Research Article An Exploratory Research on Future ICT...

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Research Article An Exploratory Research on Future ICT Convergence Research Design in Smart Sensor Environment Soyoung Sung, 1 Yanghoon Kim, 2 and Hangbae Chang 3 1 Department of Security Convergence, Graduate School, Chung-Ang University, Seoul 156-756, Republic of Korea 2 Department of Cyber Security, Far East University, Chungbuk 369-700, Republic of Korea 3 Department of Industrial Security, College of Business and Economics, Chung-Ang University, Seoul 156-756, Republic of Korea Correspondence should be addressed to Hangbae Chang; [email protected] Received 21 November 2014; Accepted 15 January 2015 Academic Editor: Damien Sauveron Copyright © 2015 Soyoung Sung et al. is is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited. For the purpose of overcoming economic crisis resulting from continuing growth and employment recession recently, various convergence policies and strategies are being established and implemented. However, there is a lack of consented concept on the definition and scope of ICT convergence in the existing studies. In the case of considering convergence as an “innovation activity” in particular, there is a limitation of not being able to quantify it. In spite of the social consent and consensus on its importance, basic data, particularly quantified base data, is relatively lacking. Accordingly, this study examined the concept of the existing convergence and summarized the concept of ICT convergence based on which a methodology for researching the ecosystem of ICT convergence was designed. e significance of this study is in the fact that it proposed systemized research design and methodology for all industries for quantitative estimation of ICT convergence market scale. In the future, there is a need to research areas that were not included in this study and for gradual improvement of elements that need further specified criteria. 1. Introduction For the purpose of overcoming economic crisis resulting from continuing growth and employment recession recently, various convergence policies and strategies are being estab- lished and implemented. Such process is bringing about core changes throughout the society and nation upon advancing into multiarea convergence such as humanities and arts upon undergoing convergence between heterogeneous technolo- gies and industries [1]. In the case of ICT convergence oſten being discussed as an object (subject matter) of convergence, it is creating new value that includes product servitization or service productization phenomena through convergence of various technologies/industries [2]. In particular, support system for ICT convergence new product/service is being quickly pre- pared and, also in the aspect of industry, innovation activity with new value is being conducted in various areas such as automotive, shipbuilding, and textile. Based on collaboration between Korea’s carmakers and ICT companies, new added values were created as voice recognition technology and multimedia related technology for vehicles was produced as well as convergence outcomes. In the case of shipbuilding site, the application of ICT technology has allowed real- time verification of process for manufacturing intelligent ship for smart sailing as a representative example of innovation activity [3, 4]. To continuously allow such innovative change process, there is a need for timely identification of the present con- dition of ICT convergence along with enactment of related law [5]. In addition, related policy development is required to allow proactive response to the possibility of change in the future. In the policy development for important phenomenon that leads to changes in the overall economy, accurate estimation and forecast of market scale and phenomenon are required [6, 7]. However, there is a lack of consented concept on the definition and scope of ICT convergence in the existing studies and in the case of considering convergence as an “innovation activity” in particular; there is a limitation of Hindawi Publishing Corporation International Journal of Distributed Sensor Networks Volume 2015, Article ID 741616, 8 pages http://dx.doi.org/10.1155/2015/741616

Transcript of Research Article An Exploratory Research on Future ICT...

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Research ArticleAn Exploratory Research on Future ICT Convergence ResearchDesign in Smart Sensor Environment

Soyoung Sung,1 Yanghoon Kim,2 and Hangbae Chang3

1Department of Security Convergence, Graduate School, Chung-Ang University, Seoul 156-756, Republic of Korea2Department of Cyber Security, Far East University, Chungbuk 369-700, Republic of Korea3Department of Industrial Security, College of Business and Economics, Chung-Ang University, Seoul 156-756, Republic of Korea

Correspondence should be addressed to Hangbae Chang; [email protected]

Received 21 November 2014; Accepted 15 January 2015

Academic Editor: Damien Sauveron

Copyright © 2015 Soyoung Sung et al. This is an open access article distributed under the Creative Commons Attribution License,which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

For the purpose of overcoming economic crisis resulting from continuing growth and employment recession recently, variousconvergence policies and strategies are being established and implemented. However, there is a lack of consented concept on thedefinition and scope of ICT convergence in the existing studies. In the case of considering convergence as an “innovation activity”in particular, there is a limitation of not being able to quantify it. In spite of the social consent and consensus on its importance,basic data, particularly quantified base data, is relatively lacking. Accordingly, this study examined the concept of the existingconvergence and summarized the concept of ICT convergence based on which amethodology for researching the ecosystem of ICTconvergence was designed.The significance of this study is in the fact that it proposed systemized research design andmethodologyfor all industries for quantitative estimation of ICT convergence market scale. In the future, there is a need to research areas thatwere not included in this study and for gradual improvement of elements that need further specified criteria.

