Managing IT/IS Projects Across Borders Opportunities and Challenges for Hong Kong A Discussion Panel Chair: Professor Denis M.S. Lee Panelists: Mr Kai Kim Chan Mr Joseph Lee Mr Frazier Li Mr Philip Young 3 rd July 2003

Dawn of a New Age in Information Technology at Shun Hing Group Chan Kai Kim IT Controller, Shun Hing Group 3 rd July 2003

3 Introduction to Shun Hing Group  Local privately owned business with 1600 staff in Hong Kong and strong presence in China  Main business is electrical/electronics goods distribution - sole agent for Matsushita of Japan in Hong Kong and Macau  Also with sizeable business in services, logistics, building services and advertising  Established in 1953 – celebrating 50 th anniversary  Largest local electrical/electronics distributor  Largest local electrical/electronics service company

4 IT Systems at SHG  Main system is based on SAP R/3  Hardware is based on IBM RS/6000 SP2  Many other self-developed systems based on Microsoft’s technology, often integrated with SAP (both batch and online)  Most systems are for internal use only  Only simple interfaces to partners (file transfer)  Access by customers limited to web sites  Use of Internet mainly for and browsing

5 Challenges SHG Faces  Downturn of economy Customers demand more for less Shrinking volume at slim profit margin Shrinking budget but more demanding management  Business is evolving New products and new organisation structure New distribution channel Credit card promotion – mass order processing Retail - Point-of-sale New business Logistics - 3 rd party logistics

6 New Concepts Entail New Systems  CRM – Customer Relationship Management Everything about customers should be known and be readily accessible  More integration with partners to shorten turnaround time and improve service  Anytime, anywhere access Web PDA Wireless  Fast response time expected of any changes  Self service – everyone is a user  Do more with less

7 Shortcomings of Current Systems  Very expensive to run  Very tightly integrated Inflexible Difficult to change  Too fragmented Difficult to use Difficult to support  Turnaround time for changes too long  Difficult to integrate with partners

8 Objectives of New System  Instead of further tweaking the existing systems, a new system is being built with these characteristics: Do more with less Improve workflow Improve usability Save on cost One integrated system that is distributed Start from small and grow to large Replace existing systems gradually Bespoke yet flexible and customisable Develop once and implement many times Everyone is a user External as well as internal From operation to executive Web, PDA and Wireless ready Improved security use of encryption and smart card where appropriate

9 New IT Revamp Project  Scope covers all businesses in SHG  Self-developed based on MS.NET technology  Distributed yet integrated Each company has its own system All companies are integrated Integration extends to partners later Users include internal staff and external partners and customers  Bespoke yet flexible and customisable

10 Microsoft.NET Features  Portable across MS supported devices  Object-oriented  Multi-tiered  Windows form and Web form  XML web service  Supports industry standard security technologies – PKI and smart card

11 New Development Methodology  Global perspective both internal and external  Process oriented Workflow improvement  Software architecture Multi-tiered design Object-oriented design Layered development Framework code generator to hide architectural details XML web service for connectivity  Universal accessibility Web PDA Wireless

12 New Breed of IT Personnel  Business analyst  Software architect  More demanding on skills of systems analysts as well as programmers Object-oriented know-how Business knowledge is essential Layered development  Team work is more important than ever

13 Trends at SHG IT  From packaged to self-developed  From tightly integrated to loosely coupled  From centralised to distributed  From internally focused to balanced (both internal and external)  From simple to sophisticated architecture (object-oriented, multi-tiered, layered design)  From technology oriented to process oriented (reengineering and workflow improvement)

14 Summary  Evolving business implies evolving IT systems, which have become strategic competitive tools instead of just back-office transaction processors  Global perspective means IT systems must cater to internal staff and partners and customers as well  Business process design is as important as software design  Software architectural design is critical Object Oriented technology Multi-tiered design Layered development  Use of Internet and XML web service is essential  Microsoft.NET greatly facilitates such new development methodology

Thank You