Oftentimes, disruption is negatively defined as a disturbance or a problem that interrupts an event, activity, or process. In this day and age characterized by waves upon waves of technological advancements, digital revolution permeates everyone鈥檚 lives including how companies do their businesses.

However, disruptions can turn into great opportunities; and having this mind-set as a response to these changing times have set some businesses apart from the rest.

This had been one of the focus of the recently concluded 大象传媒 Economic Forum held last May 18 at Grand Hyatt Manila in Taguig City. In one of the afternoon sessions titled 鈥淔inding Opportunities in the Age of Disruption,鈥� Orlando B. Vea, president and CEO of Voyager Innovations; Anthony Thomas, CEO of Mynt (Globe Fintech Innovations, Inc.); Brian Cu, country head of Grab Philippines; and Miguel Cuneta, co-founder and chief community officer of Satoshi Citadel Industries (SCI), shared valuable inputs on how they were able to and continue to navigate the disruptive digital revolution to make their companies sustainable and competitive.

In his presentation, Mr. Cuneta underscored that the response to disruption is mostly unfavorable, and identifying those reactions can be advantageous.

鈥淭he initial response to disruptive technology is usually fear, doubt, or resistance. Fear because of the unknown, and resistance because we鈥檙e naturally resistant to change; and it doesn鈥檛 help that the incumbents feel threatened and fight back 鈥� trying to defend their position,鈥� Mr. Cuneta shared.

鈥淓ventually, the very disruptive technologies that people were afraid of become basic utilities. What are the examples of disruptive technologies today and how do we identify them? We actually just need to know what people are afraid of,鈥� he continued.

Mr. Cuneta added that those who dismiss disruptive technologies are usually the ones who get to be affected by it, and old industries that don鈥檛 adapt become obsolete. Moreover, the SCI co-founder also said that disruption is incessant and inevitable.

鈥淭here鈥檚 no really age of disruption; it鈥檚 really a constant process by which humanity uses technology to solve specific problems. It鈥檚 necessary for us to become a more advanced society and truly, disruptive technology is unstoppable,鈥� he shared.

Given that disruption constantly happens, all the speakers shared the same sentiment that disrupting themselves are necessary to be able to effectively navigate challenges, and make their companies resilient.

Mr. Vea said, 鈥淭oday鈥檚 disruption is tomorrow鈥檚 business as usual. That鈥檚 a fact of life. Before you鈥檙e able to disrupt, you have to disrupt yourself first.鈥�

He added that if you鈥檙e an incumbent, disruption is a 鈥淐EO thing鈥� 鈥� a decision that has to come from the very top.

Mr. Cu also shared how Grab, known as a major disruptor in the country鈥檚 transportation sector, has numerously needed to disrupt itself amid challenges such as government regulations and some negative feedback from the riding public in order to remain an agile company.

鈥淚t鈥檚 important that for every disruptor not to forget your roots, not to forget the basics of why you came into the market, and disrupt the market that you wanted to. For us it is three simple rules: safe rides, convenient rides, and fast rides. Now, we have to re-look at all the processes we have built over the last five years and again disrupt ourselves to be able to deliver those three core values that we鈥檝e set out to do. It鈥檚 always good to anchor yourselves to those basic values that you鈥檝e started off with,鈥� he shared.

The speakers also underscored the importance of collaboration with different stakeholders or even between incumbents and start-ups. This collaboration would not only benefit the companies involved, but ultimately, the market that they are serving as well.

Saying that it is fundamentally about people, Mr. Vea said that disruption is not really meant to disrupt the competitor. Specifically for them at Voyager Innovations, disruption means to disrupt the inequalities and inefficiencies together with the incumbents, that鈥檚 why they work together with competitors or with incumbents as partners.

鈥淚 think we can only survive and grow with that kind of mind-set,鈥� noted Mr. Vea.

Mr. Cu expressed the same view and said, 鈥淲e cannot work in silos or as a single company trying to do it alone. It is important for start-ups or even large companies who are trying to drive disruption in a certain space to work with other stakeholders. Also, being enablers to a space and being a platform that allows different stakeholders to enjoy benefits of the services you provide is very important.鈥�

Mr. Thomas echoed the same message, and said that as a financial technology provider, they are looking for opportunities to partner and collaborate if they see someone moving into the same business space as they are present in, and are solving the similar problems as they are.

鈥淲hat we aim to provide is really a better life for Filipinos,鈥� Mr. Thomas said.

Also highlighting the significance of collaboration, Mr. Cuneta shared that no matter how incumbents or regulators resist, the market will eventually choose what is beneficial to them.

鈥淚t鈥檚 in the better interest of start-ups, regulators, incumbents, and all the players to work together to make sure that the ultimate beneficiary of disruptive technology will be not just all of us here today but also the future generation,鈥� he said.

A panel of three private-sector leaders was assembled to tackle the subject before the roughly 500 attendees of the forum, which took place in the Grand Ballroom of Grand Hyatt Manila in Taguig City.

These leaders were Arthur R. Policarpio, co-founder and chief executive officer of Mobext Philippines, a mobile-first creative digital agency; Luis Miguel O. Aboitiz, executive vice-president and chief operating officer of the corporate business group of Aboitiz Power Corp.; and Camille A. Villar, managing director of Vista Land & Lifescapes, Inc.

Mr. Policarpio鈥檚 talk revolved around two trends he described as 鈥渂ig鈥� and 鈥渄estructive.鈥� The first of which is the virtual company model. 鈥淎t this point we should ask this question, 鈥榃hy should we even need to go to an office… when we can work anywhere?鈥欌��

He cited the technology firm Automattic, which owns the content management system WordPress, as a company that has gone virtual. Its employees, who are located in a number of countries worldwide, largely work from home.

鈥淲hy should you embrace the virtual company model? Think about it, you have the capability to tap a talent pool of 50 million people anywhere in the world via the freelance marketplaces… You reduce your office costs, increase worker satisfaction, reduce traffic,鈥� Mr. Policarpio said.

Coinciding with the emergence of the virtual companies is the rise of the freelancers and the freelance Web sites. The development, Mr. Policarpio said, is 鈥渕ostly driven by the millennial work force who prefers flexibility and control over the way they want to work.鈥� And Filipinos are increasingly getting in on freelancing. One freelance marketplace, Mr. Policarpio said, has over a million Filipino members.

The second trend is the sharing economy, and it has given rise to a whole new kind of company, a marketplace company that does not need a lot of physical assets to create real value, Mr. Policarpio said. 鈥淭here are consumers or people who need services on one side, and you have people, not companies, who can provide those services on the other side. The marketplace business… creates a platform that enables those two to find each other,鈥� he explained.

For navigating these trends, Mr. Policarpio said, 鈥淐EOs need to be students all over again.鈥� He also suggested building a culture of learning into an organization since the millennials are 鈥渉ungry for learning.鈥�

Automation is also changing the workplace. Mr. Aboitiz had a personal encounter with one type of it, called semi-intelligent automation.

