China Mobile CEO Li: Re-walk the mobile interconnection Road

Source: Internet
Author: User
Keywords CEO China Mobile Li
Mobile interconnection strategy is prescient, innovative breakthrough, but why not the results of the forecast? New CEO Li Suppress its drawbacks, front recovery, can lead to move out of a new road? The May 2010 CEO shift is undergoing a comprehensive change to the CEO of Mobile Li, the internal change in a sequential unfolding.  On stage, he acknowledged for the first time the operator's general resistance to the "Pipeline" fate (but in front of two more words: smart); he switched to a fixed-payment model by changing the division of value-added services into a pay-as-you-go mode, stopping rapid expansion and high-speed growth, and turning to internal strength; Over the past 10 years, the mobile has maintained a dynamic momentum of different telecom operators, the horse whip, and actively explore the voice business beyond the data value-added services. From the 2000 Mobile Dream Network began, to the later hit of Sichuan music base mode, to 139 of the Internet company's attempt, Zhang Liqui, Wang, Wang and other successive leaders are involved in the process.  China Mobile (0941.HK) in the first half of 2010, mobile value-added services accounted for 29.5% of the revenue, while the world's most successful operating data business of the Japanese operator Ntt-docomo's value-added business income is only 30%, it appears that China Mobile seems to have achieved success.  But this is a water-saturated boom. In order to catch up with the mobile internet boom, from 2007 onwards, more than two years, mobile eight business base has been built. Under the KPI's examination pressure, each branch company takes the forced bundle user, opens the value-added service to send the equal charge promotion means, everywhere. In 2010, mobile data minister Gorning revealed that nearly 70% of mobile users use bundles of data and information services, and even the most sophisticated wireless music business, 53% of its revenue comes from package bundles.  Shortly after Li became CEO, he publicly said that mobile "data services and users are growing, but there is no corresponding increase in revenue".  Really let Li of the value-added business chaos has a clear understanding of its predecessor, the Sichuan music base in charge of lixiangdong for corruption problems with the absconded incident. About Li himself, outside know very little, many people can only speak humble, low-key such vague impression. Lee published in 2008, "Centralized management-the network era of telecommunications enterprise management innovation", perhaps has been taken into office after the management ideas have been demonstrated.  In this book, he mentions Low-cost, large-scale, assembly lines, economies of scale and other key words. Since 2004, Mr Wang has been in the mobile Internet business to maximize the market-oriented attempts to cooperate with outside, to avoid operators "being piped."  But now Li seems to be in reverse, will strengthen headquarters centralization and internal cultivation, reduce external cooperation. This can be seen as a great leap forward in the pre-development of some of the hidden dangers, but also may change the telecommunications company mobile Interconnection development model and direction.  The Internet and the system: the genetic paradox a few years ago, Mr Wang shouted inside the company about the need for Internet maniacs. March 2007, just after the Spring Festival, the mobile employees have not fully entered the working state, President Wang and the senior managers in the move held an important meeting. Mr Wang took out a document called the Strategy for China Mobile's access to the Internet, an internal report that a group of nearly 30 people had been working on for months, and that the internet had come to an end. "he said.  "Plumbing" has become a mantra for global operators, and the well-connected Mr Wang has met with top executives at internet companies such as Google, and he has seen the terrible future. The report kicked off the official development of the Internet business.  In the next few months, Vice President Aili (then vice president of mobile data business is studying in the party school), including the data department, marketing department, Strategic Planning Department, Mobile Research Institute, Zhuo Wang and even human resources Department of the various departments responsible for the discussion of the Internet strategy. A dense mass of people squeezed into a moving conference room. People who had been involved in the meeting recalled that, on the side of the long, long conference table, is Aili, mobile chief Li Mefang and Foreign investment Office general manager Li Beqing sit on both sides of him, the other side of the conference table sits the ministers or deputy ministers of the relevant departments, and the Chair on the wall still sits a row of people, that is the director of various departments and others.  This implied power of the order of the sitting way, in the movement of such a state-owned enterprises meeting is commonplace, the same day was from Zhao Wan (Zhuo Wang Group is from China Mobile (Hong Kong), Merrill Lynch, Vodafone and other investment in a foreign-funded institutions, a lecturer, he pointed out that the Internet company meetings are generally round tables, do not show who is the highest weight.  At the meeting, a number of departments are fighting for the right to do new business, and even someone to mobile already has a corporate web site as a proof that the department is understand the internet business. Such meetings have been organized many times, and the eventual establishment of a new company under the Aspire Group to do the Internet business--Mobile is clearly hoping that the new company will be less affected by the state-owned system of its operators. This company is named "139 Mobile Interconnection" (hereinafter referred to as 139).  Ye Bing, the minister of Mobile data before the Internet experience, and later became the chairman of the group, 139 CEO. In order to show the determination of the Internet business, mobile wants to look for the Internet industry with the ability of people to run 139, the famous "Internet Madman" is in this time by Mr Wang in the speech mentioned. After some screening, the original Microsoft MSN Chinese leader Rochuan into the mobile vision, after several contacts, Rochuan added 139, become COO.  