DEVELOP STRATEGY FOR THE POST & TELECOMMUNICATION INSTITUTE OF TECHNOLOGY IN THE PERIOD OF 2015-2020 TABLE OF CONTENT TABLE OF CONTENT BS : Business Strategy IT : Information technology P&T : Post and Telecommunication INTRODUCTION THE URGENCY OF RESEARCH TOPIC: RESEARCH OVERVIEW THESIS MISSIONS: .10 3.1 Thesis objectives: 10 3.1 THESIS OBJECTIVES: 10 3.2 Thesis missions: 10 3.2 THESIS MISSIONS: 10 RESEARCH OBJECTS AND SCOPE 10 4.1 Research objects 10 4.1 RESEARCH OBJECTS 10 4.2 Research scope .10 4.2 RESEARCH SCOPE .10 RESEARCH METHODOLOGY .11 THESIS’S ANTICIPATING CONTRIBUTIONS 11 THESIS STRUCTURE: 11 CHAPTER I : THEORETICAL BASE .12 1.1 CONCEPT OF STRATEGIC ADMINISTRATION 12 1.1.1 Concept of strategy: 12 1.1.1 CONCEPT OF STRATEGY: 12 1.1.2 Nature of strategy .13 1.1.3 Mission of strategy: 14 1.1.4 Characteristics of strategy: 15 1.1.5 Mission .16 1.1.6 Vision 17 1.1.7 Objectives 18 1.1.8 Internal environment 19 1.1.9 External environment 19 1.2 Developing strategy .19 1.2 DEVELOPING STRATEGY .19 1.2.1 Analysing external environment .20 1.2.2 Environment analysis: .26 1.3 SWOT Analysis .31 1.3 SWOT ANALYSIS 31 1.4 Strategic control and evaluation 32 1.4 STRATEGIC CONTROL AND EVALUATION .32 CHAPTER II: ANALYZING STATUS AND PROPOSING STRATEGY .34 2.1 Introduction to the Institute: 34 2.1 INTRODUCTION TO THE INSTITUTE: 34 2.1.1 General introduction 34 2.1.2 Position, roles and functions: 34 2.1.3 Operation: 34 2.1.4 Results of training and research activities in the Institute 35 2.2 Analysis of strength and weaknesses the Institute 36 2.2 ANALYSIS OF STRENGTH AND WEAKNESSES THE INSTITUTE 36 2.2.1 Institute’s products 36 2.2.2 Organization 41 2.2.3 Operation principles of the Institute 43 2.2.4 Financial potentials and material bases of the Institute .44 2.3 Analysis of commercial environment of Institute 48 2.3 ANALYSIS OF COMMERCIAL ENVIRONMENT OF INSTITUTE 48 Internal analysis of the Institute: 57 INTERNAL ANALYSIS OF THE INSTITUTE: 57 2.4.1 Analysis of value chain: 57 2.4.2 Analysis of core competence .59 2.4.3 SWOT analysis of the Institute 61 CHAPTER III 64 DEVELOPING STRATEGIES, PROPOSING OPTIONS, SUGGESTIONS FOR THE INSTITUTE IN THE PERIOD OF 2010-2012 64 3.1 Developing strategies for the Institute 64 3.1 DEVELOPING STRATEGIES FOR THE INSTITUTE 64 3.1.1 Message of Institute’s mission 64 3.1.2 Institute’s vision 64 3.1.3 Strategy of the Institute in the period of 2010 - 2012 65 3.1.3.1 Strategy of products and servicse 65 3.1.3.2 Institute’s innovation strategy on organization .69 3.1.3.3 Income and yield strategies of Institute 71 Source: Plan 2008 of the Institute .72 3.1.3.4 Quality control strategy by internal standards .72 3.1.3.5 Strategy to Unite "PTIT" trademark 73 3.1.3.6 Strategy to improve sales system 74 3.1.3.7 Strategy on human organization 75 3.13.8 Financial management strategy .75 3.1.3.9 Strategy for relationship 76 3.2 Strategic solutions: 77 3.2 STRATEGIC SOLUTIONS: 77 3.2.1 Institute Management : 77 3.2.2 Leading culture and strategy: 79 3.2.3 Plans: 80 3.2.4 Quality control: 82 3.3 Recommendations : 82 3.3 RECOMMENDATIONS : 82 CONCLUSION 84 ABBREVIATIONS BS : Business Strategy IT : Information technology P&T : Post and Telecommunication PTIT : Posts & Telecommunications Institute of Technology R&D : Research and Development SWOT : Strengths, weaknesses, opportunities and threats VNPT : Vietnam Post and Telecommunications Group WB : World Bank LIST OF FIGURES Figure 1.1: Overall strategic administration model Figure 1.2: Development process for business strategy Figure 1.3: Forces model of M Porter Figure 1.4: Value chain model Figure 2.1: Competitive active force of the Institute Figure 3.1: Overall strategy of the Institute Figure 3.2: Defining model of business plan implementation program LIST OF TABLE Table 1.1: Steps to define business targets in enterprise Table 1.2: SWOT matrix (Strength, Weakness, Opportunity, Threat) Table 2.1: Institute’s labor Table 2.2: Some key financial targets in 2008 Table 2.3: Scale of public and unpublic students in the period of 2010-2014 Table 2.4: Enrolment statistics and training quality access in 2010 Table 2.5: SWOT analysis Table 3.1: Revenue indicators of the Institute INTRODUCTION The urgency of research topic: Training, research and technology transfer in Vietnam have developed quickly in both quality and quantity, contributing much to the national modernization and industrialization State-owned schools were the only to be seen in the past, but now Vietnamese education is very abundant and various with a lot of training units, including private, and semi-public schools; research, and technology transfer units that belong to all economic sectors, social, occupational and even foreign organizations This serious development of training, research and technology transfer in Vietnam is originated not only from the essentially objective economic demands of diversifying and multilateralizing external economic relationships, but also from the strong support of Party and