Neo-Renaissance of IT Industry
The future of the industry is change
This article was contributed by the KT Management Research Laboratory -- Ed.
On December 21, KT Management Research Laboratory (KTMRL) announced the IT2.0 Strategy for Neo- Renaissance of IT Industry, a long-term plan for the IT industry for 2015, which has jointly been made through collaboration with many experts in the academic field in an effort to pursue a new growth model of IT industry.
The research paper of the IT2.0 Strategy has defined the period of ranging from 1990s to 2003 as an IT1.0 era, when the domestic IT industry has been led by the government, and has shown a steady growth based on domestic demand. First of all, thorough research has been made on the growth factors during the IT1.0 period in order to analyze the current slowdown of IT industry. Also in an effort to seek a new growth engine, the research has defined the coming period from 2007 to 2015 as an IT2.0 era, while suggesting 4 strategic directions and 5 agendas.
IT2.0 means a change of paradigm and evolution of current IT industry structure, which focuses on a value creation-oriented industrial ecosystem that can be made through participation and collaboration among consumers, enterprises, and government. It also covers the concept of strategic direction for both IT enterprises and government to prepare for the change of paradigm and spirit of the new era. The big picture of IT2.0 to be realized by 2015 is that IT industry takes root in our everyday life, eventually showing the realization of neo-renaissance of the IT industry. The neo-renaissance of the IT industry is characterized by three signs. First, it is ubiquitous -- like welldesigned ducts and pipelines, IT-based services are available anytime and anywhere. Second, it is pervasive -- all goods and services are connected with the IT industry. Third, it is embedded -- IT, biotechnology and nanotechnology will fuse, thus bringing an era of fusion technology to our society. IT2.0 aims at two targets: one is to drive innovation for a new industry, the other is to obtain global competitiveness. As a result of these efforts, we can meet with the era of the neorenaissance of the IT industry. First, we must drive innovation for a new industry. In the era of IT1.0, the growth engine has been a super fast Internet service and CDMA mobile communication service. For the IT2.0 era, we have to find out new growth momentum by creating a new service in the fusion technology. Second, as IT1.0 has succeeded in obtaining competitiveness based on active services in the domestic market and then the global market by the development of diverse terminals, we have to take top leadership in the global value chain. To this end, IT2.0 has established 4 key strategies and 5 agendas.
Four key strategies
Different from IT1.0 led by the growth strategy characterized by supply and technology, IT2.0 is based on the new growth strategy direction to be specified by participation and collaboration. The 4 great strategies are as follows. First, we need cross-industry participation to satisfy consumers' diversified and demanding requirements. Therefore, a new service and industry will be created by fusion technology. Second, global value chain participation: to go ahead in the global market and to break through the slowdown of domestic market, all participants in the IT industry need a new survival strategy for the expansion of a global market. Third, market participation strategy: Different from the government-led strategy in the IT1.0 era, the IT2.0 is based on the market-led strategy, which puts emphasis on the efficiency and quality of a market. Fourth, collaboration in ecosystem strategy: Based on the IP based broadband network, the strategy to activate a new ecosystem has to be established so that it may contribute to setting up a new service environment and newly changed relationship among related industries.
Five key agendas
The five key agendas are as follows. First, simultaneous growth of both services and devices: in order to let IT competitiveness and creation of national wealth go together, the introduction of new services and obtainment of core and original technologies are required to go simultaneously, putting similar emphasis on both of them. That is to say, simultaneous growth strategy of services and devices has to be pursued. Second, reestablishment of the government role as a market facilitator: The role of government has to be reestablished as a market facilitator.
It means changing from regulator to facilitator. Also the government is required to support the IT industry as a market shaper. Third, establishment of innovation network: The innovation network has jointly to be established by the government and enterprises. That is, the government is required to let the enterprises to participate in the policy making, while providing a common ground for cooperation among enterprises. Fourth, leadership in the global value chain: expansion of test beds and inducement of R&D center of overseas companies is vital for value creation in the global market, consequently making it possible to hold a leadership position in the global value chain. Fifth, laying a foundation for growth through consumer participation: in order to use a consumer as a new growth engine, a consumer-led company should be promoted, and a company-consumer cooperation model should be developed so that consumers will participate more positively in the market.