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  1. 1. History & BackgroundCHAPTER-1 HISTORICAL BACKGROUND INTRODUCTION & BACKGROUND: PAKTEL Limited is the leader in terms of coverage,network quality, customer services and value addedservices. It is currently offering its cellular services in22 cities of Pakistan. At present it is the fastest growingcellular network in the country accompanied by the highestgrowing customer base. It is a company that believes inproviding only the best to their customers.PAKTELs customer focused policy is what makes the companybetter than others. They are always striving to give theircustomers the services they deserve.WHY PAKTEL:PAKTEL offers an impressive array of useful services withreal utility, designed to make life easier andcommunication more powerful. Lets take a look at whyPAKTELs services offer greater value for money and why somany have already subscribed to them.PAKTEL’s mission is
  2. 2. Plain & Simple …Our Customers Come First!Being the first and foremost cellular company in Pakistanand the preferred choice of Customers, PAKTEL offers thevery best in voice communications. Care is their traditionthey keep a constant watch over its customers and to guidethem with PAKTEL services our 24-hour Customer ServiceStaff is just one call away from its customers.They value customer support and are constantly striving toserve them with the highest level of Value Added andCustomer Services, as part of PAKTEL’s ongoing CustomerSatisfaction Program.
  3. 3. PAKTEL AND MIC1 (Millicom International Company)Millicom acquired PAKTEL in year 2000 PAKTEL claims thatNielson Research Company does all its market research andmakes it aware of the changing market trends and customerneeds. Either it needs to change its research organization.1 Parent company of PaktelStrengths:PAKTEL has the following strengths:1. first mobile company in Pakistan2. The Organizations main strength is that they haveprestige to its customers. It’s a totally customer focusedorganization.3. The quality of service is improving day by day. It hasa well-trained Workforce. PAKTEL has a very qualified baseof employees who are skilled in their areas of work andhave proved their competence 4. The 4. researchdepartment is well equipped and has highly skilledresearchers.1. The company has targeted the class of customers that was previously being neglected by other cellular2. operators. Therefore it has been able to develop a niche of low-income mobile phone users.7. PAKTEL is offering its products and services at aprice that is making it difficult for other cellularoperators to offer. Thus it has the strength of having thelowest prices being offered in the market.
  4. 4. Or its strategy for if Neilson did their Job right inidentifying what the consumer so desperately required, whyPAKTEL persisted in pursuing in exact opposite.With the first cell phone operation PAKTEL had an enormousbranding leverage. Almost all practitioners and academicsagree being there first is the single most integral and8. PAKTEL has the largest network then any other company has in PakistanWeaknesses:1. Well-established in GSM technology competitors already exist in the industry.1. As the company is new in GSM technology it has yet made large investments. It will take some time before it starts generating profits2. PAKTEL is not spending too much on advertisement3. PAKTEL has to go through the stages that these companies have already completedOpportunities:1. Improvement in technology has enabled PAKTEL to provide quality services.2. Consumers attitude towards the mobile services have a positive impact on the company, as they demand quality services from PAKTEL.
  5. 5. inextricable part of the branding process. It renders thesome natural advantage of scoring more runs in a career ifone opens the batting over the one who comes at NO.10bureaucratic structure technology that almost went absolutein the stone age,3. The target market has vast potential.4. The target market is largely untapped.4. There are very few competitors, in reality only two i.e. Mobilink and U-fone5. PAKTEL can become a market leader in a very short time period.7. PAKTEL can enter areas in which there is little or nodevelopment and become a leader through providinginnovation and entering these areas before its competitors.8. PAKTEL has the opportunity of being able to capture potential customers who have not been targeted as yet by its competitors.THREATS:1. The biggest threat that PAKTEL faces is that the PTCLmonopoly will be broken in 2005. This will result in newcompetitors entering the telecommunication industryaccompanied by new competitors in the cellular industry ofPakistan.2. There are several Govt. regulations and laws that thecompany has to consider and abide by, which sometimes maylead to delays and inconvenience.3. There are competitors that are already established inGSM technology
  6. 6. UFONE caught PAKTEL comfortably sleeping with the researchreports in their face and entered a market segmentvirtually unoccupied with the largest growth potential.ANALYSIS OF CUSTOMERPAKTEL’s total outlook is in one word “Customer Oriented”.Following this they pay special attention to  Types of customers  What customers expect  What present image of mobile services exists in their minds?Types of customers included analyzing such facts as howmany people already use mobiles, how many desire to be ableto access such services and what income group level ofcustomers could be turned into mobile phone users.What customers expected cover the idea of bringing tosurface how the present market viewed the mobile i.e.4. The unstable economic conditions create problems aswell as the company’s investment decisions are affected.5. The political instability and changing Governmentsmake it difficult to comply with the changing Govt.Policies.6. PAKTEL faces consistent and intense competition fromits competitors through innovation and price along with thevariety of packages and services being offered. Thisresults in a continuous threat of the competitors graspingmarket share from PAKTEL.7. Increased customer awareness has made it imperative for thecompany to maintain quality of service otherwise the company can loseits customers
  7. 7.  In terms of status symbol  In terms of an affordable commodity.PAKTEL conformed to the fact that in the market mobileswere luxury item meant to represent a typical class ofsociety and as a result of customer analysis PAKTEL set outto break down the existing image and bring about a morepositive attitude in terms of mobiles and its services.In such circumstances PAKTEL was striving to launch theirmobile communication services under the slogans ofaffordability “is say sasti sirf khamooshi”.Making a biased customer ready to push back his previouslyconceived notions and adapt to a whole new set of ideas isnot an easy task to barriers, which stood in their way, wereValue added services:Call centre:A Call Center is a sophisticated voice operations centerthat provides a full range of high-volume, inbound oroutbound call handling services, including customersupport, operator services, directory assistance,multilingual customer support, credit services, cardservices, inbound and outbound telemarketing, interactivevoice response and web-based services10.A call center can be used for telemarketing, sales,customer support, or center may contain a few or hundredsof agents who handle calls to relay business information.Call center consists of a complex ofTelecommunication infrastructures, computer supports andhuman resources organized to manage effectively andefficiently the incoming and outgoing telephone calls of agiven organization. The activity of a call center is
  8. 8. performed chiefly by skilled operators who, using telephoneand computer, interact with the exterior making orreceiving calls to manage various services.((10 Source:; Up Callll Centters iin Pakiisttan Page 12 off 43A Guiide ffor Locall Enttrepreneurs and Busiinesspersons)In Paktel they say taht All Your Needs are Just a Call AwaySimply call 111-222-111 from a landline or 304 from PaktelGSM mobile to access our Call Centre.Paktel’s state-of-the art, toll free call centre isequipped with the most sophisticated technology inPakistan. However that is not cutting edge. It is well-trained and cordial staff present round-the-clock to assistyou with all your cellular needs whenever and wherever youneed, that makes Paktel Call Centre so special.
