Bosch celebrates 20th year of innovation in PH
THIS January, I celebrated my first year in the Philippines. Being with Bosch for 31 years, I have been posted in several designations and various divisions in the company’s key offices across the world. But this post as managing director of Bosch Philippines marks the first time I have been tasked to oversee our operations in an Asean market.
After spending just a little over a year in this current position, I have come to realize that there are so many misconceptions about the Philippines that prevail among foreign investors.
Unfortunately, the Philippines is probably known more for its typhoons than its market potential. I believe that the image of the Philippines is severely undersold internationally and I have made it my personal mission to focus on two things:
To promote the favorability of market conditions for foreign investment and position the Philippines as the high-potential trade partner that it truly is; and,
To help the country realize its potential outside of, and in addition to, its highly successful services sector.
The Bosch brand has been available in the Philippines since 1926 and became a wholly owned Bosch subsidiary in 1995. Our growth and expansion in the last few years is testament to the improvement in ease of doing business in the country.
In 2013, we expanded our geographic footprint with the opening of our Cebu and Davao business hubs.
For the short and medium term, our aim is to establish more of the company’s product divisions. Franchising opportunities are also being tapped for our Bosch Car Service network, which we hope will attract entrepreneurs and Filipino businessmen. Currently, the Bosch Car Service workshop concept under Bosch’s Automotive Aftermarket division has 34 accredited workshops all over the Philippines. Bosch Car Service workshops, Diesel Centers, and Diesel Service Workshops have an impact on the country’s fight for clean air, as it provides expert, cross-brand service in the field of automotive electrics using the most advanced diagnostics equipment developed with German precision.
Innovative concept
One of our partners recently earned the distinction of operating the country’s first Bosch diesel cleanroom—an innovative concept that enables workshops to disassemble, filter, clean and reassemble diesel fuel injection systems in an isolated and controlled environment using highly accurate Bosch technologies for diesel system diagnostics and repair. The effort to minimize emissions will be greatly increased with the availability of Bosch’s diesel engine expertise, by enabling vehicles to run at optimized performance.
We also look forward to more partnerships that will help bring us closer to our customers.
The sustained progress of several verticals, and the enactment of positive government policies have also helped our business divisions see growth.
The Power Tools division of Bosch has continued to grow in the Philippines and has proven to be one of the strongest divisions locally. Driven by industry-leading brands such as Bosch Professional, Skil, Dremel and Sia, they posted a double-digit growth in sales, bolstered by an aggressive real-estate and property development sector.
Bosch established its security systems business group in the Philippines in 2011, which also include public address and conference systems. Our security systems group has been responsible for equipping the conference systems of the Philippine Senate, Philippine Congress and the sound system of the largest indoor stadium in the world, the Philippine Arena. And as new laws in the Philippines mandate that buildings adopt security systems such as CCTV cameras, fire alarms and flood detection systems, Bosch is poised to address the growing need for safety and security equipment, not just for commercial establishments but for residential as well.
Our BPO business in the Philippines is growing exponentially as well. Bosch Service Solutions in the Philippines was established in 2010 and currently serves as the Asia Pacific Business Process Outsourcing hub for the Bosch Group, providing IT Helpdesk services 24/7. It also supplies IT helpdesk services for travel and manufacturing industries in the region, as well as the US and UK markets. The talent pool is truly world-class, and has been a driving force in the continuing growth of our BPO business here in the Philippines. In 2014, we grew to 300 associates. I am confident that we will continue to evolve our BPO operations to include many more services such as HR, customer service, finance and possibly other high-value capabilities in the near future.
But the Philippines also has an opportunity to go beyond its reputation as one of the world’s leading BPO providers, with many industries having the potential to attract foreign interest.
Renewable energy
Most notably, the country’s renewable energy (RE) potential is experiencing a surge in investments.
As a leader in RE and alternative energy technologies, Bosch has the opportunity to become a future partner of RE growth in the Philippines. With the country’s FIT rates and implementing rules and regulations now established, Bosch can move forward with its plans to work with the government and industry in exploring the potential of wind energy in the Philippines. Bosch, through its RE arm Rexroth AG, has developed the leading technologies in wind turbines and also offers technologies for charging power batteries of electronic vehicles.
We intend to tap into the emerging technologies in microelectronics, such as the Internet of Things (IoT). With the advent of IoT, Bosch has become a key player in the Philippines with the production of microelectronic mechanical sensors (MeMs) via tier 1 suppliers, which will power the next generation of wearable and embedded technology.
One in every 2 smartphones worldwide is now powered by Bosch sensors, and will be in many other devices in the near future. Two suppliers of packaged Bosch MeMs are in the Philippines, thereby cementing Bosch Philippines’ place in the IoT space, and providing the country with an opportunity for significant economic growth through the manufacture of semiconductor and electronic sensors.
At Bosch, our leitmotif is “Invented for Life.” Our innovations are not made for the sake of technological leadership, but rather, borne out of an ideology to improve lives, increase efficiencies of businesses, and enrich communities for the present and the future. Bosch products and services are designed to fascinate and improve the quality of life by providing solutions that are both beneficial and innovative.
Research and development (R&D) is the cornerstone of our ability to innovate. In fact, Bosch commits between 8 and 10 percent of our total sales revenues on R&D. In 2013, the Bosch Group invested some 4.5 billion euros in research and development and applied for some 5,000 patents. This is an average of 20 patents per working day. Bosch believes that innovation is brought about by healthy competition, exposure to many international players, embracing cultural diversity, enabling us to do the right thing at the right time in the right place.
As I continue to lead my team here in the Philippines, I have a profound sense of both pride and excitement, knowing that there is no better time to be in the Philippines than now. Asia Pacific is a focus region for Bosch, with Asean as the fastest growing region. The average GDP growth rate in the Asean region is 4 to 5 percent—and the Philippine economy is growing faster than the Asean regional average at over 6 percent GDP.
To be here at this time, I am personally full of optimism at being in the midst of this huge progress and development potential.
Driving force
Bosch Philippines is determined to become a driving force in the country’s progress, particularly as it enters into a new era of economic integration in the Asean region. The region is a market with great opportunities for growth, and holds significant potential for Bosch.
In the case of the Philippines, increasing foreign direct investment can be viewed as a picture puzzle—all the pieces are there, we just have to put it together. This is why I welcome and look forward to closer coordination with the chambers of commerce, relevant agencies of the Philippine government, such as the Department of Trade and Industry, and key players in the country’s business segment so that further dialogue can be made to attract more foreign investments.
Many people recognize Bosch as the leading brand in automotive equipment and construction power tools. However, Bosch offers more than those successful businesses. It is also the world’s leading provider of industrial technologies such as thermotechnology, packaging, industrial drive and control—which are mechanical engineering and hydraulic components for mobile technology and industrial applications—and energy efficiency.
New technologies
Our products and solutions, however, have not yet been fully established in the country, and it is my goal to systematically introduce these technologies into the Philippine market to provide our life-enhancing solutions to more Filipinos than ever before.
Liberalization would certainly help Bosch bring such innovations into the country, and it would also help the country boost its competitiveness in these areas.
As we commemorate our 20th year in the country, Bosch remains strongly committed to the Philippine market through continued investments in expanding its business through product diversification, partnerships, training and employment growth. Delivering compelling CSR programs is also our key focus, because Bosch believes that a strong nation is built by ensuring that future generations of innovators are developed and motivated to become productive members of the community.
I am excited at the prospects the new year will bring to my new adopted country. In the Philippines, it has been a thrilling first year for me, and a fruitful two decades for Bosch.
(The author is managing director of Bosch Philippines.)