1. Introduction

For the purpose of overcoming economic crisis resultingfrom continuing growth and employment recession recently,various convergence policies and strategies are being estab-lished and implemented. Such process is bringing about corechanges throughout the society and nation upon advancingintomultiarea convergence such as humanities and arts uponundergoing convergence between heterogeneous technolo-gies and industries [1].

In the case of ICT convergence often being discussedas an object (subject matter) of convergence, it is creatingnew value that includes product servitization or serviceproductization phenomena through convergence of varioustechnologies/industries [2]. In particular, support system forICT convergence new product/service is being quickly pre-pared and, also in the aspect of industry, innovation activitywith new value is being conducted in various areas such asautomotive, shipbuilding, and textile. Based on collaborationbetween Korea’s carmakers and ICT companies, new added

values were created as voice recognition technology andmultimedia related technology for vehicles was produced aswell as convergence outcomes. In the case of shipbuildingsite, the application of ICT technology has allowed real-time verification of process formanufacturing intelligent shipfor smart sailing as a representative example of innovationactivity [3, 4].

To continuously allow such innovative change process,there is a need for timely identification of the present con-dition of ICT convergence along with enactment of relatedlaw [5]. In addition, related policy development is requiredto allow proactive response to the possibility of change in thefuture. In the policy development for important phenomenonthat leads to changes in the overall economy, accurateestimation and forecast of market scale and phenomenon arerequired [6, 7].

However, there is a lack of consented concept on thedefinition and scope of ICT convergence in the existingstudies and in the case of considering convergence as an“innovation activity” in particular; there is a limitation of

Hindawi Publishing CorporationInternational Journal of Distributed Sensor NetworksVolume 2015, Article ID 741616, 8 pageshttp://dx.doi.org/10.1155/2015/741616

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not being able to quantify it. In spite of social consentand consensus on its importance, basic data, particularlyquantified base data, is relatively lacking. Accordingly, thepurpose of this study is to examine the concept of the existingconvergence and summarize the concept of ICT convergence.

2. ICT Convergence Framework

2.1. Convergence Concept. Lexical-semantic meaning of con-vergence is “the task of combining into indistinguishableone upon melting different kinds”. Specifically, convergencecan be specified into a phenomenon of more than twodifferent products/services/processes being created into onenew product/service/process through chemical bonding.

Depending on the degree of convergence of objects,convergence can be summarized into three types: “package,”“hybrid,” and “fusion.” First of all, “package” is also referredto as bundle. It refers to a form of providing functions ofmultiple products into one product/service. For example,while selling computer or hardware, necessary software(bundle software) is provided together. Next, “hybrid” refersto a form of combining functions that could be obtainedfrom various products/services into one product/service. Forexample, there are products that can provide both notebooklaptop and tablet PC functions through one device. Lastly,“fusion” refers to a form of providing new value by com-bining functions received from various products/services.Examples include photoelectron that combines optics andelectronic technology, bioengineering that combines biologyand cutting-edge device technology, and digital computing inwhich photocommunication technologies are integrated (SeeFigure 1).

Accordingly, convergence can be defined with a com-prehensive meaning of intermixing of technologies/stud-ies/products/industries of different areas rather than beinglimited to a particular area of industry and technology.Specifically, it refers to an innovation strategy and an imple-mentation method of creating bigger value in life and indus-try compared to that of the past by combining the existingtechnology, product/service, and industry through creativemethod. In addition, convergence can be defined as a technol-ogy that leads to future economy and sociocultural changesby creating new creative value through ascending combina-tion between new technologies or between new technologiesand the existing study/industry [8]. Based on a classificationaccording to the usage purpose of convergence technology, itcan be divided into “original technology creation type,” “newindustry creation type,” and “industry advancement type”and it can be segmented into “ICT-based,” “NT-based,” “CT-based,” “ET-based,” and “BT-based” according to the area ofconvergence technology.

