Internet technology boost china in next 10 years Essay

This essay has a total of 3364 words and 16 pages.

Internet technology boost china in next 10 years

INTERNET TECHNOLOGY DEVELOPMENT BOOST CHINA FURTHER
A 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 ¢G851,072 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¡Xexamining 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.

ƒB 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,
802.11g, 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.

ƒB Reliability, Security of Internet
The internet will enable an era of change for Chinese society and Chinese economic
development, said Lu Zhicheng (2002), President, Tsinghua Tongfang, China, ¡§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 ¢G100 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.

ƒB 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¡Xthe
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. ¡§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.
¡§Low 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 ¡§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 B2B 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 ¢G1.04billion. Demands on
Switch increased 15.7% to about ¢G0.53billion and demands on Router increase 9.2 % to
about ¢G0.37 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 ¡§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 to IP-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 ¡§will video content become
Napsterized?¡¨ (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.


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