  9. 9. Personal Identification Number(PIN) & Personal/PINUnlocking Number(PUK)Paktel provides added security to our valuable subscribers.Whenever you switch on your mobile, feed in the PersonalIdentification Number(PIN) code 0000.If an incorrect code is punched you will be required topunch in a Personal/PIN Unlocking Number(PUK) code. You canrequest for the PUK code from Call Centre by dialing111-222-111 or visiting your nearest Paktel Sales &CustomerServices Centre.You can change your PIN code(from your handset) wheneveryou want for added security. Paktel PIN & PUK Codes-anotherValue added feature – introduced by the pioneers ofCellular Industry in PakistanInternational SMS:Paktel GSM mobile connection is the most powerfulcommunication tool in your hand. Want to stay in touch withyour loved ones living abroad, want to wish your dad,brother working in the U.S, U.K, or Saudi Arabia…. You cando all that with Paktel GSM International SMS. Itsprocedure are very simple to send SMS internationally thatare as followTo send an international sms, please follow the simplesteps: • Write your message • Enter recipient’s number as described below:
  10. 10. (00)(Country Code)(Subscriber Number) • Send Country Codes:Conference Calling:Paktel GSM mobile is meeting room. With Conference Callingyou can talk to two different people on two differentnumbers at the same time. Its just like having a meetingon phone, saving your precious time and money.Its method isPlace first call and wait for the answer, while the firstcall is on the line, dial second number and press send/yes • Press 2 send/yes to alternate between two callers • Press 3 send/yes to have a three party conversation • Press 1 send/yes to release the active party, or simply press end/no while talking to the party you wants to release.Call Waiting / Call Hold
  11. 11. Now you never have to miss an important call. If you arealready on a call and someone else calls you, your phonewill indicate through a beep and CLI that another caller istrying to reach you.You can then choose to place the current caller on hold andanswer the new call. If you choose not to attend the callit will automatically be diverted to your Voice Mailbox. Activate: * 43 # (One Time) Deactivate: # 43 #How to Toggle between 2 Calls? • Press 2 send/yes to alternate between two callers • Press 1 send/yes to release the active party, or simply press end/no while talking to the party you wants to release.Voice MailPaktel GSM offers you Voice Mail services. Whenever you areunable to attend a call, your caller can leave a messagewith Paktel GSM Voice Mail.
  12. 12. So now you can relax because even if your phone isswitched off, in use or out of a coverage area, callers aredirectly diverted to your Paktel Voice mail facility wherethey can leave a message.Voice Mail is your one stop solution: • No activation charges • No monthly charges • Rs. 1.5 per message retrievalCall Forwarding:Call Forwarding allows you to divert your incoming calls toanother Paktel number,
  13. 13. when your mobiles off, unreachable or you dont want tobe disturbed. For details please call 304 from your PaktelGSM mobile.Caller Line IdentificationCaller Line Identification enables you to see the number ofthe caller on your mobile screen before you answer the call This way you can identify the caller and choose to eitherattend or ignore the call. With most handsets, the name ofthe caller is also displayed if you have it stored on yourhandset. The power of communication is in your hands.Feedback
  14. 14. Paktel is also taking feed back from customer on webthrough they ablw to know the need of customers and able tosatisfy the customersThe form of customer as follow. Your Name: Your E-Mail: Mobile Number: Subject: Priority:Your Comments:Hardware infrastructure of Paktel:Paktel is using different types of software and hardwarethat are essential part to develop and run any informationsystem.Some hardware’s are as under,  Intel base as server for windows  Acquire UNIX server for Linux operating system but still is not in use.
  15. 15.  Solaris server.  HP for Client and monitor of Philips and Samsung  Sun for Linux Harware using in Human resource Department: • Intel based servers • hp and dell computers.Software infrastructure of Paktel:Some software’s are as under.  Oracle server engine for database.  Oracle developer.  Windows XP professional.  Windows 2000 for server.  Windows 2000 professional for clients.  Office XP  Acrobat reader.  MacAfee antivirus.  VB.NetInvolvement in information system development:Flow of information from one end to other end by thecombination of hardware, software’s and people. As the case of their involvement in information systemdevelopment they see their need and develop differentsystems, for example now their customers are going toincrease they are moving toward the development of CRM and
  16. 16. to save the time they are thinking to develop ERP andprocurement systems.If we compare it Mobilink its involvement in development ofinformation systems are very low than Mobilink.They must develop a system that links them to theirfranchisers because they only provide them simple login tofranchiser on internet.They must develop their procurement system to save time andcost and also develop marketing system for best marketingstrategies.If we see in market there are now many players that cankick out it from market on the bases of technology and goodservices so they must put their effort on development ofCRM which is basic strategy or tool to satisfy thecustomers.Information System FrameworkInformation system frame work contain the combination ofthe software and the hardware which are as followsHardware infrastructure of Paktel:Paktel is using different types of software and hardwarethat are essential part to develop and run any informationsystem.