According to the scope of the object being fused, con-vergence can be divided mainly into technology convergenceand industry convergence. Technology convergence is aphenomenon of more than two technological elements com-bining chemically to perform a new function for the existingtechnology [9]. Industry convergence indicates an activityof innovating existing industry or creating an industry withnew social/market value through creative combination and

Bundle

Hybrid

Fusion

Strong

Weak

Figure 1: Change of conceptual definition according to level ofconvergence.

complexation between industries, between technology andindustry, and between technologies.

In addition, the concept of convergence can be dividedinto “product servitization” and “service productization”through the process applied to product and service. Productservitization refers to adding service to product or providingproduct in a form of service. Service productization refersto a recombination of mass-producing service through ser-vice standardization, service process conversion, and serviceautomation by reinforcing service upon releasing product byservice provider or adding product to reinforce service [10].

2.2. ICT Convergence Concept Design. Recently, ICT con-vergence is occurring rapidly centering on areas with highpossibility of ICT technology application and areas with highpossibility of online conversion such as web and mobile.Accordingly, it is creating outcomes such as product combi-nation effect, economy of scale effect, creation of new profitsource, and resolution of socioenvironmental issues. Uponintegrating the concept of convergence explained earlier, ICTconvergence is being defined in various studies.

In Seo Dong-hyuk’s study [11], ICT convergence isseen as a phenomenon of developing/producing technolo-gies/products with new characteristics upon losing thecharacteristics of individual technological elements throughmechanical/chemical combination of ICT technology andanother technological element. In National IT Industry Pro-motionAgency’s study [12], ICT convergence is being definedas a phenomenon of granting new value such and conti-nuity/intelligence upon applying or embedding ICT tech-nology to the existing product/service industry to improvegrowth/efficiency of function. Accordingly, industry-specificprocesses were separated into common area and distinctarea according to the industry to examine ICT technologyand process measurement method and ICT technology andproduct/service measurement method (see Figure 2).

In addition, it is also seen as a phenomenon of enhancingthe existing added value or creating new added value byinnovating product/service/process of another industry uponembedding ICT product (computer, semiconductor sensor,electronic parts, software, ICT service, and communicationservice) as a part or module [13, 14].

In addition, it is being summarized as creating newindustry or product/service by integrating ICT advantagesof intelligence, embedded nature, mobility, real-time natureand integration into traditional manufacturing or service

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Processtrapped value

Productservice

Industrynew value

Figure 2: ICT convergence and value creation.

industries [15]. Additionally, it is also seen as a phenomenonof devices and functions being combined as devices andservices in computer/communication/broadcasting areasevolve. Namely, it is being considered as a loss of individualtechnological elements and a creation of product/servicewithnew characteristics [16].

Accordingly, there is a certain level of consensus on thedefinition of ICT convergence by experts in related areas,but the existing ICT technology centered definition is beingdescribed as a narrow concept that cannot be explainedspecifically or macroscopically.

Definitions and studies on ICT convergence are basedon the premise of theories and studies and consensus ofexperts in related areas. However, the majority of definitionsare being defined with ICT technology centered contents oras a phenomenon too comprehensive to be specific.

First, ICT technology centered definitions have theadvantage of being very specific, but it is difficult to researchconvergence throughout all industries, as they are describedas a narrow concept that cannot macroscopically explainconvergence between industries. On the other hand, recentdefinitions of ICT convergence describe it as a comprehensiveand abstract phenomenon, thereby causing difficulties inestablishing reference point to design scope to researchecosystem. Accordingly, there is a need for a specific and sep-arate operational definition for researching ICT convergenceecosystem throughout all industries.

To create operational definition of ICT convergence,a discussion is first needed on how to distinguish ICTconvergence from the existing ICT utilization. The majorityof previous studies focused on distinguishing between ICTutilization (of applying ICT technology to product/serviceprocess) and ICT convergence (of combining or embeddingICT technology to product/service) and the purpose was toresearch with such distinction as much as possible.

