1

Software Industry Software Industry Entrepreneurship & Innovation Entrepreneurship & Innovation

—Taiwan Experience—Taiwan Experience

James LiuPresident

Syscom Computer Engineering Co.

November 28, 2007

2

AGENDA

3. Entrepreneurship & Innovation Model

2.The Best e-Service Export of Taiwan

1.Main Driving Force for the Economic Development of Taiwan

3

Taiwan’s Economic Miracle – Impressive Achievements

8.1

2.5

8.5

3.3

9.8

1.7

8

2.1

6.5

2

1953-2000 1960s 1970s 1980s 1990s

Economy growth rateUnemployment rate

1953~2000, the economy in Taiwan climbed up fast,

•The population grew from 8.13 million to 22.22 million.

•The unemployment rate was only 2.52%.

8.1 7.7

3.9

5.6

1953~2000, Taiwan had the highest Average Annual Economic Growth Rate in the world.

Taiwan South Philippines Japan Korea

Average Annual Economic Growth Rate of Taiwan, South Korea, Philippines, and

Japan during 1953~2000

4

Taiwan is No.1 or 2 in 18 Hardware Industries in the World

PRODUCTPRODUCT WW. Market ShareWW. Market Share The First PlaceThe First Place The Second placeThe Second place

1 Motherboard 98.4% V

2 WLAN NIC 87.0% V

3 Server (System & Pure MB) 85.6% V

4 VoIP Router 83.0% V

5 Notebook PC 82.5% V

6 DSL CPE 79.0% V

7 Cable Modem 79.0% V

8 IP Phone 78.0% V

9 PDA 73.4% V

10 VoIP TA 71.0% V

11 LCD Monitor 70.1% V

12 Switch 61.0% V

13 WLAN AP 56.9% V

14 CDT Monitor 50.7% V

15 Large Size LCD Panel 46.4% V

16 DSC 41.8% V

17 ODD 39.6% V

18 Server (System) 34.3% VSource ： MIC of III ， April 2006.

5

Main Driving Force for the Economic Development

Hardware industry in Taiwan has already got a

great achievement globally.

What’s the main driving force for the next

phase of economic development in Taiwan?

Afterward the information service industry

(including software industry) becomes the

right answer to establish the 2nd generation of

“Taiwan Economic Miracle”.

6

IT Service Industry is the Paradigm of the Future

Worldwide Production Value in SW+IT Services and Hardware during 1997~2010

Source: INPUT, MIC of III, 2003.

Worldwide IT market will be shifted to the software & information service industries

Output Value of Software & IT Services

Output Value of Hardware

Unit ： Billion USD

1997-2010 Software& IT services CAGR=57%

1997-2010 Hardware

CAGR=40%

7

Impact at the Beginning of the 21th Century

0

1

2

3

4

5

6

7

8

9

10

SouthKorea

Singapore HongKong

Taiwan China India Indonesia

Comparison of Average Wage per hour in East AsiaComparison of Average Wage per hour in East Asia

Unit: USD/Hr

6.13

0.750.43 0.35

Source: IMD Competitiveness Yearbook, NASSCOM, MIC, DEC 2005.

The main economic driving force hasThe main economic driving force hasbeen globally moving to Asia-Pacific area to been globally moving to Asia-Pacific area to seek for lower labor cost, even from Chinaseek for lower labor cost, even from China

to the Southeast Asiato the Southeast Asia

8

India Miracle in the Software Industry

4,096

5,446

6,348

7,4908,614

9,64810,612

0

2,000

4,000

6,000

8,000

10,000

12,000

2004~2010 IT Market Size in India(Software is not included)

Unit ： Billion USD

Ps. The IT market here includes: Computers & Complete Systems, Peripherals Storage, Input/Output, Accessories and Parts. Software is not included.

Source: Yearbook of World Electronics Data 2007, MIC of III re-organized, JUL 2007.

1,0211,358

1,797

2,312

2,923

3,591

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

2006~2011 IT Outsourcing Service Market Size in India

Unit ： Billion USD

Ps. IT Outsourcing Services include IS outsourcing, Network Management, Desktop Management, Application Management, Hosting Infrastructure Services, Hosted Application Management.

Source: IDC, MIC of III re-organized, JUL 2007.

2004~2010, 2004~2010, CAGR = 17.2%CAGR = 17.2%

2006~2011, 2006~2011, CAGR = 28.6%CAGR = 28.6%

9

What happened and why could India do this?

What happened in India now? Why India can?

Lower wage rate and abundant qualified and English-skilled software engineers that had been trained by colleges, universities and the government make the differences.Non-Indian Asian IT companies can hardly compete with Indian software companies, especially for those accounts in English areas.Asia IT companies need to learn from Indian experience in the development progress of software industry.

Later better than never.

0

10

20

30

40

50

60

70

80

90

100

USA INDIA Other AsiaCountries

Price of Projects, for example……

10

A Good Lesson that Taiwan Learned from India

*Ps. The number announced by SEI is accounted until 16th Nov., 2007.

Is it possible that Taiwan can learn from India?Yes, and we already did.

