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Huawei reveals how to become the best private enterprise in China

In 2012, Huawei's annual sales reached a staggering 220.2 billion yuan - surpassing Ericsson to become the world's largest telecommunications equipment supplier.

In the same year, Huawei announced that its profits exceeded 15.4 billion yuan (this does not include the 12.5 billion yuan in red envelopes used to distribute bonuses to employees). Also in this year, Huawei's R&D expenses reached 29.9 billion yuan, equivalent to the annual output value of many of China's top companies.

——This is one of the best private enterprises in China.

If you look at the data alone, in the 25 years since its founding, Huawei has grown from 6 employees to 150,000 employees (including more than 30,000 foreign employees), from starting a business with 20,000 yuan to sales of 220.2 billion Yuan, as a private enterprise with no background, no resources, and lack of capital, Huawei has eliminated many century-old giants in the West. It is regarded as the "ghost of the East" by many transnational opponents.

In fact, in the mid-to-late 1980s when Huawei started its business, more than 400 communications manufacturing companies were born in China. However, this industry is destined to be a death race, and the winner must be the one who dies the most. The late one. Huawei survived until the end.

Huawei's logic

We must learn from Huawei, but Huawei cannot be copied because "immediateness" cannot be copied. But learning from Huawei will undoubtedly benefit people a lot. Its successful systematic logic, pioneering thinking and precise grasp of the market are all worthy of in-depth study and understanding.

Huawei’s “tie-less relationship” extends to every corner of Huawei’s national and global markets. Unlike foreign-funded companies that only target decision-makers, Huawei builds a comprehensive customer relationship with decision-makers, technical personnel, users, operating departments, and financial departments.

Fighting Youth Ren Zhengfei said: "Customer relations are a science." When Huawei is in the international market, it has also inherited and carried forward this universal customer relationship working method. From carrier testers and ordinary engineers to directors, CTOs, and CEOs, Huawei employees have all-round contact, allowing customers to Feel respected. The first point of Huawei's leadership quality model is "the ability to develop customers", which is defined as: "This is a behavioral characteristic that is dedicated to understanding customer needs and proactively using various methods to meet customer needs."

Some people are disdainful: Isn’t this just a human wave tactic? In fact, it is not easy to achieve this. Foreign companies do not have such a culture. Foreign companies generally recruit famous college students, provide them with favorable conditions, and are usually stationed in provincial capital cities. It is difficult for them to leave their hometowns, live in two places separately, and work in a foreign country for many years like Huawei employees.

How does Huawei achieve this? First of all, Huawei's recruitment principle is to recruit ambitious but impoverished people. Therefore, most of Huawei's employees come to rural areas and small towns and can only change their lives through hard work. What's more important is Huawei's corporate culture. Huawei's culture mainly consists of two points: first, a culture of struggle; second, not letting Lei Feng suffer. Simply put, if you work hard, you will get good rewards and opportunities for development and growth.

This talent model, combined with a striver culture, plus material incentives and growth opportunities, has allowed many young Huawei people to travel around the world, whether it is war-torn Iraq, poor and backward Africa, and Like the Middle East where the Puritans lived; at the same time, this also gives opportunities to young people. Many people become national representatives under the age of 30, go to talks with presidents and ministers, and work on projects worth hundreds of millions of dollars...

Perspective Five: The sense and speed of technology: Innovation is the trump card - Huawei’s efficient R&D and fast and accurate execution logic

Fang Meiqin, chief analyst of BDA Consulting Company, believes that Huawei fully embodies the characteristics of a new market entrant. The advantage of being a latecomer is to quickly occupy the market with low prices, good customer service and efficient R&D. Low prices and customer service have been clearly stated. What is going on with Huawei's R&D?

Efficient R&D of “Academy Home” Ren Zhengfei once publicly admitted, “So far, Huawei does not have an original product invention.

