SRI & Global Channel-TES

Prepared by Peter Lichang Kuo

A. Overview

K-Horn Science was an Incubator established by founder Peter Li-Chang Kuo in New York in 1979. It incubated those products such as satellite receivers and cable TV, and advocated social responsibility investment (SRI) since the 1980s, hoping to provide instrumental solution to resolve structural social problems. Therefore, the new tech-economic system – “The Electronic Store System” (The eStore System, “TES” in short) was invented. Linda Din, the President of K-Horn Science Inc. won “Steering the E-Commerce” at APEC 1998 based on the said invention, in order to implement the United States President Bill Clinton’s “E-Commerce Executive Order”, and then won the APEC 2003 Best Practice with the "Global Channel-TES" proposal on the stage, and further achieved a major e-commerce industry across the century, while in line with a multilateral trading system. Since "Cashless System" in TES has been adopted globally, and the evolution of artificial intelligence technology, so "Asset Securitization of TES" is planned. The first phase target is US$ 500 million, which will be used to build an ICT control center and carry out 10,000 eStores for pilot exercise. And then gradually achieve the mission goal of creating 2 million job opportunities and driving a trillion-dollar derivative value chain. Furthermore, gradually achieve the mission goal of creating 2 million job opportunities and driving a trillion-dollar derivative value chain.

Fig 1: Global Channel-TES (The eStore System)

B. Description

B-1: Social Responsibility Investment (SRI)

In order to resolve structural social problems and create a large number of job opportunities, we invented "contactless" induction technology and "cashless" transaction system, forming "the eStore System" (TES), which we won the E-Commerce Bill as a speaker at APEC 1998 to establish a cross-century e-commerce industry, produce massive new job opportunities to help people make the world’s money at home, so it was termed "Social Responsibility Investment" (SRI).

Fig 2: We gained the E-Commerce Bill at APEC 1998

B-2: The Profound Impact of Our Inventions

In addition to increasing many successful new entrepreneurs, our invention TES included many sub-inventions -- such as "Contactless-Tech/ Cashless/ Power Chip/ TranSmart Chip/ RF Transmitter/VAM & eStore/ TSCM/ ICT/ 3C/ EC/ Interphone / ATM/ TRD/ Entry Security Device/ETC/ Micro Business/ Shopping System----", and they were also cited by many multinational corporations (MNCs) -- including Disney/ Hitachi/ IBM/ Panasonic/ VISA/ Wal-Mart and etc. TES is a new tech-economic system that "integrates substantial (physical) and virtual". Its original intention is to solve unemployment and social problems through "Innovative Industry". As an achievement of social responsibility investment (SRI), TES has been leading the development of e-commerce and cashless transaction systems. Today It is widely commercialized around the world, demonstrating our innovative capabilities and market influence, and laying the foundation for the development of artificial intelligence (AI).

Fig 2-1: Integration of Substantial & Virtual to be Global Channel

B-3: Achievements of International Stages

When the Australian government discovered that the regional economy required a Multilateral Trading System to address the needs of SME exporters, we were invited to be a speaker at APEC 2003 and specially proposed the "Global Channel-TES (The eStore System)" that won the best practice of strengthening the economic society, not only attained digital economy, but also laid the foundation for the development of artificial intelligence. "Global Channel-TES" had been admired by APEC economies as the best guide to assist 240 million people in entrepreneurship. Since then, “Cashless forum” (like NFC) and RFID had become popular around the world.

Fig 3: We won the best practice at APEC 2003

The Australian government wanted to know the progress of their best practice, "Global Channel-TES", and invited us to report at the APEC CEO Summit 2006 in Hanoi. We initiated "Satellite Support" to promote the early advent of intellectual mobile communicators and also provided a smart-basis to lay the foundation for future development of TES.

Fig 4: Initiative of "Satellite Support" at APEC 2006

One year after the unprecedented financial crisis, we were invited to the APEC CEO Summit 2009 to contribute the way of "Rebuilding the Global Economy"; we submitted a cooperation plan between Taiwan and the United States in the proposal "IIA-TES" that Taiwan would make good use of her manufacturing and supply chain advantages to build the ICT control center, the United States should leverage her four major advantages: "1) HR & Innovation, 2) Logistics, 3) IPR & Law, 4) Financial Market," and had been widely recognized.

