Software Industry Booming At Shanghai : Software Industry Booming At Shanghai Prof. Dehua Ju
CEO of ASTI Shanghai
Vice President of SSIA
IAB Member of IEEE Software
At CeBIT 2004
Background: Great Opportunity For Development : Background: Great Opportunity For Development
Shanghai – A Special Time I : Shanghai – A Special Time I Shanghai Towards Her Goal Of Being The “World City” “Pearl Of The Orient”
Shanghai Economy Keeps Continuous, Rapid And Healthy Development , Remains Two-Digital Growth Continuously For More Than Ten Years
“A Change Every Year And A Great Change Every Three Years”
Shanghai – A Special Time II : Shanghai – A Special Time II Shanghai’s GDP Per Capita To Exceed $5,000 In 2002, $7,500 By 2007, Top 10,000 By 2010
Shanghai Won The Bid To Host World Expo 2010
Shanghai Is Well Known By Her “World’s Fair Of Architecture”, And Blending Of Eastern Traditional And Western Culture, A Fascinating And Prosperous Metropolis
Shanghai – A Special Time III : Shanghai – A Special Time III China -- Largest Markets In The World: Largest Telecommunication Market, No.1 Mobile Phone Market , Largest Household Appliances Market, 2nd Largest PC Market, 2nd Largest Semiconductor Market, 2nd Most Active Web Audience With 80 Million Internet Users
Currently 20,000 Foreigners From 126 Countries Are Working And More Than 80 Headquarters Of Multinational Companies Established In Shanghai “The Paradise For Adventurers & Business”
Dynamic And Flourishing Economy & Cultural Connotation Enable Shanghai “A Sleepless City”
Shanghai -- A Sleepless City : Shanghai -- A Sleepless City
World’s 2nd Largest PC Market : World’s 2nd Largest PC Market In 2003 PCs Sold Reach 13.3 M More 25-30% Annual Increase Since 1993
PC Into Home & Home On Internet – Not a Dream Home PC – 35% Total Market 10-20% Families in Main Cities Have PC At Shanghai 60.4% Already
32% Home On Internet
2003 e-Business Trade at Shanghai $6.1 billion
Becoming World’s 2nd Largest PC Market and Overtaking Japan’s
World Largest Telecommunication Market : World Largest Telecommunication Market Internet Applications Became A Main Driven Force 80 M Internet Users Based on Survey, China’s Web Audience – 2nd Most Active in The World, Surpassing Japan
268 M Mobile Phone Users – World No.1 Mobile Phone Market
By End Of 2003, 268 M Mobile Phone Users + 400 M Fixed Phone Users
World Largest Telecommunication Market
World’s Largest Consumer Market : World’s Largest Consumer Market World’s Largest Market of Household Appliances 100M Cable TV Users, 350M TV Sets, 70M VCD Players, 20M Learning Machines,
2003 DVD sales 15M, export 20M …
Potential Hot In Private Cars In 2010, Expected 10M Cars Sold A Big Opportunity For Embedded In-Car Devices
Expected China To Be The Second Largest Semiconductor Market In The World
China’s Booming Software Industry : China’s Booming Software Industry
Quickly Growing Software Market : Quickly Growing Software Market IT Infrastructure Paves The Way For Enterprise & Personal Computing
Chinese Software Market has grown at an average of 35% for the last 5 years, with no indication of slowing down
Total Sale has reached $24.2 Billion by end of 2003
It will be predicted Optimistically to Catch Up India by 2006 With a Sale of $30 Billion
Highly Growing China’s SW Market : Highly Growing China’s SW Market
9.6b 13.3b 18.1b 24.2b
China’s SW Outsourcing Business : China’s SW Outsourcing Business
2004 SW Market Estimation : 2004 SW Market Estimation
SE Professionals In China : SE Professionals In China
Leaping Development In Shanghai’s IT Industry : Leaping Development In Shanghai’s IT Industry Desktop PC 7.34M units 7 Times +
Notebooks 6.51M units 11 Times +
IC 3.96 B chips 51% +
IT Revenue $36.3 B 67.5% +
Software Industry SW Export
2000 4.8 B RMB $52M +94%
2001 7.3 B 52% + $102M +96%
2002 11.7 B 60% + $175M +72%
2003 20.1 B 65% + $265M +51.4%
Targets Specified In Shanghai Guideline For Vitalizing Software Industry 2003-2005 : Targets Specified In Shanghai Guideline For Vitalizing Software Industry 2003-2005 Revenue
2003 18 B 2004 26 B 2005 35 B
Software Export
2003 $300M 2004 $500M 2005 $800M
Enterprises By 2005