We have mainly made some improvements in functions and features, as well as improvements in integration capabilities, based on the R&D results of Western companies. Our R&D results are more reflected in technological progress in engineering design and engineering implementation. ”

It’s not that Ren Zhengfei doesn’t want to make original inventions, but the accumulation of knowledge and patents takes time and requires a large number of innovative talents, which is not the case with China’s human resource endowment. Huawei had to adopt a compromise The most market-efficient way:

① Quickly discover R&D business opportunities. Front-line staff listen to customers’ praises, complaints, and curses at any time, and study product problems immediately;

② High efficiency. R&D. Huawei’s 46 employees are R&D personnel, and they work together to achieve high efficiency;

③ All engineers must be “commercial engineers.” Engineers must go to the market, and marketers must come back to do R&D. Huawei has no academicians, just academicians (commercial engineers). If you want to be an academician, don't come to Huawei. "He understood when he started his business: Only the technology that is sold is valuable, and if it cannot be sold, it is equivalent to waste;

④ Apply for patents as soon as possible and accumulate a research and development foundation. In recent years, Huawei has applied for international patents every year The number of patents ranks first in the world, and it has applied for more than 40,000 international patents.

Huawei consultant Wu Chunbo compared Alcatel-Lucent and Huawei and found that the former takes three months to complete the research and development process. Huawei can basically take shape within a month. Therefore, although Huawei's product line does not have world-class advanced technology or forward-looking, it conducts product research and development to meet the operator's specific business and strategy, as well as rapid and accurate execution. Capability is the core competitiveness of Huawei's rapid expansion around the world.

Huawei's tablet computer adopts the same idea and has achieved great success.

This is Huawei's product development.

Huawei's future logic? Huawei's ability to find opportunities in these niche markets is inseparable from Huawei's long-term adherence to a strategy based on "flowers on cow dung" and never straying from reality to blindly innovate. , but to open up and innovate based on the original products. However, in order to achieve real success and become a real big player in this industry, Huawei terminals must be baptized and tested in the mainstream market.

In the fourth quarter of 2012, Huawei’s smartphone sales ranked third in the world for the first time.

Huawei’s business in the past was almost entirely for operators. From a certain perspective, Huawei’s It was born for operators. If in the past Huawei only needed to keep a close eye on Ericsson, then Huawei is now at a new starting line. The opponents it needs to target are Cisco, Google, IBM, Samsung, HTC, etc. Company. Enterprise customers and end consumers are particularly concerned about the brand. The key to Huawei's success is not to surpass its opponents, but to surpass itself. Will it create a new logic of success?

Ren Zhengfei’s self-criticism

If someone really wants to find the secret to Huawei’s development, they will probably find nothing in the end. Something that can be called a secret. If there is one, it is self-criticism, but it is difficult to learn. Self-criticism is Ren Zhengfei's unique skill - it is a manifestation of his own objective wisdom: even when dealing with himself, he must be objective. ——You can neither belittle yourself nor be arrogant, but always seek truth from facts.

Ren Zhengfei is one of the few entrepreneurs who can use himself as the coordinate and the entire enterprise as a benchmark. There are other such entrepreneurs. Buffett and Steve Jobs all use their bosses as benchmarks and calibrations for their companies. Since these entrepreneurs are coordinates, they know that if they want to change, they must act according to coordinates and principles. They are the kind of people who "start from now and start from now on." People who start by themselves.

“I don’t know how many days and nights it will take to count Huawei’s problems clearly... But as long as we continue to discover problems, continue to explore, continue to self-criticize, and continue to With land construction and improvement, there will always be a way out. "Ren Zhengfei's self-criticism, like Jobs's design taste, has been tried and tested.

This is why no matter how hard they try to imitate Steve Jobs, other entrepreneurs will not be able to create Apple products that taste like Apple. No matter how hard they imitate Ren Zhengfei, other corporate platforms will not be able to build them to that level. Taste and the spirit of self-criticism are highly individual internal driving factors and cannot be mastered by external imitation and emulation.

