Buzzwords and buzzkill: Why MSMES need continuity planning
CLOUD computing and data science have been buzzwords in the IT and business fields in the Philippines for the last few years, but sadly it has remained just that—buzzwords—until the buzzkill that is Covid-19 changed everything. Because of Covid-19, the Philippines and the rest of the world have fallen into recession, as mobility restrictions and the lockdowns slowed down if not entirely stopped business operations. Research from the Asian Development Bank said 71 percent of MSMES surveyed in the country were forced to halt operations, while the Department of Trade and Industry reported that an estimated 90,000 MSMES remained closed. The risks to Philippine businesses, however, don’t end there.
Natural calamities also serve as threats to enterprises as the country receives an average of 20 storms annually not to mention the dangers from having 24 active volcanoes and a bunch of fault lines all over the archipelago.
A study by the International Labor Organization (ILO) published in 2015 suggested that SMES in the Asia-pacific region are the most vulnerable and least prepared for disasters. It also cited related research saying that only 13 percent of the region’s MSMES have Business Continuity Planning. BCP creates a system of prevention and recovery from potential threats to a company and IT plays an important role in BCP.
With the resurgence in Covid-19 cases and a tighter watch on natural disasters in the country, a new player in the information technology (IT) industry is pushing for greater awareness of the concept of cloud computing among MSMES.
Taking off from the gains of its technologyrelated initiatives, the Tanco Group launched a new information technology (IT) firm Stitch Tech Solutions as an expression of the group’s commitment to its digital pivot.
“In a country prone to disasters, coupled with the pandemic, our financial health as a country suffered given that MSMES function as our main economic lifeline serving as the backbone of the economy,” said Stitch CEO Jaeger L. Tanco. “Through cloud computing, we want to give these businesses a shot in the arm, so they can get back on their feet the soonest and not just survive but thrive.
Prior to the pandemic, the group that owns the STI network of schools saw the potential of both data science and cloud computing, and launched data science-related courses—the first institutions in the Philippines to offer such programs in the college level.
“With Stitch now here, we also hope to advance further our existing technology-related endeavors to create an ecosystem that empowers even more people in this digital age,” Tanco added.
Stitch primarily offers cloud computing solutions such as Amazon Web Services (AWS), a virtual server that allows MSMES to store and access relevant files and programs without the need to purchase physical equipment. These would enable MSME personnel to work remotely and efficiently even when they are away from their usual workplaces.
Cloud computing brings several benefits to businesses such as speed, flexibility, global scale, productivity and cost savings. Most cloud computing services provide self-service, and on-demand, so even vast amounts of computing resources can be provisioned in minutes. Cloud computing is a flexible way of storing and accessing data over the Internet. This means that your data is not tied down to one specific computer and can instead be accessed from several devices while still keeping all your information and data secure. The accessibility of cloud solutions allows employees to work on-the-go; all they need is a connection to the Internet to work from wherever they need to.
With cloud computing, businesses can store and access files and software, especially large ones, without necessarily buying a physical server, saving them as much as 30 percent to 50 percent from office space and cost.
“Perhaps one silver lining this pandemic has is the value of helping one another get up and move on with our lives as entrepreneurs and as individuals. BCP is important for MSMES as it is for us, so we want to empower them with tools to support that purpose,” Tanco said.
Aside from cloud computing services, Stitch offers SAP consultation and IT services such as web site and app development and management, as well as IT support and enhancement of day-to-day operations.
JEFF PROVES TO BE ‘PANDEMIC PROOF’
ONE company that has thrived despite the pandemic is Jeff—a company created in 2015 by three Spanish entrepreneurs: Eloi Gómez, Adrián Lorenzo and Rubén Muñoz.
Starting out as a home laundry and dry-cleaning app, Jeff is currently in an expansion process adding different day-to-day services such as hairdressing and beauty, fitness or massages, becoming the first international omnichannel ecosystem of day-to-day services.
Since the pandemic last year, Jeff in the Philippines performed better than what was expected. The percentage of online orders was around 65 to 70 of the total, with franchisees strengthening their numbers and metrics since pre-covid.
It has already started to make its mark in the Philippines, with its first footprint through a convenient home laundry and dry-cleaning app and delivery service that has helped keep Filipinos safe at home instead of heading to a laundromat. By using the app, customers can choose the exact location, time and day of pick-up; a driver proceeds to get the items and delivers them, cleaned and folded or ironed, in just 48 hours.
Worldwide during the pandemic in 2020, Jeff opened at least 185 Mr Jeff laundry hubs showing the company’s and the franchisees’ commitment to the business. As of 2020, Jeff has sold 80 Mr Jeff laundry franchises in the Philippines, with its laundry hubs operating in Metro Manila and Sta. Rosa, Laguna.
From its “business in a box” concept Jeff has grown from its initial foray into the convenience laundry segment with 2,300 franchisees sold in over 40 countries in Latin America, Europe, Africa, the Middle East and Southeast Asia. With many gaps still needing to be filled especially in the delivery of home services in the Philippines, Jeff will expand its super-app capability with the introduction of Fit Jeff and Beauty Jeff where customers can book beauty and fitness services that save time and minimize risks. ■