News and Research on CDC Corp. (CHINA)
Business Description
CDC Corporation provides enterprise software, online games, mobile services and applications, and Internet and media services. The company operates in North America, Europe, the Middle East, Africa, and the Asia Pacific region.
CDC SOFTWARE BUSINESS UNIT
The company's CDC Software is a provider of specialized enterprise software applications and complementary business services to customers in select industries. The company also offers various complementary business services, including information technology (IT), and outsourcing services, that span the lifecycle of its customers’ technology investments.
The company conducts its business through Enterprise Software Group, and Business Services Group.
Enterprise Software Group
The company, through its Enterprise Software Group, offers enterprise software applications that are designed to deliver industry-specific functionality.
CDC Software’s integrated suite of enterprise software applications help its customers through company-wide integration of business and technical information across multiple divisions and organizational boundaries, such as finance, general manufacturing, logistics, human resources, marketing, sales and customer service.
The company's principal enterprise software applications include: Enterprise and departmental solutions for process manufacturers in the food and beverage, consumer products, pharmaceutical and biotechnology, chemicals, metals and natural products industries. These solutions include enterprise resource planning (ERP), supply chain management (SCM), manufacturing operations management, customer relationship management (CRM), and enterprise performance management; and Vertical CRM applications for industries characterized by complex product offerings, business relationships and sales processes, such as the financial services, homebuilding and real estate, general manufacturing and healthcare industries.
Enterprise Software Applications and Services
CDC Software’s enterprise software applications and services include:
Enterprise Resource Planning (ERP): The company's ERP products help provide the control and visibility needed throughout a customer’s operations to improve profitability and fulfill customer demand. For companies that produce and package products through recipe and formula-based processes, its ERP solutions help process manufacturers manage manufacturing operations with dynamic forecasting and scheduling, formula-based production and yield management, quality control, inventory management, complex product costing, and streamlined regulatory compliance.
Supply Chain Management (SCM): The company’s SCM products enable process manufacturers to plan and forecast proactively, optimize production schedules for customer service, minimize inventory investments, and streamline distribution operations. The company also offers a set of SCM products for distribution companies that support demand-driven fulfillment in multi-company, multi-site, multi-channel environments, such as for retailers (grocery stores, specialty goods and direct merchant retailers), wholesalers (pharmaceutical and over-the-counter drug distributors) and consumer goods manufacturers.
Customer Relationship Management (CRM): The company’s CRM products help its customers establish and maintain profitable long-term business relationships with their customers by integrating information from the entire enterprise and increasing efficiencies with in the sales, marketing and service functions to create one unified business network connecting employees, partners and customers. The company’s products are configurable, enabling companies to adapt and integrate the application to fit their business processes.
Manufacturing Operations: The company’s manufacturing operations applications help companies optimize the efficiency and effectiveness of their factories. These applications are integrated with and complement its ERP and SCM products, and also fill the manufacturing operations void in ERP, SCM and manufacturing execution systems from its competitors. The company’s manufacturing operations applications combine finite factory scheduling with real-time performance management and business intelligence to enable continuous improvement, optimization of operational resources and change management for manufacturing operators, engineers, technicians and management personnel.
Human Resource Payroll (HRP): The company’s HRP solutions, which are offered in China, focus on automating processes to enable an organization to improve business results and increase workforce performance by leveraging technology and applications to manage and mobilize a unified, global workforce. The company’s HRP solutions streamline the human resource management process, increase work efficiency, and support strategic decision-making. The company’s customers are able to automate routine daily tasks such as payroll processing, attendance, and benefits tracking, giving them more time and information to implement strategies that align the workforce with their organization’s strategic goals.
Business Analytics (BA): The company’s BA applications help to empower organizations with convenient access to information, reporting and analysis capabilities, and budget and planning systems. These tools help to convert data collected and stored by the business into meaningful and multi-dimensional reports and analyses for use in decision-making. These applications are sold as complementary applications to its ERP, SCM, CRM and manufacturing operations solutions.