  17. 17. Some hardware’s are as under,  Intel base as server for windows  Acquire UNIX server for Linux operating system but still is not in use.  Solaris server.  HP for Client and monitor of Philips and Samsung  Sun for LinuxSoftware infrastructure of Paktel:Some software’s are as under.  Oracle server engine for database.  Oracle developer.  Windows XP professional.  Windows 2000 for server.  Windows 2000 professional for clients.  Office XP  Acrobat reader.  MacAfee antivirus.  VB.NetInformation system componentsPeople:They are facilitating to people with the help of website to provide best communication quality to its customersand they are also providing the facility of on line billingsystem through which a customer could easily activate itsaccount without going any where with the help of creditcard.End users: They are providing a best facility to theircustomers by providing them the GSM Sims.
  18. 18. Specialist: They have full IT department for thedevelopment of their softwares and also to solve anyproblem in their software including development of ERP.Hardware resources: Their hardware resources include  Intel base as server for windows  Acquire UNIX server for Linux operating system but still is not in use.  Solaris server.  HP for Client and monitor of Philips and Samsung  Sun for LinuxSoftware resources: Their software resources includes  Oracle server engine for database.  Oracle developer.  Windows XP professional.  Windows 2000 for server.  Windows 2000 professional for clients.  Office XP  Acrobat reader.  MacAfee antivirus.  VB.NetData resources:To manage the data effectively they have the data basemanagement system. They have full record in this databasesystem and whenever any one whether customer or any managerneeds any information he concerned with this data basemanagement system and with in no time he gets the data.Networking:For the communication purposes the networks which they areusing are the LAN, WAN and the topology which they areusing is the star.Also they are using the
  19. 19.  Internet  Intranet  ExtranetInternet:Internet facility is availing by the customers in the shapeof their website and also providing the facility of freemessages through their website to their customers.Recommendations:They should provide the following facilities to theircustomers as the mobilink is providing through internet  Online billing facility  Customer to customer mobile selling facility  Online banking facilityIntranet:  By management  By employeesBy management:Information about any decision that has been taken by topmanagement it flows through intranet to all their officesby using e-mail. The excess of this e-mail could be accessby the employees of the organization. The employees areallotted username and password through which they couldaccess the intranet of the Paktel.By employees:Employees can excess over their related information abouttheir jobs profile from any where of the world by using theunique password which are given to them by the organization.Extranet:
  20. 20.  For Suppliers  For Other stakeholdersSuppliersFor the linkage between suppliers and the company they areusing extranet. With the help of extranet all the processesof purchases and other transaction are done through thissystem and now no need to go and wait for the deliverysimply with in no time could easily interact with thesuppliers.Other stakeholdersAlso for the linkage with their customers and otherstakeholders such as competitors and shareholders they areusing the extranet. Organization is providing informationto its shareholders step by step and with the help ofextranets now shareholders could see the information easily.Strategic information system with their value chainThey are doing as such basic activities that add value toits products and services as follows  Products  ServicesProductsThe product of Paktel is sim and to add value in theirproduct they are using following techniques  CAD  CAMServices:To provide excellent services to their customers to addvalue in their business they are using different logistics
  21. 21.  Inbound logistics  Outbound logistics  Just In Time(JIT)RecommendationsThey should use following techniques to add value in theirbusiness and to provide on time best services to theircustomers are as follows  Computer aided engineering  On line market place for a firm `s suppliers  Just In Time warehousing system to support in bound logisticsDatabase management featuresFor the purpose of managing their data base and foreffective decision making they are using  User database  Billing system databaseTotal size of database in paktel is about 500 Giga Bytesthat can retrieve 10000 records per second.The entire data base centrally located at the head officeof Paktel in Islamabad and all the other main officeslocated at Karachi and Lahore can access the entire database from head office by using Data Base Management System(DBMS).This data base is using by the following departments  Purchase department
  22. 22.  Marketing department  Human resource departmentAdvantages of DBMSThe main purpose to manage data base system is to avoid thesecurity risk and the only related departments can easilyaccess from the data base .Tools  Oracle self developer used for user data base  VB.Net used for system linkage to databaseTelecommunication Network Model:The telecommunications network - the largest and most complex technical systemthat makes up a substantial part of a countrys infrastructure and is vital role in anytelecommunication service provider company’s network.Every company provides relevant telecommunication services, based on thetelecommunication network.We will describe the telecommunication network model of Paktel and othercompetitive companies in the following five heads.1- Terminals:With the help of Nodes and Links that has been created for connectivity betweennetwork and terminals.
  23. 23. In this network information travel from one node to other, that supported bydifferent links including optical fiber methods.2- Telecommunication Processors:By telecommunications we mean here all processes that render it possible totransfer, • voice, • data and • video with the help of some form of electromagnetic system, including optical transfer methods. A special technique called packet switching has been developed to expand the degree of utilization in data networks when traffic sources ( computers) are only sending satellite information. Each data traffic packet has an address that controls the switching process in the exchanges. (Nodes) Asynchronous Transfer Mode (ATM) technique is used for packet switching. To create link and integration between network, Paktel is currently using the switches of Chinese telecom. Co. ZTE. Those are outsourced. 3- Telecommunication Channels:
  24. 24. For the purpose to interconnect the other components of telecommunication network, Paktel is using following channels, that are. • Microwave • Satellite • Fiber OpticsThose help to create interconnectivity in efficient manners between othercomponents of network.
  25. 25. Data WarehouseThey are manually using the relevant data from data warehouse.The manually process run through generating RFI (Requestfor information) from related person to IT department thenthe information provided to the relevant person by ITdepartment.Recommendation:In Mobilink the access to the data ware house is directlyaccess by any person through password. Every person in theorganization have the computer through which he can accessto the data warehouse.
