Stanford University

Business

The Influence of the Investigation of Illegal 2002 Presidential Election Funds on the Politics and Economy of Korea

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From August 2003 to May 2004, the Korean Supreme Prosecutors' Office, under the leadership of Ahn Dai-Hee, then-chief of its Central Investigation Department, conducted a major investigation of the use of illegal funds in the 2002 presidential election.

This criminal investigation, Korea's largest, targeted illegal activities of leaders of the major political parties and major Korean conglomerates, which had funneled illegal funds to the political parties.

The independent and strictly evidence-based investigation resulted in the arrests and indictments of numerous political and business leaders, and revealed serious corruption in Korean politics and business (also referred to as "government-business collusion").

Mr Ahn's talk will include personal reflections on the investigation and discussion of its impact on political reforms in Korea, including how the investigation helped to significantly reduce corruption in Korea.

Ahn Dai- Hee is Chief Prosecutor of the Seoul High Prosecutors' office. He began his legal career as Army Judge Advocate after passing the national bar examination in 1975 and while still a student at Seoul National University. A prosecutor throughout his career, Mr Ahn's straightforward leadership of the Korean Supreme Prosecutors' Office's investigation into illegal funds in the 2002 presidential election earned him national recognition. Mr Ahn's publications include Criminal Tax Law published by Bobmunsa in 2003.

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Ahn Dai-Hee Chief Prosecutor Speaker Seoul Supreme Prosecutors' office
Seminars
Korea Program

Trends in Outsourcing Services: A Vendor's Perspective

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The US-India corridor for services outsourcing, now over three decades old, has moved from providing software programming to a wide range of lines of work, encompassing business processes, call-centers and analytical work, and going beyond its original focus on the banking industry to cover other financial services, healthcare and personnel management. The talk will address the benefits and risks associated with outsourcing,  the value proposition from a vendors' perspective and trends in the outsourcing services industry. The talk will take an analytical view of the drivers of outsourcing, going beyond the usual arguments based on cost arbitrage to show how firms like TCS have built defensible businesses based on process maturity, domain expertise, scale and scope. 

Surya Kant (known as Sury) is  President, Tata Consultancy Services  North America. Tata Consultancy Services Limited (TCS) is India's largest global IT consulting and services company, employing over 50,000 persons in 34 countries. His 27 year career with TCS includes setting up TCS Japan in 1987. He has also been country manager, TCS UK.  His focus areas include software quality assurance and delivery center management.

Sury received his Masters in Electrical Engineering from IIT Delhi (1978) and his Bachelors of Electrical Engineering from Delhi College of Engineering (1976). He is a member of the Association of Computing Machinery (ACM), USA. He was nominated to the Tata Group Top Strategic Leadership Programme in 2004.

Tea and samosas will be served.

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Surya Kant President, Tata Consultancy Services Limited, North American Operations (TSC) Speaker
Lectures

Integrated Circuit Development in Globalization - a China Experience

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In today's global economy, access to resources around the world has never been easier. The high tech industry has always been in the forefront of globalization in lowering costs, acquiring talent as well as serving markets. For instance, Asian countries have long been known for their vast manufacturing bases for western high tech industry.

In recent years, thanks to Y2K, India has become the leader in software outsourcing. China, given its expanding economy as well as its open market direction, has rapidly become the emerging location for multi-national semiconductor companies to outsource their product development amidst China's own burgeoning integrated circuit (IC) industry. Mr. Lee has first-hand experience in building and managing an IC product development center in Shanghai, China. He will discuss the challenges of operating a R&D organization in an environment of different languages and cultures. He will also share his vision of the future of the IC industry in China.

Mr. Lee is Group Vice President and general manager of Timing Solutions Products at Integrated Device Technology, Inc.(IDT), a public semiconductor company of $650 million annual sales, focusing on valued-added solutions for communication, consumer and computing markets. He has been with IDT for the last 22 years and has served various management roles. In 2001, he architected the acquisition of Newave Semiconductor Corporation in China and established the Shanghai Product Development Center for IDT. Before joining IDT in 1984, Mr. Lee spent 5 years at Intel Corporation as a technologist for the early development of flash memory technology. Mr. Lee earned his B.S. degree in Electrical Engineering from National Taiwan University in 1975 and M.S. degree from Case Western Reserve University in 1979.