>5B 1 >1B 5 >100M 30
ISO9000 > 300 CMM Level 3 >30
Products 30 New SW Products/year
SE Professionals 41,000 100,000 by 2005
Why Shanghai ? : Why Shanghai ? High quality SW talents pool
Strong industrial & business base
Good foundation in IT applications
A well-informed center
Inherent cooperative network linked to the world and domestic areas
An open land from its past history, closer to western culture
Great Opportunities For Embedded Development : Great Opportunities For Embedded Development China have a very strong application & market basis for embedded development
Demands for embedded software development are growing explosively
In 2001 China’s embedded software sales exceed $580 million, about 14.5% of total software sales
According to a latest survey, 30% of software companies are being involved in embedded software development, additional 20% are planning to engage in
Driven By Government’s Promotion : Driven By Government’s Promotion Chinese Government Places Special Emphasis on Boosting IT Industry
The State Policies: “Prospering Country By Science & Technology and Education”,
“Industrialization Driven By Informatization”
To Turn Software Industry into A New Pillar Industry in the 21st Century
Driven Through Series Of National Projects : Driven Through Series Of National Projects Golden Projects Series
City Funded Information Port or Digital City Projects
e-Government
e-Enterprise e-Business / Reformation Of Traditional Industry
List the Development of Embedded Systems as One of Key Areas in High-Tech Projects (e.g. 863/973) and Major Projects for State Innovation Grants
Driven By Prop-Up Policy : Driven By Prop-Up Policy Government As An Industry Promoter
2001 The State Council Announced a New Preferential Policy (Document Reference No.18) to foster both SW & IC Industry: preemption of IPO, venture capital support, tax exemptions and reductions, software export promotion, guidelines of technology development, talented person system, bonus & stock option of core employees, qualification of software enterprises, and protection of IP rights
Supplement policies from local governments, e.g. Document No.54 of Shanghai Municipal Government
A Guideline For Developing Software Industry : A Guideline For Developing Software Industry A New “Guideline For Vitalizing Software Industry 2002-2005” by the State Council in July of 2002, A programmatic document
Aiming at improving the maturity and global competitiveness of China’s software industry through 15 breakthroughs.
According to the targeted plan, by 2005 China will have 800,000 SE professionals, $5 billion software export, some mainstay software enterprises with more than $600 Millions revenue, and a number of software products with own IP rights. The home-made software products will occupied about 60% of domestic market by 2005.
Construction Of Software Parks : Construction Of Software Parks To unite scattered strength and integrate advantageous resources, Chinese government has established 21 nationwide software parks
e.g. ZhongGuanCun Information Base at Beijing, Shanghai Software Park & Shanghai PuTong Software Park, Central China Software Park at Wuhan city, Dalian and Xian Software Park, as well as Ningbo International Software Park etc.
Comprehensive and meticulous planning, special policies and whole range of supporting services, plus billion dollars investment in infrastructure construction
2004 set up 5 National Outsourcing Bases: Shanghai, DaLian, ShenZhen, TianJin, and XiAn
Software Parks/Bases In Shanghai : Software Parks/Bases In Shanghai Shanghai PuDong Software Park (SPSP)
Shanghai S&T Jing City
Shanghai JiaoTong Univ./XuHui Software Park
Fudan Software Park
Eastern Software Park
ChangNing Software Park
CaoHeJing Hi-Tech Software Park
New Sailand Software Park = CaoHeJing + XuHui
Shanghai PuDong Software Park : Shanghai PuDong Software Park The National Software Industry & Outsourcing Base
“1 + 3” Model – 3 Sub-Parks
120K sq meter development space
1100 registered SW companies, including Microsoft
.NET Technology Center, Synopsys, Citibank SW R&D Center, SONY SW R&D
Center, TCS, Satyam,
Infosys etc.
