An interesting question for Huawei, who has stepped on the cusp of the waves, is: As Huawei's former rivals continue to fall, will Huawei, which is good at achieving "anti-surpass" with "tracking and imitation", also fall into the loss of "leader" Confused? Can Huawei assume the responsibility of the industry leader? No matter how the outside world talks, Huawei has reached the peak of the telecommunications industry with a slight gap of about US $ 500 million in revenue from the first Ericsson in 2012. It is already an iron fact . Ericsson is still worth learning from Huawei in many ways, but in terms of income scale, it is already difficult to satisfy Huawei's appetite for growth. The US $ 500 million is almost just China Mobile ’s investment in a domestic province. It may be possible that by the half-yearly annual report this year, Huawei will be firmly seated in the number one position in revenue. But Huawei's "customer-centric, striving-oriented" culture determines that growth will be the "red shoes" that Huawei cannot stop. In fact, Huawei established independent enterprise business BG and consumer BG in 2011, and the three major business units that are tied with carrier BG as the core have already clarified the future growth model. After nearly two years of operation, Huawei needs to answer this The effectiveness of this model. At the 10th Global Analyst Conference held last month, Huawei executives passed on their thinking about future growth: Compared with the past, Huawei emphasized the strategy of focusing on the “pipelineâ€, giving up unskilled businesses, and improving on the new Business strategy to achieve resource-focused and effective growth. The founder, Ren Zhengfei, also blew his horn in his speech in the 2012 annual report: male and female, vigorous, across the Pacific ... From now on, Huawei's dancing on the wave tip has attracted much attention. Growth growth In 2012, Huawei achieved sales revenue of 220.2 billion yuan, an increase of 8% year-on-year. The three major BGs of operator network business, enterprise business and consumer business accounted for 73%, 5% and 22% of revenue, respectively. These three parts were also summarized by Huawei as "Pipeline business", the three parts cooperate with each other to provide end-to-end solutions. The performance of enterprise BG and consumer BG in 2012 did not meet the expected target, and did not shake Huawei's layout of "pipeline business". At the 10th Global Analyst Conference, Huawei Vice Chairman Xu Zhijun reiterated his expectations for the business structure of the three major BGs, saying that the next five years will maintain a compound annual growth rate of 10%, and the proportion of the three major BGs will become operations Business (60%), enterprise business (15%), and consumer business (25%) can be regarded as the answer to "where does growth come from". Judging from the figures, enterprise business and consumer business will continue to be Huawei's growth engines for the next five years, and the carrier business will continue to serve as a stable granary role. Although customers of these three types of business all have the same demand for big data information services, Huawei has a very different way of reaching transactions with it. Over the past year, Huawei ’s efforts and frustrations in the enterprise and consumer businesses have confirmed that Huawei ’s intention to replicate the operator ’s successful model in a short period of time encountered problems. Xu Zhijun bluntly stated that Huawei is aware of this challenge at the analyst meeting. He also announced that he has made strategic adjustments, especially for the corporate network BG, from a direct sales model of everything, to a "integrated" strategy that relies on partners. For operator BG and consumer BG, they mainly focus on the mid-to-high-end market and pursue profit performance under scale. From the perspective of the global market, Huawei, which is in the LTE harvest period, needs the two BGs to cooperate with each other to provide operators with a complete solution. The founder Ren Zhengfei used an internal public email to clear up the most critical questions about Huawei: In the email sent to all employees on April 28, Ren Zhengfei said that Huawei will not consider listing within ten years, and his family will not take over. Will maintain the transparency of "friends with the text". Profit profit If it is just growth, Huawei ’s wave of long-wave dances will not last. Huawei ’s management has also emphasized “effective growth†many times in its annual reports and analyst meetings. Xu Zhijun said that Huawei's future growth will mainly come from developed markets, excluding the United States. According to the spirit of Huawei's internal documents, it is shrinking the front line and focusing on high-quality customers in developed markets, turning from radical business methods to assessing profits. Huawei has the basis for selecting markets. In the operator market, 45 of the top 50 operators in the world are Huawei customers. The management services related to the stock market have maintained a compound growth of 70% for 6 consecutive years. The Single platform plus SmartCare professional services are "locked" Operator customers in the transition period. Even the less-than-expected corporate business BG and consumer BG are, in a sense, trade-offs for profit. The enterprise business department last year continuously launched all-in-one machines and cloud data center switches that are several times ahead of the industry performance indicators, aiming at high-end enterprise-level business. Big low-end products. Now Huawei's products represent high quality and high prices in various markets, and in the long run, the overall TCO reduction and sustainable evolution capability will still be brought to customers. Profits come from here. In the future, Huawei will further focus on the high-end market: operator BG covers the world, and future growth will be in developed