鈥淭he last time I was [in the United States], I was shocked because I had a problem with my cell phone. So I had called a call center. No person answered my call. It was a computer that answered the call. It conversed with me. It answered back. I didn鈥檛 type any numbers on my phone. I just said the numbers, numbers of my credit card… any details it wanted,鈥� Mr. Aboitiz said. 鈥淥nly when I asked questions that were unusual was I passed on to a real person.鈥�

In boardroom decision-making discussions, Mr. Aboitiz believes that some of the questions that are going to be asked are: 鈥淗ow do we change?鈥� 鈥淗ow do we automate?鈥� 鈥淲hat do we use to automate?鈥� 鈥淗ow do we transition from where we are to automation?鈥� 鈥淒o we take big leaps or small strides?鈥�

Millennials are finding themselves answering these type of questions 鈥� and other important management questions 鈥� as they rise through the ranks into ever more senior positions.

But these individuals are often misunderstood. 鈥淭he problem, it seems, is that we tend to overly generalize traits that we attribute to them,鈥� Ms. Villar said. 鈥淕eneralizations, while useful, must be employed with caution because they tend to overlook the uniqueness and complexities of all of us. Profiling a generation, be it baby boomers, the Gen X, or the millennials, should inform but not shape our thinking.鈥�

鈥淲ith a generation of socially motivated, consumption-crazy but creatively innovative individuals starting to take over the work force, it is imperative that we acquire deeper understanding of their strengths and weaknesses in order to make informed strategic decisions,鈥� she added.

Ms. Villar shared a few things she had learned about her generation that members of other generations may want to take note of. One is that they are outspoken but respectful of hierarchy and wisdom of experience. 鈥淭he best millennial leaders I鈥檝e met both in and outside Vista Land have found a good balance between their passion for new ideas and pushing boundaries and… recognizing the value of knowledge established by time, tradition and mentors.鈥�

They are 鈥渇lexible, independent, collaborative and innovative.鈥� Ms. Villar said this combination of characteristics allows them to thrive in an environment of constant innovation through collaboration. 鈥淭hus it becomes more important to mentor this generation in order to provide guidance and essential feedback mechanisms for self-correction and self-improvement.鈥�

Millennials are also 鈥渋nfinite learners,鈥� Ms. Villar said. 鈥淐ombining the easier access to data with the drive to learn more, millennial leaders have the potential to bring human society to heights unforeseen if given the right opportunity and proper understanding,鈥� she said.

The forum, which has become one of the leading live platforms for discussing the key challenges and opportunities for the nation since its inception in 2016, brought together over 500 people from the private and public sectors. Titled 鈥淒isruptor or Disrupted? The Philippines at the Crossroads,鈥� it delved into the forces and realities of disruption and their effects on industries and the country.

The keynote speech was delivered by Dennis A. Uy, one of the most exciting personalities in the Philippine business scene today. He is the founder, chairman and chief executive officer of Udenna Corp., a holding company which has interests in a wide variety of industries, including petroleum retail and distribution (Phoenix Petroleum Philippines, Inc.) and shipping and logistics (Chelsea Logistics Holdings Corp.)

鈥淚f I have learned anything in life, it is this: Change 鈥� which we millennials call disruption 鈥� is constant. If you cannot adapt, you will be left behind,鈥� Mr. Uy said.

Change, he pointed out, is usually a positive thing for what he called 鈥渂usiness insurgents,鈥� or those that rebel against the incumbents and think that there are better ways to do business, especially with technology. The same can鈥檛 be said for the incumbents, also known as the established businesses, because they refuse to see the changes in the landscape and consumer preference, so they get left behind, Mr. Uy said.

鈥淐hange is coming, and we have no choice but to embrace it. If we do not evolve, we become extinct. We will be the products of yesterday, instead of being the brands of the future.鈥�

Mr. Uy鈥檚 speech was succeeded by a series of talks by some of the esteemed personalities in their respective industries. The session devoted to big data and Philippine competitiveness was opened by Ret. Gen. Eliseo M. Rio, Jr., acting secretary of the Department of Information and Communications Technology. He pointed out that all aspects of human life are now controlled by information and that information is the new oil.

Kristine Romano, managing director of McKinsey & Company in the Philippines, helped debunk and prove some myths about digital. It is not true that digital is creating value across sectors, that only digital natives can successfully disrupt, and that strategy no longer matters in digital. It is true, however, that digital is a 鈥渨inner takes all鈥� game, that disruptors have the first-mover advantage, and that culture change is critical.

In her talk, Erika Fille T. Legara, professor at the Asian Institute of Management, noted that for the Philippines to remain globally competitive, it has to disrupt itself. For the country to adapt to disruption, there鈥檚 a need to spark the interest of various stakeholders and to collaborate with each other.

In the following session, which revolved around artificial intelligence, e-commerce and cashless transactions, Pia Bernadette Roman-Tayag, managing director of the Inclusive Finance Advocacy Office at Bangko Sentral ng Pilipinas, reminded the audience that many parts of the country remain unbanked; in fact, as much as 34% of Philippine cities and municipalities have never seen a bank.

Edwin R. Bautista, president and CEO of Union Bank of the Philippines, said that banks today have two options with the entry of fintech or financial technology: disrupt themselves or perish. UnionBank is already mining bitcoin, he said, adding that blockchain is the future.

Meanwhile, as companies leverage on artificial intelligence (AI), they gain more information about their customers, particularly their pain points, according to Lito Tayag, country managing director of Accenture, Inc. (Philippines). But he advised companies to raise their AI systems to be more productive as the capabilities and impact of these systems grow.

An important ingredient for engaging customers in the age of disruption for Walt Steven Young, founder and CEO of Adobomall, is authenticity, which a story that鈥檚 unique to a brand can enhance. But Adobomall is also taking advantage of available technology as Mr. Young shared that they are in the process of patenting a shopping experience powered by augmented reality.

Opening the third session, which focused on finding opportunities in the age of disruption, Orlando B. Vea, president and CEO of Voyager Innovations, told the audience 鈥渁 fact of life:鈥� today鈥檚 disruption is tomorrow鈥檚 business as usual. But he noted that to lead in the age of disruption, one must think in terms of platform.

GCash, a micropayment service of Mynt (Globe Fintech Innovations, Inc.), is one example. Mynt鈥檚 CEO, Anthony Thomas, said that now, one can even purchase load credits and pay bills on Facebook Messenger through GCash.

Brian Cu, country head of Grab Philippines, said that disruptors shouldn鈥檛 forget about their roots. He also shared things his company had learned about disruption: remaining agile, collaborating with stakeholders, focusing on growth without forgetting the basics and innovating.

For Miguel Cuneta, co-founder and chief community officer of Satoshi Citadel Industries, companies like Grab are doing an important thing in the age of disruption 鈥� creating useful services. But he doesn鈥檛 believe that there is a real age of disruption since disruption is a constant process in which the market chooses what鈥檚 beneficial to itself.

In the fourth and final session, which revolved around the workplace and disruption, Arthur R. Policarpio, co-founder and CEO of Mobext Philippines, said marketplace companies, like聽 freelancing Web sites, will continue to thrive as the sharing economy grows. And leaders in this day and age, he noted, must be students all over again, be business model engineers and be architects of company vision in the digital world at the same time.

Luis Miguel O. Aboitiz, executive vice-president and chief operating officer of the Corporate Business Group of Aboitiz Power Corp., noted that since things are changing fast and technologies are getting better, businesses should expect a reorganization every two years.

