Internet Technology Boom In China example essay topic

INTERNET TECHNOLOGY DEVELOPMENT BOOST CHINA FURTHER perspective look at the country's transition in next decade relative to internet technology Bo Li, School of Technology & Management Submit to: Mr. Paul Reynolds INTRODUCTION Since 1980 China's economy has grown by more than 9 percent a year. The country now manufactures 75 percent of the world's toys, 58 percent of the cloths, and 29 percent of the mobile phones. More than $1 billion in foreign direct investment arrives each week. By 2008 China will be the world's third largest exporter, and by the decade's end its economy will be larger than that of either France or United Kingdom (Emmanuel, et al., 2004). China's GDP in 2004 growth by 9.5 percent to cG 851,072 million and IT (information technology)'s contributions account for 25 percent. It is predicted that the IT market will growth by 15.8 percent every year to 2009.

Economists are curious to know how long will China's strong economy be. When the advantage of low labor costs in China will subside in the future, what will support its fast growing economy? According to China Internet Network Information Center (CNNIC)'s 2005 report, 94 million internet user and half of them are using broadband connection. China now has 4 internet-based companies listed in NASDAQ. As they reported profit since the SMS business introduced in 2002, many economists think there will be an internet technology boom in China again. IT industries in developed countries now are facing both challenge and opportunity since many mergers and acquisition happened in west countries from Chinese maker.

That what will happen in China on internet technology in the next 10 years will affect every international business around the world. This study begins with the analysis of upcoming internet technology! X examining the effect of future internet technology and China's policy! Xand then move on the analysis of the impact of internet technology on China's industries in next decade as well as its future contribution to the country's stellar growth.

Internet Era Just Begin Internet will change more dramatically in the next decade than it has during its entire history. We have just seen the beginning of what the Internet can do for use as a revolution in communications and the way business is done (Gates, 2000). Internet application had moved from transaction phase to platform phase at the beginning of this decade. There are some trends will be prevailed. f Th Wireless connection on multi-device Wireless connection between different devices at high speed is probably the key component that is really going to take the scenarios of empowerment that we have always believed in and make them a reality. From infrared ray through FM to Bluetooth still recently GPRS, 802.11 g, wireless technology has become more advanced and more applicable by connecting different devices such as cell phone, computer, Hi-Fi system at high speed. It is talking about the multi-device era where it is the phone, it is the TV set, it is the car, it is the PC, all hose things working together.

It is the same sentiment as when people want to make the phone mobilized because only by seating down with a computer can not satisfy the demand of working together. The role of wireless in letting people reach out to information is just at the beginning. Being connected whenever, wherever you are can make the work effectively. These must be devices that will not require people to perform tasks such as configuring and upgrading operating systems and applications, which are annoying and often too intimidating for a lot of people out there. f Th Reliability, Security of Internet The internet will enable an era of change for Chinese society and Chinese economic development, said Lu Zhi cheng (2002), President, Tsinghua Tong fang, China, ! SS but that will depend on credibility, safety and security. !" Research and development efforts are underway to allow critical applications to operate in the future in a more secure environment than exists today.

In the future, authentication protocols will increasingly be supported by technology that authenticates individuals (in the context of their organizational or personal roles) through the use of smart cards, fingerprint readers, voice recognition, retina scans, and so forth. Intrusion detection tools and techniques that can identify coordinated distributed attacks are critically needed, as are better protocols to support traceability. Internet security has generated a new market. Only first half year of 2004, Chinese internet security products sale was cG 100 million.

Although the battle between the attacker and defender has never stopped and will continue, our internet is more secure than before by using new internet technology. f Th Standardization of High Speed Internet Connection Fast networking, user interfaces, and computer power are clearly going to make a big difference and will play key roles in enabling future progress. Scientists at the Stanford Linear Accelerator Center used fiber-optic cables to transfer 6.7 gigabytes of data! The equivalent of two DVD movies! X across 6,800 miles in less than a minute. The cost of such internet connection will decrease and be commercial in next 10 years. High speed internet connection realizes the distance collaboration, distance education and entertainment.

Doctors at multiple sites can share and discuss a patient's [heart test results] to diagnose and plan treatment. We have already seen the TV programs on computer and this function will be enhanced in next 10 years. Effect of Internet Technology in Five Industries Despite the recent bursting of the technology bubble and the demise of countless e-businesses in China and around the world, the general consensus was one of optimism for the future of the internet in china. E-business is seen as having potential not only in its own right, but also as an enabler of development in other industry sectors, such as education, manufacturing, retailing, and telecom. Manufacturing Most manufacturers viewed the World Wide Web primarily as a means of advertising and marketing, and as a way to be perceived as a technological leader. Although it has become commonplace to see robust Web sites fro manufacturers, especially those in the information technology field, few manufacturers use the internet in an innovative way as a support system for production (Gary, 1997).

