paper

Alipay-PMO development Yu Wang

Boston University

 Table of content

Abstract--------------------------------------------------------------------------------------3

Introduction---------------------------------------------------------------------------------3

Research methodology--------------------------------------------------------------------4

Strategic alignment------------------------------------------------------------------------5

Cost benefit analysis-----------------------------------------------------------------------6

Stakeholder Analysis----------------------------------------------------------------------8

Stakeholder matrix----------------------------------------------------------------------8

Stakeholder Communication plan-----------------------------------------------------8

Governance----------------------------------------------------------------------------------9

Lifecycle------------------------------------------------------------------------------------10

Recommendation-------------------------------------------------------------------------11

Conclusion----------------------------------------------------------------------------------12

Reference ----------------------------------------------------------------------------------14

Abstract

The paper addresses the restructuring of the Program Management Office at Alipay which is a platform which is a third-party payment plan which deals with making online payments within China under the Alibaba Group.  indeed, one of the greatest hindrances for project success is the lack of a sound project execution plan. Therefore, the PMO is designed to ensure that the project comes up and maintains the pertinent standards of project execution of a project within the organization (Dai & Wells, 2014). Through the PMO, the organization will get a connector between the different levels of the project based 0rganization (PBO) and take up the role of promoting the coordination between the individual groups within the organization while also making the networking stricture within the organization as smooth and dynamic as possible. The role of PMO in promoting knowledge sharing and information coordination within an organization is indispensable and important in the execution of Alipay and ensure that the project works for the good of the organization in terms of growth, market expansion, competitiveness and overall organizational integration of the PBO strives to attain its individual organizational goals (Dai & Wells, 2014). This paper in its entirety looks at the approach which the organization will put in place to ensure that the project is transformative enough and that it works within the confines of the PBO for the growth, development and increased the sustainability of the organization through the Alipay project.

Introduction

Alipay is the leading third-party payment program owned by Ant Financial Services, a subsidiary of China’s Alibaba. The platform serves over 600 million customers in the global market majority of who are the Chinese and tourist visiting China (Aleid, 2017). The attractive features of the platform such as user-friendliness and efficiency are the factors attract people to use it in making payments. The desire to maintain the brand promise is the factor that fuels constant redevelopment of the platform. In response to the opportunities to expand in the new markets and in improving the features of Alipay, Alibaba sponsored this program (Aleid, 2017). The program participants would research and develop new and innovative features to increase the service experience offered by the platform. Specifically, Alipay would offer solutions that encompass the underbanked and unbanked financial products. The company is also dedicated to developing an ecosystem with its business stakeholders within and beyond China. Besides, the company is committed to adding new solutions to Alipay to meet the unmet demands of the clients (Aleid, 2017). Therefore, this would help the company to maintain brand loyalty as well as capture new customers from the market.

3. Research purpose and methodology

Alipay PMO program illustrates the goals that the stakeholders aim to achieve. The purpose of this program is to capture new market across the globe and to improve the lifestyles experiences via the addition of the new features that would meet the unmet demands of customers (Creswell & Clark, 2017). In the process of the redevelopment of Alipay, the PMO program participant would employ mixed methodology as the research approach for this study. The rationale of used mixed methodology, as opposed to qualitative or quantitative methods, is because that the latter would incorporate the features and the advantages of both methods. Since both qualitative and quantitative have several shortcomings, it is prudent to combine both the methods to help in understanding the context of the data collected (Creswell & Clark, 2017). Besides, using the methods help in providing results that provide a broad perspective of the research problem which would help in deductive thinking. Combination of both methods would also help to overcome the personal biases of the scholar.

