The Trends of IT Convergence in Korea

1. The Trends of IT Convergence in Korea 2011. 10. 25. Prof. Sungyoul Lee Dept. of Computer Science & Engineering Kwandong University, Korea

2. Contents • Introduction • Evolution of IT • Characteristics of the overseas IT convergence • IT industry in korea • Conclusions

3. Introduction • 21st C, Convergence era • IT, Most activating field in convergence (Ford + MS, Nike + Apple) • Convergence between traditional industries & IT • Inseparable part of every industry • Driving locomotive of economy & • Factor for business value creation • Trends of IT convergence in Korea

4. Introduction

5. Evolution of IT • ‘90s, base of digital convergence with Dot-com boom • ‘Everyware’ in our daily life • Convergence between inter-industry & inter-tech. • Became the momentum of growth • Reduced life cycle of technology  complicated • Reorganized world market as one global market • New IT = f{IT, xT, user, industry} ; convergence age

6. Impacts of Convergence • Client’s potential value realization (H/W  H/W + service/solution), ex) iPhone • Source of business competitiveness (company resource  inter-company relationship) • Industry structure reorganization (independent value chain  network type) • Social convenience augmentation (single service  convergence service), ex) communication + finance

7. Impacts of Convergence

8. Characteristics of Overseas IT Convergence • Commonly focus on Green IT • USA Synergy effect of convergence in NT, BT, IT, & CS • EU NBIC + Social science and liberal arts • JAPAN Commercialization through convergence between IT, BT, NT, ET and Seven new growth industries • KOREA Synergy combination of NT, BT, IT, & existing industries

9. IT Industry in Korea • In 2010, IT industry share was 22% of GDP Status of IT in 2007, • 1st, high speed information telecom industry • 1st, digital opportunity index • 5th, preparation of electronic government • 76%, use of Internet at home - Korea • 30%, use of Internet at home - USA

10. Governmental policy In 2010, • Initiated 31 projects of convergence • 5 major industries with IT – shipbuilding, automobile, medical service, construction, national defense • 0.15 billion dollars investment for convergence technology (2008~2012)

11. Governmental policy

12. Governmental policy Smart Transportation • Consist of ITS, BIS, Smart card, High Pass, etc. • ITS (Intelligent Transportation System) provides real time traffic control, traffic information connection, integration, processing and management by means of internet, cell phone, traffic broad casting .. • 1st rank in ITS • Smart Traffic collects traffic information and controls traffic lights, IC entry, reversible lanes. • “One Card, All Pass” policy in 2009 ~ 2013

14. Governmental policy Smart Green City • U-city includes U-education, U-health care, U-traffic control, U-security, U-media art, etc. • U-city extends to Smart Green City when it includes U-environment and U-energy

15. Driving Strategy in IT Industry • IT convergence creates new industrial markets • Convergence between IT & Non-IT occurs in a shape of embedded IT • Two types of IT industry: IT manufacturing & IT service • World market share in convergence except memory is 92.8 billion dollars in 2010

16. Driving Strategy in IT Industry • IT manufacturing area is saturated and is difficult to generate new added business value (easy to be followed) • Software developed through IT service is NOT easy to be followed • Korea is superior in the field of IT • Excavate potential IT service,NOT IT manufacturing

18. Examples of IT Convergence • LG CNS – mobile, smart, and cloud computing • Samsung SDS – smart infrastructure, space convergence, mobile communication, and digital hospital/bioinformatics • POSCO ICT – engineering service, advanced construction technology, and smart grid technology

19. LG CNS • Mobile – mobile office, mobile financial service to facilitate corporate communication • Smart – smart car w/ traffic control & location confirmation, smart factory with M2M remote control • Cloud computing – server based computing w/ only a monitor provides everything w/o internet browser, any office software, data

20. LG CNS

21. LG CNS

22. Samsung SDS • Smart infrastructure engineering (SIE) – suite of service that improves a customer’s operational efficiency ,productivity, safety, and convenience by applying intelligent ICT • Digital space convergence (DSC) – smart space and building that transcends the traditional limitations of time, space and equipment to have emotional space design and user experience ex) university library through convergence of IT & construction

23. Samsung SDS

24. Samsung SDS • Mobile communication - real time business environments that enable communication among remote places and pose no limitations in time and space • Digital hospital/bioinformatics – HIS (Hospital Information Service) includes a prescription delivery system and a hospital administration system. EMR(Electronic Medical Record), PACC (Picture Archiving and Communication System)

25. POSCO ICT • Engineering service – comprehensive engineering service in railway, energy and environment using IT convergence technology • Advanced construction technology – includes housing, plant, environment and energy to enhance the value of buildings • Smart grid technology – optimize energy efficiency by enabling the interactive, real time-based communication of power information between power supplier and consumers

26. Conclusions • Evolve from IT industry to inter-industry • Convergence speed expects to be more accelerated next decade • Converging the existing technologies with IT creates new business value • IT convergence will be ‘everyware’ in human life • Excavating IT service is right way to revive growth • Provides insights about IT convergence in Korea

27. Thank you