Professional Services:
The company’s Enterprise Software Group offers various professional services to customers that use its enterprise software applications. These services cover the range of business optimization requirements, including industry advisory services, business process improvement services, traditional implementation services, tuning/optimization services and outsourced hosting/application management services. It also offers client support and education services to the customers.
Industry Advisory Services: Industry advisory services involve working with clients to understand their business issues and to identify and document achievable technical solutions to provide tangible business improvements, often by identifying and implementing industry best practices as part of the clients’ processes. Utilizing professionals with specific industry expertise, the company offers independent analysis and advice to help customers plan, evaluate and select the processes necessary to form an effective business solution.
Business Process Improvement Services: Business process improvement services involve working with clients to design and document business processes that drive tangible business improvements. Its business consultants work with clients to produce an in-depth analysis of the client’s specific needs and prepare detailed plans that list the step-by-step procedures that would form a business process.
Software Implementation Services: Software implementation services seek to achieve timely and successful implementation of business systems usually involving one or more of the company’s software products. These services include evaluating and managing the client’s needs by supplying custom application systems, custom interfaces, data conversions and system conversions. Its consultants participate in a range of activities, including software design and development. In addition, it also provides implementation services focused on networking and database administration.
Tuning and Optimization Services: Tuning and optimization services focus on improving the coordination and operation of the company’s clients’ disparate business systems and the system provides all of the business information that clients require quickly and accurately. As part of these services, it assists clients in the integration of multiple software products across multiple existing systems.
Hosting and Application Management: Hosting and application management involves offering clients a range of managed IT services, including outsourcing, facilities management and hosting strategic business processes. Hosting and application management offers a practical alternative for organizations wanting to concentrate on core business activities rather than devote limited resources to IT matters. Specific services it offers include hosting enterprise software applications for clients on its servers, providing outsourced desktop and data management services, providing help desk support to a client’s employees, leasing and supporting IT assets such as computers and printers, and acting as a strategic source for certain segments of a client’s IT infrastructure (such as second level support beyond the help desk). It provides outsourced application development services to its clients, including designing, developing, testing and deploying custom software applications.
Business Services Group
The company, through its Business Services Group, offers IT and business services to help its customers optimize their business processes. Its IT and business service offerings include industry advisory, business process improvement, implementation and outsourced hosting and application management services. The company's IT and business services helps its customers protect and extend the value of those investments by offering them ways to improve their IT systems and business processes. The company assists its customers in implementing software and in fine-tuning their IT infrastructure, including processes, systems and personnel management.
CDC Software’s Business Services Group provides many of the same business optimization services offered by its Enterprise Software Group to customers that do not use its enterprise software applications. The Business Services Group assists customers to achieve the highest value for their IT expenditures by either providing its customers with value-added services. These services are offered on a regional basis in the United States and Australia.
Customers: CDC Software’s enterprise software customers operate in process-intensive industries, such as the food and beverage, pharmaceutical and biotechnology, chemicals, metals and natural products industries, and in other industries that are characterized by complex customer relationships, such as the financial services, homebuilding and real estate, general manufacturing and healthcare industries. Within the Business Services Group, the company targets ‘Fortune 1000’ and other companies doing business in the telecommunications, chemical, oil and gas, pharmaceutical, consumer product, utility, insurance, banking and finance, entertainment and IT sectors.
Sales: The company sells its products and services primarily in the United States and Western Europe. As of February 28, 2007, the company had approximately 20 distributors, principally located outside the United States that distributes its enterprise software products. In addition, the company sells add-on products, solutions and tools for the Microsoft Dynamics CRM platform both directly through an online store and through approximately 600 authorized reseller partners worldwide.
Franchise Partner Program: The company selects participating partners in geographies, including Eastern Europe, the Middle East, Latin America, India and China. The company considers approximately 600 authorized distribution partners of CRM add-on products, industry-specific CRM solutions and CRM development tools for Microsoft Dynamics CRM.
