ORGANIZATIONAL PLAN

 

Creation of the Quezon E-commerce Services Office (QUESO)

   This is not the first time that e-commerce project in the internet was proposed to Quezon province. As early as 1997 there were not few groups who tried to do the business. One was composed of doctors, another was put up by computer students; there was one website promoted by Uro de la Cruz (Film director of Bubble Gang and many other films and a native of Lucban) and many others put up by private individuals. Indeed it is hard to say that their business did prosper, easier to say that they have one common “complain”, and that is the factor of participation of local government units which was obviously lacking. The B2Bpricenow.com, so far the No.1 e-commerce website in the country today, started doing roadshows in Quezon province even before the implementation of E-Commerce Act of 2000. And they are clear from the very start, part of their strategy is to involve LGUs in the implementation of this business.

   Hence, the request that Quezon E-commerce Services Office (QUESO) be formally created by the provincial government of Quezon through Hon. Wilfrido L. Enverga’s Executive Order, the proposed draft of which reads:

 

Executive Order No. ___ Series of ______

Creation of Quezon E-commerce Services Office

   Whereas, the E-Commerce Act of 2000 (Part I, Section 1) state that we recognize “the vital role of information and communications technology (ict) in nation-building; the need to create an information-friendly environment which supports and ensures the availability, diversity and affordability of ICT products and services; the primary responsibility of the private sector in contributing investments and services in telecommunications and information technology; the need to develop, with appropriate training programs and institutional policy changes, human resources for the informations technology age, a labor force skilled in the use of ICT and a population capable of operating and utilizing electronic appliances and computers”;

   Whereas, the provincial government of Quezon, taking into consideration the 545 hectares out of the total 871 hectares of the total land area of Quezon (or 63%) is agricultural, home to 724,000 labor force, mostly farmers (or 287,000 are agriculture-related), whose products, industry and services should take the lead of bringing these farmers and their goods in the internet market where goods and services bought by Filipinos valued at US$265 million in 2002;

   Now therefore, I, Wilfrido L. Enverga, Governor, Quezon Province, by virtue of the power vested in my by law, do hereby ORDER:

Section 1. Composition. A Quezon E-Commerce Service Office (QUESO) is hereby created with composition and responsibilities hereunder enumerated

1. Hon. Wilfrido L. Enverga Governor

2. Mrs. Evelyn S. Abeja Provincial Administrator

3. Mr. Zaldy L. Gariguez Project Coordinator, Marketing

4. Mrs. Luzviminda A. Torres Project Coordinator, Agriculture

5. Mr. Peter Henry I. Osmond Project Coordinator, Finance

6. Mr. Oscar A. Camara, Jr. Project Coordinator

7. Vacant Staff, Trainor

8. Vacant Staff, Coordinator

9. Vacant Staff, Computer Operator

Section 2. Responsibilities. The Quezon E-Commerce Service Office (QUESO) shall:

2.a Conduct Training and Seminars

   In coordination with the Provincial Information Management Office (PIMO), formulate module and conduct training to cooperative members, not necessarily the farmers themselves, to make them capable of basic computer operation and browsing the internet; this training should also help them appreciate and realize how e-commerce, as an effective business tool, tremendously speeds up transactions and minimize costs and consequently improve their business.

2.b Create and Operate E-commerce Website

   During the first stage of the project, namely encourage farmer-sellers to use e-commerce, these players will temporarily use the services of other e-commerce websites, particularly the www.b2bpricenow.com. During the start of the project, however, QUESO will also start building up its own e-commerce portal. It will prominently be linked and directed by the official website of Quezon whose address is http://www.quezon.gov.ph. This office will allocate budget for web hosting, Domain Name Server (DNS), programming and maintaining of this website.

2.b Perform Marketing and Promotion

   Perform information dissemination and campaign using appropriate means including roadshows and publications of leaflets/information materials which should be distributed to the members of farmers cooperatives.