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Jimmy Lee Group Vice President & General Manager of Timing Solutions Products Speaker Integrated Device Technology, Inc.
Seminars
Stanford Program on Regions of Innovation and Entrepreneurship (SPRIE)

Rising China: Echoes of a Rising Japan?

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Susan Chira will speak about rising China, and compare it to her 20-year-old experience as a journalist reporting on risen Japan and rising Korea. Even as Iraq grabs the headlines, the story of Rising China is one of the most gripping, the most resonant of our times. It presents enormous and obvious policy challenges, and considerable journalistic challenges, too. What is familiar in China's rise, and what is unique? How do you cover and present to readers a country that is at once exuberant and fearful, increasingly prosperous and increasingly unequal, newly open and reflexively repressive? The New York Times has had a personal brush with these many faces of China: its researcher, Zhao Yan, is still mired in jail after a year, charged with violating its vaguely-written, draconian law on state secrets.

Susan Chira was named foreign editor for The New York Times in January 2004. Previously, Ms. Chira had been editorial director of book development since September 2002. Before that she was the editor of the Week in Review section at The Times since October 1999, after having served as deputy foreign editor of the newspaper since February 1997. Prior to that, she served in a variety of reporting positions including national education correspondent, correspondent for the newspaper in Tokyo from October 1984 until February 1989, metropolitan reporter in the Albany and Stamford bureaus, and reporter for the Business Day section.

Ms. Chira joined The Times as a trainee on the metropolitan desk in 1981 and was promoted to reporter in July 1982.

She received a B.A. degree in history and East Asian studies from Harvard University in 1980, graduating summa cum laude, Phi Beta Kappa. As an undergraduate, she was a reporter and later president of The Harvard Crimson. She studied Japanese for a year and a half at the Inter-University Center for Japanese Language Studies in Tokyo and at Middlebury College, Vt.

Susan Chira is married to Michael Shapiro, a writer and assistant professor of journalism at the Columbia University Graduate School of Journalism. They have a daughter and a son.

Philippines Conference Room

Susan Chira Foreign Editor, The New York Times Speaker
Seminars
Contemporary Asia Seminar Series
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Challenges and realities of software development in China

Authors
George Krompacky
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Dr. Liu first offered his view on the current state of the software industry's development and in particular software outsourcing to China. Software prices and margins continue to drop. Coupled with this reality is Liu's view that "only 10-15% of software development is truly innovative and therefore suitable to be developed in Silicon Valley". As software development platforms and communication technologies, especially the Internet, become ubiquitous and affordable, distributed software development is becoming the rule.

China's challenges and advantages in software outsourcing

Compared to India, the leader in software outsourcing, China has its own distinct challenges. Chinese software companies have almost no U.S. customers for a number of reasons: language barriers, different working styles, customers' concern for software piracy, and the lack of experienced programmers and technical managers in China. Yet, China also has its advantages. Not only does it have a rapidly expanding domestic software market, but it also has a large pool of fresh engineering talent. "The key, therefore," asserted Dr. Liu, "lies in someone creating the right environment to train and build a local team to be able to develop and deliver world-class software products."

Augmentum's software development goals

This is what Augmentum has set out to accomplish. "...[W]e want to build a world-class, distributed development team for software product development... like the ODM model in the PC world..." declared Dr. Liu. Based on this vision, Augmentum's strategy hinges on its insistence to develop software for top US customers, such as Motorola, Business Objects, and PalmSource--and to rely primarily on local Chinese engineers. Explained Liu: "We want to make sure that the center of most of the people of that team is going to be in China, even though the locomotive, the teachers, is in the U.S., because that's where the leadership is in the software product development world."

