Ictmarch2009

ICT Conference 2009ICT Conference 2009

Asia as a Source of Asia as a Source of InnovationInnovationAngus M RobinsonAngus M Robinson

Executive Director, Australia-Taiwan Business Executive Director, Australia-Taiwan Business CouncilCouncil

31 March 200931 March 2009

Reality Check No 1 Reality Check No 1 Sustaining Australian Myths about Sustaining Australian Myths about

InnovationInnovation We are the world’s greatest inventors! Australia generates huge benefits from public R&D spend

on hi-tech industries – which KPI??? Aussies are world leaders in telecommunications! Our resources industry will sustain our economy

indefinitely! Australians are amongst the hardest workers in the world!

Our ‘mind-set’ as a bulk commodity supplier crowds out Our ‘mind-set’ as a bulk commodity supplier crowds out opportunities for innovation in the ICT industry.opportunities for innovation in the ICT industry.

Reality Check No 2 Reality Check No 2 Australian- Owned Australian- Owned Global Global Hi- Tech BrandsHi- Tech Brands

20002000 Mincom Resmed Cochlear

20082008 Resmed Cochlear

“The Asia region is amazed at the wealth of engineering talent we have in Australia and the massive amount of R&D expertise that is tied up in our research institutions. Can’t understand how we have not been able to capitalise on this competitive knowledge base - THE ENVY OF THE ASIAN REGION! A window of opportunity, perhaps 3 to 5 years at the most, before this gap is closed by China”

Source: An informed Asian electronics industry Source: An informed Asian electronics industry observer commenting on the ‘Big Country’, 2004observer commenting on the ‘Big Country’, 2004

Confronting Reality No 1

“The biggest shock is yet to come – that’s when the centre of technological innovation starts to move to China”

“In five to 10 years time, the biggest issue will the biggest issue will be how do companies around the world get be how do companies around the world get access to the technology being developed in access to the technology being developed in ChinaChina”

Source: Jack Perkowski, Chairman and CEO, ASIMCO Source: Jack Perkowski, Chairman and CEO, ASIMCO TechnologiesTechnologies,, 22 February 200622 February 2006

Confronting Reality No 2Confronting Reality No 2

Reality Check No 3 Reality Check No 3 Australian ICT Industry R&D Capability Australian ICT Industry R&D Capability

DecimatedDecimated About 100 research and development positions will be made About 100 research and development positions will be made

redundant at technology group NEC Australia, redundant at technology group NEC Australia, Australia’s largest Australia’s largest ICT R&D provider.ICT R&D provider.

Japan made a decision to recallJapan made a decision to recall the R&D that they had the R&D that they had outsourced;outsourced; part of that included a team in Victoria, who were part of that included a team in Victoria, who were focused on mobile technology.focused on mobile technology.

The company will be adopting new internal structures based on The company will be adopting new internal structures based on enhancing productivity, and enhancing productivity, and will be developing new products will be developing new products based on cloud-computingbased on cloud-computing..

26 March 200926 March 2009

What is Needed to Enhance Value What is Needed to Enhance Value from Advanced Technologiesfrom Advanced Technologies

Higher Added-Higher Added-value and Lower value and Lower

ReplacementReplacement

PRODUCT PRODUCT REALISATION REALISATION CENTRECENTRE

Marketing

BrandInnovation

DesignR&D

R&D/Innovation R&D/Innovation CentreCentre

Value CreationValue Creation

Standardization

AddeAddeddValueValue

Value-added ChainValue-added Chain

Global Logistic Global Logistic CentreCentre

Logistic

AssemblyManufacture

Source: III, TaiwanSource: III, Taiwan

Australian ICT industryAustralian ICT industry- our only competitive advantage- our only competitive advantage

“ “ Innovative engineering skills which can Innovative engineering skills which can integrate and adaptintegrate and adapt technologies sourced technologies sourced locally/globally with field knowledge to locally/globally with field knowledge to QUICKLY meet niche market opportunitiesQUICKLY meet niche market opportunities initially locally and then overseas”initially locally and then overseas”

Angus M RobinsonAngus M Robinson

Australia - ‘Greater China Region’ Australia - ‘Greater China Region’ ICT IndustryICT Industry FocusFocus

