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A Model for Measuring Standardization Level of Information and Communication Technology: Korean Case

A Model for Measuring Standardization Level of Information and Communication Technology: Korean Case. Lee, Seung-Hwan, Park, Myeong-Cheol, Lee, Sang-Woo*, Koo, Kyoung-Cheol** * Information and Communication University (ICU) ** Telecommunication and Technology Association (TTA).

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A Model for Measuring Standardization Level of Information and Communication Technology: Korean Case

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  1. A Model for Measuring Standardization Level of Information and Communication Technology: Korean Case Lee, Seung-Hwan, Park, Myeong-Cheol, Lee, Sang-Woo*, Koo, Kyoung-Cheol** * Information and Communication University (ICU) ** Telecommunication and Technology Association (TTA) 23. Aug. 2003 Information and Communication University

  2. Contents • Introduction • Literature review • ICT classification scheme • Development of standardization index model • Discussion on validity of the proposed model • Implications and conclusions Information and Communication University

  3. 1. Introduction Standardization issue in the information and telecommunication is increasingly important with the development of technology. Standardization is not an option but a requirement. In order to allocate limited national resource efficiently, the policy maker must know what is the current standardization level of technology. It seems to be very tough to measure the standardization level, because the structure of among information and communication sub-technologies are so complex. This paper proposes an index model which can measure the degree of standardization in Korean information and communication technology field. Information and Communication University

  4. 2. Literature Review There is no prior research for this issue in ICT industry. • But some similar researches were conducted. • Competitive standardization strategy in information and communication industry, • Korea Institute for Industrial Economics & Trade (KIET) • - “National Informatization Index”, National Computation Association (NCA) • - “Informatization level of government division”, Jung and Kim • - “Level of enterprise informatization and implications”, Lim • “A study on the development of informatization index in Korean Region”, • Korea Information Strategy Development Institute (KISDI) • - “The Global Competitiveness Report”, World Economic Forum (WEF) • “The World Competitiveness Year Book”, • International Institute for Management Development (IMD) • etc. From the review of these researches, most researches used similar approach. First find some relevant variables, and then combined these variables to produce an index using weighted average concept. Information and Communication University

  5. 3. ICT classification scheme To establish a proper technology classification, various existing ICT classifications were examined. • Technology classification scheme • - Classification based on function and role of technology • Consideration of inter-relationship of unit technology • Classification based on IT industry and products. etc. This study will use the Telecommunication Technology Association(TTA) technology classification scheme. Information and Communication University

  6. Main sectors Sub-sectors Electric communications Telecommunication network technology Transmission technology Line technology Terminal technology Telecommunication basic technology Radio communications Radio communication technology Broadcasting technology Wireless terminal technology IMT-2000 Information technology Operation services of telecommunication network Common basic technology Computer network technology Software Information security 3. ICT classification scheme • TTA Technology classification • TTA is leading national standardization activities using this classification. • TTA has been gathering data based on this scheme. Information and Communication University

  7. 4. Development of Standardization Index Model Model Overview ST_Index i = Standardization index of technology field i W j = Weight of factor j F j = Data value of factor j  Ni = Normalization factor of technology field i • Standardization level of each sector would be determined by explanatory factors. • These factors have different weights. • Market size is considered as normalization factor for relative value (Ni). • Data value for each factor divided by market size is standardized. • (Mean is 0, Variation is 1) Information and Communication University

  8. Factors Market Degree of competition Market size Product life cycle ICT Industrial export Policy Test authentication Utilization of standards Number of standards Number of KICS making/revision Standardization budget Technology/Human resource Number of standardization expert Number of technology expert Size of technology export ICT R&D expenditure ICT facility expenditure Intellectual property right 4. Development of Standardization Index Model Selection of standardization explanatory factors Information and Communication University

  9. Factors Importance Technology/Human resource Number of standardization expert 4.05 Technology/Human resource Number of technology expert 3.94 Policy Utilization of standards 3.91 Policy Test authentication 3.89 Market Degree of competition 3.77 Policy Standardization budget 3.71 Technology/Human resource Number of technology export 3.60 Market Market size 3.49 Policy Number of standards 3.42 Market ICT Industrial export 3.4 Policy KICS making/revision 3.37 Technology/Human resource ICT R&D expenditure 3.34 Market Product life cycle 3.34 Technology/Human resource Intellectual property right 3.34 Technology/Human resource ICT Facility investment 2.97 4. Development of Standardization Index Model First expert survey and results • Total of 35 replies were obtained and used for the study. Response rate: 23%, 5-points scale • In order to reduce factor, 95% confidence interval was used (upper bound: 3.736, Lower bound: 3.40) Dropped Information and Communication University

  10. Electronics Radio IT Population 95(35.71%) 77(28.94%) 94(35.33%) Sample 13(29.55%) 15(34.09%) 16(36.36%) Chi-Square test results Group Observed N Expected N Residual Electronics 13 15.7 -2.7 Radio 15 12.7 2.3 IT 16 15.5 .5 Total 44 Test statistics Chi-Square 0.885 2 Asymp. Sig. 0.643 4. Development of Standardization Index Model Second survey and results - In order to measure the weight of each factor, AHP methodology was used. - Total of 30 replies were obtained and used for the study. Response rate: 20%. - To confirm the sample truly reflected the actual distribution, Chi-square test was carried out. df - At 5% significant level, the sample distribution appeared to well reflect the actual distribution. Information and Communication University

  11. 4. Development of Standardization Index Model Second survey and results : AHP hierarchy Evaluation of standardization factor weight Goal Criteria Market Policy Technology/human Degree of competition (M1) Test authentication (P1) # of standardization expert (T1) # of standards (P2) # of technology expert (T2) ICT industrial export (M2) Utilization of standards (P3) # of technology export (T3) Standardization budget (P4) Information and Communication University

