TRệễỉNG ẹAẽI HOẽC Mễ TP. HCM UNIVERSITE LIBRE DE BRUXELLES HO CHI MINH CITY OPEN UNIVERSITY SOLVAY BRUSSELS SCHOOL MBAVB4 VU TRONG DINH NEW IT SERVICE DEVELOPMENT FOR VINPT MASTER PROJECT MASTER IN BUSINESS ADMINISTRATION (PART-TIME) Tutors Name: Dr. NGUYEN VAN NGAI Students Name: VU TRONG DINH Ho Chi Minh City (2011) ii DECLARATION I hereby declare that this thesis is my own work and effort and that it has not been submitted anywhere. Where other sources of information have been used, they have been acknowledged. iii ACKNOWLEDGEMENTS I would like to express my appreciation to my advisor: Dr. Nguyen Van Ngai for his time, patience and understanding. I wouldn't be performing this work without Dr. Ngai's continual encouragement. My gratitude also goes to the ViNPT team, there are not enough words to describe your excellent work. You made this study happen. The most special thank go to the professors from Belgium Solvay school and HCM Open University. During two years program, they gave valuable knowledge not only for this project but also extremely helpful to my work. I would like to thank to the program coordinators, Mr. Serge, Ms. Tran and Ms. Ha. They gave me your unconditional help through all this long process. I am indebted to my many of my colleagues in MBAVB3 class for their continuous support and interest in what I do. iv SUPERVISOR COMMENTS The topic of the study is suitable for the MBA program that student is undertaking. The paper meet the requirement of the MBA project. The study applied the theory of development of a product or service in a specific case. The result meets the requirement of the MBA project. I agree for this paper to be presented for final evaluation. 9 January 2012 Dr Nguyen Van Ngai v Table of Contents Chapter 1: Introduction 1 1.1 Project rationale 1 1.2 Problem statement 2 1.3 Objectives of the project 2 1.4 Research methodology 2 1.5 Organization of the project 3 Chapter 1: Introduction 3 Chapter 2: Literature review 3 Chapter 3: IT service market and company profile 3 Chapter 4: New IT service development 3 Chapter 5: Recommendation & Conclusion 3 Chapter 2: Literature Review 4 2.1 Normative model of new service development 4 2.2 New service development model 6 2.2.1 Direction 6 2.2.2 Design 7 2.2.3 Testing 9 2.2.4 Introduction 10 2.3 Service blueprinting 10 2.4 Other studies using the same model 13 2.5 Service Development Model for ViNPT 14 Chapter 3: IT Service Market and ViNPT Company Profile 17 3.1 Di An and Thuan An town 17 vi 3.1.1 Industrial Parks 17 3.1.2 Service provider 20 3.1.3 Conclusion 20 3.2 IT service market 21 3.2.1 General Data 21 3.2.2 Kind of services 22 3.2.3 IT Expense 23 3.2.4 IT activities 24 3.2.5 Conclusion 25 3.3 The competition 25 3.4 ViNPT company profile 27 3.4.1 Overview 27 3.4.2 Company Value 27 3.4.3 Goals 27 3.5 Company current issues 28 3.6 The opportunity 30 Chapter 4: New IT service development 31 4.1 New service objectives & strategy 31 4.1.1 New service objectives 31 4.1.2 New Service Strategy 32 4.2 Idea Generation 32 4.3 Idea Screening 34 4.4 Concept Development & Testing 35 4.4.1 Concept Development 35 vii 4.4.2 Concept Testing 37 4.5 Business Analysis 37 4.5.1 Concept 1 - Assumption 37 4.5.2 Capital investment 39 4.5.3 NPV calculation 40 4.6 Service Design & Testing 41 4.6.1 The Service Model 41 4.6.2 Infrastructure Design 43 4.6.3 Process design 44 4.6.4 Details of processes 45 4.7 Marketing Program Design & Testing 48 4.7.1 Marketing programs 49 4.7.2 Execution Plan 50 Chapter 5: Recommendation & Conclusion 51 Appendix A – References 53 Books & Magazines 53 MBAVB courses 53 Appendix B –Idea List 54 Appendix C – ViNPT survey 56 Questionaire 56 Instruction 56 1. General Information 56 2. Hardware 56 3. Software 57 viii 4. IT service 57 5. IT expense 58 Survey Result 59 1. General Information 59 2. Hardware 59 3. Software 60 4. IT service 61 5. IT expense 61 Appendix D – ViNPT Observation 63 Observation Form 63 Observation Result 64 Appendix E – Financial sheets 65 Assumption 65 Fix Assets at Year 1 65 Fix Assets in 5 years 65 P&L projection 66 Balance Sheet projection 66 DCF Calculation 67 ix List of Pictures Figure 2-1 New Service Development 5 Figure 2-2: ViNPT New Service Development Process 15 Figure 3-1 Number of new companies by years 19 Figure 3-2 New investment capital by years 20 Figure 3-3 Chart of General Data 21 Figure 3-4 Statistic of Using Applications 22 Figure 3-5 Kind of IT service 23 Figure 3-6: IT Expense by Categories 24 Figure 3-7: IT activities 25 Figure 4-1 Number of ideas by category 34 Figure 4-2: Overall of IT service 42 Figure 4-3: IT service model 43 Figure 4-4: Infrastructure design 43 Figure 4-5: Re-design process 46 Figure 4-6: Maintenance process 47 Figure 4-7: Support process 48 x List of Table Table 2-1: Four new service strategy options 7 Table 3-1: The top five industries with number of companies 18 Table 3-2: General Data 21 Table 3-3: Yearly Profitability by Brand - Hardware 28 Table 3-4: Yearly Profitability by Brand - Software Development 29 Table 3-5: Yearly Profitability by Brand – IT Training 29 Table 4-1: Concept 1 assumption 38 Table 4-2: Fixed Asset List at year 1 39 Table 4-3: Profit and loss projection 40 Table 4-4: Concept 1 free cash flows calculation 40 Table 4-5: Free cash flows present value 40 Table 4-6: Marketing and Sales objectives 49 Table 4-7: Execution Plan 50 [...]