Taiwan is now No. 9 in the world ( 71, 49/19/0/3 respectively ).

SYSCOM is the first CMMI ML5 company in Taiwan.

QUALITY

QUALITY

ASSURANC

ASSURANC

EE

Japan is No.1 for TQM, thus made the fine reputation in 3C products.

In 1980’sIn 1980’s

India is famous for IT Services industry in the world for its having the biggest number of CMMI appraisals in Asia that was announced by SEI in March 2007.*

In 2000’sIn 2000’s

11

SYSCOM Adopted CMMI Worldwide

USAUSACASEMaker/CA

North-East AsiaNorth-East Asia- DBMaker Japan

Tokyo/Japan

ChinaChina- Ling-An (Xian)

- Syscom (Shenzhen) (Shenzhen/ Beijing/ Shanghai/ Suchou)

EuropeEuropeDBMaker Europe

Italy

South-East AsiaSouth-East Asia-Syscom(Thailand)

(Bangkok)-Syscom(Vietnam)

(Hanoi, HCMC)

TaiwanTaiwan

Global Logistic

Headquarters

CMMI Dashboard Project Management Base

12

AGENDA

3. Entrepreneurship & Innovation Model

2.The Best e-Service Export of Taiwan

1.Main Driving Force for the Economic Development of Taiwan

1313

The Best e-Service Export of Taiwan (BEST)

Mo

tives

Pro

ject

Ad

van

tag

es

Great potentiality for market growth in

the target financial IS market

Taiwan’s financialIS providers are the

paradigm for target market

Successful domain AP paradigm

in Taiwan

Productcommercialization

technology

Capability in international

marketing

Allied with existing leading companies in Taiwan to construct total domain solutions

Accelerate the project to be realized by BEST program

IS providers inTaiwan start to

globalize

14

The Best e-Service Export of Taiwan (BEST)

Taiwan got several BEST fleets in Asia-Pacific area now.Goal: major suppliers to Asia-Pacific region major suppliers to Asia-Pacific region Focus: financial information service, manufacturing financial information service, manufacturing

logistics, information security, and e-government logistics, information security, and e-government

industriesindustries.

GOAL & FocusGOAL & Focus

Currently, Syscom’s stock exchange system, the fraud detection systems, and many other financial solution programs have already obtained great market share in China, as well as obtained contracts from ICBC in China and CTCB in Thailand.

About SYSCOMAbout SYSCOM

15

AGENDA

3. Entrepreneurship & Innovation Model

2.The Best e-Service Export of Taiwan

1.Main Driving Force for the Economic Development of Taiwan

16

Entrepreneurship & Innovation Model

1.Distribution & Value-added Software Development

4. Internationalization

of Marketing Channels

5. Put Emphasis on Quality Assurance

2. Earned Large-scaled Projects and Accounts

3. Commercialization

of Solutions

Innovative International Marketing Progress with Entrepreneurship

17

1. Distribution & Value-added S/W Development

Servers, Networks, & StorageServers, Networks, & Storage

Hitachi

Radware

RouterSwitch

BW ControlBRAS

DHCPAAAIMS

IDPSLB

PON

IDPAV

NetCenter

RD-IIIIDPAV

P2PCDN

Telecom & Domain ApplicationsTelecom & Domain Applications

Secure corporate servers with HIDS

firewall, VPN, and IPS

Remote Dial-In User Service (RADIUS), with HIDS

Desktops/laptops with HIDS and anti-virus software

FTP

server

D M Z VL A N

Web

server

Mail

Server

SSL VPN MAILsweeper for SMTP

Switch

Internet

Security - Hardware & SoftwareSecurity - Hardware & Software

AXUS Thin Client

Domain ApplicationsDomain Applications

18

2.Earned Large-scaled Projects and Accounts

Central Trust of ChinaCentral Trust of China

Chinatrust Commercial Bank (Holding)Chinatrust Commercial Bank (Holding)

Jih Sun International Bank (Holding)Jih Sun International Bank (Holding)

E. Sun Commercial Bank (Holding)E. Sun Commercial Bank (Holding)

Taitung Business BankTaitung Business Bank

Taishin International Bank (Holding)Taishin International Bank (Holding)

Taishin Insurance AgencyTaishin Insurance Agency

Joint Credit Information CenterJoint Credit Information Center

Bank of Overseas ChineseBank of Overseas Chinese

FIN

AN

CIA

L

Taiwan Stock ExchangeTaiwan Stock Exchange

Jih Sun Securities/Futures/InvestmentJih Sun Securities/Futures/Investment

Masterlink Securities/FuturesMasterlink Securities/Futures

First Taisec SecuritiesFirst Taisec Securities

Taiwan International Securities GroupTaiwan International Securities Group

Barits International SecuritiesBarits International Securities

Hua Nan Securities/FuturesHua Nan Securities/Futures

Fuhwa Securities/FuturesFuhwa Securities/Futures

Capital Securities/FuturesCapital Securities/Futures

Polaris Securities/FuturesPolaris Securities/Futures

Secu

rities

Shanghai Stock ExchangeShanghai Stock Exchange

China CITIC BankChina CITIC Bank

Bank of CommunicationsBank of Communications

China Financial Futures ExchangeChina Financial Futures Exchange

China Merchants BankChina Merchants Bank

HUTEKHUTEK

MiTAC East China MKLMiTAC East China MKL

Qinhuangdao City Commercial BankQinhuangdao City Commercial Bank

Shenzhen Stock ExchangeShenzhen Stock Exchange

Wenzhou City Commercial BankWenzhou City Commercial Bank

ICBC ThailandICBC Thailand

Overseas

19

3. Commercialization of SolutionsOutstanding Self-R&D Products & Solutions

Service Channel

Domain APP.

