【正文】 interviews, literature research Admindriven UNIQUE THREETIER DECISION MAKING PROCESS System Integrators Should Put Efforts to All Topdown initiatives Advocate improving service standard ? Make “service facilities” an evaluation criteria ? May suggest call center as an option Determine rolling out call centers in the corporation Raise a list of remended system integrators ? Present the list to branch panies Set a budget for different branch panies Decide call center size and sophistication based on corporate budget Negotiate and select a system integrator mostly suitable to the branch?s requirements SI should pay attention to Ministry?s recent service improvement incentive Ministry SI should approach promising corporate headquarters in advance to get the name on the list Corporate headquarter SI should put most efforts to influence branch pany?s selection Provincial/regional branches Admindriven OUTSOURCING ALMOST NEVER AN OPTION FOR ADMINDRIVEN COMPANIES Outsourcing is not considered an option for CC adoption at corporate level ? Worried about unforeseeable consequences ? Money saving is not a priority for these big, monopolized SOEs ? Unable to distinguish different conditions in different geography some areas don?t have satisfactory outsourcers Politically risky for branch managers to be “creative” ? If using outsourcers, branch managers have to bear all responsibilities potential for failure is considerable ? CC construction budget would be in vain if not used up while outsourcing budget needs to be reported for upper approval ? And … the money is not mine Only exception is Guangzhou Mobile Company?s outsourcing of its “Mobile Secretary” service ? By nature a paging service: Ideal to be done by a paging pany ? “Mobile Secretary” service is not planned and budgeted from the corporation (China Mobile) ? Guangzhou?s business practice is more liberal than rest of China Admindriven SERVICEORIENTED SEGMENT: A DRIVER FOR LONGTERM CC PENETRATION Rapid growth in the longterm Widespread adoption expected in marketdriven industries Heated petition will stimulate CC usage in massmarket industries ? WTO will not only lift various local protectionism, but also introduce global petition ? Current overcapacity situation won?t alleviate for the next several years Therefore, service will be more and more important to create differentiation ? With better market environment, consumers are educated to appreciate service ? WTO will introduce worldlevel service concepts, including call center, to China Total nonpaging CC seats (?000) Serviceoriented 1998 2023 2023 202310 Year 50 337 Total CC seats Serviceoriented 26% 24% 50% 132 42% Source: Interviews。 interviews Quality Service Style National monopoly ? Banking ? Tele ? Insurance ? Utilitity Regional protected ? Steel ? Auto ? Petrochemical ? Tobacco ? ... Monopolized industry estimated 55% of industrial output Higher tele peration COMMERCIAL CC TOOK OFF SINCE 1998 Especially in NonPaging Service Sector 1 . 0 % 2 . 5 %3 . 5 %6 . 1 %5 . 6 %8 . 8 %1 1 . 3 %1 4 . 5 %1997 1998 1999 2023Peration (%) Year CAGR 1022541998 1999 2023Fixed line Mobile 37% 83% Nonpaging CC seats (?000) Year CAGR = 129% Intensified petition 9192951241161081001996 1997 1998 1999? Most industries capacity over production ? Declining retail prices Year GDP index Retail price index Index Growing awareness of technology 2 . 491 9 . 84322181998 1999 2023Inter users (mio) ECommerce revenue (US$M) Gradually reduced tele fee Source: Jarding Fleming Research。 East TCITJ: RSTRUCTURING AND BUILDING STRATEGIC ALLIANCES TCITJ experienced difficulties due to both promotion and management issues ? Though improving, the firm is intrinsically unpetitive in China market It should restructure for better performance… ? Redefine corporate missions and strategies ? Restructure project arrangement, reporting, measurement and incentive systems ? Refocus its sales on Japanese panies in China and in Japan … and find strategic alliance for TCI?s China expansion ? TCI should only partner with prestigious local software pany or system integrators ? Wiseway screened all the potential candidates lists and funneled down 5 most promising panies for TCI?s further contact Longshine。 online research。 CTI forum。 China Statistics Yearbook 1998 99 2023 01 04 10 REDUCING TELECOM CHARGES WILL BOOST FIXEDLINE ADOPTION Backup Competition pushes further tele reduction Most alternatives at least 50% cheaper ? IP, inter phone call, “call back” services … Ministry determined to further reduce tele charges ? “Current tele charge still does not reach its optimum stage yet” Minister of MII Tele reduction projection Phone peration per 1000 Deflated price index(1) 11 131622324763881131451611791982203001991 1992 1993 1994 1995 1996 1997 1998 1999 2023 2023 2023 2023 2023 2023Phone line per 1000 people Year (1) Price deflated by GDP index Source: China Tele Charges Policy Book。 。 interviews。 expert opinions。 expert opinions。 China Auto Market 1997。 eBIS。 BCG analysis EXPERT OPINIONS REVEAL A MARKET OF 145,000 IN 2023 “ Fast development is expected to continue in the next five years. I believe that call centers seats will grow at 30% a year for the next five years (which means 145,000 in 2023)” Director, CTI Forum “Compared to 1999, in 2023 call center seats increased by 142%, or 16,000 seats” China Computer News “In the next three years, we project that call center seats will doubl