  26. 26. DSS (Decision Support System Of Paktel)Decision Support system of Paktel helps the managers totake decisions and also it is helpful to see the financialposition of the Paktel.Paktel is using SUN FINANCIAL in the finance department totake effective and efficient decision related to finance.In this SUN FINANCIAL they generate the reports of thefinance and then through intranet they send the reports tothe top management to take necessary decisions.EIS (Executive Information System) After receiving the reports generated by the differentdepartments they make decisions and then send the decisionto the relevant departments.Cross functional system: • Suppliers In Paktel the cross functional system is based on the steps. The first step is request generated from the company, secondly Approval is made on the request and the third step that they calls to vender and ask them to submit their quotations on the given date by the Paktel and then after receiving the quotations the last step is Purchase department of Paktel makes decision on the favorable quotations deposited by the vendors.
  27. 27. • Tools They are using ML580 Information system to integrate with their suppliers. It is a server based information system. • Software They are using oracle 11i software to support their information system in sharing the information with their suppliers. • How venders receive the information and request of quotations: The vendors receive the information and request of the quotation by the organization through mails. • CRM (Customer Relationship Management) Paktel do not contain CRM in their operations but they are using alternatives such as they are using customer care system and also they have billing system for the facilities of their customers. In the billing system they have very interesting thing which differs them from other services like Ufone and Mobilink like if some one calls to the Paktel user the long time he will call the more money will be included in the account of the customer.Auto responders as CRM:Paktel is not currently using CRM technique to connect withcustomers and solve their problems they are using autoresponders in their call center that are located at • Karachi • Lahore
  28. 28. Tools:They are using ZR chi as a tool in the auto responders theyare also providing customer facility of sms services through • • (for only digital)What is CRM and what are its benefits are as follow, beforeadopting Paktel must think about following measuresCustomer Relationship Management - CRMThe generally accepted purpose of Customer RelationshipManagement (CRM) is to enable organizations to better serveits customers through the introduction of reliableprocesses and procedures for interacting with thosecustomers.In todays competitive business environment, a successfulCRM strategy cannot be implemented by only installing andintegrating a software package designed to support CRMprocesses. A holistic approach to CRM is vital for aneffective and efficient CRM policy. This approach includestraining of employees, a modification of business processesbased on customers needs and an adoption of relevant IT-systems (including soft- and maybe hardware) and/or usageof IT-Services that enable the organization or company tofollow its CRM strategy. CRM-Services can even redundantizethe acquisition of additional hardware or CRM software-licences.
  29. 29. Major areas of CRM focus on service automated processes,personal information gathering and processing, and self-service. It attempts to integrate and automate the variouscustomer serving processes within a company.There are three parts of application architecture of CRM:• operational - automation to the basic business processes (marketing, sales, service)• analytical - support to analyse customer behaviour, implements business intelligence alike technology• Cooperational - ensures the contact with customers (phone, email, fax, web...)Improving customer relationshipsCRMs are also claimed to be able to improve customerrelationships . Proponents say this can be done by: • CRM technology can track customer interests, needs, and buying habits as they progress through their life cycles, and tailor the marketing effort accordingly. This way customers get exactly what they want as they change. • The technology can track customer product use as the product progresses through its life cycle, and tailor the service strategy accordingly. This way customers get what they need as the product ages.
  30. 30. Technical functionalityA CRM solution is characterised by the followingfunctionality: • scalability - the ability to be used on a large scale, and to be reliably expanded to what ever scale is necessary. • multiple communication channels - the ability to interface with users via many different devices (phone, WAP, internet, etc) • workflow - the ability to automatically route work through the system to different people based on a set of rules. • database - the centralised storage (in a data warehouse) of all information relevant to customer interaction • customer privacy considerations, e.g. data encryption and the destruction of records to ensure that they are not stolen or abusedSetting up a framework for CRM • When you start setting up your CRM segment for your business you first want to see what profile aspects you feel are relevant to your business. Which information will provide you the keys to serve your customers in the best way possible? You
  31. 31. can look to your financial history for this information what would you have liked to know about your customers in the past? What would have been the effects? And what information is not useful? Being able to eliminate unwanted information is a big aspect in implementing your CRM systemsOne idea is to keep in mind of who you are thinking of, youwant to be more extensive on your information because theseare the high-margin customers. While you still want to keepyou ?low-margin? customers in mind you may not want to beso extensive in your relationships with them.RecommendationsThey should use Inventory Control system in CRM.and itshould be self designed.Features of Inventory Control System: • Efix and CRM both are combine • CRM based on Digital CertificateWhy the competitor of Paktel is using CRM: • Because if anyone account is block or anyone wants to change the dial number then Mobilink can do this with the help of this system. • If anyone forgets his password or anyone’s sim blocked due to any reason this software helps their customer to break the password.
  32. 32. • Internally they are using Epoint.Modules of CRM: • They have three modules of Oracle Fix • They have the module of Procurement. Note: A module which they are using is internally purpose not as a whole.ERP (Enterprise Resource Planning)Still the ERP in Mobilink is not completed yet and they aredoing some modification. And they have outsourced fromOratech.Currently they are using three modules of ERP which are : • HRMIS ( Human Resource Management Information System) • Finance • Procurement E-services ( web services provided to the customers by the organization) Open the site of Paktel and then see what services they are using.
  33. 33. Paktel Experts System: The calls centers of Paktel are used as an expert system. The feature of this system is that automatically answer the questions of the end users (customers). They have 2 call centers located in Karachi and Lahore. In Karachi center they have 100 agents that are fully train that they can satisfy every kind of customer, same as Lahore they have 50 agent on their centre. They are using ZRG application for the auto respondent through call centers. This application is also used for connectivity with Islamabad.Recommendations: • Efix to franchise • Ivs servers for automatically call route through servers. • Online banking which Mobilink is about to start.