ICT utilization subject to the process and ICT conver-gence process of products and services have been promotedwith the change of ICT utilization index (process innovation→ creation of new value). On the other hand, the concept ofICT convergence is advanced in the course of discussion ofrecent industrial convergence. In particular, ICT convergencecan be summarized as the course of innovating existingproducts and services or creating a new value upon embed-ding ICT sensing, networking, computing, and actuatingtechnologies as a component or module. Accordingly, it isdefined as a creative and innovative activity and phenomenonthat creates new social value and market value by integratingtechnologies between information communication or infor-mation communication and other industries.

Simple application of ICT technology to the existing

Integration of ICT technology in unit to

Product/service

ICT utilization ICT convergence

product/service (ICT= platform)

the existing product/service (ICT= component)

Figure 3: Comparison of ICT utilization and ICT convergenceconcepts.

In detail, a wide concept of ICT convergence can beagain divided into ICT utilization and a narrow conceptof ICT convergence. ICT utilization means that the processfor the production of products and services is applied toIT system (creation of trapped value). A narrow conceptof ICT convergence can be described as intelligent processby integrating IT element technology into the product andservice itself (creation of new value).

ICT can be recognized as one of the elements consti-tuting ICT system with HW, NW and a person (IT systemmanager and user), and so forth, so that the attribute ofICT convergence is also applied like the concept of ICTconvergence.Therefore, the wide concept of ICT convergencecan be divided into ICT utilization and the narrow conceptof ICT convergence. For reference, it is not easy to clearlydistinguish the concept of ICT convergence with that of ICTutilization in the service industry unlike the manufacturingindustry. For example, it is not clear to distinguish whethera reservation of hotel service with ICT is ICT utilization ofprocess or ICT convergence of the product. In this study,we defined that ICT convergence is the upper level conceptincluding ICT utilization based on related studies and severalpanel discussions with experts (see Figure 3).

In short, ICT convergence means developed and utilizedICT for the creation of convergence between industries andinnovative services, not ICT itself. It can be classified in theform of industrial process + ICT, industrial product + ICT orservice + ICT, and so forth.

3. Analysis of ICT Convergence Ecosystem

3.1. Perspective on ICT Utilization. In general, the frameworkfor ICT utilization index is composed of seven evaluationareas such as resource, governance, acceptiveness, leadership,process, performance, and environment (see Figure 4). Esti-mating ICT utilization index in the view of “in department(in function),” “between department (between function),”“between business,” and “new business creation and strategicoperation (strategic management),” about the process areaamong this evaluation framework, ICT utilization index

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Governance

Performance

Process

Resource

Leadership

Acceptiveness

Environment

Figure 4: ICT utilization index evaluation framework.

could be calculated. For the investigation of the currentsituation of ICT utilization, it surveyed 3000 companieswhich have more than 10 employees.

ICT utilization index could be calculated for 4 processareas utilized for work with ICT. As a result, total ICT utiliza-tion index showed 57.7 points and was seen by areas to show“in function (72.6P) > between function (67.2P) > betweenbusiness (52.4P) > strategic management (38.6P)” in thisorder. 57.7 points of ICT utilization index indicated that it wasthe step to be accomplished to share the information and elec-tronic cooperation. It was investigated to show ICTutilizationby ERP (38.4%), CRM(22.4%), SCM(15.7%), and smart office(29.0%) in detail. It is analyzed that companies would utilizeICT in business production and sales activity aggressivelyabove the step of ICT utilization for work efficiency.

3.2. Perspective on ICT Convergence Ecosystem. In general,ecosystem refers to a space in which biological communalsystem and surrounding environment interact and ICT con-vergence ecosystem form industry-specific new ecosystemsthrough the process of convergence with different industriescentering on ICT industry.The purpose of ecosystem analysisis to identify positions of interest parties within the industryand to examine how continuous advancement and evolutionof industry proceed. Based on such perspective, the purposeof this study was to analyze such phenomenon accordingto the roles of various constituents (components) of ICTconvergence ecosystem (see Figure 5).

