IPOWER500

1
IPOWER500 Enterprise Informatization Evaluation
System

• Hu Jiansheng
• Deputy Director
• China National Informatization Evaluation Center

2
Economic and Social Background of IPOWER500 Survey

• Chinas development of enterprise informatization
  has 10 years history. Millions of Chinese
  enterprises are undertaking informatization
  construction.
• Enterprise informatization attracts high
  attention from both the government and Chinese
  society. Chinese government established Chinas
  strategy to lead the industrialization through
  Informatization, a new road of a new type
  industrialization.

3
Economic and Social Background of IPOWER500 Survey
Continued

• Chinese enterprises have stepped into an era of
  global competition, success or failure of
  enterprise informatization determines survival
  and development of an enterprise.
• Chinese enterprises and government need to
  research and analyze the effect of how
  informatization brings development to enterprises
  as well as the process of industrialization.
• So NIEC conducted the survey of IPOWER500 in
  2003.

4
Concept of IPOWER500

• IPOWER500 are representatives of the best
  enterprises which have acquired outstanding
  achievements in terms of informatization. At the
  same time, these enterprises possess sounding
  development and innovation capacity as well as a
  certain size in its operation.

5
Indicator System Addressing Quantitative
Evaluation

• The evaluation of IPOWER500 based on Chinese
  Enterprise Informatization Indicator System,
  adopted quantitative evaluation as the major
  evaluation method and including

• Enterprise agility
• E-commerce status
• Capacity of cooperation
• Innovation development capacity
• Effect
• Decision supporting capacity

• Size of enterprise
• Investment
• Strategy of E-I
• Profit capacity
• Human resource
• Application

6
Mathematics Model of IPOWER500

• The design and computing of Enterprise
  Informatization Evaluation System adopts
  synthetical grade analytical method, basic
  formula as below
• Illuminate
• I denotes final score
• Pi denotes each index value after
  eliminating dimension
• Wi denotes each index weight ,?Wi100,
  Delphi method.

7
Multiple Survey Methods

• filling-in and reporting paper questionnaire
  filling-in
• 
  Online filling-in and reporting
• 
  email filling-in and reporting, etc.
• NIEC experts audit and analyze data
• NIEC conduct physical visit to part of the
  enterprises.

8
Birth Procedure of IPOWER500

• Based on above works, NiEC produced a preliminary
  candidate list of IPOWER500 enterprises.
• Filling-in and reporting
• Based on IPOWER500 evaluation modal, NiEC to
  conduct further analysis and more site
  investigation.
• To receive broad expert opinions.
• To form final IPOWER500 list.

9

• Some Conclusions of
• 2003 IPOWER500 Survey

10
Informatization becomes a leading force to
enhance vitality and competition ability
11
The Board and Management Executives Play the
Major Role in Decision Making of Informatization
12
Business and Market Orientation is a typical
characteristics of successful enterprises
Enterprise Accumulated Percentage
Percentage of business department possessing
investment decision power
13
Enterprise Informatization requires summarizing
of typical experiences based on reality

• Enterprise differs from each other considerably.
• Calls for scientific research, on the basis of
  differentiation of industries and enterprises
  needs in different stages, to guide based on
  category, and move on by stages.
• The Top 100 among IPOWER500, whose total revenue
  in 2002 is equal to 1/4 GDP of China, are
  entering Deep Water Area

14
Conventional Enterprises Require Enhancement of
Vitality by Informatization

• Economic globalization requires conventional
  enterprises to enhance vitality and competition
  ability by informatization.
• Informatization helps modernizing of enterprise
  management, globalization of business coverage,
  creating more opportunities, enhancing
  competition ability and development potential.

15
IPOWER500Responses from the Survey
16
Press Releases launch the Survey

• April 8, 2003, the launching ceremony of
  IPOWER500 survey was held in Beijing.
• IPOWER500 survey attracted broad attentions in
  China.

17
Nominations from Government, Enterprise and
Industry Associations

• IPOWER500 survey lasted for 9 months
• Samples sources
• 1200 enterprises nominated by 74 government
  agencies in charging of information industry,
  science and technology, economy and trade
  management
• nominations of 30 key industry associations
• 1000 enterprises nominated by of a number of key
  service providers for enterprise informatization,
  ect.

