A

PROJECT REPORT ON
HANDHELD ELECTRONICS DEVICE SOFTWARE
PRODUCT MANAGEMENT.- Cell Phones
UNDERTAKEN AT
SAMSUNG ENGINEETING LAB INDIA

Submitted By:
NARENDAR CHOUDHARY
(1121200044)
Guided by:
MR. DEV KARAN NEHRA
(Manager)
MBA PROGRAMME
(Year 2011-2013)

DECLARATION
I Narendar Choudhary here by affirm that the Project Report entitled
Handheld electronic device software - Product Management.
prepared by me during the year 2013 in partial fulfillment of the
requirements of Master of Business Administration degree, is my original
work and have never been submitted elsewhere.

PLACE: NOIDA
DATE:

SIGNATURE
NARENDAR CHOUDHARY

ACKNOWLEDGEMENT
A MBA project is golden opportunities for learning and self development .I
consider myself very lucky and honored to have so many wonderful people lead
me through in completion of this project.
First of all I would like to thank Mr. Manish Hira (Group Leader, Project Mgt.
Team) and Mr Mohan Babu (Manager Project Mgt. Team) for allowing me to take
up my project at this place
My special thanks to Mr. Pradipta Pradhan (Deputy Manager) who in spite of
being extraordinarily busy with their duties, took time out to hear, guide and
keep me on the correct path.

My special thanks to Mr. DS Kim (Director PM Team) and every staff member of
SEL India for their guidance at every stage of the project that enabled me to
successfully complete this project which otherwise would not have been
possible for me to complete the report with fullest Endeavour.
Mr. Atanu Bera (Manager) whose patience I have probably tested to that limit.
He was always so involved in the entire process, shared his knowledge and
encouraged me to think.
I am sincerely thankful to all the faculty member of MBA department of SEL
India for their kind support. Last but not the least there were so many who
shared valuable information that helped in the successful completion of this
project.

Narendar Choudhary
MBA 4th SEM

EXECUTIVE SUMMARY
A study is based on Cell Phone product and cell phone manufacture Samsung.
NTPC is emerging as a diversified power major with presence in the entire value
chain of the power generation business. The company is committed to using
innovative advance & technology of producing power.

The title of the project is A study of business process improvement after

implementation of SAP ERP in NTPC. The objective of the study is to check the
validity of the current business process in NTPC and to measure the
effectiveness of services through SAP ERP that is offered by NTPC in different
departments.
The Project focuses on aligning Employees, Strategies and Processes for
Business Success. In the first part of the study, the overall power related
activities that have been undertaken by NTPC over the past years have been
discussed to give a basic understanding of the work that is performed by the
company. In the second part, the need of SAP ERP in different areas of NTPC to
effectively deal with business challenges has been discussed. In this project
work, the basic aim is to establish a report which can state the importance of
SAP ERP in todays business development.
In this Project, Descriptive research design has been used. Research is base on
the survey, case study and secondary data .Sampling design is convenience
sampling because of time and money constraints. The sample size is 30
respondents. Personal face to face interviews was conducted to collect the
primary data. Have used tables, charts, cross tabulation and Chi-square test
for interpretation of the survey.
By applying different statistical tools I have found some useful information that
Employees do not adapt quickly to the changing business environment of SAP
ERP.

It

takes

some

time

to

adjust

to new

environment.

After

the

implementation of SAP ERP process in NTPC, the old employees who had taken
training courses they were retired or have left the organization and the new

employees have not taken any training courses. It has also reduced workload
of employees.
From the study some of the recommendations are identified which will
definitely help the company to improve their service effectiveness through SAP
ERP process. More training sessions should be given to employees regarding
SAP ERP process as it has very vast applications. Everyone must become
familiar with new roles, revised processes, and new control mechanisms.
Process owners should be made aware of the new updates in SAP ERP process
at regular basis either through mails or workshops, whichever is required. Top
management should formulate some guidelines on how to reduce the paperwork.

TABLE OF CONTENT
CHAPTER TOPIC

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CELL PHONE INDUSTRY ANALYSIS

by
Joshua Chan
Zhisui Chen
Irene Cormane
Nou Her
Renie Thomas

MGMT 182

May 12, 2006

Table of Contents

Table of Contents

Handheld electronic device software - Product Management.

Introduction
The following report details cell phone industry analysis, which deals with cell
phone manufacturers as well as cell phone services. This analysis includes
the dominant economic characteristics, Six Forces of Competition (Porters
Five Forces of Competition), driving forces of the cell phone industry, strategic
mapping of company strengths, the ease entry and exit into the cell phone
industry, and the overall industry outlook.

Dominant Economic Indicators

1. Market Size:
The cell phone industry is one of the fastest growths besides the
Internet. Cell phones have gone through a huge change and its market has
expanded globally. Since 1994, the cell phone industry has increased from 24
million to about 182 million in wireless phone and related devices operating in
the United States with some 162-million mobile-phone users in the United
States alone.
The cell phone market is increasing very fast with todays everemerging technology and innovation in improving cell phones. Today, society
is living with advance technology and everyone wants to keep pace with the
new technologies.

Cell phone industry is growing larger because it has

become a necessity.

Parents are getting mobile phones for their teens

because they want to communicate in case of an emergency and the wireless

carriers have made it easy to add users to their existing plans. And carriers
are becoming successful in getting parents to expand their plans to include
their teens. This increases buyers and increases market size worldwide.
2. Scope of Competitive Rivalry:
The cell phone industry has become increasingly larger within the last
three years as a result of more affordable cellular phones as well as lower
service costs.

Companies are competing in an advance technology and

communication sector in which success attracts customers to buy their

products and services. The market is very competitive because they offer the
same products and services, but has different physical attributes to the
phones and different costs, which buyers have choices to choose from.
Companies want to provide the best products and services to attract buyers

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by lowering cost and improving products, which makes the cell phone
industry very competitive.
Here are the main factors of competitive rivalry:

Cell phone cost: Customers wants better services and products at a

lower cost.

Bundle functions into just one cell phone: For example E-mail, text
messaging, internet

New technology improvement: For example camera phones

Better landline services

3. Stage in Life Cycle:

The cell phone industry is in the Mature Life Cycle Stage, where nearly allpotential customers are already users of the industrys product.

The cell

phone industrys growth and profitability depends entirely on its ability to

attract new customers.

By increasing and improving the cell phones and

services, it will attract more potential buyers, because technology alone will
not attract buyers, instead companies want value-added services for mobilephone securities.
Cell Phone companies attract buyers in two ways during the Mature Life
Cycle State:

Service: Making cell phone more affordable will attract buyers to buy
more cell phones and increase competition between companies to
lower service fee.

Innovative Phone Style: The new designs and improvement in the

physical appearance of the cell phones, and more add-on features
attracts customers to buy it at a higher rate.

4. Numbers of Companies in the Industry:

There are over 50 companies with only six top companies in the cell phone
industry that controls 80 percent of the market.

Even though there are

emerging new companies into the market, they are relatively small. The six
top companies are rank as follow as the largest to the smallest cell phone
company:
1. Verizon Wireless
2. Cingular Wireless

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3. AT&T Wireless
4. Sprint Wireless
5. Nextel Wireless
6. T-Mobile Wireless
Verizon is the number one largest company having 38.9 million U.S.
customers. Some companies have suffered low profitability for merging with
another company, which resulted in only four of the six companies that
controls 80 percent of the market. The following companies merged resulting
in only four companies; Sprint merged with Nextel, and Cingular bought AT&T.
Below are financial highlights showing how well the four cell phone service
companies that are occupying the market are faring.
Financial Highlights
Revenue (2005)

Sprint
34680.00

Verizon
27662.00

Cingular
19436.00

T-Mobile
9366.00

Revenue Growth (1 yr)

Employees (2005)
Employee growth (1 yr)

M
26.40%
79,900
33.40%

M
23.00%
49,800
13.40%

M
25.50%
70,300
78.40%

M
12.10%
22,616
5.10%

5. Customers:
Cell phones are attractive targets that are small, expensive, and useful.
Today there are approximately 162 million mobile-phone users in United
States alone.

With the list of features and data applications available on

mobile phones, which is continuing to grow and emerge; cell phones are not
only a luxury but also necessity. Cell phone users use cell phones for more
than just talking; the mobile services consumer wireless usage study found
that 56 percent of customers used their cell phones as cameras, clocks,
calendars, music players, and other non-talk functions. Also, most cell phone
owners are between the ages of 18 to 34. However, consumers dependency
on cell phones can pose a threat that force users to be victims of paying too
much for cellular phone services.
There are numerous complaints about low quality service in the industry
due to the competition between companies.

By lowering costs for the

services, the company will lose profits and reduce their shares. Customers
today, typically complain about the high cost for the services of having to
stay on a contract for a long time and paying an early cancellation fee. Also,

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with low service line, customers rather pay higher price for better services
such as receptions.
Cell phone companies know that consumers dislike mobile-phone services.
In fact, mobile phone services were the second lowest-ranked industry.
Mobile companies were also the number two sector in complaints in 2005.
Many companies claim that consumers love their cell phones and that theyre
very happy with the services, which is a half truth.

Consumers complain

frequently about dropped calls, lousy customer service and exorbitant

penalties from exiting a contract.
A new option in cell phone usage has come into being, which lets
subscribers keep their old numbers when switching carriers.

About 47

percent of all cell phone customers would switch or consider switching cell
phone service carriers just to get a lower rate and better service so they do
not have to pay an average fee of $170 to cancel their service contract.
With a poll during 2005, here are some key findings about consumers
response to cell phone services and early termination fees:

The fees for switching to a new cell phone company that provides lower
rates and better services discouraged 36 percent of cell phone
customers from switching.

89 percent agrees that early termination fee is a penalty to discourage

switching cell phone companies.

Cell phone early termination fees costs consumers more than $4.6
billion from 2002 to 2004

47 percent of consumers would consider switching if early termination

fees were eliminated

Here are the primary conclusions regarding cell phones:

Cell phone companies early termination fees creates captive

customers

The fees inhibit competition in the cell phone industry

Customers are well aware of the early termination fees as penalties

rather than rates.