Government A number of decrees, policies, and methods are important clues in management and improvement of training, research and technology transfer all over the country, boosting up the national career of training, research and technology transfer However, due to the shifting economy, Vietnam is now coping with some difficulties In general, market factors have not been defined completely in combination with State economic management is under innovation, in appearance, methods and contents to fit with State functions in market economy In this background, training, research and technology transfer in our country are now just in the stage of switching and developing Many activities of training, research and technology transfer have not been executed or have not called much attention from economic sectors like domestic enterprises… State management in training, research and technology transfer has not met the requirements of economic development in general and support for enterprises in particular Especially, State management in training, research, and technology transfer is not properly efficient for schools, institutes and enterprises Post and Telecommunications Institute of Technology (hereinafter be called Institute) is established according to the Decision no 516/TTg, issued on July 11 th 1997 by Prime Minister Post and Telecommunications Institute of Technology belongs to the Vietnam Post and Telecommunications Group (formerly, Vietnam Post and Telecommunications Corporation) and operates towards the purpose of combining research and training activities to meet the actual demands of business This is the pilot model to form mechanism to mobilize resources (both in economics and actual environment) from developed State-owned enterprises for the activities of research and training to meet the actual requirements of enterprises when the State budget for these activities is still limited as well as the ability of applying these activities into actual life is not high However, being a State career unit that belongs to Post and Telecommunications Group and operates like a career unit, the Institute is bound by State regulations for a career unit In addition, although the Institute is the combined model of training and business – a University belongs to enterprise, it does not receive any special mechanism Organization is changed slowly; training and research activities are rather separate, therefore the relationship between training and research that can build up the Institute’s strength is not closed Research overview In the recent years, there are some authors composing researches on training, research, and technology transfer, but there is no deep research on policies, education quality, and financial mechanism for education Scientific researches just mention about mechanism and suggest some recommendations to boost up research, but leaving the logical connection between research and business Moreover, researches mainly focus on a detail aspect, but not the bind and structure of organization to achieve expected goals Therefore, this thesis will focus on the topic “Develop the Strategy for Post and Telecommunications Institute of Technology in the period of 2015-2020” The thesis will clarify kinds, methods, and content of the development strategy of Post and Telecommunications Institute of Technology in the intergration period of 2010-2012 Thesis missions: 3.1 Thesis objectives: Basing on the theoretical and practical management of research and training in some countries in combination with actual business to meet social demands, the thesis will clarify the overall strategy and the components of that overall strategy for the Institute in market economy in the period of 2010-2012 3.2 Thesis missions: - Interpreting the basic theory of the strategies in research, training and technology transfer units - Analysing the actual situation of management mechanism, operation method; evaluating strong and weak points, as well as results after 12 years of operation - Proposing development strategy of Institute in the field of training, research, and technology transfer of Post and Telecommunications Institute of Technology in the period of 2010-2012 Research objects and scope 4.1 Research objects Theoretical and practical problems in the overall strategy relating to training, research, and technology transfer of Post and Telecommunications Institute of Technology 4.2 Research scope + Mainly focusing on analyzing the organization of training, research, and technology transfer in Post and Telecommunications Institute of Technology + Proposing overall stratergy to change the Institute from a career unit into business one in the field of training, research, and technology transfer of Post and 10 3.1.3.7 Strategy on human organization major problems on human resources that Institute should solve are salary structure, rewards, working quality management and evaluation, training and restructure of officers - Salary and rewards structure: Competitors of