However, new internet technologies are beginning to affect manufacturing immensely. The two-way nature of the link between manufacturing and the internet was described by Jay Puri (2002), Vice-President, Asia Pacific, Sun Microsystems, USA.! SS China is clearly the manufacturing powerhouse of the world, !" he explained, citing a disciplined workforce and low production costs as the main reasons for this. However, he also stressed that following China's accession to the WTO there will be pressures for wages to rise.! Slow costs will not be enough!" . Chinese companies must use the internet to connect to suppliers and customers worldwide and thereby increase their productivity, so higher wages won! |t mean higher costs.

!" So, how to use internet to gain managerial effectiveness? Just-in-Time managerial tool using internet technologies to create! SS feedback loops!" between a production line and a supply channel, manufacturers fine-tuned production schedules to reduce inventories, speed up time-to-market, and enhance product life cycles. By integrating internet technology to operations management, Chinese manufactories can enhance the competitiveness. Internet technology's mystery is fast transmission of information cross geographic constraint and time saving.

It makes customization easier and quick to attract customers! | order. As a consequence, the length of operation is shortened. No harassment on data interchange means the B 2 B conversation will go smoothly and this will greatly help Chinese goods go global. As the internet speeds up, through greater bandwidth provided by new internet technology, manufacturing integration will increase in sophistication. Designers will be able to pass around 2-D and 3-D blueprints, working simultaneously in many parts of the world. Engineers in widely dispersed locations will be able to control machine tools and see the results of their intervention in real time.

Managers will have remote, real-time access to video overviews of production lines, along with simultaneous data, and they will be able to control robotic production machinery from anywhere in the world. Moreover, more internet connection means more internet hardware are needed. In 2004 China's Internet products sales increased by 12% to about cG 1.04 billion. Demands on Switch increased 15.7% to about cG 0.53 billion and demands on Router increase 9.2% to about cG 0.37 billion. As the internet technology innovation period become shorter, the demand for new internet device in internet construction, rebuilding and upgrading will boost the manufacturing at its own rights. Entertainment After newspaper, broadcast, and television, new form of media which based on internet technology such as newsletter, stream media, BBS, and Blog are becoming the mainstream of media.

There are some likely impacts on the entertainment industry in this transforming. Firstly, the development of internet technology accelerated the reconstruction of traditional media. In the publishing industry, traditional media has to embrace the internet media in order to defend their position. Many Chinese newspapers went online because the number of readers shifted to internet. New media generate new business.

Synthetic traditional media offering new advertisement places while the specialist media firms offer pay-for viewing. However, there seem to be a mixed media era as some traditional media companies have stepped up purchases of internet rivals while some internet giant purchased traditional media. Secondly, the home networking and digital home entertainment will prevail in next 10 years featured by Video on Demand (VOD) and Interactive. China Netcom has offered its broadband users free view on its video database which has more than 10 thousands of movies. In the next 10 years, our living room will change and fully internet equipped. Multitask device will occur, such as!

SS Broadband TV!" will integrate video delivery services from both cable television and broadband sources, and receive and send email via TV. Peer-to-peer networks have caused a dramatic shift in the mindset of the music industry regarding the latter's willingness to move voip-based music services. With the profound impact that IP delivery mechanisms have had on music distribution models, companies are now pondering this same issue with regard to IP-based video delivery to the home. But beyond the rather prosaic question! SS will video content become Napster ized? !" (for example, copied and shared over broadband internet connections). IP video services can offer two fronts: 1) Multichannel offerings that will compete directly with current cable and satellite television offerings; and 2) a la carte movie services that will allow viewers select from a list of on-demand titles that are streamed to the home via broadband connections.

In fact, download music, movies are the common activities for internet users in China who share it freely with P 2 P software or download from the website. What will happen in the next 10 years is that sources will be more abundant and legal. High speed and more secured internet connection will make the internet entertainment as easy as using remote control to change the TV channels. At its core, this market is driven by the continuing consumer appetite for entertainment content and products. Based on recent research, there is a significant amount of consumer spending will be aimed at products and services that capture consumer demand for entertainment on their terms, that is, content anytime and anywhere within the home. New internet technology transforms PC's role as a multimedia!

Xor entertainment! X platform for the home. This will also in turn boost the PC industry by driving more PC sales. However, it will not a replace the old entertainment methods like the Hi-Fi system or Home cinema in the next decade.

It is accelerating consumer's appetite for new entertainment content rather than abandon the old one. Retailing Small businesses often have little financial fund to do marketing and their sales are normally constrained in their small sales term. China has huge small businesses that are best at manufacturing but are weak at expand their sales channel. Internet technology gave them the chance to go global and help them build closer relationship with suppliers and customers. For example, being wireless means the sales team is with customers and suppliers anytime and anywhere. Sales team's often traveling, signing up new suppliers, so it is important that they can get their email on the road, looking after customers and selling products is the bread and butter of our business.

