___________________________________________________________________________
2018/SOM1/ECSG/DIA/003
Sharing Experience in Japan - E-Commerce and Digital Economy
Submitted by: Kyoto University
Public-Private Dialogue on Existing and Emerging Issues Related to
E-Commerce and the Digital Economy Port Moresby, Papua New Guinea
3 March 2018
Sharing Experience in Japan- E-Commerce and Digital Economy -
March 8, 2018Port Moresby, Papua New Genea
Dr. Makoto Yokozawa
Professor at Kyoto University/Nomura Research Institute, Ltd.Co-Chair of Digital Economy, BIAC (Business at OECD)
Keidanren (Japan Business Federation), Vice Chair Global Policy Strategy WG/ Data Business WG
Dr. Makoto (Mac) YOKOZAWA Visiting Professor
Market and Organization Informatics Laboratory The Graduate School of Informatics
Kyoto University
Yoshida-Honcho, Kyoto 606-8501 Japan Voicemail & FAX +1-650-653-2501 +81-3-4496-6014
[email protected] http://yokozawa.mois.asia/
Copyright 2017 MOIS Lab, Kyoto University
PPD on Existing and Emerging issues related to E-commerce and the Digital Economy
4
Digital Economy(2016 OECD Cancun Ministerial)
International Fora and Discussions for Digital Economy
Internet Economy(2008 OECD Seoul Ministerial)
eCommerce(1998 OECD Ottawa Ministerial)
AHSGIE
ECSG
TEL
CTI FTAAP
Technologies• Internet of Things (remote sensing/remote
control)
• 3D Printing and On Demand Supply Chain
• Big Data Sharing and Analysis
• Sharing Economy
• AI and Robotics
• Blockchains and Fintech
Issues• Free Flow of Data/Data localization
• Network Sovereignty/Internet Governance
• Internet Security
• Personal Data Protection
• Digital Trade Policies
• Competition
• Platformers
Strategies• Protectionism
• Over Regulations
• Evidence Based Discussions
• Private sector’s experience
• Industry Promotion
• Public Private Collaborations
• Cross-fora, cross-committee collaborations
Going Digital
DPS
CBPR/PRP
SPSGCD
EP
WPCISP
WPSPDE
WPMADE
5
2017-2020
Short to Middle Term Scope
2020-2025
Long Term Scope
Plu
ri-B
ilate
ral
Glo
balー
Regio
nal
Digital Policy Mapping in 2018
Copyright MOIS Research Unit, Kyoto Univ. 2016
US-JP Bilateral
FTAAP
TiSA
TIPPAPEC(NGeTI)
G7 2016 G20 2019
Japan-China-Korea
UKTaiwan
Canada
NAFTA (modernized)
K
R
EU-USJP-EU EPA
CPTPP (2018-)
India
VN
EU-UK
Digital Trade Rules
Open Digital Trade
Telecommunication Rules
Next Generation
exploratory work
71 countries
Internet Stability
Bi-LateralCoordination
China
Russia
MX
OECD in Asia and Pacific
Digital Development
Network and Digital Economy
6
OECD “Going Digital” http://www.oecd.org/going-digital/
Copyright MOIS Research Unit, Kyoto Univ. 2016
VECTORS
Typology in “Online Platforms”
8
Digital Transformation on ICT Infrastructure
TPP Ch. 13 (Telecommunication) and Ch. 14 (eCommerce)
Trustable ICT Infrastructure by Telecommunication and the Internet
Safe and Secure ICT Infrastructure by Telecommunication and the Internet
Stable ICT Infrastructure by Telecommunication and the Internet
Copyright MOIS Research Unit, Kyoto Univ. 2016
Plants/FactoriesRemote Operation
Construction MachinesRemote Maintenance
Realtime MonitoringTransportation
Electric VehclesRemote Management
Strawberry Farm Remote Control
Food/Sushi Freshness Control
Intelligent Contents DeliveryMinistries/Agencies(Government)
Private Sector (Federation/Associations)
Consumer’s Federation / Civil Society / Users
Academia / Technical Community
Multistakeholder Mechanism
Investor’s Confidence Layer
Contents/Intellectual Properties Layer
Services/Solutions Layer
Network CommunicationsLayer (Internet)
Product Manufacturing Layer
10
Dig
ital T
ransfo
rmation L
ayers
Geopolitical Issues
Digital Piracy
Technology Transfer
Internet Assigned Numbers
Domain Names Internet Exchange Points
Financial Regulations
Base Erosion/
Profit Shifting
Source Code Disclosure Req.