  34. 34. Human Resource Information System: HRSystem: They are using in human resource department the system in which there contains the information about the employees like when they come in the company, when they are about to take training and when they will get retirement and which type of benefits the employees are getting and about the blood groups of each employee and extra salary benefits in future. • Softwares using in HRIS The softwares which they are using are oracle.Recommendations: • Tools: Oracle built in module Oracle live server 8i Oracle fix
  35. 35. OLAP (Online analytical Processing)
  36. 36. Re-engineer and Re-designingRe-designing • They are using Customer care system currently and now they are going to switch over to CRM. • Before they were using the connections which installed in the mobile sets and the customers were feeling very difficulty as they can change the sets once in which the connection was installed and now they switched over to GSM as it was required by the customers of Paktel. • They changed their softwares from old to new.Recommendations:AMS onlineMobilink are changing their fix to efix.They are upgrading their CATS which are in process.They are using Dos-Modes for their softwaresMobilink is going to increase the frequency so Paktelshould also increase the frequency so that customers ofPaktel can easily and with a quality communication talk toeach other any where in Pakistan at least.The tool which mobilink is using to increase the frequencyis customizeRe-engineering: They are now going to adapt ERP for their activities.
  37. 37. BPO (Business Process Outsourcing)What is business process outsourceGlobalization has not only broken the traditional businessboundaries across countries but also opened vast marketsfor companies. Enterprises are now looking to focus on acore set of competencies that have the greatest positiveimpact on their business models and are seeking new ways tostreamline processes, realize further cost reductions anddecrease time to market. One of the main outcomes of thesetrends has been the rise of business process outsourcingamong leading companies to achieve significant growth andbottom line benefits. Business Process Outsourcing (BPO) isthe delegation of one or more business processes to anexternal entity that in turn owns, administers and managesthe outsourced process based on defined and measurableperformance criteria. Such back end functions may includeanything that can be moved over the bandwidth and includeServices such as customer support through call centers,accounting, order processing, insurance claim processing,procurement orOther logistic functions. On the other hand, offshore IToutsourcing is the relocation of activities, tasks andprocesses to entities in countries with lower overalloperational cost in order to reduce the total cost ofdeveloping and maintaining IT software, systems andinfrastructure.One of the leading firms conducting research in the fieldof IT, Forrester Research, has referred to globaloutsourcing as the “trend of the decade” while GartnerGroup refers to it as a “mega-trend”.
  38. 38. Outsourcing has demonstrable, quantifiable benefits. Itgives companies access to state of- the-art technologywithout the overheads and risks associated with developingin-house solutions. “Companies can save as much as 41% inhidden costs by outsourcing” - U.S. Chamber of Commerce.According to Michael Dennis (Vice President, Services,Avaya Group)“Outsourcing allows us to put company energy intoactivities which generate higher value for our customers.”BPO is gaining ground because of thefollowing main factors: • Factor Cost Advantage • Superior Competency • Utilization Improvement • Economy of Scale • Business Risk MitigationAvailability of highly qualified skill pool and fasteradoption of well-defined business processes leads to higherproductivity gains without compromising on quality.Customers across verticals like Insurance, Banking, Pharmaceuticals, Telecom, Automotive andAirlines seem to be the early adopters of Business ProcessOutsourcing. Insurance and banking industries are majorbeneficiaries of the outsourcing trend as they can achievesignificant savings by virtue of the large proportion ofprocesses that can be outsourced. These include claimsprocessing, loans processing and client servicing throughcall centers. Improvements in cost, quality andproductivity have encouraged customers to rapidly scale uptheir offshore operations. It is no longer seen as a one-
  39. 39. time cost reduction or process improvement but customersare demanding year-on-year improvements in process metrics.In Paktel they are out sourcing • They are using switches in their networking and these switches are outsourced from ZRG. And the softwares which they are using in these switches are also outsourced by ZRG. • The data warehouse of the Paktel in which all the record and data of the Paktel is laying is also outsourced. • The towers which are used for the communication purpose among the customers are also outsourced. • Cables with in the organization and also which is used externally are also outsourced by the Paktel.