Core Tech.

SDPM (Real-time P.M. Platform based on CMMI)

DBMaker OLAP/OLTP

IMAPS Solution Developing Tools

SafeMaker ITAM

Financial

i4MStock Exchange Sys.EBTSForeign Exchange Trading Sys.CreditGuardFutures Trading Sys.Options Trading Sys.VMakerPineReportATMMOMBanTalk

Telecom

Voice PortalWANCenterNETCenterSyscom SIMSyscom GWSecurity Consulting & Total Solution

E-government

OA SystemPersonnel InformationManagement Sys.E-police Information Management Sys.Image OnlineE-Document SolutionOffice AutomationE-form Signing Sys.

Healthcare/Transportation

HISElectronic Medical Case History Sys.Voice Registration SystemHEMSReal-time Transportation Operation Manag. System

e-Commerce m-Commerce v-Commerce

20

Worldwide International Marketing ChannelsUSAUSA• CASEMaker/CA• Marketing and information center

USAUSA• CASEMaker/CA• Marketing and information center

North-East AsiaNorth-East Asia-DBMaker Japan-Tokyo/Japan-Marketing point

North-East AsiaNorth-East Asia-DBMaker Japan-Tokyo/Japan-Marketing point

South-East AsiaSouth-East Asia-Syscom (Thailand) (Bangkok)

-Syscom(Vietnam) (Hanoi, HCMC)

-Marketing point

South-East AsiaSouth-East Asia-Syscom (Thailand) (Bangkok)

-Syscom(Vietnam) (Hanoi, HCMC)

-Marketing point

ChinaChina-LingAn (Xian)-Syscom (Shenzhen) (Shenzhen/ Beijing/ Shanghai/ Suchou)

ChinaChina-LingAn (Xian)-Syscom (Shenzhen) (Shenzhen/ Beijing/ Shanghai/ Suchou)

EuropeEurope-DBMaker Europe -Italy-Marketing point

EuropeEurope-DBMaker Europe -Italy-Marketing point

TaiwanTaiwan-Syscom Headquarters

- R&D center

TaiwanTaiwan-Syscom Headquarters

- R&D center

4. Internationalization

21

CMMI Level 5

• 20042004 ：： 11stst software company obtaining CMMI level 3 appraisal in Taiwan software company obtaining CMMI level 3 appraisal in Taiwan

• 20052005 ：： Ling-An Computer Co. (one of Syscom’s subsidiaries in China) Ling-An Computer Co. (one of Syscom’s subsidiaries in China)

procured CMMI level 3 appraisal in China procured CMMI level 3 appraisal in China

• 20062006 ：： 11stst CMMI Level 5 appraised Taiwan company in July, and CMMI Level 5 appraised Taiwan company in July, and

formally published on SEI’s website in Novemberformally published on SEI’s website in November

CMMI is a key driver for Taiwan software industry because it can：• Ensure the quality of projects to a worldwide warrantable service level• Enhance the software development capabilities with worldwide partners

5. Put Emphasis on Quality Assurance

22

The Importance of CMMI

The influences of the conveyer that invented by Ford in 1913?

Is it just a conveyer? Its key impact……Conveyers enable large-scaled auto-production, thus make our life more convenient and betterSoftware project budgets are highly different in USA and in Taiwan

New software producing procedures must be?RationalQuality Assurance

Adopted globallyHigh-quality

Software Producing Procedures

Software Producing Procedures

Manufacturing Procedures

Manufacturing Proceduresvs.

It’s much important to Information service It’s much important to Information service & software industries to adopt it.& software industries to adopt it.

23

A Real-time project management platform with A Real-time project management platform with dashboarddashboard on SDPM that developed by Syscomon SDPM that developed by Syscom

SDPM– Our CMMI ML5 Appraisal Key Base

24

SYSCOM GROUP has installed the SYSCOM GROUP has installed the CMMI Project Management Platform-CMMI Project Management Platform-

SDPMSDPM

25

SYSCOM Adopted CMMI Worldwide

USAUSACASEMaker/CA

North-East AsiaNorth-East Asia- DBMaker Japan

Tokyo/Japan

ChinaChina- Ling-An (Xian)

- Syscom (Shenzhen) (Shenzhen/ Beijing/ Shanghai/ Suchou)

EuropeEuropeDBMaker Europe

Italy

South-East AsiaSouth-East Asia-Syscom(Thailand)