Aiming at Top One SW Park
in China, $3B revenue,
50-60 K professionals
Towards A Mature SW Industry : Towards A Mature SW Industry
Mature Software Industry : Mature Software Industry Three Key Elements:
Mature SW Enterprises (Capability Maturity)
Mature SW Market (Open, Fair, Equal, Normative, Honest)
Mature SE Professionals
Strategies For Development : Strategies For Development Learning From Indian, but adopting a different model and strategy - a Balanced strategy for sustained development
‘Two-Legs Development’: Focus on both overseas & domestic markets, instead of Indian’s ‘Single-Leg’ Strategy
Stress on Balanced Export & Import: -- An attractive Point for International cooperation
Integrate Software & Hardware: China has a much stronger HW industry and market than Indian
Problems & Roadblocks : Problems & Roadblocks Illicit Copying, seriously constraining R&D motivation on software products
Lack of enough money for quick growth, thirsting for VCs and Loaning channels
West’s dominance in China’s SW market
Small scale & size of most Chinese software companies More 65% are small business, < 50 employees & < 5 years
Inadequate organization and management, with low productivity and quality
To Be More Mature & Competitive : To Be More Mature & Competitive By recognizing its own disadvantage, China’s software community is adopting active and realistic measures toward a mature and competitive software industry.
To develop with a quick pace, China shouldn’t return to a close-door policy. As a part of the information age and global economy, it should instead cooperate with other countries to attract more overseas investors, learn from their experiences, and absorb whatever technologies are needed to develop its own software industry. This includes developing and consolidating business partnerships with the outside world to reach the purpose of “prosperity for all”
To Join Global Family : To Join Global Family To join the global family, open up the outsourcing market channels and let more overseas clients know more about China’s potential and competitive advantages, the Shanghai Municipal Government has successfully sponsored the Global IT Outsourcing Summit 2003, Shanghai in last October, which will be an annual event since then
Siemens, Germany, was our invited guest
The main themes are:
-- Acquainting China, Acquainting World
-- Fusing Into Global Family
-- Seeking New Business Opportunities
-- Bridging Between Potential Partners
Shanghai Government Announced Ten Measures Promoting International SW Cooperation : Shanghai Government Announced Ten Measures Promoting International SW Cooperation Attract Foreign Investment to build a SW R&D and Sales center at Shanghai
Promote SW outsourcing business
Continuously support hosting the IT Outsourcing Summit
Strengthen two ways exchange with global IT industry
Help enterprises building ‘Leading in Home, Famous in World’ brands
Help enterprises to build overseas offices or bases abroad
Construct National SW Outsourcing Base at Shanghai
Build public information services platform
Encourage R&D efforts in software technologies
Give full play to software parks, SW Industry Association, Industrial consortiums etc.
To Unite Scattered Strength & Integrate Resources : To Unite Scattered Strength & Integrate Resources Encourage merge and acquisition of software companies to foster a group of backbone enterprises with large scale
Construct so-called “Common Services Platforms” for software industry, like disciplined software quality management, knowledge management in SE, component library etc.