Competitors
Enterprise Software Group: The company's major competitors in each of its targeted vertical industries include:
For extended ERP and SCM in the food and beverages, consumer products, pharmaceutical and biotechnology, chemicals, metals and natural products industries: Epicor, Infor, Lawson, Manhattan Associates, Microsoft, Oracle, QAD, Sage, and SAP.
For vertical CRM in the financial services, homebuilding and real estate, general manufacturing, and healthcare industries: Made2Manage, Microsoft, NetSuite, Oracle, Sage, Salesforce.com, SalesLogix, and SAP.
For SCM in the distribution industries: i2, Infor, Logility, Manhattan Associates, Oracle and SAP.
For HRP: Oracle, SAP, Taleo and various local providers in the Greater China market, including Cityray Technology, BenQ Group, Kingdee International Software Group, Shanghai Kayang Information System, Strategy Software Systems, UFIDA Software and Vanguard Software.
Business Services Group: The company competes with firms that range from global IT consulting firms, such as Cambridge Technology Partners, Infosys, Syntel and Wipro, to IT services divisions of diversified technology companies, such as IBM Global Services.
CDC GAMES BUSINESS UNIT
The company's CDC Games business unit is the ‘free-to-play, pay for virtual merchandise’ business model for online games in China, and operates online games in China. CDC Games’ online game, Yulgang, was the free-to-play, pay-for-virtual merchandise online role playing game launched in China.
Products
CDC Games offers massive multiplayer online role playing games (MMORPGs) and massive multiplayer online games (MMOGs), which are online games that allow users to interact with one another in a virtual world by assuming ongoing roles or characters with different features. The interactive and group-oriented nature of these games along with the size of its user base contributes to retaining its users and attracting new users.
Games
Yulgang: Yulgang is a fantasy martial arts based MMORPG based upon a comic book series in Korea. Yulgang has reached approximately 348,000 peak concurrent users.
Travia: Travia is an online game developed by E-net Corporation in Korea. Travia has adopted a 3D engine. Travia also includes a game content and a service engine, which can support concurrent players.
Special Force: Special Force, which was developed by, and which it has licensed from, Dragonfly GF Co., Ltd., is a first person shooter online game that originated in Korea. The game allows players to create their own elite military units with customized weapons and equipment selected from those used by special forces from around the world. In June 2007, the company launched its open beta program for Special Force.
Game Licensing
The company entered into game license agreement with MGame Corporation for Yulgang. Additionally, in March 2007, the company entered into a game license agreement with MGame pursuant to which it received rights to distribute the simplified Chinese version of MGame’s MMORPG, Wind Forest Fire Mountain (WFFM), in the PRC (including Hong Kong and Macau).
Competitors
The company competes with four groups of competitors in China that include: online game operators in China, including Shanda Interactive Entertainment Limited (which operates Actoz Soft's ‘Legend of Mir 2), The9 Entertainment Limited (which operates Blizzard’s ‘World of Warcraft) and Guangzhou Optisp's (which operates Wemade's ‘Legend of Mir 3); major Internet portal operators in China, including publicly-listed companies such as NetEase (which operates ‘Westward Journey Online) and Sohu (which operates ‘Knight Online); overseas online game providers, including Enix Softstar, Inc. (which operates Crossgate) and Gamania (which operates Laghaim); and domestic online game developers in China, including Kingsoft (which has developed JX Online), Perfect World (which has developed Perfect World Online) and Zhengtu.
In addition, the company competes for users against various offline games, such as console games, arcade games and handheld games, as well as various other forms of traditional or other online entertainment.
China.com Business Unit
The company's China.com business unit provides mobile services and applications and direct marketing and Internet products and services. The China.com business unit comprises two segments, Mobile Services and Applications, and Internet and Media.
