Huawei company revenue in 2021 was 636.8 billion yuan and net profit was 113.7 billion yuan. year-on-year growth 75.9% debt-to-asset ratio decreased to 57.8%.
The overall financial structure of
is strengthening both elasticity and resilience.
Our scale has become smaller, but Huawei's ability to uncertainty is constantly improving. "
Vice Chairman of Huawei Company and CFO Ms. Meng Wanzhou said at the 2021 annual report press conference.
As a Chinese company, the achievements of today are closely related to Huawei 's business philosophy.
As Ms. Meng Wanzhou said:
" Huawei will continue to invest in the future while making steady progress.
Looking to the future, Huawei will continue to increase its R&D investment, with R&D investment reaching 142.7 billion in 2021 alone, and the cumulative investment in ten years has exceeded 845 billion yuan.
For many years, Huawei has adopted the "entrepreneurial spirit" business model and the "people-oriented" management model have achieved today's achievements.
So what is the business model of entrepreneurial spirit?
The so-called "entrepreneurship spirit" is based on the company's "entrepreneurship".
These "entrepreneurs" constantly improve their skills and transform their abilities into innovative results.
Through such management, enterprises can attract and retain the entrepreneurial talents they need. The book "Secret of Silicon Valley" is explained.
"Silicon Valley Secret: The Gene of Entrepreneurship Success" was written by American writer Annika Steiber and Swedish writer Sverker Alänge.
mainly tells the management secrets behind the continuous innovation, long-term entrepreneurship and rapid growth of high-tech enterprises such as Apple , Tesla , HP , and .
shows us the deep-seated reasons for the success of the enterprise: the importance of people, dynamic capabilities, and the introduction of top talents.
As Zhang Ruimin said: New changes are taking place in the times. When we learn from Silicon Valley , we are undoubtedly standing on the shoulders of giants and encouraging, attracting and cultivating innovative talents in a way that is more suitable for the new era.
What is the successful experience of Silicon Valley? Let's go into something in Silicon Valley together.
Success comes from the model of Silicon Valley
Nokia was once a leader in the global mobile phone manufacturing industry. However, as the times develop, it not only loses its lead, but also exits the market.
Studies have shown that one of the most important reasons is that Nokia's mobile phone operating system has been stuck for too long.
users have turned to Huawei mobile and Apple mobile phones based on Android or Apple operating systems.
Economist Linda Graton said when analyzing Nokia's failure:
Leaders must constantly recognize whether their company is impacted by the destabilizing forces.
At Nokia, the senior leadership team is homogenized, mostly software engineers, and their chances of success become small in the rapidly growing consumer market in Asia, as well as in the technology and design fields of Silicon Valley.
The winner in the field of smartphones is Apple, which has the iphone operating system, and the other is Google , which has the Android operating system.
The two companies adopt the same management and operation model - the Silicon Valley model.
Silicon Valley model is also called the six basic principles of Silicon Valley. It is also the secret to the success of Silicon Valley companies.
01 Dynamic capability
The famous management scholar David Tees wrote in his 2007 paper "Explanation of Dynamic capability".
"In today's environment, success may rarely depend on the textbook optimization of the company against known restrictions or obstacles or expanding its business scale to obtain the economic benefits of scale . Instead, the success of a company depends on the discovery and development of opportunities..."
It is crucial for a company to remain competitive and have a more dynamic model.
means that enterprises can detect problems early and respond to changes, and reconfigure internal and external resources.
restructures the company's core competitiveness by "perception", "capture" and "transformation", a capability that researchers call "dynamic capability".
Simply put, leaders should have the ability to analyze stability and predictable results to uncertainty and unpredictable results based on market variability, so as to accurately grasp the development of the company.
02 Changing Organization
In today's ever-changing era, companies need to constantly and proactively change their organizations. In other words, companies must have continuous and proactive changes in order to survive and develop in the torrent of the times.
For example: BYD new energy vehicle , the 5G technology launched by Huawei mobile phones, quickly gained global market sales share. Some companies push themselves to lead change through a method they call the “temporal rhythm”.
If an enterprise wants to develop continuously in a changing environment, it must consider different timelines: history, present and future.
03 People-oriented method
"People are the most important asset of an enterprise" Successful companies focus on mining and releasing the innovative capabilities of employees.
"Harvard Business Review " once listed the people-oriented characteristics of Xingchen Company:
Management plays an important role in the enthusiasm and participation of employees; encourages and supports employees to innovate, emphasizes the importance of innovation and continuous change;
inspires people's creativity through challenging vision and business concepts.
Virgin Richard Branson believes that employees are more important than customers, because only satisfactory employees will create satisfactory customers.
Leaders and employees agree on what they want to achieve. And willing to seek new ideas inside and outside the company, focus on team building, be modest and prudent, respect others, and have the courage to stop projects that do not meet expectations.
