A Call to Abandon Nukes on Chernobyl Anniversary

Greenpeace* today marked the 25th anniversary of the Chernobyl nuclear disaster with a call to governments of Southeast Asia to abandon all plans of developing nuclear power plants in the region to ensure the safety of its citizens. Greenpeace is calling on Philippine President Noynoy Aquino to invest heavily in energy efficiency and harness clean, safe renewable energies to meet the country’s energy requirements instead of dirty coal and dangerous nuclear energy.

“Chernobyl is to date the world’s worst civilian nuclear accident, but the unfolding disaster in Fukushima, Japan, demonstrates that no amount of technological sophistication or safety culture can prepare any country or its people for the inherent dangers of nuclear energy. Like in Chernobyl, the Fukushima incident has shown that we cannot control or manage nuclear energy and its fallout,” said Amalie Obusan, Greenpeace Southeast Asia Climate and Energy Campaigner.

A quarter of a century after Chernobyl, the situation in the area surrounding the Chernobyl reactor shows few signs of improvement. Widespread contamination, constant resettlements and long-term health impacts still pose threats to communities. And, despite ‘modernizations’, the root causes of nuclear technology’s vulnerability to accidents remain the same: unexpected technological failures, operator errors, poor safety standards due to political and economic pressures, lack of transparency in the industry as a whole, and natural disasters. 

However, the Philippine Energy Plan for 2009-2030 still contains options for the adoption of nuclear power in the country. Under the Energy Reform Agenda of the current administration, part of the DOE’s thrusts for 2013-2016 is to strengthen policy researches and studies in aid of executive and legislative action that will facilitate the operation of a 2,000-megawatt nuclear power plant in 2025.

Strong public resistance in 2008 derailed plans to revive the mothballed Bataan Nuclear Power Plant.  But the Philippines, as with rest of the ASEAN countries, despite their vulnerability to natural disasters in the Pacific “ring of fire” and their general lack of disaster preparedness, have not yet ruled out nuclear power and the great costs and risks it entails.

Costs to manage the Chernobyl disaster which up to now continues to drain Ukraine and Europe millions of Euro annually, is estimated to cost more than 13 times the Philippine government’s budget for 2011. The disaster also severely contaminated between 125,000 and 150,000 square kilometres (equivalent to around half the Philippines’ total land area) in Belarus, Russia and the Ukraine. A Greenpeace-commissioned study based on Belarus national cancer statistics estimated that approximately 270,000 cancers and 93,000 fatal cancer cases will be caused by Chernobyl.

Greenpeace believes that to secure a safe and better future, countries must choose renewable energy over nuclear power. Greenpeace has long argued that renewable energy has the potential to meet a substantial share of our future energy demand. The Energy [R]evolution scenario details how – combined with energy efficiency and a transformed electricity grid – renewable energy could produce 95% of electricity worldwide by 2050. Other studies have made predictions for different time frames or regions. PricewaterhouseCoopers, for example, predicts that Europe and North Africa could run on 100% renewable energy by 2050.

*Greenpeace is an independent global campaigning organization that acts to change attitudes and behavior to protect and conserve the environment and to promote peace.

Case Study: Advanced Science and Technology Institute (Part 3)

INSIGHTS AND ANALYSIS

This section presents the insights, analysis, and recommendations of the group based on the data gathered about ASTI focused into a number of key focal points.

ASTI as a Technology Integrator

The Advanced Science and Technology Institute is currently tasked with a mandate to conduct scientific research and development in the advanced fields of information and communications technology and microelectronics. In terms of ICT, ASTI has evolved into a technology integrator that brings together different applications to address particular needs of partner organizations. In this regard, the actual research and development work, if any, is limited to the customization of existing ICT software such as open source platforms and applications to perform specific tasks. This becomes a challenge for the organization because creating new technologies that can be considered true research and development, particularly in the open-source software industry, is a highly competitive environment with its own set of difficulties in creating patentable or proprietary technologies. In other words, by utilizing vast amounts of resources in this field of endeavor, what competitive advantage does ASTI bring that is not already offered by other competing private software companies?

A Shift in Focal Technologies

Currently, majority of ASTI’s efforts focus on information and communications technologies and microelectronics as specified by its current mandate. These focus technologies have been in place for the most part of ASTI’s operations. Both technologies, particularly microelectronics, are technologies that have had sufficient time to mature thus allowing many major players to create highly advanced and specialized technologies. Today, the world’s largest computer chip manufacturers Intel and AMD have accumulated vast amounts of resources and have progressed in their research and development to the point that local technological catch-up by ASTI may not be as feasible, much less competitive unless massive amounts of resources are poured into it without even any guarantees of success and, more importantly, to what end?

At this point, ASTI is already heavily invested in these technologies, but the speed at which the rest of the world is moving forward with these technologies relative to them is rapidly making these investments obsolete. Tough questions may sooner or later begin to surface on whether or not to continue despite little chance for creating new breakthroughs, or starting over with something new.

