Seven Castles

A White Paper (3)- -

                                      

A White Paper on the All-round Development of Shanghai Telecom
July 1, 2004 (First Edition)

Shanghai Telecommunication Co., Ltd.

Contents

Introduction
Chapter 1 Development Direction
I. Development Strategy
Strategic Objectives
Critical Success Factors
Key Action
Chapter 2 Development Motivation
II. Shareholder Interests
Value-seeking
Critical Success Factors
Key Action
III. Customer Values
Value-seeking
Critical Success Factors 
Key Action
IV. Staff Development
Value-seeking
Critical Success Factors
Key Action
Chapter 3 Development Platform
V. Service Quality
Value Conversion
Critical Success Factors
Key Action
VI. Network Orientation
Value Conversion
Critical Success Factors
Key Action
VII. Management Upgrade
Value Conversion
Critical Success Factors
Key Action
Chapter 4 Development Basis
VIII. Competition versus Cooperation
  Value Interaction
  Critical Success Factors
  Key Action
IX. Environment for Survival
Value Interaction
Critical Success Factors
Key Action
X. Social Responsibility
Value Interaction
Critical Success Factors
Key Action
Conclusion

Chapter 3 Development Platform
V. Service Quality

Service quality means the services Shanghai Telecom provide customers could satisfy customer needs and accord with diversified choices of customer values. It is to maximize resource optimization and get it explicit.

High service quality will bring about constantly improved customer satisfaction, and then improved customer values, which are continually converted to the corporate values. Only with unremitting efforts made for high quality, could Shanghai Telecom dynamically meet the personalized customer needs in different times, maintain our status as an industry leader, and provide strong support for the best overall performance of Shanghai Telecom.

Value Conversion

1. Personalized service architecture. Establish service architecture featuring "customer first, service foremost", improve interfaces of customer services so that customers can experience the "people-oriented" business concept of Shanghai Telecom.

2. Service quality of specialized standard. Deliver "easy, efficient, quality and transparent" info-communication and information services to customers.

3. Provisioning of high value-added services. Keep increasing the premium of the services. The premium evaluation is dependant on how customers weight product quality, service quality and affordable pricing.

4. Sustained service innovation. Keep bringing forth new ideas for services and get them diversified, improve pricing structure and service-delivering means, and generate new growth points.

5. High values of brands. Study values of all the service brands of Shanghai Telecom. On the basis of brand analysis, evaluate brand promotion and constantly enhance the awareness and good will of the service brands.

Critical Success Factors

1. Desired quality control system. Quality control is implemented with more scientific and standard means through quality certification system internationally practiced. Take the service standard that can be rated in quantitative and controllable manners as the criteria for service quality evaluation. 

2. Quality-oriented corporate culture. Nurturing quality-oriented corporate culture and arousing employees' fervors of pursuing high service quality is the key guarantee for Shanghai Telecom to implement excellent service quality.

3. Leader in innovation. Constantly convert market opportunities to innovative strength for actual products, latest technologies to innovative strength in technologies for actual applications, strategic objectives to managerial innovation for actual implementation to offer adequate guarantee for Shanghai Telecom in improving service quality.

4. Comprehension of customer perceived values. The customer perception of values of services by Shanghai Telecom is the major cause that directly decides if the service will be signed up or not. In the light of what a role customer perception plays in their consumption behavior, to better create and convey the perceived values of our services is one of the key success factors for service quality.

Key Action

1. Proactively optimize various business processes of service acceptance, installation, complaint and after-sale service in accordance with actual customer needs and marketplace scene.
     
2. Establish customer application research center, develop new services in conformity with market potentials and technical feasibility, formulate standardized institution for pilot operation of the developed fresh services and strategically plan new services of Shanghai Telecom.

3. Continue to press ahead with various innovative services within the company as a whole. Timely apply the innovative fruits to actual practice. Set up special award for innovative services and nurture the corporate culture that encourages innovation.

4. Implement branding projects systematically and in phases to consolidate and rationalize all the existing brands of Shanghai Telecom. Based on the specialized brand management, create the overall corporate brand of Shanghai Telecom and industry-leading service brands.

5. Prepare quality control handbooks and further improve the product instructions currently available. Nurture the quality-oriented corporate culture within the company, encourage employees with excellent service performance and arouse employees' fervor of dedication.

