Author | Xia Zhongyi
Source | "Serving customers is the only reason for Huawei's existence"
On March 28, Huawei released its 2021 annual report, and the company's overall operation was stable, with a net profit increase of 75.9% year-on-year.
Meng Wanzhou said that Huawei has passed through the black barrier area of the disaster.
Since its establishment in 1987, Huawei has experienced many life and death crises and external suppression, although it is scarred, but it can buck the trend every time, and finally become one of the world's leading companies.
People can't help but ask, how does Huawei find the right direction and continue to grow? Do they have a set of "martial arts secrets" to help the company turn the tide and kill all sides in the darkest hours?
Today, we specially sorted out the content of huawei's rotating chairman Xu Zhijun word by word and made a preface recommendation, huawei senior management seminar textbook "Customer service is the only reason for Huawei's existence", about the company's development guidelines, to see what "secrets and dry goods" Huawei has in the training of senior managers.
In today's turbulent and deteriorating global environment and the surge of variables, I hope that these contents can help everyone through the crisis, find the right direction, and move forward steadily.
The following is the first authorized release and is worth collecting.
(Source: Unsplash)
Huawei's achievements today are due to its long-term commitment to the development guidelines for managing the company's strategy, investment and development direction, formulating business policies, making the right investments, and helping to coordinate the balance and rhythm of strategy and tactics.
01
Huawei's management philosophy: openness, cooperation, and innovation
1, do not open will die, a cup of coffee to absorb the energy of the universe
Enterprises must be open, not open is a dead end.
For Huawei, if the software is not open, the yield will be very low. If you do not master the core technology, openness will bury itself; but if you have the core technology, but there is no opening, it will not bring added value and no great benefits.
Therefore, Huawei must have both core technology and open up. The world is too big, no company can monopolize the market in the future, and not opening up is a dead end.
In terms of thinking, Huawei people should be more open, make more friends, drink more coffee, rub out innovative sparks, and absorb cosmic energy with a cup of coffee.
Huawei now lacks thinkers and strategists, and to become a world-class enterprise, it cannot just stay at the level of a general. If they will only fight heroically, think wrong, and go in the wrong direction, the more severe they are, the more problematic they will be.
On the road of future exploration, Huawei can not only "tanks, aircraft, and cannons", but also cultivate a group of "science and technology diplomats" with extensive knowledge and comprehensive ability.
2. Open cooperation based on their own core growth to achieve win-win results
In Huawei's development guidelines, "cooperation" is very important. The "cooperation" mentioned here is to be open and cooperative based on its own core growth.
No matter how strong a company is, its capabilities are also limited, and it is impossible for all technologies and products to be independently developed and borrow external forces.
Huawei should not overemphasize independent intellectual property rights, nor should it pursue independent development too much, otherwise it will wear "red dancing shoes".
Openness and cooperation is the general trend of the development of relations between enterprises, and only by strengthening cooperation in the future can the world obtain greater common interests and achieve win-win results.
In the process of research and development, Huawei only does its own advantages, and other parts strengthen openness and cooperation, only in this way can Huawei build a real strategic force.
Screenshot of Sina Technology Weibo (source network)
3. Innovation is the inexhaustible driving force for Huawei's development, and flowers should be planted on "cow dung"
In Huawei's development guidelines, the third point of management philosophy is based on "innovation".
Businesses must survive, have money and profits. The only people who give Huawei money under the sky are customers. Therefore, Huawei can only survive if it meets customer needs and creates value for customers.
In the era of knowledge economy, the way enterprises survive and develop has undergone fundamental changes, in the past it was by doing things correctly, and now it is more important to rely on doing the right things. In the past, people saw innovation as a risk, and now not innovating is the biggest risk.
Any advanced technology can only generate value if it is transformed into a commodity that meets the needs of customers, and then into the commercial success of customers. Huawei's innovation has always been closely focused on customer needs.