Institute pay 50-100% more for engineers and 100% more for managers If this problem is not solved immediately, Institute will loose excellent lecturers and researchers - Working quality management and evaluation: Current quality evaluation system is not effective with the result of more than 90% of officers are ranked A level Not all criteria are clear and responsibility requirement is not high - Management system and internal mechanism of Institute (mechanism; regulations; procedures) are all needed to review because they are all inadequate, asynchronous and cannot create motivation for workers - Training: there are very few of organization training programs for senior managers - Restructure of labour force: Current working capacity of Institute is less than that of Competitors Restructure of labour force: checking, rearrange labour force to eliminate inadequacy of human source; increase the effectiveness of training expense provided by Group to retrain human source Improve salary and rewards, manage in working efficiency and “not enroll more employee” in the near future 3.13.8 Financial management strategy Like human resource, financial team of Institute remains major problems including implementation of traditional accounting role, value management and target defining, increasing of combined advantage and management of checklist of trading fields 75 Therefore, it is necessary to establish an organization structure for financial to complete new role and task Institute to improve functions of financial and enhance more roles for financial as follows: - Traditional accounting role: - Value management - Combined management to make advantage - Management of checklist of trading fields - Renovation of management mechanism of production and trading, increase the independence of units towards defining clearly owner of services, build new structure and policy for internal management, and information system management 3.1.3.9 Strategy for relationship Relationship with Group: Group owns 100% of Institute’s capital; carry out rights and obligations of owner regulated in law and at Charter of Group and Organization and Management Charter of Institute Relationship with member units in Group Relationship with member units in Group is equal relationship between independent legal entities that share the market, trademark, technology on the basis of corporation schemes approved by Group and encouraging mechanism to use Group’s services at negotiated price Relationship with units in Institute: a With members that dependently account: Implement according to Organization and Management Charter of Institute, Organization and Management Charter or Procedure of units; regulations, rules, gradation and authorization of Director of Institute b With members that independently account: Institute implements rights and obligations and responsibilities of share holders according to legal regulation and Organization and Management Charter of member units and Law of Enterprise 76 Relationship with other organizations a Relationship between Institute and State government authorities: Relationship with State government authorities as regulated in law; b Relationship between Institute and other organizations: Corporation between Institute and other organizations is Relationship between independent legal entities on the basis of mutual beneficial corporation and through economic contract 3.2 Strategic solutions: To carry out effectively general strategy, Institute shall select suitable options and steps: 3.2.1 Institute Management : Improve organization structure Build a plan to submit to Government asking for allowance that PTTT is state training-research organization invested and owned 100% charter capital by Vietnam Post and Telecommunication Group; Institute is organized and operated in the model of mother company - member company Arrange and restructure direct under units towards high specialization; through implementation shall ensure stability and flexibility Stability brings Institute and direct under units the necessary capability in inheriting products that have been and are under process as well as process management Flexibility in structure brings about development opportunities, competition capability, power source allocation to create necessary competition advantage Organization structure currently includes dependent departments, all decisions are made by the capital office and the power is belong to the Board of management This is a advantage in the plan to be the leader in the low cost business and make difference in management activities However, to meet the needs of expanding the scale, promoting annual revenue and profit, PTIT should build a suitable organization structure to manage the operation Therefore, based on the 77 PTIT analys, business characteristics, researchers suggest that the organization structure needs to be adjusted according to the functional structure PTIT also authorizes their departments to be more active in making decision and