Cross-Industry Innovation –

Driven by Cloud and Internet of

Things

Finpro Asia

SWDM Day

13/11/2012

Introduction

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What Happened until Now and What will in the Future?

[Device]

• Concept of ubiquitous computing in telecom business

and service industry has been here for a decade.

• Many application-specific-computer-resources in our

daily life are now connected via network.

• Networked computer resources are now growing

rapidly, not only linking “people-to-people”, but also

“people-to-thing” and “thing-to-thing”.

• IOT: Internet of Things has already arrived.

• Functional cluster of networked computer resources is

becoming more prominent which leads to the eventual

standardization in structures of devices.

Ubiquitous Society in Japan, AToN – All Things

on Network in Korea, Internet of Things in

China.

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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

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Cloud Computing Resources

What will Happen in the Digital Domain?

• Business processes will be digitized and networked gradually.

• ICT will act as a coordinator to these newly digiti business processes,

bonded together across industries, and generate new ways of business

processing.

• Migration will be gradual, based on the advantages and readiness of cloud

and IOT for respective industry segments.

• Japan and South Korea are regarded as driving forces in Asia.

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Part One: Japan

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Japan: METI’s View on Competitive

Advantage in Smart Society

• Information Economy Committee of the Industrial Structure Council under METI

(Ministry of Economy, Trade and Industry) is:

• Ensuring the competitive advantage in Smart Society, and

• Analyzing changes in the industrial structure from the perspective of

“digitalization” & “networking”.

• Functions of “digitalization & networking” are changing the use of the internet from

IOC: Internet of Computers to IOT: Internet of Things.

• Impacts of “digitalization & networking” are developing new digitalization technologies

and standards to handle digitized information across industries.

• ICT associates several different business processes, knowledge, know-how, … and

brings innovation to the industry: e.g. smart grid, smart community, mass

collaboration & crowd sourcing, …

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Japan: METI’s View on Competitive

Advantage in Smart Society

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mobile handset

hierarchical structurization of each individual elemental technology

networking

digitalization

un-digital domain

establishment of individual elemental technologies digitalization of un-digital domain

tablet

digital appliances

TV

book & publication

social net

implicit

knowledge

personal tastes & preference

game

smart grid

smart community robot

medial & health

automobile & transportation

life log

agriculture

Source: Information Economy Committee of the Industrial Structure Council

user

participation

contents

It x ‘n’ domain

Concept of IT x n: cross-industry innovation by ICT

Japan: METI’s View on Competitive

Advantage in Smart Society

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Energy: Smart Community

Medical Care: Smart Health

Robot: Social Robot

Automobile: ITS

Agriculture: Smart Agri

System

Contents: Contents Creative Business

Part Two: South Korea

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Cloud: KT’s Business Plan

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Biz feasibility study and

market analysis Strategy set-up

Implement the Strategy (build infra ~ develop & launch business ~

operation of business)

April 2009 March 2010 August December December 2011

Benchmark Design architecture &

verification

Build Cloud Data

Center (Okcheon,

Mapo)

Launch public cloud Expand public cloud

-Visit 30 foreign

companies overseas

- Benchmark leading

service providers like

Amazon, Google, Apple

-Design HW & SW (Mar

~ July)

- Build and test

verification infra in

Mapo Center (August)

-Construct Center

facilities like electric

power, temperature

control system etc.

(August~December)

- Apply architecture

(HW & SW

composition)

- Launch IaaS (Dec.)

- Commercialize

DaaS (2Q, 2011)

- Launch limited

SaaS

- Commercialize

PaaS

- Launch full SaaS

BM

Consulting

June

- BM & business

strategy

Develop SaaS-based new BM

- Review alliance and prepare commercialization

Private cloud

-KT internal migration to private cloud in 3 phases

Plan & develop U-Cloud

Oct.2009

Launch and operate U-

Cloud

June.2010

Release additional features of U-Cloud October

-Plan U-Cloud business

- Build infra, develop U-Cloud

map, and test

-Launch personal consumer service in June (provide i-

Phone app in July / Android phone app in September)

- Launch enterprise U-Cloud Pro in August

- Upgrade UI/UX

- Photo printing service

- Image search service

- Music replay service

- Build file system Source: KT, 2010 © Finpro

Cloud: KT’s LTE Warp (CCC)

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Olleh LTE Warp NW

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

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).