There is no innovation without risk, and innovation must tolerate failure, and heroes cannot be judged by success or failure. All who climbed up from the mud pit were saints.
Huawei wants to stand on the shoulders of giants. Huawei's long-term adherence to the strategy is the strategy of "flowers planted on cow dung", "flowers" grow well, and then become a new "cow dung", and then nourish the first new flowers - Huawei must always innovate on the basis of inheritance.
02
Direction of development: seize the power of opportunity, based on the advantages of the choice of large market
How does a commercial giant ship like Huawei find the course and the other side in the commercial sea conquest? The book "Serving Customers is the Only Reason for Huawei's Existence" also explains in detail:
1. Choose a large market based on advantages, and a large market can incubate large enterprises
First, only large markets can incubate large enterprises.
The communications market is a big market, and the vigorous development of China's communication network has given Huawei this opportunity, and Huawei has seized it.
The development of the Internet has also spawned large enterprises such as Google, Alibaba, Tencent and so on... In the next two or three decades, with the development of the Internet, 5G, artificial intelligence, cloud computing, big data and other technologies, human beings will enter the intelligent society. Huawei is committed to building a connected intelligent world, which is a very large market and a major opportunity that Huawei must seize.
In June 2021, Huawei Hongmeng 2.0 system conference video screenshot, tearing the situation of Android and IOS mobile operating system (source: network)
Second, Huawei should use its unique advantages to enter new areas and make differentiated contributions to customers.
In new areas and new markets, opportunities and risks coexist. What Huawei chooses to do and what not to do should consider whether Huawei has a unique advantage in entering this field.
2. Seize the "window of opportunity" and emphasize the drive of opportunity for the company's development
We must see the importance of opportunities for businesses, seize them, and increase investment:
First, opportunity is the driving force behind business expansion
Opportunities, talent, technology and products are the main drivers of a company's growth, and there is an interplay between these four forces. Opportunities lead talents, talents pull technology, technology pulls products, products pull more and greater opportunities.
Second, we must learn to seize opportunities, create opportunities, and guide needs
Huawei's previous successes have seized the opportunity of the transformation of telecommunications networks in Western countries externally, and internally encountered the development of telecommunications networks and mobile networks. The future is a fully connected intelligent society, which is the most important and best opportunity facing Huawei.
Finding opportunities and seizing them is the famous saying of the catcher. Creating opportunities and guiding consumption is the motto of the pioneers.
Third, in the case of market ambiguity, multi-path exploration must be carried out, and when the market is clear, the focus of investment will immediately shift to the main line
The world will change too quickly in the future, and it is difficult for companies that bet only one way to succeed, and once the strategic direction is wrong, it will cause huge losses. As long as the market needs, and there may be a certain market size, Huawei must seize this opportunity.
Fourth, to win the future, we must increase strategic investment in opportunities
When deciding to develop in a certain strategic direction, the company should make venture capital in the opposite direction, so as to win back time when its master chooses the wrong one. When the economic situation declines, Huawei should increase investment and achieve counter-cyclical growth.
We must dare to increase investment when the world competitive pattern is at an inflection point to achieve overtaking in curves.
03
How does Huawei invest?
Since we mentioned earlier that Huawei will invest in the opposite direction at the same time to avoid losses due to wrong choices. So let's take a look at how they do it.
1, grasp the core, open the surrounding, there is no action in order to do something
First of all, any corporate investment behavior must learn to resist temptation. Especially in the face of interests that are not related to the core competitiveness of enterprises, we must endure.
Huawei's success is first of all because it has developed strategically around the field of electronic information and is not tempted by other investment opportunities.
From its creation to 2010, Huawei has done only one thing, putting eggs into one basket - researching and developing communication network technology, and then gradually expanding its business to the field of communications-related information technology.
Secondly, Huawei's investment behavior always adheres to the principle of grasping the core and letting go of the periphery.
Huawei cannot dominate the world in all fields, and many of the products and technologies it develops revolve around its core technologies and core capabilities.