The workplace is already changing with the entry of more and more millennials. But according to Camille A. Villar, managing director of Vista Land & Lifescapes, Inc., people tend to overly generalize traits attributed to them. Profiling a generation, she said, should inform but not shape one鈥檚 thinking. She recommended seeking millennials who have high levels of emotional intelligence and not necessarily high grades, to create a culture of mutual trust and respect in the workplace.

The 大象传媒 Economic Forum 2018 was presented by 大象传媒 Corp., with co-presentors LT Group, Inc., GT Capital Holdings, Inc., and SM Investments Corp.; platinum sponsors PLDT and Manila Electric Company; gold sponsors Ayala Corp., BDO Unibank, Inc., Megaworld Corp., Phoenix Petroleum, Udenna Corp., and UnionBank; silver sponsors Aboitiz Power Corp., Asian Institute of Management, FWD Philippines, Metro Pacific Investments Corp., Mundo Builders, San Miguel Corp., and St. Luke鈥檚 Medical Center; bronze sponsors Development Bank of the Philippines, Land Bank of the Philippines, Mastercard, National Home Mortgage Finance Corp., Philippine Amusement and Gaming Corp., Sun Life Financial Philippines, Voyager Innovations, Wilcon Depot, Inc., and Cross; media partners The Philippine Star, PhilStar Global, and One News; and event partners Fiera de Manila and ESET.

The fourth industrial revolution is heralding a world of rapidly transforming business landscapes. Across all industries, from media to manufacturing, a technological arms race is threatening to change the world as we know it. Innovation is at the forefront of this global transformation, and business models, policy environments, and even social norms are facing disruption at the hands of new technologies like the Internet of Things (IoT), big data analytics, cloud computing, and artificial intelligence.

鈥淭he First Industrial Revolution used water and steam power to mechanize production. The Second used electric power to create mass production. The Third used electronics and information technology to automate production,鈥� Klaus Schwab, founder and executive chairman of World Economic Forum Geneva, explained.

鈥淣ow a Fourth Industrial Revolution is building on the Third, the digital revolution that has been occurring since the middle of the last century. It is characterized by a fusion of technologies that is blurring the lines between the physical, digital, and biological spheres,鈥� he added.

Understanding just how such an all-engulfing phenomenon is affecting and will affect Philippine competitiveness in the future is a challenge in itself.

At the 大象传媒 Economic Forum, held at the Grand Hyatt Manila in Taguig City on May 18, Erika Fille T. Legara, a professor at the Asian Institute of Management鈥檚 Department of Analytics, Information & Operations, recounted how a Filipino entrepreneur asked her about how the Philippines can hope to catch up to the fourth industrial revolution, when the country is barely positioned for the third.

鈥淗e said, 鈥榃hy are we talking about the fourth industrial revolution? The Philippines is still in Industry 2.0. We haven鈥檛 even positioned yet to three, and now you鈥檙e talking about four鈥�,鈥� she shared.

鈥淏ut then again, the future is not very evenly distributed. Whether we鈥檙e moving from three to four, or two to three, or taking a leap from two to four, it is important that we are all aware of what is happening around us. And how these developments can potentially affect our businesses, our people, our society,鈥� she added.

The Internet of Things, she explained, held the potential to change the world much like the Internet did during the turn of the millennium. The technology is based around the concept of connecting any device to the Internet and to each other. Through the IoT, devices ranging from smartphones and smartwatches, to appliances like coffee makers, washing machines, and even machinery like jet engines can freely collect and exchange data, as well as communicate with one another.

鈥淲hat does this mean for businesses? Take a look at Boeing. A Boeing 77 has two engines. Each of its engines produces 20 terabytes of data per hour. So if you鈥檙e flying from New York to LA, that takes about six hours. That鈥檚 240 terabytes of data. That鈥檚 a lot of big data,鈥� she said, noting that the sensors inside the engines are communicating to each other, monitoring vital flight conditions like temperature, humidity, and pressure throughout the trip.

Using this abundance of data, machine-learning software and artificial intelligence could then be used to interpret and obtain meaningful insights for businesses. Sectors with a heavy dependence on machinery and robotics like manufacturing could stand to gain huge competitive advantages, given the right capabilities.

Even sectors not conventionally perceived as technologically independent, such as farming, are not immune to the disruption such technologies present.

鈥淲e can now deploy sensors to our soil, to our water management system. We can fly drones to monitor our fields and distribute seeds and fertilizers,鈥� Ms. Legara said.

鈥淎bove all these, these sensors can also collect data, send this data up to the cloud, perform some machine-learning models and do different levels of analytics, from descriptive to predictive all the way to prescriptive analytics. And then these results will go back to the stakeholders, including our farmers,鈥� she added.

However, is the Philippines equipped to facilitate the constant exchange of such vast quantities of data over its networks?

Ret. Gen. Eliseo M. Rio, Jr., acting secretary at the Department of Information and Communications Technology, lamented the fact that compared to the country鈥檚 neighbors in Southeast Asia, the Philippines has fallen behind in terms of its telecommunications services. The problem, he said, was due to a lack of government support.

鈥淯p till now, the government has not supported our ICT industry in the same manner as the other countries have. Up till now, all the infrastructure that are being rolled out in our telecommunication industry has all been private sector-funded,鈥� Mr. Rio said during his talk.

He added that just privately funded roads tend to have tolls to recoup investments made by investors, the same could be said for privately funded telecommunications networks 鈥� that is, the burden falls to the consumer. And though the current administration has plans to address the lack of infrastructure, it remains, in his belief, the primary obstacle for businesses trying to mitigate the effects of disruption.

鈥淓verything now, all aspects of our lives, are controlled or even influenced by information,鈥� Mr. Rio said. 鈥淚nformation is the new oil, they say, but that oil has to be distributed by pipes. That pipe is what the government needs to use to support the telecommunication industry, so information can flow faster at less cost to most of the areas in our country.鈥�

The bad news is that the longer the Philippines remains unequipped to handle the strain of technological advancement, the more difficult it will be for businesses to play catch-up with the rest of the world. The price for any business adapting too late in a fast-changing, disruptive environment could be death.

鈥淭here are clear winners and losers from disruptions. Everyone knows the saga of Netflix and Blockbuster,鈥� Kristine Romano, managing partner of the global management consulting firm McKinsey & Company in the Philippines, said.

鈥淏lockbuster used to be an eight-billion-dollar company in 2005 and only five years later filed for bankruptcy. It could not compete with the instant and low-cost digital delivery of Netflix. Similarly, you find the likes of Google whose market share has gone from 12% in 2001, to an estimated 90% today. Meanwhile, who still uses their Yahoo accounts?,鈥� she shared.

Ms. Romano further said that by being the first mover, or at least being one of the top 25% of companies fastest to respond to disruption, companies can negate the projected revenue and profit losses for disrupted businesses, according to their research at McKinsey.

鈥淲e tracked the direction of the revenues of the most disrupted industries and we found that growth in disruptive industries can be reduced as much as 6 to 12 percentage points. Now, of course, the numbers vary by sector by player, but our research shows that digital enables competition that puts pressure on revenue and profit growth,鈥� she said, further noting that disruptors tend to have the competitive advantage when compared to disrupted businesses that fail to adapt.

