Huawei Deng: Strategic Planning Guide billion dollar scale business transformation

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For a very large multinational company such as Huawei, strategic planning is a very important methodology, especially in the process of strategic transformation played an important role. Huawei has been implementing the five-year strategic plan since 2004, and has been rolling out its plans again every year for the next five years, with the same year's business plan lock-in to ensure long-term attention and a short-term gathering. Huawei it is a process of decoding the five-year rolling strategy and the locking business plan, followed by change planning and process management, and finally to the IT system, thus completing the entire strategic transformation and business development.

January 2012, Deng, president of Huawei Software company, moved to the president of quality and process IT management as Senior vice president and CIO of the company, and put forward the Huawei IT2.0 concept. Huawei it has deployed it networks in more than 170 countries, more than 70 data centers, more than 800 IT applications, network bandwidth up to 70GB, cloud storage capacity of 70PB, and 28 customer joint innovation centers worldwide. With the rapid development of Huawei's business, Huawei's it has been responding to many strategic challenges.

Faced with such a large and complex IT system, Deng both supporting internal companies and supporting external business innovation. He proposed Huawei IT2.0, which is the fourth phase of Huawei's IT business. Huawei's It 2.0, powered by cloud computing and big data, is now fully functioning to drive Huawei's fast-track access to billions of dollars in clubs.

toward Huawei It 2.0

Deng joined Huawei since 1996 as President of the company's network product line, President of software company, president of quality and process IT management, and is now senior vice president of the company and CIO of the group. In January 2012, Deng moved to the IT department to put forward the IT2.0 concept representing the fourth phase of Huawei's it, in order to support the internationalization of the business from globalization.

Huawei IT2.0 is an open architecture that provides an open platform to support people-centric combat systems. IT2.0 's goal is to achieve transparent visual management of cash flow, logistics and information flow within the enterprise, and to achieve data sharing and efficient collaboration with customers and partners.

The third phase of Huawei's it is internationalization, from the domestic IT system to the global IT system, which includes more than 100 countries ERP on-line. In Brazil, for example, Huawei's ERP system was launched three times before and after the success. One important reason is that Brazil's complex tax and financial systems, and even different states, have different taxes and waybill. Therefore, the third phase of Huawei it took nearly 10 years to build a global network, including network, OA, ERP and so on to more than 100 countries around the world.

Huawei IT2.0 for the next 3-5 years, the company has set a major change target of two points: first, to establish a global-oriented joint combat system; second, to build a digital combat platform to improve operational efficiency. Especially when the first-line opportunity comes, let it system quickly adapt to the rapidly changing battle scene in the global market. To this end, Deng's Huawei IT2.0 is driven by both cloud computing and big data.

> In short, Huawei IT2.0 is building a global cloud-based data center on layer I, building an open PAAs cloud platform on the P-tier, and building a human-centric IT application layer on the S-tier. On the P-level, this PAAs platform consists of three parts: the H.A.E cloud Platform, a large number of Huawei applications can be hosted on this platform, support elastic expansion, and include the software package platform and big data platform. The S layer, based on the application cloud, builds a human-centric combat system that takes it from the support function sector to the support of process roles and people-centric it warfare systems.

In this way, through the implementation of Huawei IT2.0, Deng helps Huawei to realize the business scenario, to solve the business scenario as a business moment, then establish the corresponding business rules, corresponding business rules to establish micro-services. The so-called micro-service, is the former traditional business services to form a micro-service, encapsulated in the Container/docker container. This makes the entire software architecture change greatly, can respond to the demand change quickly, provides the better service.

Future-oriented strategic thinking for it construction

Deng very much emphasizes the future-oriented strategic thinking, as well as the future strategic thinking to match the command and combat system, Huawei IT2.0 on the "U.S. Military 2020 information operations in the white Paper" for the future of the global operational scenario hypothesis to reverse the current new weapons, research and development system, command system and information system construction and other ideas.

With over 170,000 employees in the world, we have more than 500 offices, 16 research and development centers worldwide, and five global manufacturing centers overseas. Huawei's 2015 revenue is expected to reach $62 billion, and this year will increase by more than 30%. Huawei's telecommunications network, IT equipment and solutions, and intelligent terminals have covered more than 170 countries and regions worldwide. In the face of such a large and complex internal and external environment, how to target a country or region specific sales opportunities, the formation of a global command and combat system immediately?

Now, Huawei's it can support the management of flat, based on the value network platform of collaborative operations, so that Huawei's business operations organizations to become capable of further stimulating organizational vitality, improve operational efficiency. Huawei has more than 70,000 developers, and when it comes to research and development projects, the project leader buys the resources needed on the resource line and releases the resources back to the resource pool once the project is completed. This forms a resource line and operational command line, usually by the IT department responsible for resource pool quality management, the time to combat the resources to the command line.

Five-year rolling strategic planning ensures successful transformation

Huawei's five-year rolling strategy is in fact a system that manages 170,000 employees and businesses in 170 countries and territories across the world by managing their five-year rolling strategic plans at three levels of industry, region, and customer base, and interlocking relationships with one another. The five-year rolling strategy ensures the general direction of Huawei, while not running short-term, such as the five-year rolling strategic planning and the same year's business plan on the lock methodology, Huawei did not join the PHS market competition. In the five-year rolling strategy plan, the judgment of the future is usually carried out in several scenarios, and a symposium is organized for each scenario.

Huawei's five-year rolling strategy includes two methodologies, one for business leadership models (business leadership MODEL,BLM) and one for the commercial Executive Force model (execution Model,bem). Among them, BLM includes strategic intent, market insight, innovation focus and business design four modules. Strategic intention represents the entrepreneur's strategic goal for the future, market insight for all kinds of macro, micro, competitor and self-analysis, innovation focus on the basis of the foregoing analysis to find specific innovation points, business design for the corresponding business model adjustment, optimization and redesign. BEM includes key mission decomposition, organizational structure design, talent and key competencies acquisition, corporate culture and employee motivation. All of these have formed a methodology system for an ultra-large enterprise with a more than 60 billion dollar revenue scale.

Deng's daily focus is on change planning and change management. Change planning is to find the key to driving change, based on the direction of the next five years and the specific goals of the second year. For example, Huawei last year set up a two-year reconciliation, three-year group opened, five years to achieve the "5 1" change goal, of which "5 1" represents the software 1-minute download, PO in 1 days processing complete, Production Module 1 weeks to complete production, 1 months of goods sent to the customer designated anywhere in the world, Acceptance is completed within 1 months after installation, and this "five 1" is the key node to drive change.

Based on the future-oriented thinking, under the guidance of the five-year rolling strategic plan, Deng is taking the lead of Huawei IT2.0, which supports the scale of billions of dollars in the future and the parallel and large-scale development of business model, B2P, consumer and consumer, and constructs the digital joint operation system for the first-line business. Deng said: "Huawei's opponent is their own, we are now the size of the industry's largest enterprises, then Huawei is to surpass ourselves!" "(Wen/Ningchuang, the first itvalue of this article)

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Huawei Deng: Strategic Planning Guide billion dollar scale business transformation