Fig 5: Cooperation between Taiwan and the United States

B-4: Former President Lee Teng-hui’s Perspective

After returning to Taiwan from APEC 2009, we're invited by former President Mr. Lee Teng-hui to report to him about the outcome we had achieved in APEC. He responded: "This is a major reform in the financial and technological fields!" Since then, "Fintech" has become popular. The "Golden Net" we built is also taking shape year by year. The TranSmart chip card and its transaction reading device (TRD) we invented are widely used in global transactions and identification places, and have now brought more than US$ 30 trillion to benefit the merchants. 請譯為中文

Fig 6: TranSmart Chip and TRD form a Golden-Net

B-5: "Global Channel-TES" is an innovative tech-economic system

1. Introduction:

“Global Channel-TES” is a high-tech marketing and distribution system centered on artificial intelligence (AI), aiming to achieve an innovative retail model that integrates substantial (physical) and virtual experiences. Through modular replicable eStores and an ICT control center, we aim to reshape consumer experiences and optimize business operations, addressing structural issues in the current market.

2. Core Technologies:

1) Contactless Transaction System: Building on our early inventions, the TranSmart chip and cashless payment system enhance transaction security and convenience.

2) Smart Supply Chain Management: Utilizing the TSCM (Transaction & Transmission Supply Chain Management) software system for efficient data transmission and product distribution management.

3) AI Data Analysis: Integrating AI technology for market forecasting and consumer behavior analysis, providing personalized recommendations to boost sales effectiveness.

3. Business Model:

1) eStore: Each eStore operates as an independent business unit like small cell site, offering diverse products and integrated services while using cashless transactions to reduce cash management costs.

2) Data Asset Management: Analyzing collected consumer data to provide real-time market trends, optimizing inventory and operational strategies for businesses.

3) Social Responsibility Investment (SRI): Establishing an SRI fund to support socially innovative and sustainable business models.

4. Market Opportunities:

1) Global Cashless Transaction Market: The annual transaction volume of global cashless transactions has reached US$ 36 trillion, and US$ 22 in APEC region alone that indicating significant market potential.

2) AI-Driven Business Transformation: With the rapid development of AI technology, the demand for business transformation is increasing, and "Global Channel-TES" provides the instrumental solution to achieve this goal.

5. Investment Highlights:

1) Growth Potential: Plans to establish 10,000 eStores within the next five years, and gradually creating 2 million job opportunities.

2) High Return Potential: Each eStore is projected to generate annual revenue of $55,000, leading to a total potential revenue of hundred of billion once fully operational.

3) Collaboration Opportunities: Seeking partnerships with private equity funds and other institutional investors to advance this innovative business model.

6. Summary: “Global Channel-TES” is the key to the future of commerce. By integrating AI technology with innovative business models, we aim to realize the four major revolutions of "monetary, industry, channels, and employment," solving current market pain points while providing substantial returns for investors.

B-6: Reaffirm the Invention Story of “Global Channel-TES”

In 1985, many foreign companies withdrew their investments from Taiwan, leading to widespread unemployment. Those who lost their jobs lamented that if they couldn't find decent work, they would have to drive taxis. In 1986, newspapers reported a tragic incident involving a taxi driver who was robbed. This series of events became the catalyst for our invention of the "Cashless System." A few days later, during a period of spiritual meditation, the original creator, Linda Din, sketched a schematic of the eStore system, defining an eStore as a place for non-cash transactions. There were two types: “1) fixed stores and 2) mobile taxis.” Their transactional information would be transmitted to the ICT control center for processing and computation, followed by notifications and distributions to various stakeholders.

Fig 7: ICT Control Center

B-7: TES & AI Drive Business Transformation Across Multiple Key Areas

People in the market are eager to profit by appropriating parts of our TES, particularly the contactless transaction reading device (TRD). In fact, the transmission, remote monitoring, and data analysis of the "Global Channel-TES" fall within the realm of artificial intelligence (AI), which has accelerated the rapid evolution of AI technology. This, in turn, has enhanced the applied environment of the "Global Channel-TES". Together, they drive the business transformation of the new tech-economic system, swiftly changing how various industries operate and providing enterprises with new opportunities to increase efficiency, optimize user experiences, and promote sustainable growth.

1. Transmission and Monitoring:

1) Smart Customer Service: Utilizing AI chatbots and voice assistants for automatic customer inquiries, providing 24-hour a day service.

