Hi guys, good evening everyone. Thank you Professor Jeff Skinner for inviting me here today. And, many thanks to professor Chandy for coming tonight.
It’s great to be at LBS today for such a special event. I imagine that most of you, when you first saw the title of today’s speech as ‘Creating the 21st Century Tech Company’ – yes, a tech company – might have expected a Geek, techie, or most likely a male to be here. But, it turned out to be a lady. So, first of all, let me introduce myself to you.
I am Glory from Huawei’s consumer business group. I have been with the company for almost 15 years, having started as an engineer in R&D. I have travelled through a broad range of territory during my time at Huawei: from a sales for the overseas market to the spokesperson for the consumer group. I also worked with the team to establish Huawei’s e-commerce business. And, today, I head the global brand and marketing team.
Before I get started, I have a question for you. How many of you have been to China?
I have two more simple questions. I know that many of you here today major in marketing and retail and luxury goods. You know what brand awareness is. Here, I have three figures. Can you match three brands to these figures? I want you to think about Apple, Samsung and Huawei. Okay, here come the figures of brand consideration – the growth of consideration over the last year. Can you still match the figures? Yes, while we still have a long way to go to ensure people know who we are, we feel inspired by the great momentum of our brand growth.
Another small quiz: here I have three numbers to reflect the price of a smartphone. One is the average price for an Android phone, while the other figures are the average price for a Samsung and Huawei. Can you match them?
Ok, let’s start off today’s sharing. Think back five years ago, if you can. How many of you had heard of Huawei then? Can you put up your hands?
Unless you are a real techie or a Chinese, it makes sense that you did not know us at all at that time. Huawei set up in the year 1987, but back then we were a B2B company. We sold our base stations or switched to the carrier instead of the end consumers. That is why, although we were already the 2nd largest telecom network provider in the world and virtually served a 1/3 of the world population – still, few consumers knew us well.
5 years ago, we made a bold decision to step into the smartphone market with our first Android smartphone. Yes, that is it. It was called Ideos. Can you still remember your very first smartphone? It might not look as good as the phone you are using today. At that time, the industry response to our first try was underwhelming. More doubts than applause. Analysts doubted that a B2B company could build success in a B2C market. It was almost the Achilles’ heel in this industry that there was no one single brand that could be successful in both a B2B and B2B market.
In fact, many analysts thought we were totally insane…
After all, smartphone had become one of the word’s most - if not the most - competitive categories. There were so many players: Samsung was taking off, and HTC was making a noise. Microsoft and Google had just jumped in. Even the traditional computer companies Dell and HP were screening to enter.
So, a few years after we jumped into this industry, it was painful for us to find the hard truth that the smartphone market was not sexy at all. Instead, it was bloody. Even some of the world’s best tech companies were struggling to make a profit. A lot of them were losing money. While some of the big potatoes fell by the wayside. Today, many of the brands no longer exist.
How about us? 4 years later, and up until the end of last year, our performance is at 108 million shipments while revenue has soared by 70% to $20 billion.
Media began to pay attention to us - even in China, as the world’s most competitive market for smartphones. As far as I can remember, at any one time in this market, there have been more than 400 brands. We have surpassed Apple by 3 straight No.1’s: No.1 in market share for sell-out data, No.1 brand awareness, and the No.1 Net Promoter Score. We cherish the NPS a lot, because it is all about the word of mouth of the consumers.
越来越多的媒体开始关注我们了。在智能手机竞争最激烈的中国，最高峰时这个市场同时存在着400多个品牌。经过几年的努力，2015年我们在三个方面全线超越苹果位居中国的行业第一：市场份额第一（sell out数据而非sell in数据）、品牌知名度第一、净推荐值第一。这其中，我们尤其珍视净推荐值，因为那完全取决于用户的真实口碑。
This is a company that constantly surprises. And since we are not a listed company in the stock market. Huawei has been seen as a mystery.
So, the part of the story that you are probably most interested in is how did we pull this off in such a short space of time? Today, I want to share some of my experiences and try to disclose the myth of Huawei.
Some analysts forecast that one day, Huawei will beat other vendors in the smartphone business. It is nice to hear that. But we plan to do it in our own way. Because, far beyond creating a fancy and more powerful smartphone, we are actually creating a new business model for the IT industry, during this transformational era of the 21 Century.
Before I introduce our new model. Let’s take a look at the traditional and dominant business models across the industry. I personally call it: The Innovation Guru Model. It begins with one man – yes, it is almost always a guy! Picture a passionate leader who sets a visionary mission for the company, perhaps a drive-less car or a space shuttle. And, then come the venture capital investors who smell the blood and take big bets. They are expecting a bigger return and always push the company to deliver quickly. The engineers are gathered to deliver against a set plan. Then comes the final product – some are made in-house, while others are outsourced. This is a typical Silicon Valley model of a tech company. Of course, there is much to be learnt from this model.
The second model in our industry is the Conglomerate model. The pioneers of this type of model are the Japanese and South Korean companies who merged in the postwar era of the 1980’ and 1990’. These companies became hugely successful by becoming the experts in high tech manufacturing. They built their capabilities in material, engineering and, most importantly, the assembly of key components.
