Huaweis biggest enemy is itself

Huawei's biggest enemy is itself

Huawei's annual investment in "shells" for "attacking the mouth of the wall" is 20-30 billion USD, and Huawei's R&D investment in 2015 reached 59.6 billion RMB, accounting for 15.1% of sales revenue; in the past ten years, the cumulative investment exceeded 240 billion RMB. In the past ten years, the cumulative investment exceeded RMB 240 billion.

More than 20 years ago, Ren Zhengfei, who was in his prime, started his business life when he was 43 years old.

After three years of failed business experience, running a "second-rate" company that was not well regarded, and engaging in the not-so-good telecom equipment trade, Ren Zhengfei drew a big pie for his employees and himself at the "beginning of the company": 20 years later, Huawei would become a world-class telecom manufacturing company.

In 2015, Huawei achieved sales revenue of RMB 395 billion, up 37% year-on-year, and net profit of RMB 36.9 billion, up 33% year-on-year.

"It's not easy enough for a person to make one thing in his life." Ren Zhengfei said that Huawei, which does not engage in finance and does not speculate in real estate, has been able to develop to today's point with industry, largely due to its insistence on going one way to the end, and this insistence has, to a large extent, helped Huawei successfully confront Cisco's "sniping" in the past, complete the challenge to Ericsson, and narrow the current distance with Samsung and Apple.

In more internal speeches, Ren Zhengfei emphasized Huawei's confusion after entering the "no man's land", and the role adaptation after changing from "follower" to "leader", and this confusion Perhaps Huawei in the "top" process to make mistakes.

So now, who is Huawei's rival?

Apple and Samsung are rivals?

Huawei terminal business "proud" achievements and helmsman Yu Chengdong's frequent "cannon" can not help but let Huawei's cell phone business has become the focus of the most attention.

Even Huawei's rotating CEO Xu Zhijun was asked how Huawei would surpass Apple and Samsung in 4 to 5 years, and he also joked about Yu Chengdong, "I also asked Yu Chengdong about this issue, and he said he was talking about surpassing Apple and Samsung in China, but later the report did not write 'China' (meaning it is in the world). But Ren and I (Huawei President Ren Zhengfei) are convinced it's not that the media forgot to write 'China', but that he didn't say the word 'China'."

In fact, four years ago, Huawei's terminal business was still struggling to survive, but today, four years later, perhaps even Yu Chengdong did not expect that he would often appear in fashionable occasions to tell an inspiring story of "how to catch up with Apple" for the outside world.

Yu Chengdong said that in the goal of catching up with Samsung and Apple, he did remove the "China", and now hopes to achieve the second in the world in two to three years, five years share to achieve the first, "because last year, Huawei is already the first in China's market share."

In the 2016 target, Huawei's cell phone shipments target 140 million units, of which the mid- and high-end accounted for 55%, that is, to reach 77 million units, and as of the end of March 2016, Huawei's high-end cell phone Mate8 global shipments have been close to 4 million units. Yu Chengdong said he hoped more Huawei phones would become high-end brands with sales of more than 10 million units. "Now Huawei, thinking about how to make consumers choose Huawei like Apple and Samsung, rather than rely on ultra-low price marketing anymore."

But are Samsung and Apple really the target of Huawei terminals?

In Ren Zhengfei's many speeches, we can see that Huawei is still the company that focuses on the "pipeline", a large investment in the terminal is more for the future paving.

"After the three industrial revolutions of mechanization, electrification and automation, a new industrial revolution is coming." Hu Huawei Vice Chairman and CEO Hu Hou Kun told reporters that in the intelligent industrial revolution, the market has a $15 trillion digital transformation market, Huawei positioned itself as an "enabler", which is to become one of the leading forces to promote the industrial ecosystem. In his view, Huawei understands the intelligent industrial revolution, there are two fundamental foundations, one is the Internet of everything, and the other is the intelligent applications based on the Internet of everything, which will deeply transform our traditional industries.

Cell phone industry as an extension of the terminal, Ren Zhengfei is the reason for Huawei's "heavy" terminal: the future may be the software world, you can grab a hand in the hand? The display of all human intelligence is the terminal (not only refers to the cell phone), so the future development prospects of the terminal should be flourishing.

"The terminal is a display most needed by human civilized society and will not be without a future, only that at present we have not invested enough and have not been able to fully grasp the point of opportunity for the development of human society." Ren Zhengfei said that the goal of Huawei terminal is to "produce watermelon on the peach tree", so it seems that Apple and Samsung is obviously not the ultimate goal of Huawei terminal.

The confusion of no man's land

Who is Huawei's enemy in the end?

The reporter once asked Ren Zhengfei this question in an interview two years ago, when his answer was: himself.

"Huawei's biggest enemy is itself, and it is itself that has deviated from the needs of customers and the changing trend of technology." Ren told reporters that excessive worship of numbers, excessive control of costs, excessive pursuit of corporate group size, and curbing of creativity, the excesses of management have brought a number of large American companies to their knees. Huawei wants to avoid the loneliness and self-inflation of managers, to be customer-centric, and to achieve cross-discipline and cross-departmental process integration and coherence.

Although Huawei's annual investment in "shells" for "attacking the mouth of the wall" is 20-30 billion USD, Huawei's R&D investment in 2015 reached 59.6 billion RMB, accounting for 15.1% of sales revenue; in the past decade, the cumulative investment exceeded 240 billion RMB. In the past decade, the cumulative investment exceeded RMB 240 billion. However, Ren Zhengfei still says that Huawei's current level is still at the level of engineering mathematics, physical algorithms and other engineering science innovations, and has not really entered the basic theoretical research. As it gradually approaches the limits of Shannon's theorem and Moore's law, while theories on high traffic and low latency have yet to be created, Huawei already feels that the future is uncertain and cannot find a direction.

Now Huawei is gradually attacking no man's land in the industry, in the predicament of no one leading the way, no established rules, and no one following.

He stressed that major innovation is the law of production in the no-man's land, no theoretical breakthroughs, no technological breakthroughs, no massive technical accumulation, it is impossible to produce explosive innovation. Huawei follow people running "opportunistic" high speed will gradually slow down, the creation of the responsibility to guide the theory has come.

"What is the sign of success? The world's 68 strategic highlands, we only entered three or five, how to call success?" Ren Zhengfei said, this is not crisis awareness, this is the assumption, the assumption of the future direction, to see where you are now." In the face of rapid growth of Huawei, in today's speech, Ren Zhengfei still did not talk much about how much "cutting-edge technology" Huawei has reserved for the future, but in the internal constantly remind Huawei and the future of the gap.

Perhaps like the recently revealed Ren Zhengfei and the management team of the Institute of Discipline said, "The world is bigger than the world, is your heart", which may be one of the support points of whether Huawei can become a top international company in the future.