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Huawei dynamics


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									Huawei dynamics
Just recently, Huawei relevant sources, Huawei plans 2009 launch of the first half
with Google Android open platform and the Nokia Symbian OS smartphone.
Some critics say this is a meaningful change. Input on the smart phone is no
alternative, or see new opportunities? And how involved in the field of smart phone
competition to end? At least there is one thing we can guess that Huawei has been in
use in the "cheap" strategy.
20 years, Huawei has been in people's eyes, stirred the hearts of layers of
ripples, there is excitement, there are sad, or have complex emotions he. 30 years of
reform and opening up in China's vast oceans, large and small groups of up
technology companies, has collapsed - except for Huawei, stable growth, hurricane
advance, sales more than 100 billion yuan, and less real growth for China Some
large-scale international enterprise.
Huawei Why?
It seems clear that with a few pages, "Huawei what basis" the
evidence is not a smart approach, but we are willing to try to "claim by the
word Ji" Find something useful bit in the future.
Internal dilation
Keywords: Huawei Basic Law, IPD, wolf culture
Basic, IPD-"to cure the cycle of ideological and down to form a dynamic
February 2008, Huawei to do for their own management consulting for IBM for 10
years consultants are off.
As the long-term close alongside, the farewell scene, Huawei, a vice president with
tears. While IBM, this is a business consulting project, but Huawei is concerned, it
means reborn. Huawei, this transformation began in 1998, when China's
state-owned enterprise reform measures into the deep water areas, including trade
unions congress, the contract system, factory manager responsibility system and a
series of reforms have largely failed, Huawei must seek a global perspective for their
own path of development management. For Huawei, the large-scale distribution of
human resources in R & D and marketing side, managers relatively small
proportion, if not achieve the demand from customers to research and development,
back-end customer management, business only with the size of expansion and
In fact, from 1995 began, Huawei made from two directions on the management of
the exploration. Internally, Huawei started to sum up historical experience, the
wisdom of statements as "Huawei Basic Law"; external,
Huawei started to IBM for the benchmarking to learn. Starting this year, Huawei and
its history, the two companions embark on a completely different way.
Since 1995, the Preparatory "Basic Law" to the finished
manuscript went through 3 years, which three years, Huawei has experienced more
than 800 people from 1995 to 1998, nearly two million high-speed development.
Former "Huawei Basic Law," the drafting team leader of the
Chinese People's University professor Peng Jianfeng that the
"Basic Law" at least for the Huawei brand value increased by 1
billion yuan. "Basic Law" is about the real thinking will be
transformed into high-level we can see and feel things, to achieve a consensus among
themselves, this is a power of intelligent process.
In 1998, Huawei between strategic management and project management of
contradictions. More importantly, Huawei developed a considerable portion of the
products is extremely large and complex product system, to manage and coordinate
such a large development team to ensure the 10 million lines of code does not go
wrong, not only superhuman wisdom and a kind of effective management strategies.
Similar problems also appear in the Big Blue IBM him. 90 early 20th century,
Gerstner surgeon to technology but lack the organization of writing powerful, IBM
entered IPD (IntegratedProductDevelopment, integrated product development) and
management culture, IBM embarked on a successful push technology to the market
transformation from a commercial path, so that enterprises all aspects of an organic
whole. This is IBM's core idea in the management - "the first
thing to do for."
Early 1999 by IBM as a Consultant IPD design change was officially launched in
Huawei. IPD is on product development (from product concept generation to product
launch of a whole process of concept and method, which stresses the market and
customer demand as the driving force of product development, product design on
construction product quality, cost, manufacturability and can service, and other areas.
More importantly, IPD product development as an investment to manage. Every stage
of product development, all from a business perspective rather than from the
perspective of technology assessment to ensure the realization of product returns, or
to minimize the losses caused by failed investments. Experience in learning the basis
of a variety of advanced, Ren Zhengfei formed the idea of a balanced management.
Wolf Culture - "Enterprise Development is to develop a group of
"Wolf" culture, was once a sign of Huawei's culture
and promote Huawei conquering a city in the market. It makes Huawei spent 20 years,
from the assets from the just 20,000 yuan a small company to a revenue of 12.56
billion U.S. dollars of international enterprise. In the international market, it is the
world's largest communications equipment makers are killing the same
Huawei fierce.