Mobile Services and Applications segment
The Mobile Services and Applications segment provides news and mobile applications services targeting the consumer market in China. The company offers wireless services including Short Message Service, or SMS, Multimedia Message Service, or MMS, Wireless Application Protocol, or WAP and Interactive Voice Response, or IVR. The company has established local direct connectivity with provincial mobile network operators in 31 provinces, which facilitates the marketing and promotional activities of its wireless services. The company’s mobile services and applications business is primarily operated through its Newpalm, Go2joy, Shenzhen KK and Timeheart subsidiaries, all of which are held through its subsidiary, China.com.
Products and Services
The company offers a suite of mobile data applications, including dating, chatting, entertainment, information-related content and community services to mobile subscribers in China utilizing SMS, MMS, WAP and IVR services.
Services: The company's mobile data application products are available through various services, including:
SMS: SMS is a communications protocol which allows users to access, download, and communicate information consisting of fairly simple and short text messages through mobile phones.
MMS: MMS uses General Packet Radio Service technology (GPRS technology). MMS transmits more data in a single message, enabling users to access and download color pictures, multi-tonal sounds and Flash files.
WAP: WAP is a set of communications protocols that standardizes the manner in which wireless devices (such as mobile phones) are used for Internet access. WAP allows users with WAP enabled handsets to browse content in a more user-friendly format on their mobile phones so that users can request and receive information in a manner similar to accessing information on Internet websites. WAP also uses GPRS technology, enabling users to access and download color pictures, multi-tonal sounds and Flash files.
IVR: IVR provides users with voice content, such as celebrity voice greetings and news information.
Products: The company's products available through the different services, include:
Mobile Dating: The company’s mobile dating services are subscription-based community services that provide dating and chatting platforms through which subscribers might meet and socialize, or arrange to meet in person, by sending wireless messages. Users can select a particular geographic location to meet friends and set criteria, including age, gender, hobbies and qualifications, for the friends they would like to meet. Some services combine a mobile platform with its Internet portals so that subscribers can conduct chat sessions with online subscribers or mobile subscribers. In addition, certain subscribers can record and upload video clips and/or photos onto online websites, which enhances the communication among its online and mobile subscribers.
Mobile subscribers can access mobile dating services through SMS, WAP and IVR.
Jokes: The company offers jokes on both a subscription and on-demand basis. Users can subscribe to a fixed number of jokes to be delivered each day, or they can order on a per-joke basis, which is delivered on demand. The company develops its daily jokes internally or selects jokes submitted by users.
Mobile subscribers can access jokes through SMS, MMS, WAP and IVR.
Mobile Games: The company offers mobile games to subscribers. For Java based mobile games, subscribers can download these games to their handsets and play them with their handsets repeatedly. The company offers these games through third party game developers. The company also offers interactive network games of various types that the company develops ourselves.
Mobile subscribers can access mobile games through SMS, WAP and IVR.
Information-Related Services: The company offers information, such as stock quotes, news and local weather conditions, and entertainment related products such as music and celebrity voice greetings to subscribers on a subscription and on-demand basis. Most of the information distributed from its mobile platform is aggregated from content partners.
Mobile subscribers can access information-related services through SMS, MMS, WAP and IVR.
Pictures and Ringtones: The company provides ringtone, picture and logo downloads through China.com’s portal and through a subscriber’s mobile handsets on a subscription and per download basis.
Mobile subscribers can access pictures and ringtones through SMS, MMS, WAP and (for ringtones) IVR.
Internet and Media segment
The Internet and Media segment is focused on online entertainment and Internet products and services that target users in China and Chinese communities worldwide via its portal network (www.china.com and www.hongkong.com). This segment also includes its Singapore-based travel trade publisher and organizer serving the travel and tourism industry in the Asia Pacific region. Internet and Media segment offers the following products and services.
Portal: The services and products of its portal include online advertisement, search, enterprise service and mail services.
