Operations audit of the UP-AFI technology business incubator / Marileth U. Enriquez

Year : 2004

Number of Pages : 50 leaves

Adviser : Prof. Edward Deveza

Executive Summary

The UP-AFI Technology Business Incubator (TBI) was built in 1993 with a grant from a government agency, the Department of Science and Technology (DOST). The TBI is part of the Joint Experimental Facility on Technology Development and Technology-Based Entrepreneurship (UP-AFI JEF) and located in a 5-hectare area within the University of the Philippines-Diliman Campus Science & Technology Park's south sector. The UP-AFI TBI was created with the following objectives : encourage collaboration between the academic community and industry, develop a model that will produce the manpower needed by the country to become globally competitive in information and communication technology. Both the University of the Philippines (UP) and Ayala Foundation Incorporated (AFI) has their own responsibilities in achieving these objectives. UP has the responsibility of providing an adequate space, while AFI will take care of managing the entire facility. The UP-AFI Technology Business Incubator (UP-AFI TBI) is the first facility in a future expanded complex that provide dedicated space to companies that have evolved beyond the inculcation period, allowing the benefits of co-location and next phase growth envisioned in five years. The UP-AFI TBI focuses on technologies in the field of ICT. The UP-AFI TBI has been through a series of changes. The established objectives of the facility are noble. However, there are factors that inhibit the UP-AFI TBI from achieving these goals. It is high time to find out what these factors are, thus an operations audit is necessary. This project assessed and evaluated the operations and operating procedures of the UP-AFI-TBI. An operations audit was done to determine if UP-AFI TBI is conducting activities economically and efficiently towards achieving its objectives. These findings were compared with selected international business incubators similar to that of UP-AFI TBI. The international incubators will serve as a benchmark. From this comparison, gaps were identified and from these gaps recommendations on ways on how to improve its operations will be formulated. The experiences of China, Taiwan and India clearly showed that the UP-AFI TBI could stil achieve its goals of becoming a model for other TBIs in the country if and when it can improve on its weaknesses and develop its strengths. One of the weaknesses identified that must be immediately addressed was the lack of a "full-time manager" for the UP-AFI TBI. The strengths of the facility were also identified. The location and the proximity to possible consultants were some of the strengths emphasized. The following are some recommendations that were based from the interviews conducted and experiences of China, Taiwan and India. (1) Strengthening of the management team (2) Improvement of the physical facilities (3) Provision of support services (4) The selection criteria and process should be modified to better identify businesses with real growth potential (5) Establishment of an evaluation and monitoring process (6) Creation of appropriate exit/graduation criteria (7) Institution of a program to attract faculty and students (8) The objective of the UP-AFI TBI should be made clear not only to the management as well as the current and prospective locators (9) Improvement of the communication process among the locators and the management (10) create awareness of the importance of the TBI (11) collaboration and networking (12) institution of IP policies (13) sources of funding (14) setting up of a library and (15) construction of another TBI facility as soon as possible. The management of the UP-AFI TBI must closely review the above recommendations and determine if these could be applied to the facility. They should also continuously perform benchmarking activities in order to gauge if the UP-AFI TBI is at par with other TBIs in the country and the world and if it is already in the process of fulfilling its goals and objectives.