To ensure chances of success, the imperative to change and adapt should naturally come from the very top of the company ladder and work its way downward. Culture change is inevitable, and if industry executives play their cards right, they could see themselves becoming the digital leaders of the future.

鈥淵ou don鈥檛 need to be a digital native to win; a great strategy by itself can retrieve all of the revenue growth lost and contribute to further growth. Companies with a high DQ or digital quotient rely on internal collaborations, take bold risks, and experiment with new strategies,鈥� Ms. Romano said.

In a trajectory of rapid improvements, buoyed by disruptive technologies, consumers are becoming more demanding and discriminating. Emerging technologies provide companies a multitude platform to unleash new level of customer relationship and re-examine their purpose in an increasingly competitive market. Although disruption opens new opportunities for both start-ups and the incumbents, it remains less attractive to some industry players who need to adapt new business model to stay ahead of the digital curve.

Innovations, particularly in banking, retail and services sectors, have transformed monetary transactions into an immersive financial experience that goes beyond the traditional processes. The emergence of Artificial Intelligence (AI), E-Commerce and cashless transactions brings consumers more secure, faster and more convenient transaction options.

During the recent 大象传媒 Economic Forum held at Grand Hyatt Manila in Taguig City on May 18, Bangko Sentral ng Pilipinas (BSP) Managing Director of Inclusive Finance Advocacy Office and Concurrent Head of Financial Consumer Protection Pia Bernadette Roman-Tayag explained how disruptions in financial system can help achieve financial inclusion by reaching the unbanked and by eradicating misconceptions on the services that banks offer.

鈥淒isruptions are able to improve services for currently served population,鈥� Ms. Roman-Tayag said. 鈥淏ut it is transformational in the effect that it can have for the unserved or never served before, and that is where the opportunity lies.鈥�

Ms. Roman-Tayag shared that 554 out of 1,634 or 34% of cities and municipalities in the country do not have a banking office. Also, citing the BSP Financial Inclusion Survey in 2015, she shared that 47% of Filipino adults have outstanding loans, and 72% of them borrow from informal sources.

These people are paying high prices from informal lenders for thinking that financial services from banks are expensive, in addition to the fact that some of them don鈥檛 have enough funds to open an account or don鈥檛 have the necessary documentation required by these institutions.

鈥淭hat鈥檚 exactly right for disruption. That鈥檚 exactly what technology can bring to these misconceptions or perceptions or realities of the unbanked,鈥� Ms. Roman-Tayag said. 鈥淭echnology is there, the demographic is just waiting for all this new technology to come in, for disruptors to come in. The currently served market is still your market to improve products, but then, the game will be on the transformation, will be on the unserved market.鈥�

While disruption provides banks the opportunity to position themselves in reaching the untapped market, they are also facing challenges to stay competitive 鈥� still brought by disruption. New technologies and alternative payment methods are ramping fast, pushing financial technology (fintech) companies to gain momentum while leaving traditional banks behind.

According to Edwin R. Bautista, president and chief executive officer (CEO) of Union Bank of the Philippines (UnionBank), banks in the age of disruption have only two choices: digitize or perish.

Mr. Bautista shared that as fintechs gain a strong foothold in the industry, there鈥檚 an implication for banks, like UnionBank, to later lose their market share.

鈥淎fter thinking of these, our board told the management: 鈥業s it time to just sell the bank?鈥� How should a bank or how could a bank respond? At UnionBank, our answer after a long soul search was we fight fire with fire, technology with technology,鈥� Mr. Bautista said, noting that fintechs do not have a monopoly of technology and there is no reason for banks to use the same technology.

In response, UnionBank arrived at a plan to transforming the bank into a bank that is digital to the core; it started its digital transformation journey to avoid being disrupted.

While heading its way to join industry disruptors, Mr. Bautista said that they run into two realizations: one, banks can play the role of a disruptor too; and two, the best way to avoid disruption is to disrupt oneself. 鈥淭his way, we can at least fear ourselves to a more desirable outcome,鈥� he said.

The BSP, playing its mission to promote and maintain price stability, a strong financial system, and a safe and efficient payments and settlements system in the country, is creating the enabling policies and regulatory environment so banks can use financial technologies, can become fintechs themselves, can disrupt themselves or be at equal footing as other disruptors in the industry.

Ms. Roman-Tayag said that BSP is leveling up the playing field in terms of other fintechs that need to be licensed with the BSP such as e-money issuers and virtual currency exchanges. 鈥淲ith this, we get to create an ecosystem where we can develop trust and certainty in the market which is what the people are really looking for,鈥� Ms. Roman-Tayag added.

To keep customers engage in this age of disruption, Adobomall Founder and CEO Walt Steven Young identified three points: to tell stories that create authenticity, to continuously create more innovations, and to constantly measure results.

Mr. Young said that in this age, everybody has the capabilities of creating technology. 鈥淎t the end of the day, your customers will see a lot of technologies in front of them. What sets you apart is because you have a story that you are grounding your ideas to,鈥� he said, adding that having a unique story would help companies create connection that generates customer engagement.

Furthermore, technology and innovation create new experiences, thus measuring its impact or results would help companies judge what seems to be effective that might be changed in the next days.

鈥淵ou may be disrupting now, but maybe in a few months, in a few weeks, you鈥檙e no longer a disruptor, you鈥檙e a traditional business,鈥� Mr. Young said. 鈥淣ever stop innovating. It is the name of the game now.鈥�

As observed, all disruption-led changes focus on customer centricity and personalization of customers鈥� experience. And as companies are making their transition into the disruptive marketplace, some of them are now leveraging on AIs and technologies that help them gain more intelligence about their customers. This, according to Accenture, Inc. (Philippines) Country Managing Director Lito Tayag,听allows companies to identify customers鈥� pain points and predict their preferences.

One technology trend that is growing its reach in today鈥檚 landscape is called citizen AI. Mr. Tayag said that as AI grows in capabilities and its impact on people鈥檚 lives, businesses must raise their AI to act as responsible productive members of society.

鈥淲ith these opportunities, we see a new era unfolding. The era of applied intelligence, the era of breakthrough collaborations between humans and machines as it ushers the revolution that is the intelligent enterprise. In this new synergy, it is expected that Artificial Intelligence shall become integral in enabling people to scale up productivity and ultimately bring more and further innovations to business and society,鈥� Mr. Tayag said.

And as the country prepares for the impact of AI and other advanced technologies to benefit the society, Mr. Tayag said that it should result in inclusion for the country, including financial inclusion of the unbanked, access to payments, access to lending, and access to investment.

By Melissa Luz T. Lopez, Reporter

In this age of smartphones, everything is a tap or two away for anyone online.

As a result, work and play have increasingly gone digital, helping boost demand for electronic money that can be easily sent and received using online payment settlement platforms.

As more and more Filipinos equip themselves with Internet-enabled devices, online financial transactions can only go up.

These transactions can be conducted anywhere 鈥� at home, cramped inside a public train, or sitting in the office; with a steady and stable Internet connection, shopping and payment for goods and services can be done at the tap of a finger or at a click of a mouse.

