The Next Wave of Mobile Services and Experiences·¥研院專題演講[20120621].pdf · IEK is a key linkage center within ITRI ITRI College ITRI South & Central • Electronics &

IEK產業經濟與趨勢研究中心

Copyright 2012All Rights Reversed

The Next Wave of Mobile Services and Experiences

Stephen SuGeneral Director

Industrial Economics and Knowledge Center (IEK)Industrial Technology Research Institute (ITRI)

Jun 20, 2012


Copyright 2012All Rights Reversed 1

Contents

• Introduction of ITRI/IEK

• Trends: From Service to Experience

• Key Emerging Mobile Industries

• Conclusion: Moving Forward with Taiwan



IEK is a key linkage center within ITRI

ITRI College ITRI South & Central

• Electronics & Optoelectronics• Information & Communications• Mechanical & Systems• Material & Chemical• Green Energy & Environment• Biomedical Technology and Device

• Industrial Economics & Knowledge Center (IEK)

• Creativity Lab

• Nanotechnology Research Center

• Center for Measurement Standards

• Display Technology Center

• Service System Technology Center

• Cloud Computing Center for Mobile Application

Business Development Units• ITRI International Center• Technology Transfer Center• Comm. and Industry Service Center

Core Labs(Technology & Innovation)

Focus Centers(Technology Integration)

Linkage Centers(Industry-oriented)

• Total Staff : 5,763• Total Patents: 16,668• Spin-offs: 71• Start-ups: 171

Source: ITRI (2012/03)

71 spin-off companies, and 171 companies from Open Lab since 1973



Increasing ITRI/IEK research focus onconsumer needs and application scenarios

Source: IEK of ITRI (2012/03)

http://ieknet.iek.org.tw

IEK

Electronics& SystemResearch

Mechanical & SystemsResearch

EnergyResearch

Materials & Chemical Research

Life Style &HealthcareResearch

City TechnologyApplications

Government Policy & Regional Research

Products and solutions opportunities

Consumer needs and applications scenarios

Market and industry trends

Technology development roadmap

Technology foresight

3



Contents







Mobile Trend: Consumer surrounded by Mobile Data

Mobile Data grows 10 times (Year 2011~2015)

Source: Cisco; NSN; IEK of ITRI (2012/06)

Mobile Data grows 1,000 times (Year 2011~2020)

Mobile Video takes 66% of Mobile Data (Year 2014) Driven by high-end Video Needs

5



Mobile Trend: Infrastructure for Mobile Broadband era

2006 2007 2008 2009 2010 2011~

EDGEDL: 474 kbpsUL: 474 kbps

Evolved EDGEDL: 1.9 MbpsUL: 974 kbps

HSDPADL: 14.4 MbpsUL: 384 kbpsIn 5 MHz

HSDPA/HSUPADL: 14.4 MbpsUL: 5.76 MbpsIn 5 MHz

Rel 7 HSPA+DL: 28 MbpsUL: 11.5 MbpsIn 5 MHz

Rel 8 HSPA+DL: 42 MbpsUL: 11.5 MbpsIn 5 MHz

LTE 2x2 MIMODL: 173 MbpsUL: 58 MbpsIn 20 MHz

LTE 4x4 MIMODL: 326 MbpsUL: 86 MbpsIn 20 MHz

EV-DO Rev 0DL: 2.4 MbpsUL: 153 kbpsIn 1.25 MHz

EV-DO Rev ADL: 3.1 MbpsUL: 1.8 MbpsIn 1.25 MHz

EV-DO Rev BDL: 14.7 MbpsUL: 4.9 MbpsIn 5 MHz

UMB 2x2 MIMODL: 140 MbpsUL: 34 MbpsIn 20 MHz

Fixed WiMAX

Wave 1DL: 23 MbpsUL: 4 Mbps10 MHz 3:1 TDD

Wave 2DL: 46 MbpsUL: 4 Mbps10 MHz 3:1 TDD

IEEE 802.16m

3GPP GSM EDGE Radio Access Network Evolution

3GPP UMTS Radio Access Network Evolution

3GPP Long Term Evolution

CDMA2000 Evolution

Mobile WiMAX Evolution

LTE-Advanced

WiMAX 2

Source: GSA; IEK of ITRI (2012/06)

Note：ITU’s definition to 4G(2010.10) includes LTE, WiMAX and HSPA+

6



Mobile Trend : Smart Devices work with Cloud Vision

Offline(Reality)

Online(Virtual)

MobilePayment Member

NFC & MEC

LocalLocation PlaceLBS & Check In

SocialRelationshipSocial Media

Cloud Integration Services

O2O

M2M

Easy of Use

Clever Marketing

Differentiation

Effective Distribution

Fashionable Design

Personal Cloud will become widely adopted by 2015

Source: IEK of ITRI (2012/06) 7



Market Premium

Irrelevant

Relevant

Undifferentiated

Differentiated

Competitive

Position

Consumer

Demand

Commodities

Goods

Services

Experience

Productize

Productize

Pricing

Customize

Customize

Make

Extract

Deliver

Stage

Trend: Paradigm shiftingfrom “Services” to “Experience”