Ren Zhengfei has summarized the three major characteristics over wolf: one keen
sense of smell; Second, indomitable, selfless spirit attack; third group struggle. For
businesses, is acutely aware of opponents to the movement and changes in the market,
can seize the advantage of the initiative.
Internal management, "wolf culture" for Huawei has a number
of high-quality, hard-working, low-cost foreign counterparts to do more than develop
talent. This is reflected in Huawei began in 1994 and high-paid talent monopoly
employing the principle of high efficiency. Turning to the topic of people, I fear,
Huawei Controversial "pain point." Early years, the Huawei
million jobs nationwide shock. At that time, Huawei has recruited hundreds of year,
thousands of students, and even a move into 5000. Some have criticized Zhengfei
waste of manpower, which, either do not think: "In society, including some
world famous companies, said that Huawei waste too much, but we believe that it is
'waste' created Huawei. Of course, we no longer follow the
same road, and then 'waste' under
Go. "
Huawei nearly 40,000 R & D personnel, 80% are software engineers.
Telecommunications network equipment tremendous amount of software
development. The last century, the development 10 000 90 program-controlled
exchange, there are more than 80 million lines of code, now a high-end routers have
tens of millions of lines of code. Code is a software engineer needs a byte (for a total
of millions of bytes) into the knock on the computer. Therefore, the industry can also
be referred to as mental (software labor)-intensive industries. R & D costs
have also become key to competition. R & D engineers in China, the wages
of a one-third to one quarter of Europe, while the legal working time is 1.5 times the
European engineers, while the Chinese were hard, but also often work overtime.
While over 80% of R & D expenses is the cost of human resources, so put a
dollar Huawei R & D, European companies invested the equivalent of 10
In the eyes Ren Zhengfei, Huawei is the third high-enterprises, that is, high efficiency,
high pressure, high wages. He firmly believes that high wages are the primary driving
force. Year monopoly of talent in college, is one with a paid killer. As for the working
pressure, the media, the public did have various versions, overtime culture, mattress
culture, depression, suicide and many other phenomena, so-called wolf culture
Huawei become increasingly criticized.
"China emphasizes moderation harmony, the number of wolf culture
makes it difficult to accept. But for many Chinese companies, if not a little wolf, there
would be no future. Chinese companies has been challenging his followers, and if
there is no little courage, and execution , will be more passive. from the past decade to
the next ten years, Wolf and culture is perhaps the mainstream culture of Chinese
enterprises. "tin en Beijing, President Jiang Ruxiang management
consulting firm, said," Of course, the soft underbelly of cultural wolf -
stress implementation and the courage to hurt the organization and system, which
requires us to make a balance in the system. "
Market tough fight
Pressure tactics, price war, winter
Birth is necessary to develop enterprise. Huawei set foot in the communications
industry is a very competitive industry, either dead or live. Face strong competitors
such as Lin's domestic and international market, Huawei young how to do?
The size of a breakthrough for the international market Ren Zhengfei, the world-class
enterprise is the goal of his life.
Huawei has been on the international ideal of almost crazy. So on what basis Huawei
occupy the overseas market, and in today's economic environment, bad
situation, but also how the winter?
Attacks on domestic opponents pressure tactics "to more than rival the
intensity and the allocation of resources, or does not do, focus on the great human,
material and financial resources to achieve major breakthroughs." This is
the principle of Huawei's pressure. Huawei C & C08 machine
developed behind main rival ZTE, dragon and Changhong telecommunications, but
the second half of 1994, the 10,000-capacity machines C & C08 machines,
foreseen to other competitors.
It opened with the established strategic distance competitors. This strategy of using
the premise that against a stronger enemy, as the only telecom equipment giant,
private enterprise, Huawei funds, personnel, policy support and other critical
resources are at a disadvantage, only resource allocation within the enterprise to make
a fuss, by the overall weak become the strong local, at a certain stage, one aspect of a
leading opponent, dominate the market, their competitiveness. In their existing market,
Huawei will also update and advance of technology, as a kind of attack and the means
for new entrants. Through self-denial and self-elimination, forced industrial progress
and improving access to those threshold.
Price war swept the overseas market with the Asian version of "The Wall
Street Journal," the report said, Huawei is "Cisco's
biggest competitor in the Asian region, well below the price of similar products of
Cisco." Cisco boss John Chambers once clearly said that in the next few
years, Cisco will be only one competitor is Huawei. In fact, knowledge-intensive
enterprises is bound to force international, this is the nature of the product. Their
products are of high value-added knowledge products, one of the characteristics of
this product is easy to copy, and large-scale copying costs will be greatly diluted. Can
resolve the domestic market also the risk of instability.
