Shulou(Shulou.com)11/24 Report--

Recently, Huawei released a new image slogan, "Digital Intelligence World", at the Suzhou Research Institute in European style, which is also the headquarters of Huawei's Chinese government and enterprise business. This is also another new move after it proposes to work with partners to explore the three major markets of "NA, commerce and distribution".

"A few years ago, the boss of a large company predicted that Huawei was sinking and would stop at some point because it was difficult to make money in these markets." Zhang Shuguang, who spent a busy day in Suzhou Saige electronics market, told the frontline, "but in fact, it will not, because Huawei has a deep research and development of root technology, such as AI camera products, they do not need much extra investment, because these are homologous with smart driving and Huawei mobile phone image technology, they are all part of Huawei's root technology applications, as long as customers see value and market demand, the products have profits." Mathematical intelligence will accelerate its infiltration and become a trend, and no one can stop it. "

Zhang Shuguang, general manager of Suzhou Zhuoxin Intelligence, opened a "Huawei Kunling" store in Suzhou Saige market this year. Just a few days ago, Huawei released a new image slogan, "Digital Intelligence World", at the Suzhou Research Institute with European architecture, which is also home to Huawei's Chinese government and enterprise business. This is also another new move of Huawei's Chinese government and enterprise business after it proposed to join hands with partners to explore the three major markets of "NA, commerce and distribution" this year, that is, Huawei deepens the market through digital intelligence, breaks through the end of digital intelligence, and further conveys to the three major markets "choose Huawei to make your enterprise digitally intelligent".

01 thinking of the second decade

At the end of 2021, Huawei's Chinese government and enterprise business began to think about the "second strategic transformation". At that time, Huawei had been in the Chinese government and enterprise business for a decade. In the first decade of government and enterprise business from scratch, Huawei built plans and expanded its business around a group of big customers. "when government and enterprises enter the second decade, they must consider allowing thousands of households and giving all enterprises the opportunity to acquire good technologies, products and solutions." Wu Hui, president of Huawei's China government and enterprise business, told the frontline of Digital Intelligence.

Take the small and medium-sized market as an example. China currently has more than 40 million small and medium-sized enterprises. "although the volume of each project in these markets is small, the combined performance is also considerable." Zhonlian Yunchuang Meng Qingqing told the Mathematical Intelligence Front. Zhonglian Yunchuang, a startup founded by a group of young people, is Huawei's golden distribution partner. In the relevant statistics in 2021, their distribution market has a market space of at least 50 billion yuan a year.

Huawei's Chinese government and enterprise business has formulated "one deep ploughing, two expansions". "deep ploughing" refers to the deep ploughing of traditional advantage NA (Named Account) customers, that is, industry beacons and value customers; the "two expansions" are the expansion to the customer base and to the prefectures and cities at the district and county level. These expansions involve reacting solution capabilities with potential customers.

After the announcement of the strategic transformation, China started the construction of the commercial market in 2022 and put it into the distribution market in 2023. At this point, Huawei government and enterprises have formed three major tracks: the NA market, the commercial market and the distribution market.

People in the industry believe that Huawei's shift from a major customer market to expanding the sinking markets of commerce and distribution is a huge change, which involves the transformation of thinking, strategic play, process construction, product sub-brand building and so on. Wu Hui said that the main difficulty in the transformation is to build consensus.

Wu Hui, President of Huawei's Government and Enterprise Business in China

From NA to commercial and distribution markets, the biggest change is to create a "partner + Huawei" system, which has a far-reaching impact on Huawei and its partner business model, and even on the domestic start-up digital market partnership system.

This brand action also interprets Huawei's strategic thinking. Qiu Heng, CMO of Huawei's Chinese government and enterprise, explained that the "touch" can be understood as pressing a button, that is, choosing the open cooperation system of "partner + Huawei", so that customers can "reach" the digital world. Behind this involves the independent innovation of technology, the scheme of going deep into the scene, the marketability and ease of use of products, the considerate service team around them, as well as their own practical experience of transformation + extensive replication of industry benchmarking experience, and so on.