6. Technology/Innovation:

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Technology and innovation are advanced every year making the industry
even more competitive.

Cell phone companies that design and make

evolutionary upgrades are emerging into the market to be more competitive.

Here are some new technology and innovations on cell phones:

Unlicensed Mobile Access (UMA) will help those who have high-speed
Wi-Fi routers overcome poor reception coverage in their houses or
apartments. This is also a way for mobile carriers to expand without
spending a lot of money on new infrastructure. It enables lots of users
who use handsets to wirelessly download content at broadband speeds
while traveling.

Cell phone tour guides: Provides buyers with guides of places they
want to see. For example. Weavers and Stillers voices are used as
narrators in Talking Street that shows a series of cell-phone tours from
Manhattan to the World Trade Center. The technology is meant to be
more vivid and more exciting than books or live tours. Some in the
industry believe that this new technology saves time and money. Also,
not all mobile-phone tour services charge a fee for using the service.

Motorola iTunes phone is basically a hundred-song iPod shuffle built

into it. This is killing the iPod mini because it is a value-added upgrade
in which you get both the cell phone and songs together.

Near Field Communication (NFC) technology lets wireless devices

connect to other devices nearby and transfer data, which ranges from
payment information to digital pictures. Building cell phones with
embedded NFC chips could double when used as debit cards or
electronic IDs. For example, in Japan and Korea, users can charge their
phones with virtual cash; by waving their cell phones near an NFCenabled machine to buy anything from a soda to lunch. This means
NFC devices from different manufacturers must be interoperable and
integrated to work with the credit card infrastructure and also, it
requires working with Visa to encourage support of the new technology.

A new launch for SkypeIn and Skype Voicemail are built by the same
company, which makes the Skype software, and it allows internet users
call one another for free anywhere in the world. With SkypeIn built into
the latest version of software, it allows users to get regular phone
numbers and can receive calls from landline or mobile phones without
having to pay roaming charges. Users can purchase up to three

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numbers in their home country. Skype Voicemail allows users receive
voicemail message for up to ten minutes from any user or traditional
phone. These two technologies enhance the basic free Skype and
gives friends, family, and colleagues not connected to the internet an
inexpensive and convenient way to contact each other in their global
base.

VOIP on mobile phones will help cut cell-phone bills most of all for
international users based on the assumption that if consumers are
already paying for a data plan, will route international calls over their
phones data connection using VOIP and can save considerable money.
Mino Wireless offers VOIP calls at 2.2 cents a minute to 40 countries
and is the first to introduce VOIP on mobile phones in the U.S. market.
It mainly targets travelers, immigrants, and students from overseas.
Using Mino, consumers should have services from Cingular, Nextel or TMobile, a data plan, and an up-to-date phone that can run Java. The
company claims to have 20,000 users since they are launching their
service in January. There is a lot of competition in VOIP as well because
cell phones carriers are interested in VOIP. VOIP can be implemented
but the common concern about implementing VOIP is voice quality and
the ability to provide value-added services such as voice mail.

7. Product Characteristics:
In the cell phone industry, the products and services are highly
standardized.
services.

In the past, the products differentiated in cell phones and

Today, with more technology enhancement, the products in

different companies are essentially similar. Since this is a cell phone industry,
there is a maximum amount of products and services that consumers can
choose from. Yet, consumers do not want to purchase cell phones at a higher
price value unless the companies are able to make it attractive.
Camera cell phones:
The key factor consumers consider when choosing a device is their
context.

Phones with the ability to take images, both still and video have

captured about 40% of the wireless phone market. But despite the products
popularity, customer users want higher resolution, the ability to use storage
media, and many other state of the art features found in modern digital

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camera.

With consumers desire for high resolution digital camera, the

market for camera and camcorder phones will peak in 2007.

Nowadays camera phones are the rage in markets all around the globe
because consumers are attracted to the convenience of having an imaging
device with them at all times.

The business model is focused on users

displaying and sending images wirelessly.

As advanced 3G networks are

implemented in the coming years, the advance higher resolution camera

phones will likewise become very popular. There are three critical pieces to
this type of phone:
1. The device (phone)
2. The application (picture taking)
3. The network (3G)
The introduction of 3G network will accelerate the adoption of the camera
phones. Why? Because the timing is right for digital imaging to become part
of the cell phone industry, especially in new cell phones and new networks.
Camera phones would not work with older phones and networks, because
there are small monochrome displays and little storage, and the speed to
transmit a digital photo would take a long time.

Just as important is

improvement to camera phones, new advanced third generation wireless

network (3G) will enable the cost effective transmission of these higherresolution images. Purpose of migrating to 3G is to enable users to spend
more time using their multimedia phones every day by enjoying the world
and keeping in touch with their friends and families.
Here are characteristics of the 3G network on cell phones:

The 3G networks are able to transmit at 380 K bps.

There is also improvements on the image to 330,000 pixels

Internal storage grew so consumers could store a dozen photos on their

phone

This means better pictures, better experience, and consumers bought them
by tens of millions of cell phones around the world.
Consumers do not have to pay extra for the camera features; they will get
the camera as part of the phone. Although camera phones are great to take
pictures, consumers use them as wallpaper and screensavers instead of
printing. This is how consumers change the way they interact with digital
technology.

Today, camera phones are so popular that every cell phone

company or provider offers them. Features on all cell phones are similar. If

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consumers were to just buy cell phones for their features, consumers can find
a similar phone in other companies as well.

This makes the industry very

competitive which drives companies to lower product cost and service cost in
order to bring large volumes of consumers.
Although camera phones are very popular, one factor that makes
consumers dissatisfied is the picture quality, which is limited when these
images are printed or sent:

Vast majority of users use high-resolution camera in addition to their

camera phones.

3% of consumers use their phone as their only digital camera

Most consumers take fewer than 10 pictures with their camera phone
each month

Fewer than 2% of consumers say they will consider a camera phone

with less than one mega pixel

50% of consumers say they would only consider a handset with more
than two mega pixels of resolution.

Downloadable Application:
Cell phones are programmed allowing users to download applications onto
their cell phones.
Bowling.

Such common downloads are of games such as JAMDAT

Most applications are large, between 40 KB to 550KB, and with

applications ever growing-in-size and very-more-appealing, better multimedia

and larger memory in the phones, and better network capabilities for
economic high-speed data access.
Video (Streaming):
Video Streaming is when videos are sent over a wireless network to a cell
phone. The Video streaming with 3G helps in ways that is usable and cost
effective by the consumer, and economical viable for the wireless operator.
Internet Access via PC Card:
Wireless PC Cards in smaller form will be produced for handhelds.

IT

wants access through the internet at the fastest data rates possible, and at
the lowest costs. Operator wireless also wants to keep consumers happy with
internet access which will maximize revenues and reduce their costs.
Here are some new cell phone models currently in market today:

Motorola RAZR:

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Motorola Razr is the latest fashion cell phone of 2006. It is a flip clamshell
design, quad band cellular plus standard features in most GSM cell
phones.

LG the V:

The new product is a smart clamshell design with small but useable
QWERTY keyboard, high resolution camera, MP3 player, and a mini SD
(songs).

8. Scale Economies:
There are two types of economies of scale pertaining to the cell phone
industry. They are the internal and external economies.
i.

Internal
Internal economies of scale are economies made within a company as a
result of mass production.

So as a company produces more and more

products and services to consumers, the average cost begins to fall so the
companies should focus on the following six factors:

A technical economy: when the companies use its entire means to

generate revenues and increase profitability. This includes spending
a large amount of money on capital to start the company.

Managerial economies: when the company splits up managerial

duties to meet specific company goals and values. This in turns
helps to complete specific tasks and improve the company to better
service consumers.

Financial economies: cell phone companies borrow lots of money to

purchase capital in order to create products for consumers.

Marketing economies: where cell phone companies spends a lot of

money to advertise their products and services on television and in
newspapers everyday to reach consumers across nations.
Companies resorts to marketing in hope of attracting more
consumers to try their products and to generate higher profits and
revenue.

Commercial economies: cell phone companies order their products

and supplies in bulk at a lower rate rather than buying them
separately.

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Research and development economies: the cell phone companies

are continuously developing new and advance technology cell
phone to be in pace with the competitive market.

ii.

External
The external economies are made outside of the company as a result of
its location.

Most cell phone companies have a corporate headquarter

that concentrates on the following to keep track of the companys

progress.

Cell phone companies have licensed franchises that operate to sell

products and services to consumers. They have a network that
connects them to manufacturers, service carriers, and main
corporate officer that is the backbone of the stores and products it
sells.

The cell phone companies works closely with service carriers to

provide phone service such as clear phone calls, not lost calls, and
good receptions.

The companies work and communicate directly with manufacturers

reputable for the new phones enhancement, upgrades, and
features.

9. Learning & Experience Effects:

The major complaint found in the cell phone industry was cost and
services. So to improve their service, the company has increased the training
for customer service employees to 10 days a year, and introduced a new plan
to address common complaints; also tied executive compensation to
customer satisfaction.
There are more options that buyers can choose from, whether it be the
actual phone itself or the service plan. Companies are now giving customers
a series of contract terms and costs as well as giving them a sample of how
their first bill will look like so they understand the contract before signing it.
Service carrier is a very important factor to maintaining consumer
satisfaction and to keep consumers.

With that, companies are all pushing

new data services for business customers to increase new revenue sources.
10. Capital Requirements:

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The cell phone companies require large capital to enter and remain in the
market successfully.

Companies require capital to create products that

attracts consumers and for total assets and revenues to enlist other products
and services that are featured with cell phones. Cell phone companies work
with manufacturers to create new technological and innovative cell phones in
the market today to attract consumers. A valuable capital in the cell phone
industry is the consumers because revenue and profits depends on them who
buy the companies cell phones.
New products are introduced continually, technology evolves on a daily
basis, and customers are eager to become part of the future of a wireless
society. This makes the market very competitive and large companies that
have big economies of scale provide a highly automated service to a large
number of customers, and have the financial resources required in building
and maintaining a large network of communications devices.