Price will always be a knowledge-intensive enterprise strength advantage, an ad for
Huawei in the United States is "the only difference is their
price." In the international market, Huawei is still to be taken in the
domestic market, "encircling the cities from the countryside"
policy, from Asia, Africa, third world countries to start. In these countries,
Huawei's rivals are not the cheap labor, is still their sales staff and their
agents, which makes Huawei the "Wolf" on its head. A market
in the Congo, said: "Although this place arbitrary, but a good block, the
arch will be able to arch out of gold to Yi Gong." Arch in a gold piece to
the place, Ericsson, Nokia and other international brands are difficult to send sales
personnel to, because of high subsidies for their products employees with nothing.
Since 2005, Huawei's overseas sales began to exceed the domestic market.
In 2005, Huawei's overseas revenues accounted for 58%, 65% in 2006,
2007, more than 70%, has been overseas for three consecutive years of income over
the domestic market.
Overseas sales accounted for a company over a third of worldwide sales, then it can
be called an international company. From this point of evaluation, Huawei is a truly
international company.
"But, if not quickly grasp the customer value, then the price advantage will
lose." Thynne, general manager Jiang Ruxiang analysis that
"the industry's competitiveness in general should be two core
capabilities: focus on customers, front-end for our clients the value of its powerful
back-end execution.
Front-end does not seem clear. Huawei to create value around the customer, are in
favor of price benefits, that is, low commodity prices. Price to the customer benefits,
we usually do not call it the core competitiveness. General will service, brand and
other comprehensive capacity as core competitiveness. Therefore, the future of
Huawei's multi-core competitiveness with the definition of a great
relationship. If this level is not very clear, it means that strategic swing. If this is the
price as competitive advantage, then the situation now facing even more severe. The
point is, this so-called advantage is not sustainable. In the next 5-10 years, Huawei
need to think about how in this industry to create unique value for customers, this
value is not just technology, but is a collaborative industry development strategy of
our customers. In fact, in your service for large customers, you need to know what big
customers are thinking, the future trend is what the property industry, what is the
future direction of industry, what Deng, so that you know how to Dazao products
How to build executive teams. "
Winter, ready to enter in 2008, Huawei entered a new phase of development. 2007
annual report, Huawei revenue reached 12.56 billion U.S. dollars has been ranked as
one of the top five suppliers of communications equipment.
It is in such a time, Ren Zhengfei the third time that "winter."
This is indeed with the current economic environment is very dissonant, and, though
the next economic downturn, we may be a good day for Huawei. Huawei is vigilant in
peace time. Ren Zhengfei the first time from the "winter" Since
2000, Huawei's annual revenue rose from 15.2 billion yuan to 12.56 billion
U.S. dollars. This sense of crisis Ren Zhengfei inseparable.
In 2000, when Huawei's sales of 15.2 billion yuan, ranking the first time
e-hundred, Ren Zhengfei was talking about the crisis: "Huawei's
winter," the article was released article for the business community in
China, Huawei has established a new position, its importance crisis, the corporate
culture beginning to have an expansionary influence. Published a large number of
Web sites and enterprises are reproduced in this article, many entrepreneurs and MBA
students as an important data intensive reading. During that winter, Lucent cut nearly
half of the employees, Nortel cut two-thirds of the staff, market share has dropped
significantly. By 2004, it is critical of China's macro-control, the large
number of enterprises dismissed from their posts, but the IT industry is a
"warm winter" to ease the impact of the Internet bubble in 2000,
after a large number of domestic Internet companies towards the recovery of the
Nasdaq The whole IT industry began to be optimistic. Ren Zhengfei this
"said the second winter," the judge that caused the winter
because of industry oversupply, the information industry will face the winter. This is
the essence of life and death struggle of quality, service and cost competitiveness.
Huawei's measures is to actively expand the overseas market, growth in the
domestic market can be down, but not less than the others.
