The document discusses cross-industry innovation driven by cloud computing and the Internet of Things. It provides examples of how cloud computing has changed the role of networked devices from information processing to information handling. This new process flow enabled by cloud computing can be applied across many industries and business processes. The document also discusses examples of innovation in Japan, South Korea, and China driven by developments in cloud computing, the Internet of Things, and mobile technologies.

1. Cross-Industry Innovation –
Driven by Cloud and Internet of
Things
Finpro Asia
SWDM Day
13/11/2012

2. Introduction
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3. What Happened until Now and What will in the Future?
[Device]
• Concept of ubiquitous computing in telecom business
and service industry has been here for a decade.
• Many application-specific-computer-resources in our
daily life are now connected via network.
• Networked computer resources are now growing
rapidly, not only linking “people-to-people”, but also
“people-to-thing” and “thing-to-thing”.
• IOT: Internet of Things has already arrived.
• Functional cluster of networked computer resources is
becoming more prominent which leads to the eventual
standardization in structures of devices.
Ubiquitous Society in Japan, AToN – All Things
on Network in Korea, Internet of Things in
China.
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4. What Happened until Now and What will in the Future?
[Cloud]
• More convergence of networked computer resources
• More advanced utilization of broadband internet and networked computer resources.
• Cloud computing has become more applicable to every networked devices. It
improved the performance and quality of ICT applications by placing core software
modules of application-specific-computer-resources in the cloud.
• Cloud-ization is changing the role of networked devices from information processing
to information handling. This new process flow is so powerful which can be applicable
to many different work processes, business processes, production processes as well
as lifestyles.
Basis of cross industry innovation
Cloud Computing Resources
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5. What will Happen in the Digital Domain?
• Business processes will be digitized and networked gradually.
• ICT will act as a coordinator to these newly digiti business processes,
bonded together across industries, and generate new ways of business
processing.
• Migration will be gradual, based on the advantages and readiness of cloud
and IOT for respective industry segments.
• Japan and South Korea are regarded as driving forces in Asia.
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6. Part One: Japan
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7. Japan: METI’s View on Competitive
Advantage in Smart Society
• Information Economy Committee of the Industrial Structure Council under METI
(Ministry of Economy, Trade and Industry) is:
• Ensuring the competitive advantage in Smart Society, and
• Analyzing changes in the industrial structure from the perspective of
“digitalization” & “networking”.
• Functions of “digitalization & networking” are changing the use of the internet from
IOC: Internet of Computers to IOT: Internet of Things.
• Impacts of “digitalization & networking” are developing new digitalization technologies
and standards to handle digitized information across industries.
• ICT associates several different business processes, knowledge, know-how, … and
brings innovation to the industry: e.g. smart grid, smart community, mass
collaboration & crowd sourcing, …
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8. Japan: METI’s View on Competitive
Advantage in Smart Society
networking
digitalization mobile handset
user tablet
participation
book & publication
contents
digital appliances
smart grid
robot
TV
un-digital domain smart community
medial & health
social net
automobile & transportation
agriculture game
implicit
knowledge
life log
It x ‘n’ domain
personal tastes & preference
establishment of individual hierarchical structurization of each