Given this situation, where moving forward with pushing for further research and development by ASTI in microelectronics as well as for the majority of ICT seems redundant, there may be a need for the organization to reevaluate the current technologies that it is focusing on, even to the point of examining the entire system for focal technology selection and its lifecycle. This calls for an examination of the existing technology management system and infrastructure which can potentially make the organization more flexible going forward. New major investments will have to be made but first, the technology and project selection criteria will have to consider the risks involved in exploring new ventures.

One-Sided International Collaboration

As a developing nation, one-sided international collaboration in terms of technology transfer and acquisition is something to be expected, particularly in the early stages of the research and development of a specific technology. As previously mentioned, ICT and microelectronics are technologies that are generally considered mature technologies in their present state. The private sector is the primary driver for technological growth in these industries, each group developing within its own area of expertise and from their contributing to the general body of knowledge through commercial activities. Along the way, various forms of intellectual property have been created and established in these industries and have strengthened the leadership positions of the innovators.

The challenge here, and this is not a problem unique to ASTI, is that as technological followers, there is not much room for large contributions to the industry in the first place since these have already been established by the leaders. There is room to contribute in narrowed specific niche focal areas of these technologies but since the industry leaders are not only technological leaders but also commercial ones, it is more often than not, their projects and areas of expertise that generate market impact and appeal. Other fields which may still be left unexplored may not be as economically rewarding if one does not have adequate resources for investment not only in research and development, but also in product sales and marketing. In this regard, ASTI faces a massive challenge if it wishes to pursue new frontiers within ICT and microelectronics. The economic and intellectual resources requirements to create breakthroughs in the industry that might be considered worthwhile for two-way international collaboration may not be within its capabilities.

Open Innovation and Intellectual Property Pooling

Open-source software is an area well-positioned for growth for years to come should ASTI decide to pursue incremental innovations either related to or built on top of existing established platforms. Software development is a potentially huge market which is generally not as resource intensive as other R&D areas. Open-source software is currently expanding outside personal computing and moving into the space of mobile computing and communications and even general consumer electronics. These are areas of high interest for many private sector firms and there are relatively little barriers for entry.

As a technology integrator, ASTI has already begun to immerse itself in these open technologies and all that may be needed to push for a more focused approach towards research and development in this field might come in the form of specialized custom projects that take advantage of resources that are already available. This industry however, is a highly commercial one. In order to keep pace with competition from both the private and public sector, locally and internationally, commercialization will potentially play an important role in determining whether or not ASTI will succeed or not should it decide to pursue a focal project in open-source software.

Work and investments in these open-source technologies can also lead to increased international participation and general intellectual property pooling. These steps can pave the way for future local contributions to the general knowledge pool and potentially an increase in locally contributed patents related to them.

Long Term Project Issues

Leadership continues to play a particularly important role in the potential selection long-term projects that ASTI may consider pursuing. Based on past results, a vast majority of completed projects have been short-term ones based on the prevailing technologies during the past eras at which they were conceptualized. Though there is always an external influence from the current administration and the leadership at the Department of Science and Technology towards the types of projects pursued by ASTI the burden of actual research and development and project selection ultimately falls on the organization and whether or not it decides to pursue short-term or long-term projects is subject to many different factors such as social and financial ones.

The challenge for long-term projects is that although they hold a faint promise of developing technological breakthroughs, committing financial and human resources without any immediate potential returns is always a tough sell for any organization. In this case, it is a particularly tougher one for a government organization whose results are broken down into which administration was present during the time of the success.

In terms of the current focal technologies of ICT and microelectronics, the questions related to the maturity of the technology and the overall competitiveness of the industry becomes a critical issue that must be addressed when considering any long term approach to development. Is there a future for long term research projects to still be conducted in ICT or microelectronics given the current state of the industry and ASTI’s own limitations? Should new long term plans be made in consideration of new and emerging technologies?

A Triple-Helix Approach

As a sub-organization within the Department of Science and Technology, ASTI functions as a specialized government unit for research and development currently for information and communications technologies and for microelectronics. It’s proximity to the University of the Philippines as well as its ties with various key figures in the private sector positions it well as an organization that can leverage both private and educational resources to bolster its own efforts.

Past efforts such as the production and sale of an ultra-low cost digital multimeter in partnership with Alexan, a private sector electronics components seller, and the ASTI-PREGINET project, an education based service that allows state universities and colleges, government organizations, and research institutions to collaborate over a dedicated network illustrate, at least in concept, the potential for growth in research and development through various partnerships.

