Chapter 10 Achieving Continuous Competitiveness in IT‐Corporate and Country Challenge of the 21st Century

Abstract

IT is accorded a central role in Malaysian Industrial Master Plan 2 (IMP2), not only as the foundation for the future development of the manufacturing sector, but also, as the engine of development and growth of other sectors of the economy. To fulfill this central role, what should be the value of IT Products and IT Services? We have computed the necessary capital stock of IT Products at RM21.556 billion in 1978 prices, each unit of which is to produce five times its value in output in the year 2005, for a start. The targeted output of IT Services would be another RM 21.556 billion in 1978 prices, for a total of RM43.112 billion for IT industry in 2005. Bill Gates, Chairman and CEO of Microsoft Corporation, holds that Broadband Network Technology (BNT) indispensable to implement the Information Highway would not be available to most US homes for at least a decade. No matter when BNT arrives, an overriding question is: what will be the UTILIZATION of the exploding multimedia content of the Information Superskyway. How will people USE 1,000 times the current content, arriving 1,000 times as fast? The raison d'etre of the Information Superskyway is the Matrix of Learning, with Content as the rows, Context as the columns, and Learning as the Cells. The user has to identify his (her) context of use (entertain‐ment, education, enlightenment, edification). Investment in input (con‐tent) will depend on the answer to the question: By how much will the context be impaired by delay or deficiency of the content (data)? As the capacity of chips increases exponentially, the price drops dramatically — already it is down to $0.14 per megabyte! In the future, a holographic memory of the size of one's fists could hold the contents of the entire Library of Congress. With fast and furious developments in transfer and transformation of multi‐media content, how should one go about investing in IT to reap the bounty of BNT? We have no guarantee of success; we can increase the probability of success in the long‐run using seven IT investment Considerations/Criteria: (1) Choose the “Long‐run” that is realistic: Consider the odds against surviving one year, let alone 10 years; and choose wisely. (2) Choose Your Segment of the IT Industry: Are you most competent in: communications, computers, or content industries? What is your primary product: information, education, enlightenment, shopping, or e‐mail? (3) Choose Your CONCOL competitor/collaborator in the IT Industry: No matter how powerful you are in your chosen segment of the industry, it is almost mandatory that you collaborate with some other(s) in your own industry, and/or in another of the C3 industries. Bill Gates says: “companies must be able to partner on some projects and compete vigorously in others. Few companies in the computer and communications industries are purely friends or purely foes.” (4) Choose the Technology/Territory Area for CONCOL: How will the CONCOLs be formed and dissolved‐in: (1) Technology, (2) Territory? The choice of future technology would depend on the territory: How long would it take for the particular technology to develop a mass market? In IT parlance, should we back advances in: (I) transfer of data, or (2) transformation of data? (5) Choose the Technology Transformation Profile: Visualizing technology say, five generations ahead would indeed be quite hard and hazardous. But we would choose linear extensions of performance characteristics over Quantum jumps. However, PC industry experience suggests that each successive computer generation tended to provide Quantum jumps, little of the earlier models being useable with the new generation. (6) Choose the Technology Transfer Sequence: By establishing a relationship with the techtransferor over the long‐term, and scrupulously observing the mutually‐agreed conditions of techtransfer, the transferee can steadily increase its technical competence. (7) Fiercely Focus on the UTILIZATION of the Exploding Multime‐dia Content: To make IT win in the marketplace, the mere increase in the volume of content or the mere increase in the speed of its transmission is quite inadequate. What will make the difference is the learning that is made possible by the multimedia content and communication.

Citation

(1997), "Chapter 10 Achieving Continuous Competitiveness in IT‐Corporate and Country Challenge of the 21st Century", Asia Pacific Journal of Marketing and Logistics, Vol. 9 No. 1/2, pp. 160-172. https://doi.org/10.1108/eb010287