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The Global Knowledge Network is a new initiative rooted in one of the most significant technological and economic trends of the past decade, globalization. The Network will study these trends and their effect on Silicon Valley, at the same time leveraging relationships between technology leaders in our Valley and other regions around the globe. The Network will also create a cross-boundary "network of networks" spanning our region's many diverse entrepreneurship organizations. More detailed information about the Global Knowledge Network can be found at http://www.jointventure.org.

The kick-off event will feature a panel addressing Silicon Valley's emerging knowledge networks and the future of IT as well as time for networking. The keynote speaker will be William F. Miller, Co-Director, SPRIE and Professor Emeritus at the Stanford Graduate School of Business. Joining him as panelists on the program will be Simon Cao, founder of both Arasor and Avanex, with 20 years experience in optics and communications and Ajay Shah, who founded of SMART Modular Technologies, and served until recently as President and CEO of the Technology Solutions Business Unit at Solectron.

William F. Miller is the Herbert Hoover Professor Emeritus, Graduate School of Business, Stanford University, and President Emeritus of SRI International. He also chairs the board of Borland Software Corporation, and has previously sat on the boards of Wells Fargo and the Fireman's Fund. He currently serves on the boards of Sentius Corporation, Data Digest Inc., and Handysoft USA.

Simon (Xiaofan) Cao is Founder, President and CEO of Arasor Corporation, and has twenty years of experience in optics, communications, and signal processing. He was the founder of both Avanex Corporation and Oplink Communications, Inc.

Ajay Shah founded SMART Modular Technologies in 1988. Until recently he served as President and CEO of the Technology Solutions Business Unit at the Solectron Corporation.

Schwab Residential Center, 680 Serra Street, Stanford University Campus

William F. Miller Professor Emeritus Stanford GSB
Simon Cao Founder and CEO Panelist Arasor, Inc.
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Technology product companies are characterized by rapid product introductions and the need to stay ahead in each product generation. If a company stumbles and loses its lead in one generation of product, it can be fatal. Technical support is as important as unique product features to win and retain customers. Yet this function is often an afterthought for many companies. While developmental engineering and product creation are exciting, providing strong support for such products is critical for a company's success in the market place.

With an overall shortage of engineers in the United States, companies can work with specialized, dual-shore based technical support companies to provide this very critical function to customers on an ongoing basis.

Somshankar Das brings twenty-nine years of experience in public and private management, high technology, and venture capital businesses to his role of president and chief executive officer of e4e. Prior to joining e4e, Som was a general partner with Walden International, where he specialized in semiconductor, software, IT service, and Internet infrastructure markets. While at Walden, he created a portfolio of service companies including Mind Tree Consulting, Techspan, Sierra Atlantic and WebEx. He also established the Walden India Nikko Fund in 1996, the first technology focused VC fund in India. Som currently serves on the boards of directors of two public companies, Aztec and WebEx. He has over twelve years of management experience in the U.S. semiconductor industry, and was actively involved in establishing Malaysia's first commercial silicon wafer foundry, Siltera. Prior to joining Walden, he was director for Worldwide Business Development at VLSI Technology, Inc. and was previously an officer in the Indian Administrative Service in India. Som holds an MBA from the Graduate School of Business, Stanford University and an M.S. in physics and mathematics from Calcutta University.

This seminar is part of SPRIE's Fall 2003 series on "High-Tech Regions and the Globalization of Value Chains."

Daniel I. Okimoto Conference Room

Somshankar Das President and CEO e4e, Inc.
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Octobers and democracy in Thailand are inextricably entwined. On 14 October 1973, thirty years to the day before Dr. Pitsuwan will speak at Stanford, Field Marshal Thanom Kittikachorn, Thailand's strongman prime minister, was driven into exile. Parliamentary democracy flourished for three years until it was violently shut down in October 1976 following Thanom's return. On 12 October 2002 in Bali, extremist Muslims took more than 200 lives and made terrorism an urgent priority for Thailand and other members of the Association of Southeast Asian Nations (ASEAN). Relevant events in Southeast Asia in October 2003 include three summits--of ASEAN (Bali, 7-8 Oct.), of the Organization of the Islamic Conference (Kuala Lumpur, 16-18 Oct.), and of the Asia Pacific Economic Cooperation forum (Bangkok, 20-21 Oct.), the latter to include U.S. President George W. Bush. Dr. Pitsuwan will this unusual conjunction of anniversaries and summits to explore some of the ways in which democracy, terrorism, regionalism, and Islamism in Southeast Asia overlap and intersect. About the speaker Surin Pitsuwan served as Thailand's foreign minister from 1997 to 2001. He was the first Muslim to hold that post. He has been a member of the Foreign Affairs Committee in Thailand's House of Representatives since 1986. He has also been a columnist for Thai newspapers and a political science lecturer in Thammasat University. In 1983-84 he was a legislative assistant to U.S. Congresswoman Geraldine Ferraro. He earned a PhD from Harvard University in 1982 after graduating cum laude from the Claremont Men's College in Claremont, California.

