1、CHINA MOBILE(HK)LIMITED Human Resource StrategyShanghaiFebruary 15,200XTHE BOSTON CONSULTING GROUPCONTENT Hypotheses on China mobile phone market BCGs approach to HR strategy Project approach and structure BCG qualification and experience AppendixSelected CVsTHE EVOLUTION OF THE MOBILE MARKET WILL C
2、REATE MAJOR STRAINS ON HUMAN RESOURCES Historically,the growth challenge has been simpleServe pent-up demand with one basic product“Build the network,activate subscribers,collect the payments”Increasing competition and new technologies mean dramatic challengesTremendous emphasis on marketing and sal
3、es-Intense warfare requiring strategy and tacticsIncreasing importance of customer relationship management and serviceThe need to develop partnerships and create new businessesIncreasing pressure on technical abilities-broader definition of technologyIncreasing pressure on overall cost position and
4、productivityNeed for commercially-driven senior management,working as a team These strains create a need for a fundamental rethink of HR strategyWITHOUT BUSINESS-DRIVEN INPUT,AN HR STRATEGY DEVELOPMENT EXERCISE WILL FAIL The strategic changes in the mobile market bring revolutionary change,not evolu
5、tionary change One dominant factor is that these changes will require the rapid creation of entire new job families,and rapid change in the requirements of existing job families As a result,the overall people mix of the company will be dramatically different in the future than it is today.The mix wi
6、ll also be quite different than either the“typical PRC company”or the“typical telco.”The required pace of change will also be quite different.An HR strategy that fails to take this into account will also fail.If the HR strategy fails,then the company will fail.Wrong skills to face the future competi
7、tive threatWrong overall cost structureThe best employees leaving to join the competitorsMajor missed opportunities to form new businesses and partnerships A traditional HR consulting firm will not have a clear view on the strategic changesTheir models will be based upon“typical PRC companies”and“ty
8、pical global telcos.”Neither will be sufficient,and both will have major flaws.CONTENT Hypotheses on China mobile phone market BCGs approach to HR strategy Project approach and structure BCG qualification and experience AppendixSelected CVsThe cellular telephone market in Asia in particular in China
9、 will continue to show strong growthAs a result of this growth,the dynamics of the market will be increasingly strong and will affect the Human Resource strategy of China MobileBCG has developed an integrated HR Strategy Framework that will link external market factors to the internal requirements o
10、f the organizationWe have subsequently outlined both our HR Strategy Framework as well as some initial analyses on the most relevant external factors specifically these are:WTOCompetitionTechnologyBusiness MigrationCustomer ServiceCHINA MOBILES HUMAN RESOURCE STRATEGY WILL BE AFFECTED BY A POWERFUL
11、SET OF MARKET FACTORSSummary of subsequent Proposal SectionSummarySTRONG GROWTH IN CELLULAR TELEPHONY IN ASIA.Asia-Pacific Cellular Subscribers,1990-20000204060801001201409091929394959697989900Cellular Subscribers(M)Annual Growth 75%Annual Growth 40%Note:The Asia-Pacific region includes the countrie
12、s of Northeast Asia,Southeast Asia,South Asia,the islands of the Western Pacific,Australia and New Zealand.Assumes decrease in revenue per subscriber of 5%per annum between 1996 and 2000.Source:International Telecommunications Union,Merrill LynchRevenue(US$B)347111727516889118156Asia claims 36%of th
13、e worlds cellular subscribers by 2000.AND IN PARTICULAR IN THE GREATER CHINA REGIONChina Cellular Subscribers,1991-20000102030405060708091929394959697989900Cellular Subscribers(Mn)Annual Growth 170%Annual Growth 86%Source:CCID0.050.1770.6381.573.636.8513.2324.9843.875Cellular Subscribers(Mn)GREATER