HP is a successful case and an early enabler of creating a people-centered workplace. HP's senior management believes that the most important thing for a company's development is the demand for outstanding talents.
So companies compete for talents, and retain talents in addition to the continuous increase in wages, stock options, and workplace welfare, there is an attraction that surpasses everything - there is an opportunity to engage in challenging and important work.
Although compensation is important, it is often not a decisive factor. Working in “exciting projects” and “important things” is also the main aspiration for high-end talents.
HP focuses on entrepreneurial entrepreneurs and provides them with an environment to exert creativity.
encourages people to form teams, practice the "entrepreneurship spirit" and achieve "breakthroughs".
fresh doctoral graduate Liao Minghui , an annual salary of up to 2.01 million yuan was accepted by Huawei.
The reason why Huawei offers such a high salary is that it values the entrepreneurial spirit of top talents.
As everyone knows, "people-oriented" is the foundation and driving force for Huawei's continuous development.
The reason why top talents choose Huawei is also the corporate culture of Huawei's "people-oriented" steadily moving forward and constantly innovating.
"People-oriented" teamwork, common responsibility and entrepreneurial spirit, has become a symbol of Silicon Valley and the fate of a company.
04 dual organization
If an enterprise wants to develop in a long and stable manner, it needs to move forward in both directions. As Meng Wanzhou said at Huawei's annual meeting:
is stable and looks forward to the future, and increases investment in the R&D department.
The so-called dual organization actually refers to:
On the one hand, enterprises need to carry out and improve their daily operations; on the other hand, they also need to make major innovations.
Harvard Business School professor Michael called it the ability to both "develop" and "explorate".
Maximize the use of existing businesses while exploring new growth opportunities. You should know that from R&D to launching products to the market is a slow process.
Therefore, an enterprise must adopt two different models to go further.
Huawei is a good example. When the chip market suffered a blow, Huawei quickly launched its own chips developed and produced.
This is exactly the new way out that Huawei has found for R&D and innovation in ten years, and has successfully helped Huawei resolve the crisis in the business war.
. ZTE Group, which is also facing difficulties, can only let the other party curb its throat.
Haier Group also chose the development model of dual organizations in the tide of the times.
On the one hand, it focuses on the quality of Haier Electric Appliances and differentiated services. On the other hand, merged many domestic home appliance companies to enter a broader development space and move abroad with a platform in the Internet era.
Swiss Dean of Gesang IMB Business School, awarded Zhang Ruimin, chairman of Haier , the "IMB Management Thought Leader Award".
The important factor in the rise and fall of a company is that senior leaders themselves have dual capabilities and can steadily pay attention to innovation and the future without ignoring the importance of current operations.
05 Open organization that connects to the surrounding environment
High technology follows the iron law of the revolution... The more you change, the more you need to change... You must accept the fact that in this game, the rules are constantly changing.
The earliest successful chip company in Silicon Valley was Intel , founded in 1969.
Later, HP achieved innovation through new interconnection, that is, higher degree of cooperation and networking;
Faced with strong market competition, HP opened its company's advanced manufacturing equipment in the form of a contract to smaller professional chip manufacturers, and even established cooperative relationships with them in chip design.
This cooperation also occurs between some large-scale companies and small-scale companies in Silicon Valley. The connection model like
benefits everyone involved. The company can achieve win-win results through interconnection and mutual assistance, while the company can obtain additional resources and expertise.
They cooperate in new technologies and share the advantages of new technologies. Such a system is more flexible and effective than the traditional business model.
Tesla opened its own patent portfolio in the summer of 2014 after several years of promotion of the brand new electric car . The sharing of patents has accelerated the development and popularization of electric vehicles.
all Global IoT is happening quietly, and the self-contained business model can only make the company disappear into the voice of history.
06 Systematic Methods
Companies seeking long-term competitiveness in a changing world must be regarded as a complete system (design and management).
system components are key elements of the company, such as: the company's vision and mission, enterprise and culture, board of directors and management team, performance evaluation and incentive systems, etc.
Let’s analyze the management model of traditional enterprises and Silicon Valley companies .
Silicon Valley model companies firmly believe in the importance of speed, adaptability and continuous innovation, all of which are oriented towards strategic intentions for innovation and growth.
. Traditional companies firmly believe in information confidentiality, work role procedures are standardized, and management instructs the team to do what, who will do it, and follow up to control the corresponding output.
07Write to the end
The secret of the success of Silicon Valley enterprises is obviously a conclusion drawn through practice. It is easy to be adopted, imitated or further developed by many people in various ways.
Huawei's success is also traceable, from the dual principles in the Silicon Valley model, people-oriented, absorbing special talents, and having a systematic approach suitable for Huawei.
I hope more entrepreneurs in China will see this management system.
It can provide inspiration and guidance for all vibrant entrepreneurs to further explore and innovate to find a suitable path for corporate development.
