sw industry promotionsw industry promotion strategy and act in … · 2011-12-12 · i. overview of...

SW Industry PromotionSW Industry PromotionSW Industry Promotion Strategy and Act in KoreaSW Industry Promotion

Strategy and Act in Korea

KATSKATSMinistry of Knowledge Economy,

Korean Agency for Technology and Standards

I Overview of the SW Industry Promotion ActI. Overview of the SW Industry Promotion Act

II GS CertificationII. GS Certification

III. SW Process Quality Certification

IV. Strategies for Software Powerhouse


I SW Industry Promotion ActI SW Industry Promotion ActI. SW Industry Promotion ActI. SW Industry Promotion Act


Software Industry Promotion ActSoftware Industry Promotion Act

HistoryLaw was established in Jan 21, 2000

Amended by Act March 31, 2010

Composition

fSoftware Industry Promotion Act

Enforcement decree of the Software Industry Promotion Act

The purpose of ActThe purpose of this Act is to provide matter necessary to promote the software industry to build a foundation for developing the industry and to bolster theindustry, to build a foundation for developing the industry and to bolster the competitiveness of the industry for the ultimate purpose of contributing to improvement of the people’s lives and sound development of the national economy


economy

Software Industry Promotion ActSoftware Industry Promotion Act

The main contents of ActThe main contents of ActChapter 1 : General Provisions

Ch 2 C i f I f f d l f f i dChapter 2 : Creation of Infrastructure for development of software industry

Chapter 3 : Vitalization of software business

Ch t 4 K ft fi i l tiChapter 4 : Korea software financial cooperation

Article 11 : Promotion of Development of Software Technologies

Article 12 : Promotion of Software StandardizationArticle 12 : Promotion of Software Standardization

Article 13 : Quality Certification

Article 23 : Quality Certification of Software Process


Article 23 : Quality Certification of Software Process

II GS CertificationII. GS Certification


GS CertificationGS Certification


GS CertificationGS Certification

GS Certification StatusGS Certification Status

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010.8 Total

T ti 7 99 189 171 267 354 528 821 897 694 4 027Testing 7 99 189 171 267 354 528 821 897 694 4,027

Certification 6 27 31 54 132 219 203 270 231 146 1,319

Economic Effect

Maintenance cost saving thanks to improvement of function and remedy of shortcomings of SW products

Enhancement of SW development productivity with SWEnhancement of SW development productivity with SW development based on SW quality evaluation standards

Securing competitiveness in SW exports through higher SW lit


quality

GS CertificationGS CertificationEconomic Effect

Maintenance cost can be saved thanks to improvement of function and remedy of p yshortcomings of SW products

SW productivity can be enhanced with SW development based on SW quality evaluation standards

Quality Improvement and Marketing Effect

Competitiveness edge in SW exports can be sharpened through higher SW quality

Quality can be remarkable enhanced in a short time through the certified third party’s certification

Trust of customers can be earned through obtaining government-certified certification

Sales revenue can rise through differentiated marketing activities

The certified products can be reported in the press and uploaded in websites

Effect in terms of the SystemEffect in terms of the SystemThe GS certified products are granted with a higher priority for purchase

The New Software Award winning products should obtain GS certification


Pointes are added when the technical proposal for e-government business is evaluated

III SW Process QualityIII. SW Process Quality CertificationCertification


Software Process Quality CertificationSoftware Process Quality Certification

BackgroundBackground

Quality of SW emerges as a core factor affecting competitiveness of products andQuality of SW emerges as a core factor affecting competitiveness of products and services

In order to mitigate burden of overseas certification on SW process, it is required to develop certification system suit for domestic circumstances.p y

Characteristics

It is the system to evaluate and certify SW development process capabilities by analyzing SW development procedures and output management abilities, etc.

It aims to enhance a degree of completion of SW project based on process

It intensifies process capabilities with activities in terms of development and management

It beefs up domestic SW companies’ project performance abilities.

It prevents SW industry’s insolvency.


It prevents SW industry s insolvency.

It builds environment of overseas market presence for software companies.

