The Utilization of Information Systems in the Pacific Rim A study of China & Hong Kong, Indonesia, Japan,  North & South K...
The Utilization of Information Systems in the Pacific Rim <ul><li>Government </li></ul><ul><li>Economy </li></ul><ul><li>L...
China and Hong Kong Melissa Holder
China – Quick Facts <ul><li>1.28 billion people </li></ul><ul><li>Population growth of 0.87 percent </li></ul><ul><li>Land...
China – Government Regulations <ul><li>Government regulates each section of IT </li></ul><ul><li>Software cannot be publis...
China – Economic Infrastructure <ul><li>Recession in China’s economy </li></ul><ul><li>GDP grew 7.3 percent, among the hig...
China – Skill Set and Job Market  <ul><li>Over 400,000 college graduates annually in the Engineering and Computer Science ...
China – IS Infrastructure/Utilization <ul><li>Second largest production of PCs in the world with over 7.5 million sold in ...
China – Import/Exports <ul><li>Exports are mainly to Hong Kong and the United States and total $20 billion </li></ul><ul><...
China – Outsourcing Opportunities <ul><li>IT employees have knowledge of English language </li></ul><ul><li>Cheaper labor ...
China – Cutting Edge Technology <ul><li>Adoption of E-Commerce and    E-Government initiatives </li></ul><ul><li>Implement...
Hong Kong – Quick Facts <ul><li>7.3 million people </li></ul><ul><li>Population growth of 1.26 percent </li></ul><ul><li>L...
Hong Kong – Economic Infrastructure <ul><li>Recession in Hong Kong’s economy </li></ul><ul><li>Free-trade for IT products ...
Hong Kong – Skill Set and Job Market   <ul><li>Most graduates speak English as a second language </li></ul><ul><li>Governm...
Hong Kong – IS Infrastructure/Utilization <ul><li>Hardware production is limited to computer parts and accessories, and da...
Hong Kong – Import/Exports <ul><li>Exports are mainly to China, Europe, Singapore, the United States, and Japan </li></ul>...
Hong Kong – Outsourcing Opportunities <ul><li>Government deregulation is a plus </li></ul><ul><li>One of the most advanced...
Hong Kong – Cutting Edge Technology <ul><li>Octopus E-Cash cards (Smart Cards) </li></ul><ul><li>E-Government initiatives ...
China and Hong Kong Comparison <ul><li>E-Government initiatives </li></ul><ul><li>Job market and skill sets of IT employee...
China and Hong Kong Comparison Data: Business Week Up to $180/mo. Up to $390 /mo. Commercial Broadband $24 $48 Taxi to Air...
Indonesia Zach Evans
Indonesia –  An Introduction <ul><li>Population: 215 million – 4 th  largest nation in the world </li></ul><ul><li>World’s...
Indonesia –  Government Regulation <ul><li>Two state-owned telecom companies: PT Telkom and PT Indosat </li></ul><ul><ul><...
Indonesia –  Economic Infrastructure <ul><li>Ten year trend has been away from agriculture towards industry and manufactur...
Indonesia –  Labor Market <ul><li>2001 Unemployment Rate: 8.1% </li></ul><ul><li>1,400 institutes of higher learning </li>...
Indonesia –  IT Infrastructure - Hardware <ul><li>200 domestic companies that product PCs and peripherals </li></ul><ul><u...
Indonesia –  IT Infrastructure - Telecom <ul><li>Most of country connected with copper wires </li></ul><ul><ul><li>Fiber o...
Indonesia –  IT Infrastructure – Cutting Edge Technologies <ul><li>Internet transmission speeds limited to 19,200 kbps or ...
Indonesia –  IT Infrastructure – Cutting Edge Technologies (cont.) <ul><li>Factors that have limited e-commerce initiative...
Indonesia –  IT Strengths & Weaknesses <ul><li>Economy still recovering from Asian Financial Crisis of 1997 </li></ul><ul>...
Japan Shane Morgan
Japan – Quick Facts <ul><li>Total Population (2002)—126,974,628 </li></ul><ul><li>Race—Japanese 99% </li></ul><ul><li>Medi...
Japan – History & Government <ul><li>Founded in 660 BC  </li></ul><ul><li>United in 400 AD as Yamato Japan </li></ul><ul><...
Japan – Govt. Regulations of IS <ul><li>Information-Technology Promotion Agency (IPA) established 1970 </li></ul><ul><li>I...
Japan – Economic Infrastructure <ul><li>Free-market economy adopted following WWII </li></ul><ul><li>Economy grew at unpre...
Japan – IS Skill Sets & Job Market <ul><li>Information and communications industry employed 3.82 million people in 2000 </...
Japan – IS Infrastructure <ul><li>Hardware: </li></ul><ul><ul><li>Shipments of UNIX servers grew 30.0% in the first half o...
