Articles, essays, and talks of Rey Lugtu

(Published in Business Mirror, under the Mirror Image column, June 14, 2006) “Business model innovation is becoming the new strategic differentiator”- this is one of the findings in "Expanding the Innovation Horizon," the 2006 IBM Global CEO Study reporting on the agenda of CEOs in the next few years. The results are based on interviews conducted recently by IBM and the Economist Intelligence Unit (EIU) with 765 chief executives from around the world. With ever changing markets, globalization, and stiffer competition, companies need to innovate to survive and grow. According to the study, innovation is no longer about inventing new products and services, but more on innovating business models and competing in new ways. So what is a business model and how can it be the centerpiece of innovation? Amit Singh Sisodiya, author of “Business Models - An Introduction” defines business model (which he also referred to as business design) as “the mechanism by which a business intends t...

(Speech delivered before the National Association of Independent Travel Agencies – Philippines, Inc. (NAITAS) General Membership Meeting, March 31, 2006)

(Interview with Prof. Reynaldo Lugtu, Jr, by Sam L. Marcelo, Special Features Writer, BusinessWorld for the Corporate Wireless Business Solutions supplement, March 2006) BW: In your article "TheEmerging Mobile Workforce", you said that "some employees may abuse the newfound freedom from mobility, and instead spend their time away from the workplace on personal matters." Isn't it that output of employees is more important than howmuch time they spend at the workplace? Used to be, the bundy clockplayed a role in paying employees-- with mobile/wi-fi technology (andflexible hours) how should performance be judged? Would you say thatas long as employees deliver, how much time they spend at theworkplace is irrelevant? Prof Rey Lugtu: Much of the mobile workforce right now are working as marketing and sales professionals, consultants, technical support, and other business executives that need to visit clients and business partners. Measuring the performace of such wo...

(Published in the Manila Standard Today under the Greenlight Column, March 13, 2006) Manny Pacquiao was pegged a 10-8 underdog in the Las Vegas sports book betting windows a week before his rematch fight against Erik Morales; and this after Pacquiao was pegged the 7-5 choice earlier. As the fight neared, the odds became even until more bettors placed their wager on Pacquiao on the day of the fight itself, making him a 10-9 favorite. True enough, more bettors got their winnings as Pacquiao kayoed Morales. Wise Crowds The collective wisdom of the bettors, despite the vacillating odds, turned out to predict the winner in the historic boxing fight. This crowd of diverse bettors, as James Surowiecki put it in his book “Wisdom of Crowds”, is “remarkably intelligent”, and is “often smarter than the smartest people in them” under the right circumstances. Surowiecki argues that “four conditions characterize wise crowds: diversity of opinion (each person should have some private information, ev...

Published in Businessworld, View from Taft column, February 16, 2006 The emergence of the information and communications technology (ICT) and allied industries in recent years has lead to the phenomenal growth in employment opportunities in various sectors. For instance, the number of professionals in the business process outsourcing (BPO) sector has been growing exponentially since 2001; and to date, there are around 100,000 employed call center agents, customer service reps, BPO managers, and other IT professionals that interact with clients from all over the globe and other parts of the value chain. Likewise, the growth in telecommunications services sector has resulted to the growing number of professionals in software development, sales and marketing, and even entrepreneurs and business managers whose jobs are anything but routine. These professionals and employees not limited to the ICT industry, such as customer service representatives, managers, and salespeople, make up the fas...

(Published in BusinessWorld, under The View From Taft column, Nov 10, 2005) When seven cabinet secretaries and three bureau chiefs of President Arroyo resigned on the Friday of July 8, immediately followed by resignation calls from the Liberal Party, the Makati Business Club, former President Cory Aquino, and civil society groups, many believed it was the start of the end for President Arroyo. Well, we know what happened. All succeeding events and elements during those times failed to bring about a “tipping point”. A critical mass of people did not congregate in Makati or at Edsa Shrine to set the stage for another revolution against the presidency. Conversely, both Edsa 1 and Edsa 2 revolutions were effected by tipping points or, in the words of Malcolm Gladwell, author of The Tipping Point: How Little Things Can Make a Big Difference, by “one dramatic moment in an epidemic when everything can change all at once”. What makes events such as Edsa 1 and 2 reach critical mass proportions?...

(Published in the Manila Standard Today under the Greenlight column, Oct 31, 2005) Our company recently acquired a number of subscriptions of WeRoam from a telecom company which was distributed to all personnel, who are most of the time in the field, either on sales calls or servicing clients. WeRoam is a wireless internet service that runs on GPRS (General Packet Radio Service) and EDGE (Enhanced Data for Global Evolution) technologies, providing up to 220 kbps (kilobytes per second) connection speed and nationwide coverage to laptop users. After only a few weeks of usage, my colleagues and I have discovered a new way of working – true mobility that maximizes the utilization of our time. What is amazing with these new technologies is that it allows one to connect to the Internet, access back-office applications and collaborate with colleagues, customers, and suppliers wirelessly and while on the move anywhere in the country, thereby tremendously increasing productivity. Does this sign...