With more time to spend with customers, the company can concentrates on the business of increasing sales revenue and developing new offers. For the supermarket, universal connectivity also means the ability to reach the various suppliers and help them to purchasing the goods at low price. Ample information on the internet helps you know exactly what the price is on the product and its producing cost. Even the shoppers now behaving quite differently from the way they did a generation ago. Many practice what is known as! SS Laser-shopping!" , entering a retail outlet to buy a particular product at a particular price, having already compared prices and quality online.

In China, as the economy growing, personal wealth is rapidly rising, the buyer power will be stronger. But according Chinese tradition, we like to compare prices in market places before we buy. Therefore the department stores will be fully online and showing its price to customers as well as competitors. This is a big challenge to retailing as the information transfer faster and count in seconds, the retailing strategy and tactic has to be changed frequently and innovative ly. Moreover, we have seen the ebay. com is so successful in global as well as in China.

Ebay. com and the Tao Bao. com are two biggest auction website who generates millions pounds every year. Smaller retailer went on the auction website and rent a e-shop to sell their inventory across the country. Education We are living in a truly fascinating time of change and promise. Within just a few years, rapid advancements in internet technology changed the way we teach and learn.

The most exciting aspect of this new technology is its potential as an educational tool for a new generation. Being on the cusp of this enormous cultural shift makes it a thrilling time to be a part of education community (Gates, 2000). In response to central government initiatives and the increased availability of learning content, schools are using IT solutions to make use of new and improved learning opportunities. Collaboration between teachers promotes best practice and reduces duplication of effort while classroom technologies, such as digital white boards, can make a significant contribution to helping pupils realize their full learning potential across the curriculum. Current broadband connection in China at 512 K's not enough to ensure the online learning will be comfortable and convenient. But in the next years, the price of high speed broadband connection will drop and a minimum of 2 MB internet connection will best cope with real time classroom recording and let people outside the school have the same education as in the class.

With the new wireless technology, it means your teacher will be with you anytime, anywhere. It is best for the working professional who can not give up job for further education. This in turn will contribute more productivity and effectiveness as the employees! | intellectual empowerment. Besides the contribution for traditional subjects, internet technology development also creates its own learning environment. New technology has new education needs. Every years, Microsoft, Sun and Cisco has massive follower who want to gain their certification by join their education and take exams.

A lot of internet specialist school emerged recently and this markets will keep growing. Telecom China has extraordinary growth rate of telecoms and the internet. By the year 2000 China had the largest number of fixed-line telephones in the world; in 2001 it overtook the United States to become the number one mobile market; it is expected to take the lead in broadband users, and in next decade it will be the global leader in terms of both online population and e-commerce. The 94 million users now are mainly using the internet connection from the two biggest Chinese fixed line telecom firms: China Telecom and China Unicom and wireless internet service are only available from two mobile telecom firms: China Mobile and China Unicom. China Mobile and China Unicom currently rank as the No. 1 and No. 3 largest mobile carriers in the world.

What role is playing by Internet technology in China relative to telecom businesses? Firstly, we have to recognize the Chinese telecoms! | structure before we analysis what the internet technology can change in the next 10 years. The accelerated telecom industry reforms during the past decade also completely changed the competitive landscape of the Chinese carriers market. Currently there are six major telecom carriers in China-China Mobile, China Telecom, China Netcom, China Unicom, China Rail com, and China Satcom, ranked in the order of market share. None of the carriers has a market share of more than 40%, and in each business segment, including the fixed-line market, at least two carriers are competing with each other. Secondly, let's look at the growth of Fixed-line, Mobile, and internet users.

The chart below shows that those three telecom market segments were growing constantly at similar trend. Internet technology plays as activator rather than a rival. Obviously, new internet technology will soon be adopted by those firms and the easy-to-use technology will accelerate the fixed-line business response to broadband demand and mobile business response to wireless internet demand. As the internet user will grow dramatically in the next 10 years, the Fixed-line and Mobile business will also boost. The future internet technology will enhance the mobility which in turn will accelerate the growth of Mobile users further. On the other hand, will the increased mobility beat the Fixed-line service?

The answer is no because the new technology like Voice-over-IP (VoIP) has low cost advantage in long distance transaction which can be seen as a add-on service to Fixed-line business. Cost saving of up to 85 per cent of VoIP service is not uncommon, particularly for long distance and international calls. Customers can access details of the calls they have made immediately, rather than waiting for monthly bill! Xand there is no quarterly line rental charge. Business users can benefit from a permanent always-on internet connection to make calls quickly and easily. Within the next decade, this new technology will rely on Fixed-line service in order to gain connection with majority non internet users.

Moreover, the high-speed broadband connection is operated on fixed telephone line. Some household will gain the second phone line for better connection quality. Therefore the demand for fixed-line will grow. Along with the internet technology innovation, the telecom firms will gain further growth in the future.

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