Japan – IS Infrastructure <ul><li>Telecommunications: </li></ul><ul><ul><li>Telecommunication Business Law (TBL) privatize...
Japan – IS Infrastructure <ul><li>Imports/Exports of IT: </li></ul><ul><ul><li>IT exports fell 11.6% in 2001 </li></ul></u...
Japan – Foreign Investment <ul><li>Foreign direct investment equals 1% of Japanese GDP </li></ul><ul><li>Number of foreign...
Japan – Adoption of Technology <ul><li>Strong curiosity in new technology </li></ul><ul><li>Japanese are not sophisticated...
North & South Korea Cindy Branon
North and South Korea – Reunification Efforts began in 2000 <ul><li>Family members can reunite for the 1 st  time in 50 ye...
South Korea – Government Regulation of IS <ul><li>Korean Intellectual Property Office- 50% Piracy rate </li></ul><ul><li>“...
South Korea – Economic Infrastructure <ul><li>13 th  Largest Economy – 54% Services, 42% Industry and 4% Agriculture </li>...
South Korea –  Information Systems Infrastructure <ul><li>Hardware -2 nd  in memory semiconductor production </li></ul><ul...
South Korea – Telecommunications and Internet <ul><li>Korea’s IT industry greatest strength </li></ul><ul><li>70% broadban...
South Korea – IT Strengths and Weaknesses <ul><li>Superior telecommunications infrastructure </li></ul><ul><li>Low entry b...
South Korea –  Cutting Edge Technology <ul><li>ITM-2000 wireless service </li></ul><ul><li>VPN market, 34% increase in ’02...
North Korea <ul><li>90% of companies owned by the government </li></ul><ul><li>30% agriculture,32% industry and 37% servic...
North Korea –  Information Infrastructure <ul><li>Pentium and Celeron class CPU production in ’01 </li></ul><ul><li>1 inte...
Singapore Kendall Joseph
Singapore – Quick Facts <ul><li>4.16 million people </li></ul><ul><li>3.38 million citizens & permanent residents </li></u...
Singapore –  The 5 National Shared Values <ul><li>Nation before community &   society above self  </li></ul><ul><li>Family...
Singapore –  Government Regulation of IS <ul><li>Small island with no abundant natural resources </li></ul><ul><li>Recogni...
Singapore – Economic Infrastructure & Impact on IS <ul><li>Global success story of economic growth </li></ul><ul><li>Avera...
Singapore –  IT Skill Sets – Lifelong Learning <ul><li>Level 1 - Infocomm Literacy :  Promoting e-lifestyle </li></ul><ul>...
Singapore –  Job Market Characteristics <ul><li>Ministry of Manpower reports 2,128,500  in labor force (2002) </li></ul><u...
Singapore –  IS Infrastructure & Utilization: Hardware Manufacturing <ul><li>Electronics account for 10% of GDP &  40% of ...
Singapore –  IS Infrastructure & Utilization: Software Development <ul><li>1981 – National Computer Board established to t...
Singapore –  IS Infrastructure & Utilization: Telecommunications <ul><li>1.9 million telephone lines & 2.7 million cell ph...
Singapore –  IS Infrastructure & Utilization: Import & Exports of IT <ul><li>Imports few IT products in relation to what i...
Singapore –  IS Infrastructure & Utilization: Internet Usage <ul><li>Singapore  –  “Internet Island” </li></ul><ul><li>59....
Singapore –  IS Strengths & Weaknesses <ul><li>Strengths: </li></ul><ul><ul><li>Government – Using technology to reshape t...
Singapore –  Opportunities for Foreign Investment <ul><li>Outside investment welcomed </li></ul><ul><li>Recent major inves...
Singapore –  Adoption of Cutting Edge Technologies <ul><li>Singapore defines cutting edge </li></ul><ul><li>Government is ...
Taiwan Brandon McLain
Taiwan: Republic of China
Taiwan – Internet Usage
Taiwan –  Hsinchu Science-Based Industrial Park   <ul><li>Built in 1980, center of  Taiwan's high-tech industrial developm...
Taiwan – Continue IT Success <ul><li>Overall R&D funding will reach 3% of GDP by 2010   </li></ul><ul><li>Establish a worl...
Taiwan – IT Hardware <ul><li>World’s 3 rd  largest supplier of IT hardware </li></ul><ul><li>Local firms produce 25% of Wo...
Taiwan – IT Software <ul><li>Average annual compound growth rate of around 25% </li></ul><ul><li>Development of potential ...
Taiwan – IT Software: 5 Goals <ul><li>Product development   </li></ul><ul><li>Technology development   </li></ul><ul><li>P...
Taiwan – IT Exports <ul><li>Japan accounts for 44.9% of Taiwan’s software exports  </li></ul><ul><li>USA accounts for 33.4...