To ensure that these online transactions 鈥� and its related processes 鈥� incur minimal snags, the Department of Trade and Industry (DTI) last February launched a Philippine e-Commerce Roadmap spanning five years to 2020, covering infrastructure, laws, additional investments, data privacy, consumer education, and regional integration.

Besides helping support small-scale businesses, it will allow more Filipinos to avail of financial services online.

These moves are part of the government鈥檚 grand plan to bring the electronic sector鈥檚 contribution to 25% of gross domestic product (GDP) by 2020, coming from an estimated 10% share in 2015.

Along with the advent of online merchants and service providers came the use of Bitcoin, a payment system that allows users to send and receive payments without an intermediary.

Firm betting big on digital currency

Growing interest and demand for e-commerce and online exchange in the Philippines prompted Ron Hose, then a tech investor at the Silicon Valley, to come to the Philippines and set up Coins.ph, an online firm that serves as a platform for mobile payments.

鈥淧eople use digital currency here to accomplish things,鈥� Mr. Hose, co-founder and chief executive officer of Coins.ph, said in an interview last month. 鈥淵ou can directly use the services for people to send money home at lower costs and bypass that 7-8% (in service fees) to an average of 1-3%.鈥�

鈥淲e allow people to pay their bills using their mobile phone, top-up their phones, those kind of things.鈥�

Coins.ph is a downloadable app that serves as an e-wallet and mobile dock for multiple bank accounts, which can send and receive money across both members and non-registered users. Money is loaded on a user鈥檚 account through partner brick-and-mortar merchants such as 7-Eleven convenience stores and pawnshop outlets, and may be sent and received across bank accounts, e-mail addresses, text messages, and Facebook profiles through the platform. The credit may then be converted into cash through the same physical avenues above or via door-to-door delivery, and may also be used to pay utility bills and purchase items.

The app makes use of the Blockchain platform for each transaction, a Web-based settlements system that allows clearing in a matter of seconds. The amounts are still expressed in peso value, with its Bitcoin equivalent used as the 鈥渓anguage鈥� to transact under Blockchain.

鈥淚鈥檓 a big believer that growth is going to come from Asia for the next two to three decades, and if you look not just in the Philippines but across other emerging markets, GDP is growing very quickly but a lot of people are being left behind without access to very basic services,鈥� Mr. Hose said when asked why he ventured into the Philippine market.

鈥淭he thing that can change it is technology. Everybody has a cell phone, and increasingly people have smartphones even in really remote areas鈥� The channel is there, you can access people and provide them with services.鈥�

The Philippines has constantly been cited as a regional outperformer in terms of economic growth, but a gnawing gap between the rich and the poor remains, along with a large chunk of unbanked individuals. A 2015 survey from the Bangko Sentral ng Pilipinas (BSP) showed that only five in 10 Filipinos have experienced transacting with banks, while only a third of adults placing their savings in a bank account and about 70% opting to keep their money at home.

鈥淚n the Philippines, more people have Facebook accounts than a bank accounts鈥� Not having access to the financial system actually ends up being very, very costly,鈥� Mr. Hose said, pointing out huge spreads lost due to remittance and other processing fees in traditional modes of fund transfers.

Mr. Hose sees his business as complementing the growth in online-based businesses, while also contributing to the government鈥檚 efforts to broaden financial inclusion. In fact, he eyes to bring the share of Filipinos with access to formal financial gateways to at least 50% by 2020, coupled with work done by banks, technology providers, and government.

Philippines is world鈥檚 third-largest bitcoin market

An estimated $2 million to $3 million are being transacted via bitcoin exchanges in a month, BSP Deputy Governor Nestor A. Espenilla, Jr. has said, making the Philippines the third biggest Bitcoin market in the world.

Looking ahead, further growth is seen for the e-currency and e-commerce sectors, with the current regulatory environment deemed business-friendly. In particular, Mr. Hose described the country as a 鈥済reat place to incubate start-ups鈥� with solid economic growth, a relatively simple legal system, and low operating costs, along with cultural factors such as English-speaking residents who are 鈥渙pen-minded鈥� and have a high sense of gender equality.

Mr. Hose also said he is looking forward to get electronic money recognized and covered by local regulators, while assuring that consumer protection and anti-money laundering systems are currently in place.

鈥淒igital currency is still very new and it takes time for people to understand how it works and apply regulation to it,鈥� the entrepreneur said.

BSP鈥檚 Mr. Espenilla has said the central bank is looking to amend its rules to cover virtual money issuers, particularly for those engaged in bitcoin trading. Unlike bills and coins, the Bitcoin is not issued nor guaranteed by the central bank.

Separately, the central bank and other government agencies are working on a National Retail Payments System to allow more retailers and consumers to shift to mobile payments and fast-track money transfers.

The regulatory environment remains favorable, with government agencies tweaking rules to accommodate innovation. This was seen with how the Land Transportation Franchising and Regulatory Board issued permits for Grab and Uber vehicles to offer its ride-hailing services in Metro Manila and key cities in the country, as well as the central bank鈥檚 move to allow non-bank firms to offer financial services to broaden access to formal channels.

Prospects for improved Internet service may also provide a lift to future business, with the government soon to dedicate a new agency focusing on connectivity under the Department of Information and Communication Technology.

鈥淚n order to drive this type of growth and transformation, you need the Internet as baseline infrastructure, a utility,鈥� Mr. Hose said. 鈥淚t鈥檚 really the great enabler. The fact that people have slow service is really slowing down growth.鈥�

—–

Melissa Luz T. Lopez (@meltlopez on Twitter) covers the central bank and the macroeconomy for 大象传媒 after a year in the political beat. She gets by with a mix of wit and luck.

That鈥檚 a question that鈥檚 been hounding the industry since the late 1990s.

During that period, Internet access became widely available locally, allowing Web users to directly book and pay for their trips and accommodations online, thereby cutting off travel agents.

This much has been admitted by Rajah Travel Corp. (RTC) Chairman and President Aileen C. Clemente in an interview.

鈥淭here has always been that question 鈥� whether travel agencies are going to die 鈥� and they鈥檝e been saying that since the 鈥�90s,鈥� she said.

Ms. Clemente added: 鈥淚f you鈥檙e a traditional-model travel agency, then yes. We have seen those who are still using [that] method already close-up shop.鈥�

Over the past decade, this trend has been reflected in the United States, with the number of brick-and-mortar travel agencies steadily declining due to the rise of online alternatives.

However, it has been a slow 鈥� if painful 鈥� death for the traditional travel agency industry.

According to the updated version of the US Bureau of Labor Statistics鈥� Occupational Outlook Handbook, traditional travel agency sector is expected to shed jobs by around 12% from 2012 to 2024.

These job losses are due to the 鈥溾�bility of travelers to use the Internet to research vacations and book their own trips,鈥� the handbook read. 鈥淸It] is expected to continue to suppress demand for travel agents. An increasing amount of travel is also expected to be booked on mobile devices.鈥�

As a result, being a travel agent is now a 鈥渦seless job,鈥� Global job site CareerCast said.

However, the situation is not as hopeless as it looks, Ms. Clemente said.

After all, Rajah Travel 鈥� which has been in the travel industry for nearly four decades 鈥� remains one of the few companies to survive, adapt, and evolve with the times.