Huawei's development proves that a company with no basis, a company that started with nothing, a company that no one has real hope for, a company that is destined to "fail" can also be Reach a very high level through your own efforts. There will be no precedent in the future, and success will always be kind to those with the deepest intentions. As long as you are down-to-earth and positive-oriented, work hard on your internal skills, have an international perspective, and be good at system innovation, failure is impossible, but here Under such circumstances, there is little value in talking about success. Steve Jobs's famous saying, The Journey is the Reward (the process itself is the reward), seems to be a true comment on Ren Zhengfei.

Ren Zhengfei’s self-criticism is a kind of cognitive fearlessness. We say that Ren Zhengfei is an entrepreneurial machine. One of the powerful perceptual insights is that Ren Zhengfei has such a cognitive fearlessness.

Competing with all irrationality is the biggest attribute or core attribute of the competition machine. It shows that Ren Zhengfei has a strong criticality. This is a characteristic attribute that distinguishes him from other entrepreneurs. We can say that the characteristic attribute of Steve Jobs of Apple is taste, the characteristic attribute of Buffett is value, and self-criticism is the characteristic attribute of Ren Zhengfei - if a person can be strictly self-critical, logically speaking, of course he will Dare to compete with everything. Therefore, Huawei's continuous and rapid growth is closely related to Ren Zhengfei's continuous self-renewal and self-criticism. This entrepreneurial machine is constantly undergoing technological upgrades. Although he is older than most Huawei employees, he seems to be more able to keep pace with the times.

Self-criticism is Ren Zhengfei’s first ability, and he has even become a self-criticism machine—a negative feedback mechanism that continuously produces “a sense of direction for corporate development”, corporate behavior, and execution. Blind optimism returns to the response to the crisis, letting negative emotions ignite the flame of hope: "Without yesterday, there would be no today. While criticizing mistakes and backwardness, we also cultivate ourselves and grow a group of magnificent heroes. The team...must insist on self-criticism. Only strong people can criticize themselves, and only self-criticism can become strong."

If I have to forcefully name some of the magic weapons for Ren Zhengfei's success, I would say. I will choose the three items of self-criticism, management innovation and the pursuit of world class. However, these three items are basically the same thing. At least among these three, there is me in you and he in me, interpenetrating and connoting each other. And no matter which one you start from, talking about it is always the same. All aspects of Huawei will gradually be involved. The complexity of Huawei's organization is far beyond what we think of as a company, and Ren Zhengfei's ability to master this complexity is astonishing.

Ren Zhengfei’s insistence on self-criticism is like Steve Jobs’ insistence on taste, and management is to Ren Zhengfei what value is to Buffett.

Learn the pirate spirit from Huawei

When an enterprise organization is developing steadily, what it fears most is not gangsterism or corruption, but laziness and organizational fatigue. Just like people say "boiling frogs in warm water", when an organization has a history, it slowly begins to become rigid and loses the spirit of struggle.

Therefore, the organization should emphasize vitality, pirate spirit, and even banditry in the early stage. We say that Huawei turns scholars into warriors, but we ignore an intermediate link, that is, the first step is to turn scholars into bandits. It is very important to make them have banditry. Is this a Chinese invention? This is actually a truly universal human value for organizational growth. How did Europeans get to where they are today? How could Spain and Portugal become the world hegemons hundreds of years ago? What does it rely on? It’s about the pirate spirit.

Therefore, the United States has been able to get to where it is today because crows are always cawing in the sky above Washington, always spreading an ominous warning and sounding the alarm to the so-called prosperous times.

So, some people say that Ren Zhengfei made his company so big by imitating Mao Xuan, which is not true. Huawei culture is a culture that is neither central nor western, neither donkey nor horse. Western, Eastern, historical, modern, and military. Anything that is beneficial to Huawei's organizational and cultural construction will be used for us. used.