  40. 40. Business to Business:Defining B2B Commerce  Before Internet, B2B transactions called just trade or procurement process  Total inter-firm trade: Total flow of value among firms  B2B commerce: All types of computer-enabled inter-firm trade  B2B e-commerce (Internet-based B2B commerce): That portion of B2B commerce that is enabled by the InternetThe Evolution of B2B Commerce  B2B commerce has evolved over a 35-year period  1970s: Automated order entry systems used telephone modems to send digital orders (e.g., Baxter Healthcare)  Seller-side solution (owned by suppliers, seller- biased, show goods only from single seller)  Late 1970s: Electronic data interchange (EDI) -- communications standard for sharing business documents and settlement information among a small number of firms o Buyer-side solution (owned by buyers, buyer- biased, aim to reduce procurement costs for buyer) o Often referred to as hub-and-spoke system o Generally serves a vertical market
  41. 41.  1990s: B2B electronic storefronts -- online catalogs of products made available to the public marketplace by a single supplier  Late 1990s: Net marketplaces – bring hundreds to thousands of suppliers and purchasers into a single Internet-based environment to conduct trade  Late 1990s: Private industrial networks – Internet- based communication environments that extend beyond procurement to encompass collaborative commerceThe Growth of B2B E-commerce 2001-2006  B2B e-commerce o 2001: $466 billion o 2005: estimated $4.11 trillion  Net marketplaces growing at faster rate than private industrial networks, but even so, in 2006 private industrial networks still expected to be twice the size of Net marketplaces  Not all industries will be similarly affected by B2B e-commerce o Computer, automotive, aerospace and defense, and industrial equipment industries likely to move first and fastest to B2B utilization
  42. 42. Industry Forecasts for Internet-Based B2B Commerce 2001-2006
  43. 43. In B To B paktel are doing two types of dealings such asThey are dealing with the banks to provide online billingservices to their customer.For this purpose they have provided to banks an interfacewhich is base on oracle.The banks are as follow Muslim commercial bank ABN Amro bank Allied bankAnd they also have provide to courier service that is TCS express center.Secondly they are selling the Sims with the help offranchisee and the franchisee is selling the Sims to thecustomers.To connect with franchisee they have provided them a loginthat a franchisee can access through internet by usingmodem, is protected through firewall.Business to customers:
  44. 44. This focus on to attract customers by attractive prices,transact goods and services build customer loyalty. This isbased on realistic profitability.Business t o customer is as followB2C Business Models  Portal o Offers powerful search tools plus an integrated package of content and services o Typically combines subscription/advertising/referral/transaction fee revenue model o May be general  Ex: AOL, MSN, Yahoo o or specialized (vortal)  Ex: Sailnet
  45. 45. A Portal Example  Google o Founded in 1998 by 2 Stanford grad students o Focused solely on search engine business in contrast to Yahoo, MSN, AOL o Almost missed major market shift in way companies advertise on Web – paid search listings, pioneered by (now in 1999 o 2000, introduced tiny paid advertising boxes on the right of Search Results page; Feb 2002, began to allow firms to bid for placement and added sponsored links at top of Search Results page o 2003, Yahoo buys Inktomi and Overture (which owns AltaVista) – new questions as to whether Google will remain the leading search engineB2C Business Models  E-Tailer o Online version of traditional retailer o Sales revenue model o Types include:  Virtual merchants: online retail store only o Ex:,  Clicks and bricks: online distribution channel for a company that also has physical stores; o Ex: Barnes&Noble, WalMart, Staples  Catalog merchants: online version of direct mail catalog
  46. 46. o Ex: LLBeane  Manufacturer-direct: manufacturer selling directly over the Web o Ex: Columbia.comB2C Business Models  Content Provider o Information and entertainment companies that provide digital content over the Web o Ex:,, o Second largest source of B2C e-commerce revenue in 2002  15% of online sales  More Internet users go to on the Web to retrieve information than to purchase goods (80% vs 53%)  Typically utilizes an subscription, pay for download, or advertising revenue modelB2C Business Models  Transaction Broker o Processes online transactions for consumers o Primary value proposition – saving of time and money o Typical revenue model – transaction fee o Industries using this model:  Financial services (E-Trade)  Travel services  Job placement services ( Business Model  Service Provider
  47. 47. o Offers services online  Ex: FreshDirect, o Value proposition – valuable, convenient, time- saving, low-cost alternatives to traditional service providers o Revenue models – subscription fees or one-time paymentB2C Business Models  Community Provider o Sites that create a digital online environment where people with similar interests can transact, communicate, and receive interest-related information. o Typically rely on a hybrid revenue model o Examples:    About.comFor this purpose paktel is providing facility to itscustomer to purchase hand set of • Samsung • Motorola • Nokia • Panasonic • LG • Siemens • Sony EricssonThey provide to their customer facility to brows from anycity of Pakistan the interface as follow
  48. 48. Handset: Price Range: City:They are also providing facility to purchase a equipmentfor this purpose they are also providing same interface toits customers that is as follow Select a CityProcurement System:Paktel do not have any Procurement department but they havealternative of this department which is purchase department.The activity which is performing in this department istotally manually.The first step is request generated from the company,secondly Approval is made on the request and the third stepthat they calls to vender and ask them to submit theirquotations on the given date by the Paktel and then afterreceiving the quotations the last step is Purchase
  49. 49. department of Paktel makes decision on the favorablequotations deposited by the vendors. At the end Fill theGRN and their GRN is through system. • What GRN system is performing: GRN maintains the files and maintains the record of the routes of suppliers and oracle is used at the back end and sun financial is using in the front office and both systems are customize.Recommendations They should use the Procurement department as mobilinkis using this instead of purchase department. The purchasesof mobilink is totally through system based while in Paktelthere are manually work in purchase department. Wheneverthe employee requirement generates the employee enter thatrequirement in the system and it automatically reaches inthe procurement department and after analyzing therequirement they ask for the process of the purchasingwhich is mentioned above.Software’sThere are two software’s using in the procurementdepartment of Mobilink • Oracle financial • Oracle e-business Hardware’s Mobilink is using • Hp system • Oracle Financial servers • ML3810 • ML5810 • Rx 2 server in future
