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Transcript of Huawei
in the GIE-6087 Global Business Design course
[ FSA, Laval University, Quebec, Canada ]
By Fandong Meng Huawei is a leading global ICT (Information,Communication,Technology)
solutions provider. Products, Solutions and Services
Carrier Network BG
Consumer BG Approximately all of the world's top 50 telecoms companies work with Huawei.Prominent partners include BT,Vodafone,Motorola, France Telecom, T-Mobile, Talk Talk, Portugal Telecom, Cox Communications, Bell Canada, and Clearwire. products and solutions have been deployed in over 140 countries, serving more than one third of the world's population. Huawei was founded in 1987 by Ren Zhengfei
and is a private company wholly owned by its employees. China 's most influential business leader Financial Highlights Milestones The past development history（(1987 - －1998）) Year 1987
Establishes in Shenzhen , as sales agent for Hong Kong company producing Private Branch Exchange (PBX) switches
Embarks on independent research and commercialization of PBX technologies targeting hotels and small enterprises
Initiates R&D and launches rural digital switching solution
Generates sales of RMB1.5 billion in Year 1995, mainly derived from rural markets in China
Launches wireless GSM-based solutions
Expands into metropolitan areas of China in Year 1998 Corporate reform(1998 - 2000) From 1998 , Huawei employ international well-known management consulting company to implement IPD(Integrated product development), ISC(Integrated supply chain) and human resource management mechanism. Global operation ( 2000 - now ) Year 2005
International contract orders exceed domestic sales for the first time
Ranks No. 3 by Informa in terms of worldwide market share in mobile network equipment
Ranks No. 1 by ABI in mobile broadband devices having shipped over 20 million units
Ranks No.2 in global market share of radio access equipment
Launches the world' s first end-to-end 100G solution from routers to transmission system
Established its Cyber Security Evaluation Centre in the UK
Unveiled the GigaSite and solution U2Net architecture.
Build 20 cloud computing data centers.
Shipped approximately 20 million smartphones.
Acquired Symantec's shares in Huawei Symantec at US$530 million. Character Vision To enrich life through communication Mission To focus on customers' market challenges and needs by providing
excellent ICT solutions and services in order to consistently create maximum value for our customers Core Values The core values are deeply rooted in every aspect of business. They are the internal driving force for the company and are the commitments to the ecosystem. These values enable to provide effective services to customers and to achieve vision of "enriching life through communication". Character some key components of success Create an unique culture -The wolf culture
Continuous management reform
R&D Offer Creation Character Stakeholders The wolf culture Team spirit Market path city market start at the county level from the domestic market starting from the second, third world countries developed countries encircle the city, and then seize the city Carrier Network BG
Consumer BG Products,
Solutions, Services Mission
The wolf culture Reform The wolf culture
Intellectual force intensive
Business model Shareholders
Others Threat Defence •Application & Software
•Storage & Security
•OSS •Radio Access
•Core Network •Personal Devices
•For Enterprise Creation Huawei has over 140,000 employees, around 46% of whom are engaged in research and development (R&D).
It has 20 R&D institutes in countries including China, the United States, Germany, Sweden, India, Russia, and Turkey, and in 2011 invested around US$3.74 billion in R&D. Huawei's success rely on the continued recruitment of an engineer army, train them, organize them, and then motivate them rattling in the goals in the territory of the global telecommunications industry, won a block of high-value-added sites. Management guru Peter Drucker said:
"In 21st century, it is the most important that the management of knowledge workers ." 46% 33% 9% 12% Huawei has maintained this ratio for 20 years, the allocation of human resources as same as" smile curve " with R&D and market on both sides. smile curve Intellectual force intensive enterprises
typically contain the following characteristics: First: it has a large number of low-cost and highly educated knowledge workers;
Second: it has a fast and effective organizational skills;
Third: it's products or services has high added value, so it has enough profits for further expansion. labor intensive knowledge-intensive innovation Three form of enter Good customer service efficient R&D Zhou Jun, a sales representative of Huawei.
He said: "we maintain good relations with
customers, we almost have bureau in anywhere even in some towns,
so we can solve the problem timely. while the large international companies only have a few persons in one province" It becomes the core competitiveness for Huawei’s rapid expansion in the world that the fast product development and accurate execution capability to meet the need of telecommunication enterprises Continuous management innovation 1998 It takes 50 million dollars to engage IBM to implement IPD Huawei has succeeded in creating an offer that is coherent with the very specificities of it's character
But there are two challenges Cost advantages have been to the extreme
Human resource cost is increasing
Personal successful decision difficult to continue
Ren zhengfei, the founder, is 68 years old Through the Union,
the company implements an Employee Shareholding Scheme , which involves 65,596 employees as of December 31, 2011. Stakeholder Communication To strengthen the management of stakeholder inclusiveness through consultation and communication
To incorporate stakeholders' viewpoints into the business approaches and activities
To enhance perception management and continue to improve customer satisfaction As of 2011, Huawei had filed 36,344 patent applications in China, 10,650 under the Patent Cooperation Treaty (PCT), and 10,978 patent applications overseas. We have been awarded 23,522 patent licenses,
90% of which are invention patents. Huawei's R&D expenses totaled CNY23,696 million in 2011, and the company has spent accumulatively over CNY100 billion on R&D over the last decade