regions, excluding the United States. Enterprise BG is a business with an enterprise, focusing on Europe, China and 26 countries with enterprises. Consumer BG will further focus on more than 30 countries, mainly in markets with high demand for smartphones. Pass the voice of the leader An interesting question for Huawei, who has stepped on the cusp of the waves, is: As Huawei's former rivals continue to fall, will Huawei, which is good at achieving "anti-surpass" with "tracking and imitation", also fall into the loss of "leader" Confused? Can Huawei assume the responsibility of the industry leader? What Huawei wanted to convey at the 10th Global Analyst Conference was the voice and image of the "leader". This is also Huawei's first attempt to play the role of "leader". Xu Zhijun took the initiative to talk about this, he said with a firm and serious tone: "No company in the world has been involved in operators, enterprises and terminal markets at the same time. If Huawei can succeed, it is a miracle, so Huawei knows what it will face in the future. The challenge will be more focused, effective growth in the areas involved, and will be more open and transparent, and strive to create a business environment suitable for Huawei to survive. " Listen clearly, the leadership that Huawei wants to show is not only in the communications industry, but also the greatest company. But the first thing Huawei still has to cross is Ericsson. In the past hundred years, Ericsson has always led the pace of the industry, from digital mobile communications to today's network society, and has constantly renovated its business model. Although Huawei surpassed Ericsson with a profit gap of approximately $ 1.5 billion in 2012, Huawei may not be inferior to Ericsson in any one product, but in the eyes of the industry, Huawei also needs a more advanced business form. A middle-level manager in charge of Huawei's global carrier market is also very distressed: even if Huawei has won 50% of the equipment supply from customers, but customers often mention Huawei's attitude, often staying in the "Made in China" understanding. If Huawei wants to reverse this situation and prove its leadership, it must "change the way it does business with customers" from a knock-on-door sales image to a partner who holds wine to discuss business with customers. Huawei's management has also vigorously advocated the transformation from "sales to marketing, from marketing to comprehensive marketing". To this end, BGs have launched business strategy solutions to endorse "leaders". Operator BG talks about GDP and information industry, and proposes that Huawei will form a closed-loop solution to help operators find new business growth points; enterprise business proposes cloud data center services and big data analysis platforms, hoping that IT systems will not only solve enterprise efficiency Problems, it can become a master of business improvement; the professional service product line emphasizes TVO-based management services, which is an advanced service system that directly interfaces with operations; the fixed-line product line that has just won the world ’s largest 100G China Mobile tender is launched The "BOOST" business solution hopes to enter the operator's business system from four dimensions. For Huawei, the introduction of business strategy is another magnificent upgrade from the hardware to the solution in the past, which is not a small improvement. Whether Huawei's business partners can be recognized by the market and gain a leadership position also requires Huawei to make it a reality more wisely. â– High-end sound Huawei CEO Ren Zhengfei: Take advantage of a hole For more than 20 years, we have basically made a hole and formed the united struggle of 150,000 employees. If we can insist on "putting out a hole, making a hole", "the next one will not be Huawei", if we disperse the principle of "making a hole, making a hole", "Next Perhaps it may be Huawei that fell. " Once large enterprises in history have passed the inflection point and entered the downtrend channel, few of them have turned back successfully. If we don't want to fall, then we must repent ourselves, unite and work hard. Huawei's rotating CEO Guo Ping: Focus on the pipeline Today, communication has become a necessity for people's lives. Due to its small consumption and full competition, we believe that it has little to do with the economic cycle and is limited by the financial crisis. Carrying large traffic, laying out our product solutions around the transmission and forwarding, storage and processing, acquisition and presentation of information, and truly realizing the user experience of "high bandwidth, multiple services, and zero waiting" is our mission and responsibility. We will continue to increase our strategic investment in the pipeline business, with the goal of making the information pipeline "wider, faster, and wider in coverage" and become one of the leading players in the ICT industry. Huawei Chairman Sun Yafang: Achieve Full Interconnection Based on grasping the future trends, Huawei is committed to helping customers build a more efficient and integrated information logistics system to realize the full interconnection between people, people, things, and things. By closely connecting people, thoughts and things, we continue to inject power into our dreams, stimulate the spark of innovation, promote the continuous evolution of technology, industry and human interaction, and create a better world. Xu Zhijun, Vice Chairman of Huawei: Three BGs Create Miracles No company in the world has been involved in operators, enterprises and terminal markets at the same time. If Huawei can succeed, it is a miracle, so Huawei knows the challenges it will face in the future and will focus more on the areas it is involved in and obtain effective growth. Be more open and transparent, and strive to create a business environment suitable for Huawei's survival. 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