Cloud: SK Telecom’s T cloud

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Pleasure from connectivity Sharing with Friends Continuous story

Use my contents

seamlessly via any

devices

Share my contents

with friends through

SNS

Store and use my

contents any time any

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)

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

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-Upload and download my

files easily

- Enjoy videos in my smart

phone through TV

- TV and PC are wirelessly

connected

- 3 USD per month for 100

GB

- Realtime streaming or download of

animation, movies, music, and soap

operas etc.

- 3 USD/month for unlimited

streaming of music in Music Store.

4 USD /month for unlimited watch of

SBS’s paid contents in Video Store

-Edit and print

digital photos and

Publish photo

book at one go

-

Automatic Back-up of

photos and videos in my

smart phone

Videos & photos

that are not

backed up in

U+Box App are

notified for ‘Upload

Now’

Automatic Back-up :

By setting “Automatic

back-up”, my latest

photos and videos

are automatically

backed-up in U+Box

while the phone is

being charged

Smart Grid Roadmap

Test Bed Complex

(Technical Validation)

Smart Power Grid

Smart Place

Smart

Transportation

Smart

Renewables

Smart Electricity

Service

Phase 1

(2010~2012)

• Real time PG monitoring

• Digital power transmission

• Optimal distribution system

• Intelligent home power

management

• Various offering including

pricing

• Test of EV charging facilities

• EV pilot projects

• Microgrids connecting

distributed generation, power

storage device and EV

• Consumer’s choice of

electricity rates

• Consumer’s selling of

renewable energy

Metropolitan Areas

(Intelligent

Consumers)

Phase 2

(2013~2020)

• Possible PG failure prediction

• Linking PG with other

countries

• Connect power delivery

system with DG and power

storage devices

• Smart power management of

buildings and factories

• Consumer power generation

• Expand EV charging facilities

across the nation

• EV maintenance &

management technologies

• Optimal operation of the power

system with microgrids

• New applications of power

storage device

• Transactions of electrical

power derivatives

• Nationwide real time pricing

system

• Voluntary market participants

Nationwide SG

(Intelligent Power

Grid)

Phase 3

(2021~2030)

• Self-recovery power grids

• Nationwide integrated energy

smart grid

• Zero energy buildings and

homes

• Commonplace EV and

charging facilities

• New charging methods

• Portable power storage

devices

• Commonplace high capacity

new renewable energy source

• Commercialized microgrids

• Various types of power

transaction

• Convergence business with

power industry

• Northeast Asian market

• Power grid

monitoring & Control

• Failure prediction &

automatic recovery

• Smart meters

• Automatic energy

management

• Nationwide charging

infrastructure

• ICT-based EV control

• High capacity

renewables

generation complex

• High capacity energy

storage

• Various pricing

system

• Consumer electricity

trading system

Over the period, Korea will invest KRW 7 trillion ($6B) in R&D and KRW 20.5 trillion in infrastructure

deployment

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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

Smart

Control

Safety

Car

Care

Assist

Info

• Remote starting and air conditioning; Remote door

open/close; Parking spot alarm; Automatic

information transfer between car navigation and

smartphone / PC

• Auto-transmitting air bag deployment; SOS

services; Burglar alarm system

• Car diagnosis; Supplies management; Regular

inspection report; Eco drive coach

• Content (Weather, Traffic info, etc.); Hot-spot

• Phone, Concierge service, ARS

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M2M: u-Health

Samsung’s Heath care blueprint

Samsung expects M2M synergies among the family companies and focusing on

developing technologies of smart metering, e-health care, security & safety,

digital signage

System Service Support Users

Device

(Electronics)

Bio-phamaceutique

(Electronics)

Diagnosis Eq.

(Techwin)

SMC Patients

Samsung

Life

Insurance

R&D Support

(SMC, SAIT)

Samsung Electronics

• Control U-health business

• Biosimilars

• Medical Devices

Samsung SDS

• Bio-infomatics

Samsung Techwin

• Blood Diagnosis Eq.

• Gene Diagnosis Eq.

• Diagnosis Reagent

Samsung Electricity

• Bio-inspired Cell Chip

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Shipbuilding by 2020

현재(2010) 5년(2015) 10년(2020)

Ship Digital Ship Smart Ship

• Integrated network for

ship

• Design visualization

technology

• Localizing navigating

system

• Global maintenance

and repair technology

• Intelligent navigating

information system

• Auto-pilot technology

• Technology for

controlling navigating

equipment

• Low speed satellite

communication

technology

• Technology for Off-

shore plant

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Part Three: China

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China’s 12th Five-Year Plan (2011-2015)

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Rebalancing the economy

Protecting the

environment

Promoting social

equality

SEIs:

Energy conservation and environmental

protection.

