Digital Opportunity in Social and Economic Context - D.O. by Service -

1. Digital Opportunity in Social and Economic Context- D.O. by Service - APEC/ADOC Forum October 7, 2009 DR. Makoto Yokozawa Nomura Research Institute Professor of MOIS Labo., Kyoto University http://www.mois.asia/ BIAC ICCP Vice Chair .

2. Focused Issues • Digital Opportunity for WHO? • ICT4ALL, but who will be the next? • Social and Economy Aspect of Digital Opportunity • In the Economy Crisis, what will be expected by DO? • DO of the “NEXT Billion” will save the Global Economy • Cloud Computing and Digital Opportunity • A Magic to turn your $100 PC to a Full Powered Device • Do not buy a computer, JUST USE IT! • What’s up in Japan? • Numbers and News • SME, Small and Medium size Enterprise Clouds • Public Service Clouds for everyone and ID issues • Concluding Remarks • Innovation and DO • Anti-Global Warming Concern, another reason for DO • NEED TO COLABORATE

3. Digital Opportunity for WHO? • Digital Opportunity for WHO? • ICT4ALL, but who will be the next? …… Many “nexts”. • Women? Disabled people? • Poverty? Richness? • DO for the people in the developing world, will drive the global economy. • Business? People on the street? • Think about DO in the small and micro business, or DO for the farmers, fishermen…

4. Social and Economy Aspect of Digital Opportunity • In the Economy Crisis, what will be expected by DO? • DO of the “NEXT x Billion” will save the Global Economy (x = 4 or more?) “Bottom of the Pyramid” by C.K. Prahalad Likewise, for SMEs Annual Income Inclusion of BOP will be essential to further develop the world economy. It will be as well important for the “Riches” in rich countries. “Global Inclusion” will stimulate innovation. Global Giants Riches >20,000USD Middle scale businesses Middles 3,000 - 20,000USD Small businesses Micro businesses Bottoms Under 3,000USD “The Next 4 Billion”, 2007

5. DO by Service Cloud Computing and Digital Opportunity • A Magic to turn your $100 PC to a Full Powered Device • “Cloud Computing” is ….. • Just like Google Mail, Google Docs, Amazon EC2 and Salesforce.com • “Digital Opportunity by Service” will expand the Opportunity Efficiency • OLPCs, NetBooks and used PCs can access to the Services • Do not buy a computer, JUST USE IT! • Only a minute to thousands of software, such as dictionaries, drawing, spreadsheets, presentation and videos. • Only a few days to be a service provider Internet Access

6. The Difference • Digital Opportunity by Products • You’ll have to: • Digital Opportunity by Service • You’ll only need: • Deliver PCs to People • Connect to the Internet • Install Software • Learn How to Use • Check Software Updates • Mind Security and Privacy • Check Usage Log • Worry about Data Loss • Recover if Corrupted • Bring Your PC with you • Buy a New PC after 5 years • Deliver PCs to People • Connect to the Internet • JUST USE IT ! The Internet Powerful Computers are Ready to Use for You!

7. DO by ServiceWhat isSaaS（Software as aService)? • Do not “Buy Software”, just USE it, in many cases, “FREE!” • OLPC and Costly PCs can be the most “ADVANCED” DO tools. • DO NOT BOTHER YOU BY “Installing, Updating, Learning and Paying” • All Functions are on the NET, and they are ready to user anytime. Maintained in good conditions by service providres Users Data Centers Application Hosting Applications Browser Application Vendors The Internet Users OLPC or Costly PCs Pay as much as you use

8. DO by Service ……..What is the Cloud Computing? Scalable and Flexible ICT Infrastructure Easy Highly Virtualized and Utilized ＄ Pay as much as You used Device independent ＄ Always New! COSTLY Secure and Resilient Anywhere

9. Global Innovation Required for Economy Crisis Value added by Hidden Innovation Expected Actions Fostering innovation Promote linkage of functions Enhance efficiency and effectiveness of development Future communication styles, Quality of Life Value added by Elimination of Bottlenecks E-Governments, e-community, medical care, health, tied closely with daily lives Analyze and eliminate bottlenecks Commercialize the public sector Commercialize spheres of daily life Bottleneck = Global Inclusion Value added by Improving Productivity Appropriate regulations Leadership Promote standardization Mobile phone, Digital TV, Digital cameras, Digital Contents, NFC payments 2007 2010 2015 2020

10. What’s up in Japan? • Broadband Subscribers ~60% of total Households in June 2009 • Mobile Phone Subscribers ~88% of Total Population in June 2009 • Digital Terrestrial TV Issue in 2011, (Governmental Support Expected for Low Income Households)

11. Maturity Model of Business IT Utilization Difficulty in Cross-Company Collaboration Difficulty in Cross-Division Communication Cross-Company Utilization of IT Introduction of IT systems Productivity Gain by IT usage Intra-Enterprise Utilization of IT 30% of companies In Stage 3 and 4 Intra-Division Utilization of IT 2% Stage 4 Total optimization across industry Initial Introduction of IT Stage 3 Partial optimization by IT across a company 3% Stage 2 Partial optimization by IT within each division 100% 70% of companies In Stage1-2 Stage 1 Primary usage of IT Source) METI Japan

12. Digital Opportunity by Service for SMEs • SME’s can utilize IT, without spending too much money from the beginning of their entrepreneurship • Avoid Risks of investment • Fully equipped with Information Systems for Technology Management, Human Resource Management, Trading and Accounting Management SME Cloud Computing Center The Internet

13. “J-SaaS” for SME’s • A Consortium for “Software as a Service” for SME’s • Provide Cloud Computing Services in low prices • List of Software by J-SaaS as of Oct. 2009 • (# of applications) • Financial Management (8) • Corporate Accounting (2) • Salary Management (4) • Tax Reporting (2) • Groupware (3) • Corporate Analysis (1) • Security Management (2) • Sales Management (2) • Project Management (2) • Internet Banking (2) • Social Insurance/Pension (2) • Order Management (1) • Stock Management(1)

14. Remarks • Education/Child • Health • Women • Aged People • Disabled People • Rural Areas • Local Economy • Job Creation • Sustainable Business • SME’s • Efficiency • Social Infrastructure • Social Maturity