"Despite the present economic downturn, telecommunications, or to
develop, but the economy requires people to be considered in the price. Perhaps this
time of winter, the spring is Huawei." Jiangru Xiang said, "the
next 4-5 years , Huawei is the time to improve the core competitiveness. in strategy,
organization and system level to improve the upgrade to cope with the next round of
economic recovery. "Sweden Jonkoping university president, Thomas
Anderson, Professor of Economics said," I think the world the economy
will fall into a long period of slow growth in the "winter", but
this is an opportunity for China. China in the economic crisis hit by relatively small, it
was a good opportunity to adjust the economic and industrial structure, stimulate
consumption, stimulate domestic demand, and even took the opportunity to improve
the energy system and the environment. but the government and enterprise
management, practices and responsibilities need to be careful. "
Vigilant in peace time, Huawei and Ren Zhengfei is a model of Chinese enterprises
and entrepreneurs.
Founder of the pain
Strong, Xingqingzhongren, strategic mistakes
Ren Zhengfei deliberately low-key life, under his leadership, together with Huawei, is
cast with a layer of "mysterious" veil. A leader and his
interesting relationship between enterprises, Chinese enterprises will become an
important topic of historical research. In fact, a business leader's personal
growth experience and in the process of character formation gene, values, and affect
their company's management philosophy and corporate culture. Zhengfei
experienced three years of natural disasters, the Cultural Revolution, had been a
soldier, turned the industry, received deception, it seems misery and poverty is his
first pot of gold. "Ren Zhengfei is the home of the eldest son of
China's Confucian culture, which contains a 'eldest son of
culture', the eldest son of the family continue the node, and therefore
ethical positions in society. As the eldest son, they have to deal with family crisis, bite
the bullet to degrees difficulties; their spirit of sacrifice than the general population,
while siblings enjoy great authority; most of them silent, but hair on fire to force of a
thunderbolt; they sent up to the expectations of the people to blame, would show the
great bitter and disappointed; they do not anger from the prestige, but for most people
cherish tolerance; their feelings tough and fragile. "(quote from"
Huawei truth "The book has been published in Contemporary China).
Zhengfei is not an introverted person familiar said, he was willing to speak words of
chest Italy, for the Xingqingzhongren, he can do everything for the smallest customers,
but not for the good of the media costs a little tongue.
"Huawei is Ren Zhengfei, Ren Zhengfei that Huawei." Huawei
internal, Ren Zhengfei has such a huge influence, employees called the
"boss" and the spirit of the idol. However, this is precisely
where Huawei's worries, because the character of this enterprise is so like
the character of its founder, and including the personality weaknesses. Ren Zhengfei
need to reform their lives.
Since 2000, Huawei began to increase strategic mistakes. In particular, the
acceleration of the internationalization of Huawei, Ren Zhengfei even though some
big and difficult to fully grasp the skills and the market environment changes. Perhaps
the "boss" really old, the market forecast accuracy as before.
Business is international business, business can not rely solely on individual heroism,
leadership, individual leaders can only be deciding the past, but not deciding the
future. How much a company can do, depending on the state and the pursuit of
entrepreneurship, entrepreneurs depend on the capacity of self-innovation and beyond.
"In my opinion the first generation of entrepreneurs has been largely out of
date. Who is the environment created by a person beyond a very difficult time.
Huawei times longer to create, when need is the political vision of the entrepreneur.
But This is a world-class 公司 未来 are harmful to the future of world-class
companies to yes the market of entrepreneurs can not be politicians. and
Xianzai's Huawei or TCL, succession issues Sihumianlin Zhe Tiao Zhan.
Huawei's winter
"All employees are considered, if one day decline in sales, profit decline
even bankruptcy, how do we do? ? ? Titanic is in the midst of cheers from the sea.
And I believe that this day must will come. the face of such a future, how we deal, we
are not thought about? blindly proud of our many employees, blindly optimistic, if
enough people thought, maybe not happy. be prepared, if not alarmist ? ? with layoffs
and pay cuts can not save the company, then how to do this? ? ? years, I think every
day is the failure of successful blind, there is no sense of honor, pride, but a sense of
crisis. This year we extensive discussion of the crisis to start to discuss what Huawei
crisis: what crisis your department, your department have any crisis, the process of
what point you have any crisis. can improve it? can increase the per capita benefits? If
discussion clear, we may not die, we continue our lives. "
Huawei to pay attention to the winter
"We need to tell you the real difficulty, if we do not foresee the future any
difficulty, we will be more serious predicaments ? ? winter is lovely, is not hateful. If
we do not go through a winter, our team has been smug is very dangerous, Huawei
must not proud. So, winter is not terrible. We are able to get the last degree, this year
we may fall a little profit, but not a loss. Compared with the same industry companies,
our profitability ability is relatively strong. we have to rectify, to meet future
development. "
Winter normalization
"In the face of the current situation, facing competition, being the
defenders of the international market order, not a destroyer. To strong learning,
respect for their market leadership, a positive but competitive and orderly manner. We
only in this competition than other companies as early as the cruelty of a little
understanding, we survived. surpluses lead to strangulation war, just as twisted towel,
this towel as long as the squeeze water, it shows there is room for competition, wring
the towel enterprises over, only towel dry screw, towel continually, this is the best.