The researcher would rely on both secondary and primary sources in the collection of the data. The researcher used secondary sources to collect data about the markets (Creswell & Clark, 2017). For instance, the program team would interview the target stakeholders about their feelings, perception, views, and satisfaction about Alipay. The team would also inquire about the features that they would like to be incorporated into Alipay to enable the company to offer superior and magical experience. In the collection of the primary data, the team used interview, observation, and survey in which they would target a vast array of customers ranging from households, financial companies, and other companies. The rationale and importance of using the primary sources are that the team would acquire undistorted and first-hand information that would increase the credibility of the study. The secondary methods involved internet sources, books, and companies report (Creswell & Clark, 2017). Importantly, this helped the company to learn about the game plan of the similar companies operating in the market. In finding secondary data, the research used the peer-reviewed and scholarly data to increase the value of the findings.

After the data collection, the team analyzed the findings using the mathematical, computer, and statistical models (Creswell & Clark, 2017). The importance of using all these models is to reduce the complexity of the data analysis and add value to the conclusions made. The mathematical models include the percentage, ratio analysis, mean analysis, and rate of dispersion while the regression and correlation methods are the statistical models. Simulation is the computer that the researcher would use.

4. Program strategy alignment

The program aligns to the goals of the Alibaba by ensuring that the platform is aligned MIS and IT infrastructure is regularly updated and synchronized with the business needs of the company (Alibaba, 2018). The vision of our program is to upgrade Alipay, and its ecosystem to exceed the expectations of the customers and at the same time fulfill the long-term objectives of the company. We intend to transform customers into essential partners of the company by strengthening the bond and increase engagement (Alibaba, 2018). Alipay platform operates in a social-technical environment that is highly competitive. Unless the system responds to the changing dynamics such as changing lifestyles of people caused by changing technologies, the competitiveness of the platform will decline (Alibaba, 2018). In the process of the product development, the team used a balanced scorecard and benchmarks to find to ensure that the PMO aligns to the organization’s goals.

The programs aim at fulfilling the following goals:

Increase the acceptance of Alipay as the primary mode of online payment throughout the world, enhance customers’ experience, and improve the service delivery to customers

Improve the security of the customers by developing features that would combat online fraud perpetrated by the cybercriminals such as hackers by developing a security infrastructure on Alipay ecosystem

Meet the unmet demands of the customers such as integrating the non-bank and banking solutions in Alipay ecosystem

Gather business requirements and undertake options that would cater to more categories of customers

5. Cost/benefit

The control of online payment in China is different from how it is in other countries. For instance, China does not have the Western Standard or the Automated Clearing House which runs the direct deposits. In place of that, China has the China National Advanced Payment System which has to be done through the licensed Payment Service Providers (Nino, 2017). This is a costly affair for the companies which run this kind of payment system as time has to be spent in monitoring the activities and security of the transactions which are made. The PSPs in have different capacities as some are fast while others are slow. For the company to attain the benefit of fast payment and absolute reliability to its customers, the cost of investing in the strict regulations is unavoidable. However, Alipay already has agreement with government.  Wildau, G. (2018) wrote that “Alipay is poised to lose around $1billion in combined annual revenue to a new central bank requirement that third-party payment groups hold all customer funds in reserve.” Although it was kind of regulatory expense, but the future earning of Alipay will increase or remain consistently by government agreement.

The team identified several PMO challenges. The administrative function was one of the challenges identified. Importantly, the PMO scope should include the operations that would provide strategic and governance value to the company (Burke, 2014). In response to address such challenge, the team ensured that it implement responsible structures and methodologies of the performance management. Also, capacity development and implementation of integrated views of work plan were integral to the success of the program.

Another key challenge that the team identified was stakeholder buy-in. Therefore, it was essential for the team to articulate the program benefits regularly. On the same note, it is critical to implement such effort at levels of leadership to pave the way for the effective cooperation of the teams at all levels of the management (Burke, 2014). Also, it enables the team to accomplish goals and objectives. The next challenge that PMO experienced was the process flexibility. In retort, PMO addressed this by tailoring the needs to suit the organizational culture and structure (Burke, 2014). As a result, this helps PMO to recognize the enhancement and to tailor the process to guide the stakeholders in the process of the project implementation.