Smaller

companies can also compete, but only in small markets or by provide

specialty services.
Total capital requirement to start a business in selling cell phones requires
a capital investment between $50,000 to $90,000, and liquid capital
requirement of$40,000 to $50,000. In addition, companies spend millions of
dollars on developing brand name recognition, and promoting and marketing
their products. Companies also want to spread their companies out through
franchises, because more offices mean more visibility in drawing consumers
in to buying their products and services.
11. Industry Profitability:
The cell phone industry will remain a competitive market and will increase
continuously with a total of 1,200 wireless companies with total annual
revenue of $100 billion.

The profitability of individual companies is driven

mainly by their ability to develop new products, providing better service,

making their products affordable for consumers. Profitability of companies is
achieved also by taking advantage of marketing their products, have access
to capital, and by inquiring the expertise to improve the cell phones.
The profitability of the cell phone industry is dependent on the volume of
consumer they can attract.

The profitability of companies has increased

drastically since 2002 and will continue to increase as new cell phones are
improved. Since 2004, the financial markets of cell phone companies seem to

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increase fast because of the new technologies and services that companies
are offering consumers, and at the same time they compete for customers.
Although there are complaints and dissatisfaction from consumers, cell phone
and the service along with it has become a necessity which companies use as
an advantage by charging consumers higher price.
As in any industry, there are declining and inclining profits. The cell phone
has experienced a slight decline; worldwide shipments of cell phones rose 26
percent in the first quarter of 2006 compared with the same period last year.
Currently today, the global market continues to thrive on consumers replacing
older phones with new purchases, a total of 226.7 million mobile phones. For
individual company profitability, Nokia is listed at the top, retaining a third of
the global market share and enjoying a 39.6 percent growth. Motorola also
had a high increase of 60.6 gains and is controlling 20.3 percent of the
market. Samsung has shipped over 29 million phones and is in third place
with a decrease in sale to only 18.4 percent growth. LG came fourth for
market share with 6.9 percent and experienced an operating loss for the
quarter due to marketing expenses and fewer sales.
The cell phone industry looks strong and competitive between the
companies and service they provide. Even more as new options are in place,
such as, allowing consumers to keep their numbers while switching carriers.

Six Forces of Competition

When compared to the general environment, the industry environment
often has a direct effect on the firms strategic actions.

Our textbook

discusses Porters five forces of competition in most industries. However, in

analyzing the Cell Phone Industry, not only do we cover the five forces model
which includes (1) the threat of new entry, (2) the power of suppliers, (3) the
power of buyers, (4) product/service substitutes, and (5) the intensity of
rivalry among competitors, we are adding the sixth force of another
stakeholder group the Unions.
1. Threat of New Entrants
The cell phone industry is highly concentrated.

Following the recent

Sprint/Nextel merger, only four firms actually control 80% of the current
market.

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Since start-up costs for a cell phone service provider are extremely high, the
threat of new entrants is low. A great sum of money must be invested to
attain the economies of scale, and it is difficult to enter the market with
existing firms already operating on cost and differentiation strategies.
2. Bargaining Power of Suppliers
Cell phone operators provide such high volume orders that suppliers have
been cautious not to temper with the relationship and ended up being in a
low bargaining position.

Already dragging with the specter of gadget

gridlock, carriers continuously seek for ever more features in the handsets
and threaten to increase the pressure on suppliers with the reverse eauction.
T-Mobile is the first carrier, who has staged an online bidding war, asking six
vendors to bid against each other online for a contract to build cell phones for
one handset segment. Christian Dupont, director of Texas Instruments Inc.
refers reverse e-auctions as devastating for technology companies.

He

comments that this trend hinders operators and handset vendors to build
trust and keep companies that thrive on innovation from bringing value to
the industry.
3. Bargaining Power of Buyers
In August 2005, the Florida PIRG Education Fund Report revealed how cell
phone early termination fees hurt customers. Their research showed that half
of cell phone users would switch carriers if they did not have to pay contract
termination penalties. Feeling locked in a cell, most consumers resent the
$150 - $240 penalties per phone, should they consider changing to another
carrier for lower rate or better service.
The report also indicated that $4.6 billion have been paid in the last 3
years due to penalties thats $2.5 billion in actual penalties and $2.1 billion
in lost services from consumers who either cannot afford the penalty or didnt
think its worth paying.

This clearly suggests that buyers/consumers have

little bargaining power in this end.

4. Threat of Substitute Products/Services
A lot of active research and development into mobile phone technology
has been underway:

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Operators are upgrading their networks to advanced wireless and other

third-generation (3G) services, many new entertainment and
communications services are becoming available, including new
broadcast-type operations on spectrum formerly occupied by Television
channels 52-69. With downlink speeds close to that of wireline DSL,
mobile service can now provide music download and streaming video
sharing. Services such as MobiTV or Juice Caster are some applications
that leverage these new networks.

Development in miniaturized hard disks and flash drives to solve the

storage space issue are already surfacing, therefore opening the
possibility for phones to become portable music libraries and players
similar to an iPod.

Some cell phones already have GPS positioning. In the future, this may
be coupled with accelerometer positioning, to cover underground or
indoor positioning. This would lead to maps and help finding group
members nearby, or identifying strangers. When coupled with camera
phone, the GPS technology may also allow users to take a picture or
snap the exact location and angle at which the picture was taken.

5. Intensity of Rivalry among Competitors

The landscape of mobile wireless industry has changed much in recent
years. Last year perhaps is better described as the mating season for U.S.
phone companies:
Sprint and Nextel Communications Inc. together created a leading carrier
augmented by a global IP network that offers consumer, business, and
government customers broadband wireless and integrated communications
services.
The two companies combined as Sprint Nextel has a combined equity
value of about $70 million and serve over 35 million wireless customers on
their networks and 5 millions additional customers through affiliates and
partnership. The merger covers directly nearly 262 million customers, more
of U.S. population than any other carrier.
A little earlier, AT&T Inc., formed by SBC Communications purchase of
AT&T Corp. created the then largest wireless phone company.

Cingular

Wireless won that distinction in 2005 after its takeover of AT&T Wireless for
$41 billion.

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Mergers lead to concentrated pricing power in the hands of fewer
companies. When one phone company owns another phone company, the
total savings to the company through the synergies are substantial, but the
potential for competition is undermined.
6. Unions
On April 24, 2006, Walt Disney Co. announced that it has reached a deal
with the Hollywood unions that will put the mobisode spin-off of the ABC hit
series Lost Video Diaries back on track. The series will air as mini-episodes
on mobile phones, with distribution via Verizon, Disneys mobile partner, by
the year-end.
The Screen Actors Guild (SAG), The Directors Guild of America (DGA) and
the Writers Guild of America (WGA) all submitted an agreement for
establishing a template to ensure compensation of future programming on
new digital platforms. The agreement calls for residual payments once the
mobisode has been available for over 13 weeks on cell phones. The DGA and
WGA members will get a pay residual similar to the TV residual in their main
contracts - it works out to the 1.2 % license fee for use on cell phone.
As far as actors are concerned, the contract provides an escalating
minimum wage that starts at $425 per 8-hour day, dating back from April 1,
and increases to $450 in a year. On the day before the expiration, the rate
quickly jumps to $759, enabling SAG to bargain further from the higher rate.
The contract will expire the same time as SAGs Television Agreement and
Codified Basic Agreement, potentially giving the union more leverage.

As

DGA president Michael Apted expressed, This deal marks the first of many to
come and illustrates how by working together with producers, we will achieve
agreements that are mutually beneficial. By any measure, the cell phone
industry is one huge success story of the digital age; who wouldnt want a
piece of this rich pie?

Competitive Position of Major Mobile Phone

Manufacturers

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Net
Income

4.5 B

Motorola
Nokia

4B

3.5 B
Siemens
Ericsson
3B
60 B

70 B

80 B

90 B

Market Capital

The vertical axis represents the total amount of Net Income earned by
each mobile phone maker.

The horizontal axis represents the market capital each company has
worldwide.

The circles represent the total assets each mobile phone maker
has. The figure represents financial position of each company.

Market

Nokia
94.06B

Ericsson
56.82B

Motorola
56.34B

Industry
179.33M

Capital
Employees
Qtrly
Rev

58,874
28.50%

56,055
15.80%

69,000
22.70%

260
15.90%

46.23B

20.78B

38.70B

81.02M

Growth
(yoy)
Revenue

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(ttm)
Gross

34.34%

45.75%

31.48%

37.72%

13.24%

20.21%

11.23%

1.69%

(ttm)
Net Income

4.80B

3.33B

4.59B

729.70K

(ttm)
EPS (ttm)
P/E (ttm)
PEG (5 yr

1.12
20.54
1.76

2.09
17.14
1.78

1.797
12.54
1.68

0.07
27.85
1.57

Margin
(ttm)
Oper
Margins

expected)
P/S (ttm)

2.03
2.77
1.44
Source: http://finance.yahoo.com/q/co?s=NOK

1.99

Among the four major cell phone makers, Nokia has the most market
capital and net income, which makes Nokia the largest cell phone
maker in the world.

Motorola comes into second in net income.

Nokia has the best Price/Earning ratio, which means Nokias stock has
the relative high earning per share.

Ericsson has the highest gross margin. Gross margin (gross profit /
sales revenue) is a measure of a company's efficiency in turning raw
materials into income. In other words, Ericsson is most efficiency in
turning raw materials into income.

Competitor

Analysis

of

Mobile

Phone

Manufacturers
Nokia
Nokia, a Finnish cell phone giant, has become the world's No.1 maker
of cell phones, ahead of rivals such as Motorola, Samsung and others. The
company's products are divided primarily between four divisions: mobile
phones (wireless voice and data devices for personal and business uses),
multimedia (home satellite systems, and mobile gaming devices), networks
(wireless switching and transmission equipment used in carrier networks),
and enterprise solutions (wireless systems for businesses).
Nokia wants to be the leader in third-generation (3G) wireless network
equipment. The company has slowly becoming the supplier to half of the
world's commercial 3G networks. By doing so, Nokia swims to the top of the

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wireless network infrastructure market led by Ericsson.

