Huawei CEO Ren: in the process of entering the high-end market, do not ignore the low-end market

This paper comes from the speech of Huawei's president Ren in his internal strategy retreat last November 14.

Our company, like a race champion, finally ran to the edge of the world. Big River, Big Sea, the torrent of information is coming up, we have the opportunity to brave the wind and waves, to have the courage to fight the world. But if we are still extensive management of the company, see opportunities, can only exclaiming, if we can not do heroic times out, not an army on the battlefield, can not hear into criticism, how to achieve industry-leading? So we have to take the opportunity to seize the transition of the great times to exert!

First, in the process of entering the high-end market, do not ignore the low-end market

We are fighting for high-end market at the same time, we must not lose the low-end market. We are now the "tip" strategy, focusing on the full force forward, I am very worried about, "head" into the, "buttocks" still exposed outside. If low-end products let others occupy the market, it is possible to nurture potential competitors, the future high-end market will be affected. Huawei is from the low end of the gathering energy to enter the high-end, how can others not repeat our path?

Low-end products to achieve standardization, simplicity, life cycle maintenance-free. We do not lower prices, low quality roads, which will destroy the strength of our strategic offensive. In the technology and service mode, to do others can not compete with us, that is, large-scale flow of water. Customers want to add functionality, buy high-end products to go. This is the Mikania micrantha theory, and we now have this condition. (Zhijun: To deal with China's mobile phone market, we must distinguish the brand area. Put the price of high-end products, build a brand, you can earn money; low-end products, is high-quality, standardized, low-cost, life-long not bad, software upgrades easy. )

In the face of the flow of the era of traffic management changes, the future network stability of the brand impact is very large, we have to establish a large quality system architecture. In the past our quality system is concerned with products, engineering, the future quality system from culture, philosophy ... In all respects, so we will be in China, Germany, Japan joint establishment of a large quality system capacity center.

Second, focus on channel, with continuous innovation as the main, allowing a small number of forces have borders to subvert innovation

The internet always says subversive innovation, we should insist to create value for the world, for value and innovation. We are still focused on the social needs of the next 5-10 years, most people do not pay attention too far. Most of our products still attach importance to continuous innovation, and this path is resolutely taken, while allowing a small number of new forces to subvert innovation, to explore the "nonsense", how to subvert all can, but to have borders. This subversive innovation is open, continuous innovation can absorb energy, until the future subversive innovation into large seedlings, can also reverse absorb the energy of continuity of innovation.

The company should focus on the channel like the Yangtze River water, sending out huge electricity. Regardless of the size of the product to be related to channel, the newborn seedlings should also focus on the channel. Do not deviate from the channel, otherwise the company will be divided into two management platform.

Why do big companies run so hard? Before we a project decision, to pass over 470 people approval, the speed is too slow, inside to allow everyone to have a path to go. and channel more than 470 people approve too much, should first cut off most. (Ding: The main process should adhere to the principle of simple and efficient, in principle, no more than 5 approval points.) )

Third, the adjustment pattern, the high quality resources inclines to the high quality customer

We want to adjust the pattern, high-quality resources to high-quality customers tilt, can be in a small number of countries, a small number of customers to start this step, so that we will bind one or two strong, the ability to build together.

In this era of heroic times, we must dare to lead the world, but after gaining advantage, can not be everywhere with people as enemies, to cooperate with others. I was asked, "What is your business path?" "I said," We have no business way, is to serve the customer. "These years the lesson is very profound, not all operators can survive, some operators drag our money does not return, so, as well as to give everyone a raise a little salary."

In addition, I do not advocate the product line and the region too tightly combined, the combination of too tight results, is to meet the needs of low-end customers. Because the region reflects not the future demand, but the immediate small demand, will divert Huawei Company's strategic direction.

Iv. Human resources to make the "heroes under the Xi Yan"

Huawei has formed a mechanism capable of condensing 150,000 people, but it is too tight and not active enough to dissipate and create new vigor.

First, the aim of the reform is to fight. Sweden's "Battleship Vaasa", where decorated, there carved, in order to look good also stamped a layer, the result of a blow to the sea wind sank. The purpose of a battleship should be combat.

The reason why we do not enter the big ring in Moscow, only by material incentives is not used, lack of strategic vision. So I always call on everyone to see the Normandy landings. Huawei now does not lack the "Huang" hero, but the lack of strategists and thinkers, people do not want to "look at the stars," want to have real power. And before our assessment system is too specific, so that people who have great wisdom in Huawei has no status. Why are these seeds not successful? Because of the lack of a large platform, there is no soil, can not plant crops.

Second, we elongate the top of the human resources pyramid, to see endogenous forces, the introduction of foreign "bee", but also within the main. Not to give insiders a hope, internal effort is not enough. Huawei always likes to do things in a gradual way, we in the strategic decision-making process, to be good at change, the future of the world may not be in the hands of qualified personnel, we have to admit that young people can have a future, do not always think that young can not be the admiral.

We have to find such a good learning of the budding, dare to give them the opportunity to "Ling" war, not Dead is the general, Dead is a hero. This will restore confidence to everyone.

Third, the human resources pyramid base to be alienated, change the march. I think the times give us the time of up to two years, if the human resources policy adjustment, we will face a large number of brain drain.

The two years of human resources reform, the progress is very big. In addition to the reform department this year, the departments without reform are still marching in the march. Seize the opportunity to change the times, to make a new human resources model, change the march. This time I want to say in the cadre meeting, a person in the best role, best contribution, best contribution time period, should give him the most reasonable remuneration. Not like me, to 70 or 80 years old anything more, (also said) Why I ling when not more to eat a bowl noodles! Different roles have different time periods, different majors have different time periods, different professional roles have different time period. Why not let the best contribution of the people in the "Ling" when the incentive to wait until he is old to give it? No level, no bonuses. We want to see the growth of new things, to see excellent existence.

Four, the Times to create a hero, the great age will certainly produce a hero. We must let the company 50%~60% people are good molecules, and then in the excellent seed to choose better seedlings, intermediate molecule 20%~30%. Let the good guys squeeze a little backward person so that they may also have a change. To the hero is also not perfection, to accept the beauty of shortcomings. I have in the Wenchuan earthquake relief document instructions "As long as the Wenchuan relief line, urine pants is also a hero." "A total of 427 gold medals. A little achievement is a hero, the future will be a powerful army on the battlefield.

Pay package system is to push backward people out, "reduce people, increase production, raise wages." This year, the grassroots pay structure has been adjusted, starting next year for senior cadres, senior experts pay reform. Large data flow of the real problem will be in front of the Times, two years later, will begin to charge, we have a Aooh team, we win!
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