Resumen Shangai

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SHANGHAI BELL — THE COLLABORATIVE PRODUCT COMMERCE SYSTEMS (CPC)

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Yulin Fang and Jianguo Jia prepared this case under the supervision of Professor Darren Meister solely to provide material for class discussion. The authors do not intend to illustrate either effective or ineffective handling of a managerial situation. The authors may have disguised certain names and otheridentifying information to protect confidentiality. Ivey Management Services prohibits any form of reproduction, storage or transmittal without its written permission. Reproduction of this material is not covered under authorization by any reproduction rights organization. To order copies or request permission to reproduce materials, contact Ivey Publishing, Ivey Management Services, c/o Richard IveySchool of Business, The University of Western Ontario, London, Ontario, Canada, N6A 3K7; phone (519) 661-3208; fax (519) 661-3882; e-mail cases@ivey.uwo.ca. Copyright © 2004, Ivey Management Services Version: (A) 2009-10-09

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COMPANY BACKGROUND

Dr. Jack Jia, the research and development (R&D) process improvement manager in Shanghai Bell, had just finished meeting with the top management onstrategic initiatives suggested in the corporate information systems plan (CISP) final report. The CISP report detailed a blueprint of Shanghai Bell’s future information systems (IS) architecture and suggested to sequentially implement several IS projects to make the blueprint a reality. The project suggested in the CISP report — implementing a collaborative product commerce system (CPC) — wasabout to begin in August 2001. Jia was required to review the project planning process and examine the extent to which the company was ready to undertake the project. He would be presenting his analyses and recommendations in five days.

Shanghai Bell Co., Ltd. (Shanghai Bell), a modernized telecommunication and information enterprise founded in 1984, was a joint venture among China TelecomAdministration (60 per cent share), the Belgian Fund for Development (8.35 per cent share) and Alcatel (31.65 per cent share). Shanghai Bell was one of the first and largest joint ventures in the China telecom industry. It was ranked as one of the top 10 enterprises with foreign investment and one of the top 100 enterprises in the electronic and information industry in China. In 2000, the company’s salesgrew by 17 per cent from the previous year and reached RMB10.8 billion. In the same year, Shanghai Bell owned total assets of RMB17 billion. Fortune magazine recognized Shanghai Bell as one of the best foreign enterprises in China as of May 2001. Shanghai Bell employed over 4,800 people in 2000. As a high-tech company, 80 per cent of Shanghai Bell’s employees were university degree holders,nearly 20 per cent of whom held graduate degrees. Approximately one-third of all employees were directly engaged in R&D. Shanghai Bell had six business divisions: switching networks, mobile networks, data communication networks, transmission networks, network applications and multi-media terminals. All divisions manufactured advanced telecommunication devices. The company’s core product was the S1240central

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one-third of the R&D staff. ZTE Corporation was a major telecommunications equipment provider specializing in customizednetwork solutions for telecom carriers. The company developed and manufactured telecommunications equipment for fixed, mobile, data and optical networks, intelligent networks and mobile phones. Over 10 per cent of ZTE’s revenue was dedicated to R&D every year. Half the company’s employees were engaged in R&D. Compared with the two aggressive, privately-owned companies, Shanghai Bell had shown...