6. Stakeholder analysis

High

Manage Concerns Government Alibaba’s Managers Public Sponsors Standards oversight bodies Regulators	Fully Engage Business partners Media Businesses Sponsors
Monitor Customers such as Guests; tourists, households, businesses, and others	Provide Information Press Rights groups Developers Researchers

Low High

The team would face several risks to fulfill the expectations of the stakeholders. First, the lack of an organized strategy and clear objectives is a factor that would impede successful attainment of the stakeholders’ goals (Ji, 2017). In response to this risk, the team would use cloud computing to benefit from the aspects such as performance enhancement, agility, and reduction of the operating costs (Ji, 2017). Security issues during the product redevelopment resulting from the impartial migration of the Alipay ecosystem and leakage of data is a major threat that the team must handle. In the retort, the team would use data backup systems and comply with all the procedures in the redevelopment process to avoid compromising the integrity of the system. Another potential risk is the compatibility of the new tools and features with the existing Alipay’s ecosystem. For this risk, the team would test the new tools to before integration with the current system. Cost efficiency is also a risk because of the significant financial and time resources needed in the program redevelopment (Ji, 2017). However, the team would address this risk by lobbying for adequate resources to use in the program redevelopment. Last, the migration from one provider of cloud solutions to another is a challenge. In this case, the team would advise the team to stick with one cloud solutions provider.

7. Governance

The governance plan illustrated how the researcher structured the PMO to allow successful accomplishment of the vision. Under the integrated management process, the structure entails the people, technologies, and processes used in change implementation (Alie, 2015). The governance program was aimed at ensuring that the business aligns to the business strategy and to maintain the potential of the company to deliver the promised value. Besides, the governance plan provides oversight and control used in the program implementation. The plan also helps the managers to assess the current status of the program to adjust where necessary. The following structure illustrates the governance program used: 

The program governance structure illustrated above shows the relationship between various stakeholders and their roles and responsibilities in the PMO (Alie, 2015). A neatly organized structure also highlights the contribution of multiple individuals, authority, and levels of the decision making. Besides, the model reveals all the oversight functions among various stakeholders of the organization. PMO has several critical responsibilities to the successful accomplishment of a program (Alie, 2015). Development of a PMO that is allowed in all areas of an organization is one of the essential roles of the stakeholders. Next part involves the establishment of the best practices and processes across the corporate departments. The other role involves helping the team to strategically plan including budgeting for the long-term goals of an organization. Setting policies and functions for the project management across all departments of the company is another crucial role (Alie, 2015). Besides, PMO help to set a homogenous culture for approaching projects in the organizations. PMO also help to manage the resources prudently.

8. Lifecycle

Tracking the activities of the programs is essential to allow successful attainment of the goals and objectives. The program involved five major phases starting with the project initiation. After all the preliminary operations, the team would initiate the project which improves the efficiency of the participants, improves processes, as well as improve collaboration at all levels of the lifecycle (Esposito, 2015). During this stage, the program manager develops a scope detailing how the program would proceed. Prioritizing the project, budgeting, scheduling, and determination of the resources needed. The next step involves the program planning. At this stage, the team is informed of their roles (Esposito, 2015). This helps in bringing about critical information such as checking the status of the project as well as issues.

The next step involves the launch of the program. At this stage, the project statuses in maintaining the organization of the workflow (Esposito, 2015). A program manager delegates the tasks efficiently and addressing the issues in the team. During this stage, a program manager was required to adjust the schedules for keeping the program on track. In the next step, a program undergoes performance evaluation to ensure that all the project deliverables move as per the plans of the company (Esposito, 2015). Having relevant information enable the stakeholders in making effective decisions. The last step involves project closing which occurs after the project implementation.

9. Recommendation

Ant Financial Services: the owners of Alipay must conduct a gap analysis to identify the actual performance and the potential performance of the organization. Ant Financial Services should not rush to use the commonly used software in the market but should take time to implement the software that suits the business needs and objectives (Al Hraki & Benny, 2015). The following are the recommendations made that would help to support the successful accomplishment of the goals and objectives of the business:

Integration: Supporting the program integration with the business operations of Ant Financial Service is essential. A critical requirement for a successful redevelopment of Alipay platform is to view the costs, schedules, and resources holistically as per the corporate objectives (Al Hraki & Benny, 2015). On the same note, the stakeholders should prioritize on this aspect.