Travel and Trade Services: TTG publishes literature for the travel industry and organizes industry events. It is Southeast Asia’s established information and access providers to the travel and tourism industry. TTG offers a range of travel and tourism media products, including publications, exhibitions, database management and Internet products. TTG also offers integrated marketing solutions and a platform for customers to showcase their products and services in the travel and tourism industry. TTG sells its products and provides services directly to its customers, such as travel associations and government agencies.
Internet Video: In November 2006, the company announced that China.com launched a new service, v.china.com, which allows people to watch video clips from that site.
Sales: The company's China.com business unit is focused on enhancing its relationships with China Mobile, China Unicom, China Telecom and China Netcom, and launching promotions both through its portals and the general media.
Competitors
The company’s China.com business unit competitors include: Sina Corporation, Sohu.com, Inc., NetEase.com Inc., Tom Online, Inc., Tencent.com Technology Limited, Linktone, Ltd., Mtone Wireless Corporation, KongZhong Corp., and Hurray! Holding Co., Ltd. The company's portal business competitors include Chinese and/or English language based Web search and retrieval companies, including AltaVista Co., Apple Daily, ChinaByte, FindWhat.com, HotBot, HotWired Ventures, Lycos, Inc., Mingpao.com, MSN, Netease.com, Inc., Netvigator.com, Overture Services, Inc. (acquired by Yahoo!, Inc.), Shanghai Online, Sina Corporation, Sohu.com, Inc., Tom Online, Inc., and Yahoo!, Inc. The company competes from Internet service providers, Web site operators and providers of Web browser software, including Microsoft Corporation or Netscape Communications Corporation.
Acquisitions
Enterprise Software Group
In February 2006, the company acquired Assets of JRG Software, Inc., a supply chain solutions for planning and scheduling, delivered as Software as a Service (SaaS).
In April 2006, the company acquired c360 Solutions, Inc., an add-on products, solutions and tools for the Microsoft Dynamics CRM platform.
In October 2006, the company acquired MVI Holdings Limited, real-time performance management solutions for process manufacturers.
In December 2006, the company acquired Vis.align, Inc., an enterprise solutions and IT services provider based in Pennsylvania.
In February 2007, the company acquired Respond Group Limited, an enterprise class complaints, feedback and customer service solutions.
In April 2007, the company acquired Saratoga Systems, an enterprise CRM and wireless CRM applications.
Business Services Group
In February 2006, the company acquired Horizon Companies, Inc. (51%), an outsourced IT support and consulting services provider based in India, Canada and New Jersey.
In June 2006, the company acquired DB Professionals, Inc., an outsourced IT support and consulting services provider based in Illinois.
In June 2006, the company acquired OST International Corporation, an outsourced IT support and consulting services provider based in Oregon.
In May 2007, the company acquired Vectra Corporation (majority interest), an information security consulting services, managed services and enterprise security solutions.
Online Games
In March 2006, the company acquired Equity Pacific Limited (holds Beijing 17Game Network Technology Co., Ltd.), a massive multiplayer online role-playing games (MMORPG) provider in the China market.
In January 2007, the company acquired Gorilla Banana Entertainment Corp., an independent online games development company in South Korea (minority equity investment and distribution rights).
In March 2007, the company acquired Auran Holdings Pty, Ltd., develops online games in Australia.
In March 2007, the company acquired MGame Corporation, develops online games in South Korea.
In June 2007, the company acquired Guangzhou Optic Communications Co., Ltd., an online games company in the PRC.
Mobile Services
In November 2006, the company acquired Timeheart Science Technology Limited, provides MVAS products through personal digital assistants (PDAs), wireless application protocol (WAP), multimedia services (MMS), interactive voice response (IVR) and media stream, in China.
History
The company was founded in 1997. It was formerly known as China Information Infrastructure Limited and changed its name to chinadotcom corporation in 2000. Further, the company changed its name to CDC Corporation in 2005.