(Bangkok)-Syscom(Vietnam)

(Hanoi, HCMC)

TaiwanTaiwan

Global Logistic

Headquarters

CMMI Dashboard Project

Management Platform for our

Customers Worldwide

CMMI Dashboard Project

Management Platform for our

Customers Worldwide

26

Conclusions

18 items of No.1 or 2for their great market share in the world

18 items of No.1 or 2for their great market share in the world Taiwan MiracleTaiwan MiracleTaiwan MiracleTaiwan Miracle

A good beginning in the21th century at the IS& Software Industries

A good beginning in the21th century at the IS& Software Industries

India MiracleIndia MiracleIndia MiracleIndia Miracle

Learning from each other; it’s the reason why we’re here

Learning from each other; it’s the reason why we’re here

to realize the

““ASOCIO Miracle”ASOCIO Miracle”

to realize the

““ASOCIO Miracle”ASOCIO Miracle”

Thanks to Your Participation.

071120-ASOCIO-ME-CEOslides-v1-0.01

28

Presentation by,Mr Dan E KhooVice President, Business Strategy and Transformation Division, Multimedia Development Corporation (MDeC)

MSC Malaysia MSC Malaysia National ICT National ICT InitiativesInitiatives

29

STRATEGIC BUSINESS LOCATIONMALAYSIA is in the Heart of the Asia Pacific region

“A foreign IT or scientific engineering company should engage with the MSC Malaysia because it is a Hub into Asia.

From Malaysia, we can branch into India, China, other Asian nations and Islamic nations.”

-Bob Bishop, Chairman and CEO, Silicon Graphics Inc., MSC Malaysia

IAP Member

30

Vision 2020: Malaysia to be K-based Economy by 2020

Agriculture-

based Economy

Industrial Production

Economy

K-based Economy 20202020

GD

P p

er

capit

a

Time

TO ACCELERATE K-BASED ECONOMY:Requires Enhancing of Knowledge Infrastructure

Key Enabler: Physical Infrastructure

Key Value Creating Platform

: Knowledge Infrastructure

August 1996 – MSC Malaysia was launched

31

MSC Malaysia VisionThe MSC Malaysia is about changing the way we live, work and play… this special area will be a global test-bed for: the new roles of government; new cyber laws and guarantees; G2B and B2B collaborations; new broadcasting; education; delivery of healthcare; and new technologies …

Government’s Policy Statement at Launch of MSC, 1 August 1996

32

YAB DATO’ SERI ABDULLAH BIN HAJI AHMAD BADAWIPRIME MINISTER OF MALAYSIA10th MSC MALAYSIA ANNIVERSARY

"The MSC Initiative was launched as a catalyst to the national ICT agenda and Multimedia Development Corporation (MDeC) was formed to drive the development of the MSC... "

Facilitating ICT based New Growth Areas: Creative Multimedia Content Industry Shared Services Outsourcing

MSC Malaysia Flagship Applications

MSC Malaysia: Nurturing Human Capital for K-based Economy

MSC Malaysia National Rollout will create K-based Infrastructure

MSC Malaysia National Rollout and Flagship Applications will help reduce the income gap and the digital divide

FIVE (5) THRUST AREAS OF 9TH MALAYSIAN PLAN (2006 – 2010)MSC Malaysia’s Contribution to Realising the National Mission

33

MSC Malaysia Milestones & National Rollout

CyberjayaCentral Corridor

PHASE ONE: 1996-2003 Successfully createthe MSC

1 CorridorComprising 5 Cybercities

PHASE THREE:2010-2020 Transform Malaysia intoa Knowledge society

National Transformation enabled By MSC Malaysia environment

All of Malaysia

Central Corridor

Eastern Corridor

Sabah

Sarawak

Southern Corridor

Cyberjaya

PHASE TWO: 2003-2010 Grow MSC intoa global ICT hub

National Rollout comprisingCybercities and Cybercentres

Web of corridors

Northern Corridor

34

Impact of MSC Malaysia

MSC Malaysia Status Companies

1,947

Revenue RM12.99 b p.a

Jobs Created 63,000+

Export RM 4.08 b p.a

R&D Expenditure RM 814 mil

MSC Malaysia Status companies listed on MESDAQ

52

IP/Patents registered 1,180

As of 9th Nov 2007

35

ICT Industry Development - Technology Focus -

MSC Malaysia Status Companies by Technology Cluster: Operational as at Nov 9th , 2007

IBB, 168, 11%

SSO, 116, 7%

Creative Multimedia, 157,

10%

Mobility, Embedded Software &

Hardware, 330, 21%

IHLs and Incubators, 78,

5%

Application Software, 699,

46%

ClusterAwarded

*Operation

al**

Application Software (AS) 828 699

Mobility, Embedded Software & Hardware (MeSH) 425 330

SSO 135 116

Creative Multimedia 211 157

IBB 264 168

IHLs & Incubators 84 78

GRAND TOTAL 1,947 1,548

36

Meets demand of citizens

Reduces government cost

Increases government efficiency

Enhances awareness on government efforts

Beneficial to government employees

Spin off will grow business sector

Amplify national income per capita*

Drivers to Increase Services Delivery in the Global Market thru MSC Malaysia Flagship as Catalyst

* UN Global e Gov readiness reports “E-government appears to have a strong relation with income per capita.”