Huawei has long maintained that the state can do? ? ? ah of course I have been
pessimistic, I am worried, I feel bored ah. Huawei Companies with a slight to die,
how wages ah? ? ? We just hope to get some breathing space, but also did not expect
more long trek began ? ? "
Grey's Huawei
In the Chinese People's University business school professor, took part in
"Huawei Basic Law" prepared by Yang Du view, Huawei is not
black nor white, "gray" is appropriate it.
Huawei famous, and very low key, people wanted to know its secrets, the market has
published many books about Huawei. But I think Huawei is not that simple to
understand a few words can say, or can simply be characterized as a good company or
bad company company. However, we can stress that it is the most realistic of the
company. This relationship between its management philosophy, it is gray.
On the gray chief had discussed the classic passages: "In the change, any
black and white views are easy to agitate the heart, and we just do not need black or
white, we need a gray view. between the gray between black and white is very
difficult to grasp, that is, the level of leadership and mentor.
Not really understand who there can be no gray ";" nothing will
happen to the extreme state of the emergence of black and white only two
philosophical assumptions. Reality real life success, most real understanding of the
gray ";" the balanced development of the idea of solving
conflicts reasonable grasp of gray ";" We have the concept of
gray, do not go to extremes in the transformation. Some things need to change, but
any extreme changes, will produce the original accumulation of damage, just the
opposite. "
Huawei leadership level in the management of change, corporate policy, training and
use of cadres such as runs through with gray Lingdao thinking, in many speeches and
system files between the lines Duyouguanyu Huiselingdao the classic statements and
measures, with Western Management and Chinese Traditional management compared
to some of the arguments, Gray's thinking, have inherited more
development and innovation, pregnant with meaning, and thought-provoking, realistic
and effective. Gray's thinking, and models, created a large number of
excellent managerial staff, the continued success of Huawei is leading an important

Zhengfei Quotations
* Enterprise Development is to develop a group of wolves. Wolf has three
characteristics: First, a keen sense of smell; Second, indomitable, selfless spirit attack;
Third, awareness of group struggle.
* All the world's resources may be exhausted, and only one kind of
resources can be endless, that is culture.
* Customer service is the only reason Huawei exists; Customer demand is the driving
force behind the development of Huawei.
* Live is the real way out, international competition law is the survival of the fittest,
difficult, you do a contract, others will narrow. Prefer to sell low, we must get the cash,
lose money selling is consumed fight to see who the final energy consumption, who
consumed the most slowly, who will be able to live to the end.
* Huawei each department must have embarrassed the organizational plan, which
requires both aggressive wolves, but also with the calculation of the in a difficult
A man and then have a skill, they have to the mainstream values of society through
their identity in order to have a chance.
* (Pressure principle) in the critical success factors and strategic growth point selected
on the strength of more than rival the allocation of resources, or does not do, they
concentrate manpower, material and financial resources to achieve breakthroughs in
key areas.
Only the company's employees really think of themselves as masters of
their enterprises, decentralization have a foundation, no such foundation, power points
down there will be chaos. Let those who desire a personal achievement as a hero, so
that those social responsibility (organizational goals that employees have a strong
sense of responsibility and mission) to be leaders. Grass-roots can not do without a
hero, no hero no power.
* What is success? Companies like those in Japan, as also by the near escape alive
and well, this is the real success. Huawei did not succeed, but growing.
? The introduction of new management system, the first rigid, after optimization, and
then curing.
* Winter is lovely, is not hateful. If we do not go through a winter, our team has been
carried away is very dangerous, Huawei must not proud. So, winter is not terrible.
Degree we can get past.
* Every day I think ten years is the failure of the successful turn a blind eye, there is
no sense of honor, pride, but the sense of crisis.
* Ten years later, the world's third of the world telecommunications
industry, Huawei will account for one.

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