. Yap, S.J. 9000 ABE International College of Business and 17 TKT Bldg. Mabini St., Iloilo City, Iloilo 5000 Mary Joan D. Fernandez Economics-Iloilo AMA Computer College-Iloilo Rizal St., Iloilo City, Iloilo 5000 Renee O. Orale Cabalum Western College Dr. Fermin Caram, Sr. Avenue, Iloilo City, Iloilo 5000 Johnny C. Cabalum Central Philippine University Lopez Jaena Street, Jaro, Iloilo City, Iloilo 5000 Dr. Teodoro C. Robles Colegio de San Jose-Jaro E. Lopez Street, Jaro, Iloilo City, Iloilo City, Iloilo 5000 Ma. Helena Desiree M. Terre, Ph.D. Colegio del Sagrado Corazon de Jesus General Hughes Street, Iloilo City, Iloilo 5000 Ma. Helena Desiree M. Terre Iloilo Doctors' College West Avenue, Molo, Iloilo City, Iloilo 5000 Rolando R. Padilla, M.D. John B. Lacson Foundation Maritime M.H. Del Pilar Street, Molo, Iloilo City, Iloilo 5000 University John B. Lacson Foundation Maritime Sto. Niño Sur,Arevalo, Iloilo City, Iloilo 5000 Atty. Lorna D. Gellada University-Arevalo St. Anne College of Iloilo Cor. M.H. del Pilar &Lopez Jaena Sts., Molo, Iloilo City, Atty. Alma E. Natividad, CPA Iloilo 5000 St. Paul University of Iloilo General Luna Street, Iloilo City, Iloilo 5000 Sr. Carolina S. Agravante, SPC St. Therese-MTC Colleges-La Fiesta M. H. del Pilar Street, Iloilo City, Iloilo 5000 Dr. Ma. Teresa S. Sarabia St. Therese-MTC Colleges-Magdalo Magdalo St., La Paz, Iloilo City, Iloilo 5000 Atty. Arturo A. Sebastian STI College-Iloilo Mission Road, Iloilo City, Iloilo 5000 Ms. Eileen Grace P. Benedicto University of Iloilo Rizal Street, Iloilo City, Iloilo 5000 Dr.Meliton B. Salazar, Jr.

List of HEIs for University-Industry Partnerships and Draft Partnership Agreements 33 Deliverable 4 34

Table 7: Potential Academe Partners – Visayas and Mindanao Name of Institution Address Head University of San Agustin General Luna Street, Iloilo City, Iloilo 5000 Raul M. Marchan, O.S.A. Western Institute of Technology Luna, Iloilo City, Iloilo 5000 Engr. Richard S. Salas AMA Computer College-Davao 123 Gen. Malvar Street, Davao City, Davao Del Sur 8000 Mr.Ernesto Raphael V. Robillo Assumption College of Davao J.P. Cabaguio Avenue, Davao City, Davao Del Sur 8000 Sr. Concepcion P. Gasanag, m.a., Ed.D. Ateneo de Davao University E. Jacinto Street, Davao City, Davao Del Sur 8000 Fr. Joel E. Tabora, S.J. University of Mindanao Bolton Street, Davao City, Davao Del Sur 8000 Dr. Guillermo P. Torres, Jr. University of the Immaculate Conception Fr. Selga Street, Davao City, Davao Del Sur 8000 M. Ma. Asumpta M. David, RVM AMA Computer College-Cebu City Jones Avenue, Cebu City, Cebu 6000 Dr. Amable C. Aguiluz IX Asian College of Technology Colon St., Brgy. Kalubihan, Cebu City, Cebu 6045 Engr. Rodrigo A. Abellanosa Cebu Institute of Technology-University Natalio Bacalso Avenue, Cebu City, Cebu 6000 Mr. Gregorio L. Escario Cebu Technological University - Main R. Palma St., M.J. Cuenco Avenue, Cebu City, Cebu Dr. Bonifacio S. Villanueva 6000 Saint Paul College Foundation 279 Bulacao, Pardo, Cebu City, Cebu 6000 Randolph M. Libres Saint Theresa's College of Cebu Don Ramon Aboitiz Street, Cebu City, Cebu 6000 Sister Celeste Ma. Purisima Pe, ICM Salazar Colleges of Science and Institute of 211 N. Bacalso Avenue, Cebu City, Cebu 6000 Eng'r. Doroteo M. Salazar Technology Southwestern University Villa Aznar-Urgello St., Cebu City, Cebu 6000 Peter S. Aznar STI College-Cebu City 40 Salinas Drive,Lahug, Cebu City, Cebu 6000 Ms. Rebecca G. Ancheta University of Cebu corner Sanciangko Street & Osmeña Boulevard, Cebu Atty. Augusto W. Go City, Cebu 6000 University of San Carlos P. Del Rosario Street, Cebu City, Cebu 6000 Fr. Dionisio M. Miranda, SVD, MA, STD University of San Jose-Recoletos Corner P. Lopez & Magallanes Streets, Cebu City, Cebu Rev. Fr. Enrico Peter A. Silab, OAR 6000 University of Southern Philippines Salinas Drive, Lahug, Cebu City, Cebu 6000 Dr. Alicia P. Cabatingan Foundation ABE International College of Business and Luzuriaga Street, Bacolod City, Negros Occidental 6100 Economics-Bacolod AMA Computer College-Cagayan De Oro Daumar-JR Borja Sts., Cagayan De Oro City, Misamis City Oriental 9000 Computer College of the Visayas Mabini St., Iloilo City, Iloilo 5000

Table 7: Potential Academe Partners – Visayas and Mindanao Name of Institution Address Head De Paul College E. Lopez Sreet, Jaro, Iloilo City, Iloilo 5000 STI-College of Mindanao J.P Laurel Avenue, Davao City, Davao Del Sur 8000 St. Vincent College 210 Jones Avenue, Cebu City, Cebu 6000 Cebu Technological University R. Palma St., M.J. Cuenco Avenue, Cebu City, Cebu 6000 Informatics-Uptown Cebu General Maxilom Avenue, Cebu City, Cebu 6000 St. Paul College Foundation-F. Ramos F. Ramos Corner Junquera St., Cebu City, Cebu 6000 Asian College of Technology-Talisay corner P. del Rosario & Leon Kilat Sts., Brgy. Kalubihan, Cebu City, Cebu Cebu International School Talamban, Cebu City, Cebu Divine Mercy Computer College Tanchan Bldg., Colon Street, Cebu City, Cebu 6000

List of HEIs for University-Industry Partnerships and Draft Partnership Agreements 35 36 Deliverable 4

II. DRAFT TRIPARTITE AGREEMENT SCHOOL, IBPAP, UPOU

MEMORANDUM OF AGREEMENT

KNOW ALL MEN BY THESE PRESENTS:

This agreement made and entered into this ______day of ______in the City of ______by and among:

(school) , an educational institution duly organized and existing under the laws of the Philippines with principal offices at ______herein represented by its President, ______, and hereinafter referred to as “(school initials)”;”

and

The IT-BUSINESS PROCESSING ASSOCIATION OF THE PHILIPPINES, a duly registered private organization operating pursuant to the laws of the Philippines, with office address at 5th Floor, C2 Building, Bonifacio High Street Central, 30th Street cor. 7th Avenue, Bonifacio Global City, Taguig, represented herein by its President and CEO, MR. JOSE MARI MERCADO, hereinafter referred to as “IBPAP”

and

The UNIVERSITY OF THE PHILIPPINES OPEN UNIVERSITY, a government educational institution established, with principal office at, Los Banos, Laguna, represented herein by its Chancellor, DR. GRACE J. ALFONSO, hereinafter referred to as the “UPOU”;

W I T N E S S E T H that:

WHEREAS, “”, cognizant of the pressing need to make its course offerings more attuned to the needs of industry and is ready, willing and able to implement the Service Management Program (SMP) Specialization Track for its BA and IT degree programs, and the Basic English Skills Training (BEST) and Advanced English Pre- employment Training (AdEPT) for its faculty and students to address this need;

WHEREAS, IBPAP has articulated the skills and competencies that the BPO and IT industries deem essential to hiring; to this end it has developed a fully implementable online and onsite Service Management Specialization track for the BA and IT degree programs and the BEST and AdEPT for faculty development and student competency strengthening;

WHEREAS, UPOU is the pioneer institution in distance and e-learning programs. It is the only distance education institution in Southeast Asia that offers most of its courses online;

NOW THEREFORE, for and in consideration of the foregoing premises, the parties to this agreement hereby agree on the following:

List of HEIs for University-Industry Partnerships and Draft Partnership Agreements 37

1. Responsibilities 1.1. IBPAP undertakes to do or cause the following to be done: 1.1.1. Jointly with the UPOU, conduct a Readiness Assessment to determine the school’s overall preparedness for: 1.2.1.1. Offering the online and onsite Service Management Specialization Track for students enrolled in its BA and IT degree programs; 1.2.1.2. Conducting the Basic English Skills Training and Advanced English Pre-employment Training Classes; 1.2.1.3. Conducting GCAT or Philnits for faculty and GCAT for students 1.2.1.4. Provide the University with a list of the infrastructure requirements attendant to SMP, BEST, AdEPT and GCAT; 1.2.2. Jointly with the UPOU, determine the overall suitability for SMP training and/or BEST and AdEPT training and/or Elites of the faculty nominated in section 1.3.4 below; 1.2.3. Implement a Certification Process for BEST, AdEPT for all teachers who underwent the BEST and AdEPT classes as defined in Annex A hereto; 1.2.4. Implement a Certification Process for SMP for all teachers who underwent the SMP Teachers Training, as defined in Annex B hereto; 1.2.5. Implement a Certification Process for Elites for all teachers who underwent the Elites Teachers Training, as defined in Annex ? hereto; 1.2.6. To make available to the faculty of the SUC all SMP-related courseware, in digital format ,; 1.2.7. To make available all BEST and AdEPT learning materials, in printed and digital format whichever is applicable, to the SUC; 1.2.8. Regularly inform the SUC through Project Reports submitted on a quarterly basis, or more often as the need arises, about the status of implementation of the programs and projects, problems and challenges that may arise in the course of the Project; 1.2.9. Provide for a stipend administration mechanism for teachers who have successfully completed their SMP training and who have subsequently been given a teaching load for SMP subject(s) for AY 2013 - 2014; 1.2.10. Provide for a similar stipend administration mechanism for teachers trained in BEST and AdEPT who are conducting these training classes. 1.2.11. Provide for a similar stipend administration mechanism for teachers trained in ELITES who are conducting these training classes. 1.2.12. Undertakes to provide or assign at least one BPO Industry Partner company to the SUC

38 Deliverable 4

1.3. “” undertakes to do or cause the following to be done: 1.3.1. Provide IBPAP and UPOU with any and all information the latter requires for the efficient and transparent conduct of its Readiness Assessment; 1.3.2. Designate a qualified Focal Person tasked with coordinating and monitoring any and all activities attendant to the efficient implementation of this Agreement ; 1.3.3. Designate a fulltime qualified IT personnel to support and IT equipment to be used for the delivery of the courses and a sufficient number of proctors to administer the Global Competitiveness Assessment Tool, BEST, Adept as per a testing schedule to be mutually determined at a later; 1.3.4. Select and nominate qualified faculty for training in BEST, AdEPT and the Service Management Specialization, and Elites Track based on a set of criteria provided by IBPAP and UPOU as per Annex C; 1.3.5. Offer the Service Management Specialization Track in their BA and IT degree courses beginning AY 2015 - 2016. In this regard, the University shall secure the Board Approval, Authority to Operate or any similar document needed for this purpose; 1.3.6. Undertake to commit the trained faculty to teach SMP subjects beginning AY 2015 - 2016 to any and all BA and IT classes that the University administration shall designate, subject to existing rules on the matter; 1.3.7. Undertake to commit the trained faculty to teach BEST and AdEPT beginning AY 2015 - 2016 to any and all classes that the University administration shall designate, subject to existing rules on the matter; 1.3.8. Shall endeavor to provide the infrastructure needed to efficiently implement GCAT, BEST, AdEPT and SMP and deliver the course content to the students as effectively as possible. In the event that IBPAP has determined that certain essential infrastructure components are not present, the University shall make arrangements to undertake remedial measures to make sure that the required infrastructure is made available for the delivery of the courses. 1.3.9. Said infrastructure requirements shall include but is not limited to: 1.3.9.1. A room that can be used as a computer laboratory that can accommodate at least 25 computer units conforming to specifications enumerated in the Infrastructure Checklist (Annex D); 1.3.9.2. Telco provisions for Internet connectivity with at least 5 mbps bandwidth upload speed that can be dedicated to specific online testing activities including GCAT administration; 1.3.9.3. An LCD projector with minimum 2500 ansi lumens and screen and any and all peripherals, teaching materials for this purpose;

List of HEIs for University-Industry Partnerships and Draft Partnership Agreements 39

1.4 UPOU undertakes to do or cause the following to be done: 1.4 Take the lead in conducting the readiness assessment prior to the implementation of the eSMP teachers training and the deployment of the same in the school. 1.5 Conduct assessment/certification for the teachers who have completed the eSMP. 1.6 Make available all course materials of the eSMP courseware online for free.

2. Limitations 2.2. All parties shall keep confidential any and all information on, or related to this Agreement, and shall not release any information, except with the prior approval of all the parties. 2.3. All notices, requests, demands or other communications permitted or required under this MOA shall be in writing and sent by personal delivery, courier, facsimile or electronic transmission. Notices shall be sent to the addresses listed below, or to such other address as either party may specify in writing. 2.4. In case of disputes arising from the implementation of this Agreement, the parties agree to first exhaust all remedies between themselves guided by the proper provisions of the Implementing Guidelines and applicable law, before resorting to court action. 3. Term 3.2. The Memorandum of Agreement shall have a term of two (2) years, subject to mutual extension by the parties for another two (2) years. 3.3. This Agreement may be modified only by written approval of all parties, and shall become valid and effective upon signing by all parties. 4. Capacity and Authorization The parties herein warrant that they have the authority and power to enter into this agreement. 5. Termination/Dissolution In case one party violates any the provisions of this Agreement, the other party may terminate the same, and such termination shall take effect after the lapse of thirty (30) days from receipt of the notice of termination by the other party. During the said thirty-day period, the parties shall amicably negotiate to immediately resolve all disputes concerning the implementation of said Agreement, failing which the termination shall take effect after the lapse of said period.

40 Deliverable 4

IN WITNESS WHEREOF, the parties through their authorized representatives have affixed their signatures this ___ of ______2013.

IT-BUSINESS PROCESSING ASSOCIATION OF THE PHILIPPINES

By: By:

JOSE MARI MERCADO President President & Chief Executive Officer (Board Res. No.__dated Feb. __, 2013 attached as Annex “H”)

UNIVERSITY OF THE PHILIPPINES OPEN UNIVERSITY

By:

GRACE J ALFONSO, Ph.D. Chancellor (Per UPOU Resolution No._____dated ______attached as Annex “G”)

SIGNED IN THE PRESENCE OF:

List of HEIs for University-Industry Partnerships and Draft Partnership Agreements 41

ACKNOWLEDGEMENT

REPUBLIC OF THE PHILIPPINES) MAKATI CITY )S.S.

BEFORE ME, a Notary Public, for and in the City of Makati, Philippines, this ______day of ______2013 at ______, personally appeared the following persons, with their Government Identification cards, personally known to me to be the same persons who executed the foregoing instrument and they acknowledged to me that the same is their free and voluntary act and deed, and that of the corporations or entities herein represented, to wit:

NAME GOVERMENT ID Date & Place Issued

This instrument refers to a Memorandum of Agreement, consisting of six (6) pages including this page on which this Acknowledgement is written.

WITNESS MY HAND AND SEAL on the date and at the place first above mentioned.

Doc. No. ; Page No. ; Book No. ; Series of 2013.

ENCL:

ANNEX A - The Infrastructure Checklist ANNEX B - Faculty Selection Criteria ANNEX C - BEST / AdEPT Faculty Certification Process ANNEX D - SMP Faculty Certification Process

42 Deliverable 4

III. DRAFT BILATERAL AGREEMENT SCHOOL AND INDUSTRY PARTNER

MEMORANDUM OF AGREEMENT

KNOW ALL MEN BY THESE PRESENTS:

This agreement made and entered into this ____ day of ______, 20155, at Bonifacio Global City, by and between:

______(school)______, an educational institution duly organized and existing under Philippine Laws with principal offices at ______, herein represented by its President, ______, and hereinafter referred to as “(school initials)”,

and

_____company____, a corporation duly organized and existing under Philippine Laws with principal offices at______, herein represented by its President, ______, who is duly authorized for this purpose and hereinafter referred to as (company initials) or the Industry Partner.

W I T N E S S E T H that:

WHEREAS, school offers in its curriculum the Service Management Specialization Track intended to expose its students to the challenges of the IT-BPO industry environment as well as provide business and academe the opportunity to collaborate in the education of future professionals;

WHEREAS, under the said program, students of school, also referred to as “Intern or Interns”, are assigned to sponsoring companies where they perform projects, activities and tasks along their lines of specializations on a full-time basis for a period of two (2) trimesters or 1 semester, approximately 6 months;

WHEREAS, company desires, and agrees to become a sponsoring company (or Industry Partner) under such terms and conditions as hereinafter agreed by the parties;

List of HEIs for University-Industry Partnerships and Draft Partnership Agreements 43

NOW THEREFORE, for and in consideration of the foregoing premises, the parties have agreed as follows:

1) Responsibilities - school 1.1 school shall appoint a Point Person for the Service Management Program including the Language Programs (BEST and AdEPT) who will coordinate with the company on the following: 1.1.1 Site Visit and/ or Faculty Immersion Program 1.1.2 Career Orientation 1.1.3 Internship Program 1.2 On the Service Management Internship Program. 1.2.1 school shall request from company its checklist of requirements. 1.2.2 For scheduling and availability purposes, school shall request company to choose its sponsorship of students under any of the following batch schedules: (preferably Second semester of their Senior Year). 1.2.3 After receipt of the Requirements Checklist, school shall provide company with a list of students qualified to undergo Internship, which shall be accompanied by individual Student Fact Sheets. 1.2.4 Upon written advice from company, school shall notify and request the students to report to company for the screening and selection processes. 1.2.4.1 During the internship, school shall monitor the Intern’s attendance and compliance to the prescribed work hours with company. 1.2.4.2 For coordination purposes, school designates its Career and Placement Officer as the point person on its behalf, and who shall act as liaison between the partners.

1.2.5 school shall ensure compliance by its faculty members, personnel, and students participating in the site visits to company premises, immersion, and internship programs (“Participants”) with any and all applicable company requirements, rules and regulations, including but not limited to, confidentiality and information security guidelines. school shall indemnify and hold company harmless for any and all claims and damages resulting from the fault or negligence or omissions of school and/or any Participant.

44 Deliverable 4

2. Responsibilities of Industry Partner 2.1 As school counterpart, company shall appoint its point person, who shall coordinate with, and act as liaison with school for this partnership program.

2.2 company shall conduct a mutually agreed upon site visit and/or faculty immersion program in accordance with IBPAP prescribed methodology in order to gain better appreciation and understanding of the courses that the faculty shall teach. Incidental and out-of-pocket expenses (e.g. transportation of the faculty and meals) related to the site visit and faculty immersion will be borne by school.

2.3 company shall conduct career orientation at the start of the school year to enlighten the students to choose a career in the IT/BPO. company schedules touch points during the entire school year to further learn about the company and the industry.

2.4 company may, at its option, provide industry practitioners, as “Industry- Professors” or e-tutors, in support of SMP classroom/onine teaching and learning, practices which may be conducted in the following manner:

a. Industry-Professor as Teacher Trainer, following prescribed content and methodology by BPAP, facilitating a minimum of one Teacher Training Conduct per school year; b. Industry-Professor as Resource Person or e-tutors, providing classroom (virtual or brick and mortar) teaching support by way of: b.1 Providing additional case studies relevant to the subject matter and essential to Industry practice, in order to provide context and real work examples of the concepts taught; and

b.2 Conducting a number of classes co-teaching with faculty, necessary to enhance subject or topic, the schedules of which are negotiated with faculty handling the class. c. Industry-Professor as faculty committing to deliver a subject at specific schedules, following prescribed number of units and / or class hours within one semester or term; and

2.5 On the Internship Program: 2.5.1 Upon receipt of the request from school, company shall accomplish and submit the Requirements Checklist to school. Thereafter, company shall then choose from the list of senior students qualified for Internship submitted by school and, thereafter notify school of the selected students. It is understood and agreed that company shall have the sole discretion and prerogative to select and choose the students who

List of HEIs for University-Industry Partnerships and Draft Partnership Agreements 45

will undergo the Internship Program through its screening and selection process, in accordance with its requirements and based on its standards/ qualifications or criteria. 2.5.2 Upon the completion of the Intern’s training, company shall issue, through its Human Resources Division, a “Certificate of Completion” showing the number of hours rendered by the Intern, the period covered, the department assigned and other pertinent details relevant to the said internship training. 2.5.3 company may maintain the right to recruit, select, offer jobs to interns; and likewise position the Industry Partner brand to potential future hires.

3. Other Provisions 3.1 The Parties understand and agree that school Interns are not employees of company and therefore no employer-employee relationship exists between them and company. However, company may grant subsidies, allowances or stipends to Interns, at its sole prerogative, in accordance with and subject to the company’s policies, procedures and practices. It is also understood that the Interns are not Students of company, the latter only agreeing to be a sponsor for the activities as described in this Agreement. Likewise, school interns are subject to the rules and regulations, as well as policies and procedures of company. Upon acceptance of their internship, company shall advise all Interns of these Company rules and regulations and policies and require from each of them their compliance with said rules and regulations.

3.2 In case of any breach by the students of the company rules and regulations, negligently or willfully, school, upon prior written notice from the company shall withdraw or cause the withdrawal of the Intern from the Internship Program under this Agreement, provided that company reserves the right at any time to remove from company premise and/or refuse admission to any Intern for any reasonable cause determined by company in its sole discretion. The withdrawal of the Intern from the Internship Program shall be without prejudice to such other legal rights and remedies that company may have on the Intern as a consequence of such breach of violation nor shall such withdrawal preclude nor bar school from imposing may disciplinary action on the Intern as it may determine by reason of such breach or violation. Any liability, to third parties or otherwise, arising from the violation of this provision shall be the joint and solidary responsibility of the Intern and school to company.

3.3 All Interns shall strictly abide by the principles of confidentiality with respect to any material or confidential information of company. For this purpose, school shall ensure that Interns shall be properly briefed and advised on the prohibition against disclosure of confidential or restricted information acquired during his internship as well as the consequences of such violation. Any liability arising from the violation of this provision on confidentiality shall be the joint and solidary responsibility of the Intern and school to company.

46 Deliverable 4

3.4 In addition, all Interns shall exercise due diligence and care in handling company equipment, materials, resources or any other company property which they have handled or used in connection with or in the course of their internship with the Company. For this purpose, school shall ensure that Interns shall be properly briefed, reminded and advised on the proper handling and use of company equipment, materials or resources. Any liability arising from any violation of this provision shall be joint and solidary responsibility of the Intern and school to company.