2) Real-time Monitoring: Using AI technology to track market dynamics and customer feedback in real-time, allowing businesses to quickly adjust strategies.

2. Data Analysis:

1)Predictive Analytics: AI can analyze historical data to forecast market trends and consumer behavior, assisting companies in making informed decisions.

2)Data Mining: Through deep learning, businesses can extract valuable insights from large data sets, uncovering potential opportunities.

3. User Experience:

1)Personalized Recommendations: AI can provide product recommendations based on users' shopping history and behavior, enhancing the shopping experience.

2)Intellectual Interfaces: Utilizing Natural Language Processing (NLP) to improve user interface interactivity, making it easier for consumers to find desired products.

4. Optimization:

1)Supply Chain Management: AI helps optimize inventory management and logistics, improving supply chain efficiency and reducing costs.

2)Process Automation: Utilizing machine learning and automation tools to streamline internal processes, reducing human error and increasing productivity.

5. Effective Production:

1)Smart Manufacturing: Implementing predictive maintenance with AI to reduce equipment failures and downtime, enhancing production efficiency.

2)Resource Management: AI effectively allocates resources, minimizing waste and promoting sustainability.

6. Smart Consumption:

1) Price Optimization: AI analyzes market demand and competitor pricing, assisting businesses in setting optimal pricing strategies.

2) Behavior Analysis: By analyzing consumer behavior, businesses can better understand market demand and adjust product strategies accordingly.

B-8: The Scale of Cashless Transaction in TES

We've advocated that “One eStore One Business One Job” at APEC forum. With approximately 2.9 billion people in APEC region, about 1,000 people could set up an eStore, potentially creating 2 million job opportunities, which received a warm response. Linda Din served as an APEC speaker who was once asked in Bangkok, “What is the potential scale of cashless transactions?” She answered, “US$ 10 trillion.” At that time, the total GDP was around US$ 29 trillion; it has now exceeded US$ 60 trillion, with the regional economic body’s cashless transactions alone amounting to about US$ 22 trillion, which is more than double the initial forecast. Details please refer to the following:

Fig 8: The Status of APEC Economies 2023

B-9: Business Application Plan of “Global Channel-TES”:

1) Pilot Exercise: 10,000 eStores.

2) Partial Commercial Use: 100,000 eStores.

3) Full Application: 2,000,000 eStores.

Each eStore is priced at US$ 50,000 and will be securitized in phases and sold at international auctions, establishing an SRI fund to implement an ICT control center. This approach aims to maximize benefits for investors from pilot exercise to partial commercial use and finally to full application. The Financial Forecast please refer to the following:

Fig 9: 5-Year Financial Forecast

Products of “Global Channel-TES”: These include services, goods, advertisements, data, and IPR, with the potential to expand into small cell sites, charging stations, and the development of virtual asset management (VAM) and related products..

C: Conclusion

We have been engaging in Social Responsibility Investment (SRI) to address social issues, receiving high recognition from the economies. However, we have faced furious attacks from Open Society’s enemies in Taiwan. While Australian government invited us to APEC CEO Summit 2006 in Hanoi that they want to know the progress of the best practice “Global Channel-TES”. The leaders of various economies, upon hearing of our difficulties in Taiwan, defined those attackers as “the Entities of Corruption”, and the topic of “Anti-Corruption” became a long-term issue.

Until APEC 2016, the “Lima Anti-CorruptionDeclaration” linked to the WTO’s TRIPS and UNCAC, mandating Taiwan, a non-UN member, to submit an “Anti-Corruption Progress Report”. We have been tied up by corruption for 20 years, unable to move, and prevented from running social enterprise based on our inventions. Now, we are finally untied because the gradual decline of corrupt forces in Taiwan. We are poised for a resurgence. You are welcome to participate this innovative tech-economic system of new era.

Moreover, TES was conceived with both "Substantial" (physical) and "Virtual" components. In addition to physical operations, the global annual transaction volume of contactless cashless transactions exceeding US$ 30 trillion indicates that “Virtual Asset Management” (VAM) will also present significant opportunities, along with substantial future income from intellectual property royalties.

Peter Lichang Kuo, the author created Taiwan's Precision Industry in his early years. Peter was a representative of the APEC CEO Summit and an expert in the third sector. He advocated "anti-corruption (AC)/cashless/e-commerce (E-Com)/ICT/IPR/IIA-TES / Micro-Business (MB)…and etc." to win the international bills and regulations.