TSCM Information System

Written by Peter Li-Chang Kuo

(Chinese)

TSCM is the abbreviation for "Transaction & Transmission Supply Chain Management" information system. Its R&D results were published under the title "Development of a Supply Chain Management Information System for an Electronic Shopping System" in the Ministry of Economic Affairs’ 2000 publication "Compilation of Achievements from the 1998–2000 State-owned Enterprises’ Assistance Program for SMEs in R&D" (hereafter referred to as "the Compilation").

Fig 1: The thick volume of "the Compilation" was funded through subsidies from Taipower and CPC

In 1986, to address the problem of unemployed individuals who had turned to driving taxis and were getting robbed, we invented the "TES E-Commerce System"— using the TranSmart Chip Card and its "Transaction Reading Device" (TRD) as the transaction tools, while the transmission function was entrusted to “TSCM.” We began with COBOL and Fortran, and continued urging our suppliers to develop numerous application programs—such as “Java, Delphi, SQL, C++, XML,” etc.—until we finally brought the results to the 1997 Vancouver APEC, where we shared this groundbreaking, cross-century invention with economies around the world.

Fig 2: TES inventor Linda Din at Vancouver APEC 1997

Representatives from various economies unanimously remarked:

“You should apply for patents for your invention, so that when you try to solve unemployment, no one can come out and cause trouble!”

Therefore, in addition to copyrights, we also applied for invention patents and trademarks.

Fig 3: “TSCM 2000” trademark.

At the 1997 Vancouver APEC, Director Li Chang-Yi of the SME Administration saw the enthusiastic response from representatives of various economies to our presentation on TES and hoped we would contribute our R&D results by including “TSCM” in the Compilation, showcasing that Taiwan had finally produced an invention that led the world in the evolution of global technology.

Fig 4: TSCM inventor Linda Din with SME Administration Director Li Chang-Yi at APEC 1997

Excerpt from the “TSCM” entry:

Main Products:

Electronic Shopping System Supply Chain Management Information System, Proprietary Inventory Center Management Information System, and Group Control Module for Vending Machine Groups and Contactless Card Top-up Machine Groups. The three main sections: “I. Product Functions or Technical Content; II. Applications of the Product or Technology; III. Results.”

I. Product Functions or Technical Content:

1. Control Center Management System Internal Control:

Includes control of vending machine groups and proprietary inventory center machines. Main subsystems:

(1) Basic Data Maintenance,

(2) Sales Management System,

(3) Order Management System,

(4) Purchasing Management System,

(5) Shipping/Delivery Management System,

(6) Inventory Inquiry System,

(7) Stocktaking Management System,

(8) Stored Value Card Management System,

(9) Accounts Management System,

(10) System Management.

2. Proprietary Inventory Center Internal Control System:

Main functions:

(1) Control Center sends purchase notification,

(2) Receiving status returned to Control Center,

(3) Control Center sends shipping notification,

(4) Pick-up for shipping,

(5) Shipping processing,

(6) Shipping results returned to Control Center,

(7) Inventory inquiry operations,

(8) Inventory stocktaking operations.

3. Vending Machine and Contactless Card Top-up Machine Group Control Module:

Main functions: To manage and transmit information for vending machines and top-up machines, using dedicated lines or wireless communication to transmit electronic transaction and product information back to the Control Center.

II. Applications of the Product or Technology:

This product allows "electronic payments via prepaid cards, IC cards, or credit cards," transmitting vending machine transaction and product information back to the Control Center via dedicated lines or wireless communication. The Control Center, through its MIS (Management Information System), circulates financial and information flows with financial institutions and suppliers, while managing product sales data and inventory quantities to grasp market sales intelligence.

The product is designed for vending machines, which can sell beverages, food, newspapers, daily necessities, groceries, employment information, computer software, and many other products and services. It can be adapted for various applications depending on the products or services offered.

