| Year
2003 marks the first year for the nation to implement the spirit
of 16th CPC National Congress in an all-round way and also the first
year for China Netcom Corporation Ltd. (hereinafter called 揅hina
Netcom Group? to confront the spread of all-rounded and material
competition. To do conscientiously all the tasks well that are set
for 2003 is of great importance to the promotion of sustained development
of China Netcom Group, thus ensuring the successful realization
of the strategic targets of China Netcom Group.
Nowadays, the world telecommunication industry is still facing the
most austere situation since the start of information technology
revolution, which will inevitably affect the development of China's
telecommunication industry in general, and the development of the
newly established China Netcom Group in particular. China Netcom
Group will have no other alternative but to face more tremendous
pressure and more austere challenge. Especially in domestic telecommunication
market, China Netcom Group is in a comparatively weak position in
terms of overall strength; how to deal with the increasingly complex
and furious competition in all respects and solve the prominent
issues in terms of operation, management and service has constituted
a substantial subject on the agenda of China Netcom Group. China
Netcom Group has fully realized the hard-to-gain development opportunity
brought by the program proposed by the 16th CPC National Congress
for building a well-off society within the first twenty years of
the new century that will bring benefits to more than one billion
people, China抯 accession into WTO, the gradual opening up of the
telecommunication market and the acceleration of the process of
information construction driven by the state. Especially, the information
industry as one branch of hi-tech industry will play a more a more
important role as a backbone when facing the change of international
situation, tackling the challenge posed by China抯 accession into
WTO and in the overall economic work situation in construction of
a well-off society in an all-round way in China. In a word, as one
of the main forces in the promotion of our information construction
in China, China Netcom Group will face more opportunities than challenges
in its development and as long as it gives full play to all advantageous
conditions and overcomes all difficulties by leaving no stone unturned,
it will be able to upgrade its work constantly to a new high and
build China Netcom Group into a first-class communication operating
enterprise group with international comprehensive competitiveness
within a matter of 3～5 years.
In order
to fulfill the strategic targets, China Netcom Group has proposed
its own strategic policy with creating of values as its core. To
create the values of the Company to the maximum, China Netcom Group
has to make excellent and balanced achievements in terms of growth,
operating efficiency and competitiveness. Within next five years,
China Netcom Group will strive to raise its return on investment
capital by means of optimum integration and effective allocation
of enterprise resources and establish the business guidelines and
business process of being oriented by the market, centered on customers
and aiming at economic results, so as to raise the competitiveness
of the enterprise in an all-round way; base itself on mechanism
innovation and business innovation, keep an eye open at all times
new opportunities, and maintain sustained growth of the achievements,
so as to make China Netcom Group a world class telecommunication
enterprise rich in creation of values and among the ranks of the
world top 500 enterprises within 5 years in terms of total sales,
moreover close to or reach world first-class level in terms of key
performance index.
According
to the scientific programming of strategic target of development,
the overall desire of China Netcom Group for the work of 2003 is
to take Deng Xiaoping theory and the important thinking of “three
represents”as guidance, implement the spirit of the 16th CPC National
Congress, be closely centered on the strategic target of the Group,
accelerate the pace of “two transformations” together with a new
thinking in business operation, a new move in service, a new rate
of progress in construction, new achievements in reform, new approaches
in management, new developments in industry as well as a new scene
in spiritual civilization, and spare no effort to upgrade the overall
strength and core competitiveness of the enterprise, create a new
situation for the work of China Netcom Group and make a due contributions
to the building of a well-off society in all-round way in China.
Therefore, China Netcom Group has explicitly set its main work targets
for the year 2003, i.e. to achieve a growth rate of 7～8% in communication
business revenues; a new addition of 11 million fixed telephone
lines, 10.32 million of internet clients and 11.96 million telephone
sets that can indicate the incoming telephone numbers; and reach
81 points in terms of comprehensive customer satisfaction with emphasis
laid on the following works:
1 To exploit aggressively new business
growth poin ts with a new thinking in business operation
Taking
the increase of sales and upgrade of economic results as the aim,
ensuring the existing assets and activating the increments, China
Netcom Group will constantly seek new economic growth points, so
as to ensure that the speed of increase in business revenue be higher
than the extent of increase in gross domestic product (GDP).
