Diffusion of Internet and the New Lifestyle

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1 WTO IT Symposium 2004 Diffusion of Internet and the New Lifestyle Oct. 18, 2004 Oct. 18, 2004 Masaichiro Yoshioka Department Manager Business Solution Systems Division, HITACHI Ltd. Japan

2 1 Changes in the Information Society Changes in the Information Society Evolution of Information Technology Changes in Information Utilization Network Proliferation Broadband networks Always-on connection Global and 24x365 infrastructure Diversity of Communication Devices 3G mobile phone services Personal portable information devices Consumer and car electronics Indispensable to Daily Life Get fresh news through the Internet Close communication by mobile phone Net-shopping Quality & Freshness shape Business Improve business efficiency using IT Real-time recognition of the market e-marketplace and SCM

3 2 Evolution of Communication (in Japan) Evolution of Communication (in Japan) Period ~ ~ Wired Communication ISDN (64kbps) FTTH high speed (~100Mbps) FTTH shared medium speed (~10Mbps, Bandwidth control) ADSL (100kbps~1.5Mbps~40Mbps) Wireless Communication cdma2000 2G (PDC; ~11.2kbps) 2.5G (cdmaone; ~128kbps) 3G (W-CDMA/cdma2000; ~384kbps) Digital Broadcasting New satellite Digital Satellite Broadcasting (CS) Digital Satellite Broadcasting (BS) Digital Terrestrial Broadcasting

4 3 Diffusion of Internet (1) Diffusion of Internet (1) The number of Internet users is 77.3M, exceeding 60% of population. Internet becomes the necessities not only in business but also in home. Internet User Population and Penetration Rate (Million) 70% 100% Diffusion rate Internet users Penetration Rate in the Households, Enterprises, and Offices Enterprise (More than 300 employees) Offices (more than 5 employees) Households Source: 2004 WHITE PAPER Information and Communications in Japan

5 4 Diffusion of Internet (2) Diffusion of Internet (2) Number of Mobile Phone Subscribers and Number of Mobile Phone Internet Subscribers (Million) Mobile Phones Mobile Internet 4, /3 2000/3 2001/3 2002/3 2003/3 2004/3 Source: 2004 WHITE PAPER Information and Communications in Japan Top 5 Devices for Internet Access Desktop PC Note PC 5, Mobile Phone 2.8% 1.9% PDA 6,094 3,457 Game Machine 54.1% 35.8% 6,912 5, % 7,566 6,246 8, % 6, % Source & : AccessMedia/Impress, 2004 Top 5 Places for Internet Access Hotel, Inn, Lodging 54.4% Public Place (Airport, Park, ) 35.7% At Business Visit 32.5% Fast Food Shop 28.8% Vehicle 26.5% 17.5% Restaurant 11.7% Library 11.0% Event Venue 7.8% Cafe 6.8% School % Top 5 Carrying Information Device Note PC (A4 size) Note PC (B5 size) PDA 11.7% 1.7% 20.7% Note PC (Smaller than B5) Browser Board Source & : AccessMedia/Impress, % 36.3% % Source & : AccessMedia/Impress, 2004

6 5 TV shipment forecast (in Japan) TV shipment forecast (in Japan) Switchover from CRT to Flat Panel TVs will increase. 42% of TV shipments will be Flat Panel TVs in k units/year 10,000 8,000 6,000 4,000 2, , ,000 1, ,050 1,600 2,000 2,500 3,100 8,433 8,200 7,700 7,100 6,600 6,000 PDP LCD CRT 0 '01 '02 '03 '04 '05 '06 '07 PDP:Plasma Display Panel, LCD:Liquid Crystal Display, CRT:Cathode Ray Tube LCD: more than 10 Source: JEITA

7 6 Market Trend for DVD Products Market Trend for DVD Products DVD is becoming a popular media in the world. Forecast of Video Products in Japan (k units/year) 6,000 4,000 2,000 DVD Player DVD Recorder VTR/VCR DVD 30,000 20,000 10,000 Forecast of Video Products in USA (k units/year) DVD Combo DVD Player DVD Recorder VTR/VCR DVD 0 2, ,000 6,000 Tape 10,000 20,000 Tape 8,000 30,000

8 7 Networking Evolution HOME Second Stage Internet DVD/HDD Recorder PC First Stage Mainframe Open Network COMMUNITY DVD Camera Home Server PC Closed Network Third Stage Server PDA Community Display TV/STB Ubiquitous Network Multimedia Kiosk Guaranteed and secure communication Mobile PC Phone Server Note PC Projector Note PC Navigation OFFICE PDA OUTDOOR

9 8 Networks in HOME FLAT TV Home Server STB/AVC Station Broadcasting Station LCD Projector Audio-Visual equipment Network DVD Recorder DVD Camera Digital AV Phone PC Network Networked HA Telecommunication Firm Gateway Internet Service Provider HA: Household Appliance HA Network HA Controller DVD Player New Technologies IEEE1394 Blu-ray Bluetooth Wireless LAN USB2.0 IPv6 ECHONET

