digital innovation for msme development › wp-content › uploads › 2020 › 10 ›...
TRANSCRIPT
-
DR. RAFAELITA M. ALDABAUndersecretary
Competitiveness & Innovation GroupABAC PH Digital Innovation Forum, 21 October 2020
Digital Innovation for MSME Development
Empowering MSMEs to Connect to the World
-
Smart Manufacturing Survey of Establishments
Planning & scheduling
Manufacturing activity
management
Equipment connectivity &
data management
Material management & handling
Equipment maintenance
Shop floor visibility
Quality Cybersecurity
• Survey Tool developed by Manufacturing Enterprise Solutions Association (www.mesa.org)• Assess technology utilization status of manufacturing firms dimensions • Understand where firms are in terms of Industry 4.0 preparedness
-
SMART Manufacturing Maturity Index (SMMI)
PurelyManual
With Spreadsheet Management
Stand-alone DB Management System with
Legacy Applications
Mostly Manufacturing
Execution System used in
this Layer
Industry 4.0: MES + IIoT, Big Data, Machine
Learning, Robotics, etcLEVEL 0
LEVEL 1
LEVEL 2
LEVEL 3
LEVEL 4
-
Total Respondents: 144 Firms 79% or 114 respondents have Very Low or Low Technology Utilization
Rev
enue
(Phi
lippi
ne P
eso)
Dimension Score (0 – 40)
1
10
100
1,000
10,000
100,000
1,000,000
10,000,000
100,000,000
1,000,000,000
10,000,000,000
100,000,000,000
1,000,000,000,000
(3,000,000) (2 ,000,000) (1 ,000,000)
-0 5 10 15 20 25 30 35 40
Micro Small Medium Large
No Technology(6)
Very Low(57)
Low(53)
High(17)
Very High(7)
79% of the respondents are in levels from very low to low technology utilization
-
40% of firm respondents are in Level 1, 38% in Level 2
Source: DTI Survey on the Technology Utilization Status of Manufacturing Companies in the Philippines
13%
17%
4%
20%
67%
25%
65%
40%
48%
30%
38%
13%
38%
24%
13%
4%
13%
8%
4%
13%
5%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Large
Medium
Small
Micro
All Categories
Level 0 Level 1 Level 2 Level 3 Level 4
-
Cybersecurity, Quality, and Manufacturing Activity Management: highest tech utilization
Legend: 4 (Highest) =High Technology Utilization, 0 (Lowest) =No Technology Utilization
-
Large manufacturers recorded the highest technology utilization across all manufacturing
dimensions
Large enterprises in highly urbanized areas have the highest technology utilization
Legend: 4 (Highest) =High Technology Utilization, 0 (Lowest) =No Technology Utilization
Firms with High Technology Utilization concentrated in NCR, Region 3, Region IVA
Digital divide may widen existing regional economic development imbalances in the country
-
Opportunities and Challenges in Transforming to Industry4.0 Technologies
Source: DTI Survey on the Technology Utilization Status of Manufacturing Companies in the Philippines
77%
67%
microenterprises are familiar with Industry 4.0
small and medium enterprises are familiar with Industry 4.0
83%largeenterprises are familiar with Industry 4.0
Primary Considerations for Shifting to Industry 4.0
28%Improvement in Productivity and Competitiveness
13%Innovation and
Technology Advancement
13%Cost of
Investment & Funding
10%Market
Conditions
7%Others
29%Not Considering/
Unfamiliar
Barriers to Industry 4.0 Transformation
#1Lack of financial
capability
#2Unfamiliar/Not Considering
#3Other
Company Reasons
#4Market
Conditions
#5Lack of Skills, Knowledge,
and Expertise
#6Poor Digital
Infrastructure
-
The Philippine MSME Landscape35.7%
2018 MSME Contribution to Value Added
63.2%
2018 MSME Employment Share
MSME CONTRIBUTION (%)
Micro Small MediumEnterprises 88.5 10.6 0.5Employment 28.9 27.0 7.3
99.5%99.5%Of Philippine Establishment
are MSME
(998 342 establishment)
SECTORAL DISTRIBUTION
123
Wholesale & Retail Trade 46.3%Establishment: 461,765 (46.3%)Employment: 2,040,774 (35.7%)
Accommodation & Food Service 14.5%Establishment: 144,535 (14.5%)Employment: 882,455 (15.4%)
Manufacturing 11.7%Establishment: 116,335 (11.7%)Employment: 767,831 (13.4%)
Source: BSMED 2018 Philippine MSME Statistics
-
INDUSTRY 4.0READINESSINITIATIVES
SME ACADEMY INDUSTRY 4.0 PILOT FACTORYINDUSTRY 4.0 ROADMAPS
UPSKILLING & RESKILLING OF WORKFORCE
PHILIPPINES AS ANAI CENTER
-
Securing Manufacturing Revitalization & Transformation (SMaRT)
GUIDING PRINCIPLES
WHAT TO SUPPORT?
SELECTION CRITERIA AND GUIDELINES
HOW TO SUPPORT
Performance Based
Time-Bound
Targeted
Transparent
Industry 4.0 Adoption
Product Upgrades
New Business Models
Service Upgrades Process Upgrades
Soft LoansGrants
Incentives, Vouchers, Tariffs
Other Fiscal and Non-Fiscal Support
Intellectual Property Protection
Standards Subsidies
Global Value Chain Upgrading
Adoption of Industry 4.0 technologies to catalyze manufacturing growth &
the economy
Commercialization of Innovation and R&D
Industrial Development in Rural Areas, new industries,
clusters & activities to address supply/value chains
gaps
-
Innovating and Preparing for the New Normal
The DTI moved to use Digital Platforms and E-Commerce Technology to amplify its
Promotional Fairs sharing and responding more information to potential buyers and the public.
DTI Programs aimed at equipping MSMEs for the New Normal
Virtual Promotions Strengthening Local Businesses
“Buy Local, Go Lokal” campaign supports Philippine MSMEs by shifting buying patterns
towards consumption and purchase of Philippine fresh produce and manufactured goods.
Transforming Skills and Training
Webinars one-commerce to help MSMEs transform their
businesses digitally.
ASEAN SME Academy aims to grow and compete regionally and internationally
-
With Industry 4.0, industries can be made more efficient & scalable, leapfrog to inclusive, resilient,
& sustainable industrial development
Embrace Industry 4.0 to strengthen competitiveness & sustainability of industries
Adapt programs to meet demand for talent created by Industry 4.0
Innovate, integrate into digital economy, industry clusters & global collaboration
Government-academe-industry collaboration
As we shift towards Industry 4.0, we need to ensure that no enterprise especially MSMEs or region is left behind.
-
THANK YOU