Drawing on decades of experience developing top software teams at IBM and other companies, Dr. Liu detailed his company's efforts to attract the brightest local engineers and train them to be even better. He explained, "Culture and team is the true differentiation of Augmentum.... The real...challenge is to build the right culture with the right core team." The company insists on having no expatriates in their China operations but promoting close interaction between experienced mentors in the U.S. and the young teams in China, sometimes using some creative approaches for recruitment and training. For example, Augmentum puts all of its new hires under "a stress test" after hiring and proactively maintains an "upfront churn of at least 30%" in the first three-month period." Their end goal: "a world-class software development team that can bridge the East and the West but still has a cost structure comparable to local companies."

Liu's focus for the future

Despite experienced leadership, ties to leading U.S. companies, and strong young software teams, Augmentum faces real challenges. Liu acknowledged skeptics who question the ability to build a world-class team through working on the "crumbs of companies" of "projects they don't want to work on themselves." Nevertheless, he is confident in the trajectory of Augmentum's future growth, as the company is expecting to double its employees every year for the coming few years. In addition, Dr. Liu's vision includes a landscape beyond Augmentum. "I have a very simple focus. I want to train a lot of world-class software developers in China to serve the world. Many of them will not be working for Augmentum. It is fine...I want to bring my experience to there to make it happen. And the best vehicle to do that at this moment and time, the wave [that] I want to jump on is outsourcing, because it is growing the fastest."

Biography of Leonard Liu

Leonard Liu has spent 30 years in the systems industry, with a track record of developing innovative computing technologies into successful businesses. Most recently, he served as president of ASE Group, a leading provider of IC test and packaging services, having held roles as Chairman and CEO of Walker Interactive Systems, COO of Cadence Design Systems, and President of Acer Group. He was an early champion of outsourcing to India and China at Cadence and Walker. Dr. Liu began his career at IBM where he was responsible for the creation and implementation of SQL and the management of CICS, SNA and AIX, eventually overseeing the worldwide Database and Language lines-of-business. He received his undergraduate degree from Taiwan University and his Ph.D. from Princeton University.

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SPRIE Graduate Research Fellows: Research Assistantships + Paid Field Research In Greater China

Authors
George Krompacky
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Focus on Innovation and Entrepreneurship in Greater China

SPRIE is a multidisciplinary research program at Stanford University that focuses on innovation and entrepreneurship in leading high technology regions in the United States and Asia. SPRIE has an active community of scholars at Stanford as well as research affiliates in the United States, Mainland China, Taiwan, Japan, Korea, Singapore, and India. During 2005-2006, SPRIE is expanding a new initiative on the rise of leading high technology regions in Greater China and their impact on the global knowledge economy. Specific research topics include globalization of R&D, executive leadership, university-industry linkages, venture capital industry development and leading high technology clusters in Greater China. In addition, industries of ongoing research at SPRIE include semiconductors, computers, telecommunications, and software.

SPRIE Graduate Research Fellows: Research Assistantships & Support for International Field Research

As part of its new initiative on innovation and entrepreneurship in Greater China, SPRIE will select outstanding Stanford students as SPRIE Graduate Research Scholars. SPRIE Graduate Research Scholars will work with SPRIE faculty and senior researchers at Stanford for two (or more) academic quarters in 2005-2006 to gather and analyze data, conduct interviews in Silicon Valley, contribute to publications, and advance progress on the overall project agenda. During summer 2006, they will conduct SPRIE field research through interviews or surveys with business and government leaders in Beijing, Shanghai, or Hsinchu. As part of SPRIE's international research team, they will have the opportunity to interact closely with project leaders and visiting scholars at Stanford as well as partners in Asia, such as the Ministry of Science and Technology, Tsinghua University, or Zhongguancun Science Park in Mainland China or the Industrial Technology Research Institute (ITRI) in Taiwan. They will also participate in SPRIE's public and invitation-only seminars and workshops with academic, business, and government leaders. The financial award will include RA support at 15-20 hours/week (or equivalent) plus summer stipend to cover travel, living expenses, and research.