Personal Data Protection
Network Security
Import Tax Place of Origin Regulations
Internet Governance Enhanced Cooperation
Data Security
Patent and Copyrights
Net Neutrality
Intermediaries Liability
Unharmonized Policy Principles
11
Unstable basis of Digital Business
Copyright Dr.M.Yokozawa
Digital
Challenges
TTIP
12
Digital Transformation on Ditigal Technologies
TPP Ch. 13 (Telecommunication) and Ch. 14 (eCommerce)
Trustable ICT Infrastructure by Telecommunication and the Internet
Safe and Secure ICT Infrastructure by Telecommunication and the Internet
Stable ICT Infrastructure by Telecommunication and the Internet
Copyright MOIS Research Unit, Kyoto Univ. 2016
Plants/FactoriesRemote Operation
Construction MachinesRemote Maintenance
Realtime MonitoringTransportation
Electric VehclesRemote Management
Strawberry Farm Remote Control
Food/Sushi Freshness Control
Intelligent Contents DeliveryMinistries/Agencies(Government)
Private Sector (Federation/Associations)
Consumer’s Federation / Civil Society / Users
Academia / Technical Community
Multistakeholder Mechanism
13
Sustainable Development Goals by UN
https://www.itu.int/net4/wsis/sdg/Content/wsis-sdg_matrix_document.pdf
3/3/2018 13Copyright 2016 MOIS Lab, Kyoto University
14
14
Going beyond individual optimization to realize the optimization of society as a whole
Breaking free of various restraints with the aim of resolving social issues and creating
abundance for society and its citizens
The World of Society 5.0: Defining Society 5.0
Society 5.0Invention of the computer
Start of information distribution
Second half of 20th century
Society 4.0
Individual optimization through application of ICT
Information societyUse of IoT and AI
Advances in biotechnologySuper-smart society
From early 21st century
Optimizing society as a whole through integration of cyberspace and physical space(total optimization)
Efficient use of natural resources Use of new resources (data)
World bound by various constraints (temporal, spatial, etc.)
World released from various constraints
Seeking solutions to individual problems
Making individual industries more efficient
Solving complex social issuesAchieving abundance for society and citizens
15
15
Japan’s Initiatives - Society 5.0 -
The Society 5.0 concept has been introduced in Japan‘s 5th Science and Technology Basic Plan
16
Building resilient infrastructure and
promoting sustainable
industrialization by using i-
Construction
Boosting food production by smart
agriculture utilizing IoT, AI and Big Data
Improving nutritional status with smart food produced by cutting-edge biotechnology
Creating smart cities where convenience,
safety and economic
efficiency are made
compatible
Managing electric power supply and
demand in a sustainable way by
constructing smart grid systems
Society 5.0 for
Developing early
warning alert system for
the prevention of
infectious diseases by
combining different types
of monitoring data
Make high quality
education
affordable for
everyone on the
earth with e-
learning systemsutilizing state-of-the-
art technologies
Building global
innovation
ecosystems by
connecting industries,
academic institutions
and other related
stakeholders
Resolving climate
change issues with the
simulation based on
the analysis of
meteorological and
other observation data
by using High
Performance
Computing
Using remote sensing and
oceanographic data for
monitoring and management
of water quality, forests, land
degradation, biodiversity, etc.