Okimoto Conference Room

Surin Pitsuwan Member of Parliament Democratic Party, Thailand
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Silicon Valley BizInk spoke to APARC Senior Research Scholar %people1% about his current hot-button work on the offshoring of business practices (BPO) to India.

U.S. companies sent jobs to India to save money, but stayed because of the quality of the work. Rafiq Dossani is a senior research scholar at the Asia-Pacific Research Center at Stanford University. Dossani, along with Martin Kenney, a professor in the human and community development department at the University of California, Davis, published a 52-page research report entitled "Went for Cost, Stayed for Quality: Moving the Back Office to India." The paper is available for download below. The research is a comprehensive look at the driving forces behind the migration of "business process" work to India. These BP jobs include much of the so-called back-office tasks -- human resources, accounting and customer service -- that are being outsourced to India. General Electric Co., for example, employs 9,000 BP workers in India, saving the company $340 million per year. It's little wonder why GE anticipates employing 20,000 workers in India by next year. Biz Ink editor Dennis Taylor spoke with Dossani from his Stanford University office about the dynamics of the offshoring trend. Q: What are the key business needs being outsourced to India today? A: There are really two practices: [information technology] and business process outsourcing. BP is expected to overtake IT by next year. IT outsourcing has been growing in India by about 15 percent per year. BP is growing at 100 percent a year. There are different dynamics involved. Q: On the IT side, what work is being done in India? A: There are four distinct processes to IT development -- project determination, architecture, system design and [programming]. About 25 percent of that is programming, quality assurance and Web services. India has about 15 percent of that. It's a small percentage, but it's growing fast. Q: Why does that type of technology flourish in India? Is it the education focus? A: The education policy as such hasn't made much of a difference. India doesn't have a lot of technically educated people, relative to its population. There are 0.3 scientists and technicians per 1,000 people, which ranks India 42 out of 62 nations surveyed by the World Bank in 1998 in the per-capita number of scientists and technicians. What it does have is a billion people. What has helped India is everyone speaks English. Q: What was the most surprising finding coming out of your research? A: By far, India's biggest skill is business management. It is very hard to manage these projects remotely. Yet American companies are lifting a key component of a process and shipping it off to India and it is being managed well. You need to understand that 96 percent of these programming projects are complex coding for banks, insurance companies and a host of manufacturing companies. This is complex software being created on demand and most of it -- because it's banks and manufacturing [not tech companies] -- is coming from mainstream America, not Silicon Valley. Q: How much of the work being outsourced to India comes from the United States? A: About 70 percent. How is the phenomenon of "offshoring" affected life in tech hubs such as Bangalore? Q: In a sense IT has not had an impact on these places. It's like an ivory tower. In March 2003, there were 230,000 employed in the [IT] industry. In Bangalore that may represent one-third of the population, but 30,000 out of a population of 5 million creates a buzz, but that's about it. A: But BP outsourcing is having a completely different impact. There are many recent graduates who have never been able to get a job so easily. Now they have well-paid jobs with multinational firms because they speak English and have good interactive skills. With more people employed, it's beginning to hit mainstream India and move out of Bangalore and to smaller cities. That in turn affects other sectors, such as construction management skills. Shoddy buildings in India are becoming a thing of the past. Q: Is offshoring causing any Indian engineers here in the valley to consider returning to India? A: What happened is India liberalized in 1991 -- allowing foreign firms to do business. But it took them five or six years to adjust, so in 1996 the first foreign company was established and now it's quite common. But IT outsourcing still only comprises 4 percent of the business, but it is growing so there will be an impact to the valley. Q: There are roughly 30,000 Indian engineers in the valley, and I'd estimate no more than 300 have gone back. A: Will the rapid growth in offshoring continue as long as there is a substantial wage disparity between the two countries? Q: Oh, yes. The wage disparity is too much. Someone working in a BP tech support call center will make $1.50 [U.S.] an hour, including benefits. Over here, even if you paid $15 an hour, you wouldn't get happy workers. There it is viewed as a good career. The supply of labor is so huge for call-center work, it will take many years before the difference is cut to even half as much, probably 10 to 15 years. With IT outsourcing, in India you would be paying $3.50 an hour for a Java programmer versus $25 an hour here, so the eight-times differential still exists. Q: Is the practice paying off for valley companies? Any early report cards? A: Oh yeah, big time, especially on the BP side. You save 80 percent in costs. On the IT side it is beginning to pay off, now that it's a matter of in-house offshoring to your own subsidiary. Product software doesn't source out well because of the [feared loss of] intellectual property associated with it. Q: Is there a downside to offshoring work to India? A: A big concern for companies is the loss of knowledge. The last time that happened was in consumer electronics and the U.S. lost the lead. And business continuity is a big concern. You need to have payroll done at a certain time of the month, but if there is a power outage, which is more likely to happen in India than here, what are you going to do? And of course there is a very real concern over the loss of intellectual property.

