China Mobile Limited
Annual Report 2012
26
Business Review
Innovation and Development
The Group endeavored to explore innovation in management whilst pursuing network and technological innovation. Through
centralized management, professional operations, market-oriented mechanisms, lean organizational structure and
standardized processes, the Group continuously improved the quality of business management.
The Group’s professional operations achieved early success. China Mobile Group Device Company Limited (formerly known
as China Mobile Group Terminal Company Limited) converged partners in the supply chain to promote diversity of terminal
models and product quality, and to streamline channel structure. Competitiveness and sales of products spruced up
significantly as a result. 2012 saw debut of 242 models of 3G terminals, of which 138 models were smartphones.
Mainstream models were launched at equitable schedule, quality and price as handsets of competing standards. China
Mobile International Limited made strides in establishing networks and platforms with late-mover advantages. International
bandwidth expanded by almost four fold within two years. Strengthening negotiations with international operators further
reduced the unit cost of international roaming settlement. Promotion of the RMB1/2/3 international roaming zone model
boosted voice traffic volume and customer perception. In 2012, China Mobile Group Finance Company Limited, China
Mobile Communications Corporation Government and Enterprise Service Company, and China Mobile M2M Company
Limited were incorporated. The Group has also been actively preparing for the establishment of a mobile Internet company
and a shared services center, gradually forming its professional operations system.
The Group further enhanced its centralized management. In 2012, the Group continued to drive the construction of
centralized data centers, call centers and a warehouse-style logistics system. Major logistics centers in the northern,
southwestern and northwestern regions have commenced operations. The scope of centralized procurement has expanded,
which further drove down procurement costs. Efforts were stepped up to promote centralization of IT support systems. The
Group pilot-launched an integrated client portal, with preliminary success in realizing a common access for Internet
customers. Centralized management highlighted the Group’s scale advantage which drove cost savings and efficiency
benefits.
To stimulate staff motivation, the Group established an internal talent management and incentive-based remuneration
mechanism which is in line with the open market. Organizational structure was optimized to simplify decision-making and
shorten response time. Standardizing the management system and operational management processes has effectively
enhanced the Group’s overall operational efficiency.