... developed services were more efficiency, effective and profitability 2.5 Service Development Model for ViNPT In order to modify a new model of IT service for ViNPT, some steps which are not really relating to this study will be skipped while some steps are grouped based on their similar characteristics Below is a simple Service Development Model for ViNPT with only seven steps 15 Figure 2-2: ViNPT New Service. .. signed contract with IT companies to do the IT services and two customers hired IT people from IT companies (Source: ViNPT survey result) Figure 3-5 Kind of IT service 2% Using their own employees 29% 49% Using on called service Signed Contract Rented Helpdesk 20% For customer who signed contract with IT companies, 29% of them fully outsourced for IT service 34% customers partially outsourced for network... Thuan An town then the IT service and the competition in that area is explored The second part of the chapter gives readers some information of ViNPT company, the issue that company is facing and the opportunity that company has chance to take Chapter 4: New IT service development This chapter describes the whole IT development model for ViNPT that includes seven steps from new service objectives to... 40 60 80 (Source: ViNPT survey result) 3.2.2 Kind of services Ten years ago, the companies recruited IT staff for themselves However, with the rapid development of IT industry recently, everything was changed, IT service 23 could be executed by both IT staff and outsource Now they trend to use external IT service From an interview of 76 customers, most customers still had their own IT employee However... computer hardware, software development and IT training All three products are facing with many issues Profit of computer hardware is low, software development creates loss And IT training has stopped operating for almost one year In order to be survived, company decide that IT service will be their main business New IT service should be competitive and accept by customers Then it will be launched to the... region The IT service market is a perfect competition in this region It is very hard to collect the information of market share because there are many suppliers and many customers One IT company does not have too many customers One customer may have two or three IT services performed by different IT companies And with same service, the way IT companies serve each customer may also different Some IT companies... model of Scheuing Eberhard E and Johnson, Eugene M., 1989 The model of new service development is characterized by a 15-step sequence of activities The model highlights key influences during the development process, both from the company and from its environment 5 Figure 2-1 New Service Development 6 2.2 New service development model For purpose of explanation, the steps have been grouped into four stages:... support user support For many customers did not sign any contracts with any IT companies but they called external IT services for separated tasks Totally 95% of customers were using external IT services 3.2.3 IT Expense IT expense of companies in this area is increasing From ViNPT survey on 76 companies in this area, 41 companies provide their IT Expenses Researcher found that IT expense is taking... Internet base service and IT security More and more investment in IT system in the companies is an advantage for IT service companies 3.3 The competition In year 2001, there were a few IT service providers in this region They were small computer shops who just provided the simple services such as replacing printer ink, cleaning computers After that several small IT companies provided the on called service. .. of the new service development process, senior management must chart the course of this effort and give it clear direction This stage includes three individual steps: the formulation of new service objectives and strategy, idea generation, and idea screening Step 1: Formulation of new service objectives and strategy Driven by a sense of urgency and a perceived need for the “quick fix,” many service . 28 3.6 The opportunity 30 Chapter 4: New IT service development 31 4.1 New service objectives & strategy 31 4.1.1 New service objectives 31 4.1.2 New Service Strategy 32 . Pictures Figure 2-1 New Service Development 5 Figure 2-2: ViNPT New Service Development Process 15 Figure 3-1 Number of new companies by years 19 Figure 3-2 New investment capital by years 20 . has chance to take. Chapter 4: New IT service development This chapter describes the whole IT development model for ViNPT that includes seven steps from new service objectives to marketing