Taiwan – Foreign Investment <ul><li>Offer telecommunications enterprise services with no investment restriction   </li></u...
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The Utilization of Information Systems in the Pacific Rim

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The Utilization of Information Systems in the Pacific Rim

  1. 1. The Utilization of Information Systems in the Pacific Rim A study of China & Hong Kong, Indonesia, Japan, North & South Korea, Singapore and Taiwan Team Three Cindy Branon Zach Evans Melissa Holder Kendall Joseph Brandon McLain Shane Morgan
  2. 2. The Utilization of Information Systems in the Pacific Rim <ul><li>Government </li></ul><ul><li>Economy </li></ul><ul><li>Labor Market </li></ul><ul><li>IS Infrastructure & Utilization </li></ul><ul><ul><li>Hardware & Software </li></ul></ul><ul><ul><li>Telecommunications & Internet Usage </li></ul></ul><ul><ul><li>Imports/Exports </li></ul></ul><ul><li>Strengths & Weaknesses </li></ul><ul><li>Foreign Investment & Outsourcing </li></ul><ul><li>Cutting Edge Technologies </li></ul>
  3. 3. China and Hong Kong Melissa Holder
  4. 4. China – Quick Facts <ul><li>1.28 billion people </li></ul><ul><li>Population growth of 0.87 percent </li></ul><ul><li>Land area of 9.6 million square kilometers </li></ul><ul><li>GDP grew 7.3 percent </li></ul>
  5. 5. China – Government Regulations <ul><li>Government regulates each section of IT </li></ul><ul><li>Software cannot be published by foreign firms </li></ul><ul><li>Recently joined the World Trade Organization to include the Information Technology Agreement </li></ul>
  6. 6. China – Economic Infrastructure <ul><li>Recession in China’s economy </li></ul><ul><li>GDP grew 7.3 percent, among the highest in the world in 2001 </li></ul><ul><li>China manufactured $23.9 billion in computer products in 2001 </li></ul><ul><li>Mainland China’s government plans to spend $120 billion on the technology infrastructure </li></ul>
  7. 7. China – Skill Set and Job Market <ul><li>Over 400,000 college graduates annually in the Engineering and Computer Science fields </li></ul><ul><li>Most graduates speak English as a second language </li></ul><ul><li>Science and Technology Parks </li></ul><ul><li>Internships/Assistantships </li></ul><ul><li>Job market is declining </li></ul>
  8. 8. China – IS Infrastructure/Utilization <ul><li>Second largest production of PCs in the world with over 7.5 million sold in 2000 </li></ul><ul><li>Telecommunications are semi-regulated. </li></ul><ul><li>ISP’s- 3 (in 2000); Internet users- 45.8 million </li></ul><ul><li>Government officials monitor website for information that is not welcomed by the government </li></ul>Market Size Information Technology 15.0 29.8 Total 26.9 4.9 Information Service 21.3 3.4 Software 11.7 21.5 Hardware Growth Rate Sales Volume (in billions USD) Market Share
  9. 9. China – Import/Exports <ul><li>Exports are mainly to Hong Kong and the United States and total $20 billion </li></ul><ul><li>Imports mostly include products of higher technology such as automation equipment </li></ul><ul><li>Shenzhez and Shanghai are the innovators of Chinese information technology </li></ul>
  10. 10. China – Outsourcing Opportunities <ul><li>IT employees have knowledge of English language </li></ul><ul><li>Cheaper labor costs </li></ul><ul><li>Government regulations a downside </li></ul>
  11. 11. China – Cutting Edge Technology <ul><li>Adoption of E-Commerce and E-Government initiatives </li></ul><ul><li>Implementing ITA regulations in accordance with the World Trade Organization </li></ul>
  12. 12. Hong Kong – Quick Facts <ul><li>7.3 million people </li></ul><ul><li>Population growth of 1.26 percent </li></ul><ul><li>Land area of 1,092 square kilometers </li></ul><ul><li>GDP grew 1.5 percent </li></ul>
  13. 13. Hong Kong – Economic Infrastructure <ul><li>Recession in Hong Kong’s economy </li></ul><ul><li>Free-trade for IT products </li></ul><ul><li>Computer manufacturing is limited to computer peripherals and accessories </li></ul><ul><li>Hong Kong is in the process of deregulating the last part of telecommunications-voice communications </li></ul>