ChinaChina

TaiwanTaiwan

Hong KongHong Kong

USAUSA

JapanJapanKoreaKorea

SingaporeSingapore

Underpinned by the Underpinned by the Government’s support of Government’s support of industry-led initiatives industry-led initiatives linked to mechanisms such linked to mechanisms such as the as the Australia-Taiwan Australia-Taiwan Strategic Framework Strategic Framework Agreement (ATSFA) and Agreement (ATSFA) and bilateral FTAs (USA, bilateral FTAs (USA, Singapore, Thailand etc) Singapore, Thailand etc) for the mutual for the mutual development of the ICT development of the ICT industriesindustries

Other World Other World MarketsMarkets

ASEANASEANcountriescountries

IndiaIndia

NewNewZealandZealand

Australia - ‘Greater China’ Engagement Australia - ‘Greater China’ Engagement FocusFocus

AustraliaAustralia

ChinaChina

TaiwanTaiwan

Hong Kong

USAUSA

JapanJapanKoreaKorea

IndiaIndiaASEANASEAN

Underpinned by Government support e.g. Underpinned by Government support e.g. Global Opportunities Program linked to linked to mechanisms such as the mechanisms such as the Australia-Taiwan Strategic Framework Agreement (ATSFA) for Australia-Taiwan Strategic Framework Agreement (ATSFA) for the ICT industries.the ICT industries.

Australia’s electronics industry game Australia’s electronics industry game plan?plan?

MassMassManufactureManufacture

Commercialise & DistributeCommercialise & Distribute

CommercialiseCommercialise

IdentifyIdentifyMarketMarket

SourceSourceComp.Comp.

CapabilitiCapabilitieses

Design, developDesign, develop & integrate& integrate

Recognising Emerging Recognising Emerging Opportunities – Automotive Opportunities – Automotive

TelematicsTelematics““Automotive Automotive Telematics Telematics combines combines computing and wireless computing and wireless telecommunications technologiestelecommunications technologies to to provide the capability to effectively provide the capability to effectively convey information over networksconvey information over networks, to , to improve government, business, and improve government, business, and consumer services”consumer services”

AutomotiveAutomotive Telematics – the Six Cs of Telematics – the Six Cs of Technology ConvergenceTechnology Convergence

CComputingomputing CCommunicationsommunications CConsumer Electronicsonsumer Electronics

CCarar CContentontent CChannelhannel

Why Automotive Telematics?Why Automotive Telematics? Existing auto manufacturing and ICT industry

capabilities Develop ‘value-add’ products and services to ‘value-add’ products and services to

match identified opportunitiesmatch identified opportunities Application of automotive telematics can

reduce vehicle emissions

AutomotiveAutomotive Telematics Telematics

Global market of US$122.4 billion (2004)

Just producing 2% of global market2% of global market will generate as much export dollars as current levels of the entire electronics industry exports i.e. $2.5 billion

Neither the Bracks or Cutler reviews focused on this or Neither the Bracks or Cutler reviews focused on this or other like opportunities!!other like opportunities!!

From Traditional Car to From Traditional Car to Smart CarSmart Carand ITS Systemand ITS System

1980 1990 2000 2005 2010 2020

Computer Control Substitution• Control of mechanical/electrical systems: Engine, power-train, chassis, interior and other functions• First basic functions Then improved performance And then new functionality

TelematicsTelematics• Applications using 2-way communication & location detection• Safety/security, real-time navig’n, content access, entertainment

X-by-Wire System• Replace mechanical-hydraulics with electronic systems• Steer-by-wire, brake-by-wire, throttle-by-wire

Smart Car• Advanced functions using sensors & computer power• Driver assist and active safety functions

Intelligent Transport Systems (ITS)• IT communication• Traffic Management, advanced highways

Source ： TRG,IEK/ITRI, Taiwan （ 2005/08)

ATS Signature ProjectATS Signature Project“Automotive Telematics”“Automotive Telematics”

ATS Signature ProjectATS Signature Project Turn by turn directions to a required destination Real-time monitoring of traffic congestion Real-time roadside camera images Nearby car park locations, availability and prices Emergency features e.g. SOS assistance, vehicle alarm

monitoring and crash detection Ability to check tollway balance High-value alerts e.g. traffic alerts, car service

reminders, fuel pricing and weather alerts Home control systemsHome control systems