3.5 As an Industry Partner, company shall be entitled to the following: (i) permission to use school name and company logo in the former’s marketing efforts via advertising and promotional campaigns, subject to school prior approval for every event, which shall not be unreasonably withheld; and (ii) free access to the school graduates list for possible hiring, upon prior written request.

3.6 company may, at its sole discretion, commit to one or more of but not limited to the following: a. Provide for the infrastructure of partner school b. Students who are a hired agree to a ‘pay-forward scheme’ c. Fund scholarships d. Engage the alumni of the schools to be campus ambassadors

For possible mechanics to the above, please see Appendix A for sample

4. in no event shall company be liable for any special, indirect, exemplary, incidental, punitive, or consequential damages arising out of or relating to this agreement in any way, including, but not limited to, loss of data, lack of services, or loss of revenues or profits, even if it has been advised, knows or should know of the possibility of the foregoing. company’s maximum liability to school or any third party arising out of or from this agreement for any and all claims (as defined below), and regardless of the form of action will be limited to proven and actual out-of- pocket expenses, which are reasonably incurred by school’s this limitation of liability is not applicable to school obligation to indemnify enabler in connection with this agreement.

For purposes of this Agreement, “Claims” refer to reasonable, proven and actual losses, liabilities, claims, damages, costs, suits, actions, proceedings and expenses (including reasonable attorneys’ fees) solely and directly caused by each party’s performance of its obligation under this Agreement. However, company shall ensure that the Intern/ student-trainee shall be free from any abuses and all forms of discrimination during the training and shall promote their welfare.

List of HEIs for University-Industry Partnerships and Draft Partnership Agreements 47

5. This Agreement shall have a term of two (2) years, commencing from ______and shall be automatically renewed for a similar period unless either party notifies in writing the other of its decision not to renew before the expiration of the term or renewal term, as the case may be. Each party, however, shall have the right to terminate this Agreement for any reason whatsoever, upon prior written notice at least fifteen (15) days before termination date.

IN WITNESS WHEREOF, the parties hereto have signed this Agreement on the date and place first above-written.

By: By:

SIGNED IN THE PRESENCE OF:

48 Deliverable 4

ACKNOWLEDGEMENT

REPUBLIC OF THE PHILIPPINES) MAKATI CITY )S.S.

NAME GOVERMENT ID Date & Place Issued

This instrument refers to a Memorandum of Agreement, consisting of six (6) pages including this page on which this Acknowledgement is written.

WITNESS MY HAND AND SEAL on the date and at the place first above mentioned.

Doc. No. ; Page No. ; Book No. ; Series of 2015.

ENCL:

ANNEX A – Faculty Selection Criteria

List of HEIs for University-Industry Partnerships and Draft Partnership Agreements 49

IV. DRAFT ENABLER AGREEMENT IBPAP AND BPO CAREER HUB

MEMORANDUM OF AGREEMENT

This agreement is entered by and between:

CAREERHUB NETWORK CORP. (BPO Career Hub), a corporation duly organized and registered in the Philippine Securities Exchange Commission with principal office at the Unit 3508, 35/F Robinsons Equitable Tower, ADB Avenue, Ortigas Center, Pasig City, represented in this act by Judy B. Whisenhunt, President, hereinafter referred to as “BCH”.

And

IT & Business Process Association of the Philippines, a duly recognized institution of learning under Philippine law with principal address at 5th floor C2 Building High Street Central, 30th Street corner 7th Avenue Bonifacio Global City, Taguig, represented in this act by Jose Mari Mercado, President and CEO – Talent Development, hereinafter referred to as “IBPAP”.

WITNESSETH: That

WHEREAS, BCH’s primary purpose is to engage in the business of providing, creating, developing, promoting, maintaining software development, content development and online marketing using the latest information and communication technology (ICT). BCH is an online portal that caters to the Business Process Outsourcing (BPO) and Knowledge Process Outsourcing (KPO) industries committed to helping Filipinos find gainful employment and support Information Technology- Business Process Outsourcing (ITBPO) industry growth of the Philippines;

WHEREAS, IBPAP’s mission is to promote the competitive advantages and the growth potential of the Philippines in existing and new areas of outsourcing and support the industry in areas such as offshore marketing, education and training, security and privacy, legislation and public policy, among others.

A. BCH RESPONSIBILITIES:

1. Act as an online enabling member and partner for IBPAP’s Service Management Program (SMP) and other initiatives related but not limited to its talent development program(s). 1.1. BCH to join IBPAP’s project delivery team during on-site promotion(s), as available and applicable, with partner State University and Colleges (SUCs) and Higher Education Institutions (HEIs). 1.2. BCH to help provide speakers and other relevant resources, as available and applicable, to SUC/HEIs during IBPAP sponsored or endorsed career fairs and/or similar activities. 2. Provide the existing and/or develop online recruitment and digital marketing facilities, features, and/or services that will promote and operationally support IBPAP’s Service Management Program (SMP). 3. Provide the existing and/or develop online recruitment and digital marketing facilities, features, and/or services that will promote and support the market awareness, talent sourcing and acquisition requirement of its association members and partner associations. 3.1. BCH agrees to implement and extend “member rates” to association members for its products and services including, but not limited to: Job Posting, Display Ads, Email/SMS Blast, Social Media Management

50 Deliverable 4

3.2. BCH agrees to refer prospective members to IBPAP as a result of the non-member’s interest to become an active participant to the various programs of the association and its program partners. 4. Provide IBPAP periodic updates and/or reports to the relevant programs implemented during the duration of this agreement. 4.1. IBPAP, in some occasions, may be provided access to reports and/or confidential data in relation to its compliance to the regulatory requirements of the Commission on Higher Education (CHED) on the Service Management Program (SMP).

B. IBPAP RESPONSIBILITIES:

1. Endorse and promote BCH as an enabling member and partner of IBPAP’s Service Management Program (SMP) and other initiatives related but not limited to its talent development program(s). 2. Support BCH’s market awareness and acquisition programs, projects, and campaigns that are related to supporting IBPAP’s and the industry’s general growth and development. 2.1. Endorse and promote BCH to its association members and partner associations for the use of BCH’s online recruitment and digital marketing facilities, products, and services that will support the realization of the association members’ talent awareness, sourcing, and recruitment requirements. 2.2. IBPAP to promote and include BCH in its various promotional channels related to the Service Management Program (SMP). 2.3. Invite and provide industry experts, speakers and/or other relevant resources to career- oriented activities for SUC/HEIs, career fairs and/or similar activities. 3. Provide relevant and important industry updates, information and/or content that will provide significant improvement or effect on the following: 3.1. Scope and terms and conditions of the agreement and partnership that is related but not limited to IBPAP’s Service Management Program (SMP). 3.2. Product and/or service(s) provided and/or offered by BCH to the association, its members, and/or partner association.

C. TERM

This Agreement shall take effect within one-(1) year from the date of signing. Renewal of the Agreement shall be upon a written agreement by both parties.

D. WARRANTIES AND INDEMNITIES

Either BCH or IBPAP shall save and hold each other, its agents and sub-contractors free and harmless from any and all loss and damage (including court costs and attorney’s fees) arising out of, connected with, or as a result of any inconsistency with, failure of, breach by either party of any warranty or representation contained in this Agreement, including, without limitation, any claim by any third party in connection with the foregoing.

E. LIABILITY

Neither party shall be held liable to the other in the event that a party is unable to perform any obligation under this Agreement due to any cause outside the party’s reasonable and justifiable control, including acts of God, industrial action, default or failure of a third party, failure of equipment or transmission difficulties, government action, or interruption of services.

BCH disclaims any warranty or responsibility that the content(s) will be error free. BCH shall, however, implement sufficient and immediate procedures to ensure accuracy of content(s).

IBPAP disclaims liability for any error, omission, or misstatement in or arising from the content(s). IBPAP disclaims any responsibility or warranty to exercise any editorial control over the content(s).

List of HEIs for University-Industry Partnerships and Draft Partnership Agreements 51

F. INTELLECTUAL PROPERTY

BCH shall remain the author and owner of BCH’s web page(s) and any data provided by BCH, including graphics and other data incorporated into and all intellectual property rights to BCH.

IBPAP shall remain the author and owner of the IBPAP properties, including web page(s) and logo(s), magazines, posters and other advertising materials incorporated into, and all intellectual property rights created or acquired by IBPAP.

G. CONFIDENTIALITY

BCH and IBPAP agree that, during the Term of this Agreement, it will keep confidential and will not disclose to any third party, without the prior written consent of either party, any information related to the details of this Agreement unless such information is required by law to be disclosed.

H. TERMINATION

This Agreement can be pre-terminated by either party for just cause if one of either party is unable to comply with its responsibilities and obligation arising hereunder:

The terminating party will give the other party a formal written notice of such violation. After receipt of such violation, the violating party shall have thirty-(30) calendar days to remedy said violation. If after 30 calendar days, the violating party has not remedied the problem to the satisfaction of the other party, this Agreement may be terminated by the other party, subject to settlement of accounts / deliverables still owing and due at the time of said pre-termination and payments of actual damages incurred by the other party as a result of violations of this Agreement.

I. OTHER PROVISIONS

BCH and IBPAP shall further study what other collaborative arrangements they can enter into in improving and expanding the internship opportunities for students and employment opportunities for jobseekers, in determining, developing, and utilizing new technologies that will improve the sourcing, processing, and acquiring of qualified manpower for employers, and identifying and establishing opportunities for other industry enablers to connect to and productively work with the industry stakeholders

This Agreement is the complete and exclusive statement of the agreement between BCH and IBPAP, and supersedes all understandings or prior agreements, whether oral or written, and all representations or other communications between BCH and IBPAP in relation to the subject matter indicated herein. Any variations or additions to this Agreement are only valid if confirmed in writing by both parties.

If any provision of this Agreement is contrary to any applicable law or regulation, all other provisions of this Agreement will, notwithstanding, continue in full force & effect.

Any notice or other communication to be given under this Agreement shall be in writing and shall be served by leaving it or sending it by facsimile or prepaid post to the addresses of the parties specified in this Agreement, or as notified by either party to the other from time to time.

Nothing contained in this Agreement shall be construed as constituting or evidencing any partnership, agency or contract of employment between the parties.

The venue of any action between the parties to this Agreement shall be brought solely and exclusively in the proper courts of the City of Pasig. The law applicable to such actions shall be Philippine laws.

52 Deliverable 4

IN WITNESS HEREOF the parties have hereunto set their hands and seal this ____ day of _____, in the City of Pasig, Republic of the Philippines.

CAREERHUB NETWORK CORP. IT & BUSINESS PROCESS ASSOCIATION OF (BPOCareerHub-BCH) THE PHILIPPINES (IBPAP)

JUDY B. WHISENHUNT JOSE MARI MERCADO President President and CEO

Signed in the presence of:

______(Signature Over Printed Name) (Signature Over Printed Name)

Asian Development Bank

Department of Finance Republic of the Philippines

IT-BPM Industry Knowledge Hub Project

Deliverable 2, part 2: Knowledge Hub Business Case and Financial Models

Information Technology and Business Process Association of the Philippines ii

iii

DRAFT

(Aug 26)

Knowledge Hub Business Case and Financial Models (Deliverable 2, part 2)

TA-8164 PHI: Strengthening Knowledge-Based Economic and Social Development – 1 BPAP (46234-001)*

Prepared by

Information Technology-Business Process Association of the Philippines Consultant 21 August 2015 iv

Table of Contents

I. INTRODUCTION...... 1 II. THE IT-BPM KNOWLEDGE HUB ...... 2 Table 1: Breakdow n Survey Sample Sizes (based on AY 2014) ...... 3 III. GOALS OF THE KNOWLEDGE HUB ...... 4 IV. OBJECTIV ES OF THE KNOWLEDGE HUB ...... 5 Table 2: Target for each KH Revenue Stream, Years 1 to 3...... 6 V. MARKET SIZE AND GROWTH...... 7 A. Target Market Area and Scope...... 7 Figure 1: Know ledge Hub Implementation Framew ork...... 7 Figure 2: Know ledge Hub Market Space ...... 8 Figure 3: Hub Participation Value ...... 8 B. Market Size and Potential (A Macroeconomic View )...... 9 Figure 4: Demand and Addressable Supply Gap for IT-BPM Sector ...... 9 Table 3: Summary of Enrollments vs. Graduates for Top Programs/Disciplines ...... 10 C. HEIs and SUCs Market Segment ...... 11 Table 4: Regional Distribution of Higher Education Institutions by Sector, AY 2013-2014 ...... 11 Table 5: List of Respondents for HEI Survey ...... 12 D. Individual Market Segment...... 17 Figure 5: Addressable Supply for IT-BPM Entry-level Workforce ...... 17 VI. COMPETITION ...... 20 A. Business Landscape ...... 20 Figure 6: Know ledge Hub Reach vs. Function ...... 20 B. The Competitors ...... 20 VII. THE BUSINESS ...... 23 Table 6: SWOT Matrix ...... 23 Table 7: KH Value Proposition for Markets ...... 24 VIII. MARKETING STRATEGY...... 25 A. Purpose (Product)...... 25 B. Procurement/Partnerships (Place)...... 26 Figure 7: Engagement vs Action for KH Competition ...... 26 C. Presence (Promotion)...... 27 Figure 8: Aligned Curriculum Goal for KH Products...... 27 Figure 9: Sponsored (Infosys) SMP Laboratory in Cav ite State University ...... 28 Figure 10: Sample Layout for Sponsored Laboratories ...... 29 Figure 11: Internet and Media Architecture for KH Digital Components ...... 30 Figure 12: Existing SMP Social Media Page ...... 31 D. Pivot (People) ...... 31 E. Personalization (Price) ...... 32 Table 8: Services Pricing Table ...... 32 IX. RESOURCES...... 33 A. Capital investments ...... 33 Table 9: Cost of Subscriptions and Equipment ...... 33 B. Key Staff and Job Functions ...... 34 Figure 13: KH Organization (Year 1) ...... 34 Figure 14: KH Organization (Year 2 & 3) ...... 35 C. Background Details of Key People ...... 38 X. FINANCIAL ANALYSIS ...... 41 A. Funding Requirement ...... 41 B. Sources of Funds...... 41 Table 10: Profit and Loss ...... 41 C. Cash Flow Forecast...... 42 Table 11: Cash Flow ...... 42 D. Break-even...... 42 E. Internal Rate of Return ...... 42 Table 12: Internal Rate of Return (Break-even) ...... 43 ANNEX A: FINANCIALS ANNEX B: DETAILED JOB DESCRIPTIONS ANNEX C: SURVEY INSTRUMENT vi

Acronyms and Abbreviations

AdEPT Advanced English Proficiency Training ADB Asian Development Bank ASEAN Association of Southeast Asian Nations BA Business Administration BEST Basic English Skills Training BPO Business Process Outsourcing BPM Business Process Management BSBA Bachelor of Science in Business Administration BSIS/IM Bachelor of Science in Information Systems/Information Management BSIT Bachelor of Science in Information Technology CHED Commission on Higher Education CMO CHED Memorandum Order CSO Civil Society Organizations DOF Department of Finance F&A Finance and Accounting FTE Full-time Employee HEI Higher Educational Institutions HR Human Resource I/A Industry-Academe IBPAP Information Technology–Business Process Association of the Philippines ICT Information and Communication Technology IP Intellectual Property IT Information Technology IT–BPM Information Technology–Business Process Management IQuAME Institutional Quality Assurance through Monitoring and Evaluation IRR Internal Rate of Return KH Knowledge Hub PPP Public-Private Partnership PSIA Philippine Software Industry Association PWD Persons with Disability S&T Science and Technology SMP/eSMP Service Management Program/SMP Online SUC State universities and Colleges TA Technical Assistance T3 Train-the-Trainer (Program) UPOU University of the Philippines-Open University 1

I. INTRODUCTION

This Business Case is the second part of Deliverable 2 entitled: “Proposed IT-BPM Knowledge Hub Business Model and Roadmap” which was submitted by IBPAP to ADB as part of its project deliverables for TA-8164 PHI: Strengthening Knowledge-Based Economic and Social Development–1 BPAP (46234-001) that was submitted on 5 December 2014. Deliverable 2 discusses at length the overall framework and technical model, organizational design and where the hub is envisioned to be between 3 -5 years after implementation. It serves as a roadmap for frameworks, models and activities starting from its development phase to full operation in the medium to long term. This document will present a snapshot of the developmental and organizational phases from startup through its 3rd year of operation.

As discussed in Deliverable 2, the IT and Business Process Management (IT–BPM) industry in the Philippines has attained leadership in establishing a sizeable business process outsourcing (BPO) presence in Southeast Asia. It remains the global leader in the voice market and is expanding at high growth rates in the Finance and Accounting (F&A), health care management. and animation services sectors. Among others, the most important issue facing the industry that will impact on the success of the IT –BPM sector in sustaining its growth continues to be the availability of qualified talent. To address the talent gaps, the IT & Business Process Association of the Philippines (IBPAP) and different government and education sector agencies have partnered in implementing traditional talent development initiatives, including the Service Management Program (SMP). The modest gains of SMP have to be scaled in order to sustain the supply of qualified talent that will meet the industry’s demand.

One of the solutions that have been identified to systematically address the skills shortage is the Knowledge Hub (KH). The KH will create an institutional framework for continuously designing, testing and rolling out talent programs, make available to various stakeholders industry information or data including employment opportunities and research results, and development and dramatically align the higher education curriculum with both international standards and labor demand.

The proposed Knowledge Hub aims to support the following government, academic, IBPAP and IT–BPM sector goals and initiatives:

(i) address the skills shortage in the IT–BPM industry, (ii) serve as the gateway for knowledge sharing and networking among industry members, academe, government policy makers and other stakeholders, (iii) enable Public-Private Partnerships (PPP) for Talent Development, (iv) build and sustain Industry-Academe Partnerships, (v) promote industry growth, (vi) reform initiatives in the higher education systems, and programs to produce suitable graduates to meet the labor demands of high growth industries such as IT-BPM industry, and (vii) expand reach and scale IBPAP’s talent development programs

For the first three (3) years of operation, most activities shall evolve around building institutional and organizational aspects of the hub, developing the blended mode of delivery

of the SMP, developing additional complementary pre-SMP curricula such as the communications, work ethics, technology literacy among others and provision of support to the Higher Educational Institutions (HEIs) specifically the early SMP/eSMP adapters, through Teacher training and certification. Providing this support will help establish a solid Knowledge Hub membership pool as the demand for SMP increases overtime.

II. THE IT-BPM KNOWLEDGE HUB

The IT–BPM Knowledge Hub seeks to support improvement in the alignment of higher education with the needs of the IT-BPM industry. It will have a central role to play specifically in driving the continuous process for generating and sustaining talent development programs and courses. The IT–BPM KH is intended to house developed industry-designed courses and industry assessment tools including a middle management and leadership program that will be utilized by member higher education institutions (HEI) and training institutions. The KH will also initiate international and national twinning arrangements and support stronger industry-academe linkages. In addition, it shall also serve as the main “touch-point” for anyone: students, professionals, within or outside the industry who wish to be a part of the industry, or know more about the industry. These activities collectively aim to scale up the deployment of cost-effective models for strengthening and delivering HEI programs, improving the flow of talent to the industry, sustaining Knowledge Hub activities and substantially contribute to addressing industry demand for talent.

During the early stages of organization and development as it builds some operational capacity and experience, including building networks with the industry, academe, private sector, government and other stakeholders, IBPAP may serve as the virtual or physical base from which the KH will operate. For the first year, in addition to developing its physical and organizational structure, the KH will concentrate its efforts at delivering services that will build its membership size.

As the KH becomes operational and the HEIs are able to institutionalize SMP in their curriculum offering, IBPAP is seen to slowly divest from its existing course delivery and deployment function. More importantly, the KH is envisioned to move towards being operationally independent as it strengthens its management and sustains its activities. To ensure its close ties and partnership within the IT–BPM sector, the IBPAP President shall sit as a permanent member of the KH Board of Trustees.

Extensive consultations were held with HEIs in March and April to discuss the KH concept and the HEI’s potential participation.1 A follow-up online survey was deployed in July 2015 to get a better understanding of the HEIs’ appetite to join the KH as well as to identify the services and products that they expect to get out of any KH membership. The survey covered over 100 HEIs located nationwide who participated in the ADB project forum conducted in March and April 2015. Table 1 summarizes the details on the HEI sample size.

1 HEI Forum w as conducted in Metro Manila, Cebu, Los Banos and Clark w hich w as participated in by 287 HEIs.

Table 1: Breakdown Survey Sample Sizes (based on AY 2014) Sample Figure Total number of HEIs (including SUCs) 2,374 Number of invited schools to HEI Forum 393 Number of schools responded to invitation 242 Schools which attended HEI Forum (sample) 124 Schools responded to the survey 46

The results of the survey identified the following primary services that need to be supported by the hub in order to build its pool of members:

Faculty Training

Faculty training/ development is the HEI’s top requirement for implementing SMP in the schools. Majority of the HEIs agree that because SMP is a pioneering program created by the industry, they need to build their teachers and institution’s capability to teach SMP/eSMP. Faculty training will involve training teachers in both content and methods for the five SMP subjects. The school has the option to determine how many teachers to train, however, HEI’s need to send a minimum of five teachers in order for the school to offer the full SMP program to students, HEI’s need to have at least one trained and certified teacher per SMP/eSMP subject. Based on current onsite training experience, all the five subjects require at least 28 days to complete.

Certification and Accreditation

All schools who intend to offer SMP are required to be certified by IBPAP to teach the course. In the onsite version of SMP, the Commission on Higher Education (CHED) requires a certification from IBPAP. 2 It has developed a pool of Master Trainers who will conduct the on-site certification. In the case of eSMP, IBPAP will do online certification through the UP Open University (UPOU). Membership in the knowledge hub will allow teachers access to a facility onsite or on line for certification. This way, the certification process becomes more accessible and efficient.

Content and Merchandise

The sale of content and merchandise is a means to allow faculty, student, and developer access to curricular reference materials. As most of those HEIs who intend to implement SMP plan to go on a blended mode, it will necessitate the reproduction of modules and digital materials. Connectivity may vary in each school and striking a balance between what topics may be discussed online or onsite is left to the discretion of the teacher. Printed or digital copied of materials will be readily available to both teachers and students.

2 CHED Memorandum Series 2012 Order Numbers 6 for the BS Business Administration degree, and 34 for the BS Information Technology degree

Partnership/s with IT-BPM Firms

Fundamental to the methodology of the SMP is the conduct of IT-BPM firm site visits for teachers and internship for students. Site visits are important because teachers need to fully understand the working environment and the kind of discipline that is req uired to succeed in the IT-BPM industry. For students, the internship is designed to prepare them for possible employment in the industry. Undergoing the rigors during internship and being able to immediately apply knowledge taught them will make them more competitive compared to other graduates who have not had the opportunity for this kind of exposure. Ideally, partnerships should be forged to build a more sustainable relationship between the supply (HEI) and the demand (IT-BPM firms). As the partnerships allow the schools and employers to meet and get involved in more activities, the better the calibration of the supply side in terms of quality and quantity of their graduates with the requirements of the IT-BPM sector. This will result in better hiring rates at the demand side.