  14. 14. Hong Kong – Skill Set and Job Market <ul><li>Most graduates speak English as a second language </li></ul><ul><li>Government officials have implemented a five-year plan to introduce IT into secondary schools </li></ul><ul><li>Science and Technology Parks </li></ul><ul><li>Internships/Assistantships </li></ul><ul><li>Job market is declining </li></ul>
  15. 15. Hong Kong – IS Infrastructure/Utilization <ul><li>Hardware production is limited to computer parts and accessories, and data storage units </li></ul><ul><li>Software development is produced locally </li></ul><ul><li>Telecommunications are very advanced </li></ul><ul><li>ISP’s- 250; Internet users- 4.35 million </li></ul>
  16. 16. Hong Kong – Import/Exports <ul><li>Exports are mainly to China, Europe, Singapore, the United States, and Japan </li></ul><ul><li>Exports have increased by 15 percent </li></ul><ul><li>Imports are limited to domestic goods, and a limited amount of software products </li></ul>
  17. 17. Hong Kong – Outsourcing Opportunities <ul><li>Government deregulation is a plus </li></ul><ul><li>One of the most advanced technology infrastructures </li></ul><ul><li>IT employees speak English </li></ul><ul><li>Labor is cheaper </li></ul>
  18. 18. Hong Kong – Cutting Edge Technology <ul><li>Octopus E-Cash cards (Smart Cards) </li></ul><ul><li>E-Government initiatives </li></ul>
  19. 19. China and Hong Kong Comparison <ul><li>E-Government initiatives </li></ul><ul><li>Job market and skill sets of IT employees </li></ul><ul><li>Government Regulations </li></ul><ul><li>Advancement of IT infrastructure </li></ul><ul><li>Imports and Exports of IT </li></ul>Similarities Differences
  20. 20. China and Hong Kong Comparison Data: Business Week Up to $180/mo. Up to $390 /mo. Commercial Broadband $24 $48 Taxi to Airport from Downtown $24 $51 Business Lunch for Two $17,000-20,000/yr. $14,500-16,000/yr. International School $500/ mo. $3,500/ mo. Personal Assistant $1,000/ mo. $3,500/ mo. Two-bedroom apartment $1.90/ sq. ft. $6.30/ sq. ft. Prime Office Space (Rent) China (Shanghai) Hong Kong
  21. 21. Indonesia Zach Evans
  22. 22. Indonesia – An Introduction <ul><li>Population: 215 million – 4 th largest nation in the world </li></ul><ul><li>World’s largest archipelago with over 17,000 islands </li></ul><ul><li>Five main islands are: Java, Kalimantan (Borneo), Sulawesi, Sumatra, & Papua </li></ul><ul><li>300 ethnic groups speaking over 350 languages </li></ul><ul><li>2001 GDP: $143.3 billion US </li></ul><ul><li>Basic life principles: mutual assistance, deliberations, and consensus </li></ul>
  23. 23. Indonesia – Government Regulation <ul><li>Two state-owned telecom companies: PT Telkom and PT Indosat </li></ul><ul><ul><li>Monopoly over long distance until 2005 and over domestic service until 2010 </li></ul></ul><ul><li>1994: Government passed law allowing private-company involvement in telecom industry </li></ul><ul><ul><li>Companies are required to collaborate with state-owned companies </li></ul></ul><ul><ul><li>State-owned companies regulate private firm’s activities </li></ul></ul>
  24. 24. Indonesia – Economic Infrastructure <ul><li>Ten year trend has been away from agriculture towards industry and manufacturing </li></ul>
  25. 25. Indonesia – Labor Market <ul><li>2001 Unemployment Rate: 8.1% </li></ul><ul><li>1,400 institutes of higher learning </li></ul><ul><li>Illiteracy is down, school enrollment is up since 1980 </li></ul>
  26. 26. Indonesia – IT Infrastructure - Hardware <ul><li>200 domestic companies that product PCs and peripherals </li></ul><ul><ul><li>Most of these products are exported </li></ul></ul><ul><li>11 out of 1,000 people have access to a PC at home or at work </li></ul><ul><li>58,500 computers installed in schools </li></ul>
  27. 27. Indonesia – IT Infrastructure - Telecom <ul><li>Most of country connected with copper wires </li></ul><ul><ul><li>Fiber optic cables available in large cities but ‘last mile’ connections are copper wires </li></ul></ul><ul><li>2002: 7.6 million main phone lines installed </li></ul><ul><li>2002: 11.7 million cellular phone lines </li></ul><ul><ul><li>Meteoric rise due to dramatic reduction of import taxes on handsets </li></ul></ul>
