Ayala positions itself at the forefront of 'new economy'

Ayala Corp. is gearing away from traditional business by investing heavily in technology which is expected to bring the conglomerate to the forefront of the "new economy."

Jaime Augusto Zobel de Ayala, Ayala Corp. president and chief executive officer, was very visible during the past few weeks promoting the company's Internet-related initiatives.

"There can be no delay. We will craft our strategy to fit unique Asian conditions and we will carefully, skillfully, leverage our important portfolio of intangible assets and our business positions to build new e-businesses. But we will not build mundane e-businesses just for show. We will only launch businesses that have the prospect of being winners in their competitive arena," he pointed out.

The firm's Internet strategies which include myAyala.com, broadband, Internet support services, Ayala Internet Venture partners, and WNet, will be implemented through the newly established iAyala.com in collaboration with its other financial, real estate and telecom subsidiaries.

MyAyala.com is a lifestyle and entertainment portal which will be an online shopping site of Ayala Land and will be available to customers with the participation of Ayala Center's merchants. Payments will be coursed through its banking arm, the Bank of the Philippine Islands (BPI) while delivery will be handled by Federal Express.

Likewise, Ayala Corp. is tapping Globe Telecom and Isla Communications Co. (Islacom) which have a combined customers base of over 1.5 million, to promote mobile Internet access.

Zobel pointed out that the cellular subscriber base is growing fast while personal computer penetration remains low due to higher costs and low broadband availability.

Ayala Corp., he said, wants to drive and shape the development of wireless so that it becomes the primary web access and e-commerce device for the majority of Filipinos.

On the other hand, BPI will set up a separate unit to provide banking services on the Internet such as bill payments, fund transfers and loan applications and online trading.

Zobel pointed out that Ayala Corp. is well-positioned to venture into the Internet business since it already has the infrastructure and the products.

"Asian conglomerates have extraordinary positions to exploit in the new economy such as powerful brands, vast networks of suppliers and customers, positions in converging industries like telecom and banking and substantial physical positions across major business-to-business markets," he explained.

Zobel admitted, however, that the income contribution from iAyala.com is still difficult to quantify given its infancy stage and there is still no timetable when the firm will be an income earner.