Significant event for innovation in Technology

There’s a lot of significant events in society that has a contribution on the innovation and development of technologies. These events either local events has a contribution on technology innovations in that locality, the same way in national or international events has something to do in technology innovations in national or worldwide scope. Innovation in technology can be defined as the improvement or development of such technology either existing or newly invented. When we say technology innovation, we are referring broadly in terms of technology since it covers different fields. With this innovation in technology might differ from any other fields such as its application in Medical Technology, Agriculture, Engineering and Architecture, Education, Business, etc.

Technology innovation in the Philippines, as we have observed is in its continuous growth though we are found to be a year behind compare with highly technological and developing countries such as Japan. In my own understanding one of the factors that contribute to its continuous innovation is the increasing number of foreign investors that continue to invest in the country.

Philippine is considered to be an attractive investment destination as it has a strategic location, skilled and highly trainable human resources, a stable democratic environment and free enterprise economy. Sustainable resources found in the Philippines attract many foreign investors in different fields based on business concepts.

As stated in "How to Invest in the Philippines" by PricewaterhouseCoopers Philippines, the Philippine economic environment, in its general market structure, the Philippines adheres to the principle of free enterprise and recognizes the indispensable role of the private sector in the economic development of the country. It has been observed that after the Asian financial crisis in 1997, the country started to recover ahead of other countries in Asia. This is because of continued political stability, prudent monetary and fiscal measures; bolder moves toward deregulation, liberalization and privatization and improved infrastructure development. This is somewhat attracts foreign investors to invest their business in the country. And it foster economic development in the country as well as leads to innovation and development of technologies used.


Foreign investors are commonly known to own big companies and business establishments and uses high technology and facilities. With foreign investors that extended their reach here in the countries has a big significant on the development of technologies. They have influence us in the kind of technology they have by sending it here to be used in their business, and eventually it’s been applied in any other business foreign or Filipino owned.

One of those technologies that have used and developed because of foreign investments in the country is the communication. Big businesses are very concerned of its way of communication cause for them good communication within their establishments or workplace is a good business strategy. The innovation in communication comes up after. As businesses in the country continue to grow locally and internationally, the need for a good and secure communication is in demand for each business. From that, the continuous innovation in communication and information sharing is established and has considered as the necessity not only in business, as well as in education and any other form of transaction at our present time. Even before telecommunication companies and providers make it possible to provide these businesses adequate communication links within the country and other country around the world, and later on these companies are also offer similar services in all urban centers, that’s why cellular phones and paging systems have substantially augmented existing landlines. According also to PricewaterhouseCoopers Philippines, the number of cellular mobile telephone service subscribers had increased by more than 400% since 1996 with around 6.5 million subscribers accounted for as of the end of 2000. From that, we can have the idea of how much its increase in the current time. Cell phones nowadays have so many additional features making you connected in so many ways. Video cameras, music player, are just a few features you can enjoy in your current cell phones.

Its continuous innovation and development later become the innovation and development of Information and Communication Technology (ICT). There is an increasing recognition of ICT potential and contribution it the market place. It has been a part of the success in every businesses, and one that has a very wide range and scope in the business world. One of its major contribution is it enables people and enterprises to capture economic opportunities by increasing process efficiency, promoting participation in expanded economic networks and creating opportunities for employment. The following are the innovations that take place in Information and Communication Technology, taken from the paper “Information and Communication Technology and Microfinance: Options for Mongolia, Innovations of Information and Communication Technology” by Gaamaa Hishigsuren.

(Gaamaa Hishigsuren 2006) In relation to microfinance the use of ICT began with the arrival of the Palm Pilot (or called, Personal Digital Assistant – PDA). These pocket computers allowed loan officers to fill out forms containing customer information and provide an initial indication of whether loan would be approved or not in the field, thereby automating the information gathering process (Silva, 2002). In a series of articles by Steve Whelan, for The Consultative Group to Assist the Poorest (CGAP), talks of the various technological devices that are currently being used around the world (Whelan, 2003). These articles highlight devices such as automated teller machines (ATMs), interactive voice response technology (IVRs), smart cards and personal digital assistants (PDAs).