Firstly, it will stick
unswervingly to the development of business on the basis of good
results and spare no effort to exploit the business market. There
is still a comparatively large room for the market of fixed telephone
lines, a main source for driving the increase of business revenue,
so China Netcom Group must continue to implement the strategy of
developing telephone customers on the basis of good economic results,
and in the meantime exploit international and domestic long distance
telephone market, change the continual situation of market share
decline, lay emphasis on broadband business and strive to develop
digital communication business.
Secondly, to place
emphasis on the big accounts marketing conscientiously and consolidate
the market share in terms of big accounts; to give full play to
the functions of big account marketing system on three levels, namely,
the Group, province and municipality, enhance the construction of
big accounts marketing team and link the operating achievements
of the big account managers with their personal income; to build
big accounts supporting system, upgrade the network quality guarantee
for the big accounts, actively push the application of the "Service
Level Agreement (SLA)" and provide individualized service guarantee.
Thirdly, to exploit
actively the business market in south part of China and constantly
increase the occupation rate of market share; to exploit the market
in south part of China is one of the important sources of future
business growth for China Netcom Group, and at the initial stage,
main emphasis will be placed on transmission of telephones from
the north of China to the south, focusing on exploiting of big accounts,
business customers and mobile clients.
Fourthly, to make
every effort to develop information service, system integration
and network application business; to seize the chance of construction
of e-government, e-business and enterprise information system boosted
by the government, doing well the application development and system
integration, providing a package solution for the clients and doing
well the integration of various internal networks of the enterprises
and supporting system.
Fifthly, to strengthen the study of operating strategy and hold
the initiative right of the operating work; further establish the
concept of "a great operation" and pay high attention
to developments of the market and deepen the analysis of economic
activities; to intensify the study of big accounts operating strategy,
handle correctly the relations between immediate interests and long-term
interests and implement relative marketing policy on the precondition
of implementing in earnest the state laws, codes and relative policies.
2 To make efforts to establish comparative
advantage and introduce
new moves in service.
To implement
vigorously individualized strategy in service, con ard promulgated
by the Ministry concerned, to insist on high standard and stringent
demand and further perfect the internal and external supervising
and examining mechanism and follow the "rule of one ticket
veto" for the service work.
Fourthly, to redouble
the publicity effort for the service brand; with gradual completion
of split of business brands, to organize special staff forces to
work on enterprise planning and publicity, shape good image of the
enterprise and establish a service brand system owned by China Netcom
Group.
Fifthly,
to pay high attention to inter-connection and inter-communication
work; proceeding from the consideration of establishing overall
image of the telecommunication industry, to abide by and implement
strictly the state laws, rule of laws and relative policies concerning
telecommunication industry and conduct conscientiously the inter-connection
and inter-communication work; and especially for those telecommunication
companies in the south part of China, they should closely rely on
the support of the local telecommunication supervision and administration
authorities, speed up the material progress of inter-connection
and inter-communication work and create conditions for the favorable
performance of business.
3 To accelerate the upgrading of
overall net work ca pacity and level with a new rate of progress
in construction
To
stick to the market oriented principle, speed up the construction
of communication network, optimize network structure, raise comprehensive
communication capability and satisfy the demand of market operation.
Firstly,
to accelerate the building and perfection of key networks; for the
network construction in 10 provinces in the north of China, the
principles of competition first and benefit first will be applied
and more emphasis will be placed on key regions and key businesses;
to speed up the construction and perfection of the emulative business
network, make up for the deficiency, make the network complete and
build telephone line network moderately; according to market demand,
to build and perfect broadband city network and residence access
into the network.