allocating all related activities in production process, suggesting financial strategies to attract human resource and ensure the quality of their products PTIT must have solutions to control its quality, ensure the establishment of the functional structure in the field of information technology, product assessment, flexibility and the production scale Internal management innovation PTIT’s role is to renew the operation and management process from state own into business company Therefore, PTIT needs to build a new set of regulations, standards, criteria, processes…The internal management process should include: process to manage the operation, customers, innovation methods, social problem resolutions… Operation management processes Operation management processes comprise basic procedures which operate daily and by which the business produce their products, services PTIT and its departments are potential in limiting the risks and effectively server the state own center strategy on IT Due to the main activities of PTIT is to train, research and transfer technology, almost activity management processes focus on processes which manage the training quality, research quality and the application of technology transfer’s products Partner and customer management processes Partner and customer management processes are to expand and strengthen the relationships between PTIT and all oriented customers Now, VNPT is the big customer of PTIT, therefore, its necessary for PTIT to find solutions to keep big and potential custiomers Besides, PTIT need to expand their relationships with new international partners and customers 78 Currently, PTIT has not yet had a specific process to control the customers, therefore, to create a strong relationship with usually customers, seek new partners, PTIT should build a customer management process which focuses on functions: to keep customers and develop partners Human resource development: In order to reach mission and strategy, PTIT should develop invisible assets, such as, human resource, information resource and organization resource Human resource To be an organization acting in the field of technology training, research and transfer, PTIT’s current human resource is really limited PTIT have not yet established an overall personnel strategy within PTIT and all departments That is the most important factor in organization acting in technology training, research and transfer Therefore, PTIT should train staffs, create good conditions for staffs to learn abroad, and improve their knowledge and abilities It also should build a financial support for those who are willing to learn about science technology PTIT needs to build a specific personal strategy (recruitment – staff assessment) Information resource Currently, PTIT is using document, yahoo software to control and share information within PTIT It’s necessary to explore and make use of these software’s properties to standardize the local area network, standardize the storing process, make advantages for PTIT to manage and store the information Organization resource PTIT should enhance abilities in leading, team working and independent working 3.2.2 Leading culture and strategy: Organizing culture is the set of specific values and standards which are shared by people and groups in the organization and control the relationships among them To implement the strategy, PTIT should: Build strong organization culture: - To spread and maintain the active working spirit within human resource 79 From the values: belief in, idea about mission and vision, PTIT should build standards of respect, profession, effectiveness They are guidelines, regulations, obligations… - To implement activities which encourage new culture values - To enable staffs take part in conferences, meetings… to create consensus environment to a new culture - To change the working routines - To create encouraging policies Leader - Leader is the person who inspire dynamic to all staffs the managers must handle current situations of their departments, and have solution to solve all potential issues - The managers is encouraged to meet and discuss with under level staffs 3.2.3 Plans: If a plan is so far from the reality, it’s considerd as infeasible plan Therefore, strategy building must glue with the plan to implement it There will be no distance between strategy planning and strategy implementing Strategy implementation affects all activities within PTIT, and also affect strongly other business areas To implement strategy successfully, PTIt should point out the implementing program The process to identify the implementing program is illustrated as in Model 3.3 80 1.1.Identify Identifythe thestrategic strategicimplementing implementing program program 2.2.Establish Establishaaspecific specificplan plan 3.3.Select Selectprogram programleaders leaders 4.4.Estimate Estimatecosts costs Figure 3.2 Model to identify business plan implementing program The program identification to directly implement business