  50. 50. Paktel also should use this system as it is new technological systems.Recommendation for E- procurement system:More comprehensive procurement system is as follow that wecan purpose to paktel to adopt this system because it hasmore feathers and reliable than Mobilink, it can also besaid E-procurement system.Purchase Order Software ModuleRun the purchase order software module as a stand-aloneunit or use it with PMXs other modules as part of a fullyintegrated system. Complete vendor and material filemanagement capabilities are built into the purchasingmodule.Stay in control of what you buy and from whom you buy itwith PMXse-procurement and purchase order software. PMXspurchasing module( e-procurement ) was designed to work the way purchasingprofessionals think and can have you up and running indays.Creating A Purchase OrderYou can quickly create purchase orders from requisitions,requests for quotations and previous purchase orders. Whennone of these sources is available, you create a purchaseorder by specifying the vendor you want to buy from andthe materials or services you want to purchase. This isdone on two screens--the Purchase Order Header screen and
  51. 51. the Purchase Order Line Items screen (Both screens areshown below.).On the Purchase Order Header screen, you specify thedesired vendor by entering the vendor number. PMX draws thestandard default information from the Vendor File andenters it for you. PMX also enters for you: • Tax percent • Ship-to Address • Bill-to Address • Primary Buyer name • Payment Terms and
  52. 52. • Prepaid Freight OptionYou may override any default information with your owndata. You may also include: • Delivery date • Job number • Project number and • G/L account codesIn the P.O. header to apply to the order as a whole, orenter this data individually for each P.O. Line ItemSpecial FeaturesAssign P.O. Numbers
  53. 53. Assign your own P.O. numbers or select a Control Fileoperating rule that instructs PMX to automatically assignP.O. numbers for you.On-line Search FacilityUse the button next to Vendor Number field on the PurchaseOrder Header screen to search through the Vendor File andselect the desired vendor. Search for vendors by enteringthe first few characters of the vendors name, or searchfor all authorized vendors for a specific commodity groupor material item. Once you select the vendor, PMXautomatically returns you to the P.O. screen and enters theappropriate vendor data for youFree-form P.O. Instructions & Standard Text ParagraphsEnter up to 30,000 characters of free-form Purchase Orderinstructions on each purchase order. Also, select up tofive pre-stored standard text paragraphs for insertion oneach order. Both the Purchase Order instructions and pre-sorted standard paragraphs are printed on your purchaseorder as instructions relating to the order as a whole.Item SearchUse the button next to the Item Number field on thePurchase Order Line Items screen to search through theMaterial File and select the items you want to purchase.You can search for items by entering the first fewcharacters of the material description, or you can searchfor all items in a specific commodity group or catalog.Look over the list of items, select the items you want to
  54. 54. purchase and PMX routes you back to the Purchase Order LineItems screen.Print, Fax & E-mailAfter creating a Purchase Order, you can immediately print,fax or e-mail it directly to your vendor. In the event aPurchase Order is lost or destroyed, new copies can easilybe reprinted or retransmittedAdaptable to Your P.O. FormPrint purchase orders on our standard form or have uscustomize the print format to suit your needs.Customization includes aligning the purchase order data tofit your current (or planned) P.O. form.Repeat PurchasesAfter purchasing an item for the first time, subsequentbuys become much faster. PMX maintains detailed historicalinformation on all previous orders and gives you a varietyof search options for locating and listing these orders.Simply look over the list of previous purchases and selectthe P.O. you want to duplicate.Blanket Orders & Releases
  55. 55. You can create blanket orders for specific items orgeneral categories (such as office supplies) withoutspecifying quantities, unit prices or delivery dates. Oncethe blanket information is entered, the blanket order canbe printed or faxed directly to your vendor.All delivery activity for blanket orders is controlled byblanket releases. Create the release simply by identifyingthe blanket P.O. number along with the minimum orderinginformation for each blanket line item you are releasing.All the vendor information is already in the system and isautomatically applied to the release. After entering therelease information, print or fax the release orderdirectly to the vendor.Change OrdersTo change any P.O., just display the order on your screenand edit the necessary information. You can also add newitems or delete existing items before printing the changeorder or faxing it directly to your vendor.Management ReportsA complete set of management reports lets you analyze yourtotal purchases by vendor, item, commodity, job, account,project, buyer, etc. -- over any time period.CMM / ISO Certificates Followed by Paktel.
  56. 56. For the purpose to maintain quality standards in theirprocesses and services Paktel is not following CapabilityMaturity Model (CMM).Currently they are using Sox 404 standards to maintaininternational quality standards in their services andprocesses.Recommended the Standards to Follow by Paktel:The Paktel should also be followed the following standardsand levels that are followed by the Mobilink to maintainquality in their standards and to improve the quality ofservices and to match with the international standards tocompete their big giant competitors in telecommunicationsector in this global arena.As such standards are given below.Quality Manual:Scope and Purpose:This manual documents the organization, responsibilitiesand methods employed to implement a quality system coveringthe activities of Mobilink Telecom, Inc. The quality systemaddresses all requirements as defined in ISO-9001:1994.Responsibilities:The VP of Operations is responsible to ensure that aQuality System is in place and implemented. Functionmanagers are responsible to ensure the correct processesare in place and implemented in their respective areas.
  57. 57. Management Responsibility:Quality PolicyMobilink Telecom, Inc, is committed to exceeding theexpectations of its most demanding customers for quality,reliability and functionality through innovation andrigorous productization. All employees are empowered totake whatever action they deem necessary to achieve thisgoal.Management Representative:
  58. 58. The Vice President of Operations is the ManagementRepresentative has authority andresponsibility to ensure the Mobilink Quality System’srequirements are established, effectively implemented, andmaintained in accordance with the Quality Policy and allISO 9001 criteria.Management Review:The quality system is reviewed, at a minimum of twice peryear, by executive staff. Topics considered during thereview (below) may be included in whole or in segments;however, all aspects of the quality system are alwaysaddressed within each twelve-month period.aCustomer IssuesaQuality and Reliability performanceaManufacturing (subcontract) performance (Yields, andother significant trends)oInternal Audit resultsoCorrective and Preventive actions.Management reviews are chaired by the ManagementRepresentative, and attended by Executive staff members (ordesignees). Quality System:The Mobilink Quality System meets all requirements of ISO9001 and is approved by all affected organizations.Mobilink maintains appropriate documented procedures foreach element and the Mobilink Quality Manual provides
