Houweigui: The brilliant transformation of innovators

Houweigui first "state-owned, authorized operation" of the operating mechanism of Houweigui, from 1997 to now, in his 13 years as president, ZTE from a raw investment of 3 million yuan processing enterprises to develop into the main business income of more than 60 billion yuan of the national Key High-tech Enterprises,　　China's communications industry as one of the leading enterprises, China's earliest implementation of internationalization strategy to enter the international market communications equipment manufacturers. This reporter Wang Gang 1985, the Shenzhen Special Economic Zone was established 6 years. The initial questioning of the special economic zone was even blamed on the 1984 visit to Shenzhen by Deng Xiaoping, whose unique open economy was completely liberated. Such a magical land also attracts a large number of ambitious people who aspire to create a career.　　Houweigui is one of them. He was 42 years old that year, as the aerospace system Shaanxi 691 Plant Technical Section Chief of the Houweigui 1984 in Shenzhen officially "sea."　　No one could have imagined that ZTE, who was born in 1985 from Houweigui, would grow from a small factory that invested only 3 million yuan to the Big Mac, which has a revenue of tens of billions of today. ZTE has struggled in overseas markets for 14 years and has expanded its business to more than 140 countries and regions. Our income for the first half of this year is more than 30 billion yuan, the high-end telecommunications operators in Europe and the United States market growth of more than 45%.　　Houweigui, founder and current chairman of ZTE, said to the Times weekly. Metamorphosis: From processing to communications manufacturing Houweigui has been a teacher, and later entered the DOS in Xian, a military enterprise 691 factory, from a technical staff has been the deputy.　　In 1984, Houweigui, 42, took several people from 691 plants to the south to start a business. "Many intellectuals still want to develop the country through knowledge and technology." However, this desire to the reform and opening-up after the real embodiment and realization.　　"Talking about the driving force of your own business, Houweigui said.　　In fact, there are not many channels for foreign countries to enter China, Hong Kong is one of the main channels, and Shenzhen is the closest place to Hong Kong, so Houweigui chose to set up ZTE Semiconductor company in Shenzhen, the predecessor of ZTE. The initial ZTE was jointly established by 691 factories and the Great Wall industrial Shenzhen branch (after incorporation into Shenzhen Guangyu Industrial company) and a Hong Kong electronic trading Company.　　ZTE Semiconductor Co., Ltd. registered capital of 2.8 million yuan, 691 plant accounted for 66% of the total capital. Houweigui at that time had a concept, that is to make China's IC companies to do larger, more competitive.　　However, due to the lack of access to investment, and IC industry is capital-intensive industry, so the start is very difficult, only through low input, fast production of the business to accumulate resources. "At the time we didn't want the country or our parent company to spend more money, risk it, and roll it on its own." In this case, I think the state-owned enterprises will not be too much intervention, and it is not too much baggage.　　Houweigui said in an interview with the media. Under pressure to survive, ZTE initially chose to doProcessing, that is, in the processing of telephones, Houweigui gradually to the communications industry has in-depth understanding.　　He saw that the infrastructure of communication in developed countries accounted for a large proportion of the national economy, while the Chinese communications industry was not even popular. The gap also implies potential.　　Thus, ZTE began to infiltrate the entire communications field from the telephone, and completed a magnificent transformation. Outbreak: "state-owned private" mode to promote growth talks about ZTE, the topic is always inseparable from its boss Houweigui pioneered the "ZTE Model"-"state-owned private".　　It is undeniable that, in the growth of ZTE, system innovation is the most important pushing hand. In 1990, ZTE's first digital switch was put into production and companies began to explode. And when the cake is getting bigger, shareholders are getting into the tangle of benefits distribution.　　By the year 1992, the "dark war" between ZTE's shareholders has been moved to the table without any cover, which has seriously affected the development of ZTE. Looking at the company of their own hard work into a dangerous edge, the Houweigui-led ZTE veteran in disappointment also began to save ZTE.　　and property reform is the weapon to turn the tide.　　At the end of 1992, a dizzying array of capital operations led by Houweigui began to unfold in ZTE. First of all, Houweigui, the main technical backbone of ZTE Semiconductor, set up a private enterprise "ZTE first Communication Equipment Co., Ltd." (hereinafter referred to as "ZTE First"); in 1993, "ZTE first" and 691 factories and Shenzhen Guangyu Industrial (group) company jointly formed a "　　Shenzhen zhongxing new Communication Equipment Co., Ltd. "(hereinafter referred to as" ZTE New "), registered capital of 3 million yuan, two state-owned enterprises holding 51%, private enterprises" ZTE first "accounted for 49% of the shares, completed the ZTE's history of the second property reform.　　