Both the school and the student will benefit from the membership to the knowledge hub. Those who satisfactorily pass internship have a solid edge which can get them immediately employed and allow them faster integration into their roles. This will also be favorable for the employer because they will be hiring graduates who are IT-BPM ready and therefore will spend less in recruitment and in training, and get the quality and quantity of talent that they require when they need it.

III. GOALS OF THE KNOWLEDGE HUB

The expected KH outputs are:

(i) increased access to knowledge resources for the IT–BPM designed courses, (ii) enhanced higher education curricula and instruction, and (iii) strengthened partnership between industries and academic institutions.

The long term impact of the KH becomes tangible through a replicable and sustainable system of ICT-enabled knowledge hubs for the improved teaching and learning of IT –BPM industry designed curricula in HEIs.

IV. OBJECTIVES OF THE KNOWLEDGE HUB

The mission or purposes of the proposed Knowledge Hub are:

(i) Provide opportunity for business, employment, education, and training to industry member organizations, partners, prospective and current industry talents, and other stakeholders (ii) Direct prospective talents to prospective employers (iii) Direct prospective and existing talents to educational and training programs and providers (iv) Provide assessment, certifications, and accreditation services to talents, industry members and partners (v) Develop prospective and current talents’ potentials into purposeful and rewarding careers (vi) Promote the services of industry members and partners to the global and local business community (vii)Support the advocacy campaign of the IT–BPM sector particularly as it relates to IT– BPM career development, K-12 and its other talent development programs

To achieve its mission, the KH will deploy the following foundational building blocks in its operations:

(i) Member’s Competency Promotion Mechanism (i) Assessment, Certification, and Accreditation Delivery Mechanism (ii) Curriculum Development Mechanism (iii) Talent Development Mechanism (iv) Industry Knowledge Management Mechanism

The targets in terms of membership and services to be rendered in the first three years of operation are presented in the Table 2. The percentage targets were derived based on the responses from the 124 HEIs who have signified interest in implementing SMP in their campuses.

Table 2: Target for each KH Revenue Stream, Years 1 to 3 Year 1 Year 2 Year 3 Revenue Streams 50% 125% 200% Institutional Membership  Schools 62 155 248  CSOs 4 8 16 Individual membership  Students* 9,920 29,760 52,080  Professionals** 500 Membership Services Teachers***  Training 310 155 248  Content & Merchandise 310 775 1,240  Certification 310 7,750 1,240 Students  Content & Merchandise**** 9,920 29,760 52,080  Internship***** 1,000 2,000.0 12,920  Placement****** 700 1,400 9,044 Advertising 5 Employers' Subscription 62 124 248

* For Year 1, computed as number of HEIs multiplied by two subjects at 40 students to a class for two terms, For Year 2 and 3 computed as number of HEIs multiplied by three subjects at 40 students to a class for two terms.

** Professionals are prospect members who are either already in the IT -BPO industry and are seeking to enhance their skills and knowledge or, OFWs who may want to relocate back in Manila and are looking at the possibility of joining the IT -BPM industry.

*** The computation for the services to be given to teachers is based on the number of HEIs multiplied by the number of SMP subjects to complete the 5SMP Courseware.

**** This number assumes that the student members are students enrolled in SMP subjects under the blended mode and is computed based on same assumptions as in footnote 1.

***** It is assumed that there are no internship from HEIs in Years 1 and 2 but IBPAP is considering the existing students from the 17 SUCs of the CHED project who are about to graduate and from HEIs who are already involved in the onsite implementation of SMP.

****** The IBPAP team is in the process of developing a contract with BPO Career Hub to handle the placements of those student members who are seeking employment in the IT -BPO industry. For Year1, this target figure is based on IBPAP’s estimate of the number of completers from existing partner HEI schools implementing SMP. Year 2 figure is based on a 70% hiring rate for the internship number in footnote 5. And Year 3 figure is based on 2 sources of placements, the first is with existing partners and the second is coming from the graduates of the new HEI partners recruited under the KH.

V. MARKET SIZE AND GROWTH

A. Target Market Area and Scope

Primary and Secondary Markets

The KH implementation framework in Figure 1 describes the hub as a portal for the generation and exchange of knowledge, information and marketing and career opportunities for Human Capital/Talent Development of the IT-BPM industry between its suppliers (HEIs, SUCs, Non-school sources) and employers. These two general areas (supplier and employer) describe the potential target market space for the service offerings of the KH.

Figure 1: Knowledge Hub Implementation Framework

However, it is important to point out that while the schools and employers represent the primary market for KH activities, there exists a secondary market area in the individual components (teachers, students, and professionals) that would make up both schools and employers.

While not originally highlighted in the framework, it is emphasized that civil society organizations (CSOs) are also part of the potential primary market that the hub will service. In particular those CSOs that cater to education to employment needs for the particular development sector or community that they touch. These CSOs may not engage directly in academic programs delivery, more often they participate in managing academic as well as employment related functions and advocacy in line with the KH. It is important to note that some of these CSOs provide functionality much like the hub and can act as competitors in the space. However, the thrust is that, because of the close link between the hub and the IT-BPM industry, the KH can serve to complement and strengthen these CSO programs instead of competing with them.

The Figure 2 maps the market space that the KH would likely directly service for its array of services and offerings.

Figure 2: Knowledge Hub Market Space

The institutional as well as individual segments of the target space are contrasted whether it is from a demand view (employers) or supply view (schools). It is critical to understand that, in order for the hub to be efficient and for it to achieve scale in deployment, it will target the HEIs (aggregators) so that it can effectively reach the individuals. Thus, the aggregators (institutions) will be the primary target of hub membership. In actuality however, it is the individuals, who are the end-users of the hub services that are particularly affected when it conducts training, course delivery and certification. Therefore, from an efficiency and membership view, services can only be delivered to the individuals if the particular aggregator (HEI/SUC) is a willing partner and will allow access to the individuals in their particular space to be serviced by hub activities. The mechanism by which the hub will reach a particular individual member: whether teacher, student or professional, will be delivered through the particular aggregator with whom that individual is associated.

Membership as Mechanisms for Service Delivery

The impact of these hub services to the primary market is better understood by highlighting the real value that schools can derive in participation. Figure 3 provides a summary of the hub input versus derived value from the primary markets.

Figure 3: Hub Participation Value

Along the talent path that individuals will take in an institution, the KH will have corresponding support services with equated values. As the individual progresses through the institution, the value increases or changes. For example, as prospect students, the hub can offer support in terms of career marketing, this can be translated to branding for schools where career marketing activities and school recruitment events are being held. When these potential students do enroll, the KH can offer scholarship opportunities and later do placement for internship. In both circumstances, the school can derive tuition revenue. Finally as students graduate and are absorbed into the workforce, the alumni network that the KH maintains will provide schools access not only to individuals but also serve as potential entry points into activities where its graduates are often hired. The direct value to the school that the hub is able to offer will be discussed further in Section VII for the value proposition.

B. Market Size and Potential (A Macroeconomic View)

The Philippine Statistics Authority pegs unemployment for 2014 (Jan 2015 marker) at 6.6%; within the same period the underemployment statistic is at 17.5%. In contrast, of those who are employed, around 2.3 Million are Overseas Filipino Workers (OFW) who account for around 8.5% of GDP (US$ 2.3 Billion) and around 1 Million individuals are with the IT -BPM industry who account for around 7% of GDP (US$ 1.3 Billion). 3 These employment numbers and their corresponding contribution to domestic product (dollar remittances for OFW, and export revenue for IT-BPM) represent private consumption a substantial subset of which is spent for education. More importantly, it is critical to view growth of the IT -BPM industry demand for talent against the supply at which it is able to absorb. Not only is this significant for the sustained growth of the sector but is also the pivot which the hub is serving.

Figure 4: Demand and Addressable Supply Gap for IT-BPM Sector

Source: IBPAP IT-BPM Industry Roadmap

3 Philippine Statistics Authority Annual Labor Force Survey. https://psa.gov.ph/statistics/survey/labor- force

The growth of the IT-BPM industry also serves as a good indicator for educational institutions to use for defining their curricular and program offerings. Much like staples programs like Nursing and Allied Medical, Education and Engineering fields, the demand for IT-BPM industry has pushed enrollment for Business and IT courses within the top three spots, outperforming Medical and Allied courses.4 The graduate pool is however, still not enough given the demand illustrated in the Figure 4, in addition, the spectrum of IT-BPM services include a wide array in the creative, legal, medical, and engineering disciplines which have attracted graduates from these fields to work for the IT-BPM industry.

Table 3: Summary of Enrollments vs. Graduates for Top Programs/Disciplines 2014 2014 Programs/Disciplines Enrollment % Graduates % Business Administration and Related 970,558 27% 164,541 29% Education and Teacher Training 624,254 18% 86,903 15% Engineering and Technology 424,143 12% 59,399 11% Information Technology 425,416 12% 72,879 13% Medical and Allied 228,484 6% 57,427 10% Others 890,541 25% 123,620 22% Total 3,563,396 564,769 Source: CHED 2014 Higher Education Data Primer

The data is also an indication that the global view for students as a market (secondary markets) are potentially about 1.3 Million for the programs where SMP can be offered (BA and IT) and around 237,420 for potential placements (assuming BA and IT also). Although realistically, the reach of the hub activities will be constrained by the geographic proximity of industry players to the supplying institutions, the above indicative numbers show the scale at which the hub can grow if it can reach and become inclusive to service the whole country. Moreover, as the SMP online courses are being rolled out, access to more remote areas where geographic proximity to demand may not be immediate but otherwise serviceable either through migration (temporary or permanent), the reach of KH programs can spread more evenly across the countryside.

Over the last five years, the Commission on Higher Education (CHED) has strengthened its Institution Quality Assurance through Monitoring and Evaluation (IQuAME) Program which has resulted in the closing or suspension of non-compliant schools and programs.5 While seemingly contracting the market, this move has actually provided a sharper focus for priority programs where tertiary institutions could develop and even excel. The data point for Centers for Development and Excellence (COD/COE) will be decisive in focusing individual schools that the hub will initially approach to become feeders for employers as they have a higher likelihood of readiness to offer SMP.

4 CHED 2014 Higher Education Data Primer. http://www.ched.gov.ph/wp-content/uploads/2014/temp/10- 03/home/Higher%20Education%20Data%202014%20-%20Public%20and%20Private%20HEIs.pdf 5 CHED Roadmap to Public Higher Education Reform, p 12. http://www.ched.gov.ph/wp -content/uploads/2013/07/Roadmap- for-Public-Higher-Education-Reform1.pdf

C. HEIs and SUCs Market Segment

Higher Education Institutions (HEIs) both public and private will be the primary focus of hub membership activities. It is through these organizations where secondary market activities such as chapter membership and program delivery (training, placement, internship, certification, merchandising and content selling, etc.) are offered and realized. Hence, it is critical to understand the behavior of this segment in terms of becoming members and their openness for third party curriculum offerings (as similar to SMP).

Table 4: Regional Distribution of Higher Education Institutions by Sector, AY 2013- 2014

Source: CHED 2014 Higher Education Data Primer

In Table 4, the bulk of HEIs /SUCs are still within areas radiating from the capital as well as established BPO locations like CALABARZON, Clark and Cebu, and the Next Wave locations such as Bacolod, Cagayan de Oro and Davao. All of these areas are poised in terms of supply given the volume of existing schools in the regions these cities are located.

The total space that the KH can operate and serve is equal to the number of tertiary educational institutions within the country; however, the subset of schools that the knowledge hub will initially target will be derived from the participants of the recent HEI Forums conducted by IBPAP and the University of the Philippines Open University (UPOU).

In conducting the HEI Forum IBPAP and UPOU sent out invitations to HEIs and SUCs from the list of accredited schools of the Commission on Higher Education’s (CHED) website.

The list of schools invited to participate were those schools that have a BA and IT course offering as the Service Management Program is anchored on a CHED Memorandum Order (CMO) that specifically provide for the delivery of SMP in these two courses. The list was segmented for the geographic locations (NCR, North Luzon, South Luzon, Visayas and Mindanao) where the HEI Forum will be conducted. The attendees of the HEI Forums conducted in the four geographic areas were schools who expressed interest in participating in the delivery of SMP in their schools.

In order to get a better sense of the primary market that the hub will serve, a survey was conducted among the invited participants of the HEI Forums. These participants are schools that have been sent preliminary briefing materials regarding SMP so they are starting with some knowledge of the fit of the program into their curricular offering.

Using the participants of the HEI forum benefitted the research in several ways. First, the participants have expressed interest in the program so the gauge will be whether they are likely to join for a fee and capture input on their desired price point. Second, the participants of the HEI Forum have been briefed of the KH project and the SMP, and are aware of the models and frameworks in place, this will allow them to better understand the values they want to derive from implementing SMP or participating in the hub. Third, because in the forum, participants already had an opportunity to ask questions regarding their concerns on and for the hub and SMP if they respond to the survey, they are already part of the potential target market subset that can be used as first leads when the hub does start to operate.

The survey pool was conducted for 124 tertiary education institutions, of which to date, there are 56 respondents from 46 schools. Table 5 lists all the schools that responded to the survey.

Table 5: List of Respondents for HEI Survey 1 AMA Computer College Of Cabanatuan 24 Mariano Marcos State University City, Inc. 2 Angeles University Foundation 25 National University 3 Arellano University 26 New Era University 4 Asia Pacific College 27 Northwestern University 5 Asia Technological School of Science and 28 Northwestern University Arts 6 Asian College of Technology International 29 Pamantasan ng Lungsod ng Muntinlupa Educational Foundation 7 Bulacan Polytechnic College 30 Quezon City Polytechnic University (QCPU) 8 Centro Escolar University - Malolos 31 San Carlos College 9 City College of Angeles 32 San Sebastian College-Recoletos - Canlubang 10 City College of San Fernando Pampanga 33 San Sebastian College-Recoletos - Cavite 11 Colegio de San Juan de Letran - Bataan 34 Santa Isabel College 12 College of the Immaculate Conception 35 Santa Rita College 13 De La Salle Lipa 36 Siena College of San Jose Del Monte 14 Don Honorio Ventura Technological State 37 STI Cubao University 15 FEU Cavite 38 Trace College 16 Ilocos Sur Polytechnic State College 39 University of Batangas 17 Isabela state university 40 University of Cebu Main Campus 18 La Consolacion College Manila 41 University Of The East - Manila 19 Lyceum of the Philippines University - 42 University of the Immaculate Conception Laguna 20 Lyceum of the Philippines University - 43 University of Perpetual Help System Dalta Manila 21 Malayan Colleges Laguna 44 UPHSD - Molino Campus 22 Manila Central University 45 University of the Philippines Los Banos 23 Mapua Institute of Technology 46 Wesleyan University

Survey Results

The Following are the results for the survey questions that were posted to the respondents:

1. Respondent Profile (Survey Question: Designation of Respondent)

The question is designed to determine the level of influence of the point of contact. In particular if the individual would have the capacity to influence decisions to push hub programs in the school. It is not uncommon that smaller institutions have central administration looking after project implementations such as SMP and, similarly, for larger colleges and universities the function of evaluating and implementing programs (such as SMP) is devolved into the schools, colleges or departments. Understanding the respondent profile also gives insight to the KH team who will eventually present and negotiate with the schools how best to pitch for membership and attached services.

The results of the survey show that in many cases the most likely initial point/s of contact will be at the schools’ departments or colleges, which is a critical strategy because these individuals do have some autonomy in terms of pushing for programs that will enhance their unit’s offering. This result can later provide guidance in tuning the language of offerings to one that is best suited for the specific units rather than just central administration.

2. Mode of Participation (Survey Question: Our school is interested to participate in the Service Management Program (SMP) through the following modes)

The question is designed ask the school which of the three delivery modes it will prefer. An online program will be anchored on the delivery of materials from UPOU’s MoDEL online portal for SMP, this model assumes that individuals (students and teachers) sign-up and participate over the internet. An onsite program is a program offering where the five SMP courses are delivered as school term courses. This would assume that the schools are offering classes for students and the teachers have likewise attended face-to-face training for their SMP delivery capability. A blended program assumes that the school will have a mix of delivery methods that allow for both internet as well as –classroom-based delivery of SMP.

A significant number of the respondents have selected a blended delivery, owing to the readiness factors which are discussed in the next survey question. While coming in last among the choices, an on-site program still represents a considerable number for the respondents most likely due to the implications on their IT infrastructure or the familiarity of the model with a mix of large system schools choosing this option.

3. Factors for choice of modality (Survey Question: What factors affect your choice of mode in offering SMP?)

The factors affecting choice of modality provides insights on issues which could affect or impact implementation for the schools. These items are similar challenges encountered in the IBPAP pilot SMP run and CHED funded implementation of SMP6. These are points where support from the participating employers could be raised in order to attract schools to partner in the program.

What is evident is that the highest need is to address faculty and curriculum readiness; both activities are part of the hub offering through the different training and capability programs that the hub has to offer to faculty as well as administrators. Likewise infrastructure and technology rank high which confirms that this area is a particular concern of schools across the board. It is not surprising that executive support is not ranked high because most of the participants have already realized the need and have expressed interest in the program, which was most likely cascaded from central administration.

4. Time frame of offering (Survey Question: We intend to start offering courses in the Service Management program by)

To better understand the staffing and financial investments that the hub will undergo during its startup years, a question on timing of offering was asked. The answers represent a view into the potential readiness, willingness and pace at which implementation for potential member schools can deploy SMP. The hub can leverage on the gaps between terms to allow itself time to develop membership and

6 The Commission on Higher Education provided Php 125 million to IBPAP to implement on-site SMP in 17 state universities and colleges nationw ide over a tw o year period from 2013 -2015. The 17 SUCs include: Batangas State University, Benguet State University, Carlos Hilado Memorial State College, Technological University of the Philippines, Cavite State University, Don Mariano Marcos Memorial State University, Laguna State Polytechnic University, Negros Oriental State University, Northern Iloilo Polytechnic State College, Pangasinan State University, Polytechnic University of the Philippines, Philippine Normal University, Tarlac State University, Technological University of the Philippines, Western Visayas College of Science and Technology, West Visayas State University, and University of South Eastern Philippines

relations within the schools as well as give enough runway for program, capability and curriculum to be injected into an interested party.

Almost half of the respondents are looking at an implementation over the next academic year. This would be an opportunity for the hub to refine its offerings and engage with this schools in sync with a summer or midterm training program to allow their faculty adequate time to prepare for a 1 st term course and gauge student interest.

5. Interest gauge (Survey Question: To systematize the transactions for all stakeholders including Higher Education Institutions (HEIs), IBPAP will build a Knowledge Hub (KH) that could facilitate more efficient services delivery to its members. Will you be willing to join as member of the KH with a fee?)

Given the level of interest shown by the number of participants in the HEI Forum, this survey question asks whether the respondents will likely put financial values for the products and services that the hub has to offer. This also serves as an indicator for which schools will need more effort to convince about the value of what the hub has to offer

While majority of the respondents are willing to pay membership fees to avail of hub services almost a fourth of the respondents do not see their organization paying for membership. If set against their response to the second question, it is interesting to see that one out of four schools who answered “No” are looking at an online delivery model.

6. Services profile (Survey Question: What services are you expecting as a member?)

The array of services that schools expect to receive as a member (membership value) is outlined in this survey question for respondents to select. The list is derived from activities that were done during the pilot and CHED-funded implementations of SMP.

In general, all respondents recognized the importance of all of the services and gave high ratings. However, there is greater emphasis put on faculty development, as well as training and certification. Employer partnerships and access to materials rank high in the (this sentence is incomplete!)

7. Price point (Survey Question: How much would you be willing to pay as a member?)

The last question in the survey is to determine price point for annual membership. This operates on the assumption that these institutions are paying similar fees for membership and participation in other organization whether related to regulation (CHED Accreditation) or as access requirement (Subscriptions). The ranges are in Php 25,000 increments for simplicity and lack an option lower than Php 25,000 to reference to ranges imposed by competitors.

While the results are at the lowest ranges, this is far from surprising as membership prices from organizations in the competitor matrix of the hub would actually be priced lower.

The survey was used to gauge the interest of moving the model into a pay scheme, particularly for those that will choose an on-site or blended delivery. Another important point to consider is that the survey is simplified in favor of getting sensibilities of the market through decision makers and champions within the schools. By experience in previous SMP implementation, some schools will require more negotiations and further discussions to roll out SMP into a term offering.

There are also some important factors that are currently taking place in the tertiary education landscape, the most immediate being the implementation of K-12. This move by the Department of Education (DepEd) is expected to create a sudden drop in enrollment in tertiary institutions for two years forcing smaller schools or programs to temporarily close or suspend offerings until the student volumes normalize. This presents an opportunity that the hub could leverage on and will be discussed in succeeding sections.

Another trend worth noting is the increasing investments of large business holdings in education, spearheaded by PHINMA, with San Miguel, SM and Ayala groups doing similar acquisitions. As more family-controlled schools are divesting equity in tertiary education institutions, and more businesses conglomerates are buying these shares, the trend may likewise provide an opportunity because some of these holding companies have interests in the IT-BPM space.

D. Individual Market Segment

The real impacts of hub activities are translated at the individual membership (secondary) segment of its market. These activities are the ones that will directly engage individuals either through program delivery (training, course offerings); content and merchandising (book and training manual sales, SMP branded items); or placement and internship. Individual chapter (local/school) membership is an expected model to be pursued but given the demographics and price point of students, it is not expected to be a major revenue generator and the volume of which is contingent on the number of primary member engagements that the hub can develop and pursue per year.

Figure 5: Addressable Supply for IT-BPM Entry-level Workforce

The secondary market is the primary source of talent supply for the IT-BPM’s talent pool. As the volume of employable tertiary students filter through and shrink from secondary to tertiary education, two of the most alarming losses occur at the point where students will not even consider a career in IT-BPM and the lack of employable skills. These two areas are being addressed by the hub as a primary markets activity in the form of directed campaigns for career options and SMP and enrichment courses (BEST, AdEPT) for upskilling. The 80,000~100,000 annual addressable supply simply cannot keep up with the growth of the demand. At best, where there would be an additional volume of students created due to hub activity, supply needs to reach 250,000~300,000 to meet the demand of the industry.

A similar survey to the one conducted for the primary markets was conducted for the secondary market (students and professionals) to gauge willingness to participate in hub activities, expected services and price points for their entry. The survey, apart from demographics highlighted participation in similar membership organizations as well as gauge awareness of SMP. The survey was designed to check the gamut of services expected upon joining such an organization. This was delivered through the SMP Facebook page which to date has around 75,000 members.

The following are the survey questions that were posted to the respondents:

1. Membership in organizations (Survey Question: Are you a current member of a professional organization?)

This question gives insight into the reach of potential competitors within the secondary target market. Membership whether for a national or chapter association set against the demographic data questions of the survey can give a view of the extent or reach of potential competitor organizations that are anchored on membership.