Source: IEK of ITRI (2011/03) 8



Trend: Service -based Applications Ecosystems for “Experience”


System & service integration

Cultural Innovations

Business Operations

Value-add ApplicationsSystem

Platform

Core C

ompetencies ( -

)

Material sourcing Basic R&D…

DesignArchitec-tureIP manage-ment…

Production Manage-mentCost controlLogistics…

MarketingChannel manage-mentServices…

Value chain clustering

Basic core competencies

Brandmarketing

ProductionCompo-nents

Material

Industry Value Chain (1990-2010)

1970

1990

9



Trend: Changing market valuationfor new ecosystems

Industry Value Chain

Core C

ompetencies

Source: Cheng Wu; IEK of ITRI (2012/05)

Market Cap (2012/5)

Network:Cisco $89B, Juniper $18B

Software:Microsoft $245B, Oracle $127B, IBM $219B

Web Services:Facebook $81B, Groupon $8B, Zynga $7B, Linkedin $10B

New Ecosystems:Apple $495B, Google $195B

Server/Chip:HP $42B, Intel $122B, Dell $26B

10



Leverage new ecosystems forhigh -margin and high -barrier competition

11

Communication

Information

ShoppingEntertainment

Safety

Connected HomeM2M



Business Operations

Value-add ApplicationsSystem

Platform



Ecosystems


Business Operations

Value-add Applications

System Platform

Commuting via subway and bus, Online shopping

Retailing, Home delivery, Public transportation

QR code, Apps for mobile purchasing

and payment

Smart handheld system, Cloud

system

Example: Service -based Applications Ecosystems for Retail


Korea Homeplus Service Scenario

12



Example: Service -based Applications Ecosystems for education


Learning Service Scenario Ecosystems


Business Operations

Value-add Applications

System Platform

Personalization learning habits

Library, School, e-reader services

e-Library, e-Textbook, Apps for online

reading

Smart handheld system, Cloud

systemDesktop computer

e-Reader

Studying

Reading

e-learning Platforme-learning Platform

Portable Device

Cloud-based interactive learning and creation

13

Individual learning at library

Group learning and creation via Cloud



Contents







ICTization and virtualization ofnew distribution channels

Source: Cheng Wu from “The New ICT Enabled Consumer and Social Networking Economy” (2012/05)

15

Phase I

Phase II

Phase IIIVirtual Store Fronts (Online service or payment)

• Amazon, Netflix, Wal-Mart

Integration of Online and Offline Ecosystem (O2O)

• Sociality, Locality and Mobility• Discovery and Personalization• Emergence of “Smart Enterprise Back Office”

End to end control (Apple, Google)• Direct to Consumers (D2C) push• Smart phone application economy• Control of smart gadgets and back office CRM

Traditional Distribution Channels



Shipment trend of Mobile Devices

418.5 633.3 878.92011(e) 2013(f) 2015(f)

Smartphone

Unit: Million

41.3 90.9 100.0 2011(e) 2013(f) 2015(f)

Tablet PC

Unit: Million

Smartphones

Tablet PC

50

100

150

500

1,000

• CPU：：：：Snapdragon S2• Display ：：：：4.7 inch• GPU：：：：Adreno 205• RAM：：：：512MB• GSM/HSPA+• OS：：：：Windows Phone

7.5, Mango

HTC Titan Smartphone

Major Products in Taiwan

Asus Transformer Tablet PC

• Dimension:271 x 176 x 12.9 mm

• Display: 10.1 inch with IPS

• Weight: 680g




Shipment trend of Touch Panels

2011(e) 2013(f) 2015(f)Touch Panel

Unit: Million

8,700 12,298 14,0572011(e) 2013(f) 2015(f)

Touch Panel

Unit: Million USD

Touch Panel Shipments

500

1000

1500

1,000

2,000

Touch Panel Revenues

1,055 1,475 1,872

Future applications of Touch Panel

Source: Display Search; IEK of ITRI (2012/02)



Em

bedd

ed

2015 20202012

Interior Display

Smart Mirror

OLED TV

AMOLED Smart Phone

AutomotiveAR Display

TransparentAR Handheld

Flexible Smart Paper

Flexible AMOLED Phone

Immersive Display

E-readerTouch

FoldableHandheld

Public Video Wall

Future applications in flexible displayThin、、、、Transparent 、、、、Flexible 、、、、Smart

18

Por

tabl

e




Emerging Industries for Cloud Services

Cloud Service Market

Computing and storage Resources providing an application platform as a service

VirtualizedResources

ManagedOperations

ElasticResourceCapacity

UtilityPricing

ManagementAutomation

Third-partyOwnership

Self-ServiceProvisioning

Economic Elements ：：：：

Pay-as-you-go,Pay-as-you-grow,no CAPEX

Architectural Elements ：：：：

Simple, abstract environment for development

Strategic Elements ：：：：

Focus on core business,Leave the rest tosomeone else.