At the same time, Huawei's product strategy is also very clear: the market demand is large, the growth is good, and the technology is mature, and the focus can be self-researched; the market demand is small, the growth is poor, and the technical preparation is not mature, and the self-research can be abandoned and consider cooperation.
Doing something and not doing something, concentrating on fighting the war of annihilation, all marks the beginning of the maturity of management.
2. From building a big ship to building a big ship, the large platform has a lasting scale investment
The competition of the future is the competition of the platform.
In today's increasingly convergent technology and increasingly diversified customer needs, only by relying on the support of the platform can we meet customer needs more quickly. In the long run, the competition between products comes down to the competition of the platform.
At the same time, Huawei should also have more forward-looking platform construction to build a long-term victory.
Its strategy is to "build a big boat, a big money", and follow the main trend. If enterprises want to avoid major risks, they need to conform to the general trend of technological development, market changes and social development.
However, in the future, Huawei will "build big ships and become big money" in leading areas, build industry leadership, participate in the construction of future-oriented big ships, and become big money by itself, or become a big money together with the industry big money.
3. Adhere to the principle of pressure and force out a hole
I talked about Huawei's concept and strategy of choosing the investment direction, so how should it be implemented?
First, Huawei adheres to the principle of pressure.
As we all know, tanks can pass unimpeded on the swamp, but the pressure generated by a falling needle may puncture the hard floor. This shows that the company wants to invest funds to a point, and if it is pressed to death, it may have a breakthrough.
Huawei adheres to the policy of pressure, that is, to concentrate all the company's strength on one point and make a big breakthrough.
A company, in a field, usually has only one or a few strengths, and it is impossible to balance the power in every aspect. Fully exploiting the strengths and avoiding the weaknesses, and concentrating on their own strengths, will produce a multiplied scale effect.
Second, insist on making a hole out of the force, a hole out of the profit, and the next one to fall will not be Huawei.
Air is one of the gentlest things in the world, but it can push rockets into space, which shows how powerful it is.
Ordinary Huawei people have spent more than 30 years focusing on a goal, continuing to struggle, and achieving today's achievements, which is the power of a hole.
Huawei's focus strategy is to improve the world competitiveness in a certain aspect, so as to prove that without any background, Huawei can also enter the list of the world's strongest players.
04
How does the Huawei Legion control the balance and rhythm of strategy and tactics?
As we all know, marching and fighting pay attention to platooning and arranging troops, and with a general policy, technology and tactics are also very important. Finally, let's take a look at how Huawei won the battle.
1. It is necessary to have an unswerving strategic direction and flexible and mobile strategies and tactics
If you want to win, you must either be superior to the man in swordplay or strong in the shield. If the sword is inferior to a person, we must avoid comparing swords and do not argue with people about the sword.
Huawei must have an unswerving strategic direction and a flexible strategy and tactics. We must dare to win, but also be good at change and keep pace with the times.
"Catching up with the dragon spaceship with the spirit of the turtle" is one of Huawei's techniques and tactics.
"Turtle spirit" means that the turtle identifies the target, has no distractions, moves forward with difficulty, does not speculate, does not take advantage of tricks, does not turn big corners, and crawls step by step with customer needs.
Huawei is a big turtle, the past 30 years of rapid economic growth, even if the flowers are everywhere, Huawei did not look east and west, but concentrated on hard work.
If you want to develop, you must have strategic patience and endure loneliness. At the same time, it is also necessary to control the reasonable speed of development, and the boiling of "chicken blood" must be a precursor to making mistakes. In the future, as long as Huawei continues to maintain the correct direction, advance strategically and step by step, and adhere to the spirit of the turtle, it will be able to catch up with the "Dragon Spaceship".
Another point for Huawei on the march is to "change the formation at any time according to the environment."