The company was finally set up in November 2008. Ye Bing, Rochuan, and Zhang Peng, transferred from the data department, became the Iron Triangle of the company, including several three people. Mr Wang said to Ye Bing, "allow it, allow it, make it easy," and promise 139The possibility of a separate listing, which has no precedent in mobile or even within the operator, may be the greatest resource and policy that Mr Wang can think of. 139 The establishment of the early stage and did not shape the thinking and business model, Ye Bing that clear ideas need 1-3 years time. But what's it going through this long groping period? The rules of Internet companies are to burn money first, but because of state-owned enterprises system problems, China Mobile can not be funded by headquarters, the funds from the Aspire group, or more precisely from the group under the other two companies Zhuo Wang information and Zhuo Wang Digital. Here's the problem. "Zhuo Wang information and the digital Front for 139 burn money, the future 139 if the listing and the two companies do not have any relationship." In addition, 139 of the business development needs to use data resources of the Department, but the future listing and moving any department is not related. Why do people want to help 139 business development in this situation?  The group insiders said. And, even away from mobile, 139 still can not escape the system characteristics of mobile. In a speech, Ye Bing the difference between operators and Internet companies: As a mobile communicator, it is a good foundation to pursue sound development, while internet companies pursue fast and good. But 139 is not going to be fast anyway. For example, 139 later had product "lobbyists", similar to Sina Weibo. But Sina can publish the information in real time, and then delete the error. But 1391 is to be audited first, delayed release, the data department later set up a special wireless internet service supervision 139. This clearly reflects the difference between 139 and pure market companies.  For the state-owned enterprises in the mobile, security is the most important, mobile everyone is aware of this. "Mobile internet companies encounter every problem, single look can find a solution." But put together, is the knot.  said the figures. By June this year, Ye Bing to prepare for the 139 three-year period, which was the time Ye Bing envisioned 139. But the fact is that 139 has transferred all the operations to Guangdong Mobile Internet base.  Mr Wang's push to move into the internet has said that no large state-owned companies have had the experience of successfully running the internet before moving. Internet watcher Xie has long seen 139 violations of Internet law. "According to the rules of the Internet, there needs to be a platform to integrate all users or services." I was hoping to have a perfect Web2.0 platform that China Mobile didn't have. 139 Business and other value-added services complete segmentation.  "Xie that it is typical to operate according to power rather than corporate law. The idea of Xie is theoretically not necessary, and the move already has such a condition. Since the introduction of a letter in June 2007, flying letter has become the best mobile value-added services business. At the end of 2007, the active user has reached 12.8 million, so far more than 100 million, has become the second largest instant messenger after Tencent QQ tool. In the view of internet people like Xie, such advantages areTo some extent, Tencent's success can be replicated.  But when Tencent borrowed QQ to become China's highest market capitalisation of the internet companies, mobile flying letter business is still not salty. Base: The prosperity of the disorder flying letter is difficult to assume the mobile business unified platform is only one example of the difficulty of moving internal integration.  The development of the base mode of mobile value-added service is another reality of the division of business caused by the existing power pattern. Currently mobile in the country has been built including wireless music, mobile reading, video, location, E-commerce, games, mobile phone animation, mobile internet, including eight bases. The base model originated from the Sichuan music base, which was the most bright spot in the mobile value-added service. In the mobile internet gradually emerging, the Sichuan music base as a successful model for the implementation of the establishment of other provinces base. But the problem is that fragmentation hinders the more flexible development of mobile data Services, "there is a music base, there is a video base, then if the MV should belong to which base?" Reading, comics and other business will be such a problem. If there is a dispute can only give up, the business thereby losing competitiveness.  A mobile insider said. By the provincial branch responsible for the new value-added services to mobile is also helpless, "mobile architecture has a natural flaw, the headquarters has been a management center rather than profit center." For the profits of the provinces, the headquarters do not have the right to allocate funds, mobile can only approve the operation of the provincial branch to set aside some of the profits as investment.  "said Wang Yuquan, president of the Frost&sullivan China region. The development of the base business to the provincial branches to bring additional financial benefits can be imagined, so to fight for the base business in the last two years the provincial companies to consider the important event, "even a leader to the group to lobby." As a result, the final decision factor is not necessarily considered entirely from the market, such as the industrial environment around the base.  