  28. 28. Indonesia – IT Infrastructure – Cutting Edge Technologies <ul><li>Internet transmission speeds limited to 19,200 kbps or even 9,800 kbps </li></ul><ul><ul><li>Limited bandwidth due to the fact that ISPs buy their bandwidth from PT Indosat in US dollars but get paid in Indonesian Rupiah </li></ul></ul><ul><li>4 million total Internet users in 2001 </li></ul><ul><ul><li>Many access through Internet Cafés </li></ul></ul><ul><ul><li>80% of Internet users live on Java or Bali </li></ul></ul>
  29. 29. Indonesia – IT Infrastructure – Cutting Edge Technologies (cont.) <ul><li>Factors that have limited e-commerce initiatives: </li></ul><ul><ul><li>Lack of a certificate agency (SSL) </li></ul></ul><ul><ul><li>No domestic banks will guarantee Internet transactions </li></ul></ul><ul><ul><li>Package delivery infrastructure is extremely weak </li></ul></ul><ul><li>SPAM complaints in January 2003: 249 </li></ul>
  30. 30. Indonesia – IT Strengths & Weaknesses <ul><li>Economy still recovering from Asian Financial Crisis of 1997 </li></ul><ul><li>If government continues loosing ownership restrictions, investors stand to reap big gains </li></ul><ul><ul><li>Remember: Indonesia is the 4 th most populous country in the world </li></ul></ul><ul><li>State of telecom infrastructure a big problem </li></ul><ul><ul><li>Further deregulation is needed </li></ul></ul>
  31. 31. Japan Shane Morgan
  32. 32. Japan – Quick Facts <ul><li>Total Population (2002)—126,974,628 </li></ul><ul><li>Race—Japanese 99% </li></ul><ul><li>Median Age—33.2 years old </li></ul><ul><li>Land Area—377,835 sq km </li></ul><ul><li>Literacy Rate—99% </li></ul><ul><li>Currency—yen (JPY) ¥ </li></ul><ul><li>GDP (2002)—$3.55 trillion (USD) </li></ul><ul><li>GDP per capita (2002)—$28,000 (USD) </li></ul>
  33. 33. Japan – History & Government <ul><li>Founded in 660 BC </li></ul><ul><li>United in 400 AD as Yamato Japan </li></ul><ul><li>Following WWII: </li></ul><ul><ul><li>2 nd most powerful economy </li></ul></ul><ul><ul><li>Government reformed–constitutional monarchy </li></ul></ul><ul><ul><ul><li>Emperor is figurehead </li></ul></ul></ul><ul><ul><ul><li>Executive branch—Prime Minister and cabinet </li></ul></ul></ul><ul><ul><ul><li>Legislative branch—Bicameral </li></ul></ul></ul><ul><ul><ul><li>Judicial branch—Supreme Court & lower courts </li></ul></ul></ul>
  34. 34. Japan – Govt. Regulations of IS <ul><li>Information-Technology Promotion Agency (IPA) established 1970 </li></ul><ul><li>I nformation-technology SE curity C enter (ISEC) established 1997 </li></ul><ul><li>e-government & e-municipalities </li></ul><ul><li>Basic Law on the Formation of an Advanced Information and Communications Network Society (IT Basic Law) passed 2000 </li></ul><ul><li>e-Japan Priority Policy Program and e-Japan 2002 Program </li></ul>
  35. 35. Japan – Economic Infrastructure <ul><li>Free-market economy adopted following WWII </li></ul><ul><li>Economy grew at unprecedented rates during 1960-1990 </li></ul><ul><li>Major economic recession in 1990’s </li></ul><ul><li>Negative growth in IT between 1996-1999 </li></ul><ul><li>IT investment increased to ¥20.8 trillion (21.7% increase) in 2000 </li></ul>
  36. 36. Japan – IS Skill Sets & Job Market <ul><li>Information and communications industry employed 3.82 million people in 2000 </li></ul><ul><li>Kyodo News survey of 150 Japanese companies: </li></ul><ul><ul><li>90% planned to increase IT investments in 2003 </li></ul></ul><ul><ul><li>31 companies indicated their total investment to be ¥343.5 billion (up 11.8% from 2002) </li></ul></ul>
  37. 37. Japan – IS Infrastructure <ul><li>Hardware: </li></ul><ul><ul><li>Shipments of UNIX servers grew 30.0% in the first half of 2001compared to 2000 </li></ul></ul><ul><ul><li>Shipments of PCs increased 28.3% in the same period </li></ul></ul><ul><li>Software: </li></ul><ul><ul><li>Software market was ¥1.7 trillion in 2000 </li></ul></ul><ul><ul><li>Expected to reach ¥2.9 trillion by 2004 </li></ul></ul><ul><ul><li>ERP market at ¥38.5 billion in 2000 </li></ul></ul>
  38. 38. Japan – IS Infrastructure <ul><li>Telecommunications: </li></ul><ul><ul><li>Telecommunication Business Law (TBL) privatized NTT and introduced competition in 1985 </li></ul></ul><ul><ul><li>Deregulation in 1996 </li></ul></ul><ul><ul><li>Mobile phones outnumber fixed phone lines </li></ul></ul><ul><ul><li>Subscriber Optical Fiber Network to be completed by 2010 </li></ul></ul>