To specify the scope research of ecosystem in ICT con-vergence industry, elements such as supplier and purchaserwere simplified and structured based on product/service flowas shown in Figure 6. First, for the purpose of creating ICTconvergence product/service, necessary elements need to besupplied (input element supplier) through which ICT con-vergence product or service is developed (convergence pro-duct/service producer/developer) and such product or ser-vice created is purchased and used by company/individual/government (output purchaser/user). For transaction of suchelement and product/service, secondary market such aswholesale/retail and distribution exists, and environmentalelements such as legal/system/policy/infrastructure affectthe surrounding of every market transaction and produc-tion/development during which company, organization, andindividual are all included in supplier, producer/developer,and purchaser/user.

ICT convergence

product/service user

ICT convergence

element supplier

ICT convergence

product/service provider External

environment

Figure 5: Composition of ICT convergence ecosystem (0 level).

ICT convergence industry

Environment (business,

infrastructure, policy, and law)

Input element supplier

Output purchaser/user

ICT convergence product/(service)

producer/(developer)

Marketdistribution

Figure 6: Decomposition of ICT convergence industry ecosystem(1st Level).

First, the area of input element supply of ICT convergenceis as follows. Among elements used for ICT convergenceproduct production and service development, ICT elementsweremainly divided into four types of (1) embedded software,(2) IT devices/parts, sensor such as SoC, (3) software exceptfor embedded software, and (4) digital contents. In addition,the remaining elements that cannot be segmented and distin-guished or that with insignificant meaning for research werecombined as (5) others (see Figure 7).

Next, the area of ICT convergence product/service pro-duction/development is as follows. In the case in whichproduced products or provided services that generate salesfor company are ICT convergence outputs, they were allincluded in the research. In addition to companies thatproduce/develop convergence product and service throughcombination (convergence process) of five input elementsmentioned in previous supply area, the cases of creatingnew ICT convergence output by using ICT convergenceoutput as another input element are also included in thisarea. For example, smart phone is a representative ICTconvergence product. Accordingly, production of variousparts and contents to create smart phone will be researchedin the area of supply and smart phone production will beresearched in this area. Likewise, the cases of producing newproduct or service for which smart phone is provided as aninput element are also researched in this area.

Lastly, the area of ICT convergence product/service pur-chase/use is as follows. Whether to include the research ofpurchaser/user of ICT convergence product/service requires

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ICT convergence input element

production/supply company

Embedded software supply

company

IT parts/devicessuch as SoC

supply company

Other elementssuch as

contents,application

software

Convergencetechnology/manpower

supplycompany

ICT convergence parts,product/service

production/developmentcompany

ICT convergenceproduct/service utilization

companybesides

production process

ICT convergenceproduct/service utilization

companyfor production process

Individuals and so forth

Figure 7: Decomposition of ICT convergence ecosystem research model (2nd Level).

a multidimensional review. In the case of a company thatmakes cars by purchasing tires attached with sensor, itbecomes a purchaser of ICT convergence product as well asa producer of another ICT convergence product. Such caseshould be clearly included as research object and it would bemore reasonable to include it as producer/developer insteadof purchaser/user.

Accordingly, in the area of purchase/use, whether toinclude in research was determined based on the charac-teristic of utilizing the purchased ICT convergence outputinstead of the characteristic of output of the correspondingcompany. In the case of a company utilizing ICT convergenceoutput to produce/develop product/service, it was includedin research, while excluding the case of using it simply forthe company’s work support activity. The reason is becausealthough ICT utilization besides production process can beseen as internal innovation of company, it is an “efficiencythrough improvement of the existing process” instead of “newvalue creation” since it is not directly related to output.

The sales amount values of ICT convergence compared tothe total sales amount of research object companies showed17.7% in 2012 and it is expected to increase by 1.4% to 19.1%.

On the scale of total sales amount, the increase rate of com-pany total sales amount compared to 2013 reaches 0.7%, butsales amount of ICT convergence is expected to show com-paratively high increase rate, which is 8.8%.The company canmake a plan to invest new product, service development, andprocess innovation through ICT convergence in the future.The scale of research and development budget invested inICT convergence showed entirely a total of 9 trillion and 359hundred billion wons among research object companies in2012 and it is expected to reach 10 trillion and 442 hundredbillion wons which is an increase by 7.3%. Compared tomanufacturing company and nonmanufacturing company,the scale of research and development investment aboutICT convergence reaches 4 times in 2012. The difference ofinvestment sale like this is expected to maintain almost thesame level and manufacturing company (7.9%) is expectedto have a more highly investment increase rate of researchand development in ICT convergence in 2013 compared to2012 than nonmanufacturing company (4.9%). This meansthat manufacturing company is putting much more effortin ICT convergence to improve competitiveness than non-manufacturing company. Average research and development

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investment scale in ICT convergence per companies by firmsize is about 21 billion and 7 hundred wons for big companyand 7 hundred million wons for small and medium-sizedcompany. In 2013, the research and development investmentscale is expected to increase by 7.6% in big company and3.2% in small and medium-sized company. We can know(figure out) that the capacity for research and developmentinvestment in small and medium-sized company for ICTconvergence is vulnerable.