Case Study: Advanced Science and Technology Institute (Part 2)

R&D MANAGEMENT

ASTI’s R&D management is driven by and aligned with the national R&D policies as set by the DOST and the Medium-Term Philippine Development Plan (MTPDP Chapter 19). Through the direction of the Secretary of DOST, the ASTI Director aligns ASTI projects per DOST priorities. DOST allocates the budget and specifies the general focal area for R&D.

R&D PROJECT SELECTION, EXECUTION AND EVALUATION

R&D project selection is dependent on the priority projects of DOST Secretary and influenced by the various councils within the Department. The Technical Core Group, headed by the Director, analyses these science and technology (S&T) priorities and proposes projects that support the current national S&T initiatives. ASTI goes through 20 concurrent projects on the average annually.

ASTI projects go through a standard process in terms of R&D execution. ASTI processes are documented and enjoy a quality management certification (ISO9001:2000) from Certification International Philippines. The agency successfully passed its last surveillance audit conducted last February 2010.

ASTI projects are applied technology projects – no new knowledge or technology is discovered or formulated; rather, the agency integrates systems and tools for various applications. This “mash up” development approach lends ASTI a system integrator character.

Project status is reported during regular Technology Core Group meetings. Ongoing projects, e.g., Preginet, Bayanihan, are evaluated and audited at regular intervals for go/no-go decisions. Projects are considered complete once they are ready to be deployed to ASTI customer/stakeholder.

RESOURCE ALLOCATION

The 2011 national budget of the Philippines, also known as the General Appropriations Act of 2011 was signed into law by President Benigno Aquino III last 28th of December 2010. The said national budget is 6.8 percent higher than the 2010 budget of PhP1.540 trillion (See Figure 1). It represents 18.2 percent of the projected Gross Domestic Product (GDP) this year. The approved budget assumes revenues of PhP1.41 trillion, or 15.6 percent of GDP in 2011, and disbursements of PhP1.70 trillion, or 18.8 percent of GDP, lower than the 19.5 percent last year3.

This year, the Department of Science and Technology were allocated at PhP2.264 billion (See Figure 2). The budget is a 54 percent decrease from the 2010 budget of PhP4.86 billion during the Arroyo Administration. From the current DOST budget, 2.4 percent of it was allocated to the Advanced Science and Technology Institute (ASTI) whose main thrust is in the Information and Communication Technology (ICT), one of DOST’s priority fields for research aside from biotechnology, agriculture, alternative energy, and health.

Figure 1. National Budget of the Philippines

Figure 2. DOST Budget of the Philippines

According to DOST, its budget has its four major thrusts: diffusion of knowledge and technologies, generation of new knowledge and technologies, development of human resources for the scientific and technological (S&T) sector, and provision of quality S&T services.

The Executive Order 128 mandates the DOST “to provide central direction, leadership and coordination of scientific and technological efforts, and ensure that the results therefrom are geared and utilized in areas of maximum economic and social benefits for the people4.”

At least 76 percent or PhP41 million of ASTI budget of PhP54 million, is allocated for their R&D operations annually. Currently, ASTI has 65 personnel dedicated to Research and Development or 70 percent of the institute’s total manpower.

ASTI’s management group is divided into two: the Planning and the Technical Core Group. Since 2005, the institute is headed by ASTI Director, Engr. Denis Villorente, an Electronics and Communications Engineer Board Exam top-notcher and a UP scholar.

ISSUES AND CONCERNS

Based from the group's interview, ASTI is becoming an internal Information Technology of the DOST instead of working on Research and Development projects that the institution is tasked to do. There is also discontinuity of its programs and projects whenever a new DOST Secretary comes in. This is evident on the new DOST chief Mario Montejo, which its current priority project is in the monorail that definitely would affect ASTI’s current projects.

Currently, ASTI’s only 65 R&D personnel are stretched and needs additional training and workforce support. The said number is an obvious reflection of the Philippines’ current stand on R&D personnel per million Filipinos which is at mere 165 per million Filipinos, a way below the UNESCO recommendation of 380 needed for economic development. These highly trained personnel specifically the researchers and scientists, leave the country due to the continuous decline in the quality of scientific research institutions, company spending in R&D, and the procurement of the government in advance technology products. Since 2009, the rankings out of 139 economies in the latest World Economic Forum Report (See Figure 3) have been reduced to -6, -24, and -10 places respectively5. The consequences are serious as these personnel continue to seek for higher wages and better working conditions abroad.

Figure 3. Technological Readiness and Innovation
summary of the Philippines

Another stumbling block for ASTI, based on the group’s assessment, is the lack of marketing effort for their products and services as well as its weak link to industry. The institution’s lack of market push with their products and services becomes a challenge. Alex Sy of Alexan, producer of electronic products is the sole private entity linked with ASTI for its Digital MultiMeter product. It would definitely be an advantage for both the institution and industry if partnership would be fully utilized due to the private company’s own funding that does not rely on government resources.

The group has also observed that the institution has no actual homegrown research as well as dedicated time for the personal projects of its personnel which ideally duplicating best practices of 3M and Google.

