Conglomerates in the Philippines have long been established as drivers of social and economic change. Built over decades or even centuries of growth, conglomerates have become pillars of nation-building, driving job creation, and corporate social responsibility. However, rapid changes in the world have shaken up traditional businesses. Major phenomena like climate change and the rise of new technologies continue to transform everyone—including this nation’s business leaders. As a response to the call of the times, a new identity emerges in the form of a techglomerate.
What is a Techglomerate?
Pioneered by the Aboitiz Group in the Philippines, a techglomerate is the product of a conglomerate’s shift in their goals and operations by embracing change as the new normal. It deviates from the traditional business frameworks, prioritizing modernization and sustainability to significantly improve performance and create exponential value for its customers, stakeholders, and the nation overall.
The Aboitiz techglomerate presents itself as the best of both worlds: uniting the legacy and stability of a 100-year-old conglomerate with the agility and culture of an innovative startup.
Building a Legacy
Many conglomerates in the Philippines have evolved from their small businesses into diversified, huge entities. What started during the Spanish colonial period has withstood the tests of time as many continue to operate for over a century. Multiple aspects contribute to their longevity, including the distribution of their revenue and expenses, capital allocation, and collaboration across companies. Because conglomerates diversify and are present in several sectors, they utilize each other’s resources—be it data or materials—to support their causes. Their presence in different fields allows multiple scattered investments, contributing to the stability of the country’s economy.
Take, for example, the journey of the Aboitiz Group. In the late 1800s, the Aboitiz family ventured into abaca trading and general merchandise in Ormoc, Leyte. They then added inter-island shipping and started transporting goods across Visayas. In 1920, Aboitiz & Company (ACO) was incorporated and has since expanded into diverse areas. They currently have established their mark in fields such as power, banking and financial services, food, infrastructure, land, construction, and one of their most recent ventures—data science and artificial intelligence (DSAI). As time goes by, their identity has become ubiquitous and distinctive, more so that technology is integrated to every unit they have, and sustainability is practiced in all endeavors. This massive shift of focus to innovation marks another feat for the techglomerate, and brings forth another form of legacy in their long-standing presence.
Evolving with Innovation
While legacies are what help conglomerates grow at scale, their ability to adapt to change is what makes them thrive. This culture of transformation is what sets a techglomerate apart.
This is intertwined with their commitment to ceaseless innovation and technology. New, agile business models lie at the heart of a techglomerate, allowing them to take advantage of synergies and achieve sustainable growth across all sectors. They expand into new spaces and ventures, ensuring their relevance and impact for the long haul.
Today, one of these key changes takes the form of the integration of artificial intelligence and data science into their daily tasks, goals, and projects. These technological advancements allow a techglomerate to both identify problems and provide quick, actionable solutions to them.
Partnerships with the public sector are a key step in impacting communities. A techglomerate leads the charge in shaping them and ingraining new possibilities in their daily lives. For instance, the landscape of banking transitions from a fully physical to a dependable and secure digital platform through the Aboitiz-led Union Bank of the Philippines. This does not only set a standard for future financial innovations in the country, but it creates normalcy and full acceptance to the use of technology in such complex daily tasks.
Better than the Sum of Its Parts
Equally important in a techglomerate is the collaboration between the businesses themselves. As previously mentioned, their companies come in different forms and places. It can vary from power and electricity to consumer goods like food. At the same time, one hub or company may reside in another country, establishing multinational transactions. These interlinked groups make up the synergies, which are vital in the operations of a techglomerate. They are natural progressions in companies to achieve growth in multiple ways.
For instance, an entity providing residence to people would need natural necessities such as power, water, and others. This is the case of Republic Cement as it takes fly ash from AboitizPower’s 340-megawatt Therma Visayas power plant in Toledo City, Cebu, and repurposes it as a raw material for cement production. This partnership not only reduces industrial waste but also strengthens the link between sustainable energy and economic development. Such collaborations exemplify how the group’s “mini conglomerates” work together toward shared success.
Driving Change for a Better World
Most importantly, a techglomerate directs its efforts toward long-term impact. This is especially crucial in our rapidly evolving world, where sustainability is at the core of the business and drives decisions; top-performing companies must respond through sustainable activities. As a result, a techglomerate like Aboitiz invests in programs that address pressing challenges such as environmental protection and digital inclusivity in education. The Aboitiz Group established their own environmental, social and governance (ESG) framework, which reviews the impact, practices, and contributions of its operations within the company and its stakeholders. This advances businesses and communities by deliberately identifying the issues around and taking actions to solve them.
Aboitiz Group as a techglomerate also contributes to sustainability efforts in tangible ways through large-scale public infrastructure such as water supply, digital connectivity, and even airports. For instance, the Mactan-Cebu International Airport, operated by Aboitiz InfraCapital, is undergoing a massive improvement in digital solutions, automation, operational efficiency, and enhanced passenger service, all integrated into its sustainable tourism framework.
Additionally, Aboitiz Foundation—the corporate social responsibility arm of the techglomerate—creates life-changing programs like AuroraPH. This flagship program aims to nurture the future generation with quality education by bringing solar power, internet connectivity, and resources to last-mile schools.
The Aboitiz Group consequently finds itself among the top-rated Philippine conglomerates in ESG rankings. This is supported by the consistent “A” ranking of the group in MSCI, and the recognition of S&P Global. All these underscore the commitment of the techglomerate to profound initiatives and sustainability.
Ultimately, the Aboitiz techglomerate carries a greater purpose in nation-building through innovation, synergy, and sustainability. These three aspects represent the group’s timely adaptation to change in creating long-term value for all its stakeholders.