How To Apply (limited to current Stanford graduate students)

Successful candidates will have demonstrated a track record of superior analytical ability, strong oral and written communication skills (including full fluency in English and Chinese), knowledge of high technology and entrepreneurship, high motivation, and willingness to be part of a dynamic international research team.

Applicants should submit:

  1. A brief statement (not to exceed two single-spaced pages), which describes the candidate's interests and skills,
  2. a curriculum vitae
  3. contact information for 2 references, preferably recent professors, advisors, or employers

Send applications to:

SPRIE
Encina Hall - East 301
Stanford University 94305-6055

or by email to George Krompacky. Questions? Please contact George Krompacky, Program Coordinator, by email or call 650.725.1885

Deadline for receipt of all materials: December 30, 2005

Applicants will be notified of decisions in January 2006

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Post-Doc Fellowships: SPRIE Fellows at Stanford 2006-2007

Authors
George Krompacky
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The Stanford Project on Regions of Innovation and Entrepreneurship (SPRIE) is a multidisciplinary research program of the Shorenstein Asia-Pacific Research Center at Stanford University that focuses on innovation and entrepreneurship in leading high technology regions in the United States and Asia. SPRIE has an active community of scholars at Stanford as well as research affiliates in the United States, China, Taiwan, Japan, Korea, Singapore, and India.

Fellowship Program

As part of its initiative on Greater China, SPRIE will select two outstanding post-docs or young scholars as SPRIE Fellows at Stanford for the academic year 2006-2007 for research and writing on Greater China and its role in the global knowledge economy. The primary focus of the program is the intersection of innovation and entrepreneurship and underlying contemporary political, economic, technological and/or business factors in Greater China (including Taiwan, Mainland China, Singapore). Topics of particular interest include, but are not limited to, globalization of R&D, executive leadership, university-industry linkages, venture capital industry development and leading high technology clusters in Greater China. In addition, industries of ongoing research at SPRIE include semiconductors, computers, telecommunications, and software.

SPRIE Fellows at Stanford will be expected to be in residence for at least three academic quarters, beginning the fall quarter of 2006. Fellows take part in Center activities, including research forums, seminars and workshops throughout the academic year, and are required to present their research findings in SPRIE seminars. They will also participate as members of SPRIE's team in its public and invitation-only seminars and workshops with academic, business and government leaders. Fellows will also participate in the publication programs of SPRIE and Shorenstein Asia-Pacific Research Center. The Fellowship carries a stipend of $40,000.

How to Apply

Applicants should submit:

1) A statement of purpose not to exceed five single-spaced pages which describes the research and writing to be undertaken during the fellowship period, as well as the projected products(s) that will be published;

2) a curriculum vitae (with research ability in Chinese preferred); and

3) 2 letters of recommendation from faculty advisors or other scholars. All applicants must have Ph.D. degrees conferred by August 30, 2006.

Address all applications to:

Stanford Project on Regions of Innovation and Entrepreneurship,

Shorenstein Asia-Pacific Research Center,

Encina Hall - East 301,

Stanford University

Stanford, CA 94305-6055

Questions? Please contact George Krompacky, Program Coordinator

Deadline for receipt of all materials: January 13, 2006

Applicants will be notified of decisions in March 2006

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Why China's Rise Will Be Peaceful: Hierarchy and Stability in East Asia

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Realpolitik pessimists, power transition theorists, and others see China's rise as inherently destabilizing. However, China has already been growing rapidly for almost three decades, and there is little evidence that the region is devolving into balancing, nor that China's rise is causing undue alarm in the region. China's expected emergence as the most powerful state in East Asia has been accompanied with more stability than pessimists believed because hierarchy, not balancing, is emerging in East Asia. Dr. Kang explains the relationships between dominant and secondary states in a hierarchic system. Furthermore, on the one hand, China has provided credible information about its capabilities and intentions to its neighbors. On the other hand, East Asian states actually believe China's claims, and hence do not fear -- and instead seek to benefit from - China's rise. This shared understanding about China's preferences and limited aims short-circuits the security dilemma.