Empowering women
with access to
education and
information through
the Internet
Providing women with
opportunities for
startups by utilizing
ICT
Society 5.0 offers a new growth model with a view of “solving social issues”
as well as “creating a better future", which contributes to the achievement of SDGs
17
Benefit on user: wow experience, self-publishing, interaction with friends
Benefit on service provider: trend analysis, creation of new services, marketing
Entertainment Platform
Outline: deliver tailor-made wow experience by leaning taste of each user
Play status, viewing
status, user generated
content
Content,
recommendation, online
community
Data
Information
Knowledge
Refer to:U.S.-Japan Internet Economy Private Working Group Joint Statement , September 2014
17
18
Effects on field service: Provide one to one measure/ game in line with his/her
preference in timely manner
Effects on service: Improve productivity of analysis. Contribute to sales increase
Action analysis of gamers
Outline: Collect data and analyze actions of social gamers to respond in
line with each Gamers’ preferences in short period
Action related data of
gamer : level, usage
time, charging, etc
Measures which are in
line with gamers’
preferences
フィールド側
Refer to:U.S.-Japan Internet Economy Private Working Group Joint Statement , September 2014
18
19
User Benefit: reduce freezer downtime and maintenance cost
Provider Benefit: establish new income source, protect advanced technology
Remote Monitoring of Freezers
Outline:Operational data of freezer equipment is monitored for preventive
maintenance and black box access detection. This enables improved customer
service and protection of advanced technical information.
Uptime, internal
temperature, error data,
black box access
Operation / maintenance
advice, preventive repair,
faster failure identification
Data
managemen
t
(Cloud)
Monitoring
and
analysis
User
support
Maintenance
Refer to:U.S.-Japan Internet Economy Private Working Group Joint Statement , September 2014
19
20
20
Effects on the entire society: Refine disaster prevention plans, further invigorate local
communities and sophisticate town development
Effects on individuals: Increase satisfaction through enhanced convenience and other
advantages in residing areas, etc.
Population distribution by time zone
Ratio by gender and age group
Ratio by place of residence
Ratio of foreign nationals, etc.
Investigation of measures
including events in accordance
with age and gender,
investigation of urban district
development plans, etc.
Utilization of Individual Behavior Trends to Promote Town
Development and Encourage Tourism, Etc.
Data
Information
Knowledge
Outline: Collect statistical data on individuals’ various behavior trends and use the
analysis results of the data to promote town development and encourage tourism, etc.
Refer to:U.S.-Japan Internet Economy Private Working Group Joint Statement 2016, February 2016
21
Provide residents with security and safety
21
<Hospitals>
• See medical records of new or emergency
patients at other medical institutions.
• Provide appropriate advice to home care
patients and nursing care staff and make the
right decisions on medical intervention based
on information from care facilities.
<Pharmacies>
• Provide more accurate medication counseling
by viewing the names of diseases that are not
written on external prescriptions.
<Care Facilities>
• Provide appropriate help and medication
management based on the results of medical
examinations and prescriptions.
Outline: Medical and care data of individuals are shared among regional
organizations (hospitals, clinics, pharmacies, care facilities, etc.) for providing a
seamless Integrated Community Care System which includes more appropriate
medical examination and medication counseling.
Advanced Regional Medical Services by Interactive Sharing of
Medical and Care Data(Nihon Unisys, Ltd.)
Care facilities
Medical clinics
Dental clinics
Hospitals
Homes
Pharmacies
Health examinati
on centers
Community support service
centers
Clinical testing companies
Gathering, viewing and updating of data
Security & safety for residents
Mirai Kanae
Net
22
22
Effects on the entire society: Ascertain traffic conditions that may cause accidents and ease
congestion
Effects on individuals: Refund automobile insurance rates, reduce traffic accident rates, etc.
Outline: Collect data on individuals’ driving situations (sudden acceleration, sudden braking
and steering wheel manipulation) to help avoid accidents and ease traffic congestion.
Driving situations (sudden
acceleration, sudden braking and
steering wheel manipulation),
location information and weather
conditions, etc.
Utilization for setting
automobile insurance rates,
provision of advice on driving,
etc.