Establish industrial consortium or alliance, e.g. the Software Offshore Business Union of Shanghai (SOBUS) at SPSP, converging 70 software companies and 7,500 software engineers under the banner
International Software Cooperative Development Alliance (ISCDA) : International Software Cooperative Development Alliance (ISCDA) Last year 4 Shanghai software companies (including ASTI Shanghai), all of which have long experiences in software services and product development, including overseas business, decided to form a software outsourcing consortium like Russia’s Fort-Ross Consortium, aiming at:
Integrating the existing strengths into a synergistic unit through complementary skills, resources, products and services
Providing clients with an one-stop shop and overall solution to meet whatever customers need
Enhancing marketability and capability in dealing with wide scope and complexity of outsourcing projects
ISCDA’s Unique Strengths : ISCDA’s Unique Strengths High level technical management team + 2100 SW engineers
Long & abundant development experiences, including offshore business, total annual revenue > $ 100 million
Wide domain knowledge & expertise to meet clients’ varied needs
Supported by leading-edge technologies and good software engineering background & quality awareness
One CMM level 3 Three ISO9000:2000
Strong capability in product design & development
ISCDA’s Expertise Domains : ISCDA’s Expertise Domains ERP/CRM HR/Payroll
Finance/Accounting Telecommunication
Multimedia Network Security
Data Warehouse Industrial Automation
Office Automation Porting/ Migration
Re-Engineering Software Testing
Internationalization/Localization
e-Business/e-Learning/e-Government
Consulting/Training/Technical Support
ISCDA’s Products List : ISCDA’s Products List ASTI:
CASE Tools Series: ISEE, FormCASE, FormNet, e-Process
Multimedia Series: HuiFeng MM Dictionary, PC Karaoke
Fudan GrandHorizon:
Network Security Products, BroadBand Multimedia Service Products, e-Learning Software Product
Huateng:
Tops Application Suite
BaoSight:
Enterprise Information System, City Information System
ISCDA’s Main Customers List : ISCDA’s Main Customers List IBM, HP, Lotus, SRA Japan, Tandem, Intel China, Microsoft China, Agilent Technologies, Morgan Stanley, CitiBank, Chase Manhattan, Advent, Shell Oil, Japan Airline, NEC，NTTDATA，SSD，CNC，CEC，DENSO，Taiwan Nanyang Automobiles, US Government (EPA, FERC, DOE, IRS, …), Shanghai Municipal Government, Golden Card, Green Cards, Shanghai Social Security Service Center, People’s Insurance Company of China, PuDong Development Bank, Mingsheng Bank, Huaxia Bank, Everbright Bank, Shanghai Bank, China Agriculture Bank, People’s Bank of China, Shanghai Science Land, China News Agency, China Unicom, China Mobile Communications, etc.
Towards International Standards in PM & QA : Towards International Standards in PM & QA Chinese software enterprises rush to ISO9000 and CMM-based SPI – A new hot spot
Government even promised to provide subsidy to CMM certification
Established the Shanghai Software Quality Consortium (SSQC), and the first SPIN & QAI chapter in China to promote a quality movement
So far Shanghai has 7 CMM level 3 software companies
By 2004 40 (?)
Through SWEBOK & PMBOK-based training to disseminate best SE practices
Introduce world recognized certified programs, e.g. PMI’PMP, QAI’s CQA, CSTE, CSA, IEEE-CS’s CSDP etc
Spread out International SE Code of Ethics Standard
Implement Talent Strategy : Implement Talent Strategy Based on such essential cognition of that future economic competition is, in the end, the competence race of human resource, especially in the software professionals
High qualified human resource development has been listed as a national strategic task and an important measure for that
To relieve the gap of HR supply and demand still existed in China from the root
To industrialize IT education and training in China, as India has done
An industry-oriented education infrastructure is really needed to compensate the deficiency and gap of university education
The software productivity and quality will be made as a national priority
Some Steps To HRD : Some Steps To HRD The Ministry of Education has started an ambitious national plan to establish 35 software engineering institutes in domestic universities since this year. Each institute will recruit 500 SE majors every year. Therefore, it means 17,500 additional software professionals each year will join in the future software talents pool
The Shanghai government has also worked out a plan to establish 5 big software training bases at Shanghai to reach a target of 100,000 software professionals by 2005 from current figure of 41,000
IC design training will be a high priority
To reach a high standard, since 2001 we have started to invite international famous experts visiting China to deliver their lectures to Chinese software community
IT Training Business In China : IT Training Business In China IT Training has became a new hot business
Based on Indian experiences, the growth of software industry will bring up a booming IT training industry in parallel
India government has unveiled an ambitious plan to reach $5 billion IT training export by 2005. The main market target is obviously China.
