The document summarizes Taiwan's economic development and transition to a knowledge-based economy focused on the software and IT services industries. It highlights Taiwan's leadership in many hardware industries and discusses how the software/IT services sector became an important new driver of economic growth. It also discusses entrepreneurship and innovation models used by Taiwanese companies to commercialize solutions and expand internationally, with a focus on the experiences of software company Syscom.

1. Software Industry Entrepreneurship & Innovation —Taiwan Experience James Liu President Syscom Computer Engineering Co. November 28, 2007

2. AGENDA 3. Entrepreneurship & Innovation Model 2.The Best e-Service Export of Taiwan 1.Main Driving Force for the Economic Development of Taiwan

4. Taiwan is No.1 or 2 in 18 Hardware Industries in the World Source ： MIC of III ， April 2006. PRODUCT WW. Market Share The First Place The Second place 1 Motherboard 98.4% V 2 WLAN NIC 87.0% V 3 Server (System & Pure MB) 85.6% V 4 VoIP Router 83.0% V 5 Notebook PC 82.5% V 6 DSL CPE 79.0% V 7 Cable Modem 79.0% V 8 IP Phone 78.0% V 9 PDA 73.4% V 10 VoIP TA 71.0% V 11 LCD Monitor 70.1% V 12 Switch 61.0% V 13 WLAN AP 56.9% V 14 CDT Monitor 50.7% V 15 Large Size LCD Panel 46.4% V 16 DSC 41.8% V 17 ODD 39.6% V 18 Server (System) 34.3% V

6. IT Service Industry is the Paradigm of the Future Worldwide Production Value in SW+IT Services and Hardware during 1997~2010 Source: INPUT, MIC of III, 2003. Worldwide IT market will be shifted to the software & information service industries Output Value of Software & IT Services Output Value of Hardware Unit ： Billion USD 1997-2010 Software & IT services CAGR=57% 1997-2010 Hardware CAGR=40%

7. Impact at the Beginning of the 21th Century Comparison of Average Wage per hour in East Asia Unit: USD/Hr 6.13 Source: IMD Competitiveness Yearbook, NASSCOM, MIC, DEC 2005. The main economic driving force has been globally moving to Asia-Pacific area to seek for lower labor cost, even from China to the Southeast Asia 0.75 0.43 0.35

11. SYSCOM Adopted CMMI Worldwide USA CASEMaker/ CA North-East Asia - DBMaker Japan Tokyo/Japan China - Ling-An (Xian) - Syscom (Shenzhen) (Shenzhen/ Beijing/ Shanghai/ Suchou) Europe DBMaker Europe Italy South-East Asia -Syscom(Thailand) (Bangkok) -Syscom(Vietnam) (Hanoi, HCMC ) Taiwan Global Logistic Headquarters CMMI Dashboard Project Management Base

12. AGENDA 3. Entrepreneurship & Innovation Model 2.The Best e-Service Export of Taiwan 1.Main Driving Force for the Economic Development of Taiwan

13. The Best e-Service Export of Taiwan (BEST) Motives Project Advantages Great potentiality for market growth in the target financial IS market Taiwan’s financial IS providers are the paradigm for target market Successful domain AP paradigm in Taiwan Product commercialization technology Capability in international marketing Allied with existing leading companies in Taiwan to construct total domain solutions Accelerate the project to be realized by BEST program IS providers in Taiwan start to globalize

15. AGENDA 3. Entrepreneurship & Innovation Model 2.The Best e-Service Export of Taiwan 1.Main Driving Force for the Economic Development of Taiwan

16. Entrepreneurship & Innovation Model 4. Internationalization of Marketing Channels 5. Put Emphasis on Quality Assurance 2. Earned Large-scaled Projects and Accounts 3. Commercialization of Solutions Innovative International Marketing Progress with Entrepreneurship 1.Distribution & Value-added Software Development

