1 A Model for Measuring Standardization Level of Information and Communication Technology: Korean Case Lee, Seung-Hwan, Park, Myeong-Cheol, Lee, Sang-Woo*,

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A Model for Measuring Standardization Level of Information and A Model for Measuring Standardization Level of Information and Communication Technology: Korean CaseCommunication Technology: Korean Case

Lee, Seung-Hwan, Park, Myeong-Cheol, Lee, Sang-Woo*, Koo, Kyoung-Cheol**

* Information and Communication University (ICU) ** Telecommunication and Technology Association (TTA)

Information and Communication University

23. Aug. 2003

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ContentsContents

1. Introduction

2. Literature review

3. ICT classification scheme

4. Development of standardization index model

5. Discussion on validity of the proposed model

6. Implications and conclusions


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1. Introduction1. Introduction


Standardization is not an option but a requirement.

In order to allocate limited national resource efficiently, the policy maker must know what is the current standardization level of technology.

Standardization issue in the information and telecommunication is increasinglyimportant with the development of technology.

This paper proposes an index model which can measure the degree of standardization in Korean information and communication technology field.

It seems to be very tough to measure the standardization level, because the structure of among information and communication sub-technologies are so complex.

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2. Literature Review2. Literature Review


There is no prior research for this issue in ICT industry.

But some similar researches were conducted.

-Competitive standardization strategy in information and communication industry, Korea Institute for Industrial Economics & Trade (KIET)- “National Informatization Index”, National Computation Association (NCA)- “Informatization level of government division”, Jung and Kim- “Level of enterprise informatization and implications”, Lim-“A study on the development of informatization index in Korean Region”, Korea Information Strategy Development Institute (KISDI)- “The Global Competitiveness Report”, World Economic Forum (WEF)- “The World Competitiveness Year Book”, International Institute for Management Development (IMD)- etc.

From the review of these researches, most researches used similar approach.First find some relevant variables, and then combined these variables to producean index using weighted average concept.

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3. ICT classification scheme3. ICT classification scheme


To establish a proper technology classification, various existing ICT classifications were examined.

Technology classification scheme

- Classification based on function and role of technology- Consideration of inter-relationship of unit technology- Classification based on IT industry and products. etc.

This study will use the Telecommunication Technology Association(TTA) technology classification scheme.

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3. ICT classification scheme3. ICT classification scheme


Main sectors Sub-sectors

Electric communications

Telecommunication network technology

Transmission technology

Line technology

Terminal technology

Telecommunication basic technology

Radio communications

Radio communication technology

Broadcasting technology

Wireless terminal technology

IMT-2000

Information technology

Operation services of telecommunication networkCommon basic technology

Computer network technology

Software

Information security

TTA Technology classification

TTA is leading national standardization activities using this classification. TTA has been gathering data based on this scheme.

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4. Development of Standardization Index Model4. Development of Standardization Index Model


)N/F(W Index_ST ijji

ST_Index i = Standardization index of technology field i

W j = Weight of factor j

F j = Data value of factor j

Ni = Normalization factor of technology field i

Model Overview

Standardization level of each sector would be determined by explanatory factors. These factors have different weights. Market size is considered as normalization factor for relative value (Ni). Data value for each factor divided by market size is standardized.

(Mean is 0, Variation is 1)

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Selection of standardization explanatory factors

Factors

Market

Degree of competition

Market size

Product life cycle

ICT Industrial export

Policy

Test authentication

Utilization of standards

Number of standards

Number of KICS making/revision

Standardization budget

Technology/Human resource

Number of standardization expert

Number of technology expert

Size of technology export

ICT R&D expenditure

ICT facility expenditure

Intellectual property right

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Factors Importance

Technology/Human resource Number of standardization expert 4.05

Technology/Human resource Number of technology expert 3.94

Policy Utilization of standards 3.91

Policy Test authentication 3.89

Market Degree of competition 3.77

Policy Standardization budget 3.71

Technology/Human resource Number of technology export 3.60

Market Market size 3.49

Policy Number of standards 3.42

Market ICT Industrial export 3.4

Policy KICS making/revision 3.37

Technology/Human resource ICT R&D expenditure 3.34

Market Product life cycle 3.34

Technology/Human resource Intellectual property right 3.34

Technology/Human resource ICT Facility investment 2.97

First expert survey and results

Total of 35 replies were obtained and used for the study. Response rate: 23%, 5-points scale