As early as the 1990s, the company chose to invest in the right equipment and employ automated processes to maintain its position in the market.

These strategies allowed them to grow their products and services and become more efficient in serving clients. Over the years, the company has evolved from a mere inbound- and outbound-ticketing agency to a full-fledged travel firm and offers a range of services like corporate travel management and travel consultancy.

鈥淭he traditional way would be just to ticket, but now that can be fulfilled by a click of a button. If you鈥檙e there for the fulfillment, then you will go away. But if you鈥檙e there offering experience, if you鈥檙e there offering corporate clients you know good itineraries that fit their mold, then you鈥檙e OK,鈥� she said. 鈥淢ost of the travel agencies [today] are like that. With an airline booking tool, you wouldn鈥檛 be able to compare an airline with another. You wouldn鈥檛 be able to compare the stopovers, how long it is, what VISA you need, or even what the configuration inside the plane looks like. They wouldn鈥檛 tell you in comparison to another, and that鈥檚 our role.鈥�

Automation helped roll out vacation packages

The automation RTC went through involved Business to Business (B2B) and Business to Consumer (B2C) technologies, which in this case, are booking tools that entail the exchange of services between the company and other businesses and clients, respectively.

Through these investments, RTC was able to roll out vacation packages to international destinations ranging from Asia Pacific, Europe, and North and South America; form partnerships with other global travel-and-tour businesses like Contiki, Insight Vacations, Star Cruises, and Norwegian Cruise Line; and provide unique services like its travel registry, which allows friends and loved ones to contribute to a particular trip eyed by the buyer.

Even with their range of offers, Ms. Clemente acknowledged the rapid rise of online travel agencies (OTA) and their increasing popularity among budget travelers, but pointed out that there are numerous loopholes in terms of regulation.

鈥淎s far as OTAs are concerned, it鈥檚 been a shift from one end of the pole to the other. It鈥檚 polarizing because there are those who would need an OTA to 鈥榤arket鈥� 鈥� so to speak 鈥� in venues outside of their place. Of course when you鈥檙e online, universally you can be seen,鈥� she said. 鈥淣ow for us as a travel company, the only question that we have now is how do you hold OTAs accountable? To what standard do you hold them up to? How safe is the consumer, or is it a 鈥渃onsumer beware!鈥� attitude that the government would want to have in putting policies in place?鈥�

She went on to say that the existence of OTAs also poses a kind of discrimination against travel companies such as RTC because most do not pay taxes.

鈥淚t may be cheaper but they wouldn鈥檛 be contributing,鈥� Ms. Clemente said. 鈥淪o who are they? How do they get away with this and again, to what standards do you hold them up to? We don鈥檛 mind having the sharing economy as long as we are under the same platform and we鈥檙e subjected to the same rules.鈥�

Last year, RTC grew in several departments but a much of it was in inbound trips, which she ascribed to the overall campaign and policies put in place by the Department of Tourism (DoT).

Based on data released by the DoT early in June, the month of April recorded a total of 471,598 visitors to the Philippines which is 11.39% higher compared to the same period last year. Furthermore, a total of 2,073,851 tourists arrivals were recorded from January to April 2016, representing an increase of 14.25% versus the 1,815,202 arrivals in 2015. The biggest volume of visitors was seen in February with the tourism department recording 549,725 arrivals, 20.42% higher than last year.

Receipts generated from visitors for the first four months of the year grew by 12.34% to P86.66 billion from P77.14 billion in 2015.

Ms. Clemente, who is also the president of the ASEAN Tourism Association and the executive vice-president of the Tourism Congress, said that there are several provisions included in the Tourism Act of 2009 that 鈥渃hanged the paradigm of how you look at tourism.鈥� These provisions include the National Tourism Development Plan, which she said allowed people to appreciate a plan over a longer time period, and the National Tourism Coordinating Council, which mandated the coordination of DoT with different government departments.

She said that among the successful partnerships formed by the tourism department was that with the Department of Public Works and Highways as it led to infrastructure and road improvements in remote tourist spots. But for her, the partnership with the Department of Transportation and Communication should have been given priority as well because there is a lot of room for improvement in the field.

鈥淚t鈥檚 not just the airports, it鈥檚 not just the aviation. It鈥檚 maritime as well,鈥� she said. 鈥淚t鈥檚 more resonant to talk about aviation because we are an archipelago, but if we also have means of traveling within the archipelago or from another place to us then it makes it a desirable way to go around. So I think that鈥檚 very important.鈥�

As a member of both the public and the private sector, Ms. Clemente said she hopes whoever will be at the helm of tourism in the country be not only promotion-driven, but also policy-driven.

鈥淭ourism is a very complex and yet a very meaningful endeavor for the economy because it鈥檚 really the most inclusive, if you think about it. If we have that paradigm in place then we should be OK,鈥� she said. 鈥淭he real business of tourism, as said by former tourism secretary Ramon R. Jimenez, Jr. is that it鈥檚 a people鈥檚 business. It has a big economic impact if you look at it and that鈥檚 why I want it to be policy-driven.鈥�

—–

April Paulyn B. Roque (@aprilpaulyn on Twitter) is an English Literature graduate. When she鈥檚 not writing, she鈥檚 either reading dystopian novels or watching dog videos online. 大象传媒 Senior researcher Kia B. Obang (@kiaobang on Twitter) helped provide data to infographics designed by Margarita Samantha Gonzales (@famamfa on Twitter).

Companies have no other option but to embrace disruption to keep them ahead of the curve, speakers said during the disruption session of 叠耻蝉颈苍别蝉蝉奥辞谤濒诲鈥檚 first-ever Economic Forum held last July 12 at the Shangri-La at the Fort, Bonifacio Global City, Taguig.

Firms must realize the importance of responding to changes 鈥� inside and outside the corporate world, said Margot B. Torres, executive vice-president and deputy managing director of McDonald鈥檚 Philippines, and one of the speakers during the session. She cited the fate of more than half of Fortune 500 companies that have gone bankrupt, have been acquired, or have ceased to exist since 2000 due to disruption.

For his part, Alfredo C. Tan, group director of Global Marketing Solutions, Facebook Canada, concurred, saying that since change is currently the norm, companies must never be complacent and never stop innovating.

He also said that the world has already gone mobile, with 7.5 billion mobile devices expected to grow five times than the population of 100 countries including the Philippines. This massive consumer base presents a lot of opportunities for firms, he added.

A similar opportunity will also be afforded to the players of the country鈥檚 power industry if they go solar, said Leandro L. Leviste, Solar Philippines president.

Calling it as the power industry鈥檚 鈥渂est kept secret,鈥� he said solar with batteries is cheap enough to displace the country鈥檚 entire gas and diesel and supply the majority of our energy demand, with the balance in co-existence with coal. He cited Deutsche Bank鈥檚 report on grid parity that said the Philippines is best suited for solar as we have one of the world鈥檚 highest power rates and high solar irradiation.

鈥淸Solar] can grow the power industry by five times, lower power prices, clean the environment, create a million jobs, and [is] the biggest investment opportunity of the 21st century,鈥� said Mr. Leviste.