6. Establish improved feedback, evaluation and correction systems for service quality control to improve the service quality of Shanghai Telecom with scientific means.

VI. Network Orientation

Communication networks, being the physical basis for sustainable development, are the media for Shanghai Telecom to support service provisioning and implement value conversion.

Shanghai Telecom is dedicated to building first-rate communication networks, provide info-communication and information services under the unified plan of China Telecom, meet customer needs for info-communication services, further enhance the utilization of network resources and realize full-scale improvement of the corporate values.

Value Conversion

1. Network evolution. Shanghai Telecom will pay close attention to the trends of networking technologies, evolve the networks in the same direction of the world telecom industry, energetically explore and employ new networking technologies to get networks integrated, broadband, intelligent, personalized and mobile.

2. Network deployment. Shanghai Telecom will follow the market-oriented principle featuring "sophistication, integrity and unification" and deploy complete, efficient, flexible, reliable and integrated networks that can continually grow for info-communication services.

3. Network capability provisioning. While ensuring universal services, Shanghai Telecom will further improve rapidity and quality for service provisioning, support SLA-based differentiated services and provide effective assurance to info-communication services. 

4. Network operation. The network operation of Shanghai Telecom will center on the targets of "quick response, adequate support and best cost-effectiveness", ensure implementation of customer-centric operation mode, speed up market response, enhance the capabilities to cope with emergency and assure services; implement differentiated services in resource allocation, maintenance, communication quality and response time limit to raise the end-to-end service level in a full scale; further promote deployment of integrated and centralized maintenance architecture for local networks, optimize business operation and build up new maintenance architecture with high efficiency.

5. Network security. Shanghai Telecom take "prevention, discover, response and restoration" as focus of attention for network and information security, follow the world trends of IT, build up security assurance system that is efficient and reliable, self-developed and adaptive to risks.

Critical Success Factors

1. Understand policies and settings. After China's entry to the WTO, telecom markets are under pressure of opening up to a full scale; government will toughen the regulation over telecom industry. Network development must adapt to both regulatory policies and competition.

2. Select, master and employ new technologies. As arranged by China Telecom (Group) Corporation, Shanghai Telecom have a good understanding of the current status of its network resources, study trends of networking technologies, master the key technologies like broadband, mobile, data and NGN, that have direct bearing on the development strategy of Shanghai Telecom and reduce the risks of technology selection. For the sake of customer needs, networks should be prospective and consistent to keep enhancing the capabilities to convert new networking technologies to service enablers. 

3. Networking capabilities for service diversity. Networks should fully meet the requirements of service diversity and personalized needs. Improve network capabilities for fast implementation of integrated services in line with the development of telecom technologies and fully meet customer needs. 

4. Manage existing network resources. Network resources should be under centralized management and unified allocation. Network resources should be optimized to make use of existing resources and increase the operation efficiency of network resources.

Key Action

1. Directed by the network development strategy of China Telecom (Group) Corporation, construct broadband networks with multimedia services as core, in accordance with the NGN evolution strategy of China Telecom (Group) Corporation, to implement convergence of various service networks including Internet and PSTN for migration to info-communication networks.

2. Energetically deploy wireless networks, enhance the coverage of wireless networks, improve mobility of terminals, promote services like PHS (Little Smart) and WLAN, and launch 3G services in due course.

3. Build Asia-Pacific Internet Exchange (APIX) and communication hub to provide POP services, communication transit services and Internet services from countries or regions of the Asia-Pacific and push forward the deployment of communication networks in the Yangtze River Delta.

4. Optimize existing networks, improve and rationalize the networking layout and structure, improve utilization of existing networks and maintain the networking edges of Shanghai Telecom in comprehensive communication capabilities over the local counterparts. 
 
5. Keep improving crisis management for networks. Further improve network operation process and process control procedures in combination with BPR and ISO and TL9000 quality control activities, strengthen network management, improve various pre-planned emergency schemes and enhance the capability to cope with sudden events.

6. Implement "five centralized measures" for network maintenance. Speed up deployment of network resource management system and process monitoring and control system. Fully push forward deployment of comprehensive centralized network maintenance architecture, take centralized management and centralized network monitoring and control as the breakthrough points, implement immediate response with networking capabilities to fix faults for timely restoration.