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This seminar is part of SPRIE's Fall 2003 series on "High-Tech Regions and the Globalization of Value Chains."

Eric Benhamou is the chairman of the board of directors of 3Com Corporation, of Palm Inc. and of PalmSource, Inc. He served as chief executive officer of 3Com Corporation from September 1990 until December 31, 2000. In 1981, Benhamou co-founded Bridge Communications, an early networking pioneer, and was vice president of engineering until its merger with 3Com in 1987. Before joining Bridge Communications, he worked at Zilog, Inc. as project manager, software engineering manager and design engineer.

Benhamou holds honorary doctoral degrees from Ben Gurion University of the Negev, Widener University, Western Governors University, and the University of South Carolina. He has a master of science degree in electrical engineering from Stanford University and a Diplome d'Ingenieur from Ecole Nationale Superieure d'Arts et Metiers, Paris.

Benhamou currently serves as chairman of the board of Cypress Semiconductor and as a member of the board of Legato. He serves on the board of directors of privately held companies, Intransa and Atrica. He serves on the board of the New America Foundation, a Washington DC-based think tank. Benhamou serves on the executive committee of TechNet and of the Computer Science and Technology Board (CSTB). In addition, Benhamou is a champion of Smart Valley II, an initiative for deployment of state-of-the art information technology in Silicon Valleys health care, transportation, and education to enhance the quality of life for community members.

Philippines Conference Room

Eric Benhamou Chairman, Board of Directors 3Com Corporation, Palm, Inc., and PalmSource, Inc.
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This seminar is part of SPRIE's Fall 2003 series on "High-Tech Regions and the Globalization of Value Chains."

George M. Scalise is president of the Semiconductor Industry Association (SIA), where he directs a staff focused on International Trade & Government Affairs, Workforce, Technology, Environmental-Safety & Health, and Communications. Scalise came to the SIA from Apple Computer, where he served as executive vice president of operations. Previously, he held executive management positions at National Semiconductor, Maxtor Corporation, Advanced Micro Devices, Fairchild Semiconductor and Motorola Semiconductor.

A graduate of Purdue University with a B.S. in mechanical engineering, Scalise was a founding member of the Semiconductor Research Corporation, an industry-funded organization that provides resources for pre-competitive semiconductor research at American universities. Scalise currently serves on President George W. Bush's Council of Advisors on Science and Technology as well as numerous boards, including the Federal Reserve Bank of San Francisco where he is Chairman of the Board of Directors, Cadence Design Systems, and iSuppli Corporation.

Philippines Conference Room

George M. Scalise President Semiconductor Industry Association
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This seminar is part of SPRIE's Fall 2003 series on "High-Tech Regions and the Globalization of Value Chains."

Anita Manwani, vice president and general manager, Global Sourcing, Agilent Technologies, is responsible for global procurement of Indirect Materials and Agilent's operations in India. She has held a variety of management positions at Agilent, including vice president of Business Strategy. She is responsible for Agilent's strategy for an increased presence in India and the formation of a new entity, Agilent Technologies International, to provide R&D and IT enabled services to Agilent Entities worldwide.

Prior to joining Agilent Technologies, Manwani worked at Hewlett Packard where she led HPs software technology initiatives in distributed computing, high availability and systems for telecommunications as well as its 64-bit operating systems/server R&D and VAR programs. In the early 1990s, she was responsible for the growth of HP's India software operations in Bangalore with a business model which allowed HP to take the services of the India Software Operation to its external customers.

Manwani was one of 80 U.S. women selected as a "Technology All Star" at the National Women of Color Conference for her executive leadership in technology, and was recently received the YWCA TWIN award. She serves on the board for the Los Altos Education Foundation and is active with Girls for a Change. She attended the University of Cincinnati pursuing a Ph.D. (ABD) and holds B.A. and M.A. degrees from Bombay University.

Okimoto Conference Room

Anita Manwani Vice President and General Manager, Global Sourcing Agilent Technologies
Seminars
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This seminar is part of SPRIE's Fall 2003 series on "High-Tech Regions and the Globalization of Value Chains."

Over the past two decades, the physical products that we consume have increasingly been manufactured offshore. More recently, some business and consumer services have started moving overseas. India is an important destination for such work, as it has low labor costs, good remote process management skills, and adequate infrastructure. The talk will report on a recent visit to India in which about fifty business process outsourcing firms were interviewed. The work is part of a research project funded by the Sloan Foundation on understanding the impact of the globalization of business processes on the U.S. economy.

