Why did Huawei’s research and development funding in this decade reach 100 billion?
In 2016, the research firm Millward Brown compiled the BrandZ global 100 most valuable brands list, Huawei rose from the 70th in 2015 to the 50th. The National Federation of Industry and Commerce released the "2016 China Private Enterprises Top 500" list, and Huawei's annual operating income of 395.09 billion yuan became the top 500. Huawei ranked 27th among the “2016 China Top 500 Enterprisesâ€. Let's take a look at Huawei:
The operator business is also the main business of China. It is the earliest and most important business to do, and belongs to the main channel of Ren Zhengfei. The main product is a router (not the kind of home) that is delivered to major operators around the world. Market share is the world's first or second.
Enterprise business, mainly firewall switches, etc., after the withdrawal of funds from Huasan, is a new investment department in recent years, is robbing Cisco's market share.
Wireless business, the company's internal common name is St. Wireless, and the domestic 4G promotion has made huge profits. There are also a lot of bonuses.
Consumer business is a well-known mobile phone and other products. Basically, Huawei's hype is made by this department. In fact, other business departments prefer to make a fortune.
2: Corporate Culture: Advocating wolfness, every project of Huawei usually requires the cooperation of multiple departments, and will have unrelenting complaints about all obstacles that hinder the progress of their work. Leaders of other departments are welcome. But usually it is not right. Newly hired employees feel that the atmosphere is depressed and the pressure is too great. Incentives for employees are implemented by three people who work for four people and earn five people.
3: Employees' daily life: 1-2 default overtime, 8:30 off work. Some people work overtime until ten or even later. It is possible to have a busy project for a month or two, but it is not common. Due to the international business involved, some people need to work overnight, but will be retired the next day. In the evening, the subsidy seems to be sixty dollars. Work overtime on Saturdays or have overtime pay or transfer. Since Huawei is 80, there are many people after 70 or even 60. Most of them have a family, and it is difficult to get together in departmental activities. However, there are several associations, as well as a gym, for five yuan at a time.
4: Huawei's confusion and employee expectations: Huawei has now become the leader of the industry in the field of operators. How to take the road of its own and accurately grasp the pulse of industry development is a headache for Huawei's top management. At the same time, how to change the mindset that Huawei has formed in the traditional industry for many years, adapt to the sales and marketing model of the Internet era, and become the part that Huawei leaders, especially consumer business leaders, need to care about and change. For Huawei employees, after joining the 1990s, whether the previous high-pressure management model is still suitable, how to change the management style of basic managers is also a question that continues to be explored.
Look at Huawei's data for the past two years:In the first half of 2014, revenue was 135.8 billion, up 19% year-on-year; in the second half of the year, revenue was 1524, up 24% year-on-year; annual revenue was 288.2 billion, up 20% year-on-year.
In the first half of 2015, revenue was 175.9 billion, a year-on-year increase of 30%;
Revenue for the second half of the year was 219.1 billion, a year-on-year increase of 43%;
The annual revenue was 395 billion yuan, a year-on-year increase of 37%;
In the first half of 2016, revenue was 245.5 billion, a year-on-year increase of 40%.
It can be seen that Huawei's revenue growth in the past two years is getting faster and faster. At its current speed, this year's full-year revenue will have a chance to exceed 520 billion.
Let's take a look at Huawei's ranking of the world's top 500 in the past two years.
As can be seen from the figure, Huawei ranked 129 this year and has improved by 100.
At the same time, Huawei released the 2016 transcript: 520 billion! Equivalent to 5 Gree
One, 520 billion, shocked the world!
On December 30, 2016, Huawei's rotating CEO Xu Zhijun announced that sales revenue in 2016 reached RMB 520 billion, a year-on-year increase of 32%. 20 billion! What is this concept! Equivalent to 5 Gree, 2 Lenovo, 5 ZTE, 5 Alibaba, 5 Changhong, 6 BYD, 7 Xiaomi, more than 20 Konka! It means surpassing IBM and entering the top 75 of the world's top 500 companies, and the fastest growth rate of the world's 100 billion scale enterprises!
These 520 billion, do not engage in financial non-profit real estate is not listed, there are more than 60% from abroad! At the same time, in the first half of 2016, Huawei only paid more than 42.1 billion yuan in China. That is to say, if there are 100 Huawei in China, the tax payment can reach more than 8 trillion!
Huawei's consumer business CEO Yu Chengdong disclosed that in 2016, Huawei's mobile phone shipments are expected to be 139 million units, an overall increase of 29%; Huawei's consumer business sales revenue of 178 billion yuan, a 42% increase over 2015.
Yu Chengdong recalled: "Five years ago, when the mobile phone business started, we said that we wanted to sell 1 million high-end smartphones with Huawei LOGO. Everyone felt incredible. I came to Huawei in 1993 and came to Huawei. In the new employee discussion, Huawei is the most powerful communication company in China, and I feel incredible! But afterwards, the seemingly impossible goals have been realized year by year. From groping to gradually surpassing, we are extremely profound. The terrane will arrive because it is because Huawei has chosen an extremely difficult road and a road that is more bitter than others."