To capture the

international market, Nokia rolled out new business and consumer models
with color screens worldwide.

The company also gained a piece of the

Chinese market by delivering a unit of models capable of English and Chinese

text recognition to be sold by vendors in China.
Key Numbers
Company Type
Fiscal Year-End
2005 Sales (mil.)
1-Year Sales Growth
2005 Net Income (mil.)
1-Year Net Income Growth
2005 Employees
1-Year Employee Growth
Source:
Hoovers
Company

Public (NYSE: NOK; Helsinki: NOK1V)

December
$40,465.0
2.1%
$4,280.0
(1.5%)
58,874
6.1%
Records.
http://hoovers.com/nokia/--

ID__41820--/free-co-factsheet.xhtml
Key People
Chairman and CEO

Jorma Ollila

President and COO

Olli-Pekka Kallasvuo

EVP and Chief Strategy Officer

Tero Ojanper

SVP and CFO

Richard A. Simonson

SVP, Corporate Relations and Responsibility

Source:

Hoovers

Company

Records.

Veli Sundbck
http://hoovers.com/nokia/--

ID__41820--/free-co-factsheet.xhtml
Motorola
Motorola is the No. 2 manufacturer of wireless handsets after global
leader Nokia. After a previous reorganization, its remaining operations have
been focused in four business segments: connected home solutions;
government and enterprise mobility solutions; mobile devices; and networks.
The company generates nearly 60% of sales through the manufacture and
sales of wireless handsets and related products.
Key Numbers
Company Type
Fiscal Year-End
2005 Sales (mil.)

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Public (NYSE: MOT)

December
$36,843.0
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1-Year Sales Growth
2005 Net Income (mil.)
1-Year Net Income Growth
2004 Employees
1-Year Employee Growth
Source:
Hoovers
Company

17.6%
$4,578.0
198.8%
68,000
(22.7%)
Records.
http://hoovers.com/motorola/--

ID__11023--/free-co-factsheet.xhtml

Key People
Chairman and CEO

Edward

J.

(Ed)

Zander
EVP and CFO

David W. Devonshire

EVP and CTO

Padmasree Warrior

SVP and CIO

Patricia B. (Patty)

Morrison
SVP and Director,
Global Government Relations Organization

Michael D. (Mike)

Kennedy
Source:

Hoovers

Company

Records.

http://hoovers.com/motorola/--

ID__11023--/free-co-factsheet.xhtml
Ericsson
Ericsson, a company base in Stockholm, Sweden, is the worlds leading
maker of wireless telecom infrastructure equipment. Ericsson is also a top
cell phone maker and seller through its joint venture with Sony, Sony
Ericsson. The company's other products include corporate networking gear,
cable,

defense

electronics,

and

software

for

mobile

messaging

and

commerce.
Key Numbers
Company Type
Fiscal Year-End
2005 Sales (mil.)
1-Year Sales Growth
2005 Net Income (mil.)
1-Year Net Income Growth

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Public

(NASDAQ:

ERICY [ADR];

Stockholm: ERIC)
December
$19,099.0
(4.3%)
$3,059.0
6.4%
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Handheld electronic device software - Product Management.

2004 Employees
1-Year Employee Growth
Source: Hoovers Company

50,534
(2.0%)
Records. http://hoovers.com/ericsson-inc./--

ID__43838--/free-co-factsheet.xhtml
Key People
Chairman

Michael Treschow

EVP, CFO, and Head of Group Function Finance

Carl-Henric

Svanberg
EVP, Group Function Sales and Marketing

Karl-Henrik

Sundstrm
EVP, Group Function Sales and Marketing

Bert Nordberg

SVP, CTO, and General Manager, Research

and Development
Source:

Hoovers

Hkan Eriksson
Company

Records.

http://hoovers.com/ericsson-inc./--

ID__43838--/free-co-factsheet.xhtml
Other Manufacturers:
LG
Founded in 1947 as Lucky Goldstar, LG Group consists of more than 30
affiliated companies that operate through more than 300 offices around t he
globe.

LG Group's companies operate in more than 120 countries.

LGs

annual sales in 2004 have reached $798.8 million (Hoovers). The Group and
its former partner, GS Holdings, are headed towards a competitive showdown
in the fuel cell and rechargeable battery markets.
Samsung
Samsung Electronics Co., Ltd. is the world's top maker of dynamic
random-access memory (DRAM) and other memory chips, as well as all sorts
of electronic gear including LCD panels, DVD players, and cellular phones.
The Korean companys sales in 2004 have reached $ 78,250.1 million
(Hoovers), a number that worth a big celebration.

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Competitive Position of Major Wireless Service

Providers
Net
Income

6B
Verizon

4B
AT&T

2B
Sprint
Nextel
-700 M

Qwest

20 B

50 B

80 B

110 B

Market Capital

The vertical axis represents the total amount of Net Income earned by
each wireless service provider.

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The horizontal axis represents the market capital each company has.

The circles represent the total assets each wireless service provider
has. The figure represents financial position of each company.

Verizon

AT&T

Qwest

Sprint

Industry

Nextel
Market
Capital
Employees
Qtrly
Rev
Growth
(yoy)
Revenue
(ttm)
Gross
Margin

93.05B

101.30B

12.17B

72.97B

350.37M

217,000

189,000

39,000

79,900

800

25.10%

54.50%

0.80%

66.50%

2.90%

79.68B

49.45B

13.93B

39.29B

237.24M

64.74%

56.05%

58.23%

59.34%

55.19%

18.85%

16.19%

8.08%

10.05%

10.82%

7.31B

5.35B

-726.00M

1.74B

-318.91K

2.571
12.41

1.519
17.19

-0.404
N/A

0.710
34.63

N/A
15.02

4.74

1.57

48.15

1.03

4.07

0.89

1.89

1.70

(ttm)
Oper
Margins
(ttm)
Net Income
(ttm)
EPS (ttm)
P/E (ttm)
PEG (5 yr
expected)
P/S (ttm)

1.18
2.05
Source: http://finance.yahoo.com/q/co?s=VZ

Among the four competitors in wireless service market, Verizon take

the lead, which it has the most net income and second most market
capital.

Whereas AT&T has the most market capital.

Sprint Nextel has the best Price/Earning ratio, which means Sprint
Nextels stock has the relative high earning per share.

Verizon has the highest gross margin. Gross margin (gross profit / sales
revenue) is a measure of a company's efficiency in turning raw
materials into income. In other words, Verizon is most efficiency in
providing its service.

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Competitor

Analysis

of

Wireless

Service

Providers
Verizon
Verizon Communications was founded in 2000 when Bell Atlantic
bought GTE. The name is a combination of veritas, the Latin word for truth,
and horizon. Verizon is a top US telecom services provider base in New York,
New York. The company operates nearly 49 million access lines in 28 states
and Washington, DC.
Verizon operates in four business segments: Domestic Telecom,
Domestic Wireless, Information Services, and International.

The Domestic

Wireless unit offers wireless voice and data services and equipment sales
through the US. Its International segment has operations and holdings mostly
in the Americas and Europe.
Key Numbers
Company Type
Fiscal Year-End
2005 Sales (mil.)
1-Year Sales Growth
2005 Net Income (mil.)
1-Year Net Income Growth
2005 Employees
1-Year Employee Growth

Public (NYSE: VZ)

December
$75,112.0
5.4%
$7,397.0
(5.5%)
250,000
19.0%

Key People
Chairman and CEO

Ivan G. Seidenberg

Vice Chairman and President

Lawrence T. Babbio Jr.

EVP and CFO

Doreen A. Toben

EVP Public Affairs, Policy, and Communications

Thomas

J.

(Tom) Tauke
EVP Strategy, Development, and Planning
Source:

Hoovers

Company

Records.

John W. Diercksen
http://hoovers.com/verizon/--

ID__10197--/free-co-factsheet.xhtml
AT&T

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The company was founded in 1878 when a dozen customers signed up
for the first telephone exchange in St. Louis.

SBC acquired AT&T Corp. in

2005 and took that company's more well-known name as AT&T Inc.

AT&T

holds a 60% stake in Cingular Wireless, which has acquired AT&T Wireless in a
cash deal valued at $41 billion. The deal has created the leading US wireless
operator with 46 million customers in 49 states.
Some of the companys selected subsidiaries and affiliates
include:

AT&T Corp.

AT&T Communications of California, Inc.

AT&T Communications of Illinois, Inc.

AT&T Communications of NJ, LP

AT&T Communications of the Mountain States, Inc.

AT&T Communications of the Southern States, LLC

Teleport Communications New York

Cingular Wireless (60%, joint venture with BellSouth)

Illinois Bell Telephone Company (AT&T Illinois)

Key Numbers
Company Type
Fiscal Year-End
2005 Sales (mil.)
1-Year Sales Growth
2005 Net Income (mil.)
1-Year Net Income Growth
2004 Employees
1-Year Employee Growth

Public (NYSE: T)
December
$43,862.0
7.5%
$4,786.0
(18.7%)
162,000
(3.6%)

Key People
Chairman and CEO

Edward

E.

(Ed)

Whitacre Jr.
SEVP, Business Development
COO and Director

James W. (Jim) Callaway

Randall

L.

Stephenson
SEVP and CFO

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Handheld electronic device software - Product Management.

SEVP and CTO
Source:

John T. Stankey

Hoovers

Company

Records.

http://hoovers.com/at&t/--

ID__11379--/free-co-factsheet.xhtml
Sprint Nextel
Sprint

Nextel

combines

the

best

of

two

powerhouse

wireless

companies. The combination of No.3 US wireless carrier Sprint with No.5

Nextel Communications has created a wireless giant that aspires to take on
the wireless units of bounding former Baby Bells Verizon and AT&T Inc. Sprint
Nextel has about 50 million subscribers to its nationwide digital wireless
network, puts the wireless carrier behind only Cingular and Verizon Wireless
in number of subscribers.

