ZTE Chairman Houweigui: 09 3G Tender received 35% market share

ZTE Chairman Houweigui long-distance runner's competitiveness ZTE Chairman Houweigui in terms of high capital, high intelligence concentration of the telecommunications industry, to achieve a real lead, is bound to be a combination of factors of the results, is a long-term process. I believe that ZTE to achieve the "leading" enterprises to leapfrog, to do with the continuous competitiveness of long-distance runners, in the process of the elimination of the gradual transcendence, is a realistic and feasible path.　　On this path, innovation, cost, and efficiency are three important issues. The global communications industry has been playing the leading role in the past for a long time by manufacturers in western developed countries. Chinese enterprises to catch up quickly, and gradually enlarge the market. In recent years, the macro-industrial environment is driven by technology to market-driven growth changes.　　The international financial crisis has accelerated this shift, and we are in the midst of a storm of change.　　How to become a world-class enterprise in their respective fields, this proposition, I think is today "go out" Chinese enterprises can really start to think about the problem.　　The topic of making innovation truly competitive is more recent, and I think it should be viewed in two ways. ZTE established its own innovation strategy at the beginning of its inception, and put technology research and development in the important position of enterprise development, and has long insisted on 10% of the income into research and development.　　In the international financial crisis, ZTE's sales revenue, especially the international sales revenue and profits to achieve the trend of the current growth, the most important reason is that the long-term adherence to the enterprise technology research and development of continuous investment. While our competitors are under pressure to shrink research and development, our technical strength is still growing.　　Therefore, in the global competition, especially in the emphasis on technology and communications industry is facing the upgrading of the high-end market in Europe and the United States, we gradually show the advantages. On the other hand, in the High-tech industry, innovative capital investment is often large, research and development cycle is long, there is greater risk.　　In particular, the development of telecom industry is becoming more and more uncertain, and a lot of technology investment cannot be commercialized. In order to reduce the uncertainty risk caused by complex market environment, ZTE put the market demand as the first priority and adhered to the "market-driven innovation strategy". I have put forward "two depth" and "50%" principle to all staff, request the management personnel especially the senior management personnel must penetrate the customer, the thorough front-line staff, always maintains the sharp market judgment and the innovation impetus.　　At the same time, market personnel and system designers must be 50% of the working time to penetrate the forefront of the market, in-depth customers, implementation of the "technology vitality from the market" concept.　　Another experience of ZTE's risk control innovation is to emphasize the long, medium and short term combination of technological innovation and reasonable product layout, to carry out research and development tracking and input according to market reality and potential demand, to make flexible input and dynamic tracking, and to synchronize with the market in order to enhance the sustainable development of enterprise investment. At present, all of ZTE's significant investment has complied with the market change, maintains to the customer demand and the market environment change heightSensitive。　　We have adopted the initial tracking input in the development of 3G multiple formats, and have stepped up the strategy of manpower and capital investment in accordance with its developing situation. From the results, this strategy has enabled ZTE to grasp the important opportunities of 3G in the complex economic changes, in 2009, TD-SCDMA, CDMA, WCDMA three kinds of public bidding, won 35% of the comprehensive market share, become China's largest 3G network equipment provider.　　In the international market, more and more European and American operators, multinational operators choose us as long-term strategic partners.　　Consolidating the competitiveness of cost advantages in the past, it was thought that China's demographic dividend and low labor costs are the main factors of Chinese enterprises ' competitiveness. Indeed, in other circumstances, the cost advantage of the customer is certainly the first temptation, many enterprises in this area have a good experience in the cost of a particularly successful.　　In the previous years of ZTE's development, this factor also played a very important role. But lately, this advantage is diminishing in comparison with neighboring countries.　　This requires China's enterprises, in the expenditure and meticulous management and other cost-leading strategy to promote, to continue to strengthen and establish a comprehensive cost awareness, offset the increase in the cost of human resources to reduce competitiveness. ZTE is from various departments, especially in the source of product design, began to establish a strong sense of cost competition, to design a clear cost advantages of products, to form a competitive advantage. Of course, the overall cost is not only product costs, but also the system costs, including the market after the maintenance costs, operating costs, and so on, these costs in the product design phase should be considered. The full cost also includes some of our engineering expenses, daily operating costs, and so on, we are also strengthening control, should not spend the money should not spend, the money spent, spend will be able to enhance competitiveness, reduce the cost of money must be spent in place.　　In my opinion, cost reduction is a need to invest. In addition to cost competitiveness, it is equally important to win the customer's favor of differentiated competitiveness.　　Many enterprises rely on differentiated competition to gain advantages, occupy the market and even monopolize the market, which is different from the cost competitiveness of another battlefield.　　Some say cost competition and differentiated competition are contradictory and cannot be combined, but I think in a sense we both need to do better in both ways. To improve the utilization ratio of human resources in High-tech industry, the proportion of the total cost of the enterprise is quite high.　　For China's High-tech enterprises, relying on people-oriented to build the core competitiveness of enterprises is the basis of technological innovation. In the interior, through the continuous efforts in recent years, ZTE has formed a system guarantee and incentive system in talent strategy.　　In this round of the world economic downturn, the global peer layoffs, and we increase the strength to reserve talent. Outside the enterprise, through strengthening the integration of research and production, ZTE will call more widely domestic human and intellectual resources and carry out communication technology innovation. To this end, last year we united China Mobile, China Telecom, the three major operators of Chinese Unicom, Tsinghua University, Beijing University and other 19 colleges and universities jointly initiated the establishment of the domestic communications industry, the largest cooperative organization "ZTE Research and Research cooperation Forum."　　These scientific research institutions will cooperate with ZTE in the fields of technology and standards, with the help of its global business network and strong international market ability to realize the rapid transformation of scientific research results to the market. Improving people's efficiency is also a way to enhance the global competitiveness of enterprises. Now, ZTE has nearly 70,000 employees and it is imperative to improve management efficiency.　　In this respect, we have been increasing the sense of crisis, requiring each year to increase the per capita business income, per capita profits, so that enterprises can continue to run. Our experience in improving efficiency can be summed up as follows: It is important to have mechanisms in place to ensure that we choose to do the right thing and make the right choices, but more importantly and crucially, there are mechanisms to ensure that they are chosen correctly.　　Secondly, after making a choice, to effectively do things well, this will depend on the management of the process, the introduction of some advanced management methods, including assessment rewards and so on to guide. I think there is still a great potential for the improvement of the efficiency of Chinese companies. such as the position set, not to say one thing must set a person, in addition, in the process of optimization, not value-added posts to be resolutely removed.　　In need of Shegang, the work should be simplified as far as possible, do not "manufacturing work." (newspaper reporter Xu Han finishing)