Martin Kenney is a professor in the Department of Human and Community Development at the University of California, Davis and a senior project director at the Berkeley Roundtable on the International Economy at the University of California, Berkeley. His research includes the role and history of the venture capital industry and the development of Silicon Valley. Kenney's recent books include Understanding Silicon Valley: Anatomy of an Entrepreneurial Region (2000) and Locating Global Advantage (forthcoming). He has consulted for various governments, companies, the United Nations, and the World Bank. He has been a visiting professor at Cambridge University, Copenhagen Business School, Hitotsubashi University, Kobe University, Osaka City University, and the University of Tokyo. He holds a B.A. and M.A. from San Diego State University and a Ph.D. from Cornell University.

Philippines Conference Room

No longer in residence.

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R_Dossani_headshot.jpg PhD

Rafiq Dossani was a senior research scholar at Stanford University's Shorenstein Asia-Pacific Research Center (Shorenstein APARC) and erstwhile director of the Stanford Center for South Asia. His research interests include South Asian security, government, higher education, technology, and business.  

Dossani’s most recent book is Knowledge Perspectives of New Product Development, co-edited with D. Assimakopoulos and E. Carayannis, published in 2011 by Springer. His earlier books include Does South Asia Exist?, published in 2010 by Shorenstein APARC; India Arriving, published in 2007 by AMACOM Books/American Management Association (reprinted in India in 2008 by McGraw-Hill, and in China in 2009 by Oriental Publishing House); Prospects for Peace in South Asia, co-edited with Henry Rowen, published in 2005 by Stanford University Press; and Telecommunications Reform in India, published in 2002 by Greenwood Press. One book is under preparation: Higher Education in the BRIC Countries, co-authored with Martin Carnoy and others, to be published in 2012.

Dossani currently chairs FOCUS USA, a non-profit organization that supports emergency relief in the developing world. Between 2004 and 2010, he was a trustee of Hidden Villa, a non-profit educational organization in the Bay Area. He also serves on the board of the Industry Studies Association, and is chair of the Industry Studies Association Annual Conference for 2010–12.

Earlier, Dossani worked for the Robert Fleming Investment Banking group, first as CEO of its India operations and later as head of its San Francisco operations. He also previously served as the chairman and CEO of a stockbroking firm on the OTCEI stock exchange in India, as the deputy editor of Business India Weekly, and as a professor of finance at Pennsylvania State University.

Dossani holds a BA in economics from St. Stephen's College, New Delhi, India; an MBA from the Indian Institute of Management, Calcutta, India; and a PhD in finance from Northwestern University.

Senior Research Scholar
Executive Director, South Asia Initiative
Rafiq Dossani
Martin Kenney Professor University of California, Davis
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8:30 AM, Bechtel Conference Center, First Floor, Encina Hall

WELCOME

Gi-Wook Shin, Acting Director, Shorenstein APARC

KEYNOTE SPEECH: FROM SILICON VALLEY TO SHANGHAI: The Information Age Opens To Asia

James Morgan, CEO, Applied Materials, Inc.

CRISIS ON THE KOREAN PENINSULA

Gi-Wook Shin, Acting Director, Shorenstein APARC

Michael Armacost, Shorenstein Distinguished Fellow, Shorenstein APARC

INDIA AS A DESTINATION FOR GLOBAL BUSINESS PROCESS OUTSOURCING: Key Factors and Trends

Rafiq Dossani, Senior Research Scholar, Shorenstein APARC

SOUTHEAST ASIA: A Region at Risk

Donald Emmerson, Senior Fellow, IIS

JAPAN'S PROLONGED ECONOMIC SLUMP: Explanations and Implications

Daniel Okimoto, Senior Fellow, IIS

Michael Armacost, Shorenstein Distinguished Fellow, Shorenstein APARC

ASIA'S EMERGING HOTBEDS FOR INNOVATION AND ENTREPRENEURSHIP

Henry Rowen, Senior Fellow, IIS

William F. Miller, Senior Fellow Emeritus, IIS

Marguerite Gong Hancock, Associate Director, Stanford Project on Regions of Innovation & Entrepreneurship

ABOUT THE ASIA/PACIFIC RESEARCH CENTER

Russell Hancock, Director of Programs, Shorenstein APARC

PLENARY SESSION

CHINA AFTER THE 16TH PARTY CONGRESS

Andrew Walder, Director, Shorenstein APARC

Lawrence Lau, Kwoh-Ting Li Professor of Economic Development

Jean Oi, William Haas Professor of Chinese Politics

Ramon Myers, Senior Fellow, Hoover Institution

CLOSING REMARKS

Gi-Wook Shin, Acting Director, Shorenstein APARC

Bechtel Conference Center

James Morgan CEO Keynote Speaker Applied Materials
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