Huawei must learn to give up strategically, and only by giving up can we gain. When launching an attack, if you find that this place cannot be attacked for a long time, you can adjust the team to the place where you can attack, only need to occupy a part of the world, not the whole world. Sticking there, you may miss some strategic opportunities that you can have in the future.
For example, in the face of continuous pressure in the United States, in addition to the unaffected industries to be bigger and stronger, there must be different development strategies and marketing strategies for different products and different countries.
What Huawei does or does not do is not absolute, the key is to see the situation. The motto of the Kang University at that time was "unswerving political direction, arduous and simple work style, flexible and mobile strategy and tactics", Huawei must have an unswerving direction, but also can not be overly dogmatic, strategic formation and organizational structure should be adjusted with changes in the environment.
2. Ensure the proportion of R&D investment, and increase investment to build Huawei's advanced and independent
Not investing weakens the company's core competitiveness. Lying on the merit book and eating the old money, it will gradually be surpassed by competitors, lose its core competitiveness, and the company may die.
If Huawei had not continued to invest in mobile communication technology, Huawei would not have been able to gradually lead from GSM (Global Mobile Communication System) to 5G by 1-2 years, and perhaps there would be no achievements today.
Only by taking the strategic lead can others choose only Huawei's products, otherwise they will fall behind.
From the beginning, Huawei has insisted on allocating research funds at 10% of sales revenue every year, and firmly grasped the opportunities of strategic development. Facing the future, Huawei should increase the proportion of investment in research and development.
The 2021 Huawei annual report was released, and Huawei will continue to increase investment in talent and R&D in the future (Source: Screenshot of People's Post Weibo)
An enterprise, without in-depth exploration and core control of industrial technology, has no control over products and industries.
Huawei's R&D strategy is to unswervingly take root, continuously break through and master the underlying materials and core technologies, do not rely on any single country or single supplier, and are not "stuck in the neck" to ensure the supply continuity of Huawei products.
Break the sky upwards, invest more in basic research and theoretical research, have theoretical breakthroughs and original technological inventions, create new industries and new business models, and create a global ecology.
3. Half a step ahead into advanced, three steps ahead into "martyrs"
High-tech companies, without the world's leading technology, have no competitive advantage, and even no room for survival.
The wave of IT bubble bursting cost the world $20 trillion in wealth. But from the perspective of data analysis, almost no company has died because the technology is not advanced. Many of the technologies that lead the world, although they are the frontrunners in the 10,000-meter race, are not necessarily winners.
But companies can't do without advanced technology.
Huawei's view is that in terms of product technology innovation, it is necessary to maintain technological leadership, but it can only be half a step ahead of competitors, and three steps ahead will become a "martyr".
Only when the "window of opportunity" that is truly generated by customer demand appears, and the invention of scientists is transformed into a product, can commercial value be generated.
Investing too early will also wash the commercial saline land.
Therefore, Huawei's investment strategy for the future is: at least one sesame seed at a place 1 billion light-years away from us; an Apple 200 light-years away from us; and 5 kilometers away from us, invest in VanVleet ammunition.
Huawei is a commercial organization that cannot bear the burden of humanity or lead the world. Huawei's product technology is at most 1-2 years ahead, and the ultimate goal is to create value for customers and ensure that the company can survive and develop.
Finally, in the book "Serving Customers is the Only Reason for Huawei's Existence", the author also logically disassembled the complex Huawei development guidelines, summarized them into nine major points, and expressed them in pictures, which is convenient for everyone to learn and deduce repeatedly:
The above content is compiled from "Serving Customers is the Only Reason for Huawei's Existence" (xia zhongyi, published by CITIC Publishing House Group in April 2022), the copyright belongs to the author and this book, please do not indicate the source and source when reprinting.
Xu Zhijun, Huawei's rotating chairman, reviewed and prefaced verbatim,
Huawei's senior management seminar textbooks and full-truth questions were released to the public,
Interpret Huawei's customer-centric core values,
Interpret Huawei's business philosophy and management philosophy
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Ren Zhengfei internal speech audio version
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