4. Future Evolution of ICTConvergence Ecosystem

4.1. Analysis and Forecasting of ICT Convergence Industry.To understand the scale of ICT convergence industry fromnational economy level, the entire industries need to beincluded as a research object. In themidst of a situation of notknowing how ICT convergencewill appear inwhich industry,there is a high probability of distorting information upon esti-mating the national ICT convergence market scale focusingon certain industries where ICT convergence outcome hasbeen drastically revealed, or representative convergence casecompanies.

In themidst of current circumstancewhere a separate ICTconvergence industry classification system that can includenational ICT convergence market does not exist, it would bedifficult to understand the ICT convergence industry marketscale of the country upon researching only certain strategicindustries. In addition, it would be necessary to estimateindustry-specific ICT convergence sales amount by research-ing the ICT convergence sales records of companies in theentire industry. Additionally, selecting research objects needsto be based on MECE (Mutually Exclusive and CollectivelyExhaustive) standard for the entire industries. To satisfy theMECE standard, it would be ideal currently to set populationbased on theKorean standard industrial classification system.

The existing research studies on convergence industrystatus and outlook were conducted partially focusing onindustries that are considered important in terms of policyand it is also difficult to compare among industries for ICTconvergence level as the layer of major large scale classifi-cation, medium scale classification, and small scale classi-fication is intermixed for industrial classification standardaccording to the purpose of research study. In comparativestudies on industrial competitiveness among countries, itis common to be based on classification system consistentwith international standard industrial classification systemsuch as the OECD and UN. To conduct time-series researchstudy in the future, it is necessary to maintain the continuityand consistency of statistics for which the maintenance andrenewal of population based on consistent standard is animportant assignment. Accordingly, it would be desirable toconduct national level based on standard industrial classifi-cation system.

For the purpose of forecasting total sales amount ofKorean companies and ICT convergence sales scale, researchobject companies were instructed to respond with theirexpected growth rate for 2014 and 2016 based on 2013,based on which forecast figures were estimated. Accordingly,

2,656.32,891.0

3,421.9

4,241.1

0.00500.00

1,000.001,500.002,000.002,500.003,000.003,500.004,000.004,500.00

2012 2013 2014 2016

(uni

t: 0.

1 bi

llion

$)

Figure 8: Forecast of ICT convergence sales amount.

estimated total sales amount of Korean companies in 2016was estimated to be 1.9451307 quadrillion wons, which isan increase by 29.7% (6.7% annual mean) from 1.4997618quadrillion wons in 2012, among which sales amount in thearea of ICT convergence was estimated to be 424.1147 trillionwons, which is an increase by 59.7% (12.4% annual mean)from 265.6323 trillion wons in 2012. Namely, Korean com-panies will continue to actively implement ICT convergencebased on the forecast that sales amount in the area of ICT con-vergence will show nearly twice higher growth rate comparedto the sales amount of the entire companies (see Figure 8).

4.2. ICT Convergence Business Design. Efforts to innovatebusinessmodel are needed instead of technology.The chronicill practice of Korean companies that have been competingthrough price or quality has not been resolved becausethey have been implementing only process innovation (fastfollower) for ICT convergence product/service developedoverseas instead of innovation of ICT convergence prod-uct/service (first mover). Accordingly, it is necessary to makeefforts of business model innovation (BMI) to overcometechnological weakness.