III. Results:

1. Expected Benefits:

(1) Build and promote an around-the-clock, low-cost, highly convenient unmanned sales system;

(2) Develop key technologies for unmanned shopping (sales) systems to lay a solid foundation for the future development of eCommerce in Taiwan;

(3) Unmanned shopping systems can integrate industries such as electronics, machinery, information, optics, food, plastics; distribution, and logistics, creating significant industrial synergy and driving domestic industrial growth;

(4) The system can "reduce distribution steps," create innovative product channels, lower middleman exploitation and distribution costs, and provide a better consumption environment for the public.

2. System development and testing have been completed.

3. Completion of management information systems for the Control Center and Proprietary Inventory Center, as well as control functions for vending machines and top-up machines.

At the time, because the public was not yet aware—so when we spoke of a “contactless, cashless e-commerce system” or “transactions automatically transmitting to the control center for information processing,” no one understood what we meant. Therefore, we installed TSCM and TRD into vending machines, creating “VAM” (Vending Automation Manager) as a physical demonstration for the world to see, ushering humanity into a new era of technological economy and creating a large number of new jobs.

Fig 6: Linda Din demonstrates TSCM through VAM

We combined our own funds with subsidies from state-owned enterprises, patiently teaching a national university to handle the project, successfully including this invention—which transformed human transaction and living patterns—into the Compilation as a valuable national record. This truly advanced the “technologization of traditional industries and the intelligentization of technology industries,” helping people earn money from the world while working from home.

As to "The Compilation of Achievements from the 1998–2000 State-owned Enterprises’ Assistance Program for SMEs in R&D" (the Compilation) was part of the Ministry of Economic Affairs’ program where state-owned enterprises allocated subsidies from surplus funds to assist SMEs in conducting R&D. The program ran between 1998 and 2000, and we were fortunate to be part of it.

After completing the 1997 APEC meeting, we traveled from Vancouver to Washington, DC with Director Li Chang-Yi, where we met with the U.S. "Small Business Administration" (SBA). There, Mr. Richard Ginsburg mentioned that the U.S. had a program to assist SMEs in R&D called "SBIR" (Small Business Innovation Research). Through our efforts, Taiwan’s version of SBIR was also established, leaving an indelible mark on the history of Taiwan’s industrial upgrading.

Fig 7 : Visiting SBA official Richard Ginsburg in DC

When later speaking with former President Lee Teng-Hui about his 12 years in office, he spoke with great enthusiasm about the reason why, during his tenure, “state-owned enterprises had such abundant surpluses that they could assist SMEs in conducting R&D.”Summarizing the underlying factors, there were three layers of policy logic:

1. Lee Teng-hui’s policy of “maintaining monopolies in state-owned enterprises to ensure stable revenue sources”:

1) After assuming the presidency in 1988, Lee discussed privatization but, in key energy and raw material sectors (such as Taipower, CPC, Taisugar, and CSC), he chose to “delay liberalization and maintain monopoly positions.” This allowed state-owned enterprises to continue using pricing power and market protection to accumulate large surpluses, instead of being forced into price-cutting competition.

2) At the time, global oil prices were low, Taiwan’s economy was still enjoying the tail end of the 1980s export boom, and the higher authorities of state-owned enterprises provided full support. Operations ran smoothly, and surpluses naturally rose year after year.

2. Policy vision of “using state-owned enterprise surpluses to drive SME upgrading”:

1) In 1991, President Lee established the "National Development Conference;" in 1995, he launched the Asia-Pacific Regional Operations Center Plan; and in 1996, he accepted my “Incubator Plan” and rolled out an innovation incubation policy, emphasizing industrial upgrading and technological advancement.

2) He understood that SMEs were the backbone of Taiwan’s economy but had weak R&D capabilities, so he supported the Industrial Development Bureau of the Ministry of Economic Affairs in designing the “State-owned Enterprises’ Assistance Program for SMEs in R&D.” This used the surplus funds of state-owned enterprises as a capital pool—essentially a domestic version of an “Industrial Policy Fund”—to prevent all surpluses from being turned over to the national treasury and diverted to unrelated uses.