The company's wireline business provides local-

exchange phone services through more than 7 million access lines in 18

states.
Key Numbers
Company Type
Fiscal Year-End
2005 Sales (mil.)
1-Year Sales Growth
2005 Net Income (mil.)
2004 Employees
1-Year Employee Growth

Public (NYSE: S)
December
$34,680.0
26.4%
$1,785.0
59,900
(10.5%)

Key People
Executive Chairman

Timothy

Donahue President, CEO, and Director

M.

Gary

(Tim)
D.

Forsee
COO

Len J. Lauer

CFO

Paul N. Saleh

SVP, Corporate Strategy and Development

Source:

Hoovers

Company

Records.

Atish Gude

http://hoovers.com/sprint-nextel/--

ID__103483--/free-co-factsheet.xhtml

Industry Trends
Technology
There is currently a variety of wireless networking capabilities that are
emerging, developing, and integrating.

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within the cell phone industry will create better, higher-speed, and longerdistance capabilities. There are two basic and current wireless systems that
are already in place. One is Wi-Fi, a local wireless internet access point was
limited to buildings, business and college campuses. Wi-Fi is capable of being
used within the cell phone industry when the optimal technologies are
created.

The other is Worldwide Interoperability for Microwave Access

(WiMAX), is allowing you wireless access wherever you go.

There are currently three providers for the digital wireless mobile phones
service that create the networks via satellite.

Global Service for Mobile

Communications (GSM) has internationally appeal but is the network that

Cingular and T-Mobile use for their service.

Code Division Multiple Access

(CDMA), have better coverage in the United States and are mainly utilized by
Sprint and Verizon Wireless. Integrated Digital Enhanced Network (iDEN) is
only used by one carrier, Nextel. The other smaller and regional carriers such
as Virgin Mobile, U.S. Cellular, MetroPCS, and Alltel use CDMA.
The newest trends plan to integrate their technologies in the cell phone
industry.

Voice over Internet Protocol (VoIP) allows you to make telephone

calls using a computer network, or a data network like the Internet.

VoIP

converts the voice signal from your telephone into a digital signal that travels
over the internet then converts it back at the other end so you can speak to
anyone with a regular phone number. This new network may also allow you to
make a call directly from a computer using a conventional telephone or even
a microphone.

Ultra-Wideband (UWB) also work with the PC or laptop and

offers a cost effective, easy way for consumers to wirelessly transfer data,
images or audio from their phone to another source, such as the laptop.
Global Positioning System (GPS), this service is already equipped in most
motor vehicles, and will soon be a feature provided by cell phone service
providers enabling users to find the their own location, or access a mapping
service. Although the system currently uses satellites, it is preparing to use
existing TV antennas to send out signals. This service is set to hit the market
by June through Disney, so parents can electronically locate their children.
With all these emerging and current wireless systems in place, the
wireless phone companies are panicking in preparation for a major shift in the
cell phone industry. They are worried their customers may start using VoIP
services like Skype, as Wi-Fi-enabled phones become more common and are
lining up behind Unlicensed Mobile Access (UMA). UMA would allow calls to

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move seamlessly from the GSM cellular network to Wi-Fi networks. Most
important to the cell companies, it would let the operators retain control over
the call and charge the customer for the minutes used. But, with Skype and
some other VoIP services, customers would be able to call for free once their
phone is connected to a Wi-Fi network. Some U.S. cities are now proposing
free citywide Wi-Fi services, which could mean billions in lost revenue for the
cell phone industry.
Phone Design
Cell phones will become much more powerful, and designs will continue to
morph into ever more complex, multi-purpose personal communication
devices, including the growing use of the cell phone as a financial transaction
device (see Mobile Commerce below).

Batteries for wireless devices will

begin to last much longer as well.

Mergers
AT&T and Cingular merged in 2004 and recently the merge of Nextel with
Sprint also created a larger company. Mergers negatively impact customer
attitudes and perceptions with their wireless service in the short term,
creating a sense of confusion and uncertainty.

Nextel and Sprint actually

experienced the largest 2005 declines compared to their overall satisfaction

index ratings in 2004, most likely due to the adverse affects of the merge.
Yet carriers not involved in mergers also experienced some decline in
overall satisfaction, with the gap between customer expectations and actual
service experience widening. Evidence of this can be seen in the 5% increase
of intent to switch carriers in the coming year, which was a reverse trend from
the past two years, where future switching intent was stable.

Market Growth
Although cell phone markets are relatively mature in the U.S. and in major
developed nations everywhere, the number of subscribers nonetheless
continues to grow in these countries. In the U.S., new subscribers tend to be
those on lower-cost plans and children. Already, 40% of 12- to 14-year-old

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Americans carry cell phones; the rest of them will be soon to follow.
Meanwhile, $1 billion cell phone subscribers are expected to join the craze
within less developed nations worldwide. The largest nations include Sweden,
the U.K, and the Netherlands followed by China and India.
Security Issues
Security issues such as eavesdropping on Bluetooth conversations,
hacking into Wi-Fi networks and viruses spread among cell phones will require
more attention and investment from the technology and telecommunications
sectors. The estimate is that the global market for mobile phone security
software will reach $1 billion by 2008.
Mobile Commerce (mCommerce)
Mobile Commerce, also known as mCommerce, will emerge and create
mobile subscriptions and advertising opportunities for companies ready to
embrace mobile subscribers. Consumers in nations such as Japan and South
Korea have already shown that they are more than willing to access quality
mobile content and next generation services on a subscription basis,
including news, wireless TV, animation and filmed entertainment scripted and
adapted for the small mobile screen.
The cell phone can is also going to be considered a digital wallet. In
Europe and Asia, many people pay at the register by reaching for their cell
phone instead of their wallets. The phones facilitate transactions between the
point of sale and the user's credit, bank, or cellular account. Phones from
Motorola and Nokia plan to implement the system over the next year.
Services will come via partnerships between local banks partnering with a
service provider.

New Service Provider

There is always the potential for a newcomer to join the crowd to threaten the current
providers by combining the most current technologies, with faster service, and lower
prices. Pre-paid phones could become more prevalent with the right service provider that
can cater to the pay-as-you-go customers. The collaboration of Wi-Fi with the potential
spread of longer-range WiMAX, and the eager adoption of VoIP will threaten to turn the
cell phone and landline industries upside down.
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Key Success Factors

There are factors that are necessary to attract customers, compete, and
ultimately be successful in the cell phone industry.

For a company to be

successful in the cell phone industry they can create value by providing the
basic features, technical features, and support to back up those features.
Basic
These features are assumed to be included and expected in a basic cell
phone package to satisfy the simplest customers.

Caller ID Line Block

Call Forwarding

Call Hold

Call Waiting

Caller ID

No Answer Call Forwarding

Three-Way Calling

Voicemail

Technical
These features go beyond the basics and provide the technical features to
attract the savviest of cell phone subscribers.

Internet capabilities to receive billing, make payments, and download

ringtones.

Detailed Billing either in paper form or downloadable from the internet.

High-Resolution Camera, most important feature among subscribers.

Text Messaging, 3 billion wireless text messages are sent each month.

Web Access to get stock quotes, sports scores, weather, and up to the
minute news.

Insurance to protect yourself in case of malfunction.

E-mail Messaging can now be done from the palm of your hand

NO Domestic Long-Distance Charges, not available with landlines.

Ability to Download Ringtones, free is better.

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Battery Power is the second most important feature among

subscribers.

Bluetooth is wireless technology that communicates with a wireless

hands-free headset.

Video capability at least 15 seconds of video is the standard.

Prepaid Minutes typically useful for an individual that requires minimal

talk time.

Mp3 Capable, subscribers want to be able to use their iPods with their
handsets.

Ability to Record Music and play it back or use as a ringtone.

FM Radio can now be transmitted through a handset.

FLASH Memory Cards can hold up to 100 songs and are removable.

Support
Every company can provide the basic and technical features but the
ultimate test for success or failure is decided by the support the cell phone
company can provide to their subscribers.

Pricing Plans that provide a reasonable amount of minutes and

coordinate with the basic and technical features. A family plan allows
the whole family to share their minutes on one plan.

Wireless Service Satisfaction, a strong signal reception for a network is

a must to provide the subscriber with clear call quality minus the
static/interference, voice distortion, echoes, and dropped/disconnected
calls.

Wireless Customer Care Performance, the customer service is as

important as the basic and technical features.

Wireless Retail Sales Locations can provide a physical location to get

hands on experience with a handset and face-to-face contact with a
representative.

Wireless Phone Handset Satisfaction can offer multiple options from

size, weight, design (folding, swivel, rectangular, or sliding can affect
the performance), and antenna.

Industry Prospects and Overall Attractiveness

Factors Making the Industry Attractive

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As reported in USA Today, a Federal Communications Commission report
stated that over the past four years landline usage has decreased by 30
million users. There are great opportunities right now to get a lower price or a
lot more minutes on a cell phone. The cell phone industry is offering unlimited
plans in growing numbers. The word cell phone has become a familiar usage
across the globe, especially in developed countries.
The Cell Phone Service Providers have made provisions to allow users to
access the Internet through the cell phone, without taking the pain to log into
their computers. Cell Phones now can be used as planner, navigation system
and for games. Also, Steve Jobs the owner of Apple has enabled the
innovative invention of the Motorola hybrid phone, which has an iPod with the
cell phone. The cell phone is one technology where people of different ages
can use without any hesitation. Cell phones are also used as fashion objects,
since the styles have been changing almost every year; for example, the
credit card-size Samsung SGH-P300 or Motorola Black RAZR. Also, now
various ring tones of ones choice can be downloaded to the cell phone. And
there is the camera phone, where a camera is attached to the cell phone, and
the pictures taken with a camera phone are of good quality that can be emailed or even printed.
The cell phone technology has infiltrated its way through the teenage
population very fast. The national network, Sprint is on the verge to launch
cell phones that are custom handsets, which contains phone contents such as
Disney ring tones and games. This is a way where the cell phone industry can
open a whole new arena for attracting a market for children. Also, there is the
new culture of SMS (Short Message Service), which is a new way to send text
messages. SMS is quite popular among teenagers and college students, which
helps everybody to keep in touch with friends and family. Nowadays all cell
phone manufactured supports SMS. In fact, the use of Internet supports the
option for instant messaging, such as with America Onlines Instant
Messenger.
Mergers are another factor that makes the cell phone industry attractive.
For instance, among the cell phone service providers, the Sprint and Nextel
merger and again when Cingular and AT&T Wireless merged. It facilitates both
the companies to combine both their features and produce attractive
products, such as Sprints network and Nextels walkie-talkie option in the cell
phone.