14、CHINA WILL REPRESENT AN INCREASINGLY LARGE AN DYNAMIC MARKET IN ASIANote:Sub-regional groupings include South Asia(India,Pakistan,Bangladesh,Sri Lanka),Greater China(China,Taiwan,Hong Kong,Macau)and Southeast Asia(Brunei,Cambodia,Indonesia,Laos,Malaysia,Myanmar,Philippines,Singapore,Thailand,Vietnam
15、)Source:International Telecommunications Union0%100%199019962000FJapanAustralia/New ZealandSoutheast AsiaGreater ChinaKoreaSouth Asia0.28.5370.51777Greater China(M)Total ANJTotal Asia-Pacific(M)1.233125Distribution Of Asia-Pacific Cellular SubscribersNEW BUSINESS CHALLENGES,WITH MAJOR HR IMPLICATION
16、S WILL FACE MOBILE PLAYERS IN CHINAUpcoming business challenge Emphasis on marketing and sales and intense warfare requiring strategy and tacticsIncreasing importance of customer relationship management and serviceThe need to develop partnerships and create new businessesIncreasing pressure on techn
17、ical abilities-broader definition of technologyIncreasing pressure on overall cost position and productivityNeed for commercially-driven senior management,working as a teamHuman resource implicationsThe creation of new job families with a range of new skills and talentsThe need for a clear view of h
18、ow many new employees are needed in each job family over what timeframeAn understanding of what it will take to attract,train,integrate and retain these employeesAn view of the new organizational structures and processes that are neededA view on the implications for the existing workforce,in terms o
19、f productivity,changing job definition,and retrenchmentA view of the new strategic role of HR,and the required HR capabilitiesFIVE SPECIFIC MARKET FORCES WILL CHALLENGE THE HR STRATEGY GOING FORWARDPerformance managementRequirement definitionSourcing&placementEmployee developmentLeadership&cultureWT
20、OCompetitionTechnologyBusiness MigrationCustomerServiceExternal factors affecting the organizationBCG human resource strategy frameworkBCG HR strategy framework links external market factors to internal organizational requirements21543DETAIL OF MARKET FACTORS IMPACTING HR STRATEGYWTO will further op
21、en the mobile phone marketDefined timetable establishedNew foreign investmentOpen wireline services in 6 yearsRegional market positions will come under pressureRapid introduction of 3G technology standardsTraditional borders between businesses will changeCustomer value proposition will migrateUnicom
22、 already growing fast3rd operator likely to be allowed into market by govt.Transition from 2G to 2.5G or directly to 3GRapid growth in wireless data servicesWireless data allows greater share of walletTelco and media value chains are migratingChanging success factors over timeBasis of competition sh
23、ifts to customer serviceInternational HR practices will have greater impact as foreign investment increasesIncreased pressure on employee retention from entry of new playersIncreased competition for technically qualified staffNew capability requirements around service and product developmentIntroduc
24、tion of customer service as a core skill for workforceWTOCompetitionTechnologyBusiness MigrationCustomer Service12345External factorsin detailCHINAS WTO AGREEMENT INCLUDES SPECIFIC PROVISIONS FOR FOREIGN INVESTMENT INTO THE CELLULAR MARKETUpon WTO accessionWithin 1 year of accession(originally withi
25、n 3 years under US deal.Accelerated by EU agreement)Within 3 years of accession(originally within 5 years under US deal-accelerated by EU agreement)Beijing Shanghai Guangzhou Chengdu,Nanjing ,Xiamen ,Chongqing,Ningbo ,Xian,Dalian ,Qingdao ,Taiyuan,Fuzhou ,Shenyang ,Wuhan,Hangzhou ,Shenzhen All regio