VII. Management Upgrade

Management upgrade is to standardize business operation, clarify management objectives, optimize management process, and improve management measures to ensure efficient, accurate and appropriate management. 

Shanghai Telecom will, through upgrade of management capabilities, enhance the abilities to consolidate resources to support business development and acquire sustained competitive edges.

Value Conversion

1. Implement organizational evolution. Through lean organizational structure, management business project and comprehensive functions, the corporate organizational formation and business management architecture should constantly adapt to the market changes and the corporate development strategy.

2. Value creation with reform. The all-round reform in the company contributes to better performance. The company will, through increased efficiency of business management, make use of available resources and increase new resources to create new growth engines.

3. Optimize resource allocation. Take the centralized management of key resources like networks, talents, funds, and information as the breakthrough point to realize efficient allocation of various resources.

4. Exhibit system effects. Innovation in mechanism will give the company sustained vitality. Promotion of the corporate management and business process reengineering (BPR) will help to build well-coordinated process and organizational architecture. Improvement of the corporate management information system will help the company to better react.  

Critical Success Factors

1. Corporate culture full of vigor. Our corporate culture should link tradition with future, has its roots in the characteristics of state-owned enterprises and the actual situation of telecom industry, learn from other's strong points, and pursue personalized development. Excellent culture with the core values - "reform and innovation, seeking truth and being practical, sincerity and credibility for cooperation and jointly creation of values", should be shaped based on the crystallization of wisdom of the company - "Blue-color Culture", "Loop Theory" and the like, and eventually converted to competitive edges of the company.

2. Coordination of four-dimension management. Highlight coordinated management in four dimensions of operation, customer, region and product so that our organizational structure will create maximum values all the way in the process of constant reform.

3. IT-based management. Shanghai Telecom will further highlight IT-based management in the corporate strategy, strengthen information infrastructure, and prioritize IT applications. The advanced corporate IT-based management system should be planned and deployed in accordance with the corporate IT-based management strategy to fully support corporate operation and management.

4. Balance of management reform and stable development. Properly deal with the relationship between reform, development and stability, lay stress on "innovation" and "harmony", and embody our unique management expertise with steady paces of development.

5. Optimize corporate core management process and business process. Possession of constantly enhanced thinking and the methods for improvement is the real value brought about by BPR and one of the key foundations for the company to survive. 

6. Coordinate all the service units and maximize the value of the company as a whole. With the limited corporate resources, the self-development of all the service units should not break away from the development of the company as a whole. Information and knowledge sharing between all the service units should be strengthened, guided by the overall strategy of the company to generate coordinated effects through rational allocation of the corporate values.

Key Action

1. Work out the overall corporate strategy, business and functional strategy and operation strategy, making strategies a continual process to enhance the abilities to perceive, implement and control the strategies.

2. With guidance of the strategic objectives of Shanghai Telecom and a starting point of efficient operation of core business process, adjust and optimize organizations and functions, streamline business process and value chains to shape organizational structure with front and back stages featuring "market oriented, customer-centric and benefit-hunted".

3. Establish management support architecture appropriate to the core process. Enhance functional management to support and control the core processes of the company with the principle of "strategic control, resource allocation, sufficient operation and performance guarantee".

4. Establish the corporate management institutions appropriate to the core organizational structure. Promote standardized corporate operation and reduce the costs of coordination and transaction in the corporate business process.

5. Deepen overall budge management, use the value as the basis for prediction, decision-making and process control of the corporate business activities, to rationalize corporate resource allocation, enhance the economic benefits and management level and increase the strength of the company as a whole and the competitive edges.

6. Push forward innovative measures for payment incentives, performance evaluation, employees' career development, competition-for-post, education and training, etc., optimize staffing structure and tap the potentials of the corporate human resource.
 
7. Deepen internal value chain management and enhance performance management and incentive measures. All the corporate business management, department responsibilities and the corporate strategy should be organically combined. Through quantitative key performance indicators (KPI) evaluation, performance-oriented payment architecture, development of corporate teamwork culture with core value as the main body, build fair incentive mechanism and team solidarity. 

8. Build up dynamically enhanced BPR model to generate concerted effects between BPR and associated managerial innovation and innovative service items and form a mechanism with long-standing effects.

- 作者： zhangliping 访问统计：　2005年01月23日, 星期日 20:58 加入博采