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Factors Making the Industry Unattractive

Mergers might be good for the cell phone service providers, however, if
the nations leading cell phone companies merge, there will be less
competition in the market, causing prices to increase than before. With large
mergers like Cingular and AT&T, there is the risk of a monopoly in the market,
which can charge the highest possible prices to consumers. This will definitely
pose a threat to consumers, because the number of options of choosing one
cell phone service provider over another is reduced.
Special Industry Problems and Issues
As with new technology, health concerns have risen with the use of cell
phones. There are certain studies that show a few cases of tumors or cancer
that develops as result of using cell phone for long periods of time. According
to the Food and Drug Administration, these health problems are said to be
caused due to the radiations emitted from cell phones. Also, these radiations
tend to cause birth defects due to genetic mutation.
In addition, many incidents of road hazards occur because of the use of
cell phones. Many accidents involving a driver being distracted by talking on
a mobile phone have begun to be prosecuted as negligence similar to driving
while intoxicated. In US, many of the state legislatures, about 40, have
passed laws to ban the usage of cell phones while driving.
Cell phones have also been a major threat to security. There have been
cases of identity theft, and also where a third party can intercept in a network
listen to conversations. Also the bombings that occurred in 2004 at Madrid,
was from a cell phone. So there are major security concerns of the cell phone
that has to be looked into.
Profit Outlook
The cell phone industry has been improving through recent years due to
the fact that markets have opened up to several consumers. Below are the
profitability ratios (2005) of some of the known cell phone manufacturers:

Earnin

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Return on

Return
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Handheld electronic device software - Product Management.

gs

Mar

Sharehol

On

Per

gin

ders

Assets

Nokia

Share
1.12

10.38

Equity
29.8%

16.2%

Motor

1.812

%
12.43

27.6%

12.8%

ola
Ericss

2.09

%
16.02

22.1%

11.0%

on
Sieme

2.98

%
2.61%

9.5%

3.0%

ns
Kyocer

3.30

5.90%

5.4%

3.6%

a
Now almost every individual thrives to own a cell, especially in developed
countries. For instance, according to industry statistics (CTIA, The Wireless
Association) reveal that the number of cellular subscribers in the U.S. now
total nearly 195 Million (Goodstadt). Below is a graphical presentation of a
sample of households that are cell phone users in US.

(graph from http://www.icrsurvey.com)

According to reuters.com, December 2005, the global cellular market had

2.14 billion cellular subscribers, up from 2 billion in September 2005. Experts
predict 3 billion subscribers before the end of 2008. Now cell phone
manufacturers are making phones that are capable of accessing VoIP (Voice
Over IP), which is now a way to make phone calls free of charge, such as with

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Handheld electronic device software - Product Management.

what exists now Skype and Vonage. Analysts predict that this new
development will help the cell phone industry profits rise, because of the
newer technology; and nowadays consumers are waiting to acquire the
newest technology that can help them to be more efficient.

Conclusion
In recent years, cell phones have turned out to be a necessity rather than
a status symbol. Nowadays, cell phone manufacturers are producing different
phones that fit different needs; and also, service providers have different
plans for customers to choose from. With the advance in technology,
consumers are able to experience the ease in communication. From 1994
onwards, the cell phone industry has seen great success through the years,
and analysts predict that this growth is only going to increase with the
advancement of technology.

References:

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About Cell Phones.

Retrieved May 2, 2006 from the World Wide Web:

http://cellphones.about.com
Belk, Jeff, Vendor Viewpoint: Why 3G Networks will accelerate the use of
Advanced Camera Phones, published May 8, 2006. Retrieved on May 9, 2006
on the World Wide Web
http://www.mobiletrax.com/vp/20040330.html
By Associated Press, Wired News: Skype Takes VOIP Upscale, Published on
June 5, 2005. Retrieved on May 8, 2006 on the World Wide Web
http://www.wired.com/news/technology/0,67748-0.html
By Associated Press, Wired News: Cell-Phone Industry Courts VOIP, Published
April 9, 2006. Retrieved on May 8, 2006 on the World Wide Web
http://www.wired.com/news/wireservice/0,70629-0.html?tw=wm_wn_index_7
Charry, Ben, Phone, firms, profit, but upswing elusive, Published: April 23,
2003. Retrieved on May 6, 2006 on the World Wide Web
http://news.com.com/Phone+firms+profit,+upswing+exclusive/2100-1037_3998073.html
CoPIRG Reports: Locked In a Cell: How Cell Phone Early Termination Fees Hurt
Consumers. Retrieved on May 5, 2006 on the World Wide Web
http://copirg.org/CO.asp?id2=22566

Digital Trends The Future of Cell Phones. Retrieved May 2, 2006 from the World
Wide Web: http://news.digitaltrends.com
Federal Communications Commission Voice Over Internet Protocol. Retrieved May 3,
2006 from the World Wide Web: http://www.fcc.gov
Hines, Matt, Report: Pricing, Not Multimedia, Drives Wireless Uptake,
Published on March 2, 2006. Retrieved on May 5, 2006 on the World Wide
Web
http://www.eweek.com/article2/0,1895,1933328,00.asp
Hoovers Ericsson Inc. Retrieved April 28, 2006 from the World Wide Web:

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Handheld electronic device software - Product Management.

http://hoovers.com/ericsson-inc./--ID__43838--/free-co-factsheet.xhtml
Hoovers LG Group Retrieved April 28, 2006 from the World Wide Web:
http://hoovers.com/lg-group/--ID__41185--/free-co-factsheet.xhtml
Hoovers Nokia Corporation Retrieved April 28, 2006 from the World Wide
Web:
http://hoovers.com/nokia/--ID__41820--/free-co-factsheet.xhtml
Hoovers Motorola Inc. Retrieved April 28, 2006 from the World Wide Web:
http://hoovers.com/motorola/--ID__11023--/free-co-factsheet.xhtml
Hoovers Samsung Electronics Co., Ltd. Retrieved April 28, 2006 from the
World Wide Web:
http://hoovers.com/samsung-electronics/--ID__55277--/free-co-factsheet.xhtml

Hughlett, Mike. Mergers mess with Motorola. 30 January 2005. The Chicago Tribune.
Retrieved on May 6, 2006 from the World Wide Web:
http://www.mcall.com/technology/chi-0501300126jan30,0,4143415.story
InfoWorld: ABC, unions reach deal on cell phone TV shows. April 24, 2006. Retrieved
on May 6, 2006 from the World Wide Web:
http://www.infoworld.com/article/reuters/2006-04-25_N24351020.html
In-Stat Research Highlights, Camera Phone Demand Soon to Peak; Low Picture
Resolution and Other Factors Fail to Meet Users Expectations, Published on
February 8, 2006.

Retrieved on May 6, 2006 on the World Wide Web

http://www.instat.com/rh/si/newmk.asp?
id=1583&sourceID=00000021000000000000
International Communications Research Growth of multiple cell phone
ownership

Retrieved

May

10,

2006

from

the

World

Wide

Web:

http://www.icrsurvey.com
J.D. Power Consumer Center Business Wireless Ratings. Retrieved May 7,
2006 from the World Wide Web: http://consumercenter.jdpower.com

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Handheld electronic device software - Product Management.

Jivani, Khairrunissa, Will Cell Phone Usage Become a Burden?, Copyright 2006
by USC Marshall School of Business. Retrieved on May 5, 2006 on the World
Wide Web
http://www.usc.edu/org/InsightBusiness/archives/spring2005/cellphones.html
JupiterResearch: A phone in my ipod? Retrieved on May 8, 2006 on the World
Wide Web &
Future Cell Phones: The Big Trends, 2005-2010. Retrieved on May 8, 2006 on
the World Wide Web http://mobileanalystwatch.blogspot.com/
Lombardi, Candace, Mobile phone market strong, Published on ZDNet News:
April 20, 2006. Retrieved on May 7, 2006 on the World Wide Web
http://pda.physorg.com/lofi-new-phones-mobile-percent_5335.html
Metz, Rachel, Wired News: Cell Phones Work as Tour Guides, Published on
December 8, 2004. Retrieved on May 8, 2006 on the World Wide Web
http://www.wired.com/news/wireless/0,1382,65945,00.html

Mobile Phone: From Wikipedia, the free encyclopedia. Retrieved on May 6, 2006 from
the World Wide Web: http://en.wikipedia.org/wiki/Cell_phone
News Room, Survey Shows Nearly Half of Cell Phone Users Would Switch or
Consider Switching Carriers If They Didnt Have to Pay Contract Termination
Penalties, Published August 11, 2005. Retrieved on May 1, 2006 on the World
Wide Web http://uspirg.org/uspirg.asp?id2=158538
New York Times News Service For wireless, the beginning of a breakout
Retrieved

May

8,

2006

from

the

World

Wide

Web:

http://www.contec.ca/i/pdf/2005-01-24_GM.pdf
Nokia: Competitors. Copyright 2006 Yahoo! Inc. Retrieved on April 29, 2006
from the World Wide Web: http://finance.yahoo.com/q/co?s=NOK

Plunkett Research Wireless and Cellular Industry Trends. Retrieved May 6, 2006 from
the World Wide Web: http://www.plunkettresearch.com
Reuters Online Long-term mobile phone use raises brain tumor risk: study
Retrieved

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Handheld electronic device software - Product Management.

