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APEC/ADOC ForumAPEC/ADOC Forum

Digital Opportunity Digital Opportunity in Social and Economic Contextin Social and Economic Context

- D.O. by Service -- D.O. by Service -

October 7, 2009

DR. Makoto YokozawaNomura Research InstituteProfessor of MOIS Labo., Kyoto Universityhttp://www.mois.asia/BIAC ICCP Vice Chair.

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Focused IssuesFocused Issues Digital Opportunity for WHO?Digital Opportunity for WHO?

– ICT4ALL, but who will be the next?ICT4ALL, but who will be the next? Social and Economy Aspect of Digital OpportunitySocial and Economy Aspect of Digital Opportunity

– In the Economy Crisis, what will be expected by DO?In the Economy Crisis, what will be expected by DO?– DO of the “NEXT Billion” will save the Global EconomyDO of the “NEXT Billion” will save the Global Economy

Cloud Computing and Digital OpportunityCloud Computing and Digital Opportunity– A Magic to turn your $100 PC to a Full Powered DeviceA Magic to turn your $100 PC to a Full Powered Device– Do not buy a computer, JUST USE IT!Do not buy a computer, JUST USE IT!

What’s up in Japan?What’s up in Japan?– Numbers and NewsNumbers and News– SME, Small and Medium size Enterprise CloudsSME, Small and Medium size Enterprise Clouds– Public Service Clouds for everyone and ID issuesPublic Service Clouds for everyone and ID issues

Concluding RemarksConcluding Remarks– Innovation and DOInnovation and DO– Anti-Global Warming Concern, another reason for DOAnti-Global Warming Concern, another reason for DO– NEED TO COLABORATENEED TO COLABORATE

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Digital Opportunity for WHO?Digital Opportunity for WHO? Digital Opportunity for WHO?Digital Opportunity for WHO?

– ICT4ALL, but who will be the next? …… Many “nexts”.ICT4ALL, but who will be the next? …… Many “nexts”.

Women? Disabled people?Women? Disabled people? Poverty? Richness?Poverty? Richness?

– DO for the people in the developing DO for the people in the developing world, will drive the global economy.world, will drive the global economy.

Business? People on the street?Business? People on the street?– Think about DO in the small and micro Think about DO in the small and micro

business, or DO for the farmers, business, or DO for the farmers, fishermen…fishermen…

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Social and Economy Aspect of Social and Economy Aspect of Digital OpportunityDigital Opportunity

– In the Economy Crisis, what will be expected by DO?In the Economy Crisis, what will be expected by DO?– DO of the “NEXT x Billion” will save the Global EconomyDO of the “NEXT x Billion” will save the Global Economy (x = 4 or more?)(x = 4 or more?)

“The Next 4 Billion”, 2007

“Bottom of the Pyramid” by C.K. Prahalad

Riches >20,000USD Riches >20,000USD

Middles 3,000 - 20,000USD Middles 3,000 - 20,000USD

Bottoms Under 3,000USD Bottoms Under 3,000USD

Annual IncomeInclusion of BOP will be essential to further develop the world economy.

It will be as well important for the “Riches” in rich countries.

“Global Inclusion” will stimulate innovation.

Inclusion of BOP will be essential to further develop the world economy.

It will be as well important for the “Riches” in rich countries.

“Global Inclusion” will stimulate innovation.

Likewise, for SMEs

Global GiantsGlobal Giants

Middle scale businessesMiddle scale businesses

Small businessesSmall businesses

Micro businessesMicro businesses

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DO by Service DO by Service Cloud Computing and Digital OpportunityCloud Computing and Digital Opportunity

A Magic to turn your $100 PC to a Full Powered DeviceA Magic to turn your $100 PC to a Full Powered Device– ““Cloud Computing” is …..Cloud Computing” is …..