37

MyKad significantly improved Governance, transparency and government services delivery.

Greatly enhances National Security No cloning of chip based ID Zero fraud in payment transactions

MSC Malaysia Smart Card Flagship:Reaching out to the People

Access to multiple applications: 9 On-Card and 29 Off-Card to date “ONE COMMON PLATFORM” more than 300 integrated Government Service Centre (GSC)

Convenience for citizens enhanced Reduce queues e.g.. Immigration points, Reduced processing time for passport

renewal 150,000 Points-of-Usage

38

MSC Malaysia Smart School Flagship: Reaching out to the PeopleObjective: Quality education 88 smart schools are nucleus for all 10,000

schools to be ‘smart’ “Quality Education for All” through

Education Development Blueprint (2006-2010)

Smart School Qualification Standards adopted for quality assurance

All Schools will

be Smart by

2010

39

MSC Malaysia Telehealth Flagship: Reaching out to the People

Teleconsultation: 38 hospitals providing Teleconsultation Healthcare

services nationwide 1,000 healthcare professionals trained on Online

Healthcare courses Over 2,000 cases have been transmitted through

the Teleconsultation system since it was implemented

Objective: Better healthcare delivery

Connecting the Rural ClinicsOver 300 rural clinics are connected to Internet

Virtual Library allows healthcare professionals to keep up-to-date with medical and health

knowledge regardless of geographical locations

Continuing Professional DevelopmentMyCPD web-based application provide information and simplify the process for training and development of healthcare professionals

40

MSC Malaysia e-Government Flagship: Reaching out to the People

myGovernment (myServices) portal offers more than 400 online services and 19 SMS services

E-Procurement transaction value grew in 2006: RM 2 billion worth of contracts

Electronic Labour Exchange captured 300,834 job seekers, 1,544,881 vacancies and 823,430 job matches

Objective: Enhancing Government Services Delivery

As of May 2007

41

MSC Malaysia: Rapidly Growing Exports Across Global Market

Over 300 MSC Malaysia status firms exporting to All Major Markets

42

Matching Demand & SupplyMatching Demand & Supply

Internet Based Business (IBB)

Support Services

Creative Multimedia

Mobility, Embedded Software & Hardware (MeSH)

Software Development

SSO

LLOOCCAALL

SSUUPPPPLLYY

Govern

men

t

Con

su

mer

Fin

an

ce &

Ban

kin

g

Man

ufa

ctu

rin

g

Uti

liti

es

Serv

ices

Con

str

ucti

on

Oth

ers

GLOBAL DEMANDGLOBAL DEMAND(ICT Market Segments)(ICT Market Segments)

Knowing what we actually have (MSC Malaysia’s products and services)

Identify differentiation factor (strengths and competencies)

Knowing exactly what to target (matching supply to demand)

Creation demand in emerging markets

43

NZ Smart School StudyNZ Smart School Study

United Arab Emirates - Electronic Government Strategic Plan workshop

United Arab Emirates - Electronic Government Strategic Plan workshop

Kingdom of Bahrain - Kingdom Of Bahrain National Card ConsultancyKingdom of Bahrain - Kingdom Of Bahrain National Card Consultancy

Syria – Decision Support System Consultancy for Prime Minister Dept.

Syria – Decision Support System Consultancy for Prime Minister Dept.

Kingdom of Saudi Arabia, Islamic Development Bank (IDB) – IT Strategy Model for 53 member countries

Kingdom of Saudi Arabia, Islamic Development Bank (IDB) – IT Strategy Model for 53 member countries

Kingdom of Saudi Arabia - Medina E-Government Project, Knowledge Economic City Medina

Kingdom of Saudi Arabia - Medina E-Government Project, Knowledge Economic City Medina

State of Kuwait – Smart Card Project Consultancy for The Public Authority for Civil Information

State of Kuwait – Smart Card Project Consultancy for The Public Authority for Civil Information

Bangladesh – Technology Park Implementation Study

Bangladesh – Technology Park Implementation Study

GCC – Common Guidelines for Interoperable GCC National ID Schemes

GCC – Common Guidelines for Interoperable GCC National ID Schemes

Iran – National E-Comm Strategic RoadmapIran – National E-Comm Strategic Roadmap

MSC Malaysia Global Experience

Lebanon – Smart Card Project Lebanon – Smart Card Project

44

MSC Malaysia Collaboration with ASEAN member Countries

Smart Card Projects: Indonesia, Thailand

Education Content & Pilot Smart Schools:Myanmar, Laos, Cambodia, Vietnam

The Department Of Trade And Industry Of The Republic Of The Philippines

Consortium Information Technology And Multimedia Indonesia

MDeC (E-BUSINESS) & E-National Task Force Of Myanmar

Eco-Cyber ParkGovernment of Brunei

45

Lessons Learnt from ICT Initiatives Governments need to catalyse and facilitate sustainable ICT

development

The investment and transition require long term commitment and strong leadership

Initiatives set must have clear development goals and objectives

ICT strategy should include investment and interventions to generate demand

Investing in ICT R&D will increase the local content and integration for Domestic ICT products

Taking an integrated and holistic approach to ensure synergistic and optimised deployment

The planning and implementation of programs need to recognize the important roles played by different stakeholders: Government, Industry & Civil Society

46

WAY FORWARD ASOCIO Countries must embrace ICT, its developments

and use, if they are to sustain economic growth and remain competitive in the global market place.