2. Product awareness (Survey Question: Are you aware of the Service Management Program (SMP) of IBPAP?)

While the survey was conducted using the SMP Facebook page as a Launchpad, there is still a possibility, given the viral nature of social media, that the reach of the survey may not all be students of schools where SMP is currently being implemented. The question is designed to illicit a response as well as create a potential marker for interest that the hub can later follow-up and an individual and a representative population of the school of the respondent.

3. Willingness to participate (Survey Question: Are you willing to become a member of an organization setup to support Service Management Program (SMP) activities in the school?)

Similar to the primary market question, this is used to gauge interest in participation. Like the other questions for the secondary markets, comparing this against the demographic data can represent markers for primary target market schools that can be approached given the local demand indicated by the survey.

4. Price point (Survey Question: How much are you willing to pay as membership fee?)

Like the price point question for schools, this is designed to gauge the price the secondary market is willing to pay for membership. This will also be used for comparison against the competitor price point evaluation in the succeeding sections. The assumption is that while the students are most likely to answer the survey, the decision for financial considerations are often by parents as levied by schools, this will also help gauge membership value in the next question.

5. Services profile (Survey Question: What services do you expect as a member of such an organization?

The final question for the secondary market survey is anchored on the expected services that the hub will provide its individual members. Unlike the services question for the target market these are oriented to address individual activities and can again be used in conjunction with demographic data to determine programs for schools if the demand is present.

These survey questions for the secondary market while designed to better understand the behavior of the secondary markets will be part of succeeding researches for the KH implementation. Due to limitations in time and delivery of the survey, the computations and services described in this plan are based on assumptions derived from the results of the primary markets survey. Moreover, SMP courses are tied to enrollment and therefore partner or participating HEI will more likely compel students to avail of content or merchandise during initial stages of implementation. It is assumed that the ability of HEIs to place their students as reflected by their internship or hiring will create a market that will later drive the demand for the courses on its own.

VI. COMPETITION

A. Business Landscape

The potential competition of the hub is defined based on the identified services that it will deliver across both primary ad secondary markets. This will also help narrow the price point at which the hub will need to compete against, in particular with membership as these potential competitor entities have the advantage of being in the space earlier than the KH.

Figure 5 highlights the key areas where the knowledge hub will participate and deliver services at an institutional, individual or even regulatory level compared to its potential competitors.

Figure 6: Knowledge Hub Reach vs. Function

In identifying the direct competitors of the KH, the question that needs to be answered is: given the limited financial capabilities of the primary and secondary target market, which organization will the markets likely spend their resources on. This assumption is critical because almost all of the players highlighted in the grid have the advantage of having an earlier presence in the market than the hub making the barriers to entry higher.

B. The Competitors

Membership organizations - The primary anchor of hub activity is in membership. Hub value and services can only be delivered and realized by a target customer through membership, therefore, the hub will compete for a share in the institutional or individual budgets. Professional organizations that have an attached regulatory function as dictated by law (e.g. PRC) have an advantage in particular because membership in these organizations is generally mandatory in order to practice profession.

Perceived Value: Strength in numbers. Membership organizations are able to lobby incentives and deliver value because their numbers represent efficiencies, political capital and strengths that no individual entity would be able to achieve. This is also part of the reason why in sectors where regulation is involved (i.e. professions, certification), the management and regulatory practices are often devolved by the government regulating agencies to membership organizations, a good example is how the Commission on Higher Education (CHED) requires HEIs to be part of a certifying association in order to undergo higher level accreditation and certification.

Approach: Since the hub is a startup and relatively unknown compared to established membership associations, it needs to heavily capitalize on its string linkage with the IT- BPM industry. It will utilize its solid industry connections and networks to project its value propositions to the potential members it wants to attract, in this case, tertiary education institution.

Placement companies – Matching internship & career opportunities will be a major function of the hub. Consequently, it will come in direct competition with companies that perform third party recruitment and placement for the employers that the hub serves

Perceived Value: Economies of scale. Companies involved in recruitment and head hunting perform the valuable task of aggregating a pool of candidates to allow interested employers to pursue and hire as they see fit without having to invest considerable resources for each lead. The ability to work with scale, especially in linking potential employers closer to candidates regardless of schools or affiliations has made recruitment firms (in particular, online ones such as Jobstreet) a popular choice for the secondary markets (student and professionals). The traction and existing subscriber base of these companies are a critical link to building the ability of the hub to place its graduates in promised careers.

Approach: The KH may explore complementation or “outsourcing” some of the matching/internship function to these firms particularly if it impacts on scale and cost efficiencies. The advantage of the KH is that it has an established pipeline of potential candidates which the private companies need in order to perform matching and placement. In this light, aligning with the hub also increases their scale and efficiency.

Developing key placement company partners will be key to both short and long-term sustainability of the hub. Rather than compete with these firms on their core business, partnerships ensure that some profit share can be achieved per program graduate but at the same time establish the hub as a primary source of capable talent among the employers subscribing to the services of these placement companies is both strategic and effective.

A strategic alliance/partnership will likewise improve internship program delivery as the work of pushing openings for internship efficiently moves from the employers to the placement firm/s, to the hub and into the school allowing for a more systematic and faster aggregation and a larger pool than what can be accomplished by the hub directly working with employers.

Content providers – While SMP as a product is designed to supplement the existing domains and strengthen the core competencies of students and professionals, like any content sold, will have to fight for “share of wallet” from an individual reach. In contrast to the content and materials for domain fields, the hub as a content developer and provider will sit on the same shelves of any publisher that provides content to the secondary market (individual) it serves.

Perceived Value: Expertise. Much like placement companies, content providers are part of budget and wallet share of the primary and secondary markets. Traditional publishing companies (text book providers) and content subscription services (journals and periodicals) actively campaign and provide sales channels within schools even to the point of supporting faculty directly. This reach is far more than what the hub can compete with and while the hub has a merchandise and content selling function, this is attached to the delivery of the programs rather than as an independent business line in itself.

Approach: Similar to placement companies, the best approach is alliance/partnership rather than competition. This allows the hub to unburden itself from the risk of content production but still guarantee a return for every unit or copy sold. Working with a content provider (whether local or international) allows the hub to leverage on the sales capability of these companies to provide the necessary support at the academic level for faculty delivering the courses. Such partnerships also help extend the reach of hub content (SMP and its attached products) beyond the school channel and hopefully into more mainstream retail establishments.

Training providers – The hub will deliver training and development services to members at both institutional and individual members. While not in direct competition with training providers, these organizations provide valuable input in terms of cost, value and demand for learning and development (L&D) activities.

Perceived Value: Reach. There are a number of training companies that already have engagements with the primary market (schools) and have established a presence within their locality.

Approach: The training functions of the hub are modeled after the scale implementations for SMP. Both on-site and online channels for training rely heavily on “enablers” that provide the actual training programs drawing from contents originally provisioned by IBPAP through SMP. While the engagement with said enablers tend to be transactional (per delivery), their proximity to members as well as knowledge of local academe culture, and business landscape adds both value and helps reduce program delivery costs. Developing a strong network of local training companies or enablers in key geographic locations ensure the ability of the hub to deliver the highest quality service at the lowest cost possible and more importantly, assures timely access to as many potential HEIs/individuals nationally and overseas.

VII. THE BUSINESS

The hub as a business operation has several factors that help or harm its sustainability and capacity to operate, these coming from both internal and external sources. These factors constitute the SWOT Analysis in Table 6.

Table 6: SWOT Matrix Helping Harming

Strengths Weaknesses  SMP as a product has already been  Slow update cycles for SMP materials developed and industry-aligned with a due to lack of developers CMO from CHED  Lack of bandwidth and capacity to  SMP materials converted to open courses support demand surges for delivery and by UPOU housed with its own LMS implementation of programs  Support of large employer partners and  Implementations are tied to current industry association (IBPAP) funding opportunity and lack a  Peaking interest from tertiary institutions mechanism to deliver and charge based to implement SMP on demand and value Internal  Previous SMP implementations providing  Career marketing interaction is done headway into tertiary institutions primarily at the surface with little  A strong set of enablers (APC, UPOU) engagement at depth within secondary  Partnership with a placement/recruitment markets firm to co-develop career programs for the hub

Opportunities Threats  Other service industries are looking to  Maturing and plateau of demand for IT- replicate IT-BPM industry talent and BPM talents, higher entry-level, more capability projects specialized skills for knowledge work  Open spaces in Kto12 curriculum to  Kto12 push creating a gap for tertiary level integrate SMP graduates for two years and the dip in  More non-voice work in the IT-BPM college enrollment it will create in industry requiring other domain disciplines succeeding years External External (i.e. Allied Medical, Engineering)  Unfavorable view from the general public  ASEAN Integration opening new talent of IT-BPM careers (dead-end or stopover markets and supply sources jobs)  Resurging demand for overseas work

What the SWOT Analysis describes for the KH is that at the core, the strength that the hub can build upon is the strong ties it has with the industry it serves. The work put into developing SMP and its attached products (BEST, AdEPT, GCAT) as well as the online counterpart in eSMP is what sets the offerings of the hub apart from similar competitors/offerings in the educational space. Coupled with the relationship anchored on the membership of IBPAP that allows the hub access to large potential employers and partners provides an edge that resonates with HEIs that are looking to become members.

Conversely, the SMP advantage is also its greatest weakness as the update cycle for curricular materials has not been put in place. These updates are critical to maintain relevance and keep with the needs of the industry and more importantly create the necessary alignment for the academic link. The weaknesses identified in Table 6 are

anchored on the lack of focused resource from IBPAP which the KH would be able to fill. When added with structural changes to the education environment such as the implementation of the K to 12 curriculum, these circumstances can create threats to the delivery and implementation of SMP by the KH.

Similarly, some negative perception that people generally have of the IT-BPM industry careers most especially the parents have made careers in the industry last-resort options. However as the industry diversifies in the work that is being brought in, more and more opportunities for individuals graduating with degrees other than those of BA and IT related courses are finding opportunities, not as last option jobs but rather as sustainable career trajectories. The K to 12 push also opens spaces for the SMP curriculum to be integrated, allowing for a wider reach for the program.

Key to how the KH will present itself as a business to its markets are the value propositions that it presents to these segments. Table 7 encapsulates the pitch per market segment (institutional vs. individual) that the KH performs for every service or function it offers.

Table 7: KH Value Proposition for Markets KH Function School Student Professional Training Opportunities Develop and Up-skill IT-BPM as a Career Career Advancement Faculty Choice Content & Certification Industry-aligned Boost Employability Remain relevant Merchandise Co-branding Aspiration Sentimentality Access to Employer Build Relationships Internship or Recruitment Be part of Alumni Network Network Internship & placement Additional revenue Gateway to employment Access to potential stream recruits Tuition Revenue SMP as new stream Scholarship opportunity Donor opportunity Advertisement & Support enrollment Get to know the industry Touch point with the Career Marketing push school

It is important to remember that the values here are based on the services described in Section II as supported by the survey for HEIs. Critical to each value proposition is the idea that and institution or individual that has expressed interest in becoming a member will need to translate their choice to participate into a purchase or availing a service.

For example, in order to convince schools to participate in internship opportunities and placement of their graduates, they have to realize that it is not just a matter of batch performance but they can realize an additional revenue stream from this activity through the function of one of the hubs strategic partners for recruitment. From a student’s view, participating and even paying for membership opens employment opportunities which can pay for the investment of membership over time. Professionals, especially among recr uiters can view the internship program as a way to gauge potential hires on whether they are a fit for the work environment or the demands of the business.

For the KH as a business, clearly communicating these propositions will be key to recruiting potential members into the hub, whether from an individual or institutional vantage point.

VIII. MARKETING STRATEGY

A. Purpose (Product)

The core of the hub offering is anchored on SMP (5 courses) and its ancillary programs (BEST, AdEPT and GCAT). However these products are tied to services that the hub will need to provide its membership namely:

(i) Faculty training - Based on the initial result of the survey conducted with HEIs, faculty training/ development is the first hurdle of implementing SMP in the schools. As SMP is a course that was created by the industry, most, if not all the HEIs agree that they need the knowledge hub to build the SMP set of teachers. Faculty training will involve the training of teachers under the 5 subjects of SMP. The school may or may not send a total of 5 teachers but in order for them to offer the SMP to students, teachers are to undergo training and get certified for each of the subjects. Conservatively and based on the onsite experience, all the 5 subjects necessitate at least 28 days to complete.

(ii) Certification and accreditation - In the onsite version of SMP, the Commission on Higher Education requires a certification from IBPAP and in the case of eSMP, IBPAP will rely on UP Open University for the online certification. All schools who intend to offer SMP are required to be certified by IBPAP to teach the course. In eSMP, membership to the knowledge hub will facilitate online certification.

(iii) Content and Merchandise - The selling of content and merchandise is a means to allow faculty/ student/developer access to curricular materials. As most of those who intend to implement SMP plan to deliver using a blended mode, it will necessitate the reproduction of modules and digital materials. Connectivity may vary in each school and striking a balance of what topics may be discussed online or onsite is left to the discretion of the teacher. Printed/ digital copied of materials will come in handy for both teachers and students.

(iv) Partnership/s with IT-BPM Firms - The SMP course requires site visits for teachers and internship for students. This mandatory feature is important as teachers have to understand the future working environment and the discipline that this working environment will exact from these students when they become employees. For students, it is mentally and psychologically preparing them of a possible employment in the IT-BPM industry. Undergoing the rigors during internship and being able to apply what was taught them will make them more competitive compared to other graduates who have not had this kind of exposure. Ideally, partnerships should be forged to build a more sustainable relationship between the supply (HEI) and the demand (IT-BPM Firms). As the partnerships deepen and allow the schools and employers to interact and get involved in talent development activities where they have common stakes or interests, the higher the chance of improving the hiring rate of students because the schools get more inputs/ feedbacks from prospective employers of their graduates and the firms is able to better position its recruitment processes and programs to facilitate internship and employment.

(v) Support to students for internship and employment - Both the school and the student will benefit from the membership to the knowledge hub. Those who have satisfactorily passed internship may be hired by the firm. This will also be favorable for the employer as less investment will be needed in fully on-boarding fresh graduates.

B. Procurement/Partnerships (Place)

In the modern digital and shared economy, traditional channels are rapidly losing traction and ground to efficient and more agile outfits. Since the hub is both a digital and physical component, the direct competition on both fronts will be difficult to manage. What is key in the strategy is finding shared value for SMP offerings rather than hoisting a competing product.

Even in membership, where direct competition will be fierce and value for limited budgets will be scrutinized, the shared value from partnerships with content, training and placement firms will help bolster the ability of the hub to present its membership offerings to potential primary clients.

Figure 7: Engagement vs Action for KH Competition

Transactional engagements with enablers, for example, allow for limited risk without committing to long-term contracts but still provide for quality reviews based on performance. In contrast, a strategic engagement with content providers will benefit not only the delive ry of SMP products but can also help entities with transactional engagements by providing both direct sell and commercially available content at the time of delivery.

C. Presence (Promotion)

The hub offers a host of services and products that are delivered both on-site and online. It also has a social component because its engagement with the secondary market, apart from the actual delivery of courses, is through social media channels. Advertising revenue will be anchored on the digital presence of the hub, therefore, number of users as well as traction of products such as eSMP will be critical in delivering the volumes needed to convince media buyers.

There is also a need to establish a footprint within the primary market space not just to increase membership but also to create brand awareness for the hub, SMP as a product and its attached services. This is initiated by either a direct contact for sell events (fora and conferences) or targeted business development activities with HEIs that are of particu lar interest to employers with high talent demand.

Sandbox

One particular approach that has been proven to be useful in creating traction is a trial subscription. This concept is implemented in the hub through a sandbox. The Sandbox is an option for potential members to try SMP cost-and-risk-free through the eSMP offering of UPOU. This creates an opportunity for faculty and administrators of HEIs who want to evaluate first-hand the content and methods for SMP. It also is a hook to bolster both eSMP subscription and the social media channels. The sandbox also applies for employers evaluating the value of SMP program and how they can utilize the different course offerings as a channel to slipstream their current training, leadership and development, and content modules into the schools to allow for closer linkages. This increases the like hood and interest of a school to sign up as a member knowing that a set of employers can eye them because of their curricular alignment.

Figure 8: Aligned Curriculum Goal for KH Products

Eventually, the sandbox would allow the partnerships between schools and employers to operate beyond the initial hub scope. This creates greater opportunities for the hub to move the relationship model for members from a program delivery into more sustainable customized activities which can be a future source of consulting revenue.

SMP Showcase Laboratory

Technology, whether as curricular aides or a key part of delivery (i.e. eSMP courses) will play a pivotal role in the conduct of hub services. Program delivery in the on-site and blended modality for SMP subjects are still done over traditional classrooms but h eavily supplemented by computer and internet technologies. Courses will require a computer and a connection, even in a fully on-line implementation, where individual course takers access the materials at their own convenience. More importantly, if these individuals want to undergo certification and assessment, they will still need to take their tests in a proctored/regulated environment with a good connection and reliable terminals. Whichever modality is used to deliver SMP, an environment that allows technologies to highlight the way the IT-BPM industry works is essential and serves both an operational (delivery) and aspirational (marketing) function.

In the CHED-sponsored implementation of SMP in the 17 State Universities and Colleges (SUCs) part of the delivery package were technology laboratories equipped with computers and connectivity, housed in spaces designed to mimic the corporate training environments of IT-BPM companies. These laboratories were setup in order to:

(i) Provide a segregated space in the campus/es where SMP can be delivered and housed physically, and (ii) Inspire and introduce students to the environment that they will enter in the IT -BPM space.

The ability to deploy/setup these laboratories also demonstrated the readiness and capability of participating schools. Often, in schools that have little resources to hoist and build additional classrooms, let alone fully equipped laboratories, the presence of a modern, furnished computer classroom environment, sponsored by an employer partner, serve s to boost the school’s willingness to invest more to participate in SMP to further strengthening the second purpose stated above.

Figure 9: Sponsored (Infosys) SMP Laboratory in Cavite State University

In order to create a model classroom environment that simulates the IT-BPM industry environment, the hub will house a showcase laboratory that will serve both training and certification needs, as well as become a showroom for potential members during visits and tours. While initially capital intensive because of the fit out and technology requirements, the laboratory can also serve as small meeting and conference space during times when it is not being used for hub program delivery activities such as faculty training or batch certification. The showcase laboratory much like those setup in the SUCs for the CHED- sponsored SMP run will be fitted and setup similar to corporate training venues and will have the following features:

(i) 70~100 square meters of useable floor area (ii) 20~25 computer units (desktops or laptops) for students and instructor (iii) Office productivity software and applications (iv) Projection and display systems (v) Modular furniture (vi) Internet and conferencing capabilities (vii) Fit out for electrical and networks to accommodate additional load and bandwidth for the laboratory (viii) 2~4 MBps dedicated leased line or 8+ MBps Asynchronous DSL

Figure 10: Sample Layout for Sponsored Laboratories

Figure 10 is a floor plan that illustrates how such a laboratory can be potentially setup. The final laboratory layout and configuration out will be designed based on the actual space selected for the office. The schematics provide an insight into how space utilization and maximization can be achieved for such a showcase laboratory.

Website and Social Media

While the showcase laboratory provides a physical space for interaction, a good number of hub activities will be delivered through virtual channels. This will require presence to provide a digital counterpart showcase. The website and social media interfaces of the hub are where members (potential or existing) as well as the general public can learn about the hub and interact with the community it serves. It is a channel to collect feedback and disseminate information on hub activities and programs.

The site architecture in Figure 11 illustrates how information moves between online entities which will be part of the hub partnership and infrastructure. The MoDEL implantation of UPOU for example would provide key data elements regarding secondary market participants engaged in both blended and online delivery modes, which are used by placement/recruitment partners when working on internship and career opportunities for the said participants. The placement partners in turn provide their career openings to other website channels to broaden reach. This interaction and fluidity of data movement will be setup as part of the online capabilities of the hub and will be integrated to its corresponding social media channel

Figure 11: Internet and Media Architecture for KH Digital Components

The hub will inherit and integrate existing social media accounts for the Service Management Program. These social media channels already have existing subscribership courtesy of previous implementations for SMP. These channels will provide the early traction needed to convince potential advertisers to partner and place ads with the hub. Interaction in social media is more personal and will therefore provide a better targeted and more granular control for the demographics that such potential advertisers want to engage.

However these qualities will also require more focus and moderation in order to prevent abuse and unwanted content from over running the conversations and interactions. Part of the critical skills required for hub employees will be a level of sophistication and knowledge in operating over social and internet media spaces.

Figure 12: Existing SMP Social Media Page

D. Pivot (People)

While the hub is primarily driven by membership, the price point and the corresponding revenues that can be derived from collected fees may not be enough to initially sustain the organization, this is why part of the critical pivot is to convert primary market membership to delivery of program components such as faculty training, certification, internships and content merchandising. These changes necessitate the efficient handover from business development functions into operations. The year 1 startup team is streamlined in that majority of the activities are concentrated on cultivating membership opportunities for HEIs and employer linkages. Most of the program delivery operations are going to be established implementations from the previous SMP projects under IBPAP. However the year 1 influx of new membership will require more human capital to be devoted to managing and monitoring of program components such as training. The skills, financial and operations pivot for the second year will move focus into secondary market transactions which will likewise require greater technology support.

The organization pivot is also evident in the fluid transition between digital and physical domains. For example, social media engagement will create the necessary demand and traction that will need to be converted into advertising revenue which can only be done with business development activities with potential advertisers. A similar case is critical to transition participants of online programs into internship or even career placements. While the online space provides relative ease of access, the movement and translation into onsite activities will require devoted human capital as opposed to automated systems.

E. Personalization (Price)

The Initial HEI survey inquired on what amount the HEIs were willing to pay. Most if not all responded that they are willing to be members of the knowledge hub with a fee. While the lowest amount (25,000.00) was chosen by most, some respondents added that they prefer a much lower amount. To get a better appreciation of the membership fee figure, a parallel research was conducted by IBPAP to show membership fees being paid by schools in other organizations they are affiliated with.

Prices were based on the existing rates being used by IBPAP in deploying the SMP onsite.

Table 8: Services Pricing Table Item Price Basis for Pricing Institutional Membership Schools 10,000.00 Price point is pegged from the subset of membership organizations that have academic institutions as members as w ell as associations for regulatory compliance. Employers 5,000.00 Price point is pegged from the subset of membership organizations that have employers as members CSOs 5,000.00 Price point is pegged from the subset of membership organizations that have CSOs as members Individual Membership Teachers 500.00 The price is compared against professional organizations w hose primary membership is comprised of faculty. Students 100.00 The price is paralleled w ith professional organizations that have chapter membership in schools. Professionals (Continuing education 1,000.00 The price is competitive w ith professional membership for BPO w orkers) organizations that have both a regulatory as w ell as industry focus. Membership Services - Institutional Faculty Training 28,000.00 This amount is based on the Training fee of Php 1000.00 per day used in the SMP public onsite trainings. The HEIs are projected to produce teachers for 5 subjects for a total of 28 days. Content & Merchandise 2,000.00 SMP onsite materials cost 1,400.00 and since most schools w ill use the blended mode, an allow ance for digital materials apart from the Module has to be included. Certification 200.00 This amount is just a portion of w hat UPOU w ill require as payment for certification. Membership Services - Students Content & Merchandise-Students 500.00 Cost of text books for students that w ill also include reproduction of digital materials Internship 100.00 Processing fee for the hub to be able to assist them for internship Placement 500.00 A percentage of the fees that the employers w ill have to pay to the BPO Career Hub w here placement of members and graduate students w ill take place. Advertising 100,000.00 Average cost Employers' Subscription 10,000.00 This w ill serve as a joining fee for employers w ho w ish to be involved in the hub operations (i.e. internship, hiring). This may be a fee that IBPAP can pay to the KH for members to be able to avail of the KH services.