26、nsUp to 25%Up to 35%Up to 49%Market with CMCC presenceSource:US Trade representative,EU,Goldman Sacks report,BCG analysisTimelineAffected regional marketsForeign investment allowedForeign playes wanting to invest in the Chinese mobile industry have to invest in existing operatorsWTOA THIRD LOCAL PLA
27、YER IS LIKELY TO ENTER THE MARKET IN ADDITION TO FOREIGN COMPETITORSCMCCUnicom3rdplayer+Intensify internal competition to strengthen local playerOpening up to MNCsCompetition will be intensified for CMCC and Unicom even before foreign players enterMNCMarketCNC Approved CMCC and Unicom to go IPO in o
28、verseas markets to raise capital Awarded Great Walls assets (former PLA owned cellular operator)to Unicom Third cellular operator license is expected to be issued and it is widely anticipated that China Telecom will be the candidatePLA:People Liberation ArmyGovernment actions so far.Government plans
29、 going forward.WTOTELECOM OPERATORS ELSEWHERE HAVE BEEN HIT HARD AS COMPETITION INTENSIFIESSource:Merrill Lynch,BCG analysisSmarTone in Hong KongCellnet in the UKSmarTone share of new subscribersCellnet share of new subscribers010203040509/966 months later010203040503/96One Year LaterImpacted by lau
30、nch of competitors CDMA serviceImpacted by competitors improvement of network coverage and qualityWTOCURRENTLY CMCC DOMINATES THE MARKET BUT CHINA UNICOM GROWS FAST.CMCC currently the clear market leader.but China Unicom catching up fast93868382797776714171820212002040608010098990001(E)02(E)03(E)04(
31、E)Market share(%)CMCCChina UnicomOther62573720103171014336311016050100150200250300350400990001(E)02(E)03(E)04(E)Subscriber growth rate%UnicomCMCCSource:Goldman Sachs Report,BCG analysisCompetition.HOWEVER,UNICOM HAS NOT BUILT UP ANY SIGNIFICANT REGIONAL STRONGHOLDS SO FAR Market shareTotal#of subscr
32、ibersChina UnicomCMCCGuangdongZhejiangJiangsuLiaoningShandongFujianHenanShanghaiHebeiBeijingGuangxiTianjinHainan18%(1)(1)In CMCC(HK)s market,China Unicom took an average market share of 12%40%CompetitionALTHOUGH THE PERSPECTIVE OF STANDARD MIGRATION IS VAGUE,CHINA IS FAST APPROACHING 3G2 G(28.8K/sec
33、ond)GSM(supported by Ericsson,Nokia)PDCCDMA one(supported by Qualcomm)3 G(384K2M/second)TD-SCDMA(supported by Da Tang,Siemens)WCDMA(Supported by Ericsson,Nokia,NIT DoCoMo)CDMA 20003X(supported by Qualcomm)2.5 G(64K144K/second)GPRSCDMA20001XNow2000/20012001/2002ChinaEuropeJapanUSATechnologyWireless d
34、ata growth forecasts USWireless data growth forecasts EuropeTHE ADVENT OF WIRELESS DATA WILL DRIVE GROWTH Service Offerings Will Become More Complex As a Result010203040506020002001200220032004200520062007200820092010OVUM 1998ForresterYankeeDataquest 0999Strategy Analytics 07990102030405060200020012
35、00220032004200520062007200820092010User penetration%(1)User penetration%(1)(1)Of Total Population TechnologyEXAMPLE:I-MODE SUCCESS IN JAPAN HAS INCREASED SERVICE AND TECHNOLOGY DEMANDS ON HR Java,SSLIMT-200018(Number of users,million)1614121086420Mar.31,1999Mar.31,2000Mar.31,2001Mar.31,2002Note:i-mo
36、de users based upon DoCoMo forecast,web&e-mail users from Nikkei Market Access Jan.1999Source:Nikkei Net Business Mar.2000Mar.1999 20K usersMar.2000 4.8M users(Actual)Mar.200110M users(Estimate)Mar.200215M users(Estimate)E-mailWebi-mode Number of i-mode users exceed that of web users by Spring 2001T
37、echnologyALONG WITH THE TECHNOLOGY DEVELOPMENT WIRELESS AIMS AT A LARGER SHARE OF WALLETMarket Example:Sweden(1)Through operatorSource:SCB(Swedish Statistical Bureau);BCG analysis and estimate020406080100OtherCommunicationRecreationHealth,transport and educationHousing and furnitureFood and clothing
38、OtherCommunicationRecreationHealth,transport and educationHousing and furnitureFood and clothingOtherCommunicationRecreationHealth,transport and educationHousing and furnitureFood and clothing0204060801000204060801001G2G3GOperatorOperatorSpecial service provider(1)OperatorService providersContent pr