Utilization of Statistical Data on Driving and Using it in Setting
Automobile Insurance Rates
Data
Information
Knowledge
Refer to:U.S.-Japan Internet Economy Private Working Group Joint Statement 2016, February 2016
23
Effects on field side : Improvement of service quality and development of more
effective battery in the future
Effects on service side : Obtaining accumulated info. To contribute future
product and technology development
Analytics on Electronic Vehicle battery related information
Outline:Collect evaluation and functional data of EV batteries in Japan and US
Analyze the above data to develop high performance battery and improve services
Battery related data :
Vehicles data, capacity,
temperature, electrical
current value, etc
Improvement of service,
etc.
サービス側
Refer to:U.S.-Japan Internet Economy Private Working Group Joint Statement , September 2014
23
24
Effect on the field side : Productivity improvement,
Reduction of cost for maintenance and Accident related response
Effect on the service side : Improvement of technology and product,
Acquisition of know-how, Marketing
Outline:Operation related information on the construction machinery which works all
over the world are collected. The analysis results are efficiently reflected in the
productivity improvement in the field, and operation and product modification.
Position/Operation/
Oscillating/Shock
related Information etc.
Operational advice,
Preventive maintenance,
Crime warning etc.
Remote Supervision of Construction Machinery(Hitachi Construction Machinery Co., Ltd.)
Data
Information
Knowledge
Refer to:U.S.-Japan Internet Economy Private Working Group Joint Statement , September 2014
24
25
Effects on field side : Secure safe service of the ship and lower costs of
maintenance
Effects on service side : Offer of the ship's class service of the highest
quality
Efficient maintenance of large ship
Outline:Collect the sensor data from the apparatus in the ship of a large
ship navigating the world to realize preventive and efficient maintenance
Sensor data from the
apparatus , such as
engine, in the ship
Maintenance based on
the real situation of
apparatus,
Refer to:U.S.-Japan Internet Economy Private Working Group Joint Statement , September 2014
25
26
New Market Growth Expected based on Emerging Data Driven Products and
Services
Plants/FactoriesRemote Operation
Construction MachinesRemote Maintenance
Realtime MonitoringTransportation Electric Vehcles
Remote Management
Strawberry Farm Remote Controledby Cloud Service
Intelligent Contents Delivery
Food/Sushi Freshness Control
Data Flows
Data Sharing
Data Analysis
27
Disaster Management based on Emerging Data Driven Products and Services
Rescue Support
Sharing Status ofPublic Transportation
Supply Management by Data Sharing
Evacuation Guide by CCD Camera
Intelligent Road Traffic Monitoring by “Probe Vehicles”
Data Flows
Data Sharing
Data Analysis
Digital Life, Safety and Welfare
28
Medicare Services based on Emerging Data Driven Products and Services
Regional Medical Data Sharing
Remote Care fore Elderly People by Remote Sensing
Statistical Data Analysis and Personalized Medicare
Data Flows
Data Sharing
Data Analysis
Worker’s Health andWellness Improvement
Humidity
Temparature
Lights
HITACHI Net Shopp ing
Digital Medicare by Data Sharing and Analysis
Cross Border Data Flow is Essential
29
Digital Economy deepens of Data Flows
3/3/2018 Copyright Dr.M.Yokozawa
32
“The Constitution of Liberty” …. Friedrich August von Hayek
What are the conditions in order to be “Free” in Data Flow?
APEC/Cross Border Privacy Rules
The APEC Cross Border Privacy Rules (CBPR) system, endorsed
by APEC Leaders in 2011, is a voluntary accountability-based
system to facilitate privacy-respecting data flows among APEC
economies. It has four main components:
1. recognition criteria for organisations wishing to become an
APEC CBPR system certified Accountability Agent;
2. an intake questionnaire for organisations that wish to be
certified as APEC CBPR system compliant by a third-party
CBPR system certified Accountability Agent;
3. assessment criteria for use by APEC CBPR system
certified Accountability Agents when reviewing an
organisation's answers to the intake questionnaire; and
4. a regulatory cooperative arrangement (the CPEA) to
ensure that each of the APEC CBPR system program
requirements can be enforced by participating APEC
economies.