At the same time, because the base business can expect huge gains, attracted a group of such as the Shenzhou Tai Yue background Operations support companies, these background but lack of sufficient strength of the company to some extent, will hinder the development of the base business. The Lixiangdong case has exposed the drawbacks of the mobile base model. In the music base, the wireless music industry value chain composed of operators, CP (content provider), SP (service provider) and handset terminal manufacturer is constructed by the cooperative partitioning mode. The operator occupies the absolute dominant position, in the process of choosing CPSP, has formed the rent-seeking space.  Lixiangdong is as the head of the music base, in the SP and other links to the shadow company to participate in the base business, so as to gain personal benefit.  KPI assessment to some extent to promote the base business development weight of the situation, the provincial companies will even find ways to reverse left hand to create value-added business revenue. In Wang, China Mobile became the first state-owned enterprise to carry out KPI assessment. has always been "pot" type of state-owned enterprises to implement performance management, Wang made strenuous efforts in the initial period of time also did move China Mobile to aA stage of rapid development. Since then, there are KPI indicators for every business in mobile. Most directly, the Provincial KPI assessment will affect the provincial branch of all employees in the next year's salary budget. To this end, the provincial branch has a variety of ways to ensure value-added business standards.  For example, because the profit indicators are often easy to achieve, the provincial branch will be the decision to make some of the profits, used to launch a similar registration of the film ticket, such as "Buy users" activities. After the stage, Li to the KPI of meticulous revision: To break the original data assessment of individual business, to the data business Package Profit index assessment, and the provinces can choose their own data services.  Under the profit pressure, each province will take the initiative to consider how to open up all kinds of data business, in order to play the synergy effect of each business to increase revenue. At the same time in the new deal, the abolition of value-added services subsidies.  In Zhejiang reading base, because the reading business was initially included in KPI evaluation indicators, while the reader is also mobile subsidies, partners cheered, holding a year to achieve "millions of sales" dream, now, their confidence lost. Li does not think that this is in the abandonment of cooperation and openness, he believes that the premise of cooperation and openness, is to move first to close the door to practice. But in the eyes of outsiders, such closures are far too far. "Li may have overestimated the ability to move inside. "A person in the industry said," the market does not have the time to wait for you to practice the internal strength, but Li also really cannot change the mobile Movement Interconnection instability Foundation, the patching all must carry so many infamy.  "Mr Wang: the idea of hard landing" in 2004, a big shift in telecoms executives, Mr Wang moved from Unicom, and was thought to have got a "good hand". Mr Wang also has an industrial eye. He immediately made the decision to develop the ophone system and to launch the MM store after seeing the Apple's siege and change of industry.  The ophone system is a single product development with the largest investment in mobile history. Such a decision of course with the mobile operation of China's own intellectual property rights of the TD network inseparable, but more important is Wang hope that this can make mobile avoid reduced to a pipeline operator fate. But the problem is that when the boss does not necessarily command the crowds. The deep pockets of the move in addition to the subsidies to the downstream, and did not really understand how to build in their own small circle of the establishment of order, reality and Mr Wang's original expectations are very different, statistics show that 2010 years ago, three quarter ophone total sales only 330,000, far from the million expected, And because of the lack of end users, the problem is that the MM store developers are not active, can not form the expected ecological system.  Li on stage, there are ophone news. In some insiders ' eyes, Mr Wang should have put more effort into the mobile internet business than just drawing a circle and letting the people below do it. One can attest, says one person, that Wang is the chairman of the group, but in the development of the 139 business, it is only the Ye Bing of the department. "Even if Rochuan hadHow many layers of thought would it take to reflect it? In a hierarchy of state-owned institutions, there is no doubt that the scope of the attempt to innovate has shrunk. "There are mobile insiders who have compared Mr Wang and Li, who think the king is more focused on the layout of the macro strategy, while the latter is more pragmatic and more concerned about short-term interests." Li after taking office, the contraction policy, in the short term, will quickly establish a clear business structure, controllability enhanced. In addition to a greater sense of risk aversion, Li also began to consider how to build internal strength, hoping to improve the customer satisfaction with the inner operation. "Without their own capacity building, it is impossible to occupy the rightful place in the era of mobile internet development." "This is the answer that Li in a decade of mobile internet exploration.
Related Article

Contact Us

The content source of this page is from Internet, which doesn't represent Alibaba Cloud's opinion; products and services mentioned on that page don't have any relationship with Alibaba Cloud. If the content of the page makes you feel confusing, please write us an email, we will handle the problem within 5 days after receiving your email.

If you find any instances of plagiarism from the community, please send an email to: info-contact@alibabacloud.com and provide relevant evidence. A staff member will contact you within 5 working days.

A Free Trial That Lets You Build Big!

Start building with 50+ products and up to 12 months usage for Elastic Compute Service

  • Sales Support

    1 on 1 presale consultation

  • After-Sales Support

    24/7 Technical Support 6 Free Tickets per Quarter Faster Response

  • Alibaba Cloud offers highly flexible support services tailored to meet your exact needs.