Download Pros and Cons of Business prospects in Internet of

Pros and Cons of Business Prospects in
Internet of Things and Cloud Computing
9.6.2011 8:30-12:00
Finpro, Auditorium, Porkkalankatu 1, Helsinki
Deze Zhao, Lic. in Tech.,
Aalto University, School of Science and Technology
+358 50 5757618
[email protected]
Contents
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•
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Chinese Market and 12th Five-Year Plan
Why go to China
Challenge and Strategy
A brief review on the development 2004-2010
of Finnish and Chinese Software Businesses
and their contributions to GDP
• Business Co-operation and Co-innovation
between Chinese and Finnish
China 12th Five-Year Plan (FYP)
• The 12th Five-Year Plan for National Economic and
Social Development, released 16.03.2011
• 7 New Strategic Emerging Industries (SEIs)
– energy-saving environmental protection
 next generation of information technology
– biotechnology
– high-end equipment manufacturing
– new energy
– new materials
– new energy vehicles
China 12th Five-Year Plan (FYP)
• New strategic emerging industries (SEIs) will add 8% to GDP
• Next generation information technology (NGIT)
– Next generation of mobile communications
– 3-networks convergence (telecom, Internet, TV-nets)
– Cloud Computing
– Internet of Things
• The government plans to promote the investments in R&D of
the "Internet of things (IoT)", cloud computing
• Sensor networks and IoT R&D center in Wuxi, Nov. 2009
• China Cloud Computing Technology and Industry Alliance
(CCCTIA), Jan. 2010
How popular of cloud computing now?
Source: China’s Pragmatic Path to Cloud Computing, Accenture and Chinese Institute of Electronics, May 2010
Opportunity of Finnish Companies or
Stakeholders
• According to 12th Five Year Plan:
• Besides cloud business and Internet of Things
• e-business, e-government, e-banking, e-payment,
etc.
• Especially, Networks and Information Security
• Law legislation, information security standards and
certification, and accreditation systems
• Information security and protection, risk assessment
system
Why go to China ?
• Second largest economy in the world, but China needs
industry upgrading
• Plenty demands of applications in example: smart grid
(future), traffic jam control (imminent), such as in Beijing
• SMEs of 4.3 millions in 2010 (60% GDP, 75% job market), cloud
business in ERP, Finance & Banking, etc.
• While entering Chinese market Finnish Companies enhance
their techs and competitiveness also
• A failed business campaign for example: logistic ERP system in
China, needs the transportation optimization. Finland no huge
jams, and very high importance of traffic optimization needs
Challenge and Strategy
• China companies techs cover and reach almost every area
• Strong local competitors in tech and good customer
relationship (more threats)
• IPR issue, e.g., Z-Park (Zhongguancun National Innovation
Demonstration Zone, Beijing), ‘A scheme of patents sharing
alliance among Chinese companies’
• Speed up R&D, overcome the patent barriers, or a sort of
money laundering club?
• How Finnish will do: Technology Alliance / China Business
Alliance in IoT or Cloud Computing?
Software Business Revenue (No third-party,
In-house, embedded software, etc.)
Source: Finnish Software Industry Survey 2010
Ministry of Industry and Information Technology, China
Total Revenue Meur
4000
3000
2316
3090
3059.1
2006
2007
Year (Finland)
2008
2009
2000
1000
0
Total Revenue 100Myuan
2547
2985
2728
2004
2005
6000
4208
4000
3165
2000
799*
0
2004
1299*
1487*
2005
2006
3291.5
2017.3
2007
2008
Year (China)
2009
2010
Software Products Revenue Contribution to GDP
(Statistics of Finland and China)
Business Co-operation and Co-innovation
between Chinese and Finnish
• Where is your customer and partner?
• Traditional way of market entry: contact local customers directly, reseller,
etc.
• The cooperation with prospect R&D Labs in companies, institutes,
universities
– The Labs in China Mobile, China Unicom, State Grid, and key labs in
research institutes and universities
– The Labs have good local contacts and customer relationships
– Some Chinese Labs are business oriented, less in R&D
• High-Tech Parks in Beijing, Shanghai, Wuxi, Shenzhen, etc.
• China government influenced or supported demonstration projects
• Consider the influences of Nokia, Kone, Kemira, Metso, etc.
Thank You!
Special thanks to:
Timo Nyberg: Senior Fellow, Software Business Lab., Industrial Engineering and
Management Department, Aalto University
Runhua Lin: Deputy Secretary General of Chinese Institute of Electronics, Secretary
General of Chinese Cloud Computing Experts Committee