strategy should focuses on: mutual activities need to be solved in one program; programs need to be limited so that they express specific functions To identify the dependence among programs, plan the schedule to implant programs The dependence among programs may arise from many resources, such as, technology, human, supports from departments, time, finance, strategic partners, training… It’s better to select programs leaders before implementing the detail plan This enable the leaders take part in the detail plan identification A good program leader usually have many other specialist to keep necessary position to help them in the detail plan identification However, in fact, to select a suitable leader who meet 81 all these requirements is a difficult task To each program, senior manager must be authorized to plan and implement the program in detail Budget estimate The plan will be implemented successfully if only there is clear and feasible plan PTIT should also consider the list of personal to implement the plan, and the plan’s feasibility 3.2.4 Quality control: To implement the plan on schedule, the Board of manager should recognize and give solutions to all potential problems They can use tools as below: - Effectiveness standards, which are built for each program through the analysis of production costs, total and individual revenue - To periodically review the plan implantation (once a quarter) to check what departments have done, not yet finished, to find out problems need to solve, to compare the implementation with the purposes To that, the leaders should encourage their staffs show out and discuss about their problems in the duration of plan implementation - To take unscheduled review to find out difficulties To evaluate the effect of the strategy, PTIT should build a set of standards to measure the strategy implementation PTIT should use financial instruments, survey sheet… 3.3 Recommendations : The report which research the overall strategic establishment is based on information related to all PTIT’s activities from 2006 to quarter I-2010 Through the SWOT analysis to find out advantages and disadvantages also Hopefully, the Board of manager can use this to manage the activities in PTIT effectively However, beside implementing the strategic plan, the Board of manager should 82 periodically review and adjust the management process, and also discuss and show out solutions to all potential issues 83 CONCLUSION At present, Post and Telecommunication Group is transferring organization model, business methods to improve business efficiency During the transference, obviously, the Institute needs to transfer The Institute can make use of advantages and select right options to reduce risk, create complexity for the innovation of the Institute In our country’s context of socialism-oriented industrialization, mordernization, management skills and executive staff are of essential needs Therefore, the demand for training and retraining human resources are always high To meet these demands, the Institute has to change the operation mechanism into a, independent enterprise with the ability of self-balancing income and outcome sustainability In order to gain these targets, the Institute must be aware of its roles, rights, and strategy Basing on that, methodology and implementation methods that are most suitale with the Institute’s conditions, characteristics, business advantages are drawn out To contribute to these above factors, the research report includes: Systemizing the basic theory of business strategy in general universitites, institutes, as well as Post and Telecommunications Institute of Technology; defining the role of training, research, and technology transfer to the common development of VNPT and our country Applying the assessment method according to the management targets to analyze, assess the operation of the Institute Basing on that, reasons for the Institute’s inefficiency are carried out In the report, there are trends in other countries, in Vietnam that can be referred to develop overall development strategy that is suitable with the current context 84 Research, options and suggestions in the report is highly feasible because they are based on the theory and practice of management and operation However, during the research, there are still some shortcomings that need to be completed and added in later researches, including: Continue to research on standard model and target to apply for the assessement of compatability of organization as well as business results of a State units when transferring from career unit into business unit Due to limited time, research for the sector of technology transfer of the Institute is not clear, for example: technology trend, research and transfer direction, research results application into business production 85 REFERENCE Vietnamese Mai Van Buu (2001), Business administration theory curriculum, Science and Technology publisher Financial report of the system of public schools in New