In the newly released annual financial report, Huawei, which has a giant posture, has demonstrated its ability to still 'dance'.
Prior to the sales revenue target of 2018 from Huawei, the target of the business was set at 10.6 billion U.S. dollars (about 66.8 billion U.S. dollars). 'We are talking externally that we will have to spend 10 billion U.S. dollars this year, but actually I'm responsible for The EBG business is much larger than the figure of 10.6 billion U.S. dollars. ' On the Huawei Enterprise Business Performance Communication Conference held on April 9th, Huawei Enterprise BG President Grace Lee said in an interview with media including First Financial. Huawei's efforts in digital transformation are not slow, even earlier than Internet companies. However, in the past, digital technology was an auxiliary technology. Today, digital technology is really becoming part of the production system. This is a new opportunity.
However, in the face of Huawei's corporate business, there is no clear opponent like 'Apple'. The overall downturn of veteran IT companies and fierce attacks by Internet rookies have inevitably led to doubts about Huawei's 'hardware origin'. However, Huawei does not As a matter of fact, do not try wrong, do not enter the no man's land, maybe the chance points will disappear faster.
'Apple is changing the rules in the mobile phone industry and expanding the industry. Who can be bigger in the digital transformation industry? I think Huawei will take this mission and lead it.'
'Make the most fertile black land'
Each step in the journey to a smart society is full of challenges, but it is undeniable that all of the births will become a new round of growth opportunities and inflection points. Any company that wants to seize the opportunity must become a digital organization. Can't leave the team. 'At a conference, Huawei's rotating chairman Xu Zhijun stated that no company in the smart society can do its own thing. He even said that he hopes that the competition between IT vendors will come more violently and will force the industry to accelerate digitalization. At the same time, Huawei is more likely to realize the digital transformation needs of its own business.
It is also based on the judgment of this trend, Huawei formally established the enterprise BG in 2011, mainly as the internal responsibility of Huawei's ICT transition.
However, the outside world was not optimistic about this business at first. In 2014, as the current competitor to the Huawei enterprise market, the original Cisco CEO John Chambers stated in a speech that in the past few years, Cisco’s initial Most of the competitors have already been eliminated by the market, and by 2018, other competitors will be few, including many manufacturers including Huawei.
However, judging from the current stage of development, it is clear that Cisco has lost its enemy.
All of this is due to the transformation in 2014. In the first three years, Huawei's corporate business was mainly selling 'boxes' (hardware). In March 2014, Li Lida assumed the post of CEO of Huawei Enterprise BG, and in the same year 10 The cadre conference convened in January announced the formal transition from selling boxes to making platforms.
"When we say that we need to be a platform, many people will ask you what is different from other platforms? Using a research result from your friend IBM, the dominance of digital transformation in the future will return to the hands of traditional enterprises. ' The First Financial Reporter stated that when digitization enters a deep-water period, it does not mean that the company has opened an online shop or mall and digitalized the sales links. The real digitization is the reengineering of production processes, the creation of new businesses or new products, and this is a complete one. The process, the hardest part of this time is the understanding of this industry.
Li Lida believes that purely digital technology companies cannot really penetrate the industry. 'I think the digital transformation in the future will be driven more by the business. Traditional enterprises, the traditional economy will get the digital transformation of the dominant right.'
As Huawei's founder Ren Zhengfei said in his internal speech, 'The essence of Huawei is to provide an informationized, automated, intelligent 'black land' by focusing on ICT infrastructure and intelligent terminals. This is the most fertile 'black land'. Can be planted on corn, soybeans, sorghum, peanuts, potatoes, is to allow the contents of various partners, applications, clouds grow on top of it, forming a common strength facing customers.
Ten billion dollars under the challenge
In Huawei's 2017 financial report, Huawei's corporate business sales revenue reached 54.9 billion yuan, a year-on-year increase of 35.1%, and sales revenue doubled in two years. Of these, 197 Fortune 500 companies and 45 of the world's top 100 companies selected Huawei for digital transformation. one's business Patner.
Hu Houkun, who is also chairman of Huawei's rotating team, mentioned in his previous New Year's message that in five years he hopes that corporate business can become the pillar of the company's business.
Faced with the pressure of growth, Mr. Li told reporters that the overall proportion of EBG in Huawei in 2018 will exceed 10%, and the proportion of the entire company will continue to increase. But each business has the characteristics of each business, we have always said Thanks to Apple, Apple changed the landscape of the entire industry. Even the photographic industry was sucked into the mobile terminal industry. The leader of the industry is worthy of respect. They changed the layout of the entire industry and made the pie bigger.
'The EBG now faces two challenges. First, the proportion of traditional IT is still very heavy. I must win in the traditional IT competition in order to maintain an annual growth rate of 30% to 40%. Another challenge is how to transform digitally. The big cakes are not only my company, but the entire industry. They are working together to make the cake bigger. ' Li Lida told reporters, 'I am often asked how to make the business grow exponentially. I think The inflection point is the advent of the comprehensive practice of digital transformation. Today is just the initial stage. We are seeing that the industry leader is exploring and innovating and doing digital transformation.
However, it can be seen that the traditional IT companies have their own confusion in terms of input. 'The nature of capital is to chase profits. When it is impossible to see a clear return in the short term, it is difficult for these traditional companies to have greater turnaround. Space, especially on Wall Street. 'An IT industry person who did not want to be named told reporters.
In the face of the problem of profits, Huawei Enterprise BG Qiu Heng told reporters that corporate BG has already achieved profitability in 2015, but profits are not the issue we are currently most concerned about. After the industry cake is enlarged, partners, business opportunities and Profits will follow, and the current industry needs to solve is the cake issue. He believes that in a small pond when a big fish or small fish is not important, the future in the sea is where this is the most critical.