Copyright MOIS Research Unit, Kyoto Univ. 2016
http://www.cbprs.org/
Dual Certification
BCR,
Binding Corporate Rules
33
CBPRs Workshop “Realizing the Potential of CBPRs’
Expansion”, August 19, 2017 in Ho Chi Minh City, Vietnam(Guiding Questions given to “Session 2, Businesses’ View on Importance of
Acquiring CBPR Certification” )
1. What can we expect as short term benefits of CBPR certification?
Competitiveness in showing the potential capability in privacy protection
Improve company’s internal awareness in privacy protection
Improve awareness in partners in offshore outsourcing
2. What can we expect as long term outcomes of CBPR certification?
Expanding potential market by improving trust from consumers
Flexibility in partnering in offshore outsourcing
Approaching European market by interoperability with GFPR
3. How far do we expect outreach of CBPR system to; APEC economies
non-APEC (near APEC) economies
processor companies (PRP?)
non-ICT (non e-commerce) sectors
MSMEs
Copyright MOIS Research Unit, Kyoto Univ. 2016
INTASECT, the first CBPR
Holder in Japan appreciates
that the benefit of CBPR is
worth the cost
Continued to
34
Japan’s Act on Protection of Protection Information
Company
XCompany
A
Japan
Company
YCompany
B
Data transfer
allowed
Data transfer
allowed
CBPR
certified
Japan
APEC participating economies
Foreign countries
CBPR
certified
Benefit and Responsibility of Outsourcer and Outsourcee
6
Source PIPC Japan
Japanese CBPR holders can
transfer personal data to non
CBPR holders in any country,
with responsible oversight on
personal data protection of
their oursourcees.
EU Adequacy(GL)
Enhanced Cooperation
Under UNCTAD
WGEC 2012 (CSTD)
WGEC 2016
2018.1 (no agreement on the reporting)
Copyright 2016 MOIS Lab, Kyoto
University
ICANN
US
DOC/NTIA
Multistakeholder
Community
IANA Stewardship
IPP, the Internet related Public Policeis
JPNIC
etc…
United Nations Stakeholders
WSIS 2003
WSIS 2005
WSIS+10(2015)
Tunis Agenda
IGF2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
NetMundial(2014)
NetMundial Initiaative
ITU WCIT /ITR/
PP14/WSIS FORUM
ISOC
ICC/BASIS
WEF
ITACOECDCIVIL SOCIETIES
GCCS
GFCE
2011-2015
WSIS Forum
China
2014 WIC
2015
2016
2017
WIC
Internet and Digital
Economy
Evidence-based Approach in Digital Trade Discussions
Copyright 2016 MOIS Lab, Kyoto University
OECD/STRI Database
APEC/ STAR Database by AMIT
ECIPE DTE Database
38
Global Collaborations in Regional/National Associations
Global Industry Calls for Rapid and Ambitious Expansion of Participation in the APEC Cross-Border Privacy Rules System, August 2017
2017 G7 Industry/ICT Ministers MeetingRecommended Outcomes for Promoting Innovation, Digital Technologies, and Development September 2017
Global Industry Statement on Information Technology Agreement (ITA) and ITA Expansion, December 2017
(Concerns in implementation of Cybersecurity Law in China) TO: Chinese Communist Party Central Leading Group for Cyberspace Affairs Office of the Central Leading Small Group for Cyberspace Affairs Cyberspace Administration of China, May 2017
Copyright MOIS Research Unit, Kyoto Univ. 2016
39
IN CONCLUSION
Private Sector Looks forward to having
• Harmonization and Interoperability among;• Fora and Subfora
• Stakehonders
• Committees and Subcommittees
Since Digital Economy and Transformation is a Multilayered Issue and Business need Free Flow of Data and Secure/Stable Internet Environments