3D CAD in Korea, Japan, Taiwan

Disclaimer: This document was created in 2000 and has not been revised since.

i. Chaebol Extranet SCM Integration Opportunity

The sheer size and dominance of the four South Korean superconglomerates creates an exceptional opportunity for a manufacturing extranet SCM implementation of an ASP CAD CAM platform in this market. The system would enable virtual interaction on a shared 3D product model by multiple levels within the conglomerate customer - subsidiary supplier - external; 3rd-party hierarchy through a transparent mix of conglomerate intranet/extranet and Internet technology. Such a system would fit naturally with the superconglomerate control-oriented culture and would provide real benefits in reduction of concept - shelf time. The emphasis would be on reduction of SCM friction, i.e. efficient information routing and access.

Key point: Significant revenue can be derived from successful participation within a conglomerate ecosystem. The experience gained in developing an SCM system within such a microcosm will be extremely valuable when applied to the less well constrained manufacturing conglomerates typical of Japan, US and Europe, which tend to have more open and independent supplier communities.

ii. Mobile CDMA2000/WAPI Extensions

There is likely to be an exceptional opportunity for a mobile extension service to an ASP CAD CAM service in the South Korean market. This is one of the few national markets in which mobile telecom subscription (27.5m) already surpasses its land-based counterparts (21.5m). Many ERP providers are already providing limited mobile extension sets of bill-of-materials, requisition and warehousing systems but a fully featured ASP CAD CAM offering has the opportunity to achieve a unique first with a mobile service in the e-manufacturing arena.

Key point: Despite current limitations in hardware and standards, the mobile ISP market is generally the fastest growing segment of the ISP market throughout Asia: most notably in South Korea and Japan, with growth of the mobile segment exceeding even that of broadband.

The initial service offering need only be relatively basic but in a market likely to be rapidly saturated with ASP solutions it is essential to achieve the competitive differentiator offered by a mobile extension set. There is a real opportunity to create the first such e-manufacturing mobile ASP.

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