For his part, Donald Patrick Lim, ABS-CBN Broadcasting Corporation Digital Media Division鈥檚 chief digital officer, refers to innovation as the centerpiece of every organization. He cautioned, though, that the challenge of innovation does not really lie on small companies but on bigger, established ones.

鈥淲hether we like it or not, we are already [in the digital age]. The question as an organization is how much we digitize our companies,鈥� he said, adding that several corporations have to go through so-called 鈥渄igital maturity鈥� by first assessing upon themselves where they are now and where to go further. This, as Mr. Tan pointed out that the tools of today will not necessarily be the tools of tomorrow.

Meanwhile, McDonald鈥檚 Ms. Torres gave six pointers 鈥� agility, authenticity, experience, intimacy, omni channel, and utility 鈥� to guide businesses as they embark on the journey towards disruption.

鈥淒isruption probably means changing your own mindset. Companies actually do not change, people do. Your competition is yourself against becoming unwilling and uncapable of change,鈥� she said.

Disruptive technologies may do pose as challenges for businesses in every sector, but for those who have the will to change to stay relevant in these ever-changing times, disruption is an ally. As Mr. Leviste said, disruption should not be prevented, and that 鈥渋f you can鈥檛 beat them, you should join them.鈥�

Jennibeth B. Reforsado worked as a proofreader for 大象传媒 for three years. She is now a writer-in-training for the Special Features Section.

鈥淭hey should be scared.鈥�

That was how a March 6 story published on Fortune magazine鈥檚 Web site described the effects of streaming/video-on-demand services (VOD) like Netflix towards networks and cable television in the United States.

It cited a study from MofettNathanson (Is Netflix Killing TV?) which revealed that Netflix and its rivals are slowly 鈥� but surely 鈥� eating away TV audiences, making them turn away from their flat screens and onto their laptops and mobile devices as in 2015. 鈥淸R]oughly half of the 3% overall decline in US TV viewing鈥� can be blamed squarely on Netflix鈥檚 shoulders, the study said.

The streaming giant鈥檚 continuous release of original and licensed content, is giving audiences 鈥渕ore and more viewing options for viewers who might otherwise be surfing hundreds of cable channels,鈥� the study added. 鈥淗ours of video streamed on Netflix will continue to increase in coming years, growing to represent 14% of overall TV viewership by 2020.鈥�

As of April, Netflix is available in 190 countries and has 81 million subscribers, 46 million of which are in the US.

When Netflix went live in the Philippines 鈥� and more than a hundred markets simultaneously, on January 6 鈥� analysts predicted that cable TV companies will take a hit since their content is similarly offered by the global streaming service. Netflix鈥檚 entry is 鈥渆xpected to pull Filipinos away from cable television,鈥� said an article published by 大象传媒聽the day after the Netflix launch.

However, the players themselves 鈥� streaming services, cable companies, and local television networks 鈥� think that the Philippines will not so easily follow the US lead and will, in fact, build a complementary relationship in a market that has so much room for growth.

鈥淚 personally think Asia will evolve differently than North America. And here鈥檚 why: in the Philippines today, great broadcast content 鈥� take SkyCable for example or pay TV 鈥� is only available in two million households and there are 20 million households so there鈥檚 plenty of room for both linear channels to grow as well as us,鈥� Peter Bithos, HOOQ CEO, told 大象传媒 in an interview.

The Singapore-based service, which launched in February last year, boasts of more than 180,000 paying subscribers in the country alone. It is currently available in Thailand, India, and Indonesia and is looking to expand in South America and Africa.

Pay TV, streaming to grow together but up to a point

Both ecosystems 鈥� streaming and cable 鈥� will grow at the same time in Asia, Mr. Bithos said, citing the region鈥檚 economy, which is growing much faster than North America or Europe.

His view is shared by David Goldstein, the Asia head of iflix, a similar service launched a few months after HOOQ. It has 1.5 million users and seeks to expand in Africa and the Middle East.

iflix users鈥� peak viewership times are 鈥渄ifferent than broadcast,鈥� Mr. Goldtein said. 鈥淪o [broadcast] has their primetime from maybe 6:00 p.m. to 9:00 p.m., we actually peak from 9:00 p.m. to 1:00 a.m. So it鈥檚 very complementary.鈥�

According to RTL CBS Asia Entertainment Network 鈥� an English language entertainment channel serving Southeast Asia that was launched in September 2013 鈥� its Nielsen ratings in the Philippines increased for the past six months, despite the entry of video streaming platforms.

鈥淓xisting in the same environment, we鈥檝e seen our Nielsen rankings rise in the last six months with viewership increasing three times over,鈥� said Rene Esguerra, Philippine country head of RTL CBS Entertainment, a joint venture between RTL Group and CBS Studios International.

Exclusive TV events like award shows aired via satellite and 鈥渨atch-a-thons of popular series such as House of Cards (a Netflix original)鈥� are driving viewers to the network, Mr. Esguerra said. Talent shows such as Britain鈥檚 Got Talent, The X Factor UK, among others, also helped viewership numbers, especially since Filipinos love talent shows, he added.

However, the environment might change in the next five years.

By that time, video streaming services might already make a dent in Filipino cable and local television networks, Mr. Bithos said.

But for Dingdong L. Caharian, general manager and senior vice-president of GMA New Media, Inc., it may still be too early to tell.

Although the rise in viewership of on-demand services is inevitable, 鈥渨e have yet to determine whether the proliferation of聽 VOD services in the Philippines will affect traditional TV viewership negatively,鈥� Mr. Caharian said.

The platform鈥檚 鈥渧iability is largely hinged on the speed and affordability of internet access in the country.聽We have yet to see it making a dent, so to speak,鈥� he added. (Content from local networks such as GMA, ABS-CBN, and TV5 are currently available in both HOOQ and iflix, though ABS-CBN maintains a separate catch-up service called iWantTV).

Mr. Goldstein echoed Mr. Caharian鈥檚 sentiment saying, 鈥淚 think it comes down to the availability of infrastructure in the country 鈥� if it鈥檚 consistent. It鈥檚 challenging to get it all the way across the Philippines whereas Filipinos are used to watching TV.鈥�

鈥淚 actually equate VOD

to the evolution from fixed to mobile. Original pay TV was delivering content to the household, as for us, we鈥檙e delivering content to the individual and we鈥檙e going the same penetration growth,鈥� he added.

Netflix, ABS-CBN, and TV5 declined to comment on the matter.

Content is king

Without any clear winners 鈥� or losers 鈥� so far in the evolving battleground, all players nevertheless agreed that whoever has the best content will win.

鈥淎t the end of the day, it鈥檚 still all about content,鈥� Mr. Esguerra said, adding that VOD and pay TV are just platforms for delivery.

Mr. Goldstein added: 鈥淲hat enabled to content to become king is that networks now allow a decent user experience (the speeds of the mobile networks, availability of Wi-Fi, penetration of home broadband). You can actually deliver a decent user experience over the Internet.鈥�

Following the lead of Netflix with its cache of original productions that swept its market by storm (House of Cards, Orange is the New Black, among others) VODs operating in the Philippines have also started creating their own, with HOOQ recently announcing a six-episode mini-series based on Erik Matti鈥檚 2013 film about convicts-turned-assassins, On the Job.

