The E-Convergence of Finance and IT,Industrial Engineering 9753019 Lee, Seung Ki,Introducing Convergence of Finance and IT Concepts / Enablers / Case,What is Convergence?,The merging of previously separated fields,What is E-Convergence?,The merging of previously separated fields by implementing Info. Technology,Convergence of IT & Finance,FINANCE: Managing Risk,IT: Managing Information,Risk is about processing information: Point of Convergence,Introducing Convergence of Finance and IT Concepts / Enablers / Case,Dynamic Enabler of Finance and IT Convergence,Globalization,TECHNOLOGY Deregulation Better education Greater spending on research Encouraging risk-taking,Tax rates Social policies Labour-market institutions Corporate finance and governance,Imperative of international competitiveness :Everyone want to get rich, at least not fall behind,Dynamic Enabler of Finance and IT Convergence,Dynamic Unabler of Finance and IT Convergence,Security,Privacy,user trust without consumer trust, acceptance and use of the service will not grow fraud detection fraud results in reduced margins and growth restriction privacy protect user data authentication verify identity of the user before allowing access integrity ensure data cannot be changed without detection non-repudiation proof the user carried out an action,Source: www.network365.com,Introducing Convergence of Finance and IT Concepts / Enablers / Case,SK Telecom - MONETA,One-Stop Safely Conveniently Simply Abundantly,Source: www.moneta.co.kr,SK Telecom - MONETA,Environmental Analysis Porters 5 Force Model,Environment Analysis : Porters 5-Force Model,Current Rivalry (internal/external) Telecommunication firm,Entry Financial firm Telecommunication firm,Buyers Corporate customer Personal customer,Suppliers IT technology industry Reduce barriers to entry,Threats of Substitutes Industry becomes efficient,Government Ministry of Information and Communication Ministry of Finance and Economy,Current Rivalry (internal/external) Telecommunication firm,Entry Financial firm Telecommunication firm,Buyers Corporate customer Personal customer,Suppliers IT technology industry Reduce barriers to entry,Threats of Substitutes Industry becomes efficient,Government Ministry of Information and Communication Ministry of Finance and Economy,Buyers,Buyer,Customers enjoys improved bargaining power,2/3 of the household has Internet connection Real-time information is available Reduced switching costs,Telecommunication Industry,Boundary is unlimited At same price better service Global opportunity to make investment,Financial Industry,Vendors,Current Rivalry (internal/external) Telecommunication firm,Entry Financial firm Telecommunication firm,Buyers Corporate customer Personal customer,Suppliers IT technology industry Reduce barriers to entry,Threats of Substitutes Industry becomes efficient,Government Ministry of Information and Communication Ministry of Finance and Economy,Vendors,High technology turnover ratio more the uncertainty,Fast Speed of Change High Initial Cost Diverse Possibility High Cost of Failure,Telecommunication Industry,Core competency is imitable Cost of Information is going down,Financial Industry,Current Competitive Dynamics,Current Rivalry (internal/external) Telecommunication firm,Entry Financial firm Telecommunication firm,Buyers Corporate customer Personal customer,Suppliers IT technology industry Reduce barriers to entry,Threats of Substitutes Industry becomes efficient,Government Ministry of Information and Communication Ministry of Finance and Economy,Current Competitive Dynamics,Difference between competitors are small imaging is the key,Competition among competitor are about price Potential of global scale,Telecommunication Industry,Low entrant barrier New medium is rendering incumbents obsolete M&A becomes prevalent,Financial Industry,Government Regulation,Current Rivalry (internal/external) Telecommunication firm,Entry Financial firm Telecommunication firm,Buyers Corporate customer Personal customer,Suppliers IT technology industry Reduce barriers to entry,Threats of Substitutes Industry becomes efficient,Government Ministry of Information and Communication Ministry of Finance and Economy,Policy Issues of Ministry of Information and Communication (1/3),Supporting the technological growth,EMS is an interim technology with a window of opportunity reaching to 2004 Java capability is already being added to a range of handsets Polyphonic ringtones will become familiar features of new phones during 2003 Color screens will become the norm by 2005 Integrated digital cameras will become popular, and add-ons will be compatible with other handset models The ability to download and play digital music will be increasingly popular Location positioning will continue to be a niche feature of phones in the medium term,Source: www.analysis.com/default.asp?m=home_nov&mode=article&iLeftArticle=1085,Provide Standards,Policy