  12. Criteria Sub-criteria Local weight Global weight Market (0.3272759) Degree of competition 0.5589 0.1892 Exporting IT industry 0.4441 0.1444 Policy (0.3237241) Test authentication 0.1849 0.0598 Number of standard 0.2381 0.0770 Utilization of standard 0.3259 0.1055 Standardization budget 0.2511 0.0819 Tech/human resource (0.3488621) Number of standardization expert 0.4564 0.1592 Number of technology expert 0.3028 0.1056 Number of technology export 0.2408 0.0840 4. Development of Standardization Index Model Second survey and AHP results - Expert Choice Software was used. - Consistency ratio was equal to or less 0.07. Information and Communication University

  13. 4. Development of Standardization Index Model Model Application: Korean ICT industry • Data were gathered. • Degree of market competition, market size, ICT industrial export, # of ICT expert, • # of technology export are from the Korea Association of Information and Telecommunication • (KAIT). • In this study, degree of market competition substituted for number of company. • Test authentication, utilization of standards, number of standards, standardization budget and Number of standardization are obtained from Telecommunication and Technology Association • (TTA). Information and Communication University

  14. Technology classification Standardization index Electronics Telecommunication network -0.033 Transmission technology -0.328 Line technology -0.567 Terminal technology -0.492 Telecommunication basic -0.218 Radio Radio telecommunication -0.079 Broadcasting technology -0.485 Wireless terminal technology -0.570 IMT 2000 0.650 IT Operation service of telecommunication 0.356 Common basic technology 0.242 Computer network 0.860 SW 0.316 Information security 0.347 4. Development of Standardization Index Model Model Application: Korean ICT industry Information and Communication University

  15. Technology classification Standardization index Electronics Telecommunication network 47.62 Transmission technology 26.24 Line technology 8.93 Terminal technology 14.36 Telecommunication basic 34.21 Radio Radio telecommunication 44.28 Broadcasting technology 14.87 Wireless terminal technology 8.72 IMT 2000 97.10 IT Operation service of telecommunication 75.73 Common basic technology 67.54 Computer network 100 SW 72.90 Information security 75.15 4. Development of Standardization Index Model Model Application: Korean ICT industry(Scale of 100 points standardization index) • It is necessary to convert standardization index into numbers that are more helpful in decision-making • 99.99% confidence interval was used for conversion (Lower bound: -0.6903, Upper bound: 0.69). Information and Communication University

  16. 4. Development of Standardization Index Model Measurement of standardization index for Korean ICT industry Industry_ST_Indexi = ICT industry standardization indexWi = Weight of i technology field Wj= Weight of j factor Fj = Data value of j factor Ni = Normalization factor for comparing • This study obtained the standardization index of the entire information communication • industry by determining the weight of each technology based on its market size. • The standardization index of the whole of the information communication industry • in Korea was 48.92 on the scale of 100. Information and Communication University

  17. 5. Discussion on the validity of the proposed model Two approaches • The first method, a holistic method, is an approach that collects specialists’ intuitive judgments on the degree of standardization of each information communication technology through a questionnaire survey and verifies whether their judgments are correlated with the ranking of standardization indexes measured through the research model. • The second approach is a historical method that examines how correctly the developed standardization index model interprets the history of standardization in the past. Information and Communication University

  18. Model rank Survey rank Computer network technology 1 5 IMT-2000 2 6 Operation services of telecommunication network 3 4 Information security 4 7 SW 5 12 Common basic technology 6 1 Telecommunication network technology 7 9 Radio communication technology 8 2 Telecommunication basic technology 9 14 Transmission technology 10 4 Broadcasting technology 11 3 Terminal technology 12 13 Line technology 13 8 Wireless terminal technology 14 11 5. Discussion on the validity of the proposed model Holistic approach • Total of 30 replies were obtained and used for the study. Response rate: 20%, 5-points scale. • Rank correlation test was performed. • (Kendall’ consistency coefficient is 0.76, Kendall’ and Spearman’ correlation coefficient were 0.199 and 0.268) Information and Communication University

  19. Period Standardization trend End of the 1980 · Government focused standardization activity ·Low level of standardization activity 1990-1995 · Establishment of standardization procedure · Standardization law consolidation ·1994 the time of violent change and adjustment 1996-2000 · Technology innovation and various services · Diffusion of standards forum and non-government participation ·Mid 1990s: Turning point in the development of standardization Lately · Importance of standards is growing · Emerging de facto standards · Considered as national competitiveness 5. Discussion on the validity of the proposed model Historical approach <Information and Communication Standardization for 10 Years : TTA> In the history of information communication standardization, the early 1990s was the time of introduction and settlement, 1994 the time of violent change and adjustment, and the mid 1990s and afterward the period of development to the present. Information and Communication University

  20. 5. Discussion on the validity of the proposed model Historical approach • Explanatory factors, data about which were available, were industrial export, degree of competition, the number of standards, market size. • Weights were modified and obtained standardization index for the past years. Information and Communication University

  21. 6. Implications and Conclusions The results of this study suggest as follows. Industry standardization index derived from the proposed model is relatively low. This finding must be considered when the government establishes a national standardization policy. It was also found that differences in standardization index within radio communications are larger than those of other domains. It means that standards cooperation is not accomplished within radio communication field. It required a great deal of effort for the balanced development of standardization in Korean information and communication industry. The results of the standardization index measurement show that degree of standardization of “Computer network” and “IMT-2000” is relatively high in comparison with other technology fields. This means that early launching of related products and mutual assistance should be accomplished between government and company to expand global market. Also, technology area where level of standardization is low, technology development and positive investments are required in standardization business because it is possible that market inroad and technology divide problem will take place. Information and Communication University

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