Fixed Assets System ~Big Wing Presents

Flexible Asset-Management with cost savings

Latest updated: 05.24.2002

Executive Summary, Company Background

Report Outline 

1.    Project Scope  2.    Project plan  3.    System Objectives   4.    Input forms

5.    Activities undertaken  6.   Output forms  7.     Interfaces

8.    Constraints    10.   Benefits and key functionality

11.    References

Executive Summary

Old Asset Management

Manually Asset management is currently used by PCCW.

Tracking fixed assets and maintaining an accurate database to figure depreciation can be a huge and costly endeavor without the right tools. But ignoring this area can be even more costly. Manual task that takes a number of people and a lot of time - may still not come out accurately. Outdated records would lead to enormous decision making.

Reevaluating a company's fixed assets is a key part of any merger, acquistion or other corporate restructuring. As companies are consolidated, spun off or downsized, management must adjust fixed assets to current market value, which then becomes the new basis for depreciation. "Too often they fail to do it right," says Rick Swarts, president of Paragon Systems.

The primary focus of our proposed  fixed asset system was to build capabilities and infrastructure to support a changing economy, and to create a strong foundation for efficiency in the use of fixed assets.

The strategy included a visionary programme of initiatives that were designed to create an automatic environment for the competitive industry to thrive by encouraging businesses and to exploit opportunities, in this new information economy. The objective is to develop PCCW into one of the most competitive company in the globally connected world.

Next dimenson of asset management brings huge cost saving

Next Dimenson is a full-function fixed asset system that gives the power it needs to handle PCCW's demanding asset management load. It allows entry of an unlimited number of assets, has an open timeline, and offeres a full suite of standard reports (e.g. Ad Hoc reports). One of the benefits of the proposed system would finally free up financial staff for higher-level work.

Company Background

Figure. 1 Corporate Chart

PCCW is one of Asia's leading integrated communications companies.

As the incumbent telecommunications provider in Hong Kong, PCCW is committed to building shareholder value by leveraging synergies among its core businesses and partners to deliver total solutions to corporate and consumer customers throughout Asia, particularly in greater China. PCCW provides a spectrum of communications services from local telephony to broadband services to business solutions and more.

Globally, PCCW employs more than 13,500 staff, and provides services in the following key areas:

Telecommunications Services

Telecommunications Services (TSS) is the major provider of telecommunications services within Hong Kong. Utilizing Hong Kong’s most extensive digital and broadband-enabled network, TSS provides a wide range of services including local telephony, local data, international telecommunications, call centers, business consulting and customer premises equipment sales.

Supporting Telecommunications Services are:

Business eSolutions - a leading solutions provider in greater China; this unit targets four key industries: finance, enterprise; telecommunications and public sector, providing end-to-end solutions from systems integration, application development, network integration, outsourcing and application management services, and enterprise applications to support enterprise customer requirements across Asia. U

In early 2002, a PCCW-led international consortium won a HK$163 million contract from the Hong Kong government to provide hardware, software and services for the city's new computer-chip ID card.

Internet Data Centers - PCCW has interests in a network of greater China Internet data centers through facilities located in Hong Kong, Beijing, Shanghai and Taiwan. These data centers are focused on providing a secure and reliable environment in managed hosting services, security services, network and facilities management and monitoring.

PCCW operates one of Hong Kong's largest data center facilities under the Powerb@se brand, which in 2001 had approximately 800 customers, including major corporate and public sector institutions requiring mission-critical solutions. Powerb@se, a premium-service brand, has earned a Sun Microsystems' SunTone(SM) Certification for service quality.

Internet Services - PCCW is Hong Kong's leading Internet service provider, with a consumer Internet access subscriber base of 631,000 as of December 31, 2001. PCCW's Internet Services in Hong Kong are offered through its award-winning NETVIGATOR brand, whose consumer Internet broadband customer base reached 311,000 as of December 31, 2001, up from 194,000 at year-end 2000.

PCCW Infrastructure

PCCW Infrastructure manages an infrastructure and property portfolio in Hong Kong and China. It is focused on increasing financial returns from PCCW's property assets while reducing the real estate costs of the PCCW Group business units. PCCW Infrastructure also engages in developments, such as the Cyberport project.

Project Scope

Objectives

	To develop a more flexible fixed assets system for Conversion
	To Illustrate the key benefits of implementing the new system

Activities

	Analysis of the current fixed assets system by inquiry of management
	Conceptual Design of the processes and activities
	Physical Design of the key activities
	Provide training to operational personnel
	Develop a prototype for acceptance testing
	Perform post-implementation review
	Prepare conversion for the new system
	Implementation of the new system

Boundaries

The system may not function properly or meet pre-determined aims if it is implemented prior to conversion of Account Payable module and General Ledger module.

Project Plan

Project team

Time Line

Key Deliverables

	Analysis Stage - Analysis report of the current system
	Development Stage 1 - Outline Documentation for the proposed system
	Development Stage 2 - Sample input, process and output forms
	Development Stage 3 - Prototype and acceptance report
	Development Stage 4 - Review Log
	Development Final Stage - Error report and listings

Milestones

Risk and management issues

Major Project Risk

	Strategic, such as doing the wrong things
	Operating, such as doing the right things but in the wrong way
	Financial, such as having financial resources lost, wasted
	Information, such as irrelevant information gathered or limitation of scope of current assets system

Risk Management

Fig.2    Risk Management approach

System Objectives

	Gain control over its asset management and depreciation accounting
	Fully utilize bar coding to decrease labor costs
	Fixing custodial responsibility
	Making sure the asset is correctly serviced and maintained

Input Forms

Fig.3    Input Form for Fixed Assets (Upper: Requisition form, Below: Assets Card)

Activities Undertaken

Output Forms

Fig.4    Assets inquiry

Fig.5    Fixed Assets Journal

Interfaces

Constraints

Security requirement - a possibility that the hackers can easily across the system.

Retrieval - Cannot be retrieved properly when the reports are printing.

Benefits and Key Functionality

Tangible Benefits

	Cost-saving by automatic assets management process
	Capabilities to manage an unlimited number of assets
	Extensive online help system
	Impressive reporting capabilities
	Freeing financial personnel to do more important work than simply shuffle numbers around for reports.

Intangible Benefits

	Keeping track of portable assets
	Speedy Fixed assets management
	Scheduling and monitoring asset maintenance
	Establishing help desks for managing problems with assets
	Linking lease, insurance, license and other contractual obligations to assets
	Budgeting, acquiring, integrating and delivering assets for large-scale projects
	Managing multicurrency assets and consolidating asset valuation enterprisewide

Reference

Marshall B.Romney, Paul John Steinbart "Accounting Information Systems 8th Edition": 269 - 273

Hogg, Joseph D, "How much does an Error cost - and How much does it cost to prevent it?": 67 - 69

Willis, Alan, and William Bradshaw, "Risky Business" CA Magazine (August 1998): 37

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