Below are the most commonly used Information and Communication Technology applications used in Microfinance:

Automated Teller Machines (ATMs) or Point of Sales (POS) devices– conduct many banking transactions that would otherwise require staff attention: they furnish account information, accept deposits, draw down on pre-approved loans and transfer funds.

Interactive voice response (IVR) technology - refers to examples like using phones (either mobile or stationary phones) to check an account balance, make transfers, learn about products, and find the nearest branch location and its office hours. This saves time both for the clients and staff.
Internet banking –clients can make the same transactions as with phone banking (checking their account balance, making transfers, learning about products and finding the nearest branch location and its office hours) on the Internet.

Personal digital assistant (PDA) – can be used by loan officers to process loan applications by using the preset credit scoring model, to review a client’s historical data, and to monitor loan performance by reviewing the list of borrowers and their loan repayment status. Virtually all client data and client visit records are stored electronically and are immediately available in this small device (like a palm pilot).

Management information system (MIS): - provides computerized data processing for management decision making; it is used primarily for portfolio management, accounting and financial performance management.

Credit scoring – analyzes historical client data, identifies links between client characteristics and behavior; and assumes those links will persist to predict how clients will act. The technology can help a microfinance institution analyze how its clients have behaved in the past to make more reliable loan application decisions, devise more effective collection strategies, better target marketing efforts and increase client retention.

Complimentary Devices:

Smart cards – can be used for financial services, such as managing savings accounts, disbursing loans, or making transfers. There are different forms of personal identification, such as biometric technology and fingerprinting. Smart cards function like an electronic passbook. There is also a lower cost card, which operates through a magnetic strip on the reverse side of the card. A smart card differs in that it operates through more expensive chips that can store information offline on the embedded chips. Both cards are used in conjunction with ATMs or POS.

Biometric technology – measures an individual’s unique physical or behavioral characteristics, voice pattern and gait, to recognize and confirm identity. This is a supplementary technology used with ATMs or POS.

Automatic Teller Machines
Hirschland (2003) observes that ATMs provide 24-hour access to speedy transactions. ATMs, supplemented by smart cards and debit cards can provide flexible payment options and more convenient access to client accounts. They can also reduce branch infrastructure and employee costs, and facilitate financial services in areas with poor communications and electricity supplies. In particular, staff of MFIs could be relieved of some mundane functions like processing withdrawals and fund transfer over the counter, and rather, focus on personalized services. When fully utilized, ATMs can be used for balance inquiry, cash withdrawal, and transfer of funds, bill payments and making deposits.

As a summary, the continuous number of foreign investments in the country leads to adopting and application of foreign technologies, then its innovation to cater the needs and demands of these businesses just for instance the increasing need of communication links to their consumer and clients. As it is being used and adopt by foreign own companies in the country, Filipino owned business has to acquire and used it also to excel in the business world and cannot be left behind by foreign investor. As a part of business strategy, they need to have a good and secure communication links that make them connected to their clients and employees, in any part of the country or abroad. From that, communication providers take their part in making these possible. Innovation on communication takes place, and as we observed it changes or innovates every year (if I’m not mistaken). Then, innovation in information and communication technology (ICT), have extended the reach to a good and secure communication to be applied and used not only on business but in other fields even people and enterprises in isolated communities. As we all know, businesses today, despite it scale (local, multinational, international) have introduced to automation of their business process and transaction. Automation uncovered the manual business process, making them capable to process transaction in a short period of time with 99% accuracy and meet their client’s highest expectations. Nowadays, worldwide businesses systems have been centralized making all their branches around the world to be connected, plus it can be viewed by authorized persons anywhere as long as internet connection is available (as of now, there just few places in the world that don’t have a connection).

Cool Cool Cool

References:
http://www.philippinebusiness.com.ph/guide/prc00b.htm
http://www.adbi.org/discussion-paper/2006/02/16/1685.ict.microfinance.mongolia/innovations.of.information.and.communication.technology/