IX. RESOURCES

The following Resources have been identified to build and operate the Knowledge hub:

A. Capital investments

Initially, the Knowledge hub will be nested in the IBPAP facilities. If and when the Knowledge Hub becomes a separate entity from IBPAP anytime within the 3 year-period, a provision to pay for rent has been proposed in this plan.

Most of the Knowledge Hub equipment requirement is assumed to be acquired as a premium from subscriptions in order to address the issue on the need for continuous maintenance and updating of equipment given that the Knowledge Hub is very dependent on technology.

Table 9: Cost of Subscriptions and Equipment No. of Units Total Equipment & Subscription Year 1 Year 2 & 3 Number Internet & Telecoms E1 Dedicated Leased Line* 1 (retain) 1 Unified Communication Service 6 9 15 Mobile Devices 6 9 15 Software & Services Productivity Software (MS Office) 6 9 15 Design Suite Package (Adobe Creative Suite) 6 9 15 Financial Software (Accounting and Payroll)* 1 (retain) 1 Communication Suite (Google Apps) 6 9 15 Web Hosting and Domain* 1 (retain) 1 Technology Equipment Laptop Computers 26 9 35 Laser Printer 2 0 2 Other Office Equipment Binding and Cutting Equipment 1 1 Presenter 1 2 3 Digital Camera 1 1 LCD Projectors 1 2 3 Digital Recorder 1 2 3 HD Video/ Digital Camera 1 1 * These items are paid as a unit regardless on the number of Users.

B. Key Staff and Job Functions

During its organizational year, the staffing will be conservatively kept at a level commensurate to the start-up activities in order to avoid any large cash outlay and while at the same time ensuring operational efficiencies. However, depending on the market response, the staffing pattern may be adjusted to make sure that the demand for KH services is adequately supported at any given time. Based on the initial targets and the amount of activities envisioned for the first year, six (6) key positions are necessary to fill-in. The organizational chart in Figure 13 presents the initial structure of the knowledge hub for year one.

Figure 13: KH Organization (Year 1)

Knowledge Hub Lead

The Knowledge Hub (KH) Lead is in charge of overseeing the entire operation of the Hub. The primary responsibility of the KH Lead is to direct the organization, including guiding senior level KH officials towards the achievement of its vision and mission and working towards both internal and external objectives to sustaining the organization’s growth. Among his/her functions in the first year is to seek business development opportunities and be the face of the hub in terms of marketing.

As the primary person responsible for the success of the KH business, the KH Lead assures the organization’s relevance to the IT-BPM and Education sectors, the accomplishment of its mission and vision and the accountability to a diverse set of stakeholders that includes students, IT-BPM employees, alumni of the SMP Program and other IT-BPM courses, government senior education policy makers and managers, IT-BPM firms, IT-BPM industry associations, civil society groups, local government and the general public.

Specifically, the KH Lead plans and directs all aspects of an organization's operations, policies, objectives, and initiatives, oversees the organization's membership, scholarship and other programs, projects, curriculum development initiatives, marketing, finance and accounting, HR and general administration functions. In addition, this individual is also responsible for strategically managing the KH internal and external clients.

IT and Operations Manager

Given that the primary role of the hub in membership and providing membership services, the IT and Operations Manager will focus on setting up both the membership processes that are linked into the IT component of the hub. He will also support the KH Lead in developing and delivering membership services and related activities. As the services expand and diversify, this position maybe split to have a full IT Manager and an Operations Manager.

Administrative and Finance Officer

During the period when the KH is being set up, the admin and finance officer will work with the Knowledge Hub Lead in setting up the admin and finance systems. The post holder will assume responsibility for financial administration and inputting, systems related to policies and procedures and general administration and tasks.

IT Officer The IT Officer will provide support to the IT and operations manager in terms of setting up the management information system and IT requirements of the Hub. Operationally, her/ his role is to do business analysis, database administration and helpdesk operation.

Membership Officer

The membership officer will provide support to the IT and Operations Manager in setting up the membership and linkages portal of the hub. Given that membership policies will need to be drafted before the IT processes could be installed, the membership officer will need to work on drafting the initial membership policies and processes. The number of Membership officers is expected to increase with the increase in membership.

Figure 14: KH Organization (Year 2 & 3)

In the second year of operation, the IT and operations manager will focus on the IT part of operations and two (2) managerial positions will be added to focus on the KH membership and the marketing and research activities. Additional Officer level positions shall be opened to handle training, certification, business development, finance and career marketing. The additional key positions to be hired for Year 2 are:

Membership Manager

Leading and managing the KH membership team, the Membership Manager is responsible for ensuring that a consistently high level of service is provided to members and that the objectives for the team are met/ exceeded, in particular regarding retention and member satisfaction. The post holder will need to ensure all new applications, renewals and regrades are handled efficiently and effectively, and that the processes to enable this are in place and continually improved. The post holder is responsible for improving the membership processes initially established to efficiently and effectively run the hub’s membership. S/he shall oversee activities pertaining to membership and services to members which include trainings and certification.

Marketing and Research Manager

The Marketing and Research Manager is a high level thinker who is comfortable finding and analyzing data, making strategic recommendations on their insights, and communicating action plans, next steps, and results with the management team. This position will include the business development and marketing for the hub and will also be responsible for developing the KH brand.

Training and Certification Officer

The KH Training officer will provide technical support to the Membership Manager in planning, developing, implementing and evaluating training and development programs of the hub including the certification process that entails the conduct of these trainings by members.

Career Marketing Officer

One of the key activities of the hub is the promotion, placement for, and expansion of opportunities for jobs in the IT-BPM space. As the number of partnerships grows, the ability to connect and monitor activities between employer recruitment and school placement will be a critical function within the hub. The Career Marketing Officer focuses on IT -BPM industry career-related activities by searching for, initiating and managing the employer partnership and work with placement company partners and schools for traditional career activities (job fairs, career talks, company tours and site visits) and well as non-traditional recruitment programs (digital campaigns). Within the schools and in the context of career marketing activities, the Career Marketing Officer will support the Marketing and Research Manager in developing and promoting the KH brand.

Finance Officer

As the KH expands its reach to more HEIs, the Administrative and Finance function shall be separated. In the second year, a finance officer shall be hired to allow more focus on the financial requirements of the hub. The Finance Officer reports to the KH Lead and is responsible for preparing financial statements, maintaining cash controls, preparing the payroll and personnel administration, purchasing, maintaining accounts payable and managing office operations. Failure to provide adequate services may result in lost or misused revenues, inaccurate financial statements and financial hardships for employees, contractors and suppliers if the payroll and/or accounts payables are not processed in an accurate and timely manner. The Finance Officer will also serve as the cost and project accountant. It is expected that funding from donor agencies, sponsors and government will begin to flow beginning year two.

Membership Officer

This post-holder will provide support to the Membership Manager in recruiting and retaining new and existing members through the delivery of excellent customer service, supporting potential members through the application process and advising existing members with all aspects of their membership. This role will support two teams: Membership and membership Services Team. The proportion of time spent in each team will vary throughout the year depending on priorities and workload.

Business Development Officer

The Business Development Officer creates and builds client relationships while sponsoring interaction to obtain projects. This role assists in developing and facilitating the proposal process for specific clients/sponsors including budget and pricing development, proposal writing, contract negotiations and client presentations.

The detailed job descriptions of the different positions in the KH organization are presented in Annex B.

C. Background Details of Key People

The four (4) key management positions are proposed to possess the following qualifications, experience, and training.

Knowledge Hub Lead

Education (i) University degree in the field of business administration, finance, management, Information technology, education or related field (ii) Master’s degree in Business Administration or any related field (iii) A minimum of 5 years in a senior executive management position and 5 years in direct applicable work experience

Knowledge & Experience (i) 10-15 years’ experience in managerial/operation positions. (ii) Experience working with the government. (iii) Excellent knowledge of business theory, business processes, management, budgeting, and business office operations. (iv) Good understanding of MIS systems design and functions (v) Proven experience in operations planning, organization, and development. (vi) Superior understanding of project management principles. (vii) Excellent understanding of the organization’s goals and objectives. (viii) Superior ability to analyze and solve business problems. (ix) In-depth knowledge of applicable government education laws and regulation, not- for-profit rules and regulations and multilateral and bilateral procedures and processes. (x) Excellent understanding of human resource management principles, practices, and procedures. (xi) Proven leadership ability. (xii) Ability to set and manage priorities judiciously.

Personal Attributes (i) Demonstrated competencies in four broad categories: commitment to results, business savvy, leading change and motivating (ii) Brilliant strategist (iii) Systems thinker with a strong customer/service orientation. (iv) Goal driven and able to translate broad goals into achievable steps (v) Excellent negotiating and leadership skills. (vi) Possesses the ability to identify relevant information and helps transform this information into individual and organizational knowledge and learning. (vii) Possesses experience in integrating and coordinating diverse areas of management. (viii) Is action oriented and innovative? (ix) Takes advantage of opportunities, is a self-starter and a team player (x) Consistently displays integrity, models behavior, develops people, and builds teams. (xi) Deals effectively with demanding/challenging situations and designs and implements interventions to address these. (xii) Effectively manages continuity, change and transition

IT and Operations Manager

Education (i) University degree in the field of business administration, finance, management, Information technology or related field (ii) A minimum of 3 years in a management position and 3 years in direct applicable work experience

Knowledge and Experience (i) 3 years’ experience in managerial/operation positions (ii) Experience working with the government. (iii) Superior ability to analyze and solve business problems (iv) In-depth knowledge of applicable government education laws and regulation, not- for-profit rules and regulations and multilateral and bilateral procedures and processes (v) A broad understanding of the common user concerns for hardware, software, connectivity and IT infrastructure. (vi) Excellent grasp of the Microsoft Windows operating environment, Microsoft Office and productivity suites and related network features (vii) Familiarity with the Google Applications for Business platform and related technologies (Gmail, Drive, Calendar, Site) (viii) Grasp of Small Office (SO) wired and wireless networking design, protocols and implementations (ix) Knowledge in database design and implementations, preferably with experience in working with SQL or similar relational databases (x) The ability to properly communicate and explain to the users, the diagnosis, options and best course of action to be undertaken for his/her IT-concern

Membership Manager

Knowledge & Experience (i) 5 years’ experience in managerial/operation positions (ii) Experience working with the government. (iii) Superior ability to analyze and solve business problems (iv) In-depth knowledge of applicable government education laws and regulation, not- for-profit rules and regulations and multilateral and bilateral procedures and processes (v) Proven leadership ability (vi) Experience in Training and processes of certification (vii) Ability to set and manage priorities judiciously

Skills (i) Working knowledge of computers in a windows environment (ii) Demonstrate excellent oral and written communication skills (iii) Must be able to function as part of a team (iv) Maintain professional and positive demeanor (v) Proven accuracy and attention to detail

Marketing & Research Manager

Knowledge and Experience (i) Minimum 3 years of data analysis experience in market research, quantitative analysis, information systems, product management or other related fields (ii) Experience in ERP systems (InforSyteline experience a plus) (iii) Experience with CRM systems (iv) Expertise in Microsoft Excel and/or Access (v) Expertise in data analysis software such as Tableau or SPSS (vi) Experience in data modeling (vii) Deep knowledge of web, email, and social media analytics tools (viii) Demonstrated experience capturing and documenting business requirements (ix) Experience writing test and survey plans and coordinating testing (x) Excellent written and verbal communication skills (xi) Excellent organizational skills, with ability to prioritize and manage multiple projects (xii) Self-directed, works well in team environment

X. FINANCIAL ANALYSIS

The financial projections for the hub’s first three years of operation are attached in Annex A.

A. Funding Requirement

The total project funding requirement is estimated at approximately PHP 22.5 Million. The bulk of the funds will be used towards office fit out (inclusive of laboratory and IT equipment) and working capital in properly staffing and equipping the organization. Included in this amount are funds for operationalizing the KH Strategy and Ecosystem Research and Talent Development Fund estimated at PHP 4.5 Million. These cost items pertain to key investment disbursements that are not directly related to the day-to-day operations of the hub but are necessary to build the strategy and ecosystem by which the hub will contextualize its operations.

B. Sources of Funds

The sources of funds in terms of operations are membership fees, training and certification fees, share in placement fees, sale of content and merchandise and employers’ subscription in addition to advertising revenues.

As this is a start-up social enterprise, the first two years of operation are investment years, characterized by a huge outflow due to the bulk of capitalization in setting up, staffing and equipping the hub. Consequently, for Year 1, direct and indirect costs are projected to be greater than the projected revenues and cash in-flows from other fund sources. Key overhead cost items are payroll and office fit out costs as well as marketing expenses. However there are close to PHP 12 Million in revenues expected to be generated in Year 1, as the projects supply and demand foundations will have been built in the preceding TA, ready to be monetized in terms of scaling affordable student memberships and the need for materials and supporting merchandise comprising 57% of total revenues.

By Year 2, standardized processes, student membership growth at tipping point and HEIs smoothly running SMP courses and internships is expected to almost triple revenues to PHP 31.5 Million and double cost of sales to PHP 18.7 Million. This will result in driving significant margin growth to the bottom line as overhead costs are expected to increase by 30% overall in the same period, resulting in a projected profit of PHP 3.2 Million.

The results of scaling will be apparent by Year 3 as a critical mass of some 248 HEIs and 46,000 student members will hopefully be generating close to PHP 57.4 Million in revenues without the need for overheads to increase as staffing levels should be maintained as scale increases will be supported by automated MIS processes and activities.

Table 10: Profit and Loss Year 1 Year 2 Year 3 Net Profit/(Loss) (5,070,060.00) 3,284,260.00 19,379,620.00

At these levels of profitability the hub would be able to allocate its surplus towards enhanced product R&D, including adding to the curriculum and other allied subjects as well as to supporting strategic projects for future growth of the KH.

C. Cash Flow Forecast

The Cash Flow Forecast shows a positive Cash Balance in the first year as negative operating cash flows are augmented by the proposed seed capital from the Asian Development Bank (ADB). Similarly Year 2 shows that Cash Outflows will exceed Cash Inflows from the membership revenue and this shall be augmented by the net cash f low from the previous year. Assuming that revenues from membership are collected 70% of each year, in the third year of operation, the Knowledge Hub will begin to be sustainable and will have enough cash to go into further expansion in year 4.

Table 11: Cash Flow Year 1 Year 2 Year 3 Opening Cash Balance (A) Nil 10,697,640 6,753,100 ADB Funding (B) 22,500,000 N/A N/A Total Cash Inflow from Operations 8,358,700 25,658,200 49,611,700 Total Cash Outflow from Operations 20,161,060 29,602,740 37,978,380 Net Cash Flow from Operations (C) (11,802,360) (3,944,540) 11,633,320 Closing Cash Balance (A)+(B)+(C) 10,697,640 6,753,100 18,386,420

More importantly, the one time ADB funding for this project should be sufficient to enable the hub to move forward towards sustainability without the need for additional funding.

D. Break-even

Breakeven in Year 2 will be achieved at the 130th school mark, assuming that student membership hits 26,000 cumulatively that will also drive merchandise revenues. Significant effort will be required to achieve these targets from implementation starting with 62 schools and almost 10,000 students in Year 1. Scaling expansion after Year 1 and doubling will be possible owing to continued demand for service management trained talents in IT-BPM and other sectors, as well as due to buy-in from pioneer HEIs who have seen successful implementations and KH relationships working in peer schools.

E. Internal Rate of Return

The Internal Rate of Return (IRR) for this project is estimated at 10% only after 5 years. Key assumptions here include the multiplier on net cash flow growth in Years 4 and 5 by 1.5 times. Until Year 3, IRR continues to be negative as Year 3 will be the first year that operating cash flows are positive.

Table 12: Internal Rate of Return (Break-even) IRR Calculation Y0 Y1 Y2 Y3 Y4 Net Cash Flows -22,500,000 -11,802,360 -5,902,464 8,851,804 13,277,706

IRR Y2 IRR Y3 IRR Y4 IRR N/A -50% -18%

Remarks From From From From Assumption Projections: Projections: Projections: Projections: for cash flow ADB Net cash No IRR as Net cash growth is Investment flow from no positive flow from 1.5x Y3 net operations income operations cash flow

If using the breakeven scenario, then IRR is estimated at -50%, -18% for Years 3 and 4 respectively and 1% only after 5 years.

If compared to a for profit business, then these low IRRs may be well below typical hurdle rates. For a non-profit social enterprise focusing beyond the bottom line outputs such as talent development, improving service delivery skills, job matching leading to job generation and lowering the unemployment rate however, then these lower hurdle rates may be acceptable as the potential value of the result is much more significant and important than the actual cash flows generated within the project in isolation. Further, not included in the calculation of this rate are the corresponding impacts on local economies of increased consumption by thousands of young professionals entering the work force, their subsequent tax contribution to the Philippine Government and the impact to socio-economic growth.

ANNEXES A. Financials 1. Financials Analysis 2. Breakeven Scenario 3. Training Costs

B. Detailed Job Descriptions 1. Year 1 Organization Structure 2. Year 2 & 3 Organization Structure

C. Survey Instruments

Annex A: Financials 3

ANNEX A: Financials 4 Section 1: Financial Analysis

Section 1: Financial Analysis

Annex A: Financials 5

Table 1 - 1. General Assumptions for Funding

Year 1 Year 2 Year 3 Net Profit/ (Loss) (5,070,060.00) 3,284,260.00 19,379,620.00

Capital Investment KH Investment 20,250,000.00 20,250,000.00 20,250,000.00 KH Strategy and Ecosystem Research 2,250,000.00 2,250,000.00 2,250,000.00 Total KH Capital Investment 22,500,000.00 22,500,000.00 22,500,000.00

Return on Investment -23% 15% 86%

Table 1 - 2. KH Project Profit/ Loss Projection Summary

Account Items Year 1 Year 2 Year 3 Revenue 11,941,000.00 31,537,000.00 57,358,000.00 Less: Cost of Sales/ Services 9,686,160.00 18,662,040.00 28,387,680.00 Gross Margin 19% 41% 51%

Operating Revenues 2,254,840.00 12,874,960.00 28,970,320.00

Overhead Cost Payroll 996,000.00 4,648,000.00 4,648,000.00 Office Rent 1,320,000.00 1,320,000.00 1,320,000.00 Office Fit-out 1,500,000.00 - - Utilities (Aircon, Light and 21,600.00 21,600.00 21,600.00 Subscriptions (internet, 785,600.00 1,174,700.00 1,174,700.00 Office Supplies 120,000.00 120,000.00 120,000.00 Meetings and Representation 192,000.00 192,000.00 192,000.00 Marketing 1,000,000.00 1,000,000.00 1,000,000.00 Local Transportation 120,000.00 144,000.00 144,000.00 National Travel 235,200.00 470,400.00 470,400.00 Equipment 1,034,500.00 500,000.00 500,000.00 Total Overhead Cost 7,324,900.00 9,590,700.00 9,590,700.00

Net Profit/ (Loss) (5,070,060.00) 3,284,260.00 19,379,620.00

Year 1 Year 2 Year 3 Net Profit/ (Loss) (5,070,060.00) 3,284,260.00 19,379,620.00

6 Section 1: Financial Analysis

Table 1 - 3. Projected KH Cash Flow

YEAR 1 YEAR 2 YEAR 3

Operational Cash from Operations* 8,358,700.00 22,075,900.00 40,150,600.00 Cash from Receivables** - 3,582,300.00 9,461,100.00 Operating Cash Inflow 8,358,700.00 25,658,200.00 49,611,700.00 Other Cash Inflows KH Investment*** 18,000,000.00 - - KH Strategy and Ecosystem Research*** 2,250,000.00 - - TDF Seed Capital*** 2,250,000.00 - - Total Other Cash Inflows 22,500,000.00 - -

Total Cash Inflow 30,858,700.00 25,658,200.00 49,611,700.00 Less: Cash Outflows Cost of Sales 9,686,160.00 18,662,040.00 28,387,680.00 Overhead Cost 7,324,900.00 9,590,700.00 9,590,700.00 Operating Cash Outflow 17,011,060.00 28,252,740.00 37,978,380.00

KH Strategy and Ecosystem Research**** 2,250,000.00 - - TDF Seed Capital**** 900,000.00 1,350,000.00 - Other Cash Outflows 3,150,000.00 1,350,000.00 -

Total Cash Outflow 20,161,060.00 29,602,740.00 37,978,380.00

Net Cash Flow 10,697,640.00 (3,944,540.00) 11,633,320.00

Cash Balance 10,697,640.00 6,753,100.00 18,386,420.00

Notes: *70% collected on Revenue for Year 1, Year 2 & Year 3 **30% of Revenue collected for A/R ***Capital Investment components from ADB: KH Investment, KH Strategy and Ecosystem Research, TDF Seed Capital ****Assuming KH Strategy and Ecosystem Research consume on Year 1 ****Assuming 40% of TDF Seed capital consumed on year 1; 60% of TDF Seed capital consumed on year 2

IRR Calculation Y0 Y1 Y2 Y3 Y4 Y5

Net Cash Flows (22,500,000.00) (11,802,360.00) (3,944,540.00) 11,633,320.00 17,449,980.00 26,174,970.00

IRR Y2 IRR Y3 IRR Y4 IRR Y5

IRR #VALUE! -40% -9% 10%

Assumption for Assumption for From Projections: From Projections: From Projections: cashflow growth is cashflow growth is From Projections: Net cash flow from No IRR as no Net cash flow from 1.5x Y3 net 1.5x Y4 net Remarks ADB Investment operations positive income operations cashflow cashflow

Table 1 - 4. Revenues

Revenue Target 10,000,000.00 Yearly Respondent Data Set 124 Schools

Year 1 Year 2 Year 3 Streams Price Point Sole Source Volume Value Volume Value Volume Value Membership 3,124,000.00 7,542,000.00 12,976,000.00 Institutional 620,000.00 1,550,000.00 2,480,000.00 Schools 10,000.00 1,000 62 620,000.00 155 1,550,000.00 248 2,480,000.00 Employers 5,000.00 2,000 - - - CSOs 5,000.00 2,000 4 20,000.00 8 40,000.00 16 80,000.00

Individuals 2,484,000.00 5,952,000.00 10,416,000.00 Teachers 500.00 20,000 - - - Students 200.00 50,000 9,920 1,984,000.00 29,760 5,952,000.00 52,080 10,416,000.00 Professionals (Continuing education fo 1,000.00 10,000 500 500,000.00 - -