  39. 39. Japan – IS Infrastructure <ul><li>Imports/Exports of IT: </li></ul><ul><ul><li>IT exports fell 11.6% in 2001 </li></ul></ul><ul><ul><li>IT import growth fell from 32.1% to 8.1% from 2000 to 2001 </li></ul></ul><ul><li>Internet usage: </li></ul><ul><ul><li>55.93 million by the end of 2001 </li></ul></ul><ul><ul><li>44.0% penetration of total population </li></ul></ul><ul><ul><li>60.5% penetration of households </li></ul></ul>
  40. 40. Japan – Foreign Investment <ul><li>Foreign direct investment equals 1% of Japanese GDP </li></ul><ul><li>Number of foreign firms increasing by 15% yearly </li></ul><ul><li>Current foreign investors include: Thai Bank, Morgan Stanley Dean Witter, General Electric, Chanel, Ford, Microsoft, Wal-Mart, Deloitte & Touche, Caterpillar, Solo Cup and Cabot Microelectronics </li></ul>
  41. 41. Japan – Adoption of Technology <ul><li>Strong curiosity in new technology </li></ul><ul><li>Japanese are not sophisticated customers </li></ul><ul><li>Japan Center for Economic Research survey </li></ul><ul><ul><li>Japan ranked 14 th out of 31 countries </li></ul></ul><ul><ul><li>Behind Singapore (5 th ) and Hong Kong (10 th ) </li></ul></ul><ul><li>Japan leads Asian nations in IT mfg </li></ul><ul><li>Losing ground in overall IT industry </li></ul>
  42. 42. North & South Korea Cindy Branon
  43. 43. North and South Korea – Reunification Efforts began in 2000 <ul><li>Family members can reunite for the 1 st time in 50 years </li></ul><ul><li>Railways connected in 6/03 </li></ul><ul><li>Gaesung Industrial Complex groundbreaking in 6/03 </li></ul><ul><li>Bilateral inter-Korean trade increased 22% for first 5 months of 2003 vs. 2002 </li></ul><ul><li>CDMA telecommunications system in the planning stage </li></ul>
  44. 44. South Korea – Government Regulation of IS <ul><li>Korean Intellectual Property Office- 50% Piracy rate </li></ul><ul><li>“Cyber Korea 21” - Promote E-Commerce </li></ul><ul><li>KOSDAQ – Stock Exchange for high-tech – 1996 </li></ul><ul><li>Telecommunications – 1990 Privatized and Deregulated </li></ul>
  45. 45. South Korea – Economic Infrastructure <ul><li>13 th Largest Economy – 54% Services, 42% Industry and 4% Agriculture </li></ul><ul><li>IT exports $11.2 billion in’01 </li></ul><ul><li>Major IT Exports – semiconductors, mobile phones, LCDs, PCs, monitors, satellite broadcast receivers </li></ul><ul><li>IT Imports – large computers, transmission equipment, software </li></ul>
  46. 46. South Korea – Information Systems Infrastructure <ul><li>Hardware -2 nd in memory semiconductor production </li></ul><ul><li>Mobile phones – CDM technology, GSM mobile phone </li></ul><ul><li>Exports $7.2 billion in ’01 </li></ul><ul><li>Software – imported, foreign support </li></ul><ul><li>Demand for ERP and E-Commerce doubled number of software companies from ’99 to ‘00 </li></ul>
  47. 47. South Korea – Telecommunications and Internet <ul><li>Korea’s IT industry greatest strength </li></ul><ul><li>70% broadband usage in ’02, VDSL technology </li></ul><ul><li>25.6 mill Internet users, 23.2 mill can access by phone </li></ul><ul><li>E-Commerce – B2B- 89.8%, B2G - 7%, B2C - 2.8% </li></ul><ul><li>$30 mill in 1 st qtr of ’02 E-Commerce transactions </li></ul>
  48. 48. South Korea – IT Strengths and Weaknesses <ul><li>Superior telecommunications infrastructure </li></ul><ul><li>Low entry barriers and telecommunications cost </li></ul><ul><li>Major shortage of IT workers, 40,000, 2006 est. 140,000 </li></ul>
  49. 49. South Korea – Cutting Edge Technology <ul><li>ITM-2000 wireless service </li></ul><ul><li>VPN market, 34% increase in ’02 </li></ul><ul><li>Advanced to 12 th in world for global Informatization level </li></ul>
  50. 50. North Korea <ul><li>90% of companies owned by the government </li></ul><ul><li>30% agriculture,32% industry and 37% services </li></ul><ul><li>$1.048 billion trade deficit </li></ul><ul><li>Computer networks in government and manufacturing </li></ul><ul><li>Optical fiber cable installed nationwide in ‘00 </li></ul>
  51. 51. North Korea – Information Infrastructure <ul><li>Pentium and Celeron class CPU production in ’01 </li></ul><ul><li>1 internet provider, government </li></ul><ul><li>Korea Linux OS system </li></ul><ul><li>“Hana 21”- PDA </li></ul><ul><li>Cellular phones- GMC in ’02 </li></ul>
  52. 52. Singapore Kendall Joseph