The governments must commit themselves to foster a favorable legal and policy environment for the development and use of ICT as well as for attracting investment.

Mutual agreements need to be achieved in adopting laws and policies based on international norms that promote trust and confidence of the general population.

The more advanced member countries with advance ICT capabilities to share their experiences and technologies with less developed member countries.

47

Summary of Business Opportunitiesin/with MSC Malaysia

Set up your global or regional base in MSC Malaysia

Access Asia and OIC markets Conduct profitable businesses with almost 2,000

MSC Malaysia Status companies High potential projects with the Malaysian

government Start JVs with any MSC Malaysia Status company Become a distributor of MSC Malaysia products

and services in your country/region Set up your R&D centre in the MSC Malaysia Alternative development / offshoring centre for

your clients

48

WCIT 2008 – Enable, Empower, Enrich !

• Take advantage of Malaysia’s leading position in Asia

• Visit us at WCIT2008 in Kuala Lumpur

• MSC Malaysia – “Your IT gateway to Asia”

• “See, Touch & Feel” Malaysia – its vibrancy, its diversity, its culture !

• Our theme – “Enable Empower Enrich”

www.wcit2008.org

49

THANK YOUTHANK YOU

visitwww.msc.com.my

IT Policy in Japan~METI’s IT policy facilitating the

usage of Information Technology by SMEs~November 28.2007

Takeo NATSUMEDirector

Information human resource officeCommerce and Information Policy BureauMinistry of Economy, Trade and Industry

51

Ｓｕｍｍａｒｙ

- Feature and present condition of Japan‘s IT Industry

- IT policy facilitating the usage of IT by SMEs

52 (Source: “Services Industry Survey,” METI )

2005 sales in the information services and software industry was ¥14.6 trillion . Employees numbered 574,000. Average growth rate of is over 4%.

Sales and employees

※Research scope was reviewed and expanded in 1998 and 2001.

※Employees in 2000 and beyond includes transferred and dispatched persons.

Sales (Tr yen) Employees (10,000 people)

Sales

Software and IT Services ~Sales and Employee~

Employees

53

Amount of the investment for IT of the big enterprise of the capital 10 billion yen over is an increasing tendency. 　　　

0

1,000

2,000

3,000

4,000

5,000

6,000

2000 2001 2002 2003 2004

100 million yen～

100 500 million yen～

500million billion～１yen

billion yen１～１０

10 billion yen～

All

（ million yen ）

An investment for IT of the small and medium enterprise is low. 　

（ Source ）” Information Processing Census,” METI (09/2008)

54

Sales in the information services and software industry is concentrated on large cities such as Tokyo, Kanagawa Prefecture, and Osaka Prefecture.

Tokyo9 trillion yen

(90 billion US$)

Hokkaido 0.2 trillion yen(2 billion US$)

Fukuoka 0.3 trillion yen(3 billion US$)

Kanagawa 1.4 trillion yen(14 billion US$)

Osaka 0.9 trillion yen

Aomori 18 billion yen

(180 million US$)

Kagawa 27 billion yen

(270 million US$) 1 US dollar = 100 Japanese yen

The Japanese IT Industry

Kagoshima 24 billion yen

(240 million US$)

Kyoto0.2 trillion yen(2 billion US$)

55

High customization rate compared to USA

High customization ratio and IT investment costs

7.5%

40.0%

41.3%

49.2%

51.2%

10.8%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

米国SCM

日本SCM

100%作り込み 混成 100%パッケージ

（ＳＣＭ）

物流

管理

ソフ

ト

そのまま使用

100%作り込み 混成

（ＣＲＭ）

顧客

管理

ソフ

ト

22.1%

31.1%

30.9%

58.8%

47.1%

10.1%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

米国CRM

日本CRM

100%作り込み 混成 100%パッケージ

そのまま使用

100%作り込み 混成

Japan SCM

USA SCM

Japan SCM

USA SCM

100% in-house development Mixed development Use as is

Supp

ly C

hain

M

anag

emen

tC

usto

mer

Rel

atio

nshi

p M

anag

emen

t

100% in-house development Mixed development Use as is

56

High IT investment costs compared to West

0

1

2

3

4

5

日本 米国 西欧

平均4.2万円／機能

平均2.3万円／機能

平均3.4万円／機能

Development cost per software function

Ave.\42,000/function

“420US$”

Ave. ¥23,000/function

“230US$”

Ave. ¥34,000/function

“340US$”

Japan USA

EU

High customization ratio and IT investment costs

57

Governmental IT Policy (IT Strategic HQ)

e-Japan Strategy (2001)e-Japan Strategy (2001) New IT Reform Strategy New IT Reform Strategy (2006)(2006)

e-Japan Strategy (2003)Ⅱe-Japan Strategy (2003)Ⅱ

■ Japan’s IT strategy is promoted by all governmental offices and spearheaded by the IT Strategic Headquarters, chaired by the Prime Minister.

