Global multinational companies (MNCs) have invested US$480 billion in Chinese businesses and operations since 1991. Much of that investment has been directed at manufacturing operations. More recently, investment in the services sector has risen. Managing IT investment issues is often quite similar for MNCs, even across different sectors: part of developing a Chinese operation strategy is the establishment of an IT strategy, including making key IT sourcing decisions, such as how much to build versus how much to borrow or buy. Acquisitions and joint ventures require IT integration. Whether building a greenfield operation or engaging in a joint venture, many business capabilities such as supply chain planning, customer relationship management, and sales force management have to be built from scratch, enabled by new IT applications. Of course, once the operations are set up, the Chinese business units must join global application rollout programs. Finally, widespread skill shortages, especially in management, are causing some organisations to introduce learning and skill development strategies for their staff. High Performance IT CIO Checklist for Multinational Corporations in China - Focus on IT security issues.
- Make plans for integration, especially when acquisitions or joint ventures are involved.
- Devise a strategy to develop and retain local managerial talent for the long term.
- Pay attention to government policies affecting IT.
Read the full Accenture report on China's IT investment agenda. [PDF, 1MB]
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