digitalization of un-digital domain elemental technologies individual elemental technology
Source: Information Economy Committee of the Industrial Structure Council
Concept of IT x n: cross-industry innovation by ICT
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9. Japan: METI’s View on Competitive
Advantage in Smart Society
Energy: Smart
Community
Contents:
Contents Medical Care:
Creative Smart Health
Business
Agriculture:
Robot: Social
Smart Agri
Robot
System
Automobile:
ITS
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10. Part Two: South Korea
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11. Cloud: KT’s Business Plan
April 2009 March 2010 August December December 2011
Biz feasibility study and Implement the Strategy (build infra ~ develop & launch business ~
Strategy set-up
market analysis operation of business)
Design architecture & Build Cloud Data
Benchmark Center (Okcheon, Launch public cloud Expand public cloud
verification
Mapo)
-Visit 30 foreign -Design HW & SW (Mar -Construct Center
companies overseas ~ July) - Launch IaaS (Dec.) - Commercialize
facilities like electric - Commercialize PaaS
- Benchmark leading - Build and test power, temperature
service providers like verification infra in DaaS (2Q, 2011) - Launch full SaaS
control system etc. - Launch limited
Amazon, Google, Apple Mapo Center (August) (August~December) SaaS
- Apply architecture
(HW & SW
June composition)
BM Develop SaaS-based new BM
Consulting
- BM & business - Review alliance and prepare commercialization
strategy
Private cloud
Oct.2009 June.2010 -KT internal migration to private cloud in 3 phases
October
Plan & develop U-Cloud Launch and operate U- Release additional features of U-Cloud
Cloud
-Plan U-Cloud business - Upgrade UI/UX
-Launch personal consumer service in June (provide i-
- Build infra, develop U-Cloud - Photo printing service
Phone app in July / Android phone app in September)
map, and test - Image search service
- Launch enterprise U-Cloud Pro in August
- Music replay service
13/11/2012 © Finpro Source: KT, 2010 - Build file system 11

12. Cloud: KT’s LTE Warp (CCC)
Olleh LTE Warp NW
Cloud Communication Center (CCC) that
is a cloud virtualization technology is
used to transfer KT’s service from voice
call to data traffic. After CCC separates
DU (digital unit = digital signal
processing) from RU (radio unit =
wireless signal processing), it centralizes
DU in a separate center that is connected
to regional RUs via fiber optic cables. 144
RUs are integrated as if one base station.
Cloud server controls traffic distribution
and signal disturbances among different
RUs. This technology is called LTE Warp
which is faster than normal LTE. SKT
calls this technology “SCAN” (Smart
Cloud Access Network).
Olleh LTE Warp Cell
Distribution in Yangjae-
dong in Seoul (yellow: LTE
cell / red : 3G cell)
Speed comparison among LTE
Warp (54.76 Mbps), 3G (8.06
Mbps), Wi-Fi (18.41 Mbps)
Photo Source: http://2proo.net/1762
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13. Cloud: SK Telecom’s T cloud
Pleasure from connectivity Sharing with Friends Continuous story
Share my contents
Use my contents with friends through Store and use my
seamlessly via any SNS contents any time any
devices device
T cloud Web (PC – T cloud)
T cloud Mobile (Mobile – T
cloud / media scanning )
T cloud Agent (automatic
media scanning from PC to
T cloud)
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14. Cloud: LG’s U+ Box Media
• Personal Media Cloud Service ; Media contents (Video Store, Music Store) and my files stored in the
Cloud storage space can be enjoyed via smart phone, Pad, PC, and U+TV
 10GB Free Cloud storage space for storing/playing my files
 Real-time streaming and download of latest video clips free of charge
 Printing photos in digital camera and mobile phone and public photo books
-Upload and download my - Realtime streaming or download of
-Edit and print -
files easily animation, movies, music, and soap
operas etc. digital photos and
- Enjoy videos in my smart Publish photo
- 3 USD/month for unlimited
phone through TV book at one go
streaming of music in Music Store.
- TV and PC are wirelessly 4 USD /month for unlimited watch of
connected SBS’s paid contents in Video Store
- 3 USD per month for 100
GB Automatic Back-up :
Automatic Back-up of Videos & photos By setting “Automatic
photos and videos in my that are not back-up”, my latest
smart phone backed up in photos and videos
U+Box App are are automatically
notified for ‘Upload backed-up in U+Box
Now’ while the phone is
being charged
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15. Smart Grid Roadmap
Phase 1 Phase 2 Phase 3
(2010~2012) (2013~2020) (2021~2030)
Metropolitan Areas Nationwide SG
Test Bed Complex
(Intelligent (Intelligent Power
(Technical Validation)
Consumers) Grid)
• Possible PG failure prediction
• Power grid • Linking PG with other
• Real time PG monitoring • Self-recovery power grids
monitoring & Control countries
Smart Power Grid • Digital power transmission • Nationwide integrated energy
• Failure prediction & • Connect power delivery
• Optimal distribution system smart grid
automatic recovery system with DG and power
storage devices
• Smart meters • Intelligent home power
• Smart power management of
management • Zero energy buildings and
Smart Place • Automatic energy • Various offering including
buildings and factories
homes
management • Consumer power generation
pricing
• Commonplace EV and
• Nationwide charging • Expand EV charging facilities
charging facilities
Smart • Test of EV charging facilities across the nation
• New charging methods
infrastructure • EV pilot projects • EV maintenance &
Transportation • ICT-based EV control • Portable power storage
management technologies
devices
• High capacity
renewables • Optimal operation of the power
• Microgrids connecting • Commonplace high capacity
Smart system with microgrids
generation complex distributed generation, power
• New applications of power
new renewable energy source
Renewables • High capacity energy storage device and EV • Commercialized microgrids
storage device
storage
• Various pricing • Transactions of electrical • Various types of power
• Consumer’s choice of
power derivatives transaction
Smart Electricity system electricity rates
• Nationwide real time pricing • Convergence business with
Service • Consumer electricity • Consumer’s selling of
system power industry
trading system renewable energy
• Voluntary market participants • Northeast Asian market
Over the period, Korea will invest KRW 7 trillion ($6B) in R&D and KRW 20.5 trillion in infrastructure
deployment
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16. M2M: Vehicle
Blue Link (Hyundai Motor Company)
• Vehicle telematics service developed with MS
• Interoperating smartphone and tablet PC on Vehicle
• Gesture Recognition  Near distance motion recognition
moustick
• Remote starting and air conditioning; Remote door
Smart open/close; Parking spot alarm; Automatic
Control information transfer between car navigation and
smartphone / PC
• Auto-transmitting air bag deployment; SOS
Safety services; Burglar alarm system
Car • Car diagnosis; Supplies management; Regular
Care inspection report; Eco drive coach
Assist • Content (Weather, Traffic info, etc.); Hot-spot
Info • Phone, Concierge service, ARS
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17. M2M: u-Health
Samsung expects M2M synergies among the family companies and focusing on
developing technologies of smart metering, e-health care, security & safety,
digital signage
Samsung’s Heath care blueprint
System Service Support Users Samsung Electronics
• Control U-health business
Device • Biosimilars
(Electronics) • Medical Devices
Samsung Samsung SDS
Bio-phamaceutique
SMC Life Patients
(Electronics) • Bio-infomatics
Insurance
Diagnosis Eq. Samsung Techwin
(Techwin)
• Blood Diagnosis Eq.
• Gene Diagnosis Eq.
• Diagnosis Reagent
R&D Support
(SMC, SAIT)
Samsung Electricity
• Bio-inspired Cell Chip
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18. Shipbuilding by 2020
현재(2010) 5년(2015) 10년(2020)
• Technology for • Integrated network for • Global maintenance
controlling navigating ship and repair technology
equipment
• Design visualization • Intelligent navigating
• Low speed satellite technology information system
communication
technology • Localizing navigating • Auto-pilot technology
system
• Technology for Off-
shore plant
Ship Digital Ship Smart Ship
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19. Part Three: China
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20. China’s 12th Five-Year Plan (2011-2015)
INDUSTRIES
FOCUSES
Energy
Rebalancing
the economy Health care Technology
SEIs:
Energy conservation and
environmental
protection.
Biotechnology,
Promoting Protecting New material,
social the Next-generation IT,
equality environment
High-end equipment
manufacturing,
New energy, and
Clean-energy vehicles.
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21. Rebalancing the Economy
China economy is now shifting from the current reliance on fixed asset investment (FAI)
and exports to a greater emphasis on domestic consumption.
• Growth rate:
• Down to 7%.
• Strategic Emerging Industries (SEIs):
• Energy conservation and environmental protection.
• Biotechnology,
• New material,
• Next-generation IT,
• High-end equipment manufacturing,
• New energy, and
• Clean-energy vehicles.
• Consumption:
• From 35% to 40% of GDP by 2015.
• Industrial upgrading:
• New manufacturing equipment and technology, and
• Certain industry sector consolidation.
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22. Promoting Social Equality
President Hu and Premier Wen had again prioritized the development of a “harmonious
society” a key focus in the 12th FYP.
• Urban/rural divide:
• To reduce the quality of life gap between urban and rural residents, by improving
social safety nets for rural population, such as basic health care coverage and
improved rural land distribution.