David Kang has scholarly interests in both business-government relations and international relations, with a focus on Asia. His book Crony Capitalism: Corruption and Development in South Korea and the Philippines (Cambridge University Press, 2002), was named by Choice as a 2003 Outstanding Academic Title. He is also author of Nuclear North Korea: A Debate on Engagement Strategies, co-authored with Victor Cha (Columbia University Press, 2003). Kang is a Stanford alumnus (B.A. 1988, anthropology and international relations) and holds a Ph.D. in Political Science from the University of California at Berkeley.

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David Kang Visiting Professor, Shorenstein APARC and Associate Professor of Government, Dartmouth College Speaker
Lectures

Challenges and Realities of Software Development in China

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China's software industry is at an inflexion point. For the past decade, China has been in the shadow of India's spectacular success in the IT outsourcing industry. While changes are underway, many challenges remain. However, it is possible to build software development teams in China, collaborating with teams in the United States, to be as good as software development teams anywhere in the world.

Dr. Liu will discuss his experience as Chairman and CEO of Augmentum, a value-added software development services company that has grown in two years to more than 450 people worldwide, 90% of them at Augmentum's development facility in Shanghai. Sixty percent of Augmentum's work is high-value added such as total products and solutions, from architecture to system integration test. All their customers are in North America -- many of them leaders in their respective industries.

Leonard Liu has spent 30 years in the systems industry, with a track record of developing innovative computing technologies into successful businesses. Most recently, he served as president of ASE Group, a leading provider of IC test and packaging services, having held roles as Chairman and CEO of Walker Interactive Systems, COO of Cadence Design Systems, and President of Acer Group. He was an early champion of outsourcing to India and China at Cadence and Walker. Dr. Liu began his career at IBM where he was responsible for the creation and implementation of SQL and the management of CICS, SNA and AIX, eventually overseeing the worldwide Database and Language lines-of-business. He received his undergraduate degree from Taiwan University and his Ph.D. from Princeton University.

Part of SPRIE's Greater China and the Globalization of R&D seminar series

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Leonard Liu Chairman and CEO, Augmentum, former executive at Cadence, Acer Group & IBM Speaker
Seminars
Stanford Program on Regions of Innovation and Entrepreneurship (SPRIE)

Offshoring and the Future of U.S. Engineering: An Overview

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Engineering as a profession in the United States and other developed nations may soon face a crisis. As a result of sophisticated telecommunications and the digitization of engineering work processes, increasing portions of engineering work can be done without close proximity to particular persons, places, or other processes. In principle at least, this work can be done anywhere in the world that has access to (1) global telecommunications networks and requisite software packages and (2) adequately trained personnel. Undergraduate engineering students in relatively advanced developing nations, such as India and China, follow a curriculum roughly comparable to the one taught in developed nations. Thus, even as barriers to performing conventional engineering work remotely are eroding, a global pool of conventionally trained engineers is growing. This means that U.S. engineers are now in global competition with engineers in developing nations whose wages are 40 to 80 percent lower than ours.

In this paper, our discussion is limited to work that is relocated but still services markets in developed countries (rather than work done to meet the needs of local markets in developing countries). Offshoring of this work can not only directly replace existing workers, but can also capture jobs that would have been added to the U.S. economy, especially for fast-growing entrepreneurial ventures that must lower cash expenditures and speed up product development. Recent examples include Silicon Valley high-technology start-up companies that establish offshore subsidiaries very early in their life cycles. In these cases, offshoring does not reflect direct job displacement but redirects job growth to lower cost developing nations, at the same time making the start-up more competitive.

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Went for Cost, Stayed for Quality?: Moving the Back Office to India

Author(s)
Went for Cost, Stayed for Quality?: Moving the Back Office to India
Working Papers
November 2003
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The Bridge: Linking Engineering and Society
Authors
Rafiq Dossani
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