Lastly, the institution also has projects that are already commercially available or has been done by other countries. This is evident in their flood control project. Other projects of ASTI are basically outdated.

References:
3 General Appropriations Act 2011, The 2011 Budget at a Glance, Department of Budget and Management Publication, The President’s Budget Message, Benigno S. Aquino III, President of the Philippines, 24 August 2010
4 PSciJourn, The official site of the Philippine Science Journalists Association Inc., pscijourn.wordpress.com
5 Global Competitiveness Report 2010-2011, developed for the World Economic Forum (WEF), WEF’s partner institute is the Makati Business Club (MBC) in association with the Management Association of the Philippines (MAP)

Case Study: Advanced Science and Technology Institute (Part 1)

The Advanced Science and Technology Institute (ASTI), one of the primary Research and Development centers of the Philippines was presented in this case study1 where its fundamental objective is to analyze the management of ASTI’s R&D component. The report was presented last 12 March 2011 before the TM204 or Management of Research and Development class under Dr. Rolando P. Dayco at the University of the Philippines Technology Management Center (UP-TMC).

ABOUT ASTI

The Advanced Science and Technology Institute (ASTI) was created by virtue of Executive Order No. 128 on 30 January 1987, as one of the seven research and development institutes of the Department of Science and Technology (DOST) tasked in conducting scientific research and development in the advanced fields of Information and Communications Technology and Microelectronics.

The following is ASTI’s mandate, vision, and mission as published2:

Our Mandate

Conduct scientific research and development in the advanced fields of Information and Communications Technology and Microelectronics.

Our Vision

"The Advanced Science and Technology Institute shall be among the leading Research and Development Centers in Information and Communications Technology (ICT) and Electronics within the Southeast Asian region."

Our Mission

"The Advanced Science and Technology Institute is committed to the development of the Filipino society and the Philippines as a nation. We shall contribute to the attainment of national development priorities and the growth of Philippine enterprises by providing innovative solutions using ICT and electronics technology."

ASTI is committed towards contributing to the attainment of the following major final outputs:

1. Diffusion of knowledge and technologies

2. Generation of new knowledge and technologies

3. Development of human resources for the science and technology sector

4. Provision of quality science and technology services

In line with the national technology development efforts spearheaded by the national government through the Department of Science and Technology, ASTI is currently undertaking research and development projects under three (3) program thrusts:

INFORMATION AND COMMUNICATIONS TECHNOLOGIES PROGRAM
This program aims to adopt, adapt, and/or develop strategic and research and development activities in the areas of information and communication technologies.

Components:

• Advanced Networking Research
• Wireless Technologies
• Network Applications and Software

Microelectronics Program

This program seeks to develop a state-of-the-art microelectronics design facility where one can do quality R&D work and cultivate a skilled workforce adept in Integrated Circuit (IC) Design through training and exposure to actual design work.

Components:

• Digital, RF, Analog and Mixed-Signal Microelectronics R&D
• Printed Circuit Board Laboratory
• ASTI-Virtual Center for Technological Innovation in Microelectronics Open Laboratory

Technology Transfer Program

ASTI pursues dynamic assimilation of research results by industry, academe, non-government organizations, and government institutions. It aims to transfer research and development outputs and advanced know-how through:

• Technology diffusion and commercialization
• Collaborative research and development
• Conduct of trainings and seminars
• Industry studies

EXISTING PRODUCTS, SOLUTIONS, AND SERVICES AT ASTI
Below is a basic summary of the major product releases completed by ASTI:

GSM Data Terminal - This product enables computers to send and receive text messages, just like an ordinary cellular phone. It uses any mobile phone SIM card, and there is no need for Internet connection.

Wireless Telemetry and Remote Monitoring Platform - Customizable and flexible platform for data logging applications through wireless network based on Global Systems for Mobile Communication or GSM. Provides a complete data acquisition solution when paired with the GSM data terminal for real-time data monitoring and graphical analysis of measurement readings from different types of sensors (e.g. temperature, pressure, humidity etc.)

PICMe - Microcontroller Starter Kit - A low-cost pocket size microcontroller learning board to jumpstart your project development with MCUs.

Digital Wood Moisture Meter - The Digital Wood Moisture Meter (WMM) is a handy tool used to determine the moisture content of selected local hardwoods. The WMM is indispensable for the local woodworking/furniture industry and is designed to be a fully-functional, low-cost alternative.

Digital MultiMeter - An ultra low cost digital multimeter built with state of the art DMM processor. The first ever produced multimeter product designed by Filipinos to reach the market. This portable test instrument is capable of handling various electrical measurements such as AC/DC voltage, current and resistance measurement and other special features.

Pasteurizer - The Human Breast Milk Pasteurizer is a device that kills harmful bacteria present in milk due to its mishandling and unsafe storage.