It seems that would be another imperative business race in China. Many Indian companies, like NIIT & APTECK, have being actively taken their actions to enter this market
In the meantime, Chinese experts appeal to build up China’s own NIIT and APTECH.
Talents Engineering At Shanghai : Talents Engineering At Shanghai China Is Carrying Out New National Strategy For Economic Development:
“Revitalizing The City Through Advancement Of Science & Education”
“Strengthen The Country By Talents”
“Industrialization Driven By Informatization”
Common Consensus in The Whole Country: “S&T Is The First Productive Force”
“Talents Are The First Resource”
New Call From The CPC Political Bureau : New Call From The CPC Political Bureau To Better Train and Utilize Talented Professionals
To Build Up Three Types of Talent Troops
To Foster a Batch of High Rank Experts Who Are Competent to The Needs of Socialist Modernization And Reformation And Opening Policy
A Proposed Framework For IT Talents Engineering : A Proposed Framework For IT Talents Engineering The Framework Proposed Can be Concisely Expressed As “Five Threes”:
Three Orientations
Three Domains
Three Layers
Three Bodies Of Knowledge
Three Centers To Be Constructed
Three Orientations : Three Orientations Oriented To Requirements From Economic & Industrial Development
Oriented To Educate Middle- & High- Level IT Professionals
Oriented To Development Of Advanced Technologies
Three Domains : Three Domains Software Engineering Professionals
IT Professionals For Informatization
Professionals For New Product Development & Innovation
Three Talent Domains Most Urgently Needed By Current Economic & Industrial Development
Three Layers : Three Layers For Individual Career Development
For Knowledge Upgrading Of Specific Enterprises, Work-Based Learning System
For Constructing Matured Professionals Required By Industries
Three Bodies Of Knowledge : Three Bodies Of Knowledge Software Engineering Body Of Knowledge (SWEBOK)
Body Of Knowledge For IT Professionals (IBOK)
New Product Development Body Of Knowledge (NPDBOK)
Three Supporting Centers : Three Supporting Centers Information Technology Transfer & Resource Center
Software & e-Business Engineering Center
e-Learning Center
BOK – The Framework Core : BOK – The Framework Core To Reach Scientific And Systematic Structure & Contents
As An Objective Criteria For High Quality Training
To Match The International Standard
A Beneficial Experience Barrowed From Abroad
Referred BOKs : Referred BOKs SW – Based On The Existed SWEBOK, PMBOK, CSQA/CSQE/CSTE BOK
IT – Reference To Similar Works In The World (e.g. e-Commerce BOK) to Formulate China’s Own IBOK
A Research Project On Developing NPD BOK and CTO BOK Is Undertaking, Supported By Shanghai Science Commission, Based On Two Similar Works From Abroad (e.g. PDMA, SCPD)
Action Plan At Shanghai : Action Plan At Shanghai ASTI Shanghai Has Reached an Agreement With Shanghai Sailand Software Park To Co-Found The IT Training Center – Aiming At China’s NIIT/APTECH
“Two Phase Strategy”: Building High Quality Fame & Brand First, Then Expanding Its Chain Nationwide Through The “3T” Planning
Strengthen: A Team Of Amphibious Experts With Long Experiences In Both Educational & Industrial Practices, Wide Global Cooperative Channels With World Class Experts
Available Courses : Available Courses Project Management
Requirements Engineering
OOAD With UML
QA & Software Testing Techniques
Agile Methods
Software Inspection
CMM-Based SPI
eSCM Model For Outsourcing Providers
e-Business & Enterprise Applications
Technology & Innovation Management
Related Certificate Programs : Related Certificate Programs Professional Qualification Program For Software Quality & Testing Engineers
Professional Qualification Program For Technology Management & CTO and CIO, A CTO BOK Has Been Defined
Cooperating With IEEE-CS, Introduce The CSDP Certificate And SWEBOK-Based Training
Introduce OMG’s Certificate For OO Techniques with UML
Establishing Common Supporting Platform : Establishing Common Supporting Platform It Is Recognized That Educating High Rank Professionals Cannot Only Rely On Training, Demanding Additional Supporting Services
