Chapter 52 Provide customers with overall solutions

Ren Zhengfei's strong thinking has created Huawei's endless overall solutions, which are a bit like an overall solution aggregator. "Overall product" decomposes the product into four levels: basic product, expected product, additional product, and potential product, which are integrated by the core interests or core values ​​of customers. "Overall product" can be explained by a "1:2:7" statement in the auto industry, that is, selling cars can only get 10% of the profit, while selling maintenance is 20%, and selling accessories is as high as 70%.The value of the supply chain can only be maximized through services.Service is no longer a cost center, and service has become an important profit center or profit base.Low cost and differentiation used to be the two competitive weapons of the manufacturing industry, but the new trend is that the manufacturing industry must provide more integrated products or integrated solutions that include services to create a competitive advantage.

Huawei sticks to the supplier of communication equipment and does not engage in communication operations, but its products and services have deeply penetrated all the nerve endings of operators.Huawei can get involved in the system construction, maintenance and management of all operators, including base station systems, operating systems, and information management, all spare parts and related products, and various software, chips, and services.At the Beijing International Communication Exhibition in 2006, Huawei focused on displaying a comprehensive series of products and solutions covering mobile products, fixed network products, optical network products, wireless terminal products, data products, business and software.Such an in-depth extension of the supply chain enables Huawei to be well aware of all problems and links in the operator's system.In such an overall solution, the operator becomes a shell, and Huawei becomes a content provider.Any extension and expansion of operators actually creates new markets for Huawei.And in some cases, Huawei is even more able to provide operators with new ways to add value and actively create new value for them.

Huawei's overall solution is not only involved in the communication industry, but also the securities industry, banking industry, logistics industry, digital TV industry, new media industry, network security, enterprise informatization, etc. Extended overall solution aggregator.For the current hot IPTV field, Huawei has focused on launching an overall solution, which can realize a variety of IPTV value-added services such as on-demand, live broadcast, time-shifted TV, karaoke, information browsing, and online games. Huawei's overall solution aggregator has also formed a large barrier in the process of creating value for customers and itself.Because of Huawei's meticulous care, it has cultivated the habits of customers.Huawei people are members of their company. No matter what kind of failure occurs, Huawei people will devote themselves to solving the problem.This kind of experience and habit cultivation makes it impossible for customers to leave once they enter Huawei's overall solution aggregator.As a result, competitors have been unequivocally excluded, and Huawei's position as an equipment supplier has been consolidated.There is no well-formed theory here, but Ren Zhengfei's clear and strong corporate thinking runs through it all.

The new economy is increasingly smacked with a holistic experience.The needs and experiences of customers are without boundaries, and the aggregators of the overall solution are also without boundaries.Only in the relationship experience of interacting with downstream customers at any time, can the unbounded overall solution aggregator show its market power more and more.