0 Rent IT : ASP-based e-Business project for Small business Rent IT : ASP-based e-Business project for Small business 2004. 10. 14 2004. 10. 14
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Rent IT :ASP-based e-Business project
for Small business
Rent IT :ASP-based e-Business project
for Small business2004. 10. 142004. 10. 14
1
Table of Contents
II IT level of SMEs
ⅡⅡ ASP for SMEs
ⅢⅢ
ⅣⅣ
VV
ASPs
the Project
Future Plan
VIVI Success Stories
2
SMEs SMEs in the Korean economyin the Korean economy
Current status and problems of Current status and problems of SMEsSMEs
• Weakened cooperation with large companies
• Domestic economy recession • Competition from rapidly developing
countries such as China
problemsproblemsproblems
• 2.95 million SMEs (99% of total)• 86.7% of total employees • 42% of total exports
SMEs in the economySMEs SMEs in the economyin the economy
ee--Business investment by firms Business investment by firms
Change rate Change rate (%)(%)
change(KRW in change(KRW in millions)millions)
3.4
10.1
5,778
232,093
ee--Business investment (2003) Business investment (2003)
31.4%SMEs (10~299 employees)
56.3%Large companies(300 employees or more)
System adoption System adoption rate (%) rate (%) Type Type
(source: KIEC, Dec. 2003)
※ e- Business investment figures were taken from a survey of 2,000 companies in terms of large sales volume
3
IT level ofIT level of SMEs SMEs SME Informatization StatusSME Informatization Status
PC holding rate of small businesses is 50.5%; PC utilization rate is 26.6%
98.7%
100%
26.6%
PC utilization ratePC utilization rate
100%1,600Large companies (300 or above)
99.5%19,000Medium-sized (50-299)
50.5%2.95 millionSmall businesses (1-49)
PC holding ratePC holding rateNo. of companiesNo. of companiesCompany Size (No. of Company Size (No. of Employees)Employees)
(Source: NCA, Apr. 2004)
IT Gap between SMEs and Large CompaniesIT Gap between SMEs and Large Companies
(Source: IT Research and Consulting Center, Feb. 2004)
KnowledgeKnowledge--basedbased(KM)(KM)
Work Work informatizationinformatization
(MIS)(MIS)
InterInter--company company informatizationinformatization
(B2B,SCM)(B2B,SCM)
Large companies
Medium-sized
Small businesses
CompanyCompany--wide wide informatizationinformatization
(ERP)(ERP)
Function Function informatizationinformatization(Word, Excel)(Word, Excel)
TypeType
4
Policy Policy directiondirection for for SMEsSMEs’’ IT adoptionIT adoption
Government sets directions, presents visionand induces privately-initiated IT adoption & use
Government sets directions, presents visionand induces privately-initiated IT adoption & use
Exploiting broadband infrastructure
Exploiting broadband infrastructure
Expand the current ASP program reach
Support IT adoption and use by SMEs lacking money & manpower
Demand-oriented tailored service
Demand-oriented tailored service
Positive cyclic development of SMEs &
IT companies
Positive cyclic development of SMEs &
IT companies
Maintain co-ordination among ministries, public and private sectors
Maximize the synergy effects by inter-departmental projects and
products
Partnership with Government & private
sectors
Partnership with Government & private
sectors
Promotes shared use of IT rental solution among companies, by
module and components
Meet demands by tailored service to specific business type
Enhance competitiveness through IT adoption and use
Form a positive cycle for IT companies by creating a new IT market
5
ASP as a new model of IT delivery for ASP as a new model of IT delivery for SMEsSMEs
From the perspective of the enterprise
Need to close the gap in IT adoption & use between SMEs & large enterprises
Compared to large firms, small-sized firms lag behind in IT adoption due to a lack of money
From the perspective of the policy
Need to eliminate social inefficiency caused by digital divide
Elimination of digital divide at an early stage to avoid greater effort and budget later
ASP as a new model of IT delivery for ASP as a new model of IT delivery for SMEsSMEs
6
What is ASP?What is ASP?
