China Netcom Achieves High Management Efficiency with a Smooth Flow of Information
Oracle not only provided a suite of application programs, it encompassed a wide range of management. In all respects, Oracle meets our demands.
"With its open structure, Oracle E-Business Suite has the flexibility that allows us to easily make adjustments based both on the current needs of our company and the demands of future development. Oracle not only provided a suite of application programs, it encompassed a wide range of management. In all respects, Oracle meets our demands." -- Peng Jinsong, Director of MIS, China Netcom
Scalability for Future Growth
China Netcom, one of China's major emerging telecom carriers, faces increasingly intense competition both at home and abroad. To maintain and improve its position in this market, the company must ensure its information technology is up to the challenge.
From its founding in 1999, China Netcom sought to establish a viable enterprise resource planning (ERP) system. "An ERP system was--and remains--crucial both for our enterprise growth and for breakthroughs in management," said Peng Jinsong, director of management information services for China Netcom. The company needed an information management system capable of expanding easily as the enterprise grew. "China Netcom is currently staffed by 4,000 people, and it may have 40,000 employees in the future. We must ensure our infrastructure has sufficient scalability to address such rapid growth. To have to go back and change our infrastructure at a later date would exact a high financial penalty," Peng said.
Why Oracle?
Right from the outset, China Netcom looked to Oracle for its needs. Within six months of its founding, and virtually without hesitation, the company selected the ERP modules of Oracle E-Business Suite. "With its open structure, Oracle E-Business Suite has the flexibility that allows us to easily make adjustments based both on the current needs of our company and the demands of future development. Oracle not only provided a suite of application programs, it encompassed a wide range of management. And, since implementation is key to an ERP system, we sought a manufacturer with abundant deployment experience and excellent after-sales service. In all respects, Oracle meets our demands," Peng, an IT veteran, said.
From October 1999, China Netcom deployed, on average, one additional Oracle ERP module every three months over the following year. At present, seven Oracle modules are actively in use: Oracle General Leger, Receivables, Payables, Assets, Purchasing, Project Costing, and Inventory. Pleased with the success of those modules, China Netcom has also introduced Oracle Human Resources to further improve its corporate management information system.
China Netcom continues to leverage the openness and integration of its Oracle database and ERP system as it expands its management information system (MIS). Currently, that MIS includes human resources, workflow, knowledge, enterprise-level data warehouse, and decision-making management systems, all closely integrated with Oracle ERP.
High-Level Project Goals
Smooth Information Flow, Efficient Management
The integrated MIS environment allows the entire company a complete and smooth information flow to fulfill tasks efficiently. An individual employee, for example, can quickly and easily handle reimbursement of travel expenses. Approvals, auditing by the Finance Department, payment, even an automated response back to the request originator are all handled by Oracle E-Business Suite. Easy data access at all levels speeds processing and enhances effective cost control. China Netcom supervisors, for example, use MIS tracking functions that automatically collect statistics on fixed assets, to resolve issues concerning operating costs and depreciation. Oracle allows data pooling that lets China Netcom complete its monthly and yearly closing of accounts efficiently--within five days.
Oracle ERP allows China Netcom to manage information on B2B customers and suppliers, and track invoicing and payment. The ability to perform flexible and effective aging analyses and assessments of customer credit standings enhance credit management and ensure the company's cash flow. Integration between Oracle Project Costing, Oracle Payables, and Oracle Assets improves the management of construction projects in progress.
Overall, Oracle E-Business Suite allows China Netcom to better manage its enterprise infrastructure, regulate its business processes, and boost managerial control, improving its overall ability to make key decisions that enhance its market competitiveness.