Digital Library System - ASTI offers a digital library platform for use by PREGINET partner institutions. The digital content system is capable of handling digitized documents. Documents that can be easily uploaded and stored include conference proceedings, journals, theses, dissertations, and other publications, even audio and video files of trainings, seminars, and workshops.

Digital Content System - A free online library which directs users to exemplary resources for science, technology, engineering, and mathematics (STEM) education and research. This integrated library system, or ILS, is an enterprise resource planning system for a library. This library management system is designed to coordinate and automate such library functions as the online catalogue, the circulation system, and the acquisitions system.

Virtual Classroom - ASTI offers classroom-like courses over IP. Courses are offered on-line and modules are uploaded and made accessible to intended internet portals. This learning platform has now been adopted by many as a form of distance learning. This kind of system offers a great advantage in terms of availability of school at all times.

Web Hosting - This allows individuals and organizations to host their own website, and users with online systems for storing information, images, video, or other content accessible via the World Wide Web. ASTI-PREGINET provides this service to State Universities and Colleges, Government organizations, and Research Institutions.

Domain Delegation of .gov.ph - ASTI is in charge of delegating .gov.ph domains to various government units.

References:
1 Case study on “Research and Development Management at the Advanced Science and Technology Institute” by Joselito Barquez, Rafael Concepcion and Ronald Gonzales, last 12 March 2011 at TM204 Management of Research and Development class under Dr. Rolando P. Dayco, University of the Philippines Technology Management Center (UP-TMC)
2 Advanced Science and Technology Institute (ASTI), asti.dost.gov.ph

ABS-CBN to Launch Digital TV Service

Changes in signal reception, grainy pictures and choppy audio due to degrading antenna connections or changing weather conditions would soon be finally over as network giant ABS-CBN Corp. unveiled its Digital Television or DTV last Monday, 04 April 2011. This would eventually replace the current analog signals in the country by offering a digital box mainly to non-cable TV subscribers for a one-time purchase between PhP1,000 and PhP3,000 without the hustle of monthly subscription fee.

The Lopez-led firm will spend an initial PhP1 billion in its DTV offering1 and is ready to start broadcasting digital signals as soon as the implementing rules that will govern DTV transmission has already released by the National Telecommunications Commission (NTC), which is hopefully by June this year. The NTC officially adopted the ISDB-T or the Integrated Services Digital Broadcasting-Terrestrial last 11th of June 20102. The ISDB-T system from Japan has chosen, mainly because of the low price of the digital box which was quoted at around US$10 to US$15 a box3.

ABS-CBN’s DTV will provide a breakthrough viewing experience for consumers with digital clear picture and sound for all existing channels plus 5 new channels for free. The new service aims to improve the television viewing experience of 90 percent of households in the country that still do not have cable TV services and are forced to settle for sub-standard signal quality.

“Digital TV will deliver better signals and more viewing options for households,” said Miguel Mercado, vice president and head of marketing for digital terrestrial television at ABS-CBN. The said new channels would cater to different members of the family, i.e. two for kids, one channel for the youth, a channel for dads, and another for moms. “These are in addition to getting all existing channels that will be broadcasting in digital, which upon our launch, will include Channel 2, Studio 23, GEM TV and NBN. Once the NTC gives the go signal, we are sure that the other stations will be ready to broadcast their current channels on DTV as well,” Mercado added4.

Multicasting

Signal Comparison of Analog, Digital TV and High-Definition

References:

1 The Philippine Star, “ABS-CBN allots P1B for shift to digital TV” by Mary Ann Ll. Reyes, 05 April 2011

2 Wikipedia, Digital Television, ISDB-T adoption

3 Philippine Daily Inquirer, “ABS-CBN to launch digital TV service for non-cable customers” by Paolo G. Montecillo, Business section, page B1, 05 April 2011

4 ABS-CBN News, “ABS-CBN to Roll Out DTV Digibox” by TJ Manotoc, posted on abs-cbnNews.com, 04 April 2011

Japan's QR Code

When Japan was struck by magnitude 8.9 earthquake last 11th of March 2011, several international organizations sent their assistance, calling for donations through the mainstream media and the internet. One interesting campaign, though not yet standardized in other countries like the Philippines was the utilization of the QR code1 that has appeared in various websites, personal blogs, Facebook, Twitter, almost everywhere. Example of the campaign designed by SET Japan (see image 1) links the QR code (short for Quick Response) to the Japanese Red Cross site as every smartphone and tablet users could directly make donations from the comfort of their handsets. International news organization CNN, has also began testing QR code on-air that would also direct people to a site where they can help Japanese earthquake and tsunami victims (see image 2). The QR code not only becomes a medium to help the Japanese but also made people outside Japan realized its practical usage, flexibility, and more importantly, education with regards to the application of the technology.