May 8, 2006 from the World Wide Web: http://go.reuters.com/
Technology Sector Industry Profile Excerpt, Published February 13, 2006.
Retrieved on May 9, 2006 on the World Wide Web
http://www.firstresearch.com/Industry-Research/TelecommunicationServices.html

U.S. Newswire: Survey shows nearly half of cell phone users would switch carriers if
they didnt have to pay contract termination penalties. August 11, 2005. Retrieved on
May 3, 2006 from the World Wide Web: http://releases.usnewswire.com/GetRelase.asp?
id=51587
Weir, Laila, Wired News: Trade Your Wallet for Wireless, Published on August
31, 2004 EDT: Retrieved on the World Wide Web
http://www.wired.com/news/technology/0,1282,64778,00.html
Why Form Factor & Design are Important in Choosing Your Next Cell Phone
Published March 15, 2006. Retrieved on the World Wide Web
http://www.mobiletrax.com/im/index.html
Young, Richard, Economies of Scale Notes, 1996-2006 Biz/ed: Retrieved on
May 8, 2006 on the World Wide Web.
http://www.bized.ac.uk/learn/economics/firms/economies/notes.htm#Heading
42

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3) RESEARCH METHEDOLOGY
3.1) RESEARCH BACKGROUND:
ERP improves productivity, which is the main reason why especially large
sized companies are keen to study about it and adopt the ERP system in
their business processes. The key characteristic of the ERP system is
integration, once an ERP system is implemented, each department in a
company will use the same database; share the data that immediately
improve the communication among the different department as good
start.
NTPC is one of the large organizations that launched a new ERP system
in the beginning of the year 2005, and the system development was
extended till year 2006. The new ERP system in NTPC is defined as a
unified business system that provides all business function for the end
to end business process. The function goals of applying ERP solution
could be characterized as centralization, harmonization, and self
service.
Research statement:
A

STUDY

OF

BUSINESS

PROCESS

IMPROVEMENT

AFTER

IMPLEMENTATION OF SAP ERP IN NTPC

3.2) OBJECTIVE OF THE STUDY:

The main objective is

To check the validity of the current business process in NTPC.

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To measure the effectiveness of services through SAP ERP that is

offered by NTPC in different departments.

To know if SAP ERP has reduced workload of employees and thus is

an efficient tool.

3.3) BENEFIT OF THE STUDY:

The project findings will help in

Validating the records of all the employees thus reducing the

errors.

Maintaining a good and competitive environment among the

employees and also help in measuring the effectiveness of services
through SAP ERP in NTPC.

Improve the company at each level and give a competitive

advantage over the other companies that are into the power sector
and ultimately to achieve the organizational goal

3.5) RESEARCH DESIGN:

Purpose of study: - Descriptive
Here we want to know the business process improvement after
implementation of SAP ERP in the organization & effectiveness on their
employees.
Degree of research question crystallization: - Exploratory study
As per my objective of the research, the research questions would try to
find out the current situation in the company.
3.6) DATA COLLECTION METHOD:
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Based on my initial observation, I have prepared a questionnaire to
collect the response from employees in the NTPC as primary data.
Versatility of the questionnaire will help to cover almost all related factors
impacting the effectiveness of using SAP in organization of the target
sample. And face to face semi structured interview with the employees of
the organization for the case study.
The secondary data for the thesis is collected through the following tools
like:

Company websites

Internet

Employee handbook

PRE-TESTING OF QUESTIONNAIRE:
It is necessary to check the questionnaire, before actual research is done.
Therefore pilot testing is done. In this case , pilot testing has been done
for 10 respondents and based on the feedback, the questioner was finetuned.

3.7) SAMPLE DESIGN:

Sample Unit:

employees using SAP ERP in NTPC

Sample area:

Noida District

Sample method:

convenient sampling

Sample size:

30

Duration of data collection: Time duration from 15 April to 15 May

2013.
Sampling frame: The database provide by NTPC ltd.

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3.8) STATISTICAL TEST USED:

Here we use the one sample T-test, chi-test, cross tabulation and
frequency. One sample T-test is used to test the difference between
sample mean and hypothesized population mean. Chi -test is used to
compare the expectation mean and satisfaction mean.

3.9) LIMITATIONS OF THE STUDY:

The report has been prepared on the basis of data which is collected
through Email, with the help of questionnaire and through secondary
sources. Some of the constraints which evolved during the course of
study are as follows:

The

most

significant

limitation

has

been

that

the

actual

effectiveness of the services through SAP ERP cannot be just

presented by doing the survey in some departments.

Only human resource aspect of the organization was covered.

There could have been some errors while selecting employees in

organization who are using the SAP.

There could be some errors in data collection, data interpretation,

and even the environment plays an important role in the outcome
of the results.

Some of the errors may have crept in due to the financial

constraints.

There may have been some personal bias on part of employees due
to unwillingness to reveal the fact or due to tiredness.

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4) DATA ANALYSIS AND INTERPRETATION

4.1)

SECONDARY

DATA

ANALYSIS

(THEORETICAL

CONCEPT)
4.1.1) ERP (enterprise resource planning):
4.1.2) ERP IMPLEMENTATION:
4.1.3) ADVANTAGES OF ERP SYSTEM:
4.1.4) DISADVANTAGES OF ERP SYSTEM:

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4.1.5) ERP VENDORS IN THE MARKET:

4.1.6) SAP (Systems, Applications, Products in Data
Processing)
4.1.7) SAP SOLUTION:
4.1.8) SAP BUISSNESS SUITE:
4.1.9) MY SAP ERP BUSINESS SUITE:
4.1.10) SIEMENS & SAP SOLUTION:
4.1.11) BUSINESS BENEFIT:
4.1.12) BASIC SYSTEM:
4.1.13) SAP COST/BENEFIT ANALYSIS:
4.1.14) ADVANTAGES AND DISADVANTAGES:

4.1.15) NAVIGATION:
4.2) DATA ANALYSIS OF PRIMARY DATA (SURYE):
Q-1 Which model is most demanding in the market?

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INTERPRETATION:

Q-2 Which feature is most demanding in the market?

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INTERPRETATION:
The question was trying to find out from the sample that if respondents
noticed any improved areas in current SAP system, either in software
itself or function related with, and trying to identify the improved
area.73.33% employees reply that there are no improve in current area in
SAP but 26.67% employees say that there are improvement area in SAP
like MM module, client server change, reporting opportunities expanded,
a slight improvement in user interface, accessibility of the system is
improved, and mistakes was corrected.

Q-3 Maximum sell model price segment?

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Table 1: missing any function

yes
no
Total

Frequency
6
24
30

Percent
20.0
80.0
100.0

Valid Percent
20.0
80.0
100.0

Cumulative Percent
20.0
100.0

INTERPRETATION:
The question was aiming to find out if there were missing functions in
current SAP system, and in which areas existed these missing functions
from respondents point of view. As the result shows, only 20 %
respondent said that there were still some missing functions in the new
SAP system. Which include automatic memos; cost tracking; HR module
and several aspects such as occasional occurred errors in analytical
reporting;

Q-4 Reason of model change?

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Chart 3: SAP ERP has standardized business

INTERPRETATION:
From the above graph we can conclude that out of 30 respondents
surveyed about 60% of the employees strongly agreed to it that SAP ERP
is a standardized process, while 30% of them agreed and 10% of them
neither agree nor disagree to it that in NTPC SAP ERP software has
standardized business process.
One Sample t-Test:
Null Hypothesis (HO): There is no significant difference between
calculated mean and hypothesized mean (1). In other words, we can say
that the respondents are strongly agreed that SAP ERP has standardized
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process.
i.e. Ho: x = = 1
Alternative Hypothesis (H1): There is significant difference between
calculated mean and hypothesized mean. In other words, In other words,
we can not say that the respondents are strongly agreed that SAP ERP
has standardized process.
i.e. H1: x , i.e. H1: x 1
Significance level: 0.05
Table 2: One-Sample Test for standardized business process
Test Value = 1
95%
Interval
Sig.(2standardized

T
df
4.014 29

tailed)
.000

Confidence
of

the

Mean

Difference
Difference Lower
.500
.25

Upper
.75

business
INTERPRETATION:
Here the test is performed at 95% confidence level i.e. the chance of
occurring type 1 error is 5% and the p-value comes out as 0.00 which is
lesser than 0.05, at the hypothesized mean value 1, it means that the
null hypothesis H0 is rejected and alternative hypothesis is accepted and
it can be said that there is significant difference between calculated mean
and hypothesized mean. So, we can say that respondents are agreed that
SAP ERP had standardized business process.
This level is not so strong but it is nearer to positive response.
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Q-5 On average, how often do you use SAP related with

your work:

INTERPRETATION:
The aim of the question was trying to find out the frequency of SAP usage
from diffident users groups of new SAP system in NTPC. the ranges of the
frequency sets were divided into five values base on time that responses
use SAP system in the work.
Chart 4 showed that the SAP usage frequencies in general. More
respondents used SAP in their works 2-5 hours a day , 2-5 hour a week

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or even all the time. And no one are using SAP once a week and once a
month in the organization.

Q-6 Reason of brand change?

Table 3 : optimum choice
Frequency
Yes 26
No
4
Total 30

Percent
86.7
13.3
100.0

Valid Percent Cumulative Percent

86.7
86.7
13.3
100.0
100.0

INTERPRETATION:
There are many selection ERP solution software or software packages in
the world, SAP is one ERP solution product produced by SAP company.
Many ERP suppliers have offered their ERP solution, SAP ERP business
suite was the final choice for NTPC. Based on that, it would be interesting
to know SAP users in NTPC opinions on this question.
Table result shows that 86.7% employees think that SAP is optimum
choice for the NTPC and 13.3% employees think that SAP is not optimum
choice for the NTPC.