17. 1. Distribution & Value-added S/W Development Servers, Networks, & Storage Hitachi Radware Router Switch BW Control BRAS DHCP AAA IMS IDP SLB PON IDP AV NetCenter RD-III IDP AV P2P CDN Telecom & Domain Applications Secure corporate servers with HIDS firewall, VPN, and IPS Remote Dial-In User Service (RADIUS), with HIDS Desktops/laptops with HIDS and anti-virus software FTP server DMZ VLAN Web server Mail Server SSL VPN MAILsweeper for SMTP Switch Internet Security - Hardware & Software AXUS Thin Client Domain Applications

18. 2.Earned Large-scaled Projects and Accounts Central Trust of China Chinatrust Commercial Bank (Holding) Jih Sun International Bank (Holding) E. Sun Commercial Bank (Holding) Taitung Business Bank Taishin International Bank (Holding) Taishin Insurance Agency Joint Credit Information Center Bank of Overseas Chinese FINANCIAL Taiwan Stock Exchange Jih Sun Securities/Futures/Investment Masterlink Securities/Futures First Taisec Securities Taiwan International Securities Group Barits International Securities Hua Nan Securities/Futures Fuhwa Securities/Futures Capital Securities/Futures Polaris Securities/Futures Securities Shanghai Stock Exchange China CITIC Bank Bank of Communications China Financial Futures Exchange China Merchants Bank HUTEK MiTAC East China MKL Qinhuangdao City Commercial Bank Shenzhen Stock Exchange Wenzhou City Commercial Bank ICBC Thailand Overseas

19. 3. Commercialization of Solutions Outstanding Self-R&D Products & Solutions Service Channel Domain APP. Core Tech. SDPM (Real-time P.M. Platform based on CMMI) Financial i4M Stock Exchange Sys. EBTS Foreign Exchange Trading Sys. CreditGuard Futures Trading Sys. Options Trading Sys. VMaker PineReport ATMMOM BanTalk Telecom Voice Portal WANCenter NETCenter Syscom SIM Syscom GW Security Consulting & Total Solution E-government OA System Personnel Information Management Sys. E-police Information Management Sys. Image Online E-Document Solution Office Automation E-form Signing Sys. Healthcare/ Transportation HIS Electronic Medical Case History Sys. Voice Registration System HEMS Real-time Transportation Operation Manag. System e-Commerce m-Commerce v-Commerce DBMaker OLAP/OLTP IMAPS Solution Developing Tools SafeMaker ITAM

23. A Real-time project management platform with dashboard on SDPM that developed by Syscom SDPM– Our CMMI ML5 Appraisal Key Base

24. SYSCOM GROUP has installed the CMMI Project Management Platform-SDPM

25. SYSCOM Adopted CMMI Worldwide USA CASEMaker/ CA North-East Asia - DBMaker Japan Tokyo/Japan China - Ling-An (Xian) - Syscom (Shenzhen) (Shenzhen/ Beijing/ Shanghai/ Suchou) Europe DBMaker Europe Italy South-East Asia -Syscom(Thailand) (Bangkok) -Syscom(Vietnam) (Hanoi, HCMC ) Taiwan Global Logistic Headquarters CMMI Dashboard Project Management Platform for our Customers Worldwide

26. Conclusions 18 items of No.1 or 2 for their great market share in the world Taiwan Miracle A good beginning in the 21 th century at the IS & Software Industries India Miracle Learning from each other; it’s the reason why we’re here to realize the “ ASOCIO Miracle”

27. Thanks to Your Participation.

28. 071120-ASOCIO-ME-CEOslides-v1-0.01 Presentation by, Mr Dan E Khoo Vice President, Business Strategy and Transformation Division, Multimedia Development Corporation (MDeC) MSC Malaysia National ICT Initiatives

