Chapter 45 Only the technology sold is valuable

Ren Zhengfei said: "Huawei's products may not be the best, but so what? What is the core competitiveness? Choosing me instead of you is the core competitiveness!" Dare to say an honest confession so confidently. Ren Zhengfei said: "Technicians should not worship technology religiously, but be engineering businessmen. Your technology is used to sell money, and the technology sold is valuable." This has set the tone for Huawei's technology research and development.For this reason, Huawei's technology research and development and innovation have always focused on the needs of the market. If the R&D personnel work behind closed doors, the result can be imagined. It must be a pile of "scrap copper and rotten iron" left at home.Technology needs to be market-oriented. Huawei introduced IBM's IDP R&D process, and the front end is the customer's needs.

In order to prevent R&D personnel from only pursuing technological advancement and lacking sensitivity to the market, Huawei has rigidly stipulated that 5% of R&D personnel must be transferred to the market each year, and a certain proportion of market personnel must be transferred to R&D.Even if there was no such strict system in the past, R&D personnel would spontaneously visit the marketing department to learn about changes in market demand.The corporate culture of pursuing utilitarianism and practicality has penetrated into every corner of the company.A law has formed spontaneously: everything is guided by market demand.This has made Huawei successful and has benefited so far.In fact, most of Huawei's products that have achieved market success do not rely on any technological advancement.

But this does not mean that Huawei does not pay attention to technology research and development.Huawei, which invests heavily in research and development every year, pays more attention to new services and new functions of products than its competitors. "Right now, price is no longer the most favorable means of competition, because the quotations of multinational companies are also very low. Often it is the difference in one or two functions that determines who the customer chooses. Now we are more breathless than who we are, and we will win if we are more breathless. It is!" said a Huawei marketing person.The discovery of new services and new functions depends entirely on the keen sense of the market of the R&D personnel.

In 1997, people from Tianjin Telecom pointed out that "it is very difficult for students to make phone calls on campus".Fang Weiyi, vice president of Huawei's Central Research Department, recalled that Ren Zhengfei gave an urgent instruction at the time, and this was a good opportunity to respond immediately.Huawei released the 201 campus card two months later. After the launch, the market responded enthusiastically and it was quickly rolled out across the country.By the time other companies reacted, Huawei had been doing it for nearly a year.In fact, this new service only needs a "little" technical innovation on the original 200 card number function of the switch, but it is this small innovation that can bring new profits to operators, which makes Huawei turn its disadvantage into an advantage in the switch market , In the end, the tiger's mouth seized the food, occupying 40% of the market share.

Another reason for the success of Huawei's products is that it can respond to customer needs faster than competitors.Guo Haiwei, director of Huawei's marketing planning and promotion department, said that in 1999, Huawei became the first company to cooperate with China Mobile in the prepaid service of China Mobile.At that time, they had been aware of this upcoming market in advance, and secretly made technical reserves.As soon as China Mobile made a demand, Huawei immediately responded with all its strength.The first phase of the project has paved sites in 25 provinces and cities across the country, and only Huawei has undertaken the construction.It is said that in two years, Huawei did not earn a penny.As a result, after the launch of the business, China Mobile tasted the sweetness and gave Huawei 820 million yuan at one time in the second phase of bidding. This is the largest contract in Huawei's history, and the profit margin is much higher than other products.Later, other manufacturers followed up, and now the price of the project is only 1/5 of the original price.

In Huawei, anyone can do research and development, whether it is a fresh graduate from a university or a technical engineer recruited by the society. This is the uniqueness of Huawei's technical management.And that's unthinkable in other companies.It turned out that this was a leap in R&D management achieved by Huawei after experiencing the pain of "relying too much on technicians".After experiencing Zheng Bao's physical problems, Li Yinan's departure, and the loss of early internal entrepreneurial technical talents, etc., without core technical personnel, Huawei is on the verge of R&D collapse.Therefore, Ren Zhengfei proposed that he should cultivate tens of thousands of outstanding talents.Through the streamlining of development technology, the process control of each development document, and the establishment of documents, each development engineer becomes a "process" of the process. Even a novice in research and development can develop with such standardized documents.

Huawei's products and solutions have been adopted by 45 of the world's "Top 50 Telecom Operators", covering more than 100 countries and regions, serving one-third of the world's population. Huawei is recognized for its high quality and innovative products Well respected. In 2009, Huawei's market share reached 20%, the annual sales revenue reached 149.1 billion yuan (about 21.8 billion U.S. dollars), a year-on-year increase of 19%, and its net profit reached 18.3 billion yuan (about 2.7 billion U.S. dollars), surpassing Nokia and Siemens. And Alcatel-Lucent, took the second place in the global communication equipment manufacturing industry, realized Huawei's goal of "one-third of the world", and ranked among the world's top 500 companies, becoming the leader of the global communication equipment manufacturing industry.