Communication: Another integral aspect is to facilitate the efficient flow of the information from one party to another. Eliminating communication barriers would reduce information asymmetry (Al Hraki & Benny, 2015). The communication gap is impeding then sponsors ability in the effective performance of the goals and objectives of a program.

Flexibility: Embracing flexibility is necessary because of the ever-changing environment in the process of the program implementation. A company should allocate some resources to cater for the program changes (Al Hraki & Benny, 2015). For instance, allowing flexibility in the project and budgeting for the same would enable incorporating new product features that the team comes across during the context of the project.

Simplification: Simplification would help to reduce the business burden which allows the team to focus on the main tasks of the program. Also, this reduces the costs of managing activities and deliverables.

Consistency: Supporting the standards that are consistent with the company business culture and missions (Al Hraki & Benny, 2015). Consistent evolves from being consistent in the decision-making and following the laid-out procedures and processes.

High-level dashboards: Having a holistic view in the selection, management, and project optimization using a consolidated panel provides the managers with concise information on the program helping them to make a strategic decision.

10. Conclusion

The digital platforms are increasingly revolutionizing how people consume and pay for the goods and services. The various changes in the social-technical environment causes lifestyle changes among population. As a result, this causes changes in the tastes and preferences of the consumers. Therefore, companies must always change their game plan including the redevelopment of their product and service offering. Among the products that undergo regular changes are digital platforms such as Alipay, Tobaobao, PayPal, and others. In such regard, it is prudent for the Alipay owners to redesign its platform to suit the dynamics in the business environment. According to the field study, the team found out that Alipay and its competitors are used in various nuanced relational context and sharing economies because of the partnership with multiple stakeholders and ability to offer personalized solutions. Besides, the team discovered the possibility of adding new features to the platform to capture the unmet needs of the customers. For instance, combining payment media experiences would allow users to customize experiences; hence satisfying customers beyond their imaginations. In that view, the team proposed multiple options to improve the superiority of Alipay.

References

Al Hraki, T. & Benny, S. (2015). How to choose & implement the right PMO tool to maximize business value. Paper presented at PMI® Global Congress 2015—EMEA, London, England. Newtown Square, PA: Project Management Institute.

Aleid, W. (2017). The Role of Alipay in Commerce in Cina(Master's thesis).

Alibaba. (2018). Creating an Ecosystem for Redevelopment with Alibaba Cloud DataWorks. Retrieved from https://www.alibabacloud.com/blog/creating-an-ecosystem-for-redevelopment-with-alibaba-cloud-dataworks_593779

Alie, S. S. (2015). Project governance: #1 critical success factor. Paper presented at PMI® Global Congress 2015—North America, Orlando, FL. Newtown Square, PA: Project Management Institute.

Burke, R. (2014). Project management: planning and control techniques. New Jersey, USA.

Creswell, J. W., & Clark, V. L. P. (2017). Designing and conducting mixed methods research. Sage publications.

Esposito, E. (2015). Demystifying the 5 Phases of Project Management. Smartsheet Inc.

Ji, X. (2017). Red Packets in the Real and Virtual Worlds. How Multi-Function WeChat Influences Chinese Virtual Relationships.

Nino, D. (2017, November 29). The Unique Challenges And Opportunities Of Handling Payments In China . Retrieved from https://www.forbes.com/sites/outofasia/2017/09/28/the-unique-challenges-and-opportunities-of-handling-payments-in-china/#5f313c0a6c9e

Wildau, G. (2018, July 15). Tencent and Alipay set to lose $1bn in revenue from payment rules. Retrieved from https://www.ft.com/content/b472f73c-859e-11e8-96dd-fa565ec55929

Dai, C. X., & Wells, W. G. (2014). An exploration of project management office features and their relationship to project performance. International Journal of Project Management, 22(7), 523-532.