3. “Counter-cyclical” investment strategy during the 1997 Asian Financial Crisis

1) The financial crisis hit Taiwan’s export markets, and the Lee administration leaned toward using domestic investment and technological upgrading to offset external downturns. This successfully absorbed the shock and made Taiwan even stronger.

2) Channeling state-owned enterprise surpluses into SME R&D was a “counter-cyclical” measure—using domestic capital to support industrial transformation and foster new competitive strengths when external markets were sluggish.

If Lee had not, in the 1990s, delayed privatization of state-owned enterprises, retained their monopolies and surpluses, and directed these surpluses into SME R&D, there would not have been as much funding between 1998 and 2000 to support world-changing technological innovations like “TSCM and TES.” Our ability to “be in the right place at the right time” was due to President Lee’s industrial policy design and his special arrangement for the use of state-owned enterprise surpluses.

In 1998, state-owned enterprises’ “remitted surpluses to the treasury exceeded NT$ 280 billion,” with an overall net profit margin of 10.15%, reflecting their healthy financial condition. This allowed them to allocate retained earnings to subsidize SME R&D. Therefore, the main reason these state-owned enterprises could “allocate subsidies from surplus funds” was that, at the time, Taiwan’s state-owned enterprises were performing well, generating ample profits, and benefiting from government policy support and planning. This enabled them to channel funds into assisting SMEs in R&D, driving industrial upgrading and technological development, thereby demonstrating Taiwan’s strength and contribution to global technological progress.

In an interview with Mr. Huang Tien-Lin, a macroeconomic expert who once served as Chairman of First Commercial Bank, he referred to his book "One Hundred Questions on the Economy" and gave concrete figures illustrating Taiwan’s prosperity in the 1990s:

“President Lee’s Six-Year National Development Plan—during the period 1991–1996—achieved an average annual GDP growth rate of 6.5%, an annual inflation rate of 3.7%, and a rise in per capita GNP from USD 8,982 to USD 12,872.”

This laid a solid foundation for Taiwan’s development in the 21st century.

Entering the 21st century, Taiwan began to see growing social unrest. On January 27, 2001, our offices and residences in both Taipei and Taichung were simultaneously robbed by a cartel crime group— partly targeting “TSCM” information system. The criminal investigator at the scene remarked: “This was definitely done by an insider. Just wait—whoever uses it first is the thief!”

Fig 8: Police incident report form for the January 27, 2001 robbery

Deficits reflect contradictions

Just the other day, we discussed the persistent losses of state-owned enterprises in recent years, which stem from a combination of structural operational difficulties, policy factors, and external challenges.

First, although at the 2023 COP 28 UN Climate Conference, 22 countries jointly signed an initiative pledging to "triple global nuclear power generation capacity" by 2050 as a means of achieving net-zero carbon emissions, the Taiwan authorities still emphasize nuclear accident risks and nuclear waste issues. They believe neither society nor industry can bear the risks of a nuclear disaster. Thus, the No. 3 Nuclear Power Plant was decommissioned in 2025, though a "referendum" scheduled for August 23 will decide whether it should be restarted. Under such political constraints, Taipower is like a skilled housewife unable to cook without rice.

Second, since 2021, the costs of power generation fuels such as natural gas and coal have risen sharply—doubling after the outbreak of the Russia–Ukraine war. Under the current pro-thermal power policy, Taipower has been unable to avoid losses. CPC Corporation, Taiwan, has likewise been hit by rising international fuel prices and domestic fuel price freezes, leading to continued losses.

These deficits reflect contradictions in Taiwan’s current energy policy, international market volatility, and price control policies. For state-owned enterprises, sound governance alone is insufficient to stop the bleeding, resulting in long-term financial strain.