Assessment of value of convergence study is neededamong school systems. Considering that significant outcomecan be created in convergence through significant differenceand variety of input elements, social structure and related pol-icy of our country that has long been pursuing homogeneityand excluding variety are becoming fundamental hindrance.In this sense, opportunities of collaboration and success arelacking. Accordingly, it is necessary to form social sentimentof accepting heterogeneity in hiring/placement/promotion ofstaff in organization while expanding variety. In addition,efforts are needed from the governmental level to supportthe promotion of convergence industry (funding, humanresources, education, promotion, etc.) based on the existingrelated regulations.

In the area of public sector, creation of ICT convergencemarket is also needed. It is necessary to establish newproduct/service that can increase customer (people) benefitand deduce ICT convergence cases in various public sectorssuch as firefighting, disaster prevention, crime prevention,water resources, transportation, and pharmaceutical controlthat can lead private sector of ICT convergence. Furthermore,

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classification system and research activities also need to beresearched.

4.3. ICTConvergence R&DDesign. Establishment of demandcentered ICT R&D strategy is needed. Since the approach ofcultivating market after developing technology while devel-oping ICT convergence product/service is being used (due tolack of consideration of commercialization or marketing), itis necessary to establish and implement the strategy of devel-oping both technology and customer. In particular, there is aneed for an approach that involves planning/developing ICTconvergence product/service not from technician/supplierperspective but user/consumer perspective and releasingproduct/service according to market/customer demand ordeveloping initial market.

It is necessary to establish industry’s common/specializedICT convergence platform. In the state of investing a sig-nificant amount of cost and effort for developing ICT con-vergence product/service according to company/industry,it is necessary to develop national level ICT convergenceplatform (technology, service, business, and information)and support the development of distinct convergencemoduleconsidering the characteristics of certain industries. Based onthis, it is expected to perform not only collaboration amongsupply companies but also interconnection between supplycompanies and demand companies relatively easily.

There is a need to conduct research on leading tech-nology centered ICT convergence. It is necessary to defineand deduce representative technologies related to ICT con-vergence such as RFID and M2M and annually researchand summarize their status of technology and utilizationto observe the type of technology around which conver-gence proceeds. From the standpoint of supplier of conver-gence, such work can present R&D direction to technologydeveloper, product/service developer, and product/serviceprovider and can be used as a basic information in designing anew classification system centering on convergence technol-ogy and convergence product/service.

5. Conclusion and Future Study

The significance of this study can be found in the sensethat it proposed and applied systemized research design andmethodology for the entire industries for quantitative estima-tion of ICT convergencemarket scale. In specific, significanceof this study can be summarized into the following threetypes:

(1) consensus on specific ICT convergence definition andresearch scope;

(2) design of present condition researchmethodology forentire industries based on Korean standard industrialclassification;

(3) estimation and forecast of market scale based onresearch result.

The existing researches on ICT convergence have beenconducted based on the premise of somewhat abstract defi-nition of ICT convergence through the method of conduct-ing research upon selecting representative item within the

corresponding area after separately defining a few represen-tative areas in which ICT convergence is occurring actively.During the estimation and forecast of market scale, researchdata or macroeconomic index and expert prospects havebeen used as main methods in addition to research result. Inthis study, it performed the work of setting the measurablescope of ICT convergence through individual object (com-pany) unit research, based on which present condition wasresearched while also forecasting market based on researchresult. Accordingly, the biggest significance of this study isin the fact that it created basic frame for calculating andestimating quantitative index of ICT convergence of indi-vidual element unit research.

In summary, the significance of this study is in the factthat it performed quantitative measurement according to rel-atively common standard and method rather than changingbased on particular time or standard for ICT convergence ofentire industry. It can be expected that the study result canbe utilized in the future in the sense that it became basicwork that allows accurate calculation of quantitative indexthrough gradual improvement in the future of elements thatneed more specific standard and research on areas that werenot included in this study.

Disclosure

Soyoung Sung is the first author.

Conflict of Interests

The authors declare that there is no conflict of interestsregarding the publication of this paper.

Acknowledgments

This work was supported by the Human Resources Develop-ment (no. 20154030200860) of the Korea Institute of EnergyTechnology Evaluation and Planning (KETEP) Grant fundedby the Korea Government Ministry of Trade, Industry andEnergy. This research was supported by the MSIP (Ministryof Science, ICT and Future Planning), Korea, under theCPRC (Communication Policy Research Center) SupportProgram (R0880-15-1007) supervised by the IITP (Institutefor Information & Communication Technology Promotion).

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