Membership Services 8,197,000.00 22,445,000.00 41,402,000.00 Teachers Training 28,000.00 357 62 1,736,000.00 155 4,340,000.00 248 6,944,000.00 Content & Merchandise 2,000.00 5,000 310 620,000.00 775 1,550,000.00 1,240 2,480,000.00 Certification 100.00 100,000 310 31,000.00 7,750 775,000.00 1,240 124,000.00 Students Content & Merchandise-Students 500.00 20,000 9,920 4,960,000.00 29,760 14,880,000.00 52,080 26,040,000.00 Internship 100.00 100,000 1,000 500,000 2,000 200,000.00 12,920 1,292,000.00 Placement 500.00 20,000 700 350,000.00 1,400 700,000.00 9,044 4,522,000.00 Advertising 100,000.00 100 - - 5 500,000.00 Employers' Subscription 10,000.00 1,000 62 620,000.00 155 1,550,000.00 248 2,480,000.00 Revenue Totals 11,941,000.00 31,537,000.00 57,358,000.00

Assumptions: 1. Faculty Training is 5 Trainees per School 2. Content and merchandising are: costs of books/manuals to be sold a. For students are textbooks b. For Teachers are manuals 3. Students=35 students/per term 4. Teachers: SMP has 5 subjects to be taught

Annex A: Financials 7

8 Section 1: Financial Analysis

Table 1 - 5. Cost of Services/Direct Cost

Cost Centers Year 1 Year 2 Year 3 1 Payroll 5,976,000.00 8,300,000.00 8,300,000.00 2 Training* 920,160 2,147,040.00 5,827,680.00 3 Contents and Merchandise-Teacher 310,000 775,000.00 1,240,000.00 4 Contents and Merchandise-Student 2,480,000 7,440,000.00 13,020,000.00 Total 9,686,160.00 18,662,040.00 28,387,680.00 *Training Costs - (separate Annex Section)

Table 1 - 6. Staffing/Human Resource Cost

Program Management (Expense) Program Operations (Cost of Services) Positions # Rate/ Month Amount Year 1 Years 2 and 3 Year 1 Years 2 and 3 # Amount # Amount # Amount # Amount Knowledge Hub Le 1 200,000.00 200,000.00 - - 1 200,000.00 1 200,000.00 Managers-Core 1 100,000.00 100,000.00 - 1 100,000.00 - - Manager-Operatio 2 80,000.00 160,000.00 - - 1 80,000.00 2 160,000.00 Officers 5 40,000.00 200,000.00 1 40,000.00 3 120,000.00 2 80,000.00 2 80,000.00 Staff Support 6 20,000.00 120,000.00 1 20,000.00 3 60,000.00 - 3 60,000.00 Total Month Payrol 15 780,000.00 2 60,000.00 7 280,000.00 4 360,000.00 8 500,000.00 Annual Payroll 10,140,000.00 780,000.00 3,640,000.00 4,680,000.00 6,500,000.00 Benefits 2,808,000.00 216,000.00 1,008,000.00 1,296,000.00 1,800,000.00 Total Annual Staffing Cost 12,948,000.00 996,000.00 4,648,000.00 5,976,000.00 8,300,000.00

Annex A: Financials 9

Table 1 - 7. Capital Expenditure

Purchased Leased Total Subscriptions Line Item Direct Capitalization Cost (Monthly) Y1 Y2&3 Internet & Telecoms E1 Dedicated Leased Line* 36,000.00 432,000.00 432,000.00 Unified Communication Service 1,500.00 108,000.00 270,000.00 Mobile Devices Managers 2,000.00 48,000.00 96,000.00 Officers 1,500.00 72,000.00 126,000.00 Staff 1,000.00 0 48,000.00

Software & Services Productivity Software (MS Office) 15,000.00 3,000.00 18,000.00 45,000.00 Design Suite Package (Adobe Creative S 120,000.00 2,300.00 27,600.00 55,200.00 Financial Software (Accounting and Payro 75,000.00 5,000.00 60,000.00 60,000.00 Communication Suite (Google Apps) 2,500.00 15,000.00 37,500.00 Web Hosting and Domain* 5,000.00 5,000.00 5,000.00 785,600.00 1,174,700.00

Total Cost of Equipment Y1 Y2&3 Technology Equipment Laptop Computers 35,000.00 910,000.00 315,000.00 Laser Printer (2) 36,000.00 72,000.00 LCD Projectors Other Office Equipment Binding and Cutting Equipment 10,000.00 10,000.00 Presenter (3 @ 3,000.00) 9,000.00 3,000.00 6,000.00 Digital Camera(1 @ 10000.00) 10,000.00 10,000.00 LCD Projectors (2) 47,000.00 23,500.00 47,000.00 Digital Recorder (3) 18,000.00 6,000.00 12,000.00 HD Video/ Digital Camera 120,000.00 - 120,000.00 Balance of Capex for Purchase 214,000.00 1,034,500.00 500,000.00

Assumption: 1. Item is fixed annual cost 2. Printer: Ideally 5 users/ printer

10 Section 1: Financial Analysis

Table 1 - 8. Overhead Cost on Office Operations

Office Space 100 Sqm

Operating & admin cost Yr 1 Year 2 & 3 1 Payroll 996,000.00 4,648,000.00 2 Office Rent (with 1 mtg room) 1,320,000.00 1,320,000.00 Fit-Out 1,500,000.00 3 Utilities (Aircon, Light and Water) 21,600.00 21,600.00 4 Subscriptions (internet, communications…) 785,600.00 1,174,700.00 5 Supplies 120,000.00 120,000.00 6 Meetings and Representation 192,000.00 192,000.00 7 Marketing 1,000,000.00 1,000,000.00 8 Local Transportation 120,000.00 144,000.00 9 National Travel 235,200.00 470,400.00 Total 6,290,400.00 9,090,700.00 # Plus Capex 1,034,500.00 500,000.00 Total Overhead 7,324,900.00 9,590,700.00

Computation of Unit Price Monthly A. Office Rent (with 1 mtg room) 1000 100,000.00 CUSA (Common Use Service Area) 50 5,000.00 Parking 5000 5,000.00 Total 110,000.00 B.. Utilities Aircon 176 17,600.00 Light and Water 40 4,000.00 21,600.00

Assumption: 1. Office Space -Assuming that the total w orking space is 75 sq. m; Parking is fixed cost 2. Utilities - computed on rate per square meter 3. Office Supplies - Assuming that 10k fixed expense on each month 4. Meetings -Assuming 10 persons given rate on each is Php 200.00, tw ice a w eek. Computed on a monthly basis.

Annex A: Financials 11

Table 1 - 9. National Travel Cost Summary Projection

Year 1 Year 2 Year 3 Targeted No. of Schools 62 124 248 No. of Trip on Cebu/Davao 8 16 32 No. of Trip on Luzon 10 20 40

National Travel-Airfare 160,000.00 320,000.00 640,000.00 Per Diem 11,200.00 22,400.00 44,800.00 Land Travel 40,000.00 80,000.00 160,000.00 Accommodation 24,000.00 48,000.00 96,000.00

Total Travel Cost 235,200.00 470,400.00 940,800.00

Assumption: 1. Assuming tw o (2) staff w ill travel for 3 year projections 2. Airfare travel cost is 10,000 for Round Trip Ticket 3. Per Diem Allow ance - Php 700.00 4. Land Travel cost is Php 4,000 per trip 5. Accommodation - Php 1,500 per night

Table 1 - 10. Objectives

Revenue Target 10,000,000.00 Respondent Data Set 124

Year 1 Year 2 Year 3 Computation Revenue Streams 50% 125% 200% Institutional Membership Schools 62 155 248 Additional 75% on target yearly CSOs 4 8 16 Double targets every year Individual membership Students 9,920 29,760 52,080 Yr: 3 subjects Professionals 500 (Continuing education for BPO workers) Membership Services Teachers Training 310 155 248 (No. of HEIs x 5 subjects) Content & Merchandise 310 775 1,240 (No. of HEIs x 5 subjects) Certification 310 7,750 1,240 (No. of HEIs x 5 subjects) Students Content & Merchandise 9,920 29,760 52,080 (No. of HEI x 40 students/class x 2 subjects x 2 terms) Internship 1,000 2,000.0 12,920 Year 1-2 CHED SUCs; Year 3 ADB HEIs Placement 700 1,400 9,044 70% of Interns Advertising 5 Employers' Subscription 62 124 248 Ratio 1:1 (One Employer for every HEI)

Section 1: Financial Analysis 12

Annex A: Financials 13

Section 2: Breakeven Scenario

14 Section 2: Breakeven Scenario

Table 2 - 1. General Assumptions for Funding

Year 1 Year 2 Year 3 Net Profit/ (Loss) (5,070,060.00) - 16,651,157.85

Return on Investment -23% 0% 74%

Table 2 - 2. KH Project Profit/ Loss Projection Summary

Account Items Year 1 Year 2 Year 3 Revenue 11,941,000.00 27,115,880.77 53,113,725.54 Less: Cost of Sales/ Services 9,686,160.00 17,525,180.77 26,871,867.69 Gross Margin 19% 35% 49%

Operating Revenues 2,254,840.00 9,590,700.00 26,241,857.85

Net Profit/ (Loss) (5,070,060.00) - 16,651,157.85

Year 1 Year 2 Year 3 Net Profit/ (Loss) (5,070,060.00) - 16,651,157.85

Annex A: Financials 15

Table 2 - 3. Projected KH Cash Flow

YEAR 1 YEAR 2 YEAR 3

Operational Cash from Operations* 8,358,700.00 18,981,116.54 37,179,607.88 Cash from Receivables** - 3,582,300.00 8,134,764.23 Operating Cash Inflow 8,358,700.00 22,563,416.54 45,314,372.11 Other Cash Inflows KH Investment*** 18,000,000.00 - - KH Strategy and Ecosystem Research*** 2,250,000.00 - - TDF Seed Capital*** 2,250,000.00 - - Total Other Cash Inflows 22,500,000.00 - -

Total Cash Inflow 30,858,700.00 22,563,416.54 45,314,372.11 Less: Cash Outflows Cost of Sales 9,686,160.00 17,525,180.77 26,871,867.69 Overhead Cost 7,324,900.00 9,590,700.00 9,590,700.00 Operating Cash Outflow 17,011,060.00 27,115,880.77 36,462,567.69

KH Strategy and Ecosystem Research**** 2,250,000.00 - - TDF Seed Capital**** 900,000.00 1,350,000.00 - Other Cash Outflows 3,150,000.00 1,350,000.00 -

Total Cash Outflow 20,161,060.00 28,465,880.77 36,462,567.69

Net Cash Flow 10,697,640.00 (5,902,464.23) 8,851,804.42

Cash Balance 10,697,640.00 4,795,175.77 13,646,980.18

IRR Calculation Y0 Y1 Y2 Y3 Y4 Y5

Net Cash Flows (22,500,000.00) (11,802,360.00) (5,902,464.23) 8,851,804.42 13,277,706.62 19,916,559.93

IRR Y2 IRR Y3 IRR Y4 IRR Y5

IRR N/A -50% -18% 1%

From Assumption for Assumption for From From Projections: Projections: No From Projections: cashflow growth cashflow growth Projections: ADB Net cash flow IRR as no Net cash flow is 1.5x Y3 net is 1.5x Y4 net Remarks Investment from operations positive income from operations cashflow cashflow

Section 2: Breakeven Scenario 16

Table 2 - 4. Revenues

Revenue Target 10,000,000.00 Yearly Respondent Data Set 124 Schools

Year 1 Year 2 Year 3 Streams Price Point Sole Source Volume Value Volume Value Volume Value Membership 3,124,000.00 6,480,931.38 11,763,350.15 Institutional 620,000.00 1,297,364.62 2,480,000.00 Schools 10,000.00 1,000 62 620,000.00 130 1,297,364.62 248 2,480,000.00 Employers 5,000.00 2,000 - - - CSOs 5,000.00 2,000 4 20,000.00 8 40,000.00 16 80,000.00

Individuals 2,484,000.00 5,143,566.77 9,203,350.15 Teachers 500.00 20,000 - - - Students 200.00 50,000 9,920 1,984,000.00 25,718 5,143,566.77 46,017 9,203,350.15 Professionals (Continuing education fo 1,000.00 10,000 500 500,000.00 - -

Membership Services 8,197,000.00 19,337,584.77 38,370,375.38 Teachers Training 28,000.00 357 62 1,736,000.00 130 3,632,620.92 248 6,944,000.00 Content & Merchandise 2,000.00 5,000 310 620,000.00 649 1,297,364.62 1,240 2,480,000.00 Certification 100.00 100,000 310 31,000.00 6,487 648,682.31 1,240 124,000.00 Students Content & Merchandise-Students 500.00 20,000 9,920 4,960,000.00 25,718 12,858,916.92 46,017 23,008,375.38 Internship 100.00 100,000 1,000 500,000 2,000 200,000.00 12,920 1,292,000.00 Placement 500.00 20,000 700 350,000.00 1,400 700,000.00 9,044 4,522,000.00 Advertising 100,000.00 100 - - 5 500,000.00 Employers' Subscription 10,000.00 1,000 62 620,000.00 130 1,297,364.62 248 2,480,000.00 Revenue Totals 11,941,000.00 27,115,880.77 53,113,725.54

Assumptions: 5. Faculty Training is 5 Trainees per School 6. Content and merchandising are: costs of books/manuals to be sold a. For students are textbooks b. For Teachers are manuals 7. Students=35 students/per term 8. Teachers: SMP has 5 subjects to be taught

Table 2 - 5. Cost of Services/Direct Cost

Cost Centers Year 1 Year 2 Year 3 1 Payroll 5,976,000.00 8,300,000.00 8,300,000.00 2 Training* 920,160 2,147,040.00 5,827,680.00 3 Contents and Merchandise-Teacher 310,000 648,682.31 1,240,000.00 4 Contents and Merchandise-Student 2,480,000 6,429,458.46 11,504,187.69 Total 9,686,160.00 17,525,180.77 26,871,867.69 *Training Costs - (separate Annex Section)

Table 2 - 6. Staffing/Human Resource Cost

Program Management (Expense) Program Operations (Cost of Services) Positions # Rate/ Month Amount Year 1 Years 2 and 3 Year 1 Years 2 and 3 # Amount # Amount # Amount # Amount Knowledge Hub Lead 1 200,000.00 200,000.00 - - 1 200,000.00 1 200,000.00 Managers-Core 1 100,000.00 100,000.00 - 1 100,000.00 - - Manager-Operations 2 80,000.00 160,000.00 - - 1 80,000.00 2 160,000.00 Officers 5 40,000.00 200,000.00 1 40,000.00 3 120,000.00 2 80,000.00 2 80,000.00 Staff Support 6 20,000.00 120,000.00 1 20,000.00 3 60,000.00 - 3 60,000.00 Total Month Payroll 15 780,000.00 2 60,000.00 7 280,000.00 4 360,000.00 8 500,000.00 Annual Payroll 10,140,000.00 780,000.00 3,640,000.00 4,680,000.00 6,500,000.00 Benefits 2,808,000.00 216,000.00 1,008,000.00 1,296,000.00 1,800,000.00 Total Annual Staffing Cost 12,948,000.00 996,000.00 4,648,000.00 5,976,000.00 8,300,000.00

Annex A: Financials 17

18 Section 2: Breakeven Scenario

Table 2 - 7. Capital Expenditure

Assumption: 3. Item is fixed annual cost 4. Printer: Ideally 5 users/ printer

Annex A: Financials 19

Table 2 - 8. Overhead Cost on Office Operations

Office Space 100 Sqm

Assumption: 5. Office Space -Assuming that the total w orking space is 75 sq. m; Parking is fixed cost 6. Utilities - computed on rate per square meter 7. Office Supplies - Assuming that 10k fixed expense on each month 8. Meetings -Assuming 10 persons given rate on each is Php 200.00, tw ice a w eek. Computed on a monthly basis.

20 Section 2: Breakeven Scenario

Table 2 - 9. National Travel Cost Summary Projection

Year 1 Year 2 Year 3 Targeted No. of Schools 62 124 248 No. of Trip on Cebu/Davao 8 16 32 No. of Trip on Luzon 10 20 40

National Travel-Airfare 160,000.00 320,000.00 640,000.00 Per Diem 11,200.00 22,400.00 44,800.00 Land Travel 40,000.00 80,000.00 160,000.00 Accommodation 24,000.00 48,000.00 96,000.00

Total Travel Cost 235,200.00 470,400.00 940,800.00

Assumption: 6. Assuming tw o (2) staff w ill travel for 3 year projections 7. Airfare travel cost is 10,000 for Round Trip Ticket 8. Per Diem Allow ance - Php 700.00 9. Land Travel cost is Php 4,000 per trip 10. Accommodation - Php 1,500 per night

Table 1 - 11. Objectives

Revenue Target 10,000,000.00 Respondent Data Set 124

Annex A: Financials 21

Section 2: Breakeven Scenario 22

Section 3: Training Costs

Table 3 - 1. Summary of Training Revenue & Cost (3 Year Projection)

year 1 year 2 year 3 worst case base case base case base case Training Revenue 700,000 1,736,000 3,472,000 9,464,000

Trainer Cost: Trainer Professional Fee 140,000.00 420,000.00 980,000.00 2,660,000.00 Travel 40,000.00 120,000.00 280,000.00 760,000.00 Accommodation 42,000.00 126,000.00 294,000.00 798,000.00 Per Diem 19,600.00 58,800.00 137,200.00 372,400.00 Meals 14,000.00 42,000.00 98,000.00 266,000.00 Total Training Cost (Direct) 255,600.00 766,800.00 1,789,200.00 4,856,400.00 20% PM Cost 153,360.00 357,840.00 971,280.00 Total Training Cost 920,160.00 2,147,040.00 5,827,680.00

Net Training Revenue 444,400.00 815,840.00 1,324,960.00 3,636,320.00

Assumption: 1. Assuming Php28k cost per school on complete SMP Track training 2. Combine BPO101 & 102 Training--10 days; BusCom--6 days; Service Culture--6 days and Systems Thinking--6 days 3. Trainer Prof Fee--Php 5,000.00 4. Round Trip ticket for National Travel fixed on Php 10,000 5. Accommodation--Php 1,500 per night 6. Per Diem Allow ance--Php 700.00 per day 7. Meals include one (1) lunch and one (1) merienda for the cost of Php 500.00 per day

Annex A: Financials 23

Section 2: Breakeven Scenario 24

Table 3 - 2. Year 1 Worst Case (25 HEIs)

SERVICE SYSTEMS BPO101 & 102 (10 BUSCOMM (6 CULTURE (6 THINKING (6 DAYS) DAYS) DAYS) DAYS) TOTAL Training Revenue 250,000.00 150,000.00 150,000.00 150,000.00 700,000.00

Trainer Cost: Trainer Professional Fee 50,000.00 30,000.00 30,000.00 30,000.00 140,000.00 Travel 10,000.00 10,000.00 10,000.00 10,000.00 40,000.00 Accommodation 15,000.00 9,000.00 9,000.00 9,000.00 42,000.00 Per Diem 7,000.00 4,200.00 4,200.00 4,200.00 19,600.00 Meals 5,000.00 3,000.00 3,000.00 3,000.00 14,000.00 Total Training Cost 87,000.00 56,200.00 56,200.00 56,200.00 255,600.00

Net Training Revenue 163,000.00 93,800.00 93,800.00 93,800.00 444,400.00

Table 3 - 3. Year 1 Base Case (62 HEIs)

CLASS OF 20 TEACHERS SERVICE SYSTEMS BPO101 & 102 (10 BUSCOMM (6 CULTURE (6 THINKING (6 DAYS) DAYS) DAYS) DAYS) SUB-TOTAL GRAND TOTAL Training Revenue 200,000.00 120,000.00 120,000.00 120,000.00 560,000.00 1,120,000.00

Trainer Cost: Trainer Professional Fee 50,000.00 30,000.00 30,000.00 30,000.00 140,000.00 280,000.00 Travel 10,000.00 10,000.00 10,000.00 10,000.00 40,000.00 80,000.00 Accommodation 15,000.00 9,000.00 9,000.00 9,000.00 42,000.00 84,000.00 Per Diem 7,000.00 4,200.00 4,200.00 4,200.00 19,600.00 39,200.00 Meals 5,000.00 3,000.00 3,000.00 3,000.00 14,000.00 28,000.00 Total Training Cost 87,000.00 56,200.00 56,200.00 56,200.00 255,600.00 511,200.00

Net Training Revenue 113,000.00 63,800.00 63,800.00 63,800.00 304,400.00 608,800.00

CLASS OF 22 TEACHERS SERVICE SYSTEMS BPO101 & 102 (10 BUSCOMM (6 CULTURE (6 THINKING (6 DAYS) DAYS) DAYS) DAYS) SUB-TOTAL Training Revenue 220,000.00 132,000.00 132,000.00 132,000.00 616,000.00

Net Training Revenue 133,000.00 75,800.00 75,800.00 75,800.00 360,400.00

Annex A: Financials 25

Section 2: Breakeven Scenario 26

Table 3 - 4. Year 1 Best Case (74 HEIs, 3 Classes)

CLASS OF 20 TEACHERS SERVICE SYSTEMS GRAND BPO101 & 102 (10 BUSCOMM (6 CULTURE (6 THINKING (6 TOTAL (3 DAYS) DAYS) DAYS) DAYS) SUB-TOTAL CLASSES) Training Revenue 200,000.00 120,000.00 120,000.00 120,000.00 560,000.00 1,680,000.00

Trainer Cost: Trainer Professional Fee 50,000.00 30,000.00 30,000.00 30,000.00 140,000.00 420,000.00 Travel 10,000.00 10,000.00 10,000.00 10,000.00 40,000.00 120,000.00 Accommodation 15,000.00 9,000.00 9,000.00 9,000.00 42,000.00 126,000.00 Per Diem 7,000.00 4,200.00 4,200.00 4,200.00 19,600.00 58,800.00 Meals 5,000.00 3,000.00 3,000.00 3,000.00 14,000.00 42,000.00 Total Training Cost 87,000.00 56,200.00 56,200.00 56,200.00 255,600.00 766,800.00

Net Training Revenue 113,000.00 63,800.00 63,800.00 63,800.00 304,400.00 913,200.00

CLASS OF 14 TEACHERS SERVICE SYSTEMS BPO101 & 102 (10 BUSCOMM (6 CULTURE (6 THINKING (6 DAYS) DAYS) DAYS) DAYS) SUB-TOTAL Training Revenue 140,000.00 84,000.00 84,000.00 84,000.00 392,000.00

Net Training Revenue 53,000.00 27,800.00 27,800.00 27,800.00 136,400.00

Table 3 - 5. Year 2 Worst Case (28 HEIs)

CLASS OF 15 TEACHERS SERVICE SYSTEMS BPO101 & 102 (10 BUSCOMM (6 CULTURE (6 THINKING (6 DAYS) DAYS) DAYS) DAYS) TOTAL Training Revenue 150,000.00 90,000.00 90,000.00 90,000.00 420,000.00

Net Training Revenue 63,000.00 33,800.00 33,800.00 33,800.00 164,400.00

CLASS 2 OF 13 TEACHERS SERVICE SYSTEMS BPO101 & 102 (10 BUSCOMM (6 CULTURE (6 THINKING (6 DAYS) DAYS) DAYS) DAYS) TOTAL Training Revenue 130,000.00 78,000.00 78,000.00 78,000.00 364,000.00