Summary

Former President Lee Teng-Hui once said:

“During my presidency, I was cautious every single day. During the 1997 Asian Financial Crisis, I maintained close daily contact with the central bank governor, anticipating every possible scenario and preparing countermeasures in advance.”

At the APEC Leaders’ Meeting, Japan’s representative admitted:

“Japan failed to handle the 1997 Asian Financial Crisis properly, which is why we collapsed.”

President Lee once gave us a copy of “Managing A Great Taiwan” (Lee Teng-Hui, 1994) with the advice: “Think further ahead for Taiwan.” The policy environment during Lee’s presidency supported steady surpluses for state-owned enterprises and sustained industrial upgrading through R&D. From both political and managerial perspectives, we have a positive assessment of President Lee’s legacy. “There is nothing new under the sun”— today’s challenges have also existed in the past, and by carefully studying the steps taken by those before us, we can avoid the pitfalls.

Fig 9: “Managing A Great Taiwan” (Lee Teng-Hui, 1994)

Future leaders should learn from Lee Teng-Hui’s spirit and approach, specifically in the following ways:

1. Heightened vigilance and crisis awareness:

When facing the 1997 Asian Financial Crisis, President Lee maintained close daily contact with the central bank governor, anticipating possible difficulties and deploying countermeasures in advance. Future leaders confronting the losses and operational challenges of state-owned enterprises should likewise remain vigilant, stay alert to international economic changes and policy adjustments, proactively assess risks, and prepare for contingencies.

2. Holistic thinking and long-term vision:

President Lee stressed the need to “think further ahead for Taiwan.” Such a long-term perspective is crucial for state-owned enterprises. Future leaders should look beyond short-term financial pressures and instead consider issues in the context of industrial upgrading, innovation in R&D, and comprehensive policy planning—avoiding a narrow focus on immediate problems.

3. Prudent management strategies and industrial upgrading:

During President Lee’s tenure, state-owned enterprises maintained steady surpluses and continued upgrading through R&D, demonstrating the synergy between policy and business strategy. This approach should be emulated to strengthen core competitiveness and self-growth capacity, enhancing value rather than relying solely on price strategies to pass on costs.

4. Effective political and managerial coordination:

President Lee was able to earn positive evaluations on both political and managerial fronts, showing his ability to balance policy and operations. Future leaders should learn how to balance government policy, energy price adjustments, and international market fluctuations to ensure the continued stability of state-owned enterprises amid multiple challenges.

5. Learning from history to avoid repeating mistakes:

Lee emphasized, “There is nothing new under the sun.” Current difficulties have occurred before. Future leaders should review history, draw lessons from their predecessors, and avoid repeating mistakes—using historical wisdom to plan for the future.

In sum, we should take former President Lee Teng-Hui’s prudence, long-term planning, steady management, and adept political judgment as a model. To address the structural operational difficulties currently facing state-owned enterprises, we must adopt systematic thinking and strategic planning that balance policy adjustments with market needs, in order to emerge from today’s difficulties and ensure the sustainable development of these enterprises. Only by going further can another "TSCM" that benefits the world emerge from Taiwan.

Peter Li-Chang 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.

【Copyrights reserved by Li-Chang Kuo & K-Horn Science Inc.】

External Links:

https://patents.google.com/patent/US6304796 (VAM)

https://patents.google.com/patent/US20030197061 (Shopping System)

https://patents.google.com/patent/US20030107468 (Entry Security Device)

https://patents.google.com/patent/US20040054595A1 (ETC)

https://ldinventions.blogspot.com/2022/01/127.html  (A Universal Cashless System)

https://khornhb.blogspot.com/2023/10/1011.html (K-Horn Science Inc.)