In order to reduce factor, 95% confidence interval was used (upper bound: 3.736, Lower bound: 3.40)

Dropped

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Second survey and results

Electronics Radio IT

Population 95(35.71%) 77(28.94%) 94(35.33%)

Sample 13(29.55%) 15(34.09%) 16(36.36%)

Chi-Square test results

Group Observed NExpected

NResidual

Electronics 13 15.7 -2.7

Radio 15 12.7 2.3

IT 16 15.5 .5

Total 44

Test statistics

Chi-Square 0.885 2

Asymp. Sig. 0.643

- Total of 30 replies were obtained and used for the study. Response rate: 20%.

- In order to measure the weight of each factor, AHP methodology was used.

- To confirm the sample truly reflected the actual distribution, Chi-square test was carried out.

- At 5% significant level, the sample distribution appeared to well reflect the actual distribution.

df

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Second survey and results : AHP hierarchy

Evaluation of standardization factor weightEvaluation of standardization factor weightEvaluation of standardization factor weightEvaluation of standardization factor weightGoal

Market Policy Technology/human

Criteria

Degree of competition(M1)

ICT industrial export(M2)

Test authentication(P1)

# of standards(P2)

Utilization of standards(P3)

Standardization budget(P4)

# of standardization expert (T1)

# of technology expert(T2)

# of technology export(T3)

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Second survey and AHP results

Criteria Sub-criteria Local weight Global weight

Market(0.3272759)

Degree of competition 0.5589 0.1892

Exporting IT industry 0.4441 0.1444

Policy(0.3237241)

Test authentication 0.1849 0.0598

Number of standard 0.2381 0.0770

Utilization of standard 0.3259 0.1055

Standardization budget 0.2511 0.0819

Tech/human resource

(0.3488621)

Number of standardization expert

0.4564 0.1592

Number of technology expert 0.3028 0.1056

Number of technology export 0.2408 0.0840

- Expert Choice Software was used.

- Consistency ratio was equal to or less 0.07.

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Model Application: Korean ICT industry

Data were gathered.

Degree of market competition, market size, ICT industrial export, # of ICT expert, # of technology export are from the Korea Association of Information and Telecommunication (KAIT).

In this study, degree of market competition substituted for number of company.

Test authentication, utilization of standards, number of standards, standardization budget and Number of standardization are obtained from Telecommunication and Technology Association (TTA).

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Model Application: Korean ICT industry

Technology classificationStandardization

index

Electronics

Telecommunication network -0.033

Transmission technology -0.328

Line technology -0.567

Terminal technology -0.492

Telecommunication basic -0.218

Radio

Radio telecommunication -0.079

Broadcasting technology -0.485

Wireless terminal technology -0.570

IMT 2000 0.650

IT

Operation service of telecommunication 0.356

Common basic technology 0.242

Computer network 0.860

SW 0.316

Information security 0.347

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Model Application: Korean ICT industry(Scale of 100 points standardization index)

Technology classificationStandardization

index

Electronics

Telecommunication network 47.62

Transmission technology 26.24

Line technology 8.93

Terminal technology 14.36

Telecommunication basic 34.21

Radio

Radio telecommunication 44.28

Broadcasting technology 14.87

Wireless terminal technology 8.72

IMT 2000 97.10

IT

Operation service of telecommunication 75.73

Common basic technology 67.54

Computer network 100

SW 72.90

Information security 75.15

It is necessary to convert standardization index into numbers that are more helpful in decision-making

99.99% confidence interval was used for conversion (Lower bound: -0.6903, Upper bound: 0.69).

