the utilization of information systems in the pacific rim

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  • 1. The Utilization of Information Systems in the Pacific Rim A study of China & Hong Kong, Indonesia, Japan,North & South Korea, Singapore and Taiwan Team Three Cindy Branon Zach Evans Melissa Holder Kendall Joseph Brandon McLain Shane Morgan

2. The Utilization of Information Systems in the Pacific Rim

  • Government
  • Economy
  • Labor Market
  • IS Infrastructure & Utilization
    • Hardware & Software
    • Telecommunications & Internet Usage
    • Imports/Exports
  • Strengths & Weaknesses
  • Foreign Investment & Outsourcing
  • Cutting Edge Technologies

3. China and Hong Kong Melissa Holder 4. China Quick Facts

  • 1.28 billion people
  • Population growth of 0.87 percent
  • Land area of 9.6 million square kilometers
  • GDP grew 7.3 percent

5. China Government Regulations

  • Government regulates each section of IT
  • Software cannot be published by foreign firms
  • Recently joined the World Trade Organization to include the Information Technology Agreement

6. China Economic Infrastructure

  • Recession in Chinas economy
  • GDP grew 7.3 percent, among the highest in the world in 2001
  • China manufactured $23.9 billion in computer products in 2001
  • Mainland Chinas government plans to spend $120 billion on the technology infrastructure

7. China Skill Set and Job Market

  • Over 400,000 college graduates annually in the Engineering and Computer Science fields
  • Most graduates speak English as a second language
  • Science and Technology Parks
  • Internships/Assistantships
  • Job market is declining

8. China IS Infrastructure/Utilization

  • Second largest production of PCs in the world with over 7.5 million sold in 2000
  • Telecommunications are semi-regulated.
  • ISPs- 3 (in 2000); Internet users- 45.8 million
  • Government officials monitor website for information that is not welcomed by the government

Market Size Information Technology 15.0 29.8 Total 26.9 4.9 Information Service 21.3 3.4 Software 11.7 21.5 Hardware Growth Rate Sales Volume (in billions USD) Market Share 9. China Import/Exports

  • Exports are mainly to Hong Kong and the United States and total $20 billion
  • Imports mostly include products of higher technology such as automation equipment
  • Shenzhez and Shanghai are the innovators of Chinese information technology

10. China Outsourcing Opportunities

  • IT employees have knowledge of English language
  • Cheaper labor costs
  • Government regulations a downside

11. China Cutting Edge Technology

  • Adoption of E-Commerce andE-Government initiatives
  • Implementing ITA regulations in accordance with the World Trade Organization

12. Hong Kong Quick Facts

  • 7.3 million people
  • Population growth of 1.26 percent
  • Land area of 1,092 square kilometers
  • GDP grew 1.5 percent

13. Hong Kong Economic Infrastructure

  • Recession in Hong Kongs economy
  • Free-trade for IT products
  • Computer manufacturing is limited to computer peripherals and accessories
  • Hong Kong is in the process of deregulating the last part of telecommunications-voice communications

14. Hong Kong Skill Set and Job Market

  • Most graduates speak English as a second language
  • Government officials have implemented a five-year plan to introduce IT into secondary schools
  • Science and Technology Parks
  • Internships/Assistantships
  • Job market is declining

15. Hong Kong IS Infrastructure/Utilization

  • Hardware production is limited to computer parts and accessories, and data storage units
  • Software development is produced locally
  • Telecommunications are very advanced
  • ISPs- 250; Internet users- 4.35 million

16. Hong Kong Import/Exports

  • Exports are mainly to China, Europe, Singapore, the United States, and Japan
  • Exports have increased by 15 percent
  • Imports are limited to domestic goods, and a limited amount of software products

17. Hong Kong Outsourcing Opportunities

  • Government deregulation is a plus
  • One of the most advanced technology infrastructures
  • IT employees speak English
  • Labor is cheaper

18. Hong Kong Cutting Edge Technology

  • Octopus E-Cash cards (Smart Cards)
  • E-Government initiatives

19. China and Hong Kong Comparison

  • E-Government initiatives
  • Job market and skill sets of IT employees
  • Government Regulations
  • Advancement of IT infrastructure
  • Imports and Exports of IT

Similarities Differences 20. China and Hong Kong Comparison Data: Business Week Up to $180/mo. Up to $390 /mo. Commercial Broadband $24 $48 Taxi to Airport from Downtown $24 $51 Business Lunch for Two $17,000-20,000/yr. $14,500-16,000/yr. International School $500/ mo. $3,500/ mo. Personal Assistant $1,000/ mo. $3,500/ mo. Two-bedroom apartment $1.90/ sq. ft. $6.30/ sq. ft. Prime Office Space (Rent) China (Shanghai) Hong Kong 21. Indonesia Zach Evans 22. Indonesia An Introduction

  • Population: 215 million 4 thlargest nation in the world
  • Worlds largest archipelago with over 17,000 islands
  • Five main islands are: Java, Kalimantan (Borneo), Sulawesi, Sumatra, & Papua
  • 300 ethnic groups speaking over 350 languages
  • 2001 GDP: $143.3 billion US
  • Basic life principles: mutual assistance, deliberations, and consensus

23. Indonesia Government Regulation

  • Two state-owned telecom companies: PT Telkom and PT Indosat
    • Monopoly over long distance until 2005 and over domestic service until 2010
  • 1994: Government passed law allowing private-company involvement in telecom industry
    • Companies are required to collaborate with state-owned companies
    • State-owned companies regulate private firms activities

24. Indonesia Economic Infrastructure

  • Ten year trend has been away from agriculture towards industry and manufacturing

25. Indonesia Labor Market

  • 2001 Unemployment Rate: 8.1%
  • 1,400 institutes of higher learning
  • Illiteracy is down, school enrollment is up since 1980

26. Indonesia IT Infrastructure - Hardware

  • 200 domestic companies that product PCs and peripherals
    • Most of these products are exported
  • 11 out of 1,000 people have access to a PC at home or at work
  • 58,500 computers installed in schools

27. Indonesia IT Infrastructure - Telecom

  • Most of country connected with copper wires
    • Fiber optic cables available in large cities but last mile connections are copper wires
  • 2002: 7.6 million main phone lines installed
  • 2002: 11.7 million cellular phone lines
    • Meteoric rise due to dramatic reduction of import taxes on handsets

28. Indonesia IT Infrastructure Cutting Edge Technologies

  • Internet transmission speeds limited to 19,200 kbps or even 9,800 kbps
    • Limited bandwidth due to the fact that ISPs buy their bandwidth from PT Indosat in US dollars but get paid in Indonesian Rupiah
  • 4 million total Internet users in 2001
    • Many access through Internet Cafs
    • 80% of Internet users live on Java or Bali

29. Indonesia IT Infrastructure Cutting Edge Technologies (cont.)

  • Factors that have limited e-commerce initiatives:
    • Lack of a certificate agency (SSL)
    • No domestic banks will guarantee Internet transactions
    • Package delivery infrastructure is extremely weak
  • SPAM complaints in January 2003: 249

30. Indonesia IT Strengths & Weaknesses

  • Economy still recovering from Asian Financial Crisis of 1997
  • If government continues loosing ownership restrictions, investors stand to reap big gains
    • Remember: Indonesia is the 4 thmost populous country in the world
  • State of telecom infrastructure a big problem
    • Further deregulation is needed

31. Japan Shane Morgan 32. Japan Quick Facts