TCQ011217BJ(GB)1KeyStrategicChangeThemes(1/2)StrategicChangeThemes*Preliminaryconsideration,furtherdiscussionwithseniormanagementrequiredKeyStrategicInitiatives*1.Providedifferentiatedproductsandservicestocustomersineachsegmenttomeettheirchangingneeds2.Promotegrowthofnewbusinessesthroughinnovation3.Selectivelyenterintothenorthernmarket4.ProactivelymanageregulationtodriveandinfluenceregulatorypolicytoChinaTelecom’sadvantageCentralizemanagementofkeyaccountsandclearlydefineresponsibilityandaccountabilityinkeyaccountmanagementProvidedifferentiatedservicesbasedonrevenuecontribution,servicecostsandneedsofdifferentcustomersegmentsGivemoreindependencetonewgrowthbusinessesandclearlydefinetheirroles,responsibilitiesandaccountabilityEstablishtransparentreviewprocessfornewbusinesses,whicharedifferentfromthoseforthetraditionalbusinessesinordertodrivehigh-speedgrowthfornewbusinessesProvidenationalend-to-endservicetokeyaccountsthroughleasednetworks(inthenorthernprovinces)inshort-termEstablisharigorousreviewprocesstoconsideradditionalentrystrategiessuchasacquisitionofbroadbandresidentialcommunitiesorconstructionoffibertothebuildingCentralizeregulatorymanagement1.11.22.12.23.13.24.1ExternalTCQ011217BJ(GB)2KeyStrategicChangeThemes(2/2)StrategicChangeThemes*Preliminaryconsideration,furtherdiscussionwithseniormanagementrequiredKeyStrategicInitiatives*5.Achieveworld-classcapitalandoperationalefficiency6.DrawtalentedindividualstoChinaTelecomandcreateanenvironmentforthemtogrowanddevelopEstablishrigorouscapitalplanningandbudgetingprocessesEstablishperformancemanagementprocesstotrackinvestmentreturnsCentralizepartsofpurchasingandstandardizepurchasingproceduresCentralizebackbonenetworkmanagementwithanationalmonitoringsystemandlocally-basedmaintenanceforceEstablishperformancemanagementandevaluationprocessesandcorrespondingcompensationandincentivesystems5.15.25.35.46.1InternalTCQ011217BJ(GB)3ChinaTelecomneedstoimproveexistingorganizationandprocesstoensuretheimplementationofstrategicinitiatives.KeystrategicinitiativesCurrentstructuralbarriersPotentialoptionsfororganizationalchanges•Currentorganizationalstructureisnotcustomerandmarketoriented,resultinginslowresponsetomarket•Lackofcleardefinitionofroles&responsibilitiesatdifferentlevelsandbetweendifferentdepartments,e.g.dataandvoicedepartmentscompetingforthesamekeyaccounts•Centralizekeyaccountmanagement,e.g.,establishseparateBUforkeyaccountsBUandsetupsystematickeyaccountmanagementprocessesateachlevelofthecompany•Lackofcoordinationinthedevelopmentofnewproductsindifferentregions•Geography-orientedcorporatestructuremakesitdifficulttoensureconsistentimplementationofnewbusinessdevelopmentstrategiesfromcorporatecenterdowntothelocalloops•AsChinaTelecom’srestructuringplanhasjustbeenfinalized,CThasnotformulatedaclearstrategyforthetworegions,norsetupthenecessarystructuretoimplementfuturestrategies•SelectivelyreorganizenewbusinessesintoseparateBU’s,e.g.,independentyellowpageandpayphoneunits•Inthenearterm,useexistingorganizationtoselectivelyenterthenorthernmarket,e.g.,relyonkeyaccountBUtodeveloplargecorporateclientsinthenorthCentralizemanagementofkeyaccountsandclearlydefineresponsibilityandaccountabilityinkeyaccountmanagementProvidedifferentiatedservicesbasedonrevenuecontribution,servicecostsandneedsofdifferentcustomersegmentsGivemoreindependencetonew...