   Once farmers-participants’ products are up on the internet, the QUESO should make every effort to encourage visits to the portal/website; encourage trading by creating a list or possibly a data base of all potential buyers and collect at least a hundred names, contact information, addresses of highly interested costumers. Put the website address prominently on all marketing materials (calling cards, letterheads/envelopes, brochures, press releases, streamers, signages, billboards, giveaways). Transactions, orders, inquiries that occur between sellers and buyers must be constantly monitored to help the officers recommend adjustments and in making policies.
2.c Coordinate

   The QUESO will coordinate with concerned agencies, particularly the farmers’ cooperatives, the Provincial Information Management Office, Department of Agriculture and Agricultural Training Institute, Department of Trade and Industry, Landbank of the Philippines and other interested banks, TESDA and other government and non-government agencies that could help improve the e-commerce services of the province.

2.d Monitor and Evaluate

   This Office shall draw an action plan before the start of the project wherein the timetable is stipulated; conduct regular evaluation and effect or implement improvements essential to ensure the continued suitability of policies to the different needs of the primary target market and other costumers.

2.e Set Internal Rules and Regulations

   The QUESO adopts its own internal rules, procedures and strategies in carrying out the above responsibilities, including the setting of schedule of meetings and deliberations.

2.f Act as E-commerce Services Office

   This office shall act as the prime e-commerce services provider of the provincial government of Quezon. Other than those functions mentioned in this Order, the QUESO will extend full support to the constituents of Quezon province including consultations regarding information technology, techno-farming, packaging, marketing and promotion, and many others.

Section 3. Effectivity. This Executive Order shall take effect immediately.

   Done in the City of Lucena, Province of Quezon, this 14th day of January, in the Year of our Lord, Two Thousand and Four.

 

WILFRIDO L. ENVERGA
Governor

Rationale of the Business

   E-commerce Act of 2000 enjoins all sectors especially the government to harness and utilize the information technology tool in all transactions. The reason is overwhelming, it is not just because it is the trend that amazon.com or E-bay are leading, the companies which continue to increase revenues in the world market. Even the Philippine internet demographics tells us that the current 4.5 million Filipino Internet Users (FIUs) continue to rise by a million each year. Twenty-three percent (23%) of these FIUs actually bought products and services online with a total spending of around US$265 million this 2002 (Philippine Internet Demographics, Janette Toral of Digital Filipino). A big leap indeed from a mere US$1.6 million back in 1997.

   Quezon Province has much to sell in the internet market, taking into special consideration its agricultural and fishery products. Sixty three percent (63%), or 545 hectares of the total 871 has. land area is agricultural. Its diverse agro climatic conditions make it suitable for raising a wide variety of crops and animals. Its long coastal line yields different kinds of marine species. Improvement of marketing system quantity and quality of agriculture and fishery products of Quezon, as well as upgrading technical skills of farmers will increase productivity and improve the standard of living of Quezon farmers.

   E-commerce is a big solution to the limited market that Quezon farmers had long been waiting. Lands will become more productive. Usually, production is limited since the market or the demand is. That is the reason why most of the lands in Quezon are still not tilled and haven to the rebels. It would be easier for our 40 field personnel of the Office of the Provincial Agriculturist in coordination with DA Agribusiness and Marketing Assistance Services and Agricultural Training Institute to gather information from cooperatives and farmers every harvest time of even during planting season an estimate of projected harvest and post them on line.

   Another problem that our farmers that would expect to overcome is the old practice of getting the least price or return for their products imposed by those unscrupulous middlemen. E-commerce will provide our farmers not only the real time market informations such as prices but also will give them direct access to their potential buyers. Transactions will be a lot cheaper for they can do everything, including the payment, online. As one of our mentors from the Ateneo de Manila expressed it, our farmers need to be online the soonest possible.

Support and Services

1. Information Dissemination

   On this right single step that much of the project’s success relies. There is a saying, the more the merrier, but in this case, if we have to create a market trend, every Quezonian must then know about this electronic marketplace. The Quezon E-commerce Services Office (QUESO) will first issue a Memorandum Circular addressed to all Municipal Mayors, calling the attention of all Municipal Planning and Development Coordinators and Chairmen of the Board of Directors of Cooperatives, informing them of the project. The intention of conducting a roadshow and the invitation for a 3-day basic computer operation training will be mentioned in that Memorandum Circular.

