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Market opportunity news flash asia 13112012
1.
Cross-Industry Innovation – Driven
by Cloud and Internet of Things Finpro Asia SWDM Day 13/11/2012
2.
Introduction 13/11/2012
© Finpro 2
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. 13/11/2012 © Finpro 3
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 13/11/2012 © Finpro 4
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. 13/11/2012 © Finpro 5
6.
Part One: Japan 13/11/2012
© Finpro 6
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, … 13/11/2012 © Finpro 7
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 13/11/2012 © Finpro 8
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 13/11/2012 © Finpro 9
10.
Part Two: South
Korea 13/11/2012 © Finpro 10
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 13/11/2012 © Finpro 12
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) 13/11/2012 © Finpro 13
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 13/11/2012 © Finpro 14
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 13/11/2012 © Finpro 15
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 13/11/2012 © Finpro 16
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 13/11/2012 © Finpro 17
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 13/11/2012 © Finpro 18
19.
Part Three: China 13/11/2012
© Finpro 19
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. 13/11/2012 © Finpro 20
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. 13/11/2012 © Finpro 21
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. 13/11/2012 © Finpro 22
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. 13/11/2012 © Finpro 23
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. 13/11/2012 © Finpro 24
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 13/11/2012 © Finpro 25
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 13/11/2012 © Finpro 26
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
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