02 "laying capillaries"

For the partner + Huawei system, the biggest change this year comes from the distribution market. "Distribution, which we call the 'last 100 meters', is a business that flies close to the ground." Wu Hui said. These businesses basically revolve around the needs of small and micro enterprises, family factories and ordinary people, such as villa decoration, the basic digitization of an office of 20 or 30 people, and so on.

In fact, the distribution business has existed in Huawei for a long time, but it has not adopted a particularly correct approach in the past. A senior person in the distribution industry observed that Huawei used to rely on non-distribution partners to do distribution.

In 2023, Huawei's transformation in distribution felt a bit like a broken wrist, changing Huawei's business model in the past. In the past, Huawei was good at capturing mountains, but now it wants to do a "running water" business. Huawei began to build a sales network, develop distribution gold medals and distribution elites, engineers, installers and so on, which the industry believes is the laying of "capillaries".

"the key point or blocking point in the distribution market is the engineers." Zhang Shuguang, Huawei's elite distribution partner, told Mathematical Front that because engineers are the people in charge of delivery, they have their own familiar brands and products that "can be installed with their eyes closed", and how to make them familiar with using Huawei, is the key to the distribution network. Engineers are also a market force to be reckoned with. In Suzhou alone, there are nearly 10,000 engineers with annual revenues of more than 5 million.

Judging from Huawei's actions, it is already aware of this problem. In the past, Huawei did not come into contact with the general generation or distribution gold medal. Now it is clear that the distribution market is centered on engineers to build a healthy and orderly distribution partner system. It is understood that Huawei's distribution elite has increased by 300% this year, and they are supported by the distribution gold medal in terms of capital and technology, and eventually form a mode of operation from the distribution gold medal and the distribution elite to the engineer, which is a systematic change.

Wu Hui admits that this year's distribution business has experienced an inevitable period of labor pains in the transformation. "the difficulties should be relatively short-lived." Zoomlion Yunchuang Meng Qingqing said to the Mathematical Intelligence Front, "I think we should build the 'basic pipeline' this year, build a good management system, and launch more suitable products."

Take products as an example, engineers pay special attention to price and ease of use. "it turns out that some of Huawei's product concepts are very good, but the standards are too high, the barriers for installation and operation and maintenance are too high, and it is not easy for engineers and installers to get started, such as the industry perceives that related products initially have five passwords. Now there are great changes in the simplification and experience of installation and maintenance for the distribution market." Zhang Shuguang observes that he sells Huawei industry awareness, SmarTone, SOHO and Intelligent collaboration (IdeaHub), which are the most basic needs of digital intelligence for small and micro enterprises.

In May this year, Huawei launched the sub-brand "Huawei Kunling" for the distribution market, which is different from the traditional project-centered products and solutions, and put forward the goal of "Liuyi", that is, "easy to buy and sell, easy to install and easy to maintain, easy to learn and use". There are 89 new products for distribution on the market this year, and Huawei Kunling currently has a total of more than 380 products.

Zhang Shuguang just finished an online live broadcast this week, mainly to promote the Kunling brand to distributors, engineers and some users. This is an online marketing attempt, planned once a week, and Huawei has a team to assist him. Since the introduction of the distribution policy in May this year, Huawei has invested a lot, with city managers and business managers in each city, contacting distributors.

Zhang Shuguang (right) Live introduces Kunling products

In addition to online, Huawei has also increased its offline joint expansion investment. In Zhonglian Yunchuang, there is a large conference room with Huawei camera products large and small in the middle of a circle of conference tables.

Here, Zhonglian Yunchuang has done some product seminars for engineers. What impressed Meng Qingqing most was that on the day of the launch of China's reform policy for the distribution market in May, Zoomlion also invited some distribution elites to come to the company to listen to online lectures to discuss the market's practices.