In the reorganization of the 1993, Houweigui led the creation of a new model, that is, the joint venture from "zhongxing-dimensional first" to assume the operating responsibility, that is, is to be regarded as the classic "state-owned, authorized (private) management" model, Houweigui it called "state-owned private" mode. Under this model, the Board of directors and the operators of state-owned shareholders sign "authorized operation Responsibility", which stipulates that the operators must ensure that the state-owned assets increase in a certain proportion.　　In the case of poor performance, the operator shall be compensated with a mortgage of the proceeds of the share capital and equity; "After the new establishment of ZTE, our state-owned shareholders did not send people to manage." In order to ensure the profits of the state-owned shareholders, we think of this approach, by the private side to manage. According to the agreement, the state-owned enterprises are in fact Hanlaobaoshou, so they feel that they are more favorable, but also promote development, so called ' state-owned private ', is such a reason.　　Houweigui recalls the original pattern. October 1997, "ZTE New" restructured into "Shenzhen ZTE Co., Ltd.", and listed in Shenzhen Stock Exchange. The property right reform has made the present state-owned legal person holding and diversified economic components coexistZTE. Breakthrough: To be a world-class communication equipment business The goal is to concentrate, the category cannot be too wide. We are focused on the field of communications equipment manufacturing, but if you only make one or two products in this industry, it goes to another extreme. Once these one or two products are out of the way, you won't be there.　　Houweigui to The Times weekly reporter as analysis. In the 1992, more than 200 small switch enterprises in China failed because of their lack of independent technology.　　ZTE, through its own research and development of the million-door program-controlled switchboard, not only broke the "seven countries eight system" import manufacturers long-term monopoly of China's fixed telephone network equipment pattern, and in the industry reshuffle to obtain rapid growth. 1996, the development of national communications network planning for ZTE opened the door to diversify products.　　After the policy, market and their own strength of the consideration, Houweigui decided to break through a single Exchange equipment product line, to exchange, access, transmission, video and other areas of development.　　Around 2000, when China gradually entered the era of mobile communication, ZTE began to transform its business, and identified three strategic areas of mobile communication, data communication and optical communication.　　During this period, the most praised is ZTE's PHS technology, which enabled ZTE to maintain a steady growth in the 2001 when the global communications industry sank, and firmly supported the development of the whole company. "This technology is very suitable for China at that time, in particular, mobile and fixed network after the separation, fixed network operators do not have mobile license, the wireless access to it for its survival and development have a great relationship, so two fixed network operators (then China Telecom and Netcom) on this technology is very recognized. We have seized this opportunity and the market is also a very accurate demand, so can be more successful in business operations.　　"Houweigui said.　　2001, ZTE in the initial stage of Unicom CDMA network, relying on independent research and development of a full set of national brand equipment for the first time China Mobile communications network construction large-scale market share, so that the company has been supporting research and development and high-speed growth of the cash flow required. From the result, this strategy has made ZTE grasp the important opportunity of 3G in the complicated economic change. Since then, mobile phones, internationalization and 3G has become ZTE's three core strategies.　　At present, ZTE has reached the international advanced level in 3G, NGN, broadband data, optical transmission and other technical fields. In 2009, China's TD-SCDMA, CDMA, WCDMA three types of 3G market open tender, ZTE won 36% of the comprehensive market share, to become China's largest 3G network equipment provider.　　Moreover, in the future of LTE and 4G research, ZTE has set up a 3000-person research and development team. After its growth, ZTE's vision has been aimed at a broader global market.　　At present, ZTE in the United States, India, Sweden and other countries in the 4 research institutions in addition to the soft Exchange, CDMA, WCDMA and other research and development work, but also responsible for tracking the world's latest technological achievements and cutting-edge technology development direction. "ZTE hasSuccessfully entered the world's Top 100 telecom operators in the first 50, international revenue accounted for more than 60% of the total revenue of the company.　　"Houweigui said. But he also said ZTE's future will have to be scaled up in Western Europe and North America, so that it can truly become the leading enterprise in the global communications industry.