Characteristics of Characteristics of ASPsASPs
Delivers application services over the networkover the networkDelivers services to many customersmany customers with a wide range of requirementsCharges rentalrental or subscription-based fees
Access to Internet & S/WPay per usage term/per # of users
Network securitySystem management
Customer (Customer (SMEsSMEs))
Data CenterData Center
ASP providersASP providersConsulting and implementation
System operation and maintenance/repair
Help Desk, customer serviceHW, NW operation
Data management```
7
Different IT implementation strategiesDifferent IT implementation strategies
Source : Sun Microsystems PressSource : Sun Microsystems Press
8
ASPsASPs for for SMEsSMEs’’ ITIT
Specify application services needsBudget service costs and return on investmentContract for services
Minimizes TCOEasy upgrade of S/WNo need for IT personnel
SMEsSMEs’’ role with role with ASPs ASPs
SMEsSMEs can focus on their business, not ITcan focus on their business, not IT
IT services at lower cost IT services at lower cost & convenient solutions & convenient solutions
for small & micro businesses for small & micro businesses
RentRent--ITITASP-based e-Business project
for small businesses
9
ASPASP--based ebased e--Business project Business project for small businesses for small businesses -- 01Basic concept of Basic concept of ASPsASPs for SMESfor SMES
01
Consortia(Telecommunication Carriers & S/W Vendor)
Small & medium Enterprise S/W Vendor
SoftwarePet shop business portals Customer ManagementHub models for Opticianse-paymentPayroll Management
Tax DeclarationSCMERP
Pet Shop
SOHO
manufacturingASPs
Telecommunication Carriers
Broadband Network
Hotel & Inn
IT Training Support
Awareness raising Business Solution Development
Government
10
ASPASP--based ebased e--Business project Business project for small businesses for small businesses -- 0202
Business model development Business model development
To cover different business and inter-industry transactions Hub models & Community models
More readily available eMore readily available e--Business solutions Business solutions for small businessesfor small businesses
11
ASPASP--based ebased e--Business project Business project for small businesses for small businesses -- 0303
Hub-type bakery network serviceMarketing support ASP service for SOHO businessSmall business-type integrated security serviceInstitution computerization and e-Learning ASP serviceWork automation service for small textile businessesClothing hub-type agency management serviceManagement for small freight/construction equipment businesses and e-tax invoice ASP service ‘Shop operating ASP’ for small fashion businesses in traditional marketsOrder management service for commercial building in condensed residential areasReal-time reservation service for travel agenciesGIS supervising service for franchise branchesDay care center operation supporting serviceBuddanuri management ASP management serviceBizfos-OMS serviceHair parlor VSP development program
Hub-type BM
(32 units)
Small Interior business M-SCM ASP serviceMobile customer management serviceInstitution/visiting instructor business mobile ASP serviceBM proposal for loyalty service for small businessesLodging integrated management systemPet business portal and integrated ASPQuick service ASP (web-based brokerage system)Hub-type ASP System for fire-related small businessesLP gas remote integrated management serviceASP service for support of agro-equipment sales agenciesAssociation/group online document issuance ASP serviceOpticians’ industry hub-type cooperative BM using opticians’ ASP solutionsKindergarten education informatization servicee-contract service for small businesses E-TEL (SME Internet lodge business)Tax/Accounting HUB service
Community-type BM(7 units)
Online service for small distributorsCar part maintenance e-business modelFlower shop e-business model
Central distribution complex part retail/wholesale portal siteGas station community e-business modelTransportation broker community e-business modelParking business community model
Business ModelsType
12
ASPASP--based ebased e--Business project Business project for small businesses for small businesses -- 0404
Started ASP services
(2002,1)
Started ASP services
(2002,1)
2001 2002 20042003
1st small biz networking
program(2002.8)
1st small biz networking
program(2002.8)
Established plans for small business
networking program(2001.8)
Established plans for Established plans for small business small business
networking programnetworking program(2001.8)
2nd small biz networking
program(2002.9~12)
2nd small biz networking
program(2002.9~12)
3rd small biz networking
program(2003.1~2004.4)
3rd small biz networking
program(2003.1~2004.4)
4th small biz networking
program(2004.1~2004.12)
4th small biz networking
program(2004.1~2004.12)
11stst
44thth33rdrd22ndnd
Selected KT,Hanaro, Dacom, KICC,and Elion
as service providers(2003,2)
Selected KT,Hanaro, Dacom, KICC,and Elion
as service providers(2003,2)
Business solution development program
(2003.5~12)
Business solution development program
(2003.5~12)
Signed an agreement with related institutions
(2004.2)
Signed an agreement with related institutions
(2004.2)
Started SCM/Web services/ consortium-led business
solution development(2004,5)
Started SCM/Web services/ consortium-led business
solution development(2004,5)
Started developing Association/ group led
business solution(2004,7)
Started developing Association/ group led
business solution(2004,7)
Announced information
of 1million SMEs (2004.7)
Announced information
of 1million SMEs (2004.7)
Prepared strategies forbase establishment of
next generation e-business(2001,3)
Prepared strategies forPrepared strategies forbase establishment ofbase establishment of
next generation enext generation e--businessbusiness(2001,3)
Selected KT, Hanaro, and Thurunet as service providers
(2001,10)
Selected KT,Selected KT, HanaroHanaro, and , and ThurunetThurunet as service providersas service providers
(2001,10)
ProgressProgress
13
ASPASP--based ebased e--Business project Business project for small businesses for small businesses -- 0505
The number of subscribingThe number of subscribing SMEsSMEs is growingis growing……
No. of current users
235,796
263,980
289,132
229,061217,612
183,251176,638
157,772 166,225 171,488
100,000
200,000
300,000
Nov.2003
Dec. Jan Feb Mar. Apr. May. Jun. Jul. Aug.