■ METI Minister serves as Deputy Chairman of IT Strategic HQ and plays an important role in its activities.

ObjectiveBuilding IT foundations (Make Japan advanced IT nation in 5 years.)

Important areas (5) ・ Building of network infrastructure・ Building environments for e-commerce・ Materializing e-government services, etc.

ObjectivePromoting IT use

Important areas (7, technological competitiveness) ・ Medical care: e-charts, medical care billing・ Governmental services: Online national/local services・ Technological competitiveness: Building new IT infrastructure (Ubiquitous networks, developing IT human resources) etc.

Objective Structural Reforms via utilization of IT (Completion by FY2010)

Important areas (15)・ Medical care reform via use of IT・ Eco-friendly society driven by IT ・ World’s most convenient and efficient online governmental services ・Strengthening business cooperation by establishing IT management・ World’s most secure IT society・ Developing world-class IT human resources

etc.

IT Strategy HQ MembersIT Strategy HQ Members

Chairman : Prime MinisterDeputy Chairman: Minister of State for Science

and Technology PolicyChief Cabinet SecretaryMETI Minister, MIC Minister

Members: All ministers excluding Chairman and Deputy Chairman, Advisors (8)

Other (2) President, Council for the Promotion of Regulatory ReformPresident, IT Reform Strategy Evaluation Council of Experts

58

世界最先端に向けて重点的に取り組むべき主な施策（案）世界最先端に向けて重点的に取り組むべき主な施策（案）

Pursuit of IT Solution power Pursuit of IT Solution power for Structural Reform for Structural Reform

Structural reform of healthcare industry Structural reform of healthcare industry through IT Solutionsthrough IT Solutions

- Overcome the challenges faced by Japanese society by using IT

Solutions ◆◆ 100% complete on-line processing of 100% complete on-line processing of

medical care expense receipts medical care expense receipts

Environmentally-friendly society fullyEnvironmentally-friendly society fully using IT Solutionsusing IT Solutions

◆◆ Efficient energy management, recycling and Efficient energy management, recycling and distribution through IT Solutionsdistribution through IT Solutions

The world’s most advanced safeThe world’s most advanced safe and reliable IT societyand reliable IT society

◆◆ Damage mitigation by sharing disaster Damage mitigation by sharing disaster information via terrestrial digital broadcasts information via terrestrial digital broadcasts

The world’s safest road trafficThe world’s safest road traffic environmentenvironment

◆◆ Traffic accident prevention through Traffic accident prevention through Intelligent Transport systemIntelligent Transport system

The world’s most convenient and The world’s most convenient and efficient electronic governmentefficient electronic government

◆◆ 50% or more actual use of on-line 50% or more actual use of on-line applications and filingsapplications and filings

Enhance business competitiveness Enhance business competitiveness using IT Solutions in managementusing IT Solutions in management

◆◆ Efficient collaboration within and Efficient collaboration within and among companies through IT among companies through IT SolutionsSolutions

Prosperous lifestyles throughoutProsperous lifestyles throughout people’s lifetimespeople’s lifetimes

◆◆ Increased use of telecommuting and e-Increased use of telecommuting and e-learninglearning

Priority IT Measures

59

METI’s IT PolicyImplementation of the “New IT Reform Strategy”, “ Economic and Fiscal Reform

2007”, and the “Economic Growth Initiative”

　● Strategic technology development

　　　・　 Green IT Project　　　・　 Dream Chip

Project

　● Product safety initiatives / environmental measures

　● International trade policy / Home appliance distribution policy

● Promotion of innovation　　・ Jaspar Project　　・ Information Grand

Voyage Project

● High-level IT human resources development

● Market innovation

● IT use by SMEs businesses

　　・ IT use via SaaS　　・ Tax incentives

● Increasing IT investment

● Electronic tags, electronic commerce

Hardware SoftwarePromotion of IT use

Promotion of electronic government

Information security / Privacy protection

Home appliance recycling

60

1. Promoting IT use by SMEs businesses

【課題】　　　　　　　　　　　　　　　　　　　　　　　 　　　　　●特に中小ユーザ企業における IT 活用の遅れ

2. Improving efficiency of IT investment

【 Issues 】　　　 　　　　　●Use of IT is late particularly with small

to Midium businesses.

【 Policies 】●The “IT-Keiei Ouentai”●Promote IT use with SMEs businesses

via “SaaS” (Software as a Service).●Strengthen competitiveness via tax

incentives for introducing IT.

【 Issues 】●Customized systems common compared to USA and Europe

【 Policies 】●Improve efficiency in IT investment

via focus on core businesses.

