某公司外包投资项目咨询报告(PPT 115页).ppt

ENTRYFORPROFITTRANS-COSMOSINC.CHINAENTRYSTRATEGYPRESENTATION,February8,2001,AGENDA,ExecutiveSummaryCallCenterBusinessMarketOverviewCCCustomerSegmentationIn-houseusersOutsourcersDemandCustomerEconomicsCompetitionRecommendationsSuccessbusinessmodelPartneringstrategyE-CommerceMarketOverviewTCITianjinCurrentSituationAnalysisRecommendations,AGENDA,ExecutiveSummaryCallCenterBusinessMarketOverviewCCCustomerSegmentationIn-houseusersOutsourcersDemandCustomerEconomicsCompetitionRecommendationsSuccessbusinessmodelPartneringstrategyE-CommerceMarketOverviewTCITianjinCurrentSituationAnalysisRecommendations,CHINAISBECOMINGAHIGHLYDYNAMICCCMARKET,Chinascallcentermarkettookoffsince1998withanannualgrowthrateover100%Non-pagingmarketsizereached54,000seatsin2000HoweverpastgrowthwaslargelydrivenbydemandsfromadministrativedrivensectorOver60%ofthenewCCdemandcomesfromfourpillarindustries:Banking,PostServices,Fixed-lineTelecom,andInsuranceDistinctivepurchasingbehavioridentifiedforthesepurchasesFuturegrowthwillbepropelledbyserviceorientedandoutsourcingsegmentsServiceorientedsegmentexpectedtobe50%oftotalCCmarketOutsourcingmarketwillgrowatleast50%ayearforthenextfewyearsHoweverlargevarianceexistsforoutsourcingsegmentgrowthOverall,ChinaCCmarketisexpectedtoreachover130,000seatsin2004and340,000seatsin2010,CCOURSOURCERSAREEMERGINGBUTSTILLEXPLORING(I),Currently,CCoutsourcingbusinessisbrandnewinChinaNomorethan30companiesprovidingmerelyabout3,200seatsinserviceOver70-80%supplyconcentratedin4majorcitiesFutureoutsourcingdevelopmentishighlydependentoncurrentplayersperformanceandstrategiesPotentialcustomersconcernedaboutquality,confidentiality,informationprocessingability,HR,andpriceGrowthwillfluctuatewidelyaccordingtotheindustrysabilitytosatisfycustomerconcernsandrequirementsnowInshortterm,competitionwillbeminimumduetohighlydifferentiatedpositionsandlargenumberofunexploitedpotentialoutsourcingcustomersInmediumterm,pagingcompaniescanbepowerfulanddesperatecompetitorsinthelow-endoutsourcingmarketThatmightdistorttheindustryprofitabilityandtriggerviciouscompetitionHoweverhigh-endoutsourcingmarketmightbeintact,Currently,onlylow-price/standardservicevendorsareprofitableUtilization,andtherefore,long-termcustomers,isthekeyforprofitabilityHowever,high-pricedoutsourcingsolutionsnotwidelyacceptedbythemarketButinthelong-run,webelievehigh-endserviceswillbevaluedbycustomersWeareencouragedbyrecentpositivenewsonclientslong-termcommitmentstohigh-endoutsourcersWithChinaspendingWTOEntryandcontinuedeconomicgrowth,webelieveitsthedirectionHigh-endoutsourcerscanwinthegamebyaggressivelyestablishinglong-termclientbase,andtargetingvariousoutsourcingopportunitiesalongthevaluechainFivesuccessfulstrategiesidentifiedfornewcustomerdevelopmentTelemarketingandvalue-addedinformationservicemostlikelytobeoutsourced,CCOURSOURCERSAREEMERGINGBUTSTILLEXPLORING(II),TCISHOULDPARTNERWITHRIGHTLOCALCCOUTSOURCERS,ApartneringstrategyisessentialforTCItocapturethegreatopportunitiesinChinaTCIlacksabunchoflocalcapabilities,whiletimeiscontingentTCIshouldtargetbothmoneymaking,andmoneylosingtechadvancedoutsourcersduringnegotiationprocess,basedontwoplausiblepartnershipstrategiesMoneymakingones:shareprofitsandleveragelocalstrengthMoneylosingones:controlandnegotiateforabargaindealConsideringthelimitednumberofcandidatesinChinaandTCIstightschedule,abroadersearchcanstrengthenTCIsnegotiationpositionFivepromisingoutsourcersidentifiedduringtheinterviewprocessMoneymakingones:ChinaMotion,800Teleservices,andCompaq-StarMoneylosingones:TCY,ITSShanghai,EC:ONLYSOFTWAREFIRMSANDSIsWORTHPURSUING,Althoughunderbooming,ChinaE-CommercemarketareexperiencingbottlenecksOnlinepopulationandrevenuesgrew10timesinthepast3yearsHowever,macro-environmentandinfrastructureareproblematicandonlyfewICP/ISPsaremakingmoneyICP,ISPandtechnologycompanies,asasector,arenotworthTCIspursuitICP:MarketisdownwhilemostChinaICPsarestillattheirearlystagedevelopmentISP:Highlyfragmentedandregulated,whichsuffocatebothforeignparticipationandprofitabilityTechcompanies:SuperioronescanhardlysurviveinChinaHowever,severaltopventuresintheabovesectorsarequiteinteresting,whichareidentifiedandillustratedindetailforTCIsfurtherinterestICP:;S;A;DISP:263Net;Eastnet,TCI-TJ:RSTRUCTURINGANDBUILDINGSTRATEGICALLIANCES,TCI-TJexperienceddifficultiesduetobothpromotionandmanagementissuesThoughimproving,thefirmisintrinsicallyuncompetitiveinChinamarketItshouldrestructureforbetterperformanceRedefinecorporatemissionsandstrategiesRestructureprojectarrangement,reporting,measurementandincentivesystemsRefocusitssalesonJapanesecompaniesinChinaandinJapanandfindstrategicallianceforTCIsChinaexpansionTCIshouldonlypartnerwithprestigiouslocalsoftwarecompanyorsystemintegratorsWisewayscreenedallthepotentialcandidateslistsandfunneleddown5mostpromisingcompaniesforTCIsfurthercontactLongshine;GlobaleForce;eBIS;ModernComputer;HuatengSoftware,AGENDA,ExecutiveSummaryCallCenterBusinessMarketOverviewCCCustomerSegmentationIn-houseusersOutsourcersDemandCustomerEconomicsCompetitionRecommendationsSuccessbusinessmodelPartneringstrategyE-CommerceMarketOverviewTCITianjinCurrentSituationAnalysisRecommendations,CCMERELYABUSINESSPRACTICEBEFORE1997,Hightelecomcharge,Lowphonepenetration,Weakserviceattitude,Widespreadindustrymonopoly,CommercialCClessthan10,000seatsin1997(2),Phonecallcharge(centsperminute),China,US,Phonepenetration(%),#ofphones(1)(million),1997,82,53,99,229,AutomotiveExample:ExpertSurvey1997,Price,Competitionfocus(%),(1)Fixedline+mobile(2)Excludingabout50,000seatsinpagingcompanySource:WorldDevelopmentReport1999/2000;ChinaAutoMarket1997;JardingFlemingResearch;interviews,Quality,Service,Style,NationalmonopolyBankingTelecomInsuranceUtilitity,RegionalprotectedSteelAutoPetrochemicalTobacco.,Monopolizedindustryestimated55%ofindustrialoutput,Highertelecompenetration,COMMERCIALCCTOOKOFFSINCE1998EspeciallyinNon-PagingServiceSector,Penetration(%),Year,CAGR,FixedlineMobile,37%83%,Non-pagingCCseats(000),Year,CAGR=129%,Intensifiedcompetition,MostindustriescapacityoverproductionDecliningretailprices,Year,GDPindexRetailpriceindex,Index,Growingawarenessoftechnology,Internetusers(mio),E-Commercerevenue(US$M),Graduallyreducedtelecomfee,Source:JardingFlemingResearch;ChinaStatisticsYearbook;interviews;OECD;ChinaTelecom,Longdistance(RMB/min),(1.2),(0.8),(1.0),(0.7),CCINDUSTRYWILLREACH330-370KSEATSIN2010,Illustration,IdentifymajordrivingfactorstoCCadoption-marketcompetitionandserviceawareness-telecomchargesandphonepenetrationQuantifyrelationshipsbetweendriversandCCadoptionhereweusedUSbenchmarkProjectCCdevelopmentbyforecastingdevelopmentofdriversProjectCCpenetrationinmajorusersindustries-banking,telecom,insuranceAddupnumbersofeachindustrytogiveaCCmarketoverviewInterviewindustryexpertsorknowledgeableindustrypractitionersfortheiropinionofCCmarketgrowth-systemintegratorsandexperts,2004projection(1)(000seats),158132145,2010projection(1)(000seats),368337N.A.,Drivingfactoranalysis,Bottom-upanalysis,Expertsopinions,(1)Withoutpagingcompany,TOP-DOWNAPPROACHREVEALSAPROMISINGENDGAME,Phonelineper1000people,CCagentsper1000people,USbenchmark,Y=0.00146X+4.79,Deflatedtelecomfeeindex,Phonelineper1000people,Chinaphoneline,Year,Non-pagingCCseats(000),Source:USTelephoneStatistics;Datamonitor;MIIdata;ChinaStatisticsYearbook,1998,99,2000,01,04,10,REDUCINGTELECOMCHARGESWILLBOOSTFIXED-LINEADOPTION,Backup,Competitionpushesfurthertelecomreduction,Mostalternativesatleast50%cheaperIP,internetphonecall,“callback”servicesMinistrydeterminedtofurtherreducetelecomcharges“Currenttelecomchargestilldoesnotreachitsoptimumstageyet”-MinisterofMII,Telecomreductionprojection,Phonepenetrationper1000,Deflatedpriceindex(1),Phonelineper1000people,Year,(1)PricedeflatedbyGDPindexSource:ChinaTelecomChargesPolicyBook;BCGanalysis,TELECOMISTHEMOSTSIGNIFICANTCCUSERNOWBottom-upAnalysis,Industry,TelecomMobileBankingInsurancePostserviceManufacturingComputerAirlineSecurityCourierHomeapplianceTVsellingOthersOverall,Projectedseats,CAGR,200025,0007,6674,5452,0001,6001,5018005942572402403006,67551,419,200435,71422,85711,1003,7606,0007,5195,2504,1004,1581,0002,4601,00026,669131,588,201041,66750,00047,0009,85020,83325,18414,0009,60032,6003,3338,8002,00071,965336,832,2000-049%31%25%17%39%50%60%62%101%43%79%35%41%26%,2004-103%14%27%17%23%22%18%15%41%22%24%12%18%17%,Source:interviews;onlineresearch;expertsopinions;BCGanalysis,EXPERTOPINIONSREVEALAMARKETOF145,000IN2004,“Fastdevelopmentisexpectedtocontinueinthenextfiveyears.Ibelievethatcallcentersseatswillgrowat30%ayearforthenextfiveyears(whichmeans145,000in2004)”Director,CTIForum“Comparedto1999,in2000callcenterseatsincreasedby142%,or16,000seats”ChinaComputerNews“Inthenextthreeyears,weprojectthatcallcenterseatswilldouble.Itsourconservativeestimate.”ManagerofBusinessDevelopmentDept,Huawei,Source:BCGinterviews,AGENDA,ExecutiveSummaryCallCenterBusinessMarketOverviewCCCustomerSegmentationIn-houseusersOutsourcersDemandCustomerEconomicsCompetitionRecommendationsSuccessbusinessmodelPartneringstrategyE-CommerceMarketOverviewTCITianjinCurrentSituationAnalysisRecommendations,CHINACCUSERBASEVERYDIFFERENTFROMU.S.,Selectedindustryexplanation,TelecomChinatelecomcallcenterinvestmentisstillquitegovernmentdriven.Topromote“189”serviceline,MIIdemandcallcenterateachcity/countylevelManufacturingManufacturingCCusagestillnotwidelyadoptedyet.Moststate-ownedcompaniesareunwillingandunabletoinvestinserviceRemoteshoppingAlthoughremoteshoppingisthebiggestCCuserintheUS,itsmerelythecaseherebecauseofinconvenientpayment,creditanddeliverysystem.Also,shoppingconvenienceinmetropolitanareaandgeneralpoorconsumptionpowermakeremoteshoppingeconomicallyunsound,OthersOutsourcing,SecurityTVsellingNewsInterviews;onlineresearch;expertopinions;BCGanalysis,CCMARKETROUGHLYSEGMENTEDINTOFOURCATEGORIESAccordingtoAreaofCCUsage,andWillingnesstoOutsource,Selectedindustryexamples,Willingnesstooutsource,High,Low,Service-oriented,Outsourcing,Genericservice,Admin-driven,Securities,Homeappliance,Computer/technology,Courierservice,Publication,TVselling,Messaging,Travel,Simpleordertaking,Paging,Telecom,Insurance,Bank,Postservice,Communityservice,Utility,Corearea,Non-corearea,AreaofCCusage,THREECRITERIATODISTINGUISHCOREANDNON-COREAREA,Industry,CoreArea,SecuritiesCourierserviceComputer/technology,“GreyArea”,HomeapplianceBankingInsurancePublicationTelecomTraveling,Non-coreArea(generic),PagingserviceMessagingTVsellingUtilities,Functionality,TechnicalassistanceAftersalesserviceCustomercomplaintsettlement,Sourcing/suppliercoordinationCustomerinquirysettlementTelemarketing,MessagedeliveringSimpleordertaking,CallCentersimpacttooverallbusiness-Core:WhenCCfunctioniscriticaltotheperformanceoftheindustryConfidentialityrequirement-Core:Iftheindustry/functionalitycommandsstrictconfidentialityCallCenteroperationalcomplexity-Core:IfoperatingCCinthisindustryrequiresgreatsophistication,Criteria,Manyindustrieshavebothcoreandnon-coreareas,Backup,MANAGEMENTANDOWNERSHIPSTRUCTUREAFFECTWILLINGNESSTOOUTSOURCE,Considerations,OwnershipstructureCompanysizeCompetitionManagementsophistication,Reasons,SOEsconsidereconomicslessand“managementauthority”more-Prefertobuildin-houseinordertoincreasemanagementpowerandassetsCallCenterinvestmentislesssignificanttolargecompanies.Also,theiragentsneedscanjustifyasizablein-houseoperationMonopolizedindustrytendstobeadmin-driven,ortodisregardCCsolutiontotallyPoorlymanagedcompanies/industriesseemuchlessvalueofcallcenterstotheirbusinessimprovement,SOE(1)LargeMonopolizedindustryPoorlymanaged,PrivatelyownedforeigninvestedSmall-to-mediumMarket-driven,competingindustryWellmanaged,Lesswilling,Morewilling,(1)SOE=State-ownedenterprise,Backup,AGENDA,ExecutiveSummaryCallCenterBusinessMarketOverviewCCCustomerSegmentationIn-houseusersOutsourcersDemandCustomerEconomicsCompetitionRecommendationsSuccessbusinessmodelPartneringstrategyE-CommerceMarketOverviewTCITianjinCurrentSituationAnalysisRecommendations,ADMIN-DRIVENSEGMENT:MOSTIMPORTANTFORNOW,High%intotalnewCCdemand,Drivenby“Pillarindustries”,DemandsurgedinagroupofChinasimportantindustriessince1999,aimingtoimproveservicelevelBankPostserviceFixed-linetelecomInsuranceRequiredmostlymid-to-highendcallcentersolutions(Nortel,Lucent,IBM,Huawei)Big,monopolized,profitablecorporationsHighcostoffailureBudgetapprovalfromaboveOfteninconjunctionwithstructuralreform,4.9,#ofnewCCseats(000),Year,Admin-driven,11.2,29.5,TotalnewdemandAdmin-driven,66%,76%,62%,Source:BCGmodeling,HOWEVERDEMANDEXPECTEDTOFLUCTUATEINTHEFUTURE,UnderlyingReasons,Admin-drivensegmentorderscomeinbatchesCallcenterconstructionproposalofteninitiatedbygovernment-controlledcorporateheadquarters,orevenministriesBranchcompaniesrequiredtocompletecallcenterconstructionwithinsimilarperiodoftimeAdmin-drivencorporationstendtoover-investBranchofficesincentivizedtouseupthebudgetadvisedbyheadquarterHoweverfewadmin-drivenindustriesareexpectedtoinvestincallcentersforthefollowingyearsOnlytwoindustriesexpected:utilityandrailtransportation,#ofnewcallcenterseats(000),Year,Bankingexample,Source:BCGmodeling;interviews,literatureresearch,Admin-driven,UNIQUETHREE-TIERDECISIONMAKINGPROCESSSystemIntegratorsShouldPutEffortstoAll,Top-downinitiatives,AdvocateimprovingservicestandardMake“servicefacilities”anevaluationcriteriaMaysuggestcallcenterasanoptionDeterminerollingoutcallcentersinthecorporationRaisealistofrecommendedsystemintegratorsPresentthelisttobranchcompaniesSetabudgetfordifferentbranchcompaniesDecidecallcentersizeandsophisticationbasedoncorporatebudgetNegotiateandselectasystemintegratormostlysuitabletothebranchsrequirements,SIshouldpayattentiontoMinistrysrecentserviceimprovementincentive,Ministry,SIshouldapproachpromisingcorporateheadquartersinadvancetogetthenameonthelist,Corporateheadquarter,SIshouldputmosteffortstoinfluencebranchcompanysselection,Provincial/regionalbranches,Admin-driven,OUTSOURCINGALMOSTNEVERANOPTIONFORADMIN-DRIVENCOMPANIES,OutsourcingisnotconsideredanoptionforCCadoptionatcorporatelevelWorriedaboutunforeseeableconsequencesMoneysavingisnotapriorityforthesebig,monopolizedSOEsUnabletodistinguishdifferentconditionsindifferentgeographysomeareasdonthavesatisfactoryoutsourcersPoliticallyriskyforbranchmanagerstobe“creative”Ifusingoutsourcers,branchmanagershavetobearallresponsibilitiespotentialforfailureisconsiderableCCconstructionbudgetwouldbeinvainifnotusedupwhileoutsourcingbudgetneedstobereportedforupperapprovalAndthemoneyisnotmineOnlyexceptionisGuangzhouMobileCompanysoutsourcingofits“MobileSecretary”serviceBynatureapagingservice:Idealtobedonebyapagingcompany“MobileSecretary”serviceisnotplannedandbudgetedfromthecorporation(ChinaMobile)GuangzhousbusinesspracticeismoreliberalthanrestofChina,Admin-driven,SERVICE-ORIENTEDSEGMENT:ADRIVERFORLONG-TERMCCPENETRATION,Rapidgrowthinthelong-term,Widespreadadoptionexpectedinmarket-drivenindustries,HeatedcompetitionwillstimulateCCusageinmass-marketindustriesWTOwillnotonlyliftvariouslocalprotectionism,butalsointroduceglobalcompetitionCurrentover-capacitysituationwontalleviateforthenextseveralyearsTherefore,servicewillbemoreandmoreimportanttocreatedifferentiationWithbettermarketenvironment,consumersareeducatedtoappreciateserviceWTOwillintroduceworld-levelserviceconcepts,includingcallcenter,toChina,Totalnon-pagingCCseats(000),Service-oriented,10,Year,50,337,TotalCCseatsService-oriented,26%,24%,50%,132,42%,Source:Interviews;onlineresearch;expertopinions;BCGanalysis,MOREINDUSTRIESARELIKELYTOADOPTCCOVERTIME,CCAdoptionArea,Homeappliance,Automotive,Computer,Mobile,Securities,Retailing,Petrochemical,Distribution,FMCG(1),Taxi,Textile,Machinery,Chemical,Publication,Healthcare,Government,Entertainment,Broadcasting/TV,Aviation,GeneralTechnology,High,Moderate,Low,Competitionintensity,High,Horizontalwillextendovertime,Importanceofservice,(1)Fast-movingconsumergoodsSource:Interviews;literatureresearchsummaries;BCGanalysis,Horizontalwillextendovertime,Service-oriented,COMPANIESQUITESELECTIVEONCCUSAGE,Notblindlychasingafterhigh-endsolutions,Integratingcallcenterswithitscorebusinesspractice,Interviewssummary,Source:Interviews,%,Investmentperseat(000RMB),Interviewssummary,%,Aftersalesservice,Ordertaking,Informationservice,Telemarketing,10-70,Service-oriented,VERYCAUTIONSONCCOUTSOURCING,Price,“Thepriceforoutsourcingistoohighnow,forexample,95Infocharges15,000RMB/month(180,000RMB/year)perseat,mostcompaniescannotundertakeit.”SalesManager,SIEMENS,Quality,“Chinesecallcenteroutsourcershaveinadequateservicementality,wemostlyworriedabouttheirservicequality.”HotLineSupervisor,EPSONChina,Humanresources,“Ordinaryoutsourcersagentscanonlyhandlesimplequestions.Itrequiresexperiencedengineerstodealwithcomplexproblems.”HotLineSupervisor,EPSONChina,Confidentiality,“Weoncewantedtooutsourcemanagementto95Info,butsalesdataaresecrettothecompany,sowegaveuptheoutsourcingoption.”CallCenterVice-Manager,FounderComputer,Informationprocessing,“Ourcallcenterismainlyusedtoprovidecross-departmentinformationformanagement,outsourcingcallcentermightmaketheinformationprocessinglosingcontrol.”ExecutiveOfficerBeijing,GuangdongMacro,Majorconcernsaboutoutsourcing,Theiroutsourcingpossibilityhighlydependsonoutsourcersabilitytosatisfytheirconcerns,Source:Interviews,Service-oriented,GENERICSERVICE:AGENERALLYDECLININGSEGMENTConsistsMainlyofPagingServices,Genericservice,Decliningpagingservicesegment.,Becauseofstrongsubstitution,#ofpagingseats(000),Year,Pagingservicemarkethasbeengraduallyerodedbywidespreadmobileandinternetcommunicationservicesfulfilledpagersmessagefunction,butbeingeithermoreeconomical(internetcommunication),ormoreversatile(mobilephone)pagingcustomerswilldeclinefrom50millionin1998to20millionin2010Small-to-medium,non-scaleablepagingcompaniesarebeingsqueezedoutofbusiness,#ofcompanies,19982000,20001736,2004500,2010200,Source:Interviews,GENERICSERVICEDEFINEDASACROSSOFINDUSTRIESANDFUNCTIONS,Genericservice,Functionality,MessagetakinganddeliveringSimpleordertakingStandardtelemarketingStandardcustomerquestionansweringStandardva