1.a. Roadshows

   With an expected participant of at least 50, QUESO will conduct roadshows to all municipalities at least once a week (preferably Fridays) or at least 40 roadshows in a span of 20 months. QUESO will then keep a record of all cooperatives not only of the farmers’ for proper scheduling. The roadshow is expected to be attended by the cooperative members and farmers. Invitation, however, should be extended to those interested participants like the livelihood projects promoters as initiated by the Munting Sambayanang Kristiyano of the Lucena and Gumaca Dioceses of the members of Chambers of Commerce and many others.

   During the roadshows, the E-commerce Primer will be discussed among other important information about QUESO and other supports and services it provides. The medium that will be used is Tagalog.

   Also, in this training, we can present and overview and suggest new projects or potentially new industries to the farmers. It is like setting down a smorgasbord for them. QUESO will coordinate with project proponents, for example, of cassava project, of malapapaya, and others. This is best described by the presentation of Hibiscus Sabdariffa Linn or Roselle. Of course, with the permission and assistance of Mr. Albert Garcia.

   Roadshows must be very interesting since only the vital and important points and overviews will be discussed in here. These should entice or encourage the farmers and other entrepreneurs to participate the training proper wherein details will be discussed.

1.b Trainings and Seminars.

   Trainings or preparations to it will formally start February 10, 2004 with an expected participants of at least ten (10) people which will continue the whole month. Although the initial reaction from the first invitation sent draws nod from the officers/staff/other members of the cooperatives and hesitation from the farmers who are busy in the farm, it is highly encourage that the farmers themselves participate the training. The module for this training will focus on basic computer operation, internet browsing and registration on e-commerce websites. Training kit will be prepared by QUESO in coordination with the Provincial Information Management Office (PIMO); and Mr. Oscar A. Camara, Jr. will temporarily act as trainor. Tagalog or a mix of Tagalog and English will become the medium of teaching. Registration fee of P250.00/per participant will be collected from the participants to provide trainees with training kit and snacks. On this batch of training and its evaluation that policies and scheduling can be streamlined.

2. Creation of Website

   Even though farmers can post their products on their preferred e-commerce website and on as many sites as they want, still it is necessary for them to find a website they can call their own. During the training proper, farmers will learn that not a few e-commerce websites are waiting for them to post their products. One very popular and succesfull e-commerce website in the Philippines today is www.b2bpricenow.com wherein trading between parties from every part of the country had been going on for almost four or five years. As we will encourage Quezon farmers to take advantage of b2bpricenow.com’s popularity, QUESO must also provide a portal which caters to the special needs not only of our farmers but of all interested entrepreneurs from Quezon.

   This portal or website, namely www.quezon.gov.ph, intends to provide the farmers not only a free space for posting their products but more importanly give them assurance that this site will perform active or agressive marketing. All marketing expense paid. QUESO will make sure that this site will appear on all search engines available on the planet, monitor all transactions that occured on the website, keep record/data of interested buyers, their interest and history of trading; count hits and visits, keep track of the most visited recommending sites, streamline, benchmark, and many others.

   In building an e-commerce website, QUESO must take into consideration the following:

• Web Server - QUESO can choose between hosting its data in a web server offered by providers in the US or in the Philippines and maintaining its own web server. The former has the advantage of easy maintenance or nothing of it at all. This option however is more expensive and more difficult to customize. The system administrator will be constantly contacted before you can do a single change in the configuration. Every bit of data has a corresponding cost, not to mention the applications or techonology that is required by the language used in programming.

Maintaning its own web server, however, would mean paying attention into details like the following:

• Server - The hardware or a computer with an operating system for a server. This computer will be used for this sole purpose only.