【課題】　　　　　　　　　　　　　　　　　　　　　　　 　　　　　●特に中小ユーザ企業における IT 活用の遅れ

3. Building infrastructure for electronic tags and e-commerce

【 Issues 】● Promotion of information-sharing beyond

boundaries of businesses and industries essential towards finding solutions to social issues such as the environment and safety concerns

【 Policies 】●Build common infrastructure for using

electronic tags and e-commerce.

Issues and Policies for Promotion of IT use

61

Encouraging small and medium-size businesses to put IT management into practiceManageme

nt innovation

Productivity improveme

nt

A public/private sector network is being built to provide support so that small businesses

themselves can innovate management and improve productivity by using IT. (Launched

01/2005)Support was upgraded and strengthened in 2007 to emphasize putting IT management “into

practice,” by offering training opportunities, collecting and disseminating examples of best

practices and developing support projects with local communities.

The “IT-Keiei Ouentai”

62

Training opportunities

・ Manager training・ CIO training・ 1-day training・ Training by sector, etc.

63

・ SMEs IT Management Award・ Presentations on web pages etc

Collecting/Disseminating examples of best practices

64

Support in coordination with local communities

Local IT management support teams *(Local governments & Private sectors support for introducing IT via IT vendors, banks, etc.)

65

Application softwareCustomer

manage-mentPersonnel

manage-mentFinance

manage-ment

Company A userCompany B user

Internet

User purchases information processing service.

Service vendor handles operation and maintenance.

Merit ① 　 Less cost burden than earlier information systems

Merit② 　 Little need for IT know-how or IT-versed personnel

- Introduction, operation and maintenance costs are low because common services are provided by information processing firms.

- Because common services are provided, user businesses have little need for specialized knowledge or personnel.

Promote IT use via SaaS with small businesses which lack Promote IT use via SaaS with small businesses which lack adequate financial resourcesadequate financial resources

Small and Medium-Size Businesses via SaaS

66 66

Key Goal IndicatorWe have to achieve the following targets by 2010,

-To raise the percentage of enterprises utilizing IT to the world’s highest levels; -To Increase the percentage of some part of SMEs utilizing IT as fundamental businesses tools to 60% or more;

-To establish an infrastructure for EC, electronic commerce, harmonized internationally and increase the percentage of its usage to 60% or more;

-To Increase the percentage of usage of EC by SMEs to 50% or more of total trade partners by FY 2010.

67

M E T IMinistry of Economy,

Trade and IndustryThank you very much

Building Asian MultinationalsProtection to Domination

Deepak GhaisasVice Chairman

November 28, 2007

Presentation Path:

Protection to Domination

Seven Strategic Steps

Our Experience at i-flex

Current Strengths

Asia - Strong economic fundamentals

Rise in Indian Multinationals

Wipro

i-flex

Ranbaxy

Titan

Protection to Domination

Succeeding to become MNC

risking

competing

failing

leading

Value Differentiation

Effi

cien

cy &

Pro

duct

ivity

New Business Metric

value-to- time

SPEEDINTEGRATIONIN

NOVATION

Capability Platform to be Dominative

M&A

Financing & Risk Mgt.Capital ProductivityStatutory Mgt.

Skills & Processes

Domain Knowledge

Global Communities

Cross Border Cultures

IPRBranding

Franchise

Seven Strategic Steps

Seven Strategic Steps

Domination

CurrentBusiness

ExistingCompetitionArena

Step out intoNew CompetitionArena

ExistingGeographies

Expand intoNew Geographies

ExistingIndustry Structure

Acquisition/ Consolidation within current

Industry

ExistingValue Delivery System

Innovation Of value Delivery System

ExistingProducts &Services

Innovation Of Products & Services

Maximization of Existing Customers

Attracting new Customers

Our experience at i-flex

What we followed at i-flex

‘FLEXCUBE’ - A Global Brand in BFSI

Get the unfair advantage

No 1 for last 5 years – from 2002 to 2007

Serviced 700+ customers across 130 countries

i-flex Presence

Cyprus Malaysia

Ghana Netherlands

India Nigeria

Jamaica Singapore

Japan South Africa

Kenya Sri Lanka

Kuwait Uganda

London Zambia

Support Presence

Subsidiaries & Offices:Amsterdam Bangalore Chennai

Mumbai US (New Jersey,New York) Pune Singapore

Presence:Australia Japan Kenya

Nigeria South Africa UK

UAE Zimbabwe

Customer Locations

Globally Diversified Revenue

Asia Pacific21%

Latin America

and Caribbean

1%

Middle East and

Africa22%

USA33%

Europe23%

Growing Global Brand Recognition

Thank You

Deepak.Ghaisas@iflexsolutions.com

Thank You

Deepak.Ghaisas@ iflexsolutions.com

“ Today out of the Fortune 500 companies, 260 are Indian Clients. When we march towards a new India, I would like the IT industry to lead the march by proclaiming that “260 of Fortune 500 are Indian MNCs.

This is my dream”

……..Dr. APJ Kalam