The series is slated for release in the fourth quarter of the year.

iflix revealed that it is planning to do the same next year just as soon as they find the right content.

Similarly, Netflix is also preparing more original Asian productions, a CTV news report said.

However, both HOOQ and iflix don鈥檛 consider Netflix a competitor.

After all, the service 鈥渋s more expensive than us,鈥� offers 鈥渓ess local content鈥� and is becoming 鈥渕ore [into] creating content and then distributing on their network, whereas we鈥檙e an aggregator of content for emerging markets and it鈥檚 very customized market to market,鈥� said Mr. Goldstein.

Netflix鈥檚 basic plan starts at P370 a month (the premium plan is at P550/month) while iflix and HOOQ subscriptions are at P129 and P149, respectively.

Whether Netflix makes it big in the Philippines or not, it鈥檚 not going to break its business, said HOOQ鈥檚 Bithos, adding that niches have yet to be exploited.

For his part, Mr. Goldstein sees that the platform still has room for many other players.

Video streaming services 鈥渁re becoming individual products,鈥� he said. 鈥淭here鈥檚 so many varying tastes so you can have many types of OTTs (over-the-top content, another name for VODs) to serve the different needs of people.鈥�

Zsarlene B. Chua (@zsazsa_chua on Twitter) covers travel and entertainment for 叠耻蝉颈苍别蝉蝉奥辞谤濒诲鈥檚 Arts and Leisure section. 大象传媒 Researcher DINDO F. PARAGAS (@dindo_paragas on Twitter) helped provide data to the infographics.

By Jennibeth B. Reforsado

Cora, a midwife employed in a rural health unit, receives patients on regular days.

But for three days every week, she does the opposite: she travels to far-flung villages to check on those who need medical attention.

Most of the time she has to deal with huge amounts of paperwork and occasionally gets frustrated by bureaucratic procedures involved in transferring patients to hospitals more equipped to treat them.

Cora鈥檚 story is a reenactment of a narrative featured in a promotional short film produced by a telecommunications company for its digital health product.

Based on real-life experiences, the film vividly depicts the regular challenges a rural health worker encounters in a traditional health care setting. However, with the country鈥檚 rapidly increasing development and adoption of digital technologies in the medical field, this, hopefully, may soon be a thing of the past.

More patients going digital

Multinational consulting firm McKinsey & Company, in its 鈥淗ealthcare鈥檚 digital future鈥� report published in July 2014, recognized that patients worldwide are even becoming more and more comfortable in using digital health care services. It advised that health care systems, payors, and providers should therefore go 鈥渁ll in鈥� on their digital strategies.

Local key health players, both in public and private sectors, have been taking this suggestion to heart and have long deployed several technologies that are starting to make an impact.

鈥淸There already are] databases like Watching Over Mothers and Babies, [which] curates maternal and neonatal morbidity and mortality data; RxBox, a portable telehealth device [that] allows health care professionals in remote areas access to specialists by measuring patient vital signs and transmitting them wirelessly; [and] e-Hatid, an android-run application [that] allows health care professionals in [local government units] to access health information,鈥� Dr. Maria Minerva P. Calimag, immediate past president of the Philippine Medical Association, said in an e-mail.

She added that many patients, without citing specific figures, have been benefited by these digital health initiatives.

The government, through the Department of Health (DoH) and the Department of Science and Technology (DoST), has put in place the 鈥淧hilippines eHealth Strategic Framework and Plan鈥� to serve as the road map for the adoption in health care of these digital technologies. The two government agencies also inked a Joint National Governance on e-Health to achieve the set outcomes of the e-Health framework.

In implementing their goals, closer collaboration with private companies has been established.

Cloud-based medical records allow easy access

In 2010, DoH endorsed to the rural health units and municipal health offices in Iloilo and Cebu the cloud-based electronic medical record (EMR) system developed by Smart Communications, Inc.

Secured Health Information Network Exchange or SHINE, currently rebranded as SHINE OS+ to signify its open-source nature, is Smart Communications foray into digital health that can be used by health care providers. The company has recently partnered with the Ateneo Javascript Wireless Competency Center to further develop the software.

Offered for free and can be accessed in offline mode in case of weak mobile connections, the program has so far tallied 98,179 patient records and has benefited 518 end-users and 182 facilities in the provinces of Iloilo, Cebu, Bacolod, Rizal, and some parts of Metro Manila.

Jill M. Lava, manager of Community Partnerships, Public Affairs Group of Smart Communications, believes the initiative has thus far attained its goal based on the patronage it has attracted.

鈥淚n my opinion, it has made significant impact to the smaller communities that have shifted from manual record-keeping of patients to the said cloud-based EMR that allowed automatic storage of information of its community members for easy access in times of emergencies, calamities, or theft,鈥� she said in a June interview. She added that it has also helped LGUs by providing them with speedier access to health data for the improvement of health conditions in their communities.

One SHINE program partner concurs.

Dr. Ianne Jireh Ramos-Ca帽izares, municipal health officer of Samboan, Cebu under the Doctors to the Barrios program of DoH, recognizes the many advantages that SHINE has been able to provide her, particularly in efficiently tracking and monitoring her patients.

鈥淪HINE is indeed very useful. We鈥檝e been telling our patients about it and they, too, are amazed by its potentials,鈥� she said in a phone interview.

Challenges of digital health care

SHINE and the many other existing digital health innovations have made significant inroads in revolutionizing health care in the country but there鈥檚 no denying that roadblocks exist.

Dr. Ca帽izares, for one, referred to the Philippine Health Information Exchange (PHIE) not being implemented yet.

PHIE, according to Dr. Calimag of PMA, is intended to archive big data on health in the country and will be made available for viewing by authorized health care providers. The memorandum of agreement for PHIE was signed in March last year through collaboration between DoST, the Philippine Council for Health Research and Development, DoH, the Philippine Health Insurance Commission, and the Information Communications and Technology Office of DoST.

鈥淭he initiative hopes to provide accurate and reliable real-time data that eliminates duplication and allows for standardization, which will serve the purpose of research for health policy generation and budget allocation especially for diseases with the highest burden. With the PHIE in place, patients can transfer from one hospital to another without having to bring hard copies of his laboratory results with him. Information systems in laboratories and pharmacies will communicate with electronic medical records in hospitals to avoid duplication of patient records,鈥� Dr. Calimag explained.

She also cited that the implementing rules and regulations of the signed Joint Administrative Order on the Implementation of the PHIE and the Joint Administrative Order on the Privacy Implementation Guidelines are still being drafted. The National Telehealth Bill, which has been revised many times, is also pending in Senate and Congress.

Smart Communications鈥� Ms. Lava also considered the lack of clear and solid government policies, guidelines, and protocols around e-Health as one of the challenges that hamper the mainstream use of digital technologies in health care.

Apart from that, she added that, with SHINE, they still have to cope with technical illiteracy as there are doctors, particularly of the older generation, who are quite hesitant to learn new technology. The limited hardware and software infrastructure, including network, also remains one of their problems.

The Philippines still has a long way to go toward achieving more efficient and effective health systems through digital health, but it is definitely off to a good start.

Jennibeth B. Reforsado worked as a proofreader for 大象传媒 for three years. She is now a writer-in-training for the Special Features Section.