Net Training Revenue 43,000.00 21,800.00 21,800.00 21,800.00 108,400.00

Annex A: Financials 27

Section 2: Breakeven Scenario 28

Table 3 - 6. Year 2 Base Case (124 HEIs)

CLASS OF 18 TEACHERS SERVICE SYSTEMS GRAND BPO101 & 102 (10 BUSCOMM (6 CULTURE (6 THINKING (6 TOTAL (6 DAYS) DAYS) DAYS) DAYS) SUB-TOTAL CLASSES) Training Revenue 180,000.00 108,000.00 108,000.00 108,000.00 504,000.00 3,024,000.00

Trainer Cost: Trainer Professional Fee 50,000.00 30,000.00 30,000.00 30,000.00 140,000.00 840,000.00 Travel 10,000.00 10,000.00 10,000.00 10,000.00 40,000.00 240,000.00 Accommodation 15,000.00 9,000.00 9,000.00 9,000.00 42,000.00 252,000.00 Per Diem 7,000.00 4,200.00 4,200.00 4,200.00 19,600.00 117,600.00 Meals 5,000.00 3,000.00 3,000.00 3,000.00 14,000.00 84,000.00 Total Training Cost 87,000.00 56,200.00 56,200.00 56,200.00 255,600.00 1,533,600.00

Net Training Revenue 93,000.00 51,800.00 51,800.00 51,800.00 248,400.00 1,490,400.00

CLASS OF 16 TEACHERS SERVICE SYSTEMS BPO101 & 102 (10 BUSCOMM (6 CULTURE (6 THINKING (6 DAYS) DAYS) DAYS) DAYS) SUB-TOTAL Training Revenue 160,000.00 96,000.00 96,000.00 96,000.00 448,000.00

Net Training Revenue 73,000.00 39,800.00 39,800.00 39,800.00 192,400.00

Annex A: Financials 29

Section 2: Breakeven Scenario 30

Table 3 - 7. Year 2 Best Case (89 HEIs, 4 Classes)

CLASS OF 22 TEACHERS SERVICE SYSTEMS GRAND BPO101 & 102 (10 BUSCOMM (6 CULTURE (6 THINKING (6 TOTAL (3 DAYS) DAYS) DAYS) DAYS) SUB-TOTAL CLASSES) Training Revenue 220,000.00 132,000.00 132,000.00 132,000.00 616,000.00 1,848,000.00

Net Training Revenue 133,000.00 75,800.00 75,800.00 75,800.00 360,400.00 1,081,200.00

CLASS OF 23 TEACHERS SERVICE SYSTEMS BPO101 & 102 (10 BUSCOMM (6 CULTURE (6 THINKING (6 DAYS) DAYS) DAYS) DAYS) SUB-TOTAL Training Revenue 230,000.00 138,000.00 138,000.00 138,000.00 644,000.00

Net Training Revenue 143,000.00 81,800.00 81,800.00 81,800.00 388,400.00

Table 3 - 8. Year 3 Worst Case (31 HEIs)

CLASS OF 15 TEACHERS SERVICE SYSTEMS BPO101 & 102 (10 BUSCOMM (6 CULTURE (6 THINKING (6 DAYS) DAYS) DAYS) DAYS) TOTAL Training Revenue 150,000.00 90,000.00 90,000.00 90,000.00 420,000.00

Net Training Revenue 63,000.00 33,800.00 33,800.00 33,800.00 164,400.00

CLASS OF 16 TEACHERS SERVICE SYSTEMS BPO101 & 102 (10 BUSCOMM (6 CULTURE (6 THINKING (6 DAYS) DAYS) DAYS) DAYS) TOTAL Training Revenue 160,000.00 96,000.00 96,000.00 96,000.00 448,000.00

Net Training Revenue 73,000.00 39,800.00 39,800.00 39,800.00 192,400.00

Annex A: Financials 31

Section 2: Breakeven Scenario 32

Table 3 - 9. Year 3 Base Case (248 HEIs)

CLASS OF 18 TEACHERS SERVICE SYSTEMS GRAND BPO101 & 102 (10 BUSCOMM (6 CULTURE (6 THINKING (6 TOTAL (2 DAYS) DAYS) DAYS) DAYS) SUB-TOTAL CLASSES) Training Revenue 180,000.00 108,000.00 108,000.00 108,000.00 504,000.00 9,072,000.00

Trainer Cost: Trainer Professional Fee 50,000.00 30,000.00 30,000.00 30,000.00 140,000.00 2,520,000.00 Travel 10,000.00 10,000.00 10,000.00 10,000.00 40,000.00 720,000.00 Accommodation 15,000.00 9,000.00 9,000.00 9,000.00 42,000.00 756,000.00 Per Diem 7,000.00 4,200.00 4,200.00 4,200.00 19,600.00 352,800.00 Meals 5,000.00 3,000.00 3,000.00 3,000.00 14,000.00 252,000.00 Total Training Cost 87,000.00 56,200.00 56,200.00 56,200.00 255,600.00 4,600,800.00

Net Training Revenue 93,000.00 51,800.00 51,800.00 51,800.00 248,400.00 4,471,200.00

CLASS OF 14 TEACHERS SERVICE SYSTEMS BPO101 & 102 (10 BUSCOMM (6 CULTURE (6 THINKING (6 DAYS) DAYS) DAYS) DAYS) SUB-TOTAL Training Revenue 140,000.00 84,000.00 84,000.00 84,000.00 392,000.00

Net Training Revenue 53,000.00 27,800.00 27,800.00 27,800.00 136,400.00

Annex A: Financials 33

Section 2: Breakeven Scenario 34

Table 3 - 10. Year 3 Best Case (107 HEIs, 5 Classes)

CLASS OF 21 TEACHERS SERVICE SYSTEMS GRAND BPO101 & 102 (10 BUSCOMM (6 CULTURE (6 THINKING (6 TOTAL (4 DAYS) DAYS) DAYS) DAYS) SUB-TOTAL CLASSES) Training Revenue 210,000.00 126,000.00 126,000.00 126,000.00 588,000.00 2,352,000.00

Trainer Cost: Trainer Professional Fee 50,000.00 30,000.00 30,000.00 30,000.00 140,000.00 560,000.00 Travel 10,000.00 10,000.00 10,000.00 10,000.00 40,000.00 160,000.00 Accommodation 15,000.00 9,000.00 9,000.00 9,000.00 42,000.00 168,000.00 Per Diem 7,000.00 4,200.00 4,200.00 4,200.00 19,600.00 78,400.00 Meals 5,000.00 3,000.00 3,000.00 3,000.00 14,000.00 56,000.00 Total Training Cost 87,000.00 56,200.00 56,200.00 56,200.00 255,600.00 1,022,400.00

Net Training Revenue 123,000.00 69,800.00 69,800.00 69,800.00 332,400.00 1,329,600.00

CLASS OF 23 TEACHERS SERVICE SYSTEMS BPO101 & 102 (10 BUSCOMM (6 CULTURE (6 THINKING (6 DAYS) DAYS) DAYS) DAYS) SUB-TOTAL Training Revenue 230,000.00 138,000.00 138,000.00 138,000.00 644,000.00

Net Training Revenue 143,000.00 81,800.00 81,800.00 81,800.00 388,400.00

Detailed Job Descriptions 35

ANNEX B: Detailed Job Descriptions

36 Annex B

Year 1 Organization Structure

Detailed Job Descriptions 37

Chief Executive Officer for the Knowledge Hub

JOB DESCRIPTION

1.0 Overall Responsibilities:

The chief executive officer (CEO) ranks as the highest senior executive in charge of overseeing the entire operation of the Knowledge Hub (KH). The primary responsibility of the CEO is to direct the organization, including guiding senior level KH officials towards the achievement of its vision and mission and working towards both internal and external objectives to sustaining the organization’s growth.

As the primary person responsible for the success of the KH business, the CEO assures the organization’s relevance to the IT-BPM and Education sectors, the accomplishment of its mission and vision and the accountability to a diverse set of stakeholders that includes students, IT-BPM employees, alumni of the SMP Program and other IT-BPM courses, government senior education policy makers and managers, IT-BPM firms, IT-BPM industry associations, civil society groups, local government and the general public.

Specifically, the CEO plans and directs all aspects of an organization's operations, policies, objectives, and initiatives, oversees the organization's membership, scholarship and other programs, projects, curriculum development initiatives, marketing, finance and accounting, HR and general administration functions. In addition, this individual is also responsible for strategically managing the KH internal and external clients.

2.0 Scope of Work

The tasks to be carried out are detailed below:

Task 1 Strategy and Planning  Determines the KH values, mission, vision, and short- and long-term goals.  Monitor and evaluate the KH relevancy to the IT-BPM and Education sectors, including its, effectiveness, and the results of its operations.  Keep the Board of Directors and IBPAP senior managers and stakeholders fully informed on the condition of KH and on all the important factors influencing or affecting its operations.  Identifies problems and opportunities and addresses them; brings those which are appropriate to the Board and, facilitates discussion and deliberation.  Informs the Board about trends, issues, problems and activities in order to facilitate policy- making. Recommends policy positions.

Task 2 Management and Administration

 Provides general oversight of all KH activities, manages the day-to-day operations, and assures a smoothly functioning, efficient organization.  Assures program quality and organizational stability through development and implementation of standards and controls, systems and procedures, and regular evaluation.  Assures a work environment that recruits, retains and supports quality staff and volunteers. Assures process for selecting, development, motivating, and evaluating staff.  Recommends staffing and financing to the Board. In accordance with Board approval, recruits personnel, negotiates professional contracts, and sees that appropriate salary structures are developed and maintained.  Specifies accountabilities for management and evaluates performance regularly.

38 Annex B

Task 3 Governance  Helps the Board articulate the KH’s own role and accountabilities and helps evaluate performance regularly.  Works with the Board to enable the Board and all senior managers to fulfill their governance functions  Focuses the KH attention on long-range strategic issues.  Manages the KH’s due diligence process to assure timely attention to core issues.

Task 4 Legal Compliance  Assures the filing of all legal and regulatory documents and monitors compliance with relevant rules, laws and regulations.

Task 5 Financing  Promotes programs and services that are produced in a cost-effective manner, employing economy while maintaining an acceptable level of quality.  Oversees the fiscal activities of the organization including budgeting, reporting and audit.  Works with Board to ensure financing to support short- and long-term goals.  Assures an effective fund development program by serving as the chief development officer or hiring and supervising an individual responsible for this activity.  Participates actively in identifying, cultivating and soliciting multilateral/ bilateral donor prospects.  Assures the development and operation of management systems and reports for quality decision-making.

Task 6 Stake Holder Management  Facilitates the integration of the KH into the IT-BPM and Education sectors by using effective marketing and communications activities.  Acts as an advocate, within the public and private sectors, for issues relevant to the KH, its services and constituencies.  Listens to clients, suppliers, donors and the government at large in order to improve services and generate stakeholder involvement.  Serves as chief spokesperson for the KH, assuring proper representation of the KH in different fora and events.  Initiates, develops, and maintains cooperative relationships with all its organizational constituencies.  Works with a diverse set of stakeholders including legislators, regulatory agencies, suppliers and representatives of the not for- profit sector to promote or advocate on strengthening talent development regulatory policies that support a healthy IT-BPM business environment

Task 7 Risk Management  Define organizational-wide risk management objectives and ensure the implementation of risk management strategies and initiatives within the different areas of operations

Task 8 Accountability  IBPAP and KH senior management, KH clients’ senior management, senior managers of government regulatory agencies and policy making bodies, multilateral and bilateral agencies, IT-BPM senior officials, Industry association heads IT-BPM company representatives, school administrators, deans, faculty, student organizations, HR directors etc.

Detailed Job Descriptions 39

3.0 Skills Requirement/ Educational Requirements

Formal Education & Certification.  University degree in the field of business administration, finance, management, Information technology or related field  Master’s degree in Business Administration or any related field  A minimum of 5 years in a senior executive management position and 5 years in direct applicable work experience

Knowledge & Experience  10-15 years’ experience in managerial/operation positions.  Experience working with the government.  Excellent knowledge of business theory, business processes, management, budgeting, and business office operations.  Good understanding of MIS systems design and functions  Proven experience in operations planning, organization, and development.  Superior understanding of project management principles.  Excellent understanding of the organization’s goals and objectives.  Superior ability to analyze and solve business problems.  In-depth knowledge of applicable government education laws and regulation, not-for-profit rules and regulations and multilateral and bilateral procedures and processes.  Excellent understanding of human resource management principles, practices, and procedures.  Proven leadership ability.  Ability to set and manage priorities judiciously.

Personal Attributes  Demonstrated competencies in four broad categories: commitment to results, business savvy, leading change and motivating  Brilliant strategist  Systems thinker with a strong customer/service orientation.  Goal driven and able to translate broad goals into achievable steps  Excellent negotiating and leadership skills.  Possesses the ability to Identify relevant information and helps transform this information into individual and organizational knowledge and learning.  Possesses experience in integrating and coordinating diverse areas of management.  Is action oriented and innovative.  Takes advantage of opportunities, is a self-starter and a team player  Consistently displays integrity, models behavior, develops people, and builds teams.  Deals effectively with demanding/challenging situations and designs and implements interventions to address these.  Effectively manages continuity, change and transition

40 Annex B

Operations Manager

JOB DESCRIPTION

1.0 Overall Responsibilities

The Operations Manager will be responsible for data entry, accounts payable, payroll, grant report entry, managing the organizations HR, helping and creating organizational and program budgets in collaboration with the ED and Program Direct, and other misc. tasks. Reporting to the ED and serving as a member of the Management Team along with the ED, Program Director and Development Director, this position's primary responsibility is ensuring organizational effectiveness by providing leadership for the organization's financial functions. Working with the management team, the position also contributes to the development and implementation of organizational strategies, policies and practices. This position will also interact with the Board of Directors.

2.0 Scope of Work

The tasks to be carried out are detailed below:

Task 1 Financial Management  Direct annual budgeting and planning process for the organization's annual budget with ED  Develop and manage annual budget  Oversee monthly and quarterly assessments and forecasts of organization's financial performance against budget, financial and operational goals. Oversee short and long-term financial and managerial reporting.  Managing day to day processing of accounts receivable and payable using QuickBooks, producing reports as requested.  Reconciling monthly activity, generating year-end reports, and fulfilling tax related requirements.  Assisting Executive Director and Board in creating annual organizational budget and monitoring cash flow.  Managing grantor contracts and reimbursement requests.  Maintaining Intersection's archival and administrative files.  Administering payroll and employee benefits and organizational insurance.  Ensure that Accounting Department requests are resolved and communicated in a timely manner to internal and external parties.  Develop long-range forecasts and maintain long-range financial plans.  Develop, maintain and monitor all fundraising and accounting systems and procedures capturing all pledges, billings and receipts and for the recording of all revenue transactions, recommend and implement improvements to systems.  Prepare annual audit and be a liaison with all outside vendor.

Task 2 Organizational Effectiveness  Manage functions.  Increase the effectiveness and efficiency of Support Services through improvements to each function (HR, IT, Finance) as well as coordination and communication between functions.  Drive initiatives in the management team and organizationally that contribute to long-term operational excellence.  Providing consulting services on matters related to fundraising, tax and insurance questions, and business structure and growth.

Detailed Job Descriptions 41

Task 3 Organizational Leadership  Contribute to short and long-term organizational planning and strategy as a member of the management team

Task 4 Risk Management  Serve as primary liaison to legal counsel in addressing legal issues e.g. copyright, antitrust, governing instruments, partnerships, licensing etc.  Oversee organizational insurance policies.

3.0 Skills Requirement/ Educational Requirements

 Commitment to social justice and the mission  At least 3 years’ experience in Financial Management  Strong background and work experience in Finance  Excellent computer skills and proficient in excel, word, outlook, and access  Excellent communication skills both verbal and written  3 plus years’ experience in bookkeeping  Knowledge of government contract management and +Knowledge and experience in organizational effectiveness and operations management implementing best practices.  Demonstrated leadership and vision in managing staff groups and major projects or initiatives.  Excellent interpersonal skills and a collaborative management style.  Budget development and oversight experience  A demonstrated commitment to high professional ethical standards and a diverse workplace  Knowledge of tax and other compliance implications of non-profit status  Excels at operating in an fast pace, community environment  Excellent people manager, open to direction and +Collaborative work style and commitment to get the job done  Ability to challenge and debate issues of importance to the organization.  Ability to look at situations from several points of view  Persuasive with details and facts  Delegate responsibilities effectively  High comfort level working in a diverse environment

42 Annex B

Administrative and Finance Manager

JOB DESCRIPTION

1.0 Overall Responsibilities:

The Finance and Administration Manager is expected to drive best practices in financial management, human resources management and administrative management within the organization to maximize efficiency and growth. She/he will manage a team of 3 people and oversee financial management, investors’ relations, administration, human resources and compliance activities.

2.0 Scope of Work

The tasks to be carried out are detailed below:

Task 1 Manage financial planning and investors relations  Prepare and maintain financial forecasts in consultation with the Executive Director and team leaders (including the annual budget and the medium term business plan)  Manage relationships with investors and support the Executive Director in designing and implementing appropriate financing tools for KH and its members  With support from a financial analyst, design appropriate financial due diligence procedures for members’ projects and perform financial assessment of these projects

Task 2 Manage financial monitoring and reporting  With support from the Finance and Administration Officer, ensure efficient financial monitoring and reporting (including monitoring expenses and revenues, reviewing and upgrading existing procedures, ensuring production of appropriate financial reports for internal and external clients)  With support from the Finance and Administration Officer, ensure high quality accounting (including overseeing day to day accounting, managing the year-end audit process)  Organize and prepare audit and finance committees meetings

Task 3 Oversee general administration  With support from the Finance and Administration Officer and from the Compliance and Administration Officer, oversee office management duties  With support from the Finance and Administration Officer, manage the relationship with the information technology contractor  With support from the Compliance and Administration Officer, oversee travel arrangements and monitor travel expenditures

Task 4 Ensure compliance  With support from the Compliance and Administration Officer, ensure compliance with relevant local regulations  With support from the Compliance and Administration Officer, ensure compliance with internal policies, donors and investors’ requirements

Task 5 Manage Human Resources  Manage payroll related activities (including advising team leaders on appropriate salary levels, reviewing KH salary grid, overseeing pay outs to employees)  Develop and manage human resources procedures  Support team leaders in relation to recruitment processes and human resources matters

Detailed Job Descriptions 43

3.0 Skills Requirement/ Educational Requirements

 Minimum 5 years in financial and administration management  Previous experience in managing relations with investors  Master’s degree in Finance or recognized professional certification (such as CPA,ACCA,CMA, CFA)  Knowledge of local accounting practices and relevant laws a plus  Strong financial management skills  Fluent English with excellent writing and verbal communication skills  Excellent Excel skills  Strong organizational and leadership skills  At ease in working in a small structure, start-up-type, where tasks and responsibilities are in constant move  Able to operate in a multicultural environment  High level of autonomy at work, yet with profound team-spirit  Adaptive, Patient, resilient and flexible  Pro-active and solutions oriented  Fast learning and high reactivity  Ability to work under time pressure

44 Annex B

IT Officer

JOB DESCRIPTION

1.0 Overall Responsibilities:

Assist technology users in identifying and implementing systems improvements. Administer database platforms and associated systems efficiently and effectively to ensure that The KH is able to meet its business requirements and goals. Provide technical support and advice to other Information Systems Team members and other Technology users.

2.0 Scope of Work

The tasks to be carried out are detailed below:

Task 1 Business Analysis  To analyze business processes to ascertain their efficiency and effectiveness in delivering high-quality, value for money customer services  Gather data related to particular business issues and processes  Analyze issues and processes  Identify, develop and implement options that may resolve or improve the issue  Provide a project co-ordination role in liaising with vendors' and staff in the areas of development, acceptance and implementation of systems  Prepare and maintain relevant systems documentation including the creation of Policies and Procedures  Promote the productive use of Information Management Systems throughout KH

Task 2 Database Administration  Provide database administration and support for the corporate systems running on SQL and Universe platforms  Ensure that day-to-day administrative activities are undertaken to maintain databases  in a fully operational and stable state  Undertake system monitoring and tuning to ensure optimum performance.  Apply software upgrades and patches to the corporate systems and to server operating systems and databases  Review and maintain efficient and effective database backup procedures to enable the provision of successful and accurate backups so that any data can be restored quickly and efficiently.  Maintain adequate security of data by implementing, monitoring and auditing appropriate security policies  Undertake upgrade and conversion projects as required  Manage problems escalated to third-party suppliers/providers  Actively contribute and participate in all disaster recovery processes  Produce reports in line with performance indicators  Prepare and maintain relevant systems documentation including the 'creation of policies and procedures

Task 3 Helpdesk Operations  As part of a team, provide a high level of user support through the provision of incident and problem management so that staff can make effective use of systems and equipment  Provide a professional, friendly and customer oriented approach at all times

Detailed Job Descriptions 45

Task 4 Corporate Responsibilities  Develop and implement effective policies and procedures relating to new and existing information systems  Promote excellence in customer service and in conjunction with the Unit Manager, identify, review and implement strategies to improve service quality and efficiency  Maintain strong team relationships among colleagues and community groups, on a formal and informal basis, across all KH functions  Ensure the security of KH’s property and assets and maintain a commitment to the care of all KH’s property and assets  Participate as directed in training and education to maintain an up to date knowledge of emergency management responses  Provide administration, logistics and specialist support and advice during CEO identified emergency events  Comply with KH policies and procedures

Task 5 General Responsibilities  Maintain relevant and up to date knowledge of business and information technology  Provide input into, and assist with the implementation of, KH’s IT Strategy  Attend relevant training programs approved by the Unit Manager

3.0 Skills Requirement/ Educational Requirements  The position requires skills and knowledge acquired through relevant work experience or the completion of a more formal qualification such as an Information Technology degree or diploma course  Knowledge of the administration MS SQL Server 2008  Experience in the use of PCs, operating systems, applications, network and communication technologies  Experience using SQL language  Experience writing SQL reports  Experience using process mapping software such as MS Visio  Excellent interpersonal and communication skills, in order to establish rapport with internal customers and to liaise with counterparts within the industry and at all levels within the KH  Ability to show understanding and patience in communicating with technology users  Ability to encourage staff to exchange views and resolve problems  Well-developed investigative, analytical and problem solving skills

46 Annex B

Membership Officer

JOB DESCRIPTION

1.0 Overall Responsibilities

This role will be responsible for recruiting and retaining new and existing members through the delivery of excellent customer service, supporting potential members through the application process and advising existing members with all aspects of their membership.

2.0 Scope of Work

The tasks to be carried out are detailed below:

Task 1 Stake Holder Management

 Responding to all membership enquiries via email, telephone and letter.  Replying to potential member enquiries in a pro-active, helpful, timely, professional and polite manner, to achieve a successful outcome through converting them to membership.  recognizing opportunities for organizational growth, taking ownership or escalating these where appropriate.  Actively encouraging members to upgrade where appropriate. Processing regrades, applying the defined criteria and making grade recommendations.  Supporting recruitment and retention campaigns, taking direction from the Membership Manager, passing feedback to relevant colleagues as required.  Supporting and advising existing members on all aspects of membership, including but not limited to regrading, benefits, events and resources.  Carrying out all activities required to support annual renewals as needed, including but not limited to preparing datasets, processing payments and making proactive out-bound calls to late payers to meet retention targets.