Image 1. Help Japan Now QR code by SET Japan 

Image 2. QR code on-air by CNN

So what is a QR code? It may appear to other people as crossword puzzle or a blown-up pixels. Yet others who are already familiar with the code may simply describe it as bar code on steroids. Invented in 1994 by a Japanese company called Denso Wave, a subsidy of Toyota, QR code is a specific matrix barcode (or two-dimensional code), readable by dedicated QR barcode readers, camera phones and tablets. The code consists of black modules arranged in a square pattern on a white background. The information encoded can be text, URL or other data2. The inventor of the technology has elected not to exercise their patent rights on QR codes which has encouraged their widespread use. Japan has been using QR codes in their wide variety of applications, such as manufacturing, logistics, and sales applications. In terms of common everyday use, QR code is being printed on their paperback spines, rental video cases, and sushi plates used in revolving sushi bars. It is ubiquitous in Japan as it already lost its novelty value that have simply blended into the background, just like the other common symbols such as traffic signs3.

As smartphone usage are gaining momentum in the global market and QR scanning application are standardized inside these handsets, it may very well generate interest, obviously not in Japan but in other countries such as the Philippines. In the United States, QR codes have become mainstream in marketing that have been integrated into both traditional and interactive campaigns. QR codes can be seen in their magazine and billboard ads, storefront displays, business cards, event ticketing and tracking, direct mail campaigns, websites and even on T-shirts just to name a few. In New York City, Mayor Michael Bloomberg has announced last 22nd of February 2011, the use of QR codes on building permits. This is to provide New Yorkers with easy access to information related to buildings and construction sites throughout the city. All New York permits are expected to have QR codes by roughly 20134. Starbucks has also applied the code since 2009 in their Starbucks Card Mobile iPhone app as an alternative payment for a cup of coffee. A barista would just simply scan the QR code in the smartphone’s screen when it comes time to pay up. As of today, there are only less than twenty Starbucks stores that have implemented the technology in the US.

To clearly illustrate the concept of QR code, you may try this very simple steps and perhaps your Facebook page (or a personal blog) can be used as your testing ground:

1) Open your Facebook page, then copy your URL address.

2) Go to this link to generate your own QR code for free at Kerem Erkan site.

3) From this link, paste or place your Facebook URL address in the Web Site URL field, other fields may provide you options such as color preference, pixel size, etc.

4) Then click Generate Code, as your personal code would only take a few seconds to produce. You may drag your QR code result to your desktop (for sample output, see image 3).

5) Open the QR scanning app from your smartphone or tablet. If you still do not have the app, you may download this for free at RedLaser site. The application is available for Android, iPhone, Blackberry and Symbian phones (or tablet).

6) Use your smartphone’s (or tablet) camera to focus the code in your screen.

7) The application will recognize the code and automatically open up the link to your Facebook URL address, video or image in your phone’s browser.

Image 3. Sample of QR code which is a link to this blog,

Tech Pinoy Trend. The code was generated at

Kerem Erkan's site.

The QR code is a 15-year old technology, but its widespread use is still in infancy. Some marketers who adopted the QR code early in their campaigns had failed primarily because most people simply do not know what QR codes are and how to decode them. Another factor is that QR codes are not the only 2D code standard available. There are others such as the semacode, shotcode, and the Aztec code, and the data matrix code5. QR codes, however, are more effective than these other codes because of the availability of the QR code scanner in smartphone.

Is the Philippines ready for QR code? The increasing sales of smartphone units which is around 40,000 per month according to Ayala-led Globe Telecom followed by the rising demand for mobile broadband service6 may contribute to ease of penetration of QR code in the country. Another factor is the inclination of Filipinos to novelty that would give them other ‘fashionable’ means to access social networking sites such as Facebook. Based from the latest survey, the country jumped from sixth to fifth spot in the roster of Facebook users globally in the last three months alone, with over 22.5 million members7. This would allow awareness campaign for QR code a clear head start already. Likewise, the country is in the fourth largest number across Asia in Twitter with over 3 million users. No doubt that QR code would be easily grasped by Filipinos, not to mention personal prints for shirts, mugs and even dog tags that would link to their Facebook or Twitter page.

The QR code would also provide opportunity for the country’s micro, small and medium enterprises (MSMEs) in terms of shipping control, logistics, property inventory system, etc., as the technology is basically at minimal cost. Like in the logistics management of food products, data such as product code, expiration date, and manufacturing history, are encoded into QR code similar to the process done at Chukyo Coca-Cola Bottling in Japan. This would enable first-in first-out execution based on expiration date control as well as improves traceability based on manufacturing history control which is among its primary benefits.

Other practical uses are the Access Control System which encodes into QR Code the personal identification data, including company names and individual names, and Property Inventory Control System which encodes into QR Code the property data, including model numbers, user names, and usage locations. These QR Code can be printed to any QR Code compatible printer. There are also Windows compatible software that can be used to create QR Code for printing.