  53. 53. Singapore – Quick Facts <ul><li>4.16 million people </li></ul><ul><li>3.38 million citizens & permanent residents </li></ul><ul><li>Chinese, Malay, Indian </li></ul><ul><li>Speak English, Mandarin, Malay, Tamil </li></ul><ul><li>GDP 2001 $106.3 billion </li></ul><ul><li>Per capita GDP $24,700 </li></ul>
  54. 54. Singapore – The 5 National Shared Values <ul><li>Nation before community & society above self </li></ul><ul><li>Family as the basic unit of society </li></ul><ul><li>Community support & respect for the individual </li></ul><ul><li>Consensus, not conflict </li></ul><ul><li>Racial and religious harmony </li></ul>
  55. 55. Singapore – Government Regulation of IS <ul><li>Small island with no abundant natural resources </li></ul><ul><li>Recognizes most important resource is its people </li></ul><ul><li>Low-cost manufacturing to high-tech services </li></ul><ul><li>Transforming into information-driven global hub </li></ul><ul><li>Economic Development Board – maintain global competitiveness </li></ul><ul><li>Infocomm Dev. Authority – create digital future </li></ul>
  56. 56. Singapore – Economic Infrastructure & Impact on IS <ul><li>Global success story of economic growth </li></ul><ul><li>Averaged 8% growth since independence in 1965 </li></ul><ul><li>Only three downturns – 1985, 1997 & 2001 </li></ul><ul><li>Highly developed financial services center </li></ul><ul><li>All major markets of Asia nearby – 2.8 billion people within 7 hour flight </li></ul><ul><li>Ranked #1 business environment in Asia in 2002 </li></ul><ul><li>Venture capital firms and the government provided $8 billion (US) by 2001 </li></ul>
  57. 57. Singapore – IT Skill Sets – Lifelong Learning <ul><li>Level 1 - Infocomm Literacy : Promoting e-lifestyle </li></ul><ul><li>Level 2 - Infocomm Competency : Office applications & PC skills </li></ul><ul><li>Level 3 - E-Business Savviness : Non-infocomm professionals </li></ul><ul><li>Level 4 - Conversion : Conversion to programmers, systems analyst, network & DB admins </li></ul><ul><li>Level 5 - Infocomm Specialization : Critical and emerging skills </li></ul>
  58. 58. Singapore – Job Market Characteristics <ul><li>Ministry of Manpower reports 2,128,500 in labor force (2002) </li></ul><ul><li>Majority completed secondary education – 17.8% college degree and 20.9% technical diploma or post-secondary schooling </li></ul><ul><li>106,100 positions defined as IT, expected to grow to 250,000 by 2010 </li></ul>
  59. 59. Singapore – IS Infrastructure & Utilization: Hardware Manufacturing <ul><li>Electronics account for 10% of GDP & 40% of all manufacturing output </li></ul><ul><li>3 key sectors: Hard Disk Drives, Printed Circuit Board Assembly & Semiconductor Wafer Fabrication </li></ul><ul><li>40% of the world’s hard drives </li></ul><ul><li>Future prosperity threatened by neighbors </li></ul>
  60. 60. Singapore – IS Infrastructure & Utilization: Software Development <ul><li>1981 – National Computer Board established to train software developers </li></ul><ul><li>S$80 million invested in 3 training centers </li></ul><ul><li>Project partners were IBM and NEC </li></ul><ul><li>Nixdorf, Hewlett Packard, Digital Equipment and Sperry joined by 1984 </li></ul><ul><li>Future software development efforts focus on e-commerce </li></ul>
  61. 61. Singapore – IS Infrastructure & Utilization: Telecommunications <ul><li>1.9 million telephone lines & 2.7 million cell phones </li></ul><ul><li>SingTel publicly traded – government owns 78% </li></ul><ul><li>Industry liberalized regulations in 2000 </li></ul><ul><li>5 ISPs – dial-up, Cable Modem, DSL and ISDN </li></ul><ul><li>Island is completely wired for broadband </li></ul><ul><li>Singapore connected to outside world </li></ul><ul><ul><li>Submarine cable to 100 countries </li></ul></ul><ul><ul><li>4 satellite land stations with access to 80 countries </li></ul></ul>
  62. 62. Singapore – IS Infrastructure & Utilization: Import & Exports of IT <ul><li>Imports few IT products in relation to what is exports </li></ul><ul><li>Exports hard drives, circuit boards and computer chips </li></ul><ul><li>Exports Knowledge </li></ul>