No. of current users
Source : NCA, Sept. 2004
14
ASPASP--based ebased e--Business project Business project for small businesses for small businesses –– 06 06
GoalsGoals
Extend the program reach > IT diffusion to 1 million SMEs by 2008Extend the program reach > IT diffusion to 1 million SMEs by 2008
15
17 20 20
12
28
43
60
80
100
0
5
10
15
20
25
2004 2005 2006 2007 2008
0
20
40
60
80
100
120Cumulative # of user firms
# of subscribing firms by year
15
IT rental for to 1 million IT rental for to 1 million SMEsFuture PlanFuture Plan
SMEs
Emerging new IT market(e.g. IT rental)
Emerging new IT market(e.g. IT rental)
Realizing firm performance improvement by SMEs ICT diffusion
Realizing firm performance improvement by SMEs ICT diffusion
By extending the IT rental program > creation of a new IT market
Opportunities for S/W industry
By extending the IT rental program > creation of a new IT market
Opportunities for S/W industry
By exploiting advanced broadband infrastructure, ICT diffusion to SMEs with easy-to-use solutions at a lower cost
IT rental project reach to over 1million SMEs
IT rental project reach to over 1million SMEs
Resolve digital divide by the provision of customized IT rental solution
IT adoption & use by 1 million SMEsIT adoption & use IT adoption & use by 1 million by 1 million SMEsSMEs
Enhance corporate productivity by integrating an information system
16
Success Story Success Story -- Big Yard Car Center
Company InformationCompany Information
CEO: Jang, Kyung KenBusiness Area: Car maintenanceNo. of employees: 3Service offered: KT Bizmeka Highway (Car maintenance management)
EffectsEffects
Increase in number of patronsPatron rate increased from 60~70% to 90%
Established stable sale baseDespite 30% industry-wide sales decrease, no noticeable sales decrease experienced
Improved perception and enhanced credibility of car maintenance businessesImproved negative perception towards car centers using car maintenance books, SMS, and part price inquiry, etc.
17
Success Story Success Story –– Safe InteriorSafe Interior
Company InformationCompany Information
CEO: Kwon, Oh GilBusiness Area: InteriorNo. of employees: 2Service offered: KT Bizmeka Interior
EffectsEffects
Reduced labor costReduced labor cost by KRW 10 million because there is no need for part time-workers as
3-D simulation has been possible using the serviceReduced work time
Using the service, work time has been reduced by 80%.Enhanced customer reliability
Enhanced customers’ perception of ‘non-specialized’ small-scale interior businesses and helped sales activities
18
Success Story Success Story –– Seodaemoon Seodaemoon tutoringtutoring
CEO: Yoo, Yeon WangBusiness Area: Institution for elementary, middle and high school studentsNo. of employees: 10Service offered: Dacom e-biz mart Institution Management
Company InformationCompany Information
EffectsEffects
Increase in number of students165 students increased by 21% to 200 after using the service
Reduction in management expensesStudent management expenses decreased by 80% from KRW 1 million to KRW
200,000Reliability and parents’ satisfaction with the institution have improved.
Providing student information on the homepage and through SMS
19
Thank youThank you
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