Biotechnology,

New material,

Next-generation IT,

High-end equipment manufacturing,

New energy, and

Clean-energy vehicles.

Health care

Energy

Technology

FOCUSES

INDUSTRIES

Rebalancing the Economy

China economy is now shifting from the current reliance on fixed asset investment (FAI)

and exports to a greater emphasis on domestic consumption.

• Growth rate:

• Down to 7%.

• Strategic Emerging Industries (SEIs):

• Energy conservation and environmental protection.

• Biotechnology,

• New material,

• Next-generation IT,

• High-end equipment manufacturing,

• New energy, and

• Clean-energy vehicles.

• Consumption:

• From 35% to 40% of GDP by 2015.

• Industrial upgrading:

• New manufacturing equipment and technology, and

• Certain industry sector consolidation.

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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.

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• 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.

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%.

13/11/2012 23 © Finpro

• 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.

Sectors to Watch

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Health Care

•Health care system reform continued:

•Broader basic health care coverage,

•Expanded infrastructure for grassroots medical networks,

•Public awareness in disease prevention,

• Improved health care administration,

•Creation of national health care benchmarks and standards, and

•Heavy investments in health care IT.

•Pharmaceutical sector restructured:

•Consolidate 13,000 distributors

•Commercialize its pharmaceutical distribution industry into:

•1-2 Nationals, each sales RMB 100 B

•20 Regionals, each sales RMB 10 B

•Biotechnology Promoted as an SEI:

• Innovative biotech products, high-end medical devices and patented medicines.

Energy & Environment

•RMB 3 trillion investment in the sector, with the industry growing by 15-20% annually.

•Coal as the dominant energy source, while steadily increasing proportion of renewables.

•Consolidation in Coal Sector by 2015

•From 11,000 companies to 4,000, with 8-10 expected to account for 2/3 of production.

•Nuclear and Hydropower Growth by 2015

• Increase nuclear power reactors from 11 to 25, doubling to 2% of nation’s power capacity.

• Increase hydropower’s capacity by 50%.

•Further Development of the Power Grid

• In 2009, 30% wind farms not grid-connected.

•Constructing large-scale smart grid, with investments to exceed RMB 17 billion.

•Heavy Spending for Energy and Environment Sectors (3 of 7 SEIs)

•New energy sector: nuclear, solar and wind sectors.

•Energy-efficiency and environment sectors: waste recycling and clean coal technologies.

•New energy vehicles: battery cell technology, 1 million electric vehicles production by 2015.

Tehcnology

• “Designed in China”

• Investment in science and technology education and R&D, and IPR system.

• Indigenous Innovation Supported Research & Development: core electronic, IC, life sciences, space, marine, earth sciences and nanotech.

• Intellectual Property: creation, use, protection and management.

•Administration: financial policies and supports to high-tech research funding and VC investment.

•Commercialization: from government-sponsored researches to marketplace.

•“Informatization” Increased

•Technological capability upgrades of private and public services, e-commerce, e-government and statistics systems.

• “Triple play” (convergence of telecom, broadcasting and Internet),

•Education Sees Heavy Investment

•Reform in science & tech educations

•Talent recruitment and nurturing

•Return of even more highly-educated overseas Chinese

•Next-Generation Information Technology Promoted as an SEI

•Next-generation information networks, mobile communication and the Internet, in particular, "Internet of things" and cloud computing.

Incredible Things that Happen Every 60

Seconds on the Internet in China

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http://www.businessinsider.c

om/incredible-things-that-

happen-every-60-seconds-

on-the-internet-in-china-

2011-12

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Finpro SWDM / ICT

key experts in Asia

Eija Tynkkynen and Justin Di

Beijing , China

Yoon-Mee Kim. Seoul, Korea

Tanaka Koichi. Tokyo, Japan

Ambika Oberoi . Delhi, India

Eric Cheng. Hong Kong. China

Pietro Karjalainen, Vietnam & SEA

Corina Chen. Taipei, Taiwan.

Ryan Yao, Shanghai, China.

Nelson Chen, Guangzhou, China

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

27 © Finpro