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Frequency
Yes 26
No
4
Total 30

Percent
86.7
13.3
100.0

Valid Percent
86.7
13.3
100.0

Cumulative Percent
86.7
100.0

INTERPRETATION:
Here the result shows that 86.7% of the employees think that SAP ERP
maintain transparency and control of the organization of the NTPC and
13.3% employees think that SAP is not maintain that transparency and
control. Because of the lack of knowledge of employees they are having
only limited knowledge of their field.
The above result show that after the implementation of the SAP ERP
26.7% of the employees believe that believe that the overall efficiency of
the organization had increase above 60%. While 60% of them said that
the efficiency level increased between 30%-60% and the rest 13.3% of
them said that the overall efficiency level has increased below 30%. So
from that we can say that most of the respondents agreed to that the
overall efficiency level increased between 30%-60%

user friendly
Frequency Percent
yes
18
60.0
no
12
40.0
Total
30
100.0

Valid Percent
Cumulative Percent
60.0
60.0
40.0
100.0
100.0

Table 9 : SAP ERP system and processes are user friendly

INTERPRETATION:

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Here 60 % respondent says that SAP ERP system and processes are

user friendly but 40 % respondent says that SAP ERP system and
processes are user friendly . So we can say that the employees
do not have the proper knowledge of using the software.

Q-21 & Q-1 involved * attend any training Crosstabulation

Table 11: involved * attend any training Cross tabulation
Count

involved
Total

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before implementation
after implementation

attend any training

yes
No
4
7
1
18
5
25

Total
11
19
30

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CHART 14: INVOLVED AND ATTEND ANY TRAINING COURSE.

INTERPRETATION:
Here before implementation of SAP 7 respondent says that they have not
taken any training and 4 respondents says they have taken training and
after implementation of the SAP

Q-22 What is your current feeling do you think you need

new or refreshing training courses in the use of SAP?

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CHART 15: CURRENT FEELING FOR NEED NEW TRAINING

INTERPRETATION:
Here there is 93.3% of respondent says that they want new and
refreshing training courses in the use of SAP and only 6.7% respondent
says that there is no need for new or refreshing training courses in the
use of SAP thus according to the result we should provide new and
refreshing training courses in the use of SAP to motivate our respondent.
There were many comment were received on this subject to explain the
reasons why the new or refreshing courses needed. In general , these
topics were from many different aspect: some of the respondents claimed
that they needed new SAP training course, because there were not
repeating courses frequently provided so that there was lack of
opportunity to participating in these courses or specification SAP courses
related with work in practice; and some respondent would like to have
advanced SAP training course in order to have a better using of SAP
system.
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Q-23 which are the most suitable and acceptable training

platforms for you at moment?

CHART 16: TYPE OF TRAINING

INTERPRETATION:
Here the result shows that 56.7 % respondent wants to seek physical
attention to lecture .it considered as very traditional way of study ,as
scientifically approved that it was the most efficient and effective way to
study. and 26.7% respondent says that they want all type of training as
(physical attention to lecture, virtual, self study and E-learning) and the
least percentage that is 3.3% respondent says that they like self study
type of training.

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Q-1 & Q-2 involved * improved any area Cross tabulation

Table 12: involved * improved any area Cross tabulation
Count

Involved
Total

before implementation
after implementation

improved any area

Yes
no
4
7
4
15
8
22

Total
11
19
30

Char 17: involved * improved any area Cross tabulation

INTERPRETATION:

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From the cross tabulation result shows that employees who previously
use to work without SAP system does not find any change even after
implementation of SAP. There are in all 7 employees who think this.

Q-8 & Q-10 reduce time & faster service * chance of error
Cross tabulation
Null Hypothesis (Ho): There is no significant association between reduce
time & faster service and chance of error i.e.: x =
Alternative Hypothesis (H1): There is significant difference between
reduce time & faster service and chance of error
Table 13: reduce time & faster service * chance of error Cross tabulation
Count

reduce time & faster service

Total

100%
75%
50%

chance of error
Yes
no
9
1
14
1
5
0
28
2

Total
10
15
5
30

Table 14: Chi-Square Tests

Asymp.
Pearson Chi-Square
Likelihood Ratio
Linear-by-Linear Association
N of Valid Cases

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Value
.536a
.846
.487
30

Df
2
2
1

Sig.

(2-sided)
.765
.655
.485

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Handheld electronic device software - Product Management.

INTERPRETATION:
The Chi-square test is carried out at 95% confidence level (0.05
significance level). The Pearson Chi-square value comes out as 0.765,
which is greater than the significance level of 0.05, Null hypothesis
accepted and alternative hypothesis rejected it means there is a no
significant association between reduce time & chance of error.

4.3) DATA ANALYSIS OF PRIMARY DATA (CASE STUDY)

SUMMERY OF CASE STUDY:
5) FINDINGS

6) RECOMMENDATIONS

7) CONCLUSION
EPR system integrate supply chain management, customer relations
management, manufacturing function, warehouse management, human
resources, and financials functions in to one system. By using ERP
system, company gain more ability of improving productivity and
profitability. Numerous of companies have tried to adopt the ERP system
to operate their business processes. NTPC is one large organization that
applied the ERP system for improving the core competency.
The implementation of ERP system was not easy task to complete.
Especially for NTPC. The implementation process of the system was very
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complex and time consuming. Because of the good preparation and
efficiency of the investment of the ERP project. The organization
successfully replaced the older operation system with the new SAP ERP
system.
Managing and developing the new ERP system are the challenges to the
organization today. In order to reach the ultimate goal of the optimizing
the business benefits from its ERP system, there are still some change
needed.
NTPC really need more SAP training courses to offer all SAP users. The
result of the survey showed that most of the SAP users did not receive
enough training courses needed during and implantation of the new SAP
system, further on they are willing to take more training courses.

BIBLIOGRAPHY:
http://www/sap.com
http://www/NTPC.com
http://www/GSPC.com
http://www.pathfinder.com/@@gOwoNn
Magazine/1995/951002/managing.html
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http://www.aberdeen.com/research/comp/whtpaper/1998/sap1/
sap1.htm
http://www.cio.com/archive/enterprise/011598_erp_content.html
http://www.sap.com/solutions/business-suite/index.epx
http://www.sap-basis-abap.com/sapgeneral/sap-cost-benefitanalysis.htm
JOURNALS AND MAGAZINES
NTPC manuals
Employee Handbook
BOOKS
Sankar Chetan S., Rau Karl-Heinz Implementation strategies for SAP
R/3 in a multinational organization, E-Book
Anderson George W. Sams Teach Yourself SAP in 24 Hours, E-Book

QUSTIONNAIRE FOR SAP USERS IN NTPC

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I am Ashish Khandelwal,
Pursuing MBA from Institute of management Technology-Center for
Distance learning Surat city. As a part of our curriculum, I am working
on as research project A study of business process improvement after
implementation of SAP in NTPC
I seek your kind cooperation in this regard & request you to fill up the
questioner. This study is for academic purpose only. No information shall
be disclosed anywhere else.
The questionnaire is absolutely anonymous and contains only 24
questions.
Our testing suggests that survey will take approximately 5-10 minutes to
complete.
We do appreciate your time and support.
Name:

Working since (month & year):

Age:

Post:

JULY 2011
(P.T.O)

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A) Implementation

1) Were you involved in implementation process of SAP in NTPC?

o I was in my position before implementation began
o I was hired during the implementation
o I was hired after SAP implementation

2) Do you see any improved area currently in SAP, either in

software itself or functions related to it?
o If YES , please list main topic
1 _____________
2_____________
3_____________
o NO

3) What are the missing functions in your current SAP system?

o If YES , please list main topics
1______________
2______________
3______________
o NO
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4) Do you agree that SAP ERP has standardized business process?

Strongly Agree O O O O O Strongly Disagree

(P.T.O)

B) SAP in NTPC today and tomorrow

5) On average , how often do you use SAP related with your work:
o Once a month
o Once a week
o 2-5 hours a week
o 2-5 hours a day
o All the time
o Other ____________
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6) Do you think SAP is optimal choice for the NTPC?

o YES
o NO

7)

If you could make the decision today , would you continue

using SAP?
o

YES

o If NO, what are the main reason ,select all that apply:
Not suitable for our needs
Technical issues
Data issues
Quality of the software
Lack of understanding of the softwares capabilities
Conflict with other system
Inadequate training
Customizing
Other_____________

(P.T.O)
C) Service through SAP ERP effectiveness

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8) Do you think that SAP ERP has reduced time & provides faster
delivery of service?

Completely O O O O O Not at all

9) Do you think that Productivity has increase after the

introduction of SAP ERP?
o If YES
Below 30%
30%-60%
Above 60%
o NO

10)

Do you agree that Chances of error have been reduced with

the introduction of SAP ERP?

o YES
o NO

11)

Do you agree that SAP ERP is more helpful and convenient

then older system?

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12)

Strongly Agree O O O O O strongly Disagree

Do you think that SAP ERP has helped in taking quick

decisions?
o YES
o NO

(P.T.O)
13)

Do you agree that SAP ERP helps the organization to speed

up the transaction process?

14)

Completely O O O O O Not at all

Does SAP ERP maintain transparency and control of the

organization?
o Yes
o NO

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15)

Do you agree that SAP ERP has reduced work load of

employees?

16)

Strongly Agree O O O O O Strongly Disagree

Do you think that implementation of SAP had increased an

efficiency of the organization ?

o If YES,
Below 30%
30-60%
Above 60%
o NO
17)

Do you agree that SAP ERP services are available as & when

required?
o YES
o N0
(P.T.O)
18)

Do you agree that the employees of the organization have

quickly adapted to changing environment?

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Completely O O O O O Not at all

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19)

Do you think that SAP ERP system and processes are user

friendly?
o YES
o NO
20)

Do you think that there is a need of any expert needed to

train new employees?

o YES
o NO

D) Training

21)

Did

you

attend

any

training

course

during

the

implementation?
o If YES, please specify what king of training?___________
o NO

22)

What is your current feeling do you think you need new or

refreshing training courses in the use of SAP?

o If YES , please specify what kind of training ____________
o NO

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(P.O.T)
23)

Which are the most suitable and acceptable training

platforms for you at moment ?

o Physical attention to lectures
o Virtual training ( video conference)
o E- learning
o Self study ( material provided by SAP administration)
o Other___________

Give your idea to make organizations process more effective.

Specify your suggestions for improvement, if any:

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Thank you for your participation in our survey.

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