IBM Consulting Enhances Enterprises

Smarter Growth

Marc Chapman
General Manager, IBM GBS Greater China Group
Leading clients adopting smarter ways to compete

Leading 3C (Computer, The most frequently used

Communication, Consumer
Electronics) chain retailer in China.
Aggressively expanding the
outlets to reach 1,000+ by end
2009. Opened one store every 20
days back in 2002, to open one
store every 1.8 days in 2009
transportation system within
Guangzhou City, as well as linking
Guangzhou and other remote cities
in the Guangdong province. With 4
commuter line, 60 stations and
more than 116km of track, serve
more than 2m passengers a day

One of the fastest growing clean
energy Company in china, has
successfully operated urban gas
projects in nearly 70 cities across
15 provinces and municipalities in
China.
One of the leading logistics
providers in China, with a growing
global presence, pursuing a way
to balance the social benefits and
economy benefits
Cooperation program with local
government, aimed to solve the
problem of outsourcing capability
shortage. Governments like
Nanchang can benefit from ETP
for experienced talent
development
Suning – Geared up for sustainable growth
Client Situation
• Outlets to reach 1,000+ by end 2009, mainly in lower tier cities & rural
- Opened one store every 20 days back in 2002, to open one store every 1.8 days in 2009
• To add 5 more logistics centres to support its geographic expansion
• High-speed expansion pose challenges to management and IT.

What we did together Benefits

• Business Process Optimisation & ERP • Warehouse area reduced by 50%
Implementation • Inventory reduced by 20-50%
• Shared services & applications • Inventory turnover increased by 20-60%
management outsourcing • Realised Vendor Managed Inventory
• Supply chain integration • Better satisfied consumer needs
• SOA infrastructure

Suning can make quick decision with accurate and real-time information by
implementing ERP. More efficient process and better customer service enable
Suning’s faster growth.
 Guangzhou Metro – Modernize rapid transit system
Client Situation
• Assets to increase from RMB22b now to 200b by 2020
• Currently using multiple applications, only be able to draw a partial view of its total assts, lack
complete visibility for efficiency and on-time service
What we did together Benefits
• To implement an Integrated Asset • The system will improve the GZ Metro’s
Management system (IAM) transparency into their operational processes,
• Smart asset categorisation, tracking which can enhance asset-relate decision-
and decision tools to ensure assets’ making, asset service delivery and return on
security, utilisation & optimisation investment
• Integrate the operational and financial • Support the GZ Metro’s expansion plan. The
management throughout an entire life rapid transit railway operator will be able to
cycle of asset management operate 9 commuter lines, daily passengers
will increase from 2m to 4m

By implementing an Integrated Asset Management system (IAM), IBM will help GZ

Metro manage all of its IT and physical assets to provide safe and uninterrupted
railway services.
 XinAo Gas – Relieve growing pains by process
innovation and ERP implementation
Client Situation
•Hard to continue enthusiasm to keep moving forward. Difficult to execute strategy
•Low efficiency due to issues in process and organization orientation
•No accurate, timely and complete information to make decision

What we did together Benefits

• Business process optimization
• Establish an enterprise-wide ERP
system with flexibility, scalability
• Establish an enterprise-wide CCS
(Customer Care System ) system for
customer services
• Culture and leadership enhancement
• Streamline Xinao business processes and
build up their business controls by adopting
the SAP best practice
• Bridge the enterprise core value and employee
behaviors.
• Establish stimulation mechanism by adopting
BSC

Process innovation and ERP implementation ensure efficient operation. Culture

construction and leadership enhancement enable strategy execution.
COSCO – “Green” outbound logistics
Client Situation
One of the leading logistics providers in China, with a growing global presence, pursuing
a way to balance the social benefits and economy benefits
What we did together Benefits
• Implemented Supply Chain Network • Reduced distribution centres from 100 to 40
Optimization (SNOW) Workbench to • Reduced distribution cost by 23%
optimize logistics planning from • Reduced total fuel consumption by 25%
manufacturing sites to customer
• Reduced carbon emission by 15%, equivalent
delivery
to 100,000 tonnes GHG annually
• Involved analysis of the current
carbon footprint and developing
alternative logistics strategies to
reduce carbon emissions
• Tradeoff analysis between
carbon, logistics cost and
customer service
• Alternative mode and freight
consolidation strategies
 ETP (Experienced Training Program) – Effective training to fill
outsourcing capability gap
Situation
•1.57m graduates experienced difficulty finding jobs in 2007, 6.5m in 2009.
•The booming offshore outsourcing requires 0.36m more joiners every year.
•Only 0.1m practitioners for offshore outsourcing currently.
What we did together Benefits
• Local government and IBM • 80% graduates from 1st batch students joined
cooperate to establish the ETP base leading companies for outsourcing service.
– Nanchang ETP base kicked off in 2006 • Solve the problem of outsourcing capability
– Rollout ETP in Wuxi, Dalian, Chengdu, shortage.
Hefei and Shenyang
• Simulate real business scenarios for
training, focusing on:
– hands-on skill, policy/process
discipline, project life-cycle, team work

By offering simulation training, ETP enhances the students’ employment chances,

and helps to solve the problem of experienced practitioners shortage faced by
outsourcing industry in China.
Good morning Wuhan, very industrious city to be the lastest
GBS office at the heart of China network

IBM GBS:

• 2000 consultants
in China

Beijing
• Deep industry
experience
Xi’an

Nanjing
Shanghai
• Extensive
Wuhan
Chengdu
capabilities

• Continue to build
Guangzhou Taiwan “Smart City”
Shenzhen
Hongkong
Our objectives and commitments in opening Wuhan Office

objectives
objectives and
and commitments
commitments

Provide
Provide ready
ready access
access to
to China
China and
and
global GBS consulting capabilities
global GBS consulting capabilities

Ensure
Ensure quick
quick and
and flexible
flexible response
response
to
to local
local client’s
client’s needs
needs

Beijing Build
Build deeper
deeper and
and longer
longer
Xi’an relationship
relationship with
with leading
leading local
local
Nanjing
Chengdu Wuhan Shanghai
companies
companies
Guangzhou Taiwan
Shenzhen
Hongkong
Support
Support for
for China‘s
China‘s broader
broader
development
development
We are proud to support many leading companies in China
Announce GBS Wuhan office open – GM: Lou Xiang hui
Thank you!

谢 谢！