  59. 59. reference to these documents. Continued compliance isassessed through internal audits.Quality Planning and Quality Plans:Quality planning is completed for all shipping productsthrough the Manufacturing Review process, which establishesquality objectives and ensures all intermediate goals andplans are in place to achieve the goals.pIdentification of controls, processes, equipment,resources and skills requiredrAssessment of design, production process, and inspection/test procedure compatibility,identification of suitable verification methods at allappropriate stages, clarification ofstandards of acceptabilitysThe plans generated as a result of Manufacturing Revieware contained within the individual ManufacturingSpecifications.SThe Manufacturing Specification also forms the basis forengineering change review and planning. Contract Review:Sales and Marketing are responsible to ensure an effectiveprocess to review customer contracts, ensure scope andrequirements are documented and understood, that thecapability for fulfillment exist and that differences areidentified and resolved. Records are maintained for review,contract amendment, and record keeping. Design Control:
  60. 60. Three detailed procedures control Mobilink design, ASICdesign, Software design and Handset design. They assurethat all key design elements including design anddevelopment planning, organization and technicalinterfaces, design input and output, design review, designverification and design validation are met. In addition,the documentation provides a method to address designchanges and specifies all necessary records and theircontrols.“ASIC” Design Flow – covers the following:–Design input and planning–ASIC design–ASIC Verification–Library verification–Tape out process–First Silicon validation – From Design InputSoftware Design Flow – covers the following.–Design input and planning - Requirements Traceability–Coding standards–Verification – peer reviews, walkthroughs–Configuration management – version control, problemreport and tracking.rSoftware Change Control BoardrTesting - Unit Test, Integration Test, Functional Test,Performance Test, Field TestPExternal Distribution
  61. 61. Does not currently implement ISO9000-3 standard. Document and Data Control:Document Control, under direction of Reliability andQuality Assurance, is responsible for maintaining controlall documents, including documents and data of externalorigin.To Maintain Quality Standards for Document Structure:Paktel should follow the different levels to maintainquality standards for document structure of differentprocesses as followed by mobilink.Levels of Documentation of Processes:The overall hierarchical structure of Mobilinkdocumentation supporting the quality system is representedas follows:Level 1Quality ManualLevel 2Process ProceduresLevel 3Product SpecificsLevel 4Other documentation/Records/ Instructions and trainingmaterialsHandset Design Flow – covers the following:
  62. 62. Design input and planning Reference phone design, Handset design, PC Card design orany related system design.aDesign controlaComponent selection and verificationaExternal Certifications – Type approvalsDocument and data approval and issue:The review and approval of documents is specified atMobilink, and a master list is maintained indicatingcurrent revisions. The system provides ready access fornecessary documents at all required locations and assuresinvalid or obsolete documents (other than for legal and/orknowledge-preservation purposes) are never used.All changes are reviewed and approved by designatedpersonnel; a change history is maintained.Purchasing:Purchasing has responsibility to assure all purchasedmaterial and services meet Mobilinkrequirements.The Purchasing Process provides procedures for thefollowing;Evaluation of subcontractors and suppliers:
  63. 63. Suppliers and subcontractors are selected on a basis oftheir ability to deliver products and/or services inaccordance with Mobilink Quality System requirements.aPurchasing Data:Purchasing procedures clearly describe the product orservice ordered as well as the process for requisition andtracking.tVerification of purchased product:The Mobilink purchase order terms and conditions definesits ability and the customers right to verify purchasedproduct/services at suppliers/subcontractors premises.pSupplier Verification at subcontractor’s premises.Mobilink may elect to verify purchased product at oursupplier’s/subcontractor’s facilities.Such acceptance is not used as evidence of acceptablesupplier/subcontractor’s control.Customer verification of subcontracted product.When contractually specified, the customer is afforded theright to verify product at oursuppliers/subcontractors premises. Verification by ourcustomer does not provide Mobilink evidence of effectivesupplier control. It also does not absolve Mobilink ofresponsibility for providing acceptable product tocustomers nor does it preclude subsequent rejection bycustomers.
  64. 64. Control of Customer Supplied Product:“Control of Customer Supplied Material defines proceduresto ensure the following:tItems are received intacttItems are stored correctlytIssues are recorded and reported.tOwnership and responsibility is clearly defined andunderstood. Product Identification and Traceability:Mobilink maintains a system to provide identification andtraceability of materials at all appropriate stages ofmanufacturing. Process Control:All manufacturing processes occur at designated subcontractfacilities. Mobilink assures that all such processesincluding: wafer fabrication, die assembly and test,handset assembly and test, storage/warehousing andshipping, are suitably controlled to assure maintenance ofquality standards.All key process equipment must be adequately controlled bya system that at a minimum includes planned P/M activitiesand Scheduled maintenance.Process Capability data from subcontract manufacturingfacilities are requested reviewed and evaluated.
  65. 65. Corrective and Preventive Action SystemMobilink assures corrective and preventive actions areassigned to affect root cause solutions and prevent problemrecurrence. The system addresses both actual and potentialproblems that can affect Quality. Control of Quality Records:Quality Records demonstrate conformance to specifiedrequirements and effective operation of the Quality System.Document Control provides a list of those Quality Recordsunder its control; all other records are maintained byindividual responsible departments.Internal Quality Audits:The Quality function is responsible for establishing andmaintaining an internal audit procedure to verify qualityactivities comply with planned arrangements and to assessQuality System effectiveness.Training:Each supervisor has responsibility for identifying thequality-related responsibilities of each employee andsupports their training needs. Each department maintainstraining records.Personnel performing specific tasks may be qualified on thebasis of experience and/or education.Employee training requirements are referenced and definedwithin, “Employee Training and Documentation.”
  66. 66. Servicing:Currently Mobilink does not engage in servicing. In theevent that such activities are established, an appropriatesystem of control will be documented and maintained. Statistical Techniques:Appropriate statistical techniques for controllingprocesses, sampling, and determining capabilities.Procedures apply to subcontract manufacturing and test aswell as other areas, when designated. Statistical resultsare reviewed and appropriate actions taken.RECOMMENDATIONS: • They need professional from recipients to manager. • They should provide proper working environment. • They should also adopt a customize software in the place f ERP because their setup is not very big. • They should also adopt CRM to attract, retain the customers. • They should also expand their network coverage as soon as possible./ • They should also work on to provide Web sms service on GSM network.
  67. 67. • They should also improve business to business network and also expand it, and also improve their Business to customer commerce.• They should also adopt procurement system and need of supply chain.