2. EIB in Telecom China

3. What is the key message of this presentation?  Market Analysis  Business potential & Opportunities  Challenge & Competitor  Go to market Strategy  Support from HQ

4. Market Analysis  Four major operators in Telecom China: AccountMajor BusinessBusiness Scale CMCCMobile,data, ip phone,multi-media, sms, internet service Registered capital:6.2 B(usd); Asset value:32B(usd); Revenue:20B(usd), subscriber:138 Million.employee( 120,800), 287 in top Fortune 500, Public in NewYork and HK Stock exchange China Unicom Mobile, ip-phone, sms, internet service Asset:8.2 B(usd) Revenue:8.25 B(usd),EBITA:3B(usd), subscriber :80.8 Million, Public in NewYork, HK and ShangHai China Netcom Fixed telecom, internet access,wireless city phone Registered capital:7.5B(usd), Asset value:30 B(usd), revenue: 8 B(usd), user: 100Million, have the plan to public in NewYork and HK China Telecom Fixed telecomRegistered capital:19B(usd),Public in NewYork and HK

5. Oracle Application in Telecom AccountERPScopeImplementation partner CMCCFinancial,Project costing, Purchasing, inventory All (31)provincesPCCW China UNICOMFinancial,Project costing, Purchasing, inventory ZheJiang, ShanDong Province Bearing Point China NetcomFinancials, HRGuangZhou ProvincePCCW ( Financials) Bearing Point(HR)

6. Typical customer requirement (More details need to be clarified)  Asset information management: – Asset category,hierarchy, specification, supplier,order,location,transaction history;  Maintenance work management: – Manage task, resources, spare parts and component request with work order;  Asset redeployment and history tracking: – Execute transaction of component issue,install,uninstall,obsolete,return,replace and etc.  Synchronization with Financial system: – Keep the consistency between physical asset information and fix asset information to reduce cost and improve utilization of asset;

7. Business potentials  Great potential to up-sell EIB solution in the install base of CMCC, China Unicom and CNC;  The trend for Telecom company to reduce cost, IT centralization and standardization give us more opportunity to win against local and niche vendor;

8. Potential Competitor  Local vendors : – Local vendors which have been providing network monitoring system;  Niche eAM vendors: – Like MRO and Datastream, to approach provincial Network department, with low price;

9. Challenges  Awareness of the business drivers : – In CMCC, the network department own the network management system, who care more about the operation work management vs synchronization with financial system which is more important to Financial department.  Solution fitness: – Lack of functions in work management functions to satisfy the requirement from the network department;  Local knowledge: – Lack implementation experience in local team;  Pricing model: – Especially when considering many provinces have implemented local system in network operation management;

10. Go to market strategy  Begin from CMCC ;  Work with implementation partner to get more customer requirement, find out pain points, and expand opportunity coverage;  Knowledge transfer and sharing, both internal and with partner;  Approach provincial level customer to feel the fitness and special requirement in EIB;  Influence HQ directly to standardize Oracle EIB solution in the footprint;

11. Support needed from HQ  Knowledge sharing & transfer: – Especially for the implementation experience and reference information; – Training from Dev to local team and partners  Flexible pricing model:  Product direction – Customer requirements and feedback for enhancements – Migrations of eAM & eIB