Task 2 System and Process Improvement  Following agreed processes and procedures; suggesting changes to support continuous improvement. Maintaining accurate and up to date records at all times on the CRM.  Undertaking testing of the system and/or process developments where required.

Task 3 Support to the Membership Team  Working collaboratively with colleagues across the organization on cross-team projects.  Achieving and exceeding objectives and targets as agreed with the Membership Manager.  Supporting colleagues within the Membership Team as required.  Any other activities as directed by the Membership Manager, within reason.

3.0 Skills Requirement/ Educational Requirements  Strong professional pride, committed to helping members and delivering an excellent service.  Excellent communication skills, with the ability to speak clearly, professionally and engagingly on the telephone, and to write grammatically correct, simple, clear and professional emails in accordance with agreed style guides.  Proactive and able to work on own initiative, as well as part of a team. Demonstrating a positive attitude and the ability to influence colleagues and members.  Problem solving and open to change. Able to think outside the box and seek solutions using the resources available.  Strong attention to detail, able to work accurately and effectively. Able to take personal responsibility for managing own workload, multi-tasking where required.

Detailed Job Descriptions 47

 Sees the bigger picture and able to apply it to decision making.  Actively demonstrates all aspects of the Behaviors for Success.  Able to understand and apply complex business knowledge in an easy to understand manner.  Empathy with the charitable objectives of the organization  5 GCSEs including English and Math’s (or equivalent)  Experience using a CRM/EMS database and other common IT systems e.g. Microsoft Word, Outlook.  Customer services experience in a business context (ideally in a membership/sales environment).  Exposure to/involvement in change  Exposure to the quality profession/ISO standards  Educated to A level (or equivalent)

48 Annex B

Management Information Officer

JOB DESCRIPTION

1.0 Overall Responsibilities:

The management information systems officer works closely with Information systems Consultant. Together, they review the needs of the IBPAP employees and stakeholders related to information management, data processing and distributed processing for end-users. The management information systems officer establishes budgets for hardware and software. S/he will directly report to the Director for Shared Services.

2.0 Scope of Work

The tasks to be carried out are detailed below:

Task 1 Plan for, develop and implement an MIS System  His/ her primary responsibility is for the planning, development and implementation of hardware, software applications, programming and systems network and integration of a management information system or enterprise network.  The MIS also has personnel, branch and supervisory responsibilities as well as creating plans for the use of telecommunications integration with existing information.

Task 2 Data Standards & Administration of report forms  Carry-out consultation activities with top level IBPAP management, who are the primary user of the system, in building the MIS  Work with the M&E to standardize data collection and administration of report forms.

Task 3 Database Management and Maintenance  Handle internal IBPAP data pertinent to external clients  Serve as IBPAP’s data security officer  Act as the keeper of the Document Management System (DMS)

Task 4 Data Extraction (Periodic & AdHoc) and initial analysis  Work with the M&E in generating interim reports  Conduct initial data analysis

3.0 Skills Requirement/ Educational Requirements

The MIS officer must have excellent supervisory skills and must be able to communicate with management and users topics relating to the operation of an MIS system. The individual must also have excellent knowledge of enterprise networks and systems, consisting of mainframe and midrange computers, IT hardware and infrastructure support, microcomputer management, data management and security. Strong problem-solving and analytical skills are needed in this occupation. The MIS officer must be a highly knowledgeable in information systems theory and configuration. Most MIS officer candidates have a master’s degree or doctorate in information systems management, computer science or information technology. They also have industry certifications in areas of network administration, information systems audit or systems development.

Detailed Job Descriptions 49

KH Support Staff (4)

JOB DESCRIPTION

1.0 Overall Responsibilities:

The Project Assistant shall be tasked to provide finance, technical and administrative support to KH Lead, Managers and Consultants. S/he will be reporting directly to the Administrative and Finance Officer.

2.0 Scope of Work

The tasks to be carried out are detailed below:

Task 1 Finance and Contracts  Assist in the setting-up of the BPAP Finance System.  Prepare on a regular basis, disbursement documents such as debit, cash voucher’s and petty cash vouchers and certify the validity and correctness of the financial accounting entries in the database and ensure the completeness of its supporting documents prior to the review of the Finance and Admin Officer.  Process payment of fees to Project Staff and contracted project experts;  Prepare the Monthly Bank Reconciliation;  Prepare Local Field Expense and Activity Expense Summary  Make certain that all the transactions for the month are recorded accurately in the database prior to the review of the ED  Monitor and up-date cash per books  Audit Travel Claims documentations and prepare necessary payment for the request.  Assist in the preparation of the legal documents for the FPMO including MoAs/ MoUs, contracts and amendments;  Maintain accurate, accessible and up-to-date contracts/amendments record-keeping systems for the project;

Task 2 Technical  Conduct Project-related researches pertinent to institutional, financial, economic analyses;  Assist in the preparation of presentations and technical handouts pertinent to various trainings and conferences;  Assist in the preparation of regular technical reports such as Project Progress and Financial Reports;  Assist in the establishment and maintenance of Project databases.

Task 3 Administrative  Manage the over-all logistical aspect of the FPMO.  Coordinates with the BPAP Admin the logistical requirements of the ED, PCs and PMs during meetings, travel and hotel arrangements and vehicle requests.  Set-up and maintain the filing system of the FPMO.  Other tasks that may be assigned from time to time

50 Annex B

Year 2 &3 Organization Structure

Detailed Job Descriptions 51

Chief Executive Officer for the Knowledge Hub

JOB DESCRIPTION

1.0 Overall Responsibilities:

2.0 Scope of Work

The tasks to be carried out are detailed below:

Task 2 Management and Administration  Provides general oversight of all KH activities, manages the day-to-day operations, and assures a smoothly functioning, efficient organization.  Assures program quality and organizational stability through development and implementation of standards and controls, systems and procedures, and regular evaluation.  Assures a work environment that recruits, retains and supports quality staff and volunteers. Assures process for selecting, development, motivating, and evaluating staff.  Recommends staffing and financing to the Board. In accordance with Board approval, recruits personnel, negotiates professional contracts, and sees that appropriate salary structures are developed and maintained.  Specifies accountabilities for management and evaluates performance regularly.

Task 3 Governance

52 Annex B

 Helps the Board articulate the KH’s own role and accountabilities and helps evaluate performance regularly.  Works with the Board to enable the Board and all senior managers to fulfill their governance functions  Focuses the KH attention on long-range strategic issues.  Manages the KH’s due diligence process to assure timely attention to core issues.

Task 4 Legal Compliance  Assures the filing of all legal and regulatory documents and monitors compliance with relevant rules, laws and regulations.

Task 7 Risk Management  Define organizational-wide risk management objectives and ensure the implementation of risk management strategies and initiatives within the different areas of operations

Detailed Job Descriptions 53

3.0 Skills Requirement/ Educational Requirements

54 Annex B

IT Manager

JOB DESCRIPTION

1.0 Overall Responsibilities

Reporting directly to the Director of Operations the IT Manager will be primarily responsible for the Association’s current IT and communications network and systems, manage a team of four staff, project manage the integration and implementation of the new CRM and website and provide a strategic overview to meet future business and system requirements.

2.0 Scope of Work

 Manage the deployment, monitoring, maintenance, development, upgrade, and support of all current IT systems, including ETarget and Exchequer, Websites, PCs, operating systems, databases telephones, software applications, and peripherals.  Project manage the implementation and integration of the planned new CRM and website  Communicate regularly with executive management and all users of information services and systems.  Manage and develop IT staff, including, training, evaluation, guidance, discipline.  Develop standard operating procedures and best practices, including providing written protocols and guidance to IT staff and to end-users.  Ensure the creation and maintenance of all written documentation, including system and user manuals, license agreements, and documentation of modifications and upgrades.  Oversee provision of IT Support for 100 staff in 5 offices.  Keep current with the latest technologies and determine what new technology solutions and implementations will meet business and system requirements.  Manage financial aspects of the IT Department, including purchasing, budgeting, and budget review.  Develop and implement all IT policies and procedures, including those for architecture, security, disaster recovery, standards, purchasing, and service provision.  Negotiate and administer supplier contracts and service agreements.

3.0 Skills Requirement/ Educational Requirements  A Bachelor’s degree in computer science or equivalent education and experience  Knowledge of SQL and website technologies  Progressive IT experience, including experience in a multi-office environment. Experience in working with non-profits and/or membership organization’s preferred  Demonstrated ability to lead a team of technical staff, to work with the Executive Management of an organization, and to manage multiple concurrent projects  Excellent verbal and written communication skills  Strong project management, organizational and time management skills  Strong people management skills  Excellent problem-solving, analytical and evaluative skills

Detailed Job Descriptions 55

Marketing and Research Manager

JOB DESCRIPTION

1.0 Overall Responsibilities:

The Market Strategy and Insights team is responsible for providing fact/research based insights to help Anthem leaders improve business performance. This position requires the ability to build and maintain productive relationships with other departments, market research experience/skills across a range of methodologies, solid project management and ability to effectively translate research into insights.

2.0 Scope of Work

The tasks to be carried out are detailed below:

 Being the key marketing research point of contact within the KH  Strong consulting skills with the ability to help internal business partners articulate business problems/research needs  Managing a range of projects (competitive intelligence, market research using both primary and secondary research) to inform business decisions  Excellent communication skills-ability to present complex information concisely  Strong project and time management skills and an ability to own, manage and/or collaborate on multiple projects simultaneously  Travel up to 20% of the time

3.0 Skills Requirement/ Educational Requirements

 Requires BA/BS or any combination of education and experience, which would provide an equivalent background. .Advanced degree preferred. In a related field a plus  3 - 10 years' relevant years' relevant experience in a market research working on service related or business comparable to health insurance are strong pluses  Excellent communication and interpersonal skills  Experience managing market research projects  Solid analytical skills  Ability to uncover and translate consumer insights into ideas/product concepts  Experience and skill in presenting ideas, strategy and plans  Competitive analysis/trends analysis experience required  General computer skills, must have solid working knowledge of Microsoft Office, and working knowledge of SPSS  Specific experience with business to business customers and translating market research to impactful insights to grow sales or aid retention of customers (experience with tracking and integrating across studies as well

56 Annex B

Membership Manager

JOB DESCRIPTION

1.0 Overall Responsibilities

Leading and managing the KH membership team, the Membership Manager is responsible for ensuring that a consistently high level of service is provided to our members, customers and other stakeholders, and that the objectives for the team are met/exceeded, in particular regarding retention and member satisfaction. The Membership Manager will need to ensure all new applications, renewals and re-grades are handled efficiently and effectively, and that the processes to enable this are in place and continually improved.

To do the role effectively, the post holder will know our members, what they want, what they don’t want, and ensure all we do is always considered from a customer perspective.

2.0 Scope of Work

The tasks to be carried out are detailed below:

Task 1 Leadership and direction to the membership team of the Knowledge Hub  Provide leadership and direction to the membership team (KH).  Be accessible and available to support team members with general enquiries. Handle escalated calls and complaints using judgment and discretion as required, promoting a constructive customer relationship whilst adhering to agreed policies and procedures.  Lead by example, demonstrating excellent enquiry-handling and team-working through taking an active part in team activities. Be a visible and motivating presence for the team and Customer Services as a whole.  Manage the performance of the team members (directly and via the Senior Membership Officers) through structured management and development activities, including regular one- to-one meetings, coaching, performance and development reviews. Ensure all team members have clear objectives and performance indicators, and monitor these to ensure they are achieved. If there are any variances, act on these appropriately with support from HR.  Manage the budget for the team, complying with budget setting and the reforecast timetable as required by the Finance Team.  Liaise with the other managers within the department to maximize customer service levels across teams through a flexible approach to resourcing work. In particular, work closely with the Membership Manager (CQI) to ensure consistency and good communication between teams.

Task 2 Service Delivery Strategy  Devise and implement a strategy for the effective provision of support and services to our KH members throughout the certification process.  Anticipate problems, find solutions and adjust allocations of resources appropriately.  Ensure team members acquire best practice in customer service skills, IT skills and a thorough  Appreciation of the CQI, KH and industry knowledge.  Identify and flag opportunities to make changes that will improve customer service and lead to improved efficiency in the team, the department and the organization generally, promote a problem solving and positive team- and customer-focused culture within the team.  Be a proactive member of the Customer Services management team, identify synergies and opportunities for sharing knowledge and best practice, contributing to operational planning, and managing financial processes to required deadlines.

Detailed Job Descriptions 57

Task 3 Develop the Products and Services  Enable growth of KH membership through developing, optimizing and smooth running of membership services.  Continuously build, develop, share and maintain in-depth product knowledge of the KH products and services in order to provide a knowledgeable response to the team and customers, and thereby providing an added value service.  Working with the Marketing & Business Development Manager (KH), develop and manage KH retention campaigns.

Task 4 Communicate with Internal and External Stakeholders  Ensure effective communications and excellent levels of customer care, especially those focused towards members, are maintained across KH.  Play a key role in working effectively with KH colleagues in other teams and departments to ensure communications are improved, internally and with our members, and take forward ideas for improvement into business as usual.  Manage the use of external contractors to ensure timely and cost-effective reviews of applications, regrades and renewals.

Task 5 Departmental Output Report and Analysis  Produce regular reports including KPIs, analyzing enquiry trends, customer feedback and the impact of marketing initiatives. Pro-actively make suggestions for potential new KH product developments and customer service improvements.  Interpret membership recruitment and retention statistics, review membership research and make recommendations to improve our KH membership services.

3.0 Skills Requirement/ Educational Requirements

 Demonstrated ability to plan and implement successfully at team level, with direction provided by the Executive Director.  Excellent customer service and member relationship skills.  Commercial awareness and the drive to meet challenging targets; actively seeking continuous  Improvement and the highest standard of work across a team.  Proven ability and confidence to establish and maintain effective working relationships with other departments, current and prospective members, and other key stakeholders.  Confidence, communication skills and presentation skills required to represent the department internally and organization externally.  Experience of developing processes to meet business needs – from analysis of need and development, through to implementation and making changes if needed.  Strong written and spoken English, including good report writing skills, and the ability to communicate professionally, diplomatically and constructively in difficult situations. Able to demonstrate the use of plain English in customer communications and the ability to advise and respond effectively to customers for who English is not their first language.  Excellent complaints management and resolution skills, resulting in positive experience and outcomes for customers.  Ability to inspire others by engaging them in the organization’s vision.  Ability to quickly build an in-depth knowledge of the KH products.  Initiative and analytical ability to identify and correct organizational failures.  Strong conceptual and analytical ability; able to take a broad, long term view and focus into the detail when required to solve problems.  Drive and desire to continually seek improvement and results.  Track record of successfully improving customer or member retention.

58 Annex B

 Track record of successfully managing, training, motivating and coaching teams and individuals, ideally in a customer services context.  Commercially astute with experience of writing and presenting business cases; experience of managing budgets.  Experience of using and contributing to the continuous improvement of a CRM or membership database; strong IT skills including experience of using spread sheets.  Educated to degree-level or equivalent.

Detailed Job Descriptions 59

Business Development Officer

JOB DESCRIPTION

1.0 Overall Responsibilities:

The business development officer creates and builds client relationships while sponsoring interaction to obtain projects. This role assists in developing and facilitating the proposal process for specific clients/sponsors including budget and pricing development, proposal writing, contract negotiations and client presentations.

2.0 Scope of Work

The tasks to be carried out are detailed below:

Task 1 Manage Project Portfolio  Set-up and maintains the company Profile in various funding agency portals/ sites (i.e. ADB CMS)  Collects all company project-related documents and integrate this to the company Profile

Task 2 Generate Business Proposal and Business Plan  Drafts expressions of interest for Projects that the company would be interested to engage in  Formulates the standard/routine proposals;  Develops budget and price estimate using standard models  Develops new project plans, defining roles and responsibilities and the scope of work for each project

Task 3 Coordinate, Track and Report  Communicates the outcome of the negotiations/proposals focusing on conveying the expectations set forth i.e. clear details, critical timeframes and expectations  Collaborates with the operation/finance group to evaluate project performance and to recommend refinements and improvements of all components of proposals  Tracks and reports on the status of all proposal components

60 Annex B

IT Officer

JOB DESCRIPTION

1.0 Overall Responsibilities:

2.0 Scope of Work

The tasks to be carried out are detailed below:

Detailed Job Descriptions 61

62 Annex B

Membership Officer

JOB DESCRIPTION

1.0 Overall Responsibilities

2.0 Scope of Work

The tasks to be carried out are detailed below:

Task 1 Stake Holder Management

 Responding to all membership enquiries via email, telephone and letter.  Replying to potential member enquiries in a pro-active, helpful, timely, professional and polite manner, to achieve a successful outcome through converting them to membership.  Recognizing opportunities for organizational growth, taking ownership or escalating these where appropriate.  Actively encouraging members to upgrade where appropriate. Processing regrades, applying the defined criteria and making grade recommendations.  Supporting recruitment and retention campaigns, taking direction from the Membership Manager, passing feedback to relevant colleagues as required.  Supporting and advising existing members on all aspects of membership, including but not limited to regrading, benefits, events and resources.  Carrying out all activities required to support annual renewals as needed, including but not limited to preparing datasets, processing payments and making proactive out-bound calls to late payers to meet retention targets.

Detailed Job Descriptions 63

64 Annex B

Management Information Officer

JOB DESCRIPTION

1.0 Overall Responsibilities: The management information systems officer works closely with an Information systems Consultant .Together, they review the needs of the IBPAP employees and stakeholders related to information management, data processing and distributed processing for end-users. The management information systems officer establishes budgets for hardware and software. S/he will directly report to the Director for Shared Services. 2.0 Scope of Work

The tasks to be carried out are detailed below:

Task 4 Data Extraction (Periodic & AdHoc) and initial analysis  Work with the M&E in generating interim reports  Conduct initial data analysis

3.0 Skills Requirement/ Educational Requirements

Detailed Job Descriptions 65

Training Officer

JOB DESCRIPTION

1.0 Overall Responsibilities:

Training officers plan, develop, implement and evaluate training and development programs in organizations.

2.0 Scope of Work

The tasks to be carried out are detailed below:

Task 1 Conduct Training Programs  Coordinate a staff training program based on organizational and employee needs  Arrange or conduct training courses, which may involve demonstrating equipment, operating video recorders and cameras, leading group discussions or role-playing activities and employing experts to run sessions  Prepare, administer and conduct training assessments  Provide career development sessions for existing staff and conduct induction sessions for new employees  Assist in developing training interventions to meet the needs of internal and external stakeholders  Support learners during training interventions

Task 2 Create and Develop  Use questionnaires and surveys in consultation with managers and staff to analyze training needs as they relate to the goals of the organization and work area  Develop training resources, which may involve preparing notes and visual displays from researched information or their own knowledge  Obtain information on work-related external courses, prepare reports on their suitability and make recommendations on staff attendance at training courses

Task 3 Quality Assurance  Evaluate the effectiveness of training programs using surveys, questionnaires, interviews and by observation, in order to plan future courses or to amend existing ones

Task 4 Document  Compile training manuals  Maintain learner outcomes in a Learning Management System

3.0 Skills Requirement/ Educational Requirements

 able to take initiative  tactful and mature  aptitude for research  good organizational skills  Excellent communication and presentation skills.

66 Annex B

KH Support Staff (4)

JOB DESCRIPTION

1.0 Overall Responsibilities:

2.0 Scope of Work

The tasks to be carried out are detailed below:

Survey Instruments 67

ANNEX C: Survey

Instruments

68 Annex C

IBPAP Knowledge Hub Survey

Thank you for your interest in the Service Management Program of the IT-Business Process Association Philippines. We are conducting a survey to help gauge the level of participation in, as well as the spectrum of services that will add value to, the program. We would appreciate if you took some time to fill the short survey below. Your answers will be of great help in the design and model of the Knowledge Hub we are building to support the deployment of our talent programs in education institutions. Thank you and have a great day ahead.

* Required Question

Name of School/Institution: * ______

Job Title: * ______

Designation of Respondent: * o President o Vice President/Associate Vice President o Dean/Associate Dean o Department Chair o College/School/Department Staff o Faculty o Part-time Lecturer o Other: ______

Our school is interested to participate in the Service Management Program (SMP) through the following modes: * Please choose one o Online Program o On-site Program o Blended Delivery (On-line + On-site)

What factors affect your choice of mode in offering SMP? * Please check one or more o Infrastructure o Connectivity o Curriculum readiness o Faculty readiness o Executive support o Other: ______

Survey Instruments 69

We intend to start offering courses in the Service Management program by: * Please choose one o This coming term o Next School Year o Two to three years from now o Other: ______

To systematize the transactions for all stakeholders including Higher Education Institutions (HEIs), IBPAP will build a Knowledge Hub (KH) that could facilitate more efficient services delivery to its members. Will you be willing to join as member of the KH with a fee? * o Yes o No

What services are you expecting as a member? * Please choose one or more o Faculty training/development o Faculty/ Student/Developer access to curricular materials o Support to students for internship and employment o Career marketing for potential enrollees o HEI Partnership/s with IT-BPO Firms o IT-BPM firm site tours and visits o Certification and accreditation o Free or discounted slots for forums and conferences o Access to the pool of publications and materials o Participation in Technical Working Groups for curricular and program content o Other: ______

How much would you be willing to pay as a member? * Please choose one o Php 25,000 ~ 49,999 o Php 50,000 ~ 74,999 o Php 75,000 ~ 99,999 o Above 100,000

70 Annex C

IBPAP Knowledge Hub Students/Professionals Survey

The IT-Business Process Association of the Philippines is looking to improve the delivery of its talent initiatives, specifically the Service Management Program (SMP). This survey aims to help define the range of services that will make up the knowledge hub to support SMP. Your inputs are greatly appreciated.

* Required Question

Name: * ______eMail Address: * ______

Cellphone Number: ______

I am a: * (Students = currently enrolled or in internship; Professionals = currently working) o Student o Professional

I am: * o Male o Female

Age: * ______

Course: * (What is/was your course in school?) ______

School/Employer: * ______

Are you a current member of a professional organization? * (Examples PICPA, LFS, etc.) o Yes I'm a member o I'm a member of the local/school chapter o No

Are you aware of the Service Management Program (SMP) of IBPAP? * o I have heard of it from my school o I'm currently enrolled in an SMP course o I have seen materials but I want to learn more about SMP o What is SMP?

Survey Instruments 71

Are you willing to become a member of an organization setup to support Service Management Program (SMP) activities in the school? * o Yes o No

How much are you willing to pay as membership fee? * o Php 0 ~ 99 o Php 100 ~ 199 o Php 200 ~ 299 o above Php 300

What services do you expect as a member of such an organization * (Please choose at least one) o Access to study guides/course materials o Support for internship o Career/Job opportunities o Conferences and networking meetings o Tours and site visits o Other: ______