York City: http://schools.nyc.gov/NR/rdonlyres/19750B74-3E32-4DA7-B040452870EEE7C7/0/AnnualFinancialReports2007.pdf Ministry of Post and Telecommunication (2000), 20-year development strategy (2000 – 2020) Government (1997), Decree no 109/1997/NĐ – CP about Post and Telecommunication Government (2001), Decree no 158/2001/QĐ – Ttg about the approval of develpment strategy of Post and Telecommunication up to 2010 and the direction til 2020 Government (2007), Decree no 516/TTg issused on July 11 1997 by Prime Minister about establishing Post and Telecommunication Institute of Technology Government (1997), Decree no 109/1997/NĐ-CP issued on 12/11/1997 by Government about Post and Telecommunication Government (1997), Decree no 90/NQ-CP issued on 21/8.1997 by Government about the socialization tendency in education, health and culture Government (1997), Decree no 73/1999/NĐ-CP issued on 19.8.1999 by Government about the socialization encouragement for actvities in education, health, culture, sport 10 Government (2005), Decree no 115/2005/NĐ-CP issued on 05/09/2005 by Government about self-control mechanism by scientific technology organization 11 Government (2004), Decree no 199/2004/NĐ-CP issued on 03/12/2004 by Government about applying financial development into State companies 12 Government (2001), Decree no 63/2001/NĐ-CP issued on 14/9/2001 by Governmentabout changing State enterprises into one member limited companies; 86 13 Government (2001), Decree no 63/2001/NĐ-CP issued on 14/9/2001 Governmentabout changing State enterprises into one member limited companies; 14 Government (2005), Decree no 05/2005/NQ-CP issued on 18/4/2005 by Government about improving socialization in education, health, culture and sport; 15 Government (2005), Decree no 14/2005/NQ-CP issued on 2/11/2005 by Government about basic and overall university education in Vietnam in the period of 2006-2020; 16 Government (2008), Decree no 69/2008/NĐ-CP issued on 30/5/2008 by Government about encouragement policies of socialization in education, vocational training, health, sport and environment ; 17 Government (2003), Decision no 153/2003/QĐ-TTg issued on 30/7/2003 by Prime Minister about regulation issuance in universities; 18 Government (2010), Decision no 61/2010/QĐ-TTg issued on 17/4/2010 by Prime Minister about issuing organization and operation mechanism of private universities; 19 Government (2005), Decision no 58/2005/QĐ-TTg issued on 23/3/2005 by Prime Minister about approving pilot proposal of establishing VNPT; 20 Global Post Union (1999), Beijing UPU Conference Declaration 1999, Post publisher 21 Doan Thu Ha, Nguyen Thi Ngoc Huyen (2002), Management Science curriculum I, Science and Technology publisher 22 Doan Thu Ha, Nguyen Thi Ngoc Huyen (2002), Management Science curriculum II, Science and Technology publisher 23 Doan Thu Ha, Nguyen Thi Ngoc Huyen (2000), socio-economic policy curriculum, Science and Technology publisher 24 Bui Xuan Phong (2002), Administration of Post and Telecommunication enterprises, Post publisher 25 National Assembly (2002), Laws on Post and Telecommunication, Post publisher 87 26 National Assembly (2005), Business laws issued by XI National Assembly of Socialist Republic of Vietnam, 8th meeting and was approved on 29/11/2005; 27 National Assembly (2003), State business laws issued by XI National Assembly of Socialist Republic of Vietnam, 4th meeting and was approved on 26/11/2003; 28 National Assembly (1999), Business lawsissued by X National Assembly of Socialist Republic of Vietnam, 5th and was approved on 12/6/1999; 29 National Assembly (2000), Science and Technology laws issued by X National Assembly of Socialist Republic of Vietnam, 7th meeting and was approved on 9/6/2000; 30 National Assembly (2005), Education laws issued by XI National Assembly of Socialist Republic of Vietnam, 7th meeting and was approved on 4/6/2005; 31 Nguyen Manh Tien, deputy director of Staff training, Central organization board, Mark-Lenin education, Ho Chi Minh spirit in university, Party magazine November 2005 32 Vu Quang Viet, Vietnamese education: reasons for the downward trend and necessary innovation, New era, 13th edition, March 2008 33 Vu Quang Viet, education development: Roles of tuition fee, State responsibility and Sate budget New era, 13th edition, March 2008 34 Post corporate (1998), Decree no 02/1998/TT-TCBĐ issued on 20/6/1998 by Post corporate about guideline to implement decree no 109/1997/NĐ-CP 35 VNPT (1997), decision no 229/1997/QĐ-TCBĐ/HĐQT issued on 09/9/1997 by VNPT about issuing organization and operation mechanism for Post and Telecommunications Institute of Technology 36 Website: http://www ptit edu.vn/ 37 Website: http://www.veffa.org/ 88 English World Bank (2005), Building Skills to Evaluate Development Interventions, Interna1tional Program for Development Evaluation Training (IPDET), Carleton University, IOB/Ministry of Foreign Affairs, Netherlands Website: http://www.wipo.int Website: http://science.thomsonreuters.com/ 89