Secondly,
to continue to promote the expansion of the network in the south;
accelerate the construction of national arterial network engineering
already launched and materialize national communication capability
as soon as possible; the expansion of the network in the south must
proceed from real conditions and strive to attain unity and balance
between input and output as well as scale and benefits.
Thirdly,
to speed up the construction of overseas communication capability;
China Netcom Group will soon launch the construction of POP (point
of presence) in Hong Kong and the U. S. and set up relative affiliates
to create conditions for the development of international business;
continue to conduct extensively international cooperation, utilize
the resources of the operators of the other countries and regions
and constantly upgrade the international operating ability step
by step.
Fourthly,
to establish multi financing channels; strive to combine debt financing
with equity financing, so as to optimize capital structure, reduce
financing risks, cut down financing costs and maintain good financial
standing; to promote actively the realization of multi financing
channels and keep the flexibility of the capital structure.
4 To establish as soon as
possible brand-new sys tem and mechanism for the Group creating
new
achievements in reform
To
use adequately for reference the operating modes of advanced enterprises
both at home and abroad, combined with the real conditions of the
enterprise, deepen further the internal reform, strengthen the vitality
of the enterprise and provide driving power for achieving the strategic
targets of the Group.
Firstly,
to accelerate the pace of reform of remuneration mechanism; explore
actively multi distribution methods, establish gradually scientific
and reasonable remuneration system, achieve really the fact that
to pay according to one抯 work post, change of remuneration matches
change of post, breaking the “big rice bowl” thoroughly (to pay
regardless of one抯 performance in work), widen the personal income
gap rationally, so that the remuneration is linked indeed with one抯
individual ability and work performance and gradually establish
a set of scientific encouragement system.
Secondly,
to redouble the efforts in reforming employment system; break the
traditional ideas and approaches in selection and employment of
staff members, promote the rational flow of competent people, form
core staff ranks, achieve socialization of fringe and distal category
of work, make every effort to form a vital employment mechanism
that can absorb extensively talented people, everyone giving full
play to his talents and realizing the up-and-down change of position
according to circumstances.
Thirdly,
to redouble the efforts in reforming performance assessment mechanism;
China Netcom Group will set up high, medium and low grades for the
ten provinces in the north in terms of business revenue, balance
between income and expenditure and investment plan with targets
issued and assessed by means of “each company claims its own grade”;
whereas, the companies in the south will strictly follow the standard
practice of corporation administering structure of shareholding
companies by practicing performance assessment management.
5 To strengthen the basic work of
the enterprise in an all-round way introducing new approaches in
management.
Compared
with world first-class telecommunication enterprises, China Netcom
Group still has a long way to go in terms of management, so it must
explore actively and practice advanced management thinking, management
modes and management methods to raise its market competitiveness
and maintain sustained and healthy development of the enterprise.
Firstly,
to introduce budget management in an all-round way and raise the
planning and financial management level; based on the principle
of “taking all into consideration, explicitly oriented, seeking
facts and innovation, materializing step by step”, to drive conscientiously
implementation of overall budget management; on the basis of experiment,
to introduce step by step the management method of “two separate
accounts for income and expenditure”over municipal branches by provincial
companies; make efforts to implement “Accounting Regulations for
Business Enterprises”as soon as possible; to consolidate cost management
and practicing step by step professional cost accounting; to enhance
further centralized management of planning, specify the limit of
authority for investment management, determine rationally the scale
of investment and strictly control the debt to asset ratio.
Secondly, to exert itself to upgrade constantly the management level
of network operation; maintenance means to operate and offer service,
the maintaining and operating departments will gradually fulfill
the transformation from role of a network operator to that of a
network manager; speed up further the reform of maintaining and
operating system, give prominence to dominant role of network management,
change the demerits existing in the management system and performance
process, upgrade with all its strength the capability of management
of end to end resources, provision of individualized service and
management of inter-communication between different networks.