The effectiveness of QR code used for marketing is still under deliberation. There is a June 2009 study from NetAsia Research that showed 76 percent of the Japanese have or to be more precise “know they have”, the ability to access QR Codes. Obviously some use the facility more or less than others but the average across this group is only 1.24 times per week. The main reasons given for scanning the codes are also enlightening. There are really only three, 31.6 percent to use a coupon, 30.9 percent to apply for a special promotion and 22.7 percent to have more information on a product3. They may generate curiosity or local publicity at the moment but QR Codes on real estate signs, business cards, product packaging etc., are not going to increase sales just because they are present. QR Codes that provide deep discounts, free samples, exclusive content etc., may increase sales but the number of scans and conversions will depend on the value of the offering.

References:
1 QR Code is a registered trademark of Denso Wave Incorporated
2 Wikipedia, wikipedia.org/wiki/QR_code
3 The QR Code Hype Cycle by Roger, 2d-code.co.uk/qr-code-hype/
4 TechCrunch, “New York City to Put QR Codes on all Building Permits by 2013” by Lora Kolodny, February 22, 2011
5 BeQRious, “Real World Examples of QR Code Fails”, beqrious.com/show/real-world-examples-of-qr-code-fails
6 abscbnNews.com, “Globe Expects Increasing Demand for Smartphone”, by Lenie Lectura, Business Mirror, 25 November 2010
7 All About World, “Top 10 Countries with the Most Facebook Users in the World 2011”, by Shankar, 03 March 2011

One more thing...

Once people become accustomed to the QR code,

its applications are limitless just like the signage

on the above photo.

Interview with Application Developer Yves Gonzalez (Part 2)

TPT: Are you planning to go full time?

YG: This year, not yet, because I am still trying to adjust here in the government office, but I already want to have my own office space instead of going to Starbucks. My vision actually is to build a school one day where you can train iOS developers. There’s good money in iOS only if you will shift that call center mentality by teaching these young people to develop an app, which is not that hard. Just give them the vision and direction, set the quality, and if that happens, for sure, you would be able to help a lot of people.

TPT: Do you need to be an IT or a graphic artist?

YG: There are different roles, like in advertising, you need to have an artist, otherwise you would come up with a substandard looking apps. There was no app that became popular without a graphic artist. As you go along, if you want to excel, you need to have a graphic artist because not all of us are artists, but there are less developers and more artists. I know someone locally, she designs apps for foreign clients, just graphics, and she is earning well. In general, the weakness of developers all over the world is in the interface design. They do not have in-house designer, and I think this is also one of the advantages of Giro Apps, who does not only concentrate in the development but also in design. Just before spending a single day on coding, my designer already has the design so that the client would already know how it would look.

TPT: Barrier to entry?

YG: Actually, the number one barrier to entry is you need to have a Mac. Still minority are using Mac. Number two is the US$99 (PhP4,290) to download the SDK or the Software Development Kit. There are a lot of Filipino youths, I think given the proper training and direction, would be very good developers and they would really earn from it. In our case, we are turning down projects left and right because we do not have time, but imagine if there are already pool of developers. Let’s say the client only wants a very simple app, just spend one week on it and earn at least US$1,000. So the more the market matures, like more iPads and more iPhones, a lot of very good apps would come out.

TPT: Would that mean, the market is not yet matured in the Philippines?

YG: In iPhone, the market is already matured but not yet in iPad. If you are going to build an iPad app, the market is still small. In our case, we are planning to make a Law App but we are still waiting for that market to mature. You can only launch once and when you launch, that is the time that you can sell a lot, but if the market is not yet matured, you won’t make that much. If most lawyers and justices are already using iPads, then we can release the Law App. Since I myself is a lawyer, I already tasked myself to do the Law App and nobody else would do it because for sure, others would do different apps. The Law App is one of my visions ever since I was in law school.

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TPT: How much is the cost to develop an app, like if I would want to get your services?

YG: The cheapest would be US$1,000 and that is at least two to three functionalities. There is an application that we did, Golf Philippines (see image 4), that one is US$1,000. It has searchable table, you have the detailed view of the establishment, and you have the mapping. But that would also depend on who is doing it. Others may charge you for PhP30,000 or PhP20,000, I do not know.

TPT: How about royalties? Let’s say the app was placed in the iTunes?

YG: I have not yet done client app that is being sold in the iTunes and probably would not accept it. Most of our clients just want to have an app for promotion purposes only. We’ve not yet done an app for profit sharing. With regards to our process, I would give you a quotation, included there is the six months support, meaning, minor updates, tweaks or some minor problem. But if you want to have additional new features, let's say an Augmented Reality feature, we would have an expansion contract. But within those six months, if the users of your app would have problems, the email support goes directly to us and we’ll take care of the troubleshooting. A good app with a very rich content can cost you about PhP200,000. In the U.S., the minimum charge is at US$5,000 and this is just an acceptance fee. We only cater to local clients because we tend to really talk to them and get the feel of what they want. We had inquiries from international clients that we had to turn it down because we are having a hard time talking with them.