Second, 2016 global R & D investment 100:On December 27th, the European Commission released the “2016 Global Enterprise R&D Investment Rankingâ€.
German Volkswagen's R&D investment ranks first, Samsung Electronics ranks second in the world for three consecutive years, Intel ranks third in the US, and Huawei ranks eighth.
This ranking survey counts the R&D expenditures of 2,500 key enterprises worldwide in the 2015-16 financial year, including 590 in the European Union, 837 in the US, 356 in Japan, 327 in China, 111 in Taiwan, and 75 in South Korea. , 58 in Switzerland. US corporate R&D investment accounts for 38.6% of the world, followed by Japan, Germany and China. It is worth noting that the investment of Chinese companies has soared by 24.7% year-on-year, and the global share has increased from 5.9% in the previous year to 7.2%.
As the highest ranked representative of Chinese companies, Huawei's R&D investment reached 8.358 billion euros (about 600.8 billion yuan) this year, ranking eighth in the world. Of course, its investment is mainly concentrated in the telecommunications field to ensure its leading position as a large-scale infrastructure supplier.
Huawei's R&D expenditure is more than several billions more than the total of 154 chemical companies + 166 mechanical equipment + 14 machine tools + 67 pharmaceuticals.
Let's take a look at BAT's R&D expenditure. Baidu's 7 billion is the largest proportion of R&D investment. Tencent Ali is estimated to be 10 billion, with a total of 27 billion. The total R&D expenditure of BAT in 2015 cannot be compared with Huawei!
In terms of investment in research and development: Huawei's research and development funding has reached RMB 190 billion in the last decade!
Huawei is enough to make all Chinese companies feel uncomfortable because Huawei has 10,000 doctors and dozens of Russian mathematicians.
Many companies in China never pay attention to research and development, but are known for their shortness and speed. Huawei uses its results today to prove to us that only by calming down and doing R&D will have a long-term future!
Third, in the face of victory, Ren Zhengfei said: Be wary of the black swan!
In 2016, Huawei achieved brilliant results.
However, Ren Zhengfei remained awake, and he reminded him in his internal speech:
"The financial crisis is likely to come soon, we must reduce ultra-long-term inventory and ultra-long-term arrears. In the past, our payment records were not clear. When customers came to arrears, we were still inexplicable. Even the contract and the owed can not be found. If the customer does not Paying back the money, how much reserve is spent."
Xu Zhijun, Huawei’s rotating CEO, said: In the new year, we must reduce the pursuit of “formal sense†and “arrangement†marketing activities and retreats, and increase the activities of sitting down and discussing with customers to solve practical problems; Trends, "Vision", "New Concepts", summarizing and summarizing the practical lessons of the scenes; reducing the number of sitting in the office, increasing the access to the machine room, the upper site, going to the street side cabinet, the business hall; removing the leadership The center's "internal value presentation" is to create beautiful publicity videos, exquisite PPT, focus on customer-centered "value creation"; remove "industry leaders" and "attack into no-man's land" blindly Optimism, increase awe and future thinking about future uncertainty.
Ren Zhengfei also specially made people raise black swan in Huawei Park.
Huawei has a lake at its headquarters. Last year, the company officially named the lake called Swan Lake.
There are really swan in the Swan Lake. Huawei has spent a lot of money and introduced eight black swans from abroad.
Black swan represents uncertainty, and Huawei self-warns that the future world is chaotic and confused.
Ren Zhengfei said that he was confused. But the truth of the fact is that he is not confused at all. He knew to convert the black swan into a white swan.
Ren Zhengfei's confusion is the confusion of the development of science and technology, not the road to Huawei's future. If he is confused, he will not propose to reach 1 trillion yuan in sales by 2020.
Fourth, Huawei: The bird that burns is not the phoenix!Behind the success, Ren Zhengfei’s hardships when he founded Huawei have gradually been forgotten.
A 44-year-old man was defrauded of 2 million in business. He was delisted by the state-owned Nanyou Group. He was asked to remain in office and was also burdened with 2 million debts. The wife was divorced again. He personally lived in a shack in Shenzhen with his old lady and his younger siblings, and founded Huawei. Without capital, no connections, no resources, no technology, no market experience, seeing someone who is better than him, successfully counterattack, bringing Huawei to the world's number one position in the communications industry for 27 years!
In 1987, Ren Zhengfei registered Huawei Technologies Co., Ltd. with a capital of 24,000 yuan, and he has gone through all the hardships.
It is the saint who climbs up in the mud pit. The unburning bird is the phoenix.
In 1993, after numerous failures, Huawei launched the 2000 network large-scale switch equipment C&C08 (referred to as "08 machine"), marking the first time Huawei has its own technology accumulation.
The parties recalled that at an internal mobilization meeting, Ren Zhengfei stood quietly on the window of the conference room on the 5th floor and said to all the participants: "If this research and development fails, I will only