Just like Google Mail, Google Docs, Amazon EC2 and Salesforce.comJust like Google Mail, Google Docs, Amazon EC2 and Salesforce.com ““Digital Opportunity by Service” will expand the Opportunity EfficiencyDigital Opportunity by Service” will expand the Opportunity Efficiency OLPCs, NetBooks and used PCs can access to the ServicesOLPCs, NetBooks and used PCs can access to the Services

Do not buy a computer, JUST USE IT!Do not buy a computer, JUST USE IT!– Only a minute to thousands of software, such as dictionaries, drawing, spreadsheets, Only a minute to thousands of software, such as dictionaries, drawing, spreadsheets,

presentation and videos.presentation and videos.– Only a few days to be a service provider Only a few days to be a service provider

Internet Access

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The DifferenceThe Difference

Digital Opportunity by ProductsDigital Opportunity by Products– You’ll have to:You’ll have to:

Digital Opportunity by ServiceDigital Opportunity by Service– You’ll only need:You’ll only need:

The Internet

Powerful Computers are Ready to Use for You!

Copyright （ C ） 2009 Nomura Research Institute, Ltd. All rights reserved.

DO by Service

What is SaaS （ Software as a Service)?

Do not “Buy Software”, just USE it, in many cases, “FREE!”OLPC and Costly PCs can be the most “ADVANCED” DO tools.DO NOT BOTHER YOU BY “Installing, Updating, Learning and Paying”All Functions are on the NET, and they are ready to user anytime.

The Internet

Users

Users

Application Hosting

Data Centers

Application Vendors

Browser

OLPC or Costly PCs

Applications

Pay as much as you use

Maintained in good conditions by service providres

Copyright （ C ） 2009 Nomura Research Institute, Ltd. All rights reserved.

DO by Service ……..What is the Cloud Computing?

Scalable and Flexible ICT Infrastructure

Device independentPay as much as You used

＄＄

Highly Virtualized andUtilized

AnywhereCOSTLY

Easy

Always New!

Secure and Resilient

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Global Innovation Required for Economy CrisisGlobal Innovation Required for Economy Crisis

2007 2010 2015 2020

Value added by Improving Productivity

Value added by Elimination of Bottlenecks

Value added by Hidden Innovation

Mobile phone, Digital TV, Digital cameras, Digital Contents, NFC payments

E-Governments, e-community, medical care, health, tied closely with daily lives

Future communication styles, Quality of Life

Analyze and eliminate bottlenecksCommercialize the public sectorCommercialize spheres of daily life

Appropriate regulationsLeadershipPromote standardization

Fostering innovationPromote linkage of functionsEnhance efficiency and effectiveness of development

Expected Actions

Bottleneck = Global Inclusion

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What’s up in Japan?What’s up in Japan? Broadband Subscribers ~60% of total Households in June 2009Broadband Subscribers ~60% of total Households in June 2009 Mobile Phone Subscribers ~88% of Total Population in June 2009Mobile Phone Subscribers ~88% of Total Population in June 2009 Digital Terrestrial TV Issue in 2011, (Governmental Support Expected for Low Income Households)Digital Terrestrial TV Issue in 2011, (Governmental Support Expected for Low Income Households)

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Introduction of IT systems

Maturity Model of Business IT UtilizationMaturity Model of Business IT Utilization

1111 Source) METI Japan

Cross-CompanyUtilization of IT

InitialIntroduction of IT

Intra-Enterprise Utilization of IT

Intra-Division Utilization of IT

Difficulty in Cross-DivisionCommunication

Difficulty inCross-CompanyCollaboration

Stage 1 Primary usage of IT

Stage 2Partial optimization by IT within each division

Stage 3Partial optimization by IT across a company

Stage 4Total optimization across industry

2%

3%

ProductivityGain byIT usage

100%70% of companiesIn Stage1-2

30% of companiesIn Stage 3 and 4

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Digital Opportunity by Service Digital Opportunity by Service for SMEsfor SMEs

The Internet

SME’s can utilize IT, without spending too much money from the beginning of their entrepreneurship

Avoid Risks of investment Fully equipped with Information Systems for Technology Management,

Human Resource Management, Trading and Accounting Management

SME Cloud Computing CenterSME Cloud Computing Center

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““J-SaaS” for SME’s J-SaaS” for SME’s

•A Consortium for “Software as a Service” for SME’s•Provide Cloud Computing Services in low prices

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RemarksRemarks

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