30. Vision 2020: Malaysia to be K-based Economy by 2020 2020 GDP per capita Time TO ACCELERATE K-BASED ECONOMY: Requires Enhancing of Knowledge Infrastructure Key Enabler: Physical Infrastructure August 1996 – MSC Malaysia was launched Agriculture- based Economy Industrial Production Economy K-based Economy Key Value Creating Platform : Knowledge Infrastructure

33. MSC Malaysia Milestones & National Rollout Cyberjaya Central Corridor PHASE ONE: 1996-2003 Successfully create the MSC 1 Corridor Comprising 5 Cybercities PHASE THREE:2010-2020 Transform Malaysia into a Knowledge society National Transformation enabled By MSC Malaysia environment All of Malaysia Central Corridor Eastern Corridor Sabah Sarawak Southern Corridor Cyberjaya PHASE TWO: 2003-2010 Grow MSC into a global ICT hub National Rollout comprising Cybercities and Cybercentres Web of corridors Northern Corridor

34. Impact of MSC Malaysia As of 9 th Nov 2007 MSC Malaysia Status Companies 1,947 Revenue RM12.99 b p.a Jobs Created 63,000+ Export RM 4.08 b p.a R&D Expenditure RM 814 mil MSC Malaysia Status companies listed on MESDAQ 52 IP/Patents registered 1,180

35. ICT Industry Development - Technology Focus - MSC Malaysia Status Companies by Technology Cluster: Operational as at Nov 9th , 2007 Cluster Awarded* Operational** Application Software (AS) 828 699 Mobility, Embedded Software & Hardware (MeSH) 425 330 SSO 135 116 Creative Multimedia 211 157 IBB 264 168 IHLs & Incubators 84 78 GRAND TOTAL 1,947 1,548

41. MSC Malaysia: Rapidly Growing Exports Across Global Market Over 300 MSC Malaysia status firms exporting to All Major Markets

43. NZ Smart School Study United Arab Emirates - Electronic Government Strategic Plan workshop Kingdom of Bahrain - Kingdom Of Bahrain National Card Consultancy Syria – Decision Support System Consultancy for Prime Minister Dept. Kingdom of Saudi Arabia, Islamic Development Bank (IDB) – IT Strategy Model for 53 member countries Kingdom of Saudi Arabia - Medina E-Government Project, Knowledge Economic City Medina State of Kuwait – Smart Card Project Consultancy for The Public Authority for Civil Information Bangladesh – Technology Park Implementation Study GCC – Common Guidelines for Interoperable GCC National ID Schemes Iran – National E-Comm Strategic Roadmap MSC Malaysia Global Experience Lebanon – Smart Card Project

44. MSC Malaysia Collaboration with ASEAN member Countries Smart Card Projects: Indonesia, Thailand Education Content & Pilot Smart Schools: Myanmar, Laos, Cambodia, Vietnam The Department Of Trade And Industry Of The Republic Of The Philippines Consortium Information Technology And Multimedia Indonesia MDeC (E-BUSINESS) & E-National Task Force Of Myanmar Eco-Cyber Park Government of Brunei

49. THANK YOU visit www.msc.com.my

50. IT Policy in Japan ~METI’s IT policy facilitating the usage of Information Technology by SMEs~ November 28.2007 Takeo NATSUME Director Information human resource office Commerce and Information Policy Bureau Ministry of Economy, Trade and Industry

53. Amount of the investment for IT of the big enterprise of the capital 10 billion yen over is an increasing tendency. （ million yen ） An investment for IT of the small and medium enterprise is low. （ Source ）” Information Processing Census,” METI (09/2008)

55. High customization rate compared to USA High customization ratio and IT investment costs Japan SCM USA SCM Japan SCM USA SCM 100% in-house development Mixed development Use as is Supply Chain Management Customer Relationship Management 100% in-house development Mixed development Use as is

56. High IT investment costs compared to West Development cost per software function Ave.2,000/function “ 420US$” Ave. ¥23,000/function “ 230US$” Ave. ¥34,000/function “ 340US$” Japan USA EU High customization ratio and IT investment costs