Software Process Quality CertificationSoftware Process Quality Certification

SW Process Quality Certification CriteriaSW Process Quality Certification Criteria

• Administrative unitD ifi i

SW Process Quality Certification CriteriaSW Process Quality Certification Criteria

Organization

- Document management, certificate issuance, etc.• Certification deliberation unit

- Composition and operation of the evaluation team• Performance management unitPerformance management unit

- Evaluation result analysis and evaluation procedure improvement

d h i d i h ifi iStaff • Need to have 5 or more experts equipped with certification qualification

• Need to have step-by-step operation procedures for SW

Operation Procedure

process quality certification- Procedure for certification application and reception- Evaluation team composition and evaluation procedure- Certification deliberation method and procedure


- Certification deliberation method and procedure

IV Strategies for SoftwareIV. Strategies for Software PowerhousePowerhouse


BackgroundBackgroundIT Industry OverviewIT Industry Overview

Worldwide IT Industry Market(IT Spending) Domestic IT Industry Production VolumeWorldwide IT Industry Market(IT Spending) Domestic IT Industry Production Volume

219.8(KRW tril.)

15,703

11 671

HW(USD100 mil.)

180.0

110 97,666

10,346

7,714 7,229

8,651

11,671

SW

24.4

58.2

110.9

46.031.6

,

6,2905,982 ICT

Service

* Source : Gartner * Source : KAIT, KEA

17.910.700 02 04 06 0800 02 04 06 08

Worldwide IT industry market sees growth by USD3.4 tril., recording annual average growth 5.3% since ‘00

Recording USD1 tril in ’08 taking 1/3 of entire IT industry and showing rapid


Recording USD1 tril. in 08, taking 1/3 of entire IT industry, and showing rapid growth by 8.4% a year afterwards

BackgroundBackground

Importance of SW IndustryImportance of SW Industry

Value-added ratio of SW : 2 times higher than manufacturing industry

Employment creation effect of SW : About 1.6 times higher than Core of GrowthCore of Growth

manufacturing industry

Percentage of SW development cost of manufacturing industry increasedPercentage of SW development cost of manufacturing industry increased

Mingled with service industry Grow into new business model with high value-added ratio

Brain of IndustryBrain of Industry

Defect in SW causes fatal results in terms of national security, operation, and survival of companiesConnecti

ithConnecti

ith and survival of companies

- Suspension of financial transactions, stoppage of communication network, and malfunction of rocket, etc.

on with Securityon with Security


Vision and TasksVision and Tasks

Reshaping into SW powerhouse to secure global competitiveness

Tasks

Reshaping SW Technology development and

Increase in employment and

Strengthening utilization of newindustry development and

overseas presenceemployment and

investmentutilization of new

demands

Blue OceanBlue OceanRed OceanRed OceanFocusing on embedded SW, create

new SW industryFocusing on embedded SW, create

new SW industry

Blue OceanBlue OceanStrategiesCompose sound eco-system

through improvement of system of public market

Compose sound eco-system through improvement of system of

public market

Red OceanRed Ocean


Vision and TasksVision and Tasks1. Reshaping SW Industry Eco-system: Red Ocean Improvement1. Reshaping SW Industry Eco-system: Red Ocean Improvement

• Reshape large and SME transactions structure based on cooperation andReshape large and SME transactions structure based on cooperation and competition

• When bidding consortium with higher participation of SMEs, give advantages as to technology evaluation

• Try to introduce global practice

Innovation of public

sector

Innovation of public

sector• Try to introduce global practice

• Try to build advanced RFP system, etc.

• I l t t t f i ti• Improve law system to prevent unfair practices

• Activate contents direct dealing market, open wireless internet network publicly

• Establish autonomous market order through ‘SW cooperation committees’

Fair competition

in civil t

Fair competition

in civil t

g p

• Presentation for placing order for 10 large companies, purchase presentation , outsourcing company training, etc.

sectorsector

• Eradicate SW copyright infringement

• Support for analysis and development for countermeasures against cyber terror such as DDoS

Illegal copy prevention

and security enhancement

Illegal copy prevention

and security enhancement


y

Vision and TasksVision and Tasks2. Utilization of New Demands : Creation of Blue Ocean 2. Utilization of New Demands : Creation of Blue Ocean

• Beef up support for connection among manufacturing industry–system semi-conductor companies–embedded SW companies

• Utilize national defense R&BD as civil embedded SW’s Test-Bed

• Enhance domestic embedded SW, which is now 1~15% such as cell phone,

SW + Manufacturing industry

SW + Manufacturing industry

Enhance domestic embedded SW, which is now 1 15% such as cell phone, automobiles, etc.