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Measurement of standardization index for Korean ICT industry

])N/F(W[W Index_ST_Industry ijji

Industry_ST_Indexi = ICT industry standardization index

Wi = Weight of i technology field

Wj = Weight of j factor

Fj = Data value of j factor

Ni = Normalization factor for comparing

This study obtained the standardization index of the entire information communication industry by determining the weight of each technology based on its market size.

The standardization index of the whole of the information communication industry in Korea was 48.92 on the scale of 100.

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5. Discussion on the validity of the proposed model5. Discussion on the validity of the proposed model


Two approaches

The first method, a holistic method, is an approach that collects specialists’ intuitive judgments

on the degree of standardization of each information communication technology

through a questionnaire survey and verifies whether their judgments are correlated with the

ranking of standardization indexes measured through the research model.

The second approach is a historical method that examines how correctly the developed

standardization index model interprets the history of standardization in the past.

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Holistic approach

Model rank Survey rank

Computer network technology 1 5

IMT-2000 2 6Operation services of telecommunication network

3 4

Information security 4 7

SW 5 12

Common basic technology 6 1

Telecommunication network technology 7 9

Radio communication technology 8 2

Telecommunication basic technology 9 14

Transmission technology 10 4

Broadcasting technology 11 3

Terminal technology 12 13

Line technology 13 8

Wireless terminal technology 14 11

Total of 30 replies were obtained and used for the study. Response rate: 20%, 5-points scale.

Rank correlation test was performed. (Kendall’ consistency coefficient is 0.76, Kendall’ and Spearman’ correlation coefficient were 0.199 and 0.268)

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Historical approach

Period Standardization trend

End of the 1980· Government focused standardization activity· Low level of standardization activity

1990-1995· Establishment of standardization procedure· Standardization law consolidation· 1994 the time of violent change and adjustment

1996-2000

· Technology innovation and various services· Diffusion of standards forum and non-government participation· Mid 1990s: Turning point in the development of standardization

Lately· Importance of standards is growing· Emerging de facto standards· Considered as national competitiveness

<Information and Communication Standardization for 10 Years : TTA>

In the history of information communication standardization,

the early 1990s was the time of introduction and settlement, 1994 the time of violent change and adjustment, and the mid 1990s and afterward the period of development to the present.

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Historical approach

0

0 . 5

1

1 . 5

2

2 . 5

3

1 9 9 1 1 9 9 2 1 9 9 3 1 9 9 4 1 9 9 5 1 9 9 6 1 9 9 7 1 9 9 8 1 9 9 9 2 0 0 0 2 0 0 1

전

전

정

표 준 화 지 수

연 도

정 보 부 문

전 파 부 문

전 기 부 문

Standardization index

IT

Radio

Electronics

Year

Explanatory factors, data about which were available, were industrial export, degree of competition, the number of standards, market size. Weights were modified and obtained standardization index for the past years.

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6. Implications and Conclusions6. Implications and Conclusions


The results of this study suggest as follows.

Industry standardization index derived from the proposed model is relatively low. This finding must be considered when the government establishes a national standardization

policy.

It was also found that differences in standardization index within radio communications are larger than those of other domains. It means that standards cooperation is not accomplished within radio communication field. It required a great deal of effort for the balanced development of standardization in Korean information and communication industry.

The results of the standardization index measurement show that degree of standardization of “Computer network” and “IMT-2000” is relatively high in comparison with other technology

fields. This means that early launching of related products and mutual assistance should be accomplished between government and company to expand global market.

Also, technology area where level of standardization is low, technology development and positive investments are required in standardization business because it is possible that market inroad and technology divide problem will take place.

1 A Model for Measuring Standardization Level of Information and Communication Technology: Korean Case Lee, Seung-Hwan, Park, Myeong-Cheol, Lee, Sang-Woo*,

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