Many companies adopting these two models became hugely successful in their time. But, since we are entering into a new era of web 2.0. We see the rise of the co-production, social booming, and the merge of crowd culture. Because of the advance of technology, people are better connected than ever before. We see significant changes in how people work and socialize.
You may be quite familiar with this picture – one we call the Starbucks Office: people no longer need an actual office to work. They can deal with it whenever and wherever they go.
We also see the emergence of a new lifestyle – many call this the USB Life: we are more like a USB, and do not need to always hand over a big organization, you plug and play any time. You know that you can get access to your ‘peers’ and ‘organization’ any time you want.
我们还看到千禧一代新生活方式的出现---很多人称之为USB生活：人们更像是一个一个USB，不需要总是依赖某个大组织和大公司，他们可以随时“插入”和“读取”（plug and play）因为他们却行，他们可以随时连接“同伴”和“组织”。
These fundamental changes in the 21st century throw a lot of thoughts on company organizational structures. Because at the end of the day, company is all about a group of people gathering together to get things done. The top-down decision making process might not be as effective as it used to be.
So, at Huawei, we have come up with our own way – we call this the Global Innovation Hive. Imagine a group of bees flying towards the same direction without a leader’s dictatorship.
For Huawei, we only have one direction. F Far from the horizontal conglomerate model of controlling a key component and applying it into a bunch of stuff, we have been doing only one thing for 3 decades now: changing the way that people communicate. While it is great to have some visionaries who will take us to Mars someday, we still prefer dedicating ourselves to providing better smartphones that people can enjoy using every day. We do only one thing, one little minor thing – the smartphone!
Under this new age of web 2.0, we have come up with our own way of organizing our company. First of all: our founder is by no means a guru. When he started this company, he realized the power of a group of engineers. He believed that the power of this industry resides in the mind of each individual engineer. Ultimately, this is an industry based on sands: did you know that all chipsets come from the silicon crystal and that the ultimate source material of the silicon crystal is sand? A material that is virtually worthless without the interference of people.
Without a clear leader, we actually have 3 leaders in a row and they rotate every 6 months. That is Huawei’s famous rotating CEO system that relies on a democratic collective approach rather than a guru dictators。
Huawei is a privately held company. It gives us more freedom to control our destiny. You can see here the data that reflects our investment into R&D for the last 10 years: 37 billion US Dollars. The last 10 years have not all been good years for this industry. Many analysts say that Huawei went crazy, especially during the IT bubble burst years. But we never stopped investing. We know that we are aiming for the long-term and investing for the future.
More importantly, this is a privately owned company, but instead of being owned by its founder, it is owned by its employees. When Ren started this company he owned 100% of the share. Today, he has just 1% of stock of the company. The employees own the rest. This financial make up makes sure that a huge group of engineers are stick to the great platform to co-create.
So, all in all, this is a new tech model - a model that is based on crowd intelligence. And, a model that leverages the full potential of a web 2.0 economy. It is a democratic and open-source style configuration.
What makes this new model even more stunning is that we have rolled out our model on a global scale like never seen before in history.
We have set up our User Interface center in San Francisco, London design center near Great Western Studio, Paris aesthetics center focusing on design trends and materials, Moscow algorithm center, Japan R&D for communications, India software center and Europe 5G center.
So this is a hive composed of 170,000 employees among which 40,000 are foreigners. We have 16 R&D centers scattered across the globe, and 28 joint innovation centers as well. Among our employees, 45% are engaged in R&D.
As a company inspired by innovation hives and crowd wisdom, we even brought this collective idea to our external partners. That is why we collaborate closely with a wide range of partners including ARM for chipset, Harman Kardon for sound, Swarovisik for design and Leica for camera.
Can you still remember our first smartphone 5 years ago? Here are some of our latest flagships.
P8 the breakthrough in low light shooting and light painting. Mate S, the world’s first smartphone with press-touch functionality. Mate 8 the flagship in the business segmentation. People love it because of its longest battery life in the big screen market.
还记得5年前我们的第一个智能手机吗？几年以后，我们的产品已经有了很大的进步。这些是我们最新的旗舰产品。P8带给了这个行业低光拍摄和光影涂鸦的突破；Mate S是全球首款带压感触控功能的智能手机；Mate 8是商业精英人士的最爱，在大屏幕手机中，它的续航能力最强，广受欢迎。
Do you still remember this slide: if one day Huawei is to beat all other players in this market – if that is to true – it is not bigger number in sales or more shipment of the smartphones. Instead of making greater profit, we care more about what kind of innovation we will bring to this industry. And the meaning of the victory to us is the victory of a new business model focusing on crowd power over the mainstream model, which is more relied on individual authority. We learnt a lot from the past two models and came up with our own way of doing things in this new age. It is really a new thing. Hope you enjoy it.
Thank you for your attention.
来源： 作者：张晓云 发布时间： 2016-04-06 09:00:00