Thirdly,
to promote actively the re-engineering of enterprise process; facing
the market and customers, to reform the prevailing business process
and management process, so as to boost the enterprise market response
capability; re-engineer such key processes as big accounts service
and development of new business while conducting necessary adjustment
of organization structure in combination with process re-engineering.
Fourthly,
to accelerate the construction of enterprise information system;
to implement same according to the principle of “uniform programming,
centralized management and implementation at different steps” and
stick to combination of self development and external cooperation
with self development playing the dominant role; all standards of
information system will be in line with the uniform requirement
of China Netcom Group, and handle correctly the relations between
the new system and the old one, adaptability and being progressive
as well as centralization and dispersal.
Fifthly,
to conduct the management work of safety production in a down-to-earth
manner; explore actively the safety management modes that are adaptable
to modern enterprise system, carry out strictly the safety production
responsibility system, focusing on the safety management work of
key positions, important equipments and facilities in telecommunication
to prevent the occurrence of material interdictions of telecommunication
and accidents with casualties.
6 To handle properly relations between
primary
business
and secondary business, major busi ness and sideline business to
score a new devel opment in industry.
To
practice separation between primary business and secondary business,
major business and sideline business is an important move for the
telecommunication enterprises to implement the 揋uiding Opinions
of CPC Central Committee on Acceleration of Reform and Development
of Large and Medium-size State-owned Enterprises? and also the demand
of those enterprises to deepen reform and self development; industrial
companies are the organic components of China Netcom Group and both
major business and industrial companies bear the liability to maintain
and increase the value of state assets concerned. The leading comrades
at all levels of China Netcom Group will increase further their
understanding, unify their thoughts and boost up their confidence
and resolve to develop the industry well. Firstly, to develop the
industrial enterprises as an industry, handling correctly the relations
between short-term targets and long-term targets; secondly, to strengthen
the management of the industrial companies and the principal part
of the investments will undertake practically the duties of investors
to the industrial companies; thirdly, consolidate further its guidance
over the industrial companies and give full play to the functions
of board of directors and board of supervisors.
7 To raise the overall quality of
the staff members further creating a new scene in spiritual civilization
Firstly,
to consolidate the construction of the enterprise leadership providing
a forceful organization guarantee for the realization of the strategic
targets of the Group; it will implement in earnest the spirit of
CPC Organizational Work Conference held recently, placing emphasis
on upgrade of quality, optimization of structure, improvement of
working style and enhancement of unity; strengthen the construction
of enterprise leadership and make every effort to bring up a young,
promising, enterprising and staunch leadership that can undertake
the heavy tasks and stand the test of storms.
Secondly,
to enhance the cultivation of talented people and establish a learning
enterprise; to adopt all powerful measures and redouble the efforts
further in bringing up and attracting talented people; to establish
encouragement mechanism for them, create a good internal environment
and to retain the talented people by means of career development,
emotion and proper treatment; to adapt to the requirements for establishment
of a learning enterprise, build up the concept of lifelong education
and the entire staff training mechanism and strive to form a good
environment within the enterprise of respect for learning and knowledge.
Thirdly,
to enhance and improve the ideological and political work and conduct
activities in depth for the establishment of civilized units and
strive to have more enterprises enter the ranks of state level civilized
units; by conducting the activities for establishing civilized units,
civilized windows and civilized staff members, to give full play
to the exemplary, guiding and driving functions of the advanced
models.
The
major polices, targets and tasks of China Netcom Group have been
set for the year 2003 and now the key is how to carry them out.
China Netcom Group will implement the "three represents"
in an all-round way under the guidance of the spirit of the 16th
CPC National Congress and work hard in a down-to-earth manner, pool
the wisdom and efforts of all staff members, unite as one, struggle
to create a new situation for the various works of China Netcom
Group and exert itself in the struggle for building a world first-class
enterprise group of telecommunication operation.
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Biography:
Mr.
Xi Guo-hua,President of China Netcom Communication Group Corporation.
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A brief discussion about management of fixed
assets with information system 
