Tuesday, September 14, 2010

Deconstruction Huawei: high investment by foreign forces

Technical articles

After the entrants as Huawei, to his position at the technical level is the pragmatism of the road, which has been stressed for the market, R & D, develop new technologies, complemented by low prices and good service, grab global market share.

Technical inputs up to

Huawei eyes, there are three departments of the company's largest contribution to: market research, development and human resources. Although the company's president Ren Zhengfei now focus only on the determination of grand strategy, but the company three large sectors of the R & D still Zhengfei head.

Huawei introduced an insider from the company's inception, Ren Zhengfei have invested in technology companies have requested. Huawei was founded early, Ren Zhengfei would require companies to sales agents of foreign products the profits are invested in the technology development on a small switch. With the expansion of profit margins. Profits to invest in the company again upgraded product research and development, the cycle, gradually expanding.

According to data provided by Huawei brand center, Huawei R & D costs per year not less than 10% of sales, and insisted on 10% of R & D for the pre-research, new technology, new areas of continuous research and tracking.

This statistical data with third parties the same. In the recently announced near 23rd list of top hundred electronic enterprises, Huawei R & D investment in China, the amount of ranking first. 2008 Love for the R & D reached 10 billion yuan, the proportion of its revenue more than 8%. So far, Huawei has won 6 consecutive years, the number of patent applications, the first Chinese companies, account for 3 consecutive years, the number of China's invention patent applications first. While rival Huawei, ZTE R & D investment revenue as high as 9.8%, but still lower than the total amount of Huawei.

Huawei attaches great importance to IPR protection technical innovation. According to Huawei official data, as of the end of 2008, Huawei has accumulated 35,773 patents, including patent applications, 26,005 Chinese, 5,446 international patent applications, foreign patent applications for 4322. In the LTE field, Huawei basic core patents accounted for 10%, ranking third.

1 Shenzhen communications manufacturers believe that Huawei's generous early R & D investment is rising out of Zhengfei their inherent requirement of the company. Since then, Cisco's intellectual property rights on the prosecution to Huawei Ren Zhengfei more convinced of the necessity of R & D investment.

43% of Huawei staff adhere to research and development investment. Huawei has been for several years at an annual rate of recruitment of 34 thousand graduates of famous universities, are still thousands of people each year rate of recruitment of excellent technical personnel at home and abroad. Huawei R & D personnel in recent years to reach 4 million.

Leveraging padded

Compared with other communications giant, Huawei is not a long-term technology accumulation. But Huawei is found in the technical research and development for its own way.

Huawei has chosen to do non-core ASIC development and board-level development of two applied technology development. Huawei's R & D is done based ASIC development. ASIC technical difficulty of small and large quantities. ASIC technology development useful role in the company reduce costs. The main development model is designed by Huawei own several chips, and then look for China Taiwan, Hong Kong, China or the United States chip maker professional processing. After processing, the chip can be used instead to buy ready-made chips, saving a lot of cost. In 2004, Huawei's ASIC design department, independent from Huawei, set up the "Hisilicon" the new company. Hisilicon is a professional design company, to include outside companies, including Huawei Technologies to provide chip design. Huawei's R & D in the board-level development idea is to use cheap labor of domestic R & D, spend a lot of manpower to reduce the cost of entire board. For example, Huawei has spent more than a dozen individuals to study the lower the cost of the switch the user board.

Huawei is technically not the same one with domestic enterprises where technology development is to do with external forces. The early stage of development in Huawei Ren Zhengfei once that independent development is the only R & D should take the path. The transformation process after the introduction of IBM, IBM's consultants have found a problem, Huawei R & D to do everything on their own, this result is inefficient companies, Huawei is therefore proposed to shorten their product time to market.

Ren Zhengfei competitors in summing up the experience, so that Huawei Technologies R & D to go down this road: The core technology is their own development, but a number of relevant and forward-looking technology to do domestic universities or laboratories. This is to ensure the master core technologies of Huawei, but also to protect its R & D efficiency. Huawei Technologies and Tsinghua University Department of Radio Engineering, China University of Technology, University of Electronic Science and Technology, Southeast University and other universities have established long-term technology partnership. This large-scale cooperation with domestic universities, not only solved the front-end technology of Huawei in the problems, but also trained a large number of Huawei's high-end technical talents.

In overseas, Huawei has also established a cross-border integration of employees through the establishment of the laboratory.

Overseas research is of great significance to Huawei, Huawei's overseas operations not only to provide support and services but also means that Huawei can with other international IT giants, like 24 hours to establish a global research system.

Huawei: the success of a balanced development model

Recently, Huawei has once again aroused the concern of the industry in China, many enterprises have Huawei as a benchmark study, and some even proposed to be certain areas of Huawei. Cause the background of this phenomenon is that the financial crisis, Huawei not only has maintained a good momentum of growth, and its pace of internationalization has been a firm go far, the 2008 International revenue accounted for 75% of its sales revenue; and the current international patent The number of applications beyond Toyota and Philips, the world's top business first; in the "Business Week" magazine out of the top ten most influential companies, Huawei is the only Ranking enterprise.

