Huawei's New Ten Legion Officially Moves To the Front Of the Stage Whether the "Business Army" can efficiently break through the existing challenges

Reporter Jia Li

It is reported that Huawei's internal forum Voice Community disclosed that on March 30, Huawei's second batch of legion formation inaugural meeting was held at Huawei Bantian Base in Shenzhen. Most of the ten legions established by Huawei this time are formed around the emerging businesses that Huawei has focused on expanding in recent years. Up to now, Huawei has established a total of fifteen legions in two batches, just over five months after the establishment of the first batch of legions.

Ren Zhengfei, founder and president of Huawei, and Meng Wanzhou, who has just taken up Huawei's rotating chairmanship, both attended and spoke at the legion formation meeting. As more legions "go online", Huawei's architecture and industrial integration methods and strategic adjustment intentions have gradually surfaced.

Meng Wanzhou, Huawei's rotating chairman and CFO, spoke about the "Interactive Sports Health Corps"

Ren Zhengfei, founder and president of Huawei, talked about the goals of the legionnaire strategy

Around the operator and other services

Increase enterprise-level layout

The second batch of ten legions formed by Huawei is the Power Digital Corps, the Government Affairs One Netcom Corps, the Airport and Orbit Corps, the Interactive Media Corps, the Sports Health Corps, the Display New Nuclear Corps, the Park Corps, the Wide Area Network Corps, the Data Center Base Corps, and the Digital Sites Corps. These legions have begun to take shape at the end of February this year, and are called the "Top Ten Reserve Legions" by Huawei internally, and have now officially turned positive.

It can be seen that the seven major legions, such as power digitalization, government affairs one netcom, airports and rails, are mainly formed around Huawei's emerging business areas such as power, cloud computing, and transportation in recent years, and most of them are concentrated in the enterprise-level, government-enterprise fields.

Huawei entered these markets as early as 2011-2015. In recent years, these business segments have gradually matured and begun to scale further in segments. The landing of these industries has promoted the rapid growth of Huawei's B-end enterprise-level business. According to the data, since its establishment in 2011, Huawei's enterprise business has achieved more than 10 times growth.

"Huawei's general idea of establishing the second batch of legions is to build on its strengths and avoid its weaknesses. Huawei's B-end business performance last year was relatively stable, and the newly established legions will focus on the strong core layout of telecom operator business to further stabilize performance and expand to higher profitable enterprise-level markets. Huawei MVP Ma Chao told the Securities Daily reporter.

At a time when consumer business is rapidly declining, Huawei urgently needs to stabilize its pillar industries to "survive". It can be seen from the financial report that last year, Huawei achieved operator business revenue of 281.5 billion yuan, accounting for 44.2% of the first, enterprise business revenue increased slightly by 2.1%, but consumer business revenue fell sharply by 49.6% year-on-year. Developing new revenue streams has become extremely critical. Huawei is trying to tide over the difficulties by ensuring carrier services and increasing the scale of the B-end enterprise market.

The three legions of interactive media, sports health and display new cores may further explore the meta-universe field together with Huawei's just-launched payment business.

"Huawei payment is mainly to prepare for the comprehensive promotion of the digital yuan, and the combination of digital currency as a pure digital asset and the metacosm is more likely, and the interactivity and display enhancement are important features of the metacosm, and it is not difficult to see Huawei's consideration of the layout of the metacosm." At the same time, the business of these three legions is less dependent on high-end chips, but it has strong commonality with the mobile terminal business, which shows that Huawei does not want to give up the consumer business market. Ma Chao said.

Can it break through efficiently?

Multiple challenges remain

In Ren Zhengfei's view, Huawei's use of legionary strategy can respond to the severe international situation with more flexible and mobile tactics.

It is reported that the Huawei legion has a high degree of independence and autonomy internally.

Yuan Bo, a communications engineer, believes that Huawei's establishment of a corps is playing more "food" for the main ict business, while simplifying the original redundant management process, so that research and development and marketing can be more agile to sanction the development of the business.

In fact, in the eyes of industry insiders, Huawei's "legion" is more of a reorganization of business systems and architectures. "Most of the Huawei legions are organized by the previously scattered business systems, and Huawei's establishment of the legion is to further streamline the structure and flatten the organizational structure, but Huawei's business structure is relatively fixed, it is not easy to open up in the short term, and the consumer performance loss rate is fast, the time is limited, and the expansion to higher profit enterprise markets and energy industries needs to be more efficient." Yang Yong, investment director of Yihe Yinfeng Investment Management Co., Ltd., said.

A Huawei engineer revealed, "Each legion will also build a model that meets the characteristics of its own business with technical architectures such as Hongmeng and Euler." When shouldering the task of 'charging', Huawei's various legions will also undertake assessment indicators, but the specifics are not disclosed. ”

In fact, there are still many legions in The current Huawei are also in the making. It is understood that in the fields of education, medical care, chemical industry and other vertical industries, Huawei is likely to establish legions, most of which are parallel business units, and Huawei's capabilities in the ICT field are crossed.

"Huawei has been thinking about its own business transformation, and among the ten legions established this time, there are also several non-vertical industry legions such as wide area and data centers, which indicates that Huawei's legion may continue to expand, not only limited to industry scenarios." However, huawei's legion also faces multiple challenges in terms of whether it can achieve high efficiency, real-time localization improvement, truly open up the system, and play a role in talent reserve. Yuan Bo said.

(Edited by Li Bo, Qiao Chuanchuan)