• By developing fusion model, support for validity analysis and prototype building

• Activate new SW service(SaaS, Cloud Computing) and SW +

ServiceSW +

Service

contents business

• Inject KRW 1 tril. for three years into industry fusion area(Civil sector20%)

C d t WBS t i itt d t

Large project(WBS)

Large project(WBS)


• Compose and operate WBS steering committee and expert groups

Vision and TasksVision and Tasks3. Increase in Employment and Investment3. Increase in Employment and Investment

• Foster SM Maestro to raise the best human resources

• Designate SW employment training center by 10 business lines

Fostering capable human

resources

Fostering capable human

resources

• Creation of SW fusion course

• Improve SW vocational training course

• Develop and distribute curriculum for primary, middle, and high school focusing on trouble shooting

Enhancement of SW human

resources training

Enhancement of SW human

resources training high school focusing on trouble-shootingtraining systemtraining system

• Build ‘SW center’ having SW support function such as finance and intellectual property right, etc.

• By creating ‘SW M&A fund’, try to enlarge scale through M&AIncrease in

SWinvestment

Increase in SW

investment


• Find out and solicit venture capital and fund for support for SW SMEs


4. Technology Development and Overseas Market Presence4. Technology Development and Overseas Market Presence

I R&D i t t l d t l i d j t

1) R&D Investment Extension and Enhancement of Efficiency

• Increase R&D investment scale and promote large-sized project

• (‘09) KRW370 bil. (‘13) KRW670 bil.

• Gradual conversion from research center-centered R&D to company-centered R&D

(‘09) (R&D : Com : Univ ) 70:25:5 (‘12) 50:40:10

R&D investment

extension • (‘09) (R&D : Com : Univ.) 70:25:5 (‘12) 50:40:10

• Support application and utilization of SW technology into industry field

• SW engineering center establishment(’09)

extension

• Establish SW technology roadmap in reflection of integratedE h t f technology between HW and SW

• Support for enhancement in R&D investment through developing R&D tasks and

cooperating among ministries

Enhancement of

R&D investment

efficiency


• When performing government-led SW R&D, utilize already-developed SW


4 Technology Development and Overseas Market Presence4 Technology Development and Overseas Market Presence4. Technology Development and Overseas Market Presence4. Technology Development and Overseas Market Presence

2) Securing Overseas Market Presence Strategies

• Analysis on advanced market of US, Japan, etc. and Overseas y , p ,

development of area of superior position of Korean SW

• Overseas market presence through composition of committees

by countries and areas

Overseas

Presence

Strategiesby countries and areas

• Diversification of overseas presence channels by using global companies, etc.


Expected EffectExpected Effect

Shaping into SW Power HouseShaping into SW Power House

Reshaping SW Technology developmentp g

industry

Higher utilization ofStrengthening infra for

gy p

and overseas presence

Higher utilization of

New demandsemployment and

investment

Insufficient domestic Insufficient domestic demands and inactivedemands and inactiveInsufficient domestic Insufficient domestic demands and inactivedemands and inactive

Large com.Large com. Middle-standing com

Middle-standing com

GovernmentGovernment SW industry eco-system

SW industry eco-system

Company with a Company with a Quantity increase

and system-oriented Quantity increase

and system-oriented Vertical outsourcing Vertical outsourcing demands and inactive demands and inactive

investmentinvestmentdemands and inactive demands and inactive

investmentinvestment

Company with globalCompany with global

small manpowersmall manpower

Large andLarge and

policypolicy

Forming advanced system and fostering

Forming advanced system and fostering

structurestructure

Horizontal networkHorizontal network


Company with global leadership

Company with global leadership

Large and specialized company

Large and specialized company

system and fostering experts

system and fostering experts

Horizontal network structure

Horizontal network structure

Expected EffectExpected Effect

ExportUnit: USD100 mil.

ExportUnit: USD100 mil.

EmploymentUnit: 10000 persons

EmploymentUnit: 10000 persons

14

30

57 2

150

1457.2

2008 20132008 2013Middle-standing Com.

With Sales worth KRW100 bil

Middle-standing Com. With Sales worth

KRW100 bil

Global Company Unit: ea

Global Company Unit: ea

818

27KRW100 bil. Unit: eaKRW100 bil. Unit: eaUnit: eaUnit: ea

3


2008 2013 2008 2013

KATS KATS Korean Agency for Technology and Standards

sw industry promotionsw industry promotion strategy and act in … · 2011-12-12 · i. overview of...

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