Information Technology Reference
In-Depth Information
is enabled by ICT. Market expansion has been remarkable. In contrast, the market
for home videogame devices has contracted.
The difference between the two exists in the way services are provided. Online
games depend on the communication network (i.e., the Internet), whereas video
games depend on the sales of devices and software. Users simply want enjoyment,
and as long as the quality is the same, they are indifferent to the devices involved.
The competitive strength of online games comes from its responsiveness to user
preferences. For instance, providers of online games survey their products 24 h a
day, allowing them to make adjustments is response to players' needs.
1.4.1.4 Distribution Process
ICT has made possible new processes of distribution. Third Party Logistics (3PL) is
one such case. With the development of the visualization of production, exchanges
of data became possible, first internally, then externally. Consequently, distribution
networks now carry a wide range of products from various companies.
In Japan, one of the popular services provided by online stores is the “Daibiki”
(pay on delivery) system. Under this system, shoppers buy items at an online store
and pay for them upon delivery. Payment collection is done by the delivery person,
and is made possible through ICT. Real-time parcel tracking and payment, in turn,
are made possible by a specifically developed terminal.
1.4.2 Service as the Source of Competitiveness
The following discusses services as the source of competitiveness. ICT produces
services in production and sales industries.
1.4.2.1 Values Created by ICT
Digitization has paved the way for products, such as large LCD TV sets, which are
types of commodity whose production used to be a competitive advantage of
Japanese corporations. Fine tuning is now no longer required in the production
process, because only one IC chip is needed to tune the TV. In the future, the
production of these general goods will ultimately become fully automated.
With regards values, the case of high-end TV is a noteworthy example, and in
terms of market share, Samsung is widely considered the industry leader. In fact, in
September 2012, Hitachi will stop its production line in Japan, and Panasonic has
also decided to stop producing high-end large TV sets. The advantages of Samsung
are said to be based on the foreign exchange rate. However, this may not be an
accurate view. It is product design, together with high quality, which gained
consumers' support for its line of products. For example, Hitachi's high-end TVs
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