Liu Haojie, manager of the Commerce Department of Zoomlion Yunchuang, picked up an upcoming camera product on the product shelf in the conference room and told the frontline that this product is more competitive than similar products on the market. Previously, Huawei's camera products emphasized AI capabilities, but for the mass market, popular models with high cost performance were also needed. Since the end of September this year, Huawei has successively released price reductions and rebuilt its products in a cost-effective manner.

Good price, fashionable style, strong management system and faster action are the main requirements of the distribution system for Huawei. At present, Huawei and its partners are making continuous efforts.

03 from lighthouse practice to mass market

Before the transformation of the distribution market, Huawei took the lead in building the commercial market last year. Wu Hui recalled that in January 2022, also in a large conference room of Huawei Su Research Institute, the government and enterprise business launched a national training in the commercial market.

The reason for opening up the commercial market is that the industry innovations and solutions built by Huawei's NA customers are not just for a few head customers, but to replicate to the entire industry through the development of integrators.

However, the biggest difference between the commercial market and the NA market is that it is mainly based on the partner system, which requires more integrators to be familiar with and master Huawei's products, technology, and industry solutions, and to extend it to large, medium and small customers.

In a building in the heart of the Su Research Institute, the first floor is Huawei's OpenLab. This provides support for partners to build solutions with Huawei. On one wall hangs a plaque of Huawei's joint laboratory with some customers who have innovated with Huawei to create industry-level lighthouse solutions.

In fact, Huawei's own practice of digital transformation and refined "six-step approach" methodology also empathize with these large enterprises and attract them to jointly create with Huawei. The six-step approach includes vision traction, scene cutting, goal orientation, organizational adaptation, technology internalization, and application plug-ins.

This methodology is embodied in the construction of unmanned wharf in Tianjin Port. Now, this labor-intensive wharf with a century-old tradition has been transformed into a colorful Legoland. People will see a group of robots take the "building blocks" (containers) off the ship like "building blocks", and the driverless cars automatically put the building blocks into the yard, which are also automatically recharged. "even after 26 years in the ICT industry, I am very shocked." Wu Hui said that this plan can be copied.

When the head customer and Huawei face the industry scene and create a solution that meets the needs of production and the transformation of mathematical intelligence, standardized components and systems need to be abstracted before they can be further replicated to other large and medium-sized enterprises.

Wu Hui introduced, for example, Huawei and a big bank to move down, to the distributed process, the bank can build its own PaaS platform, but generally small and medium-sized institutions lack such technical capabilities. Huawei will write these migration experiences into Huawei's PaaS, make them into standardized modules, and then provide them end-to-end to the City Merchants Agricultural Credit Bank and so on.

In the second Hospital of Zhejiang University, the first third-class first-class hospital in China with a history of 154 years, Huawei, together with customers, has realized "interconnection" of many hospital districts of the hospital from "isolation of each hospital" through digital technology. from "offline consultation" to "remote consultation", from "peripheral radiation" to "resource sinking". Now, patients with complex conditions do not have to move back and forth between hospitals. Doctors can communicate diagnosis and treatment plans and give timely diagnosis and treatment to patients through the public resource pool. These experiences can also be replicated to the entire industry.

Huawei has also hatched horizontal solutions for face-to-face scenarios with partners, which are made up of product combinations, such as park scenarios and site scenarios. In fact, the commercial market needs more of these focused scenarios, which can be directly and quickly promoted and copied.

For example, in a building in Shanghai that looks like a giant ark, it now adopts solutions such as Smart pass, Smart Park Security, IOC Intelligent Operations Center, and digital conferencing to achieve the campus management and office experience of other large enterprises such as Huawei.

In OpenLab, there is a large joint office area between customers and Huawei. After rows of big computers, engineers are burying themselves in development and testing. The big screen on the wall scrolls the problem work order in real time, which is the problem sent by partners across the country through the hotline, Wechat official account and official website. it is usually the problem encountered by integrators in the secondary development, which will be solved free of charge.

On one wall, there are rows of names of partners with the words "interest, growth, security and future". OpenLab sources explained: "We hope that partners in the cooperation with Huawei to get corresponding benefits, healthy operation."