‘‘AT Signature’ Vehicle – mark 2AT Signature’ Vehicle – mark 2

Brand positioning:Brand positioning: “ “AT Signature – Safe, Smart, Connected”AT Signature – Safe, Smart, Connected” Embedded systemEmbedded system and and aftermarket aftermarket

models considered models considered Other projects under consideration Other projects under consideration

include include fleet performance systemsfleet performance systems, , traffic traffic congestion probescongestion probes, , optimised emergency optimised emergency vehicle telematicsvehicle telematics

Main Office 1

Main Office 2Remote Office

HomeHome

IP-PBX

PBXPSTN IP Mobile

IP Centrex

Mobile Worker

Connected Delivered Services,Connected Delivered Services,“Networked Consumer”“Networked Consumer”

Source: Telstra Corporation

AutomobileAutomobile

VehicleVehicle

R&DPlant

Dealer/Service Center

NISSAN DB

CRM

VRM

DSRCfor ITS

DataBroadcastCellular Phone

& Wireless LAN

Services provided by an Services provided by an Automotive Telematics EcosystemAutomotive Telematics Ecosystem

Intranet

Better way of customer care and marketing

-Fleet Management- Second Hand

Market

Social Responsibility

Main Office

Main OfficeRemote Office

Home

PBX

PSTN

IP

IP Centrex

Mobile Worker& Consumer

Mobile

Existing Connected WorldTelematics

Front-end

Internet

Source: Telstra (amended)

IP-PBX

Safety & Security

PSAP

Telematics Ecosystem in Telematics Ecosystem in TaiwanTaiwan

GPSGPRS/3GBluetooth

DAB/DTV

Vehicular Telematics Platform

Mobile Comm. Access Network

Telematics Service Provider

Telematics Service Providers

• Vehicular Information Register• GPS Navigation• Wireless Communication• Diagnostics• Vehicular Electronics• Travel Log

Localization /Tracking

Diagnostics andMaintenance

Internet

Production/Sale/Maintenance System

Data Centre

Secure Transaction

Call Center

Digital Content

ITS Center

Travel Agents

Service Stations

Customer Service

Financial Service

Auto Makers

Rentals

Insurance

Car Sales

Digital Content

After Market

Source ： IEK/ITRI （ 2005/08）

Telematics 2.0 Telematics 2.0 Next generation information services for the networked car will offer a new level of “rich user experiences”, embracing the following technology trends: Penetration of ICT technologies into the car. Expansion of digital network in each country. Advancements of Web 2.0 related internet

technologies.

Australia- TaiwanAustralia- Taiwan Strategic Framework AgreementStrategic Framework Agreement ‘Creating New Industries Together’‘Creating New Industries Together’

Partnership and collaboration:Partnership and collaboration:

1.1. Technology Research and Product Technology Research and Product DevelopmentDevelopment

2.2. High Value Added ICT ManufacturingHigh Value Added ICT Manufacturing 3.3. Strategic Alliances Strategic Alliances 4.4. Investment CollaborationInvestment Collaboration 5.5. Trade FacilitationTrade Facilitation

A Template to SucceedA Template to Succeed Australia needs measurable, high level, wealth creating

strategic goals not just a focus on productivity and employment not just a focus on productivity and employment changes. changes.

Research and development geared to ‘market facing’‘market facing’ needs. Continuous focus on upskilling and educating.upskilling and educating. Commercialisation of technologies to create new products and

services for global markets. Strategic focus on industrialisation industrialisation to create new industriescreate new industries e.g.

telematics, medical devices etc, not more ‘cottage industries’. Create the environment for the emergence of new globally emergence of new globally

branded hi-tech companies.branded hi-tech companies.

Some ICT Opportunities for Australia in Asia

RFIDs – logistics related to agricultureRFIDs – logistics related to agriculture eHealth and medical deviceseHealth and medical devices biophotonicsbiophotonics ICTs related to biotechnologyICTs related to biotechnology embedded systems - electronicsembedded systems - electronics ICT linkages to green technologies, particularly PVsICT linkages to green technologies, particularly PVs WiMAX and other wireless technologiesWiMAX and other wireless technologies digital communications and infrastructuredigital communications and infrastructure automotive telematics and ITSautomotive telematics and ITS

Contact DetailsContact Details

www.atbc.asn.auwww.atbc.asn.au

email: [email protected]: [email protected]

tel: 0418 488 340tel: 0418 488 340