The author believes that Huawei as a Chinese, non-listed, private, high technology enterprise, is a "phenomenon", for Chinese enterprises, their imitation and reference value is not great, but hidden behind the success of the phenomenon in Huawei operation and management of the philosophy and concept, is worth thinking of Chinese enterprises and entrepreneurs.

Huawei Ren Zhengfei, president of management can be attributed to the ideological balance. Since 2001, the sum of Huawei Ren Zhengfei "Top Ten Management Guidelines", regardless of how internal and external environment changes, "the balanced development" has been placed first. Can speak, Ren Zhengfei core of the idea of management is to balance, balance is the highest management philosophy. Zhengfei claimed to be a "gray" who, in his view, between the gray between black and white is very difficult to grasp, that is, the level of leadership and mentor.

"Equilibrium is the most effective form of productive forces", "continue to adhere to a balanced development of thinking and to push forward the reform and improvement work. Equalizer is the most effective form of productive forces. Through persistent improvement, and continuously enhance organizational vitality, and improving the overall competitiveness and efficiency continue to increase per capita ", which is a long stick to the core values of Huawei.

Huawei has 20 years of growth and development path is built dynamically to achieve success and benefits, operation and management based on the balance, through continuous improvement, improvement and improvement, Huawei continued to strengthen and enhance the management capacity, and then enable enterprises to embark on a healthy development. Huawei's success, once again the case of Chinese-style shows, the real balance of management is the core competitiveness.

In 2005, along with the acceleration of the internationalization of Huawei, Huawei to re-sort their mission vision and development strategy. Its strategic positioning at: 1. For the customer service is the only reason Huawei exists, the customer demand is the driving force behind the development of Huawei; 2. Quality, good service, low operating costs, the priority to meet customer needs, enhance customer competitiveness and profitability ; 3. sustainable management of change process to achieve efficient operation, ensuring delivery of high quality end to end; 4. jointly with the Friends of the development of both competitors and partners together to create good living space, shared the interest of the value chain.

Not difficult to see from the above strategy, Huawei's strategy is both concerned with management (the first), but also concerned about the management (second); both concerned with the business outside (the first and fourth), but also concerned about the internal (second and third) . Can be said that the management philosophy based on its strategy of Huawei, a full and balanced strategy.

In the business model, the Huawei's macro-oriented business model is customized, product development roadmap is customer driven, to provide customers with complete and timely service as the only existing value and reason; in management mode, Huawei micro-business model is process-oriented organizations, the completion of various elements from end to end enterprise, high quality, efficient and effective management; in the internal core values, corresponding to build a high performance culture characterized. As Ren Zhengfei said: "In 20 years of painful ordeal, we finally established a 'customer-centered, striver-based' corporate culture, which the company slowly out of the dilemma."

Also not difficult to see, Huawei core values advocated by the same internal value orientation (hard) and the external value orientation (customers) an organic and balanced together. Overall, this model will be customer value, business efficiency and management efficiency and high performance together organically in order to achieve an effective harmony, a dynamic equilibrium.

It can be said, Huawei proposed macro-and micro business model business model is built on the basis of rational thinking, and its essence is the dynamic balance management into a practical meaning of "Huawei model."

Huawei in the early stage of development, the focus of the enterprise located in the business, is also very weak for a company concerned, is undoubtedly a wise choice, because "to live, is the company's last word," the company want to live, and to a high-tech enterprises, to grow and the need to give priority to the efficiency of enterprises. After 1997, the company based on changes in the status and external environment, transform the strategic focus, strengthen internal management, by introducing world-class enterprise management system in the management of enterprise-class integration and, through management efficiency to promote the business benefits increase.

For Huawei, the strengthened management, the implementation of IPD, ISC as the core of the management changes that make up the management of the short length of wood, because the management is really the core competitiveness. For each department, project team and the director speaking, with the personal commitment to implementation of the system performance, it has not simply functions of the departments or functions of the manager, the company strengthened its management functions of the body, the cadres of various departments has actually transformed To set management functions and business functions as one of the managers. Therefore, managers face an urgent role and the role of the conversion, and then realize their operational capacity and management capacity in the balance.鐢辨褰㈡垚涓?釜鑹?寰幆锛氬湪涓綋 灞傞潰锛屽疄鐜颁釜浜鸿兘鍔涗笌宸ヤ綔鑱岃矗鐨勫姩鎬佸潎琛?鍦ㄧ粍缁囧眰闈紝瀹炵幇閮ㄩ棬缁忚惀鐩爣涓庣鐞嗘晥鐜囩殑鍔ㄦ?鍧囪 ;鍦ㄥ叕鍙稿眰闈紝瀹炵幇鍔熶笌鍒┿?缁忚惀涓庣鐞嗐?缁勭粐鎴樼暐鐩爣涓庣粍缁?鑳藉姏鐨勫姩鎬佸钩琛°?

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