39、ovidersRetailersMain recipient:(%)(%)(%)Business migrationTRADITIONAL BUSINESS BORDERS CHANGE.Middle layer/packagingInfra-structure/distributionNetworkdeviceUserdeviceBroadcasting/MediaTelecommunicationPC/InternetOthersContentFilmWeb site/e-commercePCsoftwareMobilephoneTelephoneGamingVisualAudioPC h
40、ardwareSet-top boxTransmission SatelliteCATVTerrestrialMobile carrier todayPhotographyMappingCar(Navigation/ITS)BooksBroadcastingPortalValue added servicesInternettelephonyPBXSwitchLAN WANequip-mentSecurityECrelatedISPECrelatedRadioLongDist-anceRegi-onalAcc-essBusiness migration.AND TELCO&MEDIA VALU
41、E CHAINS ARE MERGING AND DECONSTRUCTING AS A RESULT Service provision Access and transferNetworkService provider AService provider BNetwork BContent AContent BContent CContent DNavigationNetworkPackagingIntegrated operatorService providers1G2G3GValue chain developmentTypical characteristicsPackaging
42、NetworkOne supplierLimited services(IN-type)Closed networkFew suppliers(usually one covering whole range)Limited services(voice IN,basic voice and text messaging)Mostly closed network with some interoperabilitySeparation between transport and service inherent in architectureMultiple suppliers in eac
43、h regionTransport commoditizedOpen communication standards between networks and servicesNetwork ASource:BCG experienceBusiness migration01020304050607080051015MARKETS FOLLOW DISTINCT PATTERNS AS CUSTOMER PENETRATION INCREASES*Koreas exceptional forecasted growth attributable to aggressive promotion
44、of CDMASource:International Telecommunications Union,BCG analysisForecasted Annual Growth(1996-2000)(%)Cellular Penetration(per 100 inhabitants)PHASE IHyper GrowthPHASE IIHigh GrowthPHASE IIIModerate GrowthIndonesiaCambodiaPakistanChinaVietnamPhilippinesThailandMalaysiaTaiwanKorea*SingaporeHong Kong
45、New ZealandAustraliaIndiaCustomer service.AND KEY STRATEGY ISSUES CHANGE OVER TIMECellular penetrationSubscriber growth(p.a.)Customer profileKey strategy issues 50%High-valueManage rapid expansionBuild out networkEstablish basic company infrastructure and processesCapture maximum market share 10%$10
46、0M Asia investmentIridium satellite projectColored pagersCellular phonesALONG WITH LEADERSHIP,CORPORATE CULTURE IS CRUCIAL TO INTEGRATE HR PROGRAMSCommon Characteristics Of Cultures Of High Performance Companies Strong customer focus orientation Proactive pursuit of improvement High trust between ma
47、nagement and employees Effective top down,bottom up communication High employee involvement/empowerment Collaboration across boundariesCONTENT Hypotheses on China mobile phone market BCGs approach to HR strategy Project approach and structure BCG qualification and experience AppendixSelected CVsThe
48、project task is significant based on our understanding of your requestIt requires HR strategy development,HR policy design and eventually a full-scale roll out and implementationBCG will initially focus on the HR strategy development phase of the projectIt lays the foundation of the overall HR progr
49、amIt provides a framework and structure for subsequent detailed HR policy design and implementationIt leaves China Mobile flexible for later phases of the projectwww.ZQZL.cn中国最大的资料库下载中国最大的资料库下载We have outlined proposed approach of the HR strategy development in this section:A three-phased approach o
50、f HR strategy developmentThe Project timelineThe Key deliverablesKey activities and a preliminary workplan for each phase-examples of methodologies to be used in the HR program designOur suggested Project team structureTHE PROJECT TASK IS SIGNIFICANT AND WILL REQUIRE SEVERAL PHASES OF WORKSummary of
