3. Application of Electronic IT in Asia

3.1 Application Level of Electronic IT in Asia
The difference in economic development level among different Asian countries and regions results in the difference in IT application level among them, which can be seen from the personal terminal devices in main Asian countries and regions. Please refer to the Table.

3.2 Enterprise Informatization
Enterprise informatization refers to a process in which the enterprise makes use of a series of modern technology such as electronics and communication technology in the deep exploitation and wide application of information resources to continuously improve the efficiency and level of production, management and decision making, thus increasing the enterprise's economic benefits and competitiveness. The informatization level of Asian enterprises as a whole is relatively low, but that of entire Japanese enterprises is comparatively higher. The Japanese enterprise informatization is mainly reflected in three aspects:
The first is the improvement of electronic IT in production process and flow. Japanese automobile industry was the first to adopt computer system. Toyota in Japan put forward the concept of Just-In-Time (JIT) in 1953, and extended to the whole company in 1961. At the beginning of the 1970s, Japan devoted major efforts to spreading the experience of Toyota. At the end of the 1980s, Japan Automobile Association worked out CIM research and development plans as well as CIMS plan. Japanese enterprises took their own informatization road by adopting the strategy of introduction, digestion, and absorption, which made Japan become the country of using CIMS most successfully in the world.
The second is the application of electronic IT in management. After the 1980s, electronic IT came into use in the aspect of enterprise management. At the beginning of the 1990s, office automation (OA) in Japan was ripe and the integration of OA system was realized. Before the 1990s, enterprise management information systems were mainly Management Information System (MIS), Decision Support System (DSS) and Office Automation System (OA), which made the enterprise internal services more expeditious and reasonable. While in the 1990s, it was inclined to Strategy Information System (SIS), which aimed at supporting enterprises to obtain the strategic competition advantages. Japanese enterprises pay special attention to the development and utilization of information resources. Almost all manufacturing enterprises with more than 800 employees have established information processing centers and information bases.
The third is the progress of enterprise informatization based on network. Along with the continuously extended application of IT and the development of Internet, Enterprise Resource Planning System (ERP) developed Supply Chain Management (SCM) and Customer Relationship Management (CRM), becoming the guidance for the promotion of enterprise informatization in other countries. There were already 33.6% of enterprises using Internet in 1997, and 58.7% in 1998. Japanese enterprises also made great efforts on the reformation of production and operation mode by utilizing ERP system. However, during the progress of informatization, some Japanese enterprises did not use the top-down integrated design method to modify the existing enterprise operation flow scientifically, so as to systemize the production and operation management. Instead, they made great modifications on the management software (such as changing the standard picture, structure and flow of software) based on the traditional customs, while adapting the advanced means to the past working habits. As a result, the advanced scientific management software lost its integrity and superiority, and its function could not be fully exerted. In addition, there are some differences between ERP and other Euro-American management methods and Japanese enterprise management modes and predominant ideas, such as Japanese lifetime employment system, which resulted that there are only a few of fully successful examples during the informatization of Japanese enterprises. There is certain distance between Japanese enterprises and Euramerican enterprise