18
Press Release of Survey Results and Award Ceremony

• IPOWER500 Press Conference and Award Ceremony
  held on Nov.10,2003 in Beijing.
• The event attracted high attention from
  enterprise, media and the Chinese society.
• http//www.niec.org.cn/ipower/031109.htm

19
Brief introduction of  NiEC

• NiEC National Informatization Evaluation Center
  
• Chinas national informatization evaluation
  agency as formally authorized by the Chinese
  government.
• Established on 29th, July, 2001

20
Mission of NIEC

• Establishing the Informatization Indicators
  System under authorization of Gov
• Improving Informatization application level of
  China , raising the competitive power of China

21
Core business of NIEC

• Researching the National Informatization
  Indicators system and its sub- Indicators system
  ( including Enterprise Indicators System, e-Gov
  Indicators System, City Indicators System, etc.
• Evaluating Certificating of IT level of
  enterprises, Measuring the effect of IT
  investment
• Training CIO, IT project manager, strategic
  planning for Informatization, etc.
• Consulting for Informatization
• IPOWER500 Survey

22
Research and Development of Chinese
Informatization Evaluation Indicator System

• IPOWER500 evaluation indicator system is
  originated from China National Informatization
  Indicator System.
• July 29,2001,Chinese Ministry of Information
  Industry issued National Informatization
  Indicators Consititution Plan
• City Informatization Indicators, Enterprise
  Informatization Indicators, Manufacturing
  Enterprise Informatization Indicators were
  released consequently.
• Oct.9, 2002, NiEC issued Enterprise
  Informatization Efficiency Indicator System.

23
The framework of Chinese Enterprise Indicators
System
Enterprise Indicators System
Basic Indicators
Performance Indicators
Assessment Indicators
24
Functions of These Indicators

• Basic Indicators
• Reflect the overall national/regional/industrial
• conditions in enterprise informatization
• Governmental monitoring and census
• Performance Indicators
• Reflect Level of Performance and Sustainability
• Measure Enterprise Informatization Quotient (EIQ)
• Expert Assessment Indicators
• Certification Consulting

25
Brief Introduction to Basic Indicators for
Enterprise Informatization

• I - Strategic Attention
• 1. Attention Paid to Informatization
• II - Infrastructure
• 2. Ratio of Informatization Investment to Total
  Investment in Fixed Asset
• 3. Computers Owned by per 100 Staff
• 4. Performance of Networks
• 5. Percentage of Computers Online

26
Continued
III Application 6. Rate of Online Information
Acquisition 7. Level of OA 8. Level of IT
Support to Decision 9. Level of Informatization
in Core Business Processes 10. Level of the
Construction of Enterprise Portal 11. Rate of
E-Marketing 12. Level of IT Application in
Management
27
Continued
IV Human Resource 13. Index of Human
Resource 14. Popularity in IT Skills 15.
E-Learning V - security 16.
Ratio of Expenditure in security to the Total
Investment in Informatization 17. Rate of the
Application of security Measures
28
Continued
VI Performance Index 18. Rate of Inventory to
Total Current Asset 19. Turnover of Current
Asset(times/year) 20. Speed in Making Virtual
Financial Reporting 21. Growth Index
29
Efficiency Indicators are focusing on
profitability and development capacity

• The design of enterprise informatization
  efficiency indicator system demonstrate that
  enterprise informatization should be based on an
  informatization strategy which should be
  profitable,practical and with overall planning,
• To guide a healthy development of informatization
  of Chinese enterprises from strategy, leadership,
  investment structure, application, profitability,
  human resources, organization culture,
  information security, ect.
• Indicators adopt bench marking management design
  mentality, possessing good uniformity and
  versatility for different industry and
  enterprises with different sizes.

30
Performance Indicators
Strategy
Corporate Strategy
Technology Strategy
Management
Application
Databases
security
Suitability
Idea
Investment
Amount
Customer Value
IT Input Structure
Fitness of Resources
HR Structure
Operation Harmony
Organization Culture
Network Readiness in Organization
Information Agility
Corporate Culture
Internal Operation Agility
Agility
Responsive Agility
Innovation Agility
31
China National Benchmark Bank for Enterprise
Informatization
Governmental Document
32
The Selection of National Benchmark Enterprises
in Informatization

• NIEC is carrying out the selection of benchmark
  enterprises in informatization nationwide (the
  domestic part).

33
Thank You!
Contact
Hu Jiansheng TEL [phone] FAX
8610-65542666 E-mailniec_at_niec.org.cn Web
www.niec.org.cn www.ciq.com.cn Add 1st Floor
of D Block, Fuhua Building, Dongcheng
District, Beijing, PRC, 100027