sharing experience in japan - e-commerce and digital...

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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

Who is Makoto Yokozawa?

What is Private Sector’s concern?How are Private Sector Participants involved in Digital Economy?

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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

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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

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OECD “Going Digital” http://www.oecd.org/going-digital/


VECTORS

Typology in “Online Platforms”

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What is Private Doing in Digital

Economy?

From the Viewpoint of Japanese

Industry

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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


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

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Digital Supply Chains

Investor’s Confidence Layer

Contents/Intellectual Properties Layer

Services/Solutions Layer

Network CommunicationsLayer (Internet)

Product Manufacturing Layer

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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

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Unstable basis of Digital Business

Copyright Dr.M.Yokozawa

Digital

Challenges

TTIP

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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




Realtime MonitoringTransportation

Electric VehclesRemote Management

Strawberry Farm Remote Control


Intelligent Contents DeliveryMinistries/Agencies(Government)

Private Sector (Federation/Associations)

Consumer’s Federation / Civil Society / Users

Academia / Technical Community

Multistakeholder Mechanism

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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

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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

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Japan’s Initiatives - Society 5.0 -

The Society 5.0 concept has been introduced in Japan‘s 5th Science and Technology Basic Plan

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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

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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

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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


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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


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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

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Provide residents with security and safety

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<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

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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

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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


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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


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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,


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New Market Growth Expected based on Emerging Data Driven Products and

Services



Realtime MonitoringTransportation Electric Vehcles

Remote Management

Strawberry Farm Remote Controledby Cloud Service

Intelligent Contents Delivery


Data Flows

Data Sharing

Data Analysis

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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

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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

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Digital Economy deepens of Data Flows

3/3/2018 Copyright Dr.M.Yokozawa

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How Private Sector is Looking?

FDI and Investor’s Confidence

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“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.


http://www.cbprs.org/

Dual Certification

BCR,

Binding Corporate Rules

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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


INTASECT, the first CBPR

Holder in Japan appreciates

that the benefit of CBPR is

worth the cost

Continued to

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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

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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

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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


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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

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