57. Governmental IT Policy (IT Strategic HQ) New IT Reform Strategy (2006) ■ Japan’s IT strategy is promoted by all governmental offices and spearheaded by the IT Strategic Headquarters, chaired by the Prime Minister. ■ METI Minister serves as Deputy Chairman of IT Strategic HQ and plays an important role in its activities. Objective Building IT foundations (Make Japan advanced IT nation in 5 years.) Important areas (5) ・ Building of network infrastructure ・ Building environments for e-commerce ・ Materializing e-government services, etc. Objective Promoting IT use Important areas (7, technological competitiveness) ・ Medical care: e-charts, medical care billing ・ Governmental services: Online national/local services ・ Technological competitiveness: Building new IT infrastructure (Ubiquitous networks, developing IT human resources) etc. Objective Structural Reforms via utilization of IT (Completion by FY2010) Important areas (15) ・ Medical care reform via use of IT ・ Eco-friendly society driven by IT ・ World’s most convenient and efficient online governmental services ・ Strengthening business cooperation by establishing IT management ・ World’s most secure IT society ・ Developing world-class IT human resources etc. IT Strategy HQ Members Chairman : Prime Minister Deputy Chairman: Minister of State for Science and Technology Policy Chief Cabinet Secretary METI Minister, MIC Minister Members: All ministers excluding Chairman and Deputy Chairman, Advisors (8) Other (2) President, Council for the Promotion of Regulatory Reform President, IT Reform Strategy Evaluation Council of Experts e-Japan Strategy (2001) e-Japan Strategy Ⅱ(2003)

58. 世界最先端に向けて重点的に取り組むべき主な施策（案） Pursuit of IT Solution power for Structural Reform Structural reform of healthcare industry through IT Solutions - Overcome the challenges faced by Japanese society by using IT Solutions ◆ 100% complete on-line processing of medical care expense receipts Environmentally-friendly society fully using IT Solutions ◆ Efficient energy management, recycling and distribution through IT Solutions The world’s most advanced safe and reliable IT society ◆ Damage mitigation by sharing disaster information via terrestrial digital broadcasts The world’s safest road traffic environment ◆ T raffic accident prevention through Intelligent Transport system The world’s most convenient and efficient electronic government ◆ 50% or more actual use of on - line applications and filings Enhance business competitiveness using IT Solutions in management ◆ Efficient collaboration within and among companies through IT Solutions Prosperous lifestyles throughout people’s lifetimes ◆ Increase d use of telecommuting and e-learning Priority IT Measures

59. METI ’ s IT Policy Implementation of the “New IT Reform Strategy”, “ Economic and Fiscal Reform 2007”, and the “Economic Growth Initiative” ● Strategic technology development ・ Green IT Project ・ Dream Chip Project ● Product safety initiatives / environmental measures ● International trade policy / Home appliance distribution policy ● Promotion of innovation ・ Jaspar Project ・ Information Grand Voyage Project ● High-level IT human resources development ● Market innovation ● IT use by SMEs businesses ・ IT use via SaaS ・ Tax incentives ● Increasing IT investment ● Electronic tags, electronic commerce Hardware Software Promotion of IT use Promotion of electronic government Information security / Privacy protection Home appliance recycling

60. 1. Promoting IT use by SMEs businesses 【課題】 ● 特に中小ユーザ企業における IT 活用の遅れ 2. Improving efficiency of IT investment 【 Issues 】 ● Use of IT is late particularly with small to Midium businesses. 【 Policies 】 ● The “IT-Keiei Ouentai” ● Promote IT use with SMEs businesses via “SaaS” (Software as a Service). ● Strengthen competitiveness via tax incentives for introducing IT. 【 Issues 】 ● Customized systems common compared to USA and Europe 【 Policies 】 ● Improve efficiency in IT investment via focus on core businesses. 【課題】 ● 特に中小ユーザ企業における IT 活用の遅れ 3. Building infrastructure for electronic tags and e-commerce 【 Issues 】 ● Promotion of information-sharing beyond boundaries of businesses and industries essential towards finding solutions to social issues such as the environment and safety concerns 【 Policies 】 ● Build common infrastructure for using electronic tags and e-commerce. Issues and Policies for Promotion of IT use