TPT: Your company is already formalized?

YG: We are SEC registered, we issue receipts, we are a formal company. We have investors and there is somebody who is willing to invest big. But my advise is not yet, we have to wait for the market to mature and if we launch, we will launch big.

TPT: Yves, what are you doing here in MMDA? Are you an IT guy?

YG: When I got here, I was a spokesperson but now I handle multiple functions. I am in-charge to resolve the traffic in EDSA and fortunately, I am also in-charge of the technology, I call myself the technology evangelist, meaning, I am the one who is always advocating the use of technology to make our work better. For example, the CCTV’s, without it, I would not know what is going on. If you are in-charge of EDSA, you cannot be God who knows what is going on everywhere, so you have to use the technology. Now, I can see what the traffic situation is, if there is traffic, I know where it is and who to call. I am also in-charge of the MMDA twitter team, that’s a mixture of two duties, traffic and technology. I am also in-charge of emails, communications with the public handling complaints. In a way, it all works together, for example, this app that I am doing for MMDA which our company is developing for free, is actually useful for me as a person who is monitoring EDSA. Again, we will go back to the mentality that we make apps that we want for ourselves. If you don’t make it, no one else will. I conceived this traffic app two years ago when I was still not connected with MMDA. When I got here, I found out that they have traffic data but only written in a white board. So when somebody asked for a traffic update, they would just read the data from the white board, but that is not good. The moment you erased it, it’s gone. So I immediately started working on a project that would digitized the traffic information and we are about to launch that very soon. So when you digitized that traffic information, you already have that underlying data which is what you need to create the app or website that would utilize that data and present it to the end users. A paradigm shift would also happen to the traffic reporters of networks and radio stations, instead of calling MMDA and asked for the traffic updates, they would just read the traffic app which is actually updated every 10 to 15 minutes.

TPT: Would you have a company in mind, probably in the U.S. or in other parts of the world where you look up to as a model, for example, with best practices?

YG: In the development industry, well first there is Apple. I think that company is Tapbots. When they make an app, it is all down to the very last detail. They make a lot of money in apps, because everyone knows that they make quality and useful apps. The design elements even have sounds to it. Like when you press a button, you would hear a hissing sound. They really spend time on developing the apps and we are trying to emulate them as much as possible.

TPT: The school that you were envisioning, probably, you can inject Apps Development course in La Salle (College of St. Benilde) for example in their Multimedia Arts?

YG: I think U.P has, probably the old school route would also be fine. But for me, I was thinking that with the school establishment comes with a baggage. I am more of a believer that this is something new and you are not supposed to rely on old schools. Otherwise, you will carry the baggage along with that old school mentality. So, probably every once in awhile, you would invite international resource person to give lectures on apps development. These developers are very helpful anyway, what you have to do is just to fly them here and provide the hotel accommodations. It would be an honor for them as well as bragging rights that they were able to give lectures internationally. It is very good to imagine that in the future, you have this school of developers and just for a year, the first graduates would compete each other to develop very good apps. The more they compete each other, the quality of the apps would keep on improving.

TPT: How did you get into developing apps and your advise for would-be developers?

YG: Well first, I started out as an Apple user, then here comes iPhone 1, where my best friend who became my partner will purchase a unit which I myself would unlock. Since, I was the one delivering the unit, my client would ask me, what if it stopped working, who is going to fix it? So, eventually, I made my career out of it and in 2007, I made my first million just unlocking iPhones, spending my whole day at the Rockwell. So when the iPhone became official in the Philippines, my career died down, then by that time, the SDK (Software Development Kit) was also released. I have not yet started with that until at certain point in 2009, while I was studying for the Bar Exam, I concurrently studied the iOS. So I did the basic zip code app, I was doing that during the bar review, so that after the review, I would have something else to do. Well, you need to start somewhere, learning the components one at a time, like the tables, scroll view, then if you have already mastered that, then go to mapping. In 2010, after my Bar Exam, I released Tawag Pinoy. The Giro Apps was incorporated in that same year but prior to that, we have already released the ZZips and Enjoy apps. These are free apps which started out as our practice ground. I am just lucky that Greg (Reichow) was there who became my mentor. If I am encountering some roadblocks in coding that I can no longer solve through googling, he is the one whom I approach by email. Then he will email back with the solutions and I think that is my advise for the developers, you need to have a mentor, someone who will get you through those moments that even Mr. Google cannot answer and that is a very important factor.

With Yves Gonzalez at his MMDA office in Makati City

For more information about Giro AppSolutions, Inc. and their products, you may visit Giro AppSolutions, Inc.