Interpretation of YTIL’s Thirteenth Five-year Plan——Operations Management
This year sees the beginning of the Thirteenth Five-year Plan. When we look back on the past at the new starting point, it can be seen that we have made steady progress and bold innovation in operations management closely around the Twelfth Five-year Strategic Plan, and realized a series of breakthroughs. First, we have further strengthened fundamental operations management and improved management efficiency continually by further building the internal governance, performance evaluation, safety emergency and business analysis systems; second, we have realized marked successes in the standardization of highway assets and property right management, and electromechanical management, and further improved specialized control level; third, we have kept improving the total cost control system featuring source and process control, and outcome evaluation, and got an increasingly significant effect in cost control; fourth, we have implemented the authority and responsibility system, and defined the authority and responsibility boundaries between the head office and the project companies, further improving control efficiency; and fifth, fixed post and staff quota reform has been implemented successfully, providing basic support for regulating the staffing of the affiliated companies and building an efficient organization.
In light of the Company’s strategic plan of “expanding scale, strengthening management and improving efficiency” under the pattern of “specialized management of project companies under the control of the head office”, the Company’s assets will attain RMB33.968 billion, operating revenue RMB3.629 billion and total profit RMB1.409 billion by the end of the Thirteenth Five-year Plan period. The new round of development raises new requirements for the Company’s refined management – increasing revenue, reducing expenditure, and improving organizational operating efficiency. Therefore, we should focus on the following during the Thirteenth Five-year Plan period:
1. Deepening standardized and refined management to build core competence
Building a standardized and refined management system is a vast and complex systematic project, and an endless, continuous and dynamic task. During the Thirteenth Five-year Plan period, we will strengthen the building of the standardized toll collection management and safety management systems to take operations management to a new level while further deepening the standardization of highway assets and property right management, and electromechanical management.
In the standardization of toll collection operations, we will strengthen the management of toll collection terminals, redefine and regulate the toll collection scope and processes, and further refine all working standards into a normative and transparent standardized toll collection management system with clear processes in combination with the project companies’ internal control processes.
In the standardization of safety management, we will build a comprehensive safety management system based on the relevant industry requirements and our practical situation to realize full management coverage and define input indicators, lay down institutional requirements for all steps from formulation, breakdown, implementation to examination, ensure closed-loop management in target execution, keep improving safety management level, and establish a long-term safety management mechanism.
2. Strengthening IT building in business management to improve corporate operations management efficiency
With the rapid progress of the global IT revolution, “Internet+” and big data are now a national strategy, the Internet has become important transportation infrastructure, and transportation systems are increasingly intelligent, exerting far-reaching influence on the transportation industry. As a transportation infrastructure service provider, we must improve our service level and operating efficiency through business management IT building, and give play to the leading and supporting role of IT building.
First, build the basic operations database by strengthening top-level IT design on the basis of the outcomes of standardized and refined management to establish business management IT systems supported by big data gradually; second, make overall advancement based on interconnections, and pay attention to the exchange and sharing of operating data and information resources among departments, and between the head office and the affiliated companies to realize the overall benefits of IT building; and third, give play to practical effects through demand orientation, track industry development trends closely, and promote the deep integration of business demand and IT; for example, for changes in operations management arising from new modes of toll payment based on Alipay, WeChat, etc., we should make an in-depth analysis, and conduct evaluation and trial application actively.
3. Making innovation breakthroughs to promote operations management upgrading
In light of the strategic plan under the pattern of “specialized management of project companies under the control of the head office”, we will strive for new innovation breakthroughs in operations management to promote management upgrading as a company with a national presence: First, we will continue to improve the expressway marketing pattern to attract vehicles actively; second, we will respond to the new situation of national ETC networking actively, and crack down on toll evasion acts more severely by both administrative and technical means to increase income; third, we will promote the application of new technologies and equipment to operations management on the basis of “gradual coverage through pilot implementation”; and fourth, we will seek substantial breakthroughs in business model and structural innovation through innovation projects.
From the new starting point in the new normal and the new stage, we will implement all operations management tasks carefully, and keep optimizing the operations management system closely around the core concept of “stable development” and under the strategic theme of “expanding scale, strengthening management and improving efficiency” in order to secure fundamental support for sustainable business development.