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Published on February 27, 2008

Author: Xavier

Source: authorstream.com

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Contribution of the IT Industry to Economic Development:  Contribution of the IT Industry to Economic Development Hanan Achsaf President, Motorola Israel Ltd. Former President Israel Electronics Association Advisor to the Prime Minister Infrastructure Communications and Information July 16, 1999 “Today we are witnessing the early turbulent days of a revolution that may prove to surpass all previous revolutions”:  “Today we are witnessing the early turbulent days of a revolution that may prove to surpass all previous revolutions” Slide3:  More use of consumer electronics like TV sets, video recorders, video games, CD players, PCs, etc. Computer-based communications, information, commerce and entertainment services Internet, Intranet, Extranet usage spreading fast Globalisation trends and trade increase productivity and flexibility People spend more time on the move and want to communicate and be informed when travelling IT Developments Classifications For New Media Industry:  Classifications For New Media Industry Communications Communications facilities Household A/V equipment Telephone and telegraph equipment Broadcasting and communications equipment Radio and TV broadcasting Computing Computer equipment Semiconductors Electrical equipment and supplies Search and navigation equipment Content Newspapers, Periodicals, Books, Greeting cards Advertising Business services Motion pictures Libraries, vocational and schools Source: The Digital Economy, Don Tapscott Slide5:  Convergence trends Information Society services Convergence telephony data information/Internet broadcasting Technologies For The New Economy:  Technologies For The New Economy Slide7:  Multimedia Applications Video conference Internet applications Wireless Post Card and Electronic Business Card Internet ISDN/PSTN WWW Browsing Video Telephone E-mail News push Networked games Electronic commerce High-quality tailor-made appl. Standard ISDN package Multimedia electronic mail The Future Network Video terminal Application Servers Internet Service Providers Corporate LAN Remote LAN & Intranet File transfer Groupware E-mail Corporate info Slide8:  A View of the Future The “Portable Tool Set” Enabling Technologies - “Portable Tool Set”:  Enabling Technologies - “Portable Tool Set” PC Workstation Video/Still Camera TV/Web TV Fax Copier Scanner DVD/CD-ROM GPS Navigation Organizer Cellular/Satellite Link Answering Machine Electronic Dictionary Electronic Translator Single Portable Unit ~ $500 Slide10:  Technological solution for the “Tool Set” 10 Themes Of The New Economy:  10 Themes Of The New Economy Knowledge Digitization Virtualization Molecularization Internetworking Innovation Immediacy Globalization Discordance Convergence IT - A Major Engine of Economic Growth in Industrial Nations:  IT - A Major Engine of Economic Growth in Industrial Nations GDP Growth In The US 1995-1998 (Percent) IT contribute 35% of US economic growth and accounting for only 8% of GDP Comparison Of Multimedia Output 1996 and 2005:  Comparison Of Multimedia Output 1996 and 2005 Source: The Digital Economy, Don Tapscott IT Changing Productivity standards:  IT Changing Productivity standards Source: US Industry and Trade Outlook, 1998. US Computer Output Per Worker ($US terms) $K Foreign Employment By Global Companies:  Foreign Employment By Global Companies Source: World Investment Report 1997 (Percent of Total) New Media Industry Job Growth 1995-2005:  New Media Industry Job Growth 1995-2005 Source: The Digital Economy, Don Tapscott Million of Jobs IT Investment - Top 15 Industries IT investment per worker:  IT Investment - Top 15 Industries IT investment per worker Source: The emerging digital economy II, June 1999 Shifts To The Internetworked Government :  Shifts To The Internetworked Government Source: The Digital Economy, Don Tapscott Internet is showing the way into the new world!:  Internet is showing the way into the new world! World Wide Web Users:  World Wide Web Users Source: US Industry and Trade Outlook, 1998 Traffic on the internet doubles every 100 days !!!! New Era of Digital Economy:  New Era of Digital Economy The Internet - is evolving to an open network infrastructure and a unique venue for commercial opportunities @ Expanded customer base @ Cost effective delivery channel @ Efficient customer service Huge Increases In Sales Volume:  Huge Increases In Sales Volume Amazon.com - Went from $16m to $300m in sales between 1996 and 1998 Cisco systems - Went from $100m to $4Bn in internet sales over the same period Dell computers - Went from $1m per day over the net sales to $6m between Jan 1997- Jan 1998. Auto-by-tel - Went from $2Bn to over $10Bn in sale over the net between 1996-1998. How well Are We Measuring The Digital Economy ?:  How well Are We Measuring The Digital Economy ? E-Commerce - Retail sales transactions are not broken out by method of selling Firm/Industry - Not yet developed the micro data sufficiently outside of manufacturing Prices - New products, services and ways of selling are yet to be modeled. Slide24:  Israel Electronics Industry Profile 1998 Total Revenue - $8.0Bn Exports - $6.2Bn 47,000 workers are employed in the industry Sales per employee amount to $172,000 The Israeli electronics industry has 65% added value rate 12% of employees in the electronics industry are engaged in R&D $M Slide25:  Israel Electronics Industry Outlook Total electronics industry revenue is expected to reach $10 billion by 2000 Strong government support for accelerated growth of the industry Increased emphasis on technological education to close the human resources gap The Israeli economy will be increasingly technology-based $Bn Current Growth Path 2005 ~ $17 Bn (11% CAGR) Accelerated Growth Path 2005 ~ $25 Bn (17% CAGR) Slide26:  Israel Start-Up Phenomena Largest number of start-ups outside of US Highest concentration of start-ups outside Silicon Valley Expanding volume of venture capital - nearly $1.8 billion has been invested in 300-400 start-ups since 1992 In 1998, $150M of US venture capital was invested in Israel - more than in any other country outside the US Over 100 Israeli companies traded on U.S. & European exchanges. More than $1.5 billion raised from placements in 1998 Total Capital Raised by Year ($Million):  Total Capital Raised by Year ($Million) Total Capital raised is estimated at $2.87 Billion An estimated 60% have been invested already A total of $1.1 Billion is yet to be invested Capital Distribution by Industry 1998:  Capital Distribution by Industry 1998 Acquisition of Israeli Technology 1998:  Acquisition of Israeli Technology 1998 Elcint by GE valued @ $100M WaveAccess by Lucent valued @ $56M Teledata by ADC valued @ $200M Memco by Platinum valued @ $412M Lannet by Lucent valued @ $117M Class Data by Cisco valued @ $50M Mirabilis by AOL valued @ $407M Picture Vision by Kodak More acquisition of Israeli Technology 1996 & 1997:  Armon Networking by Bay Networks @ $36M Instent by Medtronics @ $200M Scorpio Com by US Robotics @$72M Orbot by Applied Materials @ $100M Opal by Applied Materials @ $175M Biosense by J&J @ $400M RadNet by Siemens @$75M More acquisition of Israeli Technology 1996 & 1997 Slide31:  Internet connectivity, multimedia, navigation, protection, service, telephony Internet Video Streaming Smart cards Voice and Handwriting Recognition Wireless LANs Automatic PCB quality control Bio imaging, bio informatics Bio sensors, Cardiac imaging Dental diagnostic and imaging Data Compression ADSL,HDSL - wide band com. Artificial intelligence Cryptography, security, encryption Firewall, Compression Data bases, data mining, Development tools, Semiconductor Design, Asic, DSP Digital imaging, printing Image processing, Audio, video E-commerce, E-mail, E-publishing Distance learning, training Leading Start-Up Technologies Slide32:  H.Achsaf@Motorola.com

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