https://khornhb.blogspot.com/2023/11/1110.html (K-Horn & APEC)

https://khornhb.blogspot.com/2023/12/1208.html (K-Horn’s SRI)

https://khornhb.blogspot.com/2024/01/105.html (K-Horn’s PCM)

https://khornhb.blogspot.com/2024/03/326.html (Tree's Whiskers)

https://klcapec.blogspot.com/2024/05/515.html (The Best Practice)

https://klcapec.blogspot.com/2024/06/609.html (Edison’s Inspiration)

https://lckstory.blogspot.com/2024/07/704.html (Apollo)

https://khornhb.blogspot.com/2024/07/721.html (Paving the Way for AI)

https://lckstory.blogspot.com/2024/08/818.html (Disney Intelligent System)

https://ksibusiness.blogspot.com/2024/10/1028.html (SRI & Global Channel-TES)

https://plckai.blogspot.com/2024/11/1103.html (On Ethics & Morality of the AI Era)

https://klcapec.blogspot.com/2024/11/1112.html (Peru APEC)

https://pkproposal.blogspot.com/2024/11/1127.html (A Proposal to President Trump)

https://pkproposal.blogspot.com/2024/12/1208.html (2ND Proposal “IIA-TES”)

https://pkproposal.blogspot.com/2024/12/1220.html (TES & MAGA)

https://pklctrips.blogspot.com/2024/12/1231.html (Kuo’s Journey for 6 Decades)

https://pklctrips.blogspot.com/2025/01/111.html (The Photonics Revolution)

https://pklctrips.blogspot.com/2025/01/121.html (Einstein’s Enlightenment)

https://lckstory.blogspot.com/2025/02/216.html (Grandmother’s Paper-cutting Legacy)

https://pklctrips.blogspot.com/2025/03/323.html (Getting to Know Trump)

https://pklctrips.blogspot.com/2025/03/331.html (Cijin Grand Maritime Project)

https://pkproposal.blogspot.com/2025/04/409.html (A Letter to President Trump)

https://ksibusiness.blogspot.com/2025/04/413.html (Top Secret)

https://pklctrips.blogspot.com/2025/04/416.html (Singapore’s Strategy in a Changing World)

https://pkproclaims.blogspot.com/2025/04/422.html (How the American Elite Think)

https://pkproclaims.blogspot.com/2025/04/425.html (My Grandfather & the Tainan Canal)

https://lckstory.blogspot.com/2025/04/428.html (The Inventions of Linda Din)

https://pklctrips.blogspot.com/2025/05/502.html (Theological Practice in Precision Industry)

https://lckstory.blogspot.com/2025/05/514.html (Li-Chang Kuo’s Caring Technology)

https://lckstory.blogspot.com/2025/05/519.html (520 Presidential Inauguration Day)

https://tesoperation.blogspot.com/2025/05/522.html (Investing in America’s Health)

https://tesoperation.blogspot.com/2025/05/527.html (Lind Din’s Rice Dumpling in TES)

https://tesoperation.blogspot.com/2025/06/605.html (Greatest Business Opportunity)

https://pklctrips.blogspot.com/2025/06/612.html (Grand Maritime Initiative)

https://klcapec.blogspot.com/2025/06/618.html (TES & APEC)

https://lckstory.blogspot.com/2025/06/622.html (Crystal Soap & Precision Manufacturing)

https://plcpolitics.blogspot.com/2025/06/624.html (Qualities of A Supreme Leader)

https://plcpolitics.blogspot.com/2025/07/704.html (Investing in America’s Heart)

https://pkproposal.blogspot.com/2025/07/709.html (Wheeler’s New City Vision)

https://pklctrips.blogspot.com/2025/07/716.html (Brain Mine Lasts Forever)

https://pkproclaims.blogspot.com/2025/07/725.html (Intelligent Industry)

https://klcapec.blogspot.com/2025/07/728.html (The Yarlung Tsangpo Legend)

https://plcpolitics.blogspot.com/2025/08/801.html (Managing A Great Taiwan)

https://ksibusiness.blogspot.com/2025/08/0.html (Tiny Energy Site)

https://ko-fi.com/ndart2025 (Donate the NDART)

“Donatethe NDART”