As of October 2023, there are a total of 1800 solution partners, in more than 20 industry segments, based on Huawei infrastructure technology, combined with industry Know-how, jointly create industry digital transformation solutions.

In the joint office area, there are more than 10 large-size whiteboards that showcase these industry solutions, including digital government, education, power, large enterprises, and so on. According to people related to OpenLab, these programs have been copied to thousands of enterprises in various industries.

Wu Hui told Digital Intelligence Front that future-oriented planning will attract more people to participate in the "partner + Huawei" system. "it is hoped that the future 'partner + Huawei' system will be built into one or more Huawei partners around each customer." Wu Hui said that only in this way can customers have the conditions of "touch-and-reach".

04 end-to-end second choice

Zhang Shuguang saw Huawei's new brand slogan of "touch and reach" on moments. He observed that in the market, some enterprises have almost achieved digital "touch", "but Huawei goes a step further and makes' intelligence 'accessible, because Huawei has a full stack of digital intelligence, and its products are too rich."

"Digital and intelligent means that the products are more competitive, and for us distributors, Huawei Kunling's products are more profitable." Zhang Shuguang said.

Many people know about Huawei mobile phones, but in fact, Huawei itself is doing digital intelligence and ICT. "Huawei has started from the most basic switch in the communications field in the past 36 years, from switch to optical fiber, to wireless communication, and finally to computing, cloud and terminal, so it has moved to ICT full-stack technology." Wu Hui said.

It is worth noting that since 2019, Huawei has also made a lot of technologies-- including operating systems, databases, Kun Peng and Teng Deng, which makes it possible for Huawei to provide digital, intelligent end-to-end technology to the digital world.

At the Huawei full connection Conference 2023 held this autumn, Meng Wanzhou, the rotating chairman of Huawei, proposed "to be the second choice in the world."

"it is a technology path, and in the past four years, Huawei has formed a complete pan-computing technology route, which is quite different from the traditional one." Wu Hui explained that it ranges from desktop computing to edge computing, from general computing to artificial intelligence computing, from underlying chips to operating systems, to databases, compilers and development languages.

"these are all created independently, and it gives us the possibility that another road to the digital world has now been repaired." Wu Hui said.

According to relevant statistical reports, despite the complex international situation, Huawei still ranks first in the world in terms of market share in wireless communications, optical communications and data communications, and even in overseas wireless communications and 5G markets. This is closely related to Huawei's continuous increase in R & D investment in recent years.

Wu Hui said that in the field of IT, the operating system Euler has become the first new market in China, surpassing the American Red Hat. This shows that the strategy of open source software and open hardware is indeed effective, and it also means that it has solved the problem of "availability" and is beginning to become "easy to use".

Wu Hui stressed that continuing to maintain leadership is a necessary condition for moving towards the digital world or digital productive forces. The more advanced the technology, the higher the efficiency of the enterprise, and the higher the value it can create.

In the Tianjin Port project, key technologies such as 5G, self-driving, IoT, big data governance and artificial intelligence are adopted at the bottom of the digital platform. These technologies in turn support the atomic services, scene capabilities, and business ideas and implementation above, making the dream of Tianjin Port's unmanned wharf come true.

At present, based on the "second choice", it has become more and more abundant in complex scenarios of innovation and transformation for large industries, product portfolio solutions and scenarios for commercial markets, and scenarios for small products. Huawei's strategy is also quietly changing, from "surviving" from 2019 to 2022 to "surviving with quality" in 2023.

Now, Huawei and Tianjin Port are taking the next step to optimize port operations and management processes based on large models. In fact, it is also training the world's new container terminal operating system. Terminals around the world are still using the Dutch Amsterdam standard of more than 100 years ago, and Tianjin Port is looking forward to building a new standard based on new technology and modern operating systems. When the port operating system is finished, and then coupled with a standard component, it can be copied to the next terminal.

Huawei has more than 35000 partners this year, and it is planned to reach more than 45000 in 2024 and more than 50,000 in the future. After "partners all over the world", Huawei's "touch and reach" will effectively help all kinds of customers enter the digital world.

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