3.3 E-Commerce Development in Asia
E-Commerce development in Asia is mainly concentrated in East countries. The economic and technological levels in East Asian countries are not uniform, and the bases and environments for network economic development are also different. However, the growth tendency for the network economy in East Asia as a whole is very obvious. For the average growth rate of Internet users, in 2000, it was 150% in the East Asia region, higher than 130% in Europe and 515 in North America. Network economy is becoming the new motive force for the development of Asian economy. In East Asia, the countries with better E-Commerce development are Japan and Korea. Generally speaking, the status for E-Commerce development in Asia is: Japan and Korea are in the lead; Singapore follows closely; and other countries follow up.
3.3.1 Japan
1. General situation of development
Japanese E-Commerce started later but developed with extremely high speed. According to the investigations done by the State Trade and Industry Department as well as Andersen Consulting Firm, the trading volume of B2C in Japan in 1998 registered was Yen 8.685 trillion, which was 0.02% of overall household expenses. In 2000, the E-Commerce market scale in Japan was Yen 47.8 trillion, among which the market scale for B2B transaction was Yen 21.6 trillion (about US$ 186 billion), and the market scale for B2C transaction was Yen 824 billion (about US$ 7 billion). By the end of 2000, in Japan, the transaction volume of E-Commerce made up 0.26% of the total commodity transaction volume, and it will increase to 4.1% by 2005.
It is expected that the B2C profits in Japan will reach to Yen 71.16 trillion by 2003. According to the estimation at that time, the B2C E-Commerce in Japan lagged behind that in America for 4~5 years, but it can be shortened to 3 years by 2003.
2. Strategy for E-Commerce Development in Japan
(1) Carry out E-Commerce promotion plan
As for the requirements of business circles, Japanese governments especially Japanese International Economic and Trading Department cooperation with private agencies positively, and carry out E-Commerce promotion plan in every commercial activity of Japanese economy. This promotion plan adopted the following principles: firstly, intellectual properties are shared by those governments and corporations, who launched this plan; secondly, the selection for participating corporations is an opening process and some foreign corporations in fact have already jointed in; thirdly, retailers support this plan by providing system services; Fourthly, each plan has a time limit of 2 years. Through the above-mentioned principles, the actual results for these plans are very good.
(2) Strengthen the budget for E-Commerce and support the development of E-Commerce enterprises In 1994, Japanese External Economic and Trading Department prepared a budget totally US$ 250 million, among which, the budget of US$ 80 million was assigned to 19 customer E-Commerce projects, and US$ 170 million to 26 company E-Commerce projects.
(3) Promote the process digitization between research department and production department
Japanese External Economic and Trading Department makes classification for E-Commerce: call the E-Commerce between businessman and customer as customer E-Commerce, and the E-Commerce-among businessman as company E-Commerce. For customer E-Commerce, there are more than 50 domestic banks in Japan planning to adopt Safe Electronic Commerce Environment (SECE) Association. SECE will realize the conduct of Japanese style business activities in a fictitious word. For company E-Commerce, Japan has already initiated a plan called CALS, to realize the process digitization between research department and production department.
3.3.2 Korea
1. General situation of development
According to the rough calculation made by Korean Industrial Resource Department, the E-Commerce market scale in 1999 was about W 9.19 trillion. According to the Statistics investigation on E-Commerce Enterprises in 2000 made by Korean Statistics Department, in 2000, the gross E-Commerce scale in Korea reached W 57.6 trillion, far above the predicted value of W17 trillion. Among all E-Commerce transactions, the B2B scale among enterprises was W 52.3 trillion, and B2C E-Commerce scale was W 73.37 million; while the export-oriented E-Commerce sale was W 4.4 trillion. The investigation indicated that among the industries selling products through networks, manufacturing industries made up the greatest proportions of 93%,among which, 38.1% was for metallurgical industry; 21.1% was for electrical equipment industry; 16.3% was for automobile industry; and 11.4% was for electronic components industry.
2. Future development trend
(1) The network shopping centers of large-scale and famous brand enterprises would become the principal part of B2C
B2C market is rearranging gradually towards the network shopping centers of large-scale enterprises or enterprises with famous brand products, which have an accurate and quick system of arrangement and delivery, and can get the trust of customers. At present, those large-scale enterprise with economic strength are making great efforts to establish system of arrangement and delivery. It is almost impossible for the dedicated network shopping centers to win in the competition with those on-line shopping centers possessing abundant funds and series of network stations of large-scale enterprises. Therefore, they are adjusting the strategic direction to reducing market sales expense and marginal profit and putting the counters for success or failure mainly on the aspect of specialization.
(2) Korean large-scale enterprise united together to strengthen the competitiveness of Internet projects
In Korea, 30 large-scale enterprise groups united together to establish an Internet project system with the aim of developing E-Commerce Main communication enterprises also published the aggressive mode of Internet operation. It was the first time for Korean large-scale domestic enterprises declaring formally to promote E-Commerce. In the board chairmen meeting of Korean large-scale enterprises, it was pointed out to draw up a plan for promoting the Internet project of different strata in the enterprises. In this meeting, the plan for cooperative enterprise informatization was also discussed. At the same time, the National Economic Council also worked out a plan of operation by a permanent congress, which will be participated by Ennterprise Federation on Internet Projects, civilian specialists, as well as relevant persons from production and resource departments.
(3) Governments and enterprises make joint effort to initiate a new situation of Internet projects
At present, both enterprises and governments are making efforts to initiate a new situation of Internet projects. The main communication enterprises such as Korean Telecomm, Hanaro Telecomm, Inc. and DACOM Corporation are turning the enterprise focal point to Internet engineering. For example, Korean Telecomm put forward the target of increasing the electronics allocation ratio from only 10% at present to 60%, and simultaneously introducing into ERP and CRM in an all-round way.
In addition, to vitalize Internet projects of enterprises, the governments is studying the plan of controlling the tax ratio being 5% of IT investment and increasing the treatment degree of consumption expenses caused by dinner-party expenses.
3.3.3 Singapore
At present, Singapore is one of the countries with the fastest development of E-Commerce in the world. In Yearbook of World Competitiveness in 2000, the infrastructure of Singapore E-Commerce was listed as the first in Asia and fourth in the world.
1. General situation
According to the statistics of Singapore Inforcomm Development Authority and National Statistic Authority, the E-Commerce income in Singapore had increased for several times in recent years. It was US$ 22.03 billion in 1999 and increased to US$ 51.1 billion in 2000. In 2001, the sales amount of Singapore E-Commerce will reach to US$ 61.27 billion. Among 9000 of Singaporean companies, 98.7% have already adopted Internet, including on-line selling and purchasing, as well as the network services in relation to government.
2. B2B services
Most of Singaporean E-Commerce is from B2B business. The income of B2B increased from US$21.93 billion in 1999 to US$ 50.44 billion in 2000, and it was expected to reach 59.76 US$ IN 2001. Financial and accountancy services constituted main parts of B2B E-Commerce income, accounting for 56% and US$ 28.51 billion. The industries with the highest growth rate are for communications, storage and telecomm, with a range of 265%. The next is the industries for wholesales, retail and manufacturing.
3. B2C services
Besides B2B, the B2C services in Singapore increased from US$ 109 million at the beginning to US$ 641 million in 2000. Please see Table 16 for E-Commerce transaction volume, B2B transaction volume and B2C transaction volume of Singapore in 1999-2001. It was estimated that by the end of 2001, the income of B2C would increase to US$ 1510 million. The industries promoting B2C on-line consumption are for financing, real estate, manufacturing, wholesales and retails.