62. Training opportunities ・ Manager training ・ CIO training ・ 1-day training ・ Training by sector, etc.

63. ・ SMEs IT Management Award ・ Presentations on web pages etc Collecting/Disseminating examples of best practices

64. Support in coordination with local communities Local IT management support teams *(Local governments & Private sectors support for introducing IT via IT vendors, banks, etc.)

65. User purchases information processing service. Service vendor handles operation and maintenance . Merit ① Less cost burden than earlier information systems Merit② Little need for IT know-how or IT-versed personnel - Introduction, operation and maintenance costs are low because common services are provided by information processing firms. - Because common services are provided, user businesses have little need for specialized knowledge or personnel . Promote IT use via SaaS with small businesses which lack adequate financial resources Small and Medium-Size Businesses via SaaS Application software Customer manage-ment Personnel manage-ment Finance manage-ment Company A user Company B user Internet

66. Key Goal Indicator We have to achieve the following targets by 2010, -To raise the percentage of enterprises utilizing IT to the world’s highest levels; -To Increase the percentage of some part of SMEs utilizing IT as fundamental businesses tools to 60% or more; -To establish an infrastructure for EC, electronic commerce, harmonized internationally and increase the percentage of its usage to 60% or more; -To Increase the percentage of usage of EC by SMEs to 50% or more of total trade partners by FY 2010.

67. M E T I Ministry of Economy, Trade and Industry Thank you very much

68. Building Asian Multinationals Protection to Domination Deepak Ghaisas Vice Chairman November 28, 2007

69. Presentation Path: Protection to Domination Seven Strategic Steps Our Experience at i-flex Current Strengths

70. Asia - Strong economic fundamentals

71. Rise in Indian Multinationals Wipro i-flex Ranbaxy Titan

72. Protection to Domination

73. Succeeding to become MNC risking competing failing leading Value Differentiation Efficiency & Productivity

75. New Business Metric value-to- time SPEED INTEGRATION INNOVATION

76. Capability Platform to be Dominative M&A Financing & Risk Mgt. Capital Productivity Statutory Mgt. Skills & Processes Domain Knowledge Global Communities Cross Border Cultures IPR Branding Franchise

77. Seven Strategic Steps

78. Seven Strategic Steps Domination Current Business Existing Competition Arena Step out into New Competition Arena Existing Geographies Expand into New Geographies Existing Industry Structure Acquisition/ Consolidation within current Industry Existing Value Delivery System Innovation Of value Delivery System Existing Products & Services Innovation Of Products & Services Maximization of Existing Customers Attracting new Customers

79. Our experience at i-flex

80. What we followed at i-flex

81. ‘ FLEXCUBE’ - A Global Brand in BFSI No 1 for last 5 years – from 2002 to 2007 Get the unfair advantage

82. Serviced 700+ customers across 130 countries Cyprus Malaysia Ghana Netherlands India Nigeria Jamaica Singapore Japan South Africa Kenya Sri Lanka Kuwait Uganda London Zambia i -flex Presence Support Presence Subsidiaries & Offices : Amsterdam Bangalore Chennai Mumbai US (New Jersey,New York) Pune Singapore Presence : Australia Japan Kenya Nigeria South Africa UK UAE Zimbabwe Customer Locations Globally Diversified Revenue

83. Growing Global Brand Recognition

84. Thank You [email_address]

85. Thank You Deepak.Ghaisas@ iflexsolutions.com

86. Case Study of Disney