• Internet Connection - A web server does not server its purpose if it is not connected to the internet. A DSL (Digital Subcriber Line) with static IP (Internet Protocol) address will do.

• RDBMS - Or what is the database? Since this is a dynamic website we are trying to build, we have to assume a database of some kind, or we need to decide which type of relationsl database system (RDBMS) we will use. It is advised to consider a server-based database product (such as Oracle, MySQL, or Microsoft’s SQLServer) since we will work for a large-scale applications.

• Frontend - Hypertext Markup Language (HTML) together with Coldfusion Markup Language or CFML (which includes SQL of Structured Query Language and Java and Java Script compatibility) will be the technology that is expected to use.

• Computer Programmer - He will determine the various elements of the system and program the application. This person will also determine the database structure (tuning the database, adjusting indexes, scheduling maintenance, implement network policies, and the like). In reality, this job requires at least four (4) people. But for a single system and a simple e-commerce project, he can also act as the project manager.

   Actually, all of these can be initially provided by the PIMO. But as operation would go, data will surely overflow. Although coldfusion is a multithread application which can serve as many as 50 visitors simultaneously, the bandwidth and the space available in the current webserver cannot accomodate such transactions. Besides, its programmers have their respective ongoing projects or system that are currently being pilot tested.

   This aspect, however, must not be considered as a problem but as another business opportunity. Putting up a website is not just a money-spending venture but in itself a business. Besides, Mr. Edgardo Herbosa is right when he said information technology is just a mere important tool in doing business. That drove him to his first step: Herbosa took in putting up B2Bpricenow.com was to present his proposal to Unisys Philippines four years ago, which at that time was looking for projects to help the government alleviate poverty through information technology. Herbosa and his partners were able to convince Unisys to take care of the Web design, programing and hosting of the site. In exchange, Unisys got to own 5% of B2Bpricenow.com. During the writing of this business plan, initial meetings with business solutions company had been made and positive responses had been expressed. This is not just an option FOC (free-of-charge) but will give this business a wider network and better job focus.

   We foresee then a partnership between the Provincial Government of Quezon thru the QUESO, the technical partner who takes care of the information technology, and the affiliate bank(s) which will facilitate payments.

3. Coordination and Outsourcing

   We believe that QUESO is one office that is unique and will function no other government offices has done. One job that would be exclusive of this office is the promotion of product “clustering” or as the economists call it, “managed asset relation.” Farmers will be informed of the benefits they willl gain from clustering as well as be provided with the assistance they need to implement and facilitate the access to these benefits*, like:

• Clustering helps bring down transaction costs as it is easier to collect products from craftsmen in the same village and lessens the need for middlemen.

• Volume orders are cheaper to fulfill which attracts bigger buyers from city and foreign companies.
When enterprises are united under a common product line, they can build up their social capital then form cooperatives for credit and whole sale purchases.

• Clustering also results in faster upgrades.

• Entrepreneurs see new techniques employed by the most progressive in their ranks and technology is then copied.

• Allows artisans to employ division of labor like grow the raw materials, process into goods, while the rest apply artisan touches.

• The entrepreneurs get to share in the costs and the risks of innovation. Allows artisans to employ division of labor like grow the raw materials, process into goods, while the rest apply artisan touches.

• The entrepreneurs get to share in the costs and the risks of innovation.

QUESO is also expected to coordinate but does not limit itself with the following agencies:

• Farmers Cooperatives - This Office will coordinate with matters related to information dissemination, roadshows, trainings, development program integration, providing them of other supports and services available.

• Department of Agriculture and Provincial Agriculturist Office - Field personnel of the Office of the Provincial Agriculturist in coordination with DA Agribusiness and Marketing Assistance Services and Agricultural Training Institute will be constantly contacted to gather information from cooperatives and farmers every harvest time or even during planting season, an estimate of projected harvest and post them on line.

• Provincial Information Management Office - Information techonology matters including consultation and training can be provided by PIMO. Appropriate materials, training venue and schedule of training should also be coordinated with this office.

