Technology Policy for Hong Kong

1. Technology Policy for Hong Kong Drafted by Al Kwok Founding Member & Governor Savantas Policy Institute

3. The 2 Key Paradigms on Global Competitiveness

5. The Value Hierarchy (B.M.) Values/Profit Margins Applications (Mkt. & Standards) System Integration (Archit., …) Engineering (Design, ODM,..) Manufacturing (Process, OEM) Intellectual Property (IP) Outsourcing Trend Consumer recognition Core competency 50% 40% 30% Brand Innovation

9. The Value/Demand Chain IC H/W Platform IC S/W Platform (API, drivers, etc.) System Application Platform(s) Generic Reference Design (w/ other chips) Differentiated Application Designs Various Applications/Services Consumer Markets (End Users) IC Design houses System Integrators Service Providers For Consumer Electronics Market System Manuf.

12. Competitive Landscape, Evaluation & Recommendations

22. Savantas’ Vision for Hong Kong IT Development

24. IT Business Areas & Opportunities Moore’s Law and Metcalfe’s Law (acting on H/W and Network Platforms respectively) are fuelling on-going IT systems re-engineering for global improvements (changes) like magma shaping earth’s crust’s movements High-valued services with good business potentials Network environment given (by providers) or to be set up Data mining from public domain to add values Factors given or to be used “as is” – not to reinvent H/W components S/W & F/W Network Platform System (H/W) Platform Network Services/environments: Internet, cellular, WiMAX System Integration Protocols & Interfaces (Open stds. for reuse?) Content Layer Service Platform CRM, ERP, POS, etc. Applications (ASP) Consumer Services Public Domain Company Proprietary Bus. Domain Knowledge Instructions & Interfaces New ICs and Devices every 18 months or less

34. Savantas’ Vision on Software Outsourcing to Hong Kong/Mainalnd