【正文】 Competition? Remendations Success business model Partnering strategy ECommerce Market OverviewTCI Tianjin? Current Situation Analysis? Remendations24ADMINDRIVEN SEGMENT: MOST IMPORTANT FOR NOWHigh % in total new CC demand Driven by “Pillar industries”Demand surged in a group of China’s important industries since 1999, aiming to improve service level? Bank? Post service? Fixedline tele? InsuranceRequired mostly midtohigh end call center solutions (Nortel, Lucent, IBM, Huawei…)? Big, monopolized, profitable corporations? High cost of failure? Budget approval from above? Often in conjunction with structural reform of new CC seats (’000)YearAdmindriven Total new demandAdmindriven66%76%62%Source: BCG modeling25HOWEVER DEMAND EXPECTED TO FLUCTUATE IN THE FUTUREUnderlying ReasonsAdmindriven segment orders e in batches? Call center construction proposal often initiated by governmentcontrolled corporate headquarters, or even ministries? Branch panies required to plete call center construction within similar period of timeAdmindriven corporations tend to overinvest? Branch offices incentivized to use up the budget advised by headquarterHowever few admindriven industries are expected to invest in call centers for the following years? Only two industries expected: utility and rail transportation of new call center seats (’000)YearBanking exampleSource: BCG modeling。 BCG analysis29MORE INDUSTRIES ARE LIKELY TO ADOPT CC OVERTIMECC Adoption AreaHome applianceAutomotiveComputerMobileSecuritiesRetailingPetrochemicalDistributionFMCG(1)TaxiTextileMachineryChemicalPublicationHealth careGovernmentEntertainmentBroadcasting/TV AviationGeneral TechnologyHighModerateLowCompetition intensityHighHorizontal will extend overtimeImportance of service(1) Fastmoving consumer goodsSource: Interviews。 CTI forum。 expert inputs。 BCG analysis44Highend outsourcers Midend outsourcers Lowend outsourcersUTILIZATION IS CRITICAL TO CC OUTSOURCER’S PROFITABILITYSimplified ModelEconomicsOutsourcerFor a 100seat call centerMoney (‘000 RMB)55%Source: Interviews。 BCG analysisHorizontal will extend overtimeServiceoriented30COMPANIES QUITE SELECTIVE ON CC USAGENot blindly chasing after highend solutions Integrating call centers with its core business practiceInterviews summarySource: Interviews%Investment per seat (’000 RMB)Interviews summary%Aftersales serviceOrder takingInformation serviceTelemarketing1070Serviceoriented31VERY CAUTIONS ON CC OUTSOURCINGPrice “The price for outsourcing is too high now, for example, 95Info charges 15,000RMB/month (180,000RMB/year) per seat, most panies can not undertake it.”Sales Manager, SIEMENSQuality “Chinese call center outsourcers have inadequate service mentality, we mostly worried about their service quality.”Hot Line Supervisor, EPSON ChinaHuman resources “Ordinary outsourcer’s agents can only handle simple questions. It requires experienced engineers to deal with plex problems.”Hot Line Supervisor, EPSON ChinaConfidentiality “We once wanted to outsource management to 95Info, but sales data are secret to the pany, so we gave up the outsourcing option.”Call Center Vice Manager, Founder ComputerInformation processing “Our call center is mainly used to provide crossdepartment information for management, outsourcing call center might make the information processing losing control.”Executive Officer Beijing, Guangdong MacroMajor concerns about outsourcingTheir outsourcing possibility highly depends on outsourcers’ ability to satisfy their concernsSource: InterviewsServiceoriented32GENERIC SERVICE: A GENERALLY DECLINING SEGMENTConsists Mainly of Paging Services Generic serviceDeclining paging service segment... … Because of strong substitution of paging seats (’000)Year? Paging service market has been gradually eroded by widespread mobile and inter munication services fulfilled pager’s message function, but being either more economical (inter munication), or more versatile (mobile phone) paging customers will decline from 50 million in 1998 to 20 million in 2023? Smalltomedium, nonscaleable paging panies are being squeezed out of business of panies199820232023173620235002023200Source: Interviews33GENERIC SERVICE DEFINED AS A CROSS OF INDUSTRIES AND FUNCTIONSGeneric serviceFunctionality? Message taking and delivering? Simple order taking? Standard telemarketing? Standard customer question answering? Standard valueadded information serviceIndustry? Paging industry? TV/catalogue selling? Utilities collection? “Secretary” servicesBackup34GENERIC CC USERS HAVE STRONG INCENTIVES TO OUTSOURCE Generic serviceCosteffective for small CC users Resolved concernsSatisfactory quality? Standard practice and trained agentsTrusted human resources? Professional agents, central recruited and trained, familiar with their jobsNo need for information processingLittle requirement on confidentiality(1) Assume 10 seats, and utilization 100%Source: CTI forum。 online research。 online research。 online research。 Datamonitor。 China Statistics Yearbook。 Huateng Software10AGENDA Executive Summary Call Center Business? Market Overview? CC Customer Segmentation Inhouse users Outsourcers? Demand? Customer? Economics? Competition? Remendations Success business model Partnering strategy ECommerce Market OverviewTCI Tianjin? Current Situation Analysis? Remendations11CC MERELY A BUSINESS PRACTICE BEFORE 1997High tele charge Low phone perationWeak service attitude Wides