  63. 63. Singapore – IS Infrastructure & Utilization: Internet Usage <ul><li>Singapore – “Internet Island” </li></ul><ul><li>59.4% have internet access at home </li></ul><ul><li>24.2% broadband connections – DSL, Cable or LAN </li></ul><ul><li>Internet access in computer labs of the housing projects </li></ul>
  64. 64. Singapore – IS Strengths & Weaknesses <ul><li>Strengths: </li></ul><ul><ul><li>Government – Using technology to reshape the nation </li></ul></ul><ul><ul><li>Citizens – Highly educated and ready for new economy </li></ul></ul><ul><ul><li>Funding – From government & private venture capital </li></ul></ul><ul><ul><li>Industry – Traditional industry open to new technology </li></ul></ul><ul><ul><li>Network Infrastructure – Fast Internet connectivity </li></ul></ul><ul><li>Weaknesses: </li></ul><ul><ul><li>Competition threat from neighbors with lower labor costs </li></ul></ul>
  65. 65. Singapore – Opportunities for Foreign Investment <ul><li>Outside investment welcomed </li></ul><ul><li>Recent major investments: </li></ul><ul><ul><li>XML training center – Microsoft (USA) </li></ul></ul><ul><ul><li>Configure to Order UNIX Server production – Hewlett Packard (USA) </li></ul></ul><ul><ul><li>Wireless R&D center – Siemens (Germany) </li></ul></ul><ul><ul><li>Security R&D – GemPlus (France) </li></ul></ul>
  66. 66. Singapore – Adoption of Cutting Edge Technologies <ul><li>Singapore defines cutting edge </li></ul><ul><li>Government is forward thinking and encourages industry to be innovative </li></ul><ul><li>Technopreneur fund in 1999 - $1 billion (US) for high-tech startups </li></ul><ul><li>Industry 21 initiative </li></ul><ul><ul><li>Encourage industry to use new technologies </li></ul></ul><ul><ul><li>Foster fast changing environment </li></ul></ul><ul><ul><li>Become a global hub of high-tech innovation </li></ul></ul>
  67. 67. Taiwan Brandon McLain
  68. 68. Taiwan: Republic of China
  69. 69. Taiwan – Internet Usage
  70. 70. Taiwan – Hsinchu Science-Based Industrial Park <ul><li>Built in 1980, center of Taiwan's high-tech industrial development </li></ul><ul><li>Contributes to 10% of Taiwan’s GNP </li></ul><ul><li>Over 290 Companies; 90,000 employees </li></ul><ul><li>Integrated-circuit production, PCs and peripherals, telecommunications, optic-electronics, precision machinery, and biotechnology </li></ul>
  71. 71. Taiwan – Continue IT Success <ul><li>Overall R&D funding will reach 3% of GDP by 2010 </li></ul><ul><li>Establish a world-class academic environment over next 10 years </li></ul><ul><li>Continued development of existing high-tech industries ; and continue cultivating existing industries </li></ul><ul><li>Improvement in citizen knowledge and use of high tech products </li></ul>
  72. 72. Taiwan – IT Hardware <ul><li>World’s 3 rd largest supplier of IT hardware </li></ul><ul><li>Local firms produce 25% of World’s desktop PCs </li></ul><ul><li>Notebook PC’s command 58% of World Market; expected to hit 60% by 2004 </li></ul>
  73. 73. Taiwan – IT Software <ul><li>Average annual compound growth rate of around 25% </li></ul><ul><li>Development of potential export markets </li></ul><ul><li>Diversified range of better quality products, using international collaboration to promote the image of “First-rate Taiwanese software” </li></ul>
  74. 74. Taiwan – IT Software: 5 Goals <ul><li>Product development </li></ul><ul><li>Technology development </li></ul><ul><li>Personnel training </li></ul><ul><li>Development environment </li></ul><ul><li>Integration (using Hsinchu Science-based Industrial Park ) </li></ul>
  75. 75. Taiwan – IT Exports <ul><li>Japan accounts for 44.9% of Taiwan’s software exports </li></ul><ul><li>USA accounts for 33.4% of software exports </li></ul><ul><li>Companies exporting to the USA are Trend, Acer, Sertek, Ulead, Newsoft and Springsoft </li></ul><ul><li>Growing export opportunities in China </li></ul>
  76. 76. Taiwan – Foreign Investment <ul><li>Offer telecommunications enterprise services with no investment restriction </li></ul><ul><li>Enter joint ventures with local consortia to run telecom business </li></ul><ul><li>Providing consulting services to local carriers in fields such as management skills, technological know-how, operational supports, etc </li></ul><ul><li>Forming strategic alliances with domestic operators to explore the international telecom market </li></ul>

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