10 9 Mobile Phone Services Mobile Phone Services Smart phone Phone & Mail Phone Mail Browser Camera Game Picture Mail Video Mail Video Phone Identifier TV Audio ID Wallet Real-time Information IP Radio Video News Digital TV Movie/Music Delivery Contents Service Provider Shop Banks e-wallet / e-ticket Pay by Phone Carriers Station Credit Companies Secure Card

11 10 Ubiquitous Information Society Ubiquitous Information Society Evolution of Information Technology Changes in Information Utilization Ubiquitous Information Society Ubiquitous Information Society Anytime and Anywhere, Anybody can obtain information Free from restrictions - Time, Place, and Devices Internet and IT becomes indispensable lifeline to the society Ubiquitous : seems to be everywhere This word is used as a keyword describing a concept of new information society, realized using new information and communication technologies. Examples: Ubiquitous Network, Ubiquitous Computing(1988,Xerox)

12 11 e-japan Strategy II e-japan Strategy II Shore up social reforms by encouraging innovation and exploiting IT Individual viewpoints Private-sector initiatives Government support Concrete goals and time limits Third-party evaluation Pioneering application programs of e-japan Strategy II Sectors: Medical services: Food: Lifestyle: Small and medium-sized enterprise financing: Knowledge: Employment and labor: Public service: Contents of programs Raise level of service by sharing medical information Safety and security by securing traceability Safe, secure, and convenient living environment with e-home New financial services through deregulation Distance education and creation of content value Easier business establishment and diversified working patterns Improved efficiency and quality with deregulation and outsourcing

13 12 Traceability Information retrieval Recycle/Disposal Producing Center Consumer µ-chip (RFID) Inspection Organization Warehouse Retail store Transportation Processing Authentication Using wireless IC-tag Recording and mgmt. of circulation Info. Total service including distribution etc. Realize safe and secure dietary life

14 13 RFID RFID Tag IC chip Antenna RFID system Reader/Writer Antenna Reader/Writer RFID: contact-less identification technology Characteristics of RFID Tag: (1) Larger memory capacity (2) Rewritable (3) Permeable (4) Difficult to copy, unable to falsify Traceability Clarify product info. and distribution routes Authentication Guarantee genuineness of things Recycle Manage lifecycle of products Designer goods Assembling Distribution Security, Tickets, etc. Recycling RFID: Radio Frequency Identification

15 14 Application to Agriculture Application to Agriculture Potato cultivation Field Sensors Sense field conditions (Temperature, Humidity, Rainfall, ) Farmer Apply to cultivation activities Cultivation data - Best suited formwork - Suitable timing etc. Data Center Analyze data immediately, and advise according to cultivation know-how. Source: Nihon Keizai Shinbun Add higher value to the harvests Enable efficient and best suited cultivation Being recognized as an established brand

16 15 Urban Planning and Development Urban Planning and Development IT-enabled condominiums /comprehensive building management e-homes /e-communities Town management system Energy conservation /regional energy Safe and secure cities Comfortable and convenient services Disaster-resistant cities Sustainable societies compatible with the environment

17 16 Intelligent Transport Systems Intelligent Transport Systems Broadcasting and Communications network Satellite Onboard information systems Traffic management system ITS center Digital terrestrial broadcasting Mobile communications In-car network Car control systems Remote maintenance Advanced navigation Digital broadcasting services Networking

18 17 e-government Services for residents using internet Station Tax payment e-procurement Facility reservation e-application Home Shop Commercial Registration Authority Government Certification Authority Internet e-government e-municipality Office Private Certification Authority Individual Authentication Service Organization Authentication Infrastructure Intranet Government Office WAN Local Government WAN Intranet Source: Ministry of Public Management, Home Affairs, Posts, and Telecommunications

19 18 Medical Care Medical Care Prevention Individual illness risk prediction for sick prevention Electronic Karte Treatment Advanced medical treatment for early rehabilitation Tailor-made medical care Medical network Bioinfomatics Examination & diagnosis Support for adequate examination based on the individual illness risk Realize advanced medical care for ease and health

20 19 Information Pervasion Information Pervasion Distribution Regional services Traceability Urban planning and development Information Technology Ubiquitous Information Society Picture content services Intelligent transport systems Digital household appliances e-government Mobile phone services Security Health maintenance services Financial services Advanced medical equipment Medical care

21 20 Issues Security Privacy / Personal information Spam mails Spoofing / Authentication Theft / Copyright Viruses Eavesdropping / Illegal access Information sharing / governance Digital Divide Environment protection Stability Standardization Cost

22 21 Conclusion Evolution of IT The remarkable evolution of IT, represented by notable network proliferation, and the expansion of information utilization have brought us a new Ubiquitous information society. Utilization creates Value The value of IT evolution resides in its utilization. New applications create new benefits, and improve our society and daily lives. As a consequence, it will bring the happiness of the people, and the growth of national strength. It will also solve the digital divide and make the information differentials between nations or regions smaller. Global Collaboration To cope with the issues, various global collaborations of all interested parties are indispensable.

23 Thank you Thank you Diffusion of Internet and the New Lifestyle Diffusion of Internet and the New Lifestyle Oct. 18, 2004 Oct. 18, 2004

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