• Regional development:
• To incentify development of the West
through preferential policies such as
land credit, lower taxes and subsidies
for manufacturers.
• Income disparity:
• To increase income of normal citizens
through raising of minimum wage,
expansion of government-funded
social welfare and health care system,
and promoting labor-intensive service
industries.
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23. Protecting the Environment
China is focus on reducing pollution, increasing energy efficiency and ensuring a stable,
reliable and clean energy supply.
• Energy conservation:
• Development of energy-efficiency technology, and
• Mandatory energy emissions target of 17% down from previously 20%.
• Environmental quality:
• Green indicators are planned,
and
• Pledge to reduce 40-45% of
carbon per unit of GDP by
2020.
• New energy:
• % of energy from non-fossil
fuels increase from 8.3% in
2009, to 11% in 2015 and
15% by 2020.
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24. Sectors to Watch
Health Care Energy & Environment Tehcnology
• Health care system reform continued: • RMB 3 trillion investment in the sector, • “Designed in China”
• Broader basic health care coverage, with the industry growing by 15-20% • Investment in science and technology
• Expanded infrastructure for grassroots annually. education and R&D, and IPR system.
medical networks, • Coal as the dominant energy source, • Indigenous Innovation Supported
• Public awareness in disease prevention, while steadily increasing proportion of Research & Development: core
renewables. electronic, IC, life sciences, space,
• Improved health care administration,
• Consolidation in Coal Sector by 2015 marine, earth sciences and nanotech.
• Creation of national health care
benchmarks and standards, and • From 11,000 companies to 4,000, with 8- • Intellectual Property: creation, use,
10 expected to account for 2/3 of protection and management.
• Heavy investments in health care IT.
production. • Administration: financial policies and
• Pharmaceutical sector restructured:
• Nuclear and Hydropower Growth by supports to high-tech research funding
• Consolidate 13,000 distributors 2015 and VC investment.
• Commercialize its pharmaceutical • Increase nuclear power reactors from 11 • Commercialization: from government-
distribution industry into: to 25, doubling to 2% of nation’s power sponsored researches to marketplace.
•1-2 Nationals, each sales RMB 100 B capacity. • “Informatization” Increased
•20 Regionals, each sales RMB 10 B • Increase hydropower’s capacity by 50%. • Technological capability upgrades of
• Biotechnology Promoted as an SEI: • Further Development of the Power private and public services, e-commerce,
• Innovative biotech products, high-end Grid e-government and statistics systems.
medical devices and patented medicines. • In 2009, 30% wind farms not grid- • “Triple play” (convergence of telecom,
connected. broadcasting and Internet),
• Constructing large-scale smart grid, with • Education Sees Heavy Investment
investments to exceed RMB 17 billion. • Reform in science & tech educations
• Heavy Spending for Energy and • Talent recruitment and nurturing
Environment Sectors (3 of 7 SEIs) • Return of even more highly-educated
• New energy sector: nuclear, solar and overseas Chinese
wind sectors. • Next-Generation Information
• Energy-efficiency and environment Technology Promoted as an SEI
sectors: waste recycling and clean coal • Next-generation information networks,
technologies. mobile communication and the Internet,
• New energy vehicles: battery cell in particular, "Internet of things" and
technology, 1 million electric vehicles cloud computing.
production by 2015.
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25. Incredible Things that Happen Every 60
Seconds on the Internet in China
http://www.businessinsider.c
om/incredible-things-that-
happen-every-60-seconds-
on-the-internet-in-china-
2011-12
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26. Finpro SWDM / ICT
key experts in Asia
Eija Tynkkynen and Justin Di
Beijing , China
Tanaka Koichi. Tokyo, Japan
Ambika Oberoi . Delhi, India
Yoon-Mee Kim. Seoul, Korea
Ryan Yao, Shanghai, China. Eric Cheng. Hong Kong. China
Nelson Chen, Guangzhou, China
Corina Chen. Taipei, Taiwan.
Pietro Karjalainen, Vietnam & SEA
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27. Thank you
Koichi Tanaka, Japan
koichi.tanaka@finpro.fi
Yoon-mee Kim, South Korea
yoon-mee.kim@finpro.fi
Eric Cheng, China
eric.cheng@finpro.fi
© Finpro 27