Integration-oriented and innovation-oriented play important roles in the industrial market
With the development of global integration and industrial horizontal division, being integration-oriented and innovation-oriented play important roles in the competitive industrial market. Software enterprises not only provide solitary products, but also devote time and effort to R&D, product design, sales, after sales service and information feedback. Software companies are trying to reduce the cost of R&D through the application of updated technology, which should ultimately reduce costs. And now, under the direction of the government's policies, software enterprises base themselves upon the creation, implementation, and protection of intellectual property rights. They are also spending more energy on the cultivation and exaltation of independent innovation. Software enterprises develop steadily on the basis of their R&D of core technology. They have success with items such as Linux, integrated office, and information security software, which depend on their practicality and compatibility, good price/performance ratio, credible information security, ample second development function, perfect after-sales service and cross-platform ability.
China's software industry chain is dispersive, and the whole industrial system plan faces challenge
China's software enterprises are aiming to release comprehensive products and services at the present stage. Their company structure and plan contains the whole lifecycle of a software project: consulting, analysis, design, R&D, testing, execution, and services. There is little association and collaboration between software enterprises. Every software enterprise is an "island." There are many alliances between companies aimed at strengthening ties. However, their incompact organization structure and benefit allocation make cooperation between companies superficial. And many software enterprises have unreasonable expectations and plans on how to pursue concepts such as workflow, cooperation, SOA and BOA. The whole industry focuses on industry applications. Application software's reusability is very low because of industry's dispersion. The software industry structure also affects personnel structures. The industry needs high-end personnel who can master consulting, analysis and software architecture design, and ones who can engage in low-end software coding and testing. Most staff concentrate on design, coding, testing and operation. The unreasonable personnel structure increases enterprises' cost. Therefore, China's software industry should plan the whole industry chain and form a development road which satisfies domestic demands and aims to be global.
Openness and services coexist, industrial boundary becomes faint
The license sales model has been dominating the mainstream software industry for a long time. The Internet era brings a capacious room for Open Source Software (OSS). For example, the Chinese government has been strengthening its support for Linux since 2000. From constituting the China national Linux standard group to promoting governmental cooperation among China, Japan and Korea to support original software purchase on a large scale, the Chinese government has created a favorable environment for Linux. In particular, the buildup of industry alliances has driven standardization and cross-industry communication. In conclusion, many active factors promote the growth of the Linux market, and impact the international monopolistic market.
The strategic significance of the software industry is distinct because of its profound overlap with other industries and fields. Therefore, software's product attributes are becoming obscure, while its service attributes are becoming distinct. For example, embedded software in the hardware is not considered a single product. With enterprise application software, users have tired of the endless expensive product upgrade. Users demand a reduction in the licensing price and an all-round one-stop service. Because of the convergence of the software industry, the traditional industry and the emerging industry, the industrial boundary is more and more indistinct.
China's software industry carries on a new round of information industry transfer. Its export-oriented trend has been more and more evident
The professional labor division, cooperation effect, agglomeration effect, and comparative advantage of the software industry all combine to achieve maximum development. The innovation ability has improved; the industrial structure has upgraded; new technology, product and demand has endlessly emerged in recent years. Currently, software and information services have a new round of transfer. China attracts the global software industry's transfer through its market advantage, reasonable cost advantage and notable industrial agglomeration effect. The new round of service outsourcing brings China enormous economic benefit. In 2006, China's software outsourcing market kept high-speed growth; the market scale reached $1.43 billion, up 55.4% over 2005. With the improvement of China's software outsourcing influence, Japan's outsourcing scale has kept expanding and outsourcing from the European and the US markets have had a good beginning. The high profit and growth potential of software outsourcing attracts numbers of new service providers, and local governments have considered developing software outsourcing services as the local strategic emphasis. The act promotes the rapid growth of China's software outsourcing market. Based on foreign experience and current projections, China's software industry is realizing the mutual benefits.