We Have Established The Web Site, As an IT Transfer & e-Learning Center, Providing The Virtual Consulting Expert (CTO/CIO) Services
http://www.ITURLs.com
To Promote International Cooperation, Successfully Applying For Hosting ICSE2006 At Shanghai, A Great SE Event In China
Facilitate IT Transfer : Facilitate IT Transfer To build up a matured software industry, we recognized a urgent need to build up a technology transfer center in view of so quick IT development
In this direction, ASTI Shanghai has released an one-stop IT Resource Web site in China in last May. Connected with 23,000 URLs and 2300 International IT resources web sites makes it an high attractive knowledge base to Chinese readers to promote organizational learning and establishment of learning organizations in China
The web site covers all key IT topics, including SE management, e-business as well as embedded system development. This web site will become the most attractive IT web site in China and a new networked center for IT consulting and training Hit Rate has exceeded 2 M !
Innovation Is Key : Innovation Is Key Innovation is a key for survival in competitive market
To help that, the government has initiated a series of research projects in China, such as development of OS, middleware, components and security products
International cooperation is encouraged here due to beneficial to quickly absorb and digest advanced technologies
Taking a fancy to Chinese market and talents pool, many world famous IT enterprises, like Microsoft, HP, Lucent etc, have decided to establish their R&D centers in China, a new kind model for industrial development. Although some local software companies worry about such model as looking at inevitable talent competition
Protect IP Rights & Kernels : Protect IP Rights & Kernels To overcome the piracy problems, Chinese government is drawing up new IP protection laws and regulation policies
The local software industry associations will give their full play to monitor the protection of IP rights and kernels to create a much more robust and healthy environment for software development in China
Anyway, China’s software industry will march to mature finally
Competition vs Cooperation : Competition vs Cooperation Opportunity always means more competition and challenges. Today’s market is full contending as in the period of Warring States. No one can be easy to monopolize the whole market
To share as much benefits as possible, it should have a good strategy in a competitive market
Intuitively competition is a concept conflicting with cooperation. However, it is not absolutely exclusive. Particularly in a multiple-sides environment, some type of cooperation with common objectives could help improve the competitiveness
It is my view to appeal adopting a smart cooperation instead of endless competition
Cooperative Symbol : Cooperative Symbol
A Win-Win Demo : A Win-Win Demo
Why We Come Here ? : Why We Come Here ?
It’s a call of the times:
Seeking new opportunities
for win-win cooperation
See You At Shanghai ! : See You At Shanghai !
ASTI Contact : ASTI Contact ASTI Shanghai
5F, Bldg. 10, 471 GuiPing Road
CaoHeJing Hi-Tech Park
Shanghai 200233, CHINA
Tel: +86-21-64852743
Fax: +86-21-64853390
E-Mail: asti@public.sta.net.cn
http://www.asti-global.com
http://www.ASTI.com.cn
http://www.ITURLs.com
http://www.cnoutsourcing.com
Who Is ASTI : Who Is ASTI ASTI: Application Solutions & Technologies, Inc.
An International Software Company Registered in 1990 with its HQ in the US, Development Centers in Shanghai and Beijing, China
Invested by US venture capital
Motivated by Technology Challenges, Developing High Productivity CASE Tools, Aiming for Software Automation
Long Experiences in Offshore Business and Complex System Development
High Quality Professional Team
Independent Product R&D Capability
Integration of SE Principles & Best Practices
Customer-Oriented Service, High-Quality & Low-Cost Solutions
A famous information technology transfer center in China
First chair of SSQC and ISCDA