Cloud Services for Business Users


Unit: Billions US$

28 43 64

2011(e) 2013(f) 2015(f)

40

80



Internet News

Weather, Traffic Alerts

GPS Map

Video Streaming

E-mail

Document

IT Services (CRM 、、、、ERP)

Mobile Office

Social Network

Online Gaming

Data Storage

Video Conferencing

Concurrent

Video Surveillance

Emerging Industries for Digital Convergence

Insurance agent RetailMedicalEducation Car agentLetting agent Interior design Business




Contents







Nankang Software Park

Hsinchu Science Park

Central Taiwan Science Park Taichung Precision Park

Changhua Coastal Industrial Park

Southern Taiwan Science Park & Yongkang Technology Industrial Park

Kaohsiung Linhai & Software Industrial park

1.5 h N to S

Complete ICT industrial value chains and clustering within Taiwan

Global ICT products/services made by Taiwan

World No. 1- Foundry - IC Packaging & Testing- Mask ROM- PND - xDSL CPE, Cable CPE - WLAN, Motherboard - Server, LCD monitor- NB, Desktop PC

World No. 2 - IC Design - Large size (>10”)TFT LCD- Small size (<10”)TFT LCD- TN/STN LCD- OLED Panel- DSC




Taiwan industrial developmentshifting to innovation focus

23

1960’s 1970’s 1980’s 1990’s 2000’s 2010’s

Labor intensive

Light industries

Heavy industries

Capital intensive

Technology intensive

Knowledge intensive

Innovation focus

US$ 35,604

10X in 30 yrs

US$ 3,570

GDP per capita (PPP 1)

1: Adjusted by Purchasing Power Parity (PPP) for proper country comparison. In 2010, nominal GDP per capita is US$ 18,588.

Source: IEK of ITRI (2011)



Brand and manufacturing are two growth engines for future Taiwan industries

• Require long-term investment�Leverage

China�SE as

springboard� International

talentsInnovative R&D

&Service

Integration

Brand

Manufacturing

• Innovative R&D as fuel• Service integration as guidance

• Leverage manufacturing capabilities for regional manufacturing HQ�Smart

manufacturing system�Service oriented�Cloud system

24 24Source: IEK of ITRI (2011/09)



Leverage ICT strengthsto maximize team -up effort

• Today: Mobile devices manufacturing capabilities, a nd key components supplier• Next: Develop localized ecosystems to enhance produ ct differentiation and key

components• Future: Become the leading development and innovati on hub in the world

Key

Components

Mobile

Device

Localized EcosystemsProduct Differentiation

PlatformApplications

& Services

Enhance Key Components

Innovation of Applications and Services

System integration

Smart TV Interface Open Systems

Display, Memory…

25Source: IEK of ITRI (2012/06)



Taiwan pivotal in pilot testing future ecosystems for China and global markets

Leadership in global market

(e.g. ICT)

Pilot test ecosystems before entering to China

(e.g. Digital Convergence )

Joint force for global market (e.g. Telecom)

26



Moving forward with Taiwan

27

Value of Taiwan as a global partner:

• Complete industrial value chains and clustering

• Industrial development shifting to innovation focus

• Brand and manufacturing as two growth engines

• Leverage ICT strengths to maximize team -up effort

• Pivotal in pilot testing future ecosystems




http://ieknet.iek.org.tw/

Stephen SuGeneral [email protected]+886-3-591-2548

Thanks

Chao-Yin ChiDeputy Division [email protected]+886-3-591-4451



Present Position:� General Director, Industrial Economics & Knowledge Center (IEK) of

Industrial Technology Research Institute (ITRI)

Professional Experiences:� Principal, Roland Berger Strategy Consultants, Shanghai� Sr. Director, Consumer Electronics, Primax Electronics Ltd., Taipei� Director, Corporate Development, Primax Electronics Ltd., Taipei� Case Leader, Boston Consulting Group (BCG), Hong Kong� Applications Engineer, Semiconductor Group, Motorola, Phoenix

Education:� Senior Executive Program for China (SEPC) by Harvard, CEIBS, Tsinghua University� MBA from Kellogg School of Management, Northwestern University, USA� Electrical Engineering MS from California Institute of Technology, USA� Electrical Engineering and Computer Science BS from UC Berkeley, USA

Professional Specialty:� Strategy, operations Improvement, organization change management, business process

redesign, new product development and marketing, investment due diligence, manufacturing management

� Chairman of Committee on Regulations and Standards, Cloud Computing Association in Taiwan (CCAT) (2010-Present)

� Executive Director, Asia Pacific Industrial Analysts Association (APIAA) (2011-Present)

Stephen Su ( 蘇孟宗)

Documents

The Next Wave of Mobile Services and Experiences·¥研院專題演講[20120621].pdf · IEK is a key linkage center within ITRI ITRI College ITRI South & Central • Electronics &