• Provincial and Municipal Planning & Development Coordinators (MPDCs) - MPDCs having the direct access and contact with their farmers and cooperatives are in better place of monitoring the success/failures of the project in their respective municipalities. They also have their existing development programs which must align to the objectives of this project.

• Department of Trade & Industry and Department of Science and Techonology - These agencies have programs that are proven to be of help during the past, not only in the production, and packaging of farmers’ produce but more so in marketing. E-commerce Act has assigned DTI as one of the lead agencies in the implementation of this law.

• Partners and Affiliates

Banks. We need banks to participate in this project to back up the cooperatives and the farmers in putting up their business. Payment can also be facilitated by the system they think most appropriate. Technical Partners and others. Like the Unisys of B2Bpricenow.com who should take care of the Web design, programing and hosting of the site.


Legal Structure

   The E-Commerce for farmers cooperatives project was conceived by F4B Group in October 2003 and plans to implement it in first quarter of 2004. A separate office on E-Commerce will be formed in the Provincial Government under the supervision of the Provincial Administrator through an Executive Order of the Provincial Governor. The four members of F4B shall comprise the team of coordinators, supported by three staff members.

Location

   The business office QUESO will be located at the ground floor of the Office of the Governor at the Provincial Capitol Compound in Lucena City. It will share office space and facilities, temporarily with the Provincial Governor’s Office.

Management

   The office, created by an Executive order of the Provincial Governor Wilfrido L. Enverga, shall be under the supervision of the Provincial Administrator, Mrs. Evelyn S. Abeja, who also acts as the team’s supervisor and will support this office in the implementation management of its projects and activities. The job description of the coordinators and responsibilities are as follows:

• Perry Osmond, Marketing and Finance Coordinator.

• Oscar Camara, Jr., Technical Coordinator. Oscar Camara possesses many years of Internet use experience and deep understanding hardware and software applications.

• Zaldy Garguez, Public Relations and Linkages Coordinator.

• Luzviminda A. Torres, Agriculture and Fishery Coordinator. An agriculturist by profession, she rose from the ranks in the agriculture office of the government. Her varied experience as Farm Management Technologist, Information Officer for more than 20 years, Crop Research Development Specialist and now as Supervising Agriculturist in the Office of Provincial Agriculture has given her as extensive insight and understanding of the issues and concern of agriculture and fishery sector.

 

Personnel

   A total number of employees to be added and hired initially will be three. Interviews and screening will be conducted for each screening. They will undergo training to be fully equipped and knowledgeable of the business.

• Trainor
• Coordinator
• Computer Operator

Training - All employees will be cross trained in the following areas:

a. Knowledge of product line/services and familiarity with the process
b. Daily Sales/Transactions Reconsciliation Report
c. Office policies regarding client relations
d. E-commerce FAQs

Personnel Duties

Trainor. Must have a grasp on basic computer operation, knowledge of agricultural profile of the province, must be able to answer all possible e-commerce FAQs. Write training schedule. Report directly to the project manager.

Coordinator. Coordinate with the agencies concerned. Conduct telemarketing. Must know how to drive. Report directly to the Project Coordinator on Marketing.

Computer Operator. Conduct internet research and create a list of customers. Monitor transactios in the website. Report directly to the Project Coordinator on Technical.

Employee Profile

1. Personable, outgoing, reliable, in good health
2. College background
3. High integrity and dedication
4. Neat in appearance
5. Able to take on responsibilities
6. Able to follow directives
7. Demonstrates leadership qualities
8. Previous working experience
9. Basic office skills
10. Sincere interest in e-commerce and agri-production
11. Team worker

Accounting and Legal

Accounting

   The E-commerce office, being an integral part of the Provincial Government shall be subject to according rules and procedure accepted and protected by the Provincial Accounting Department. The said department will handle all bookkeeping and accounting activities.

Legal

   All legal aspects of the project will be handled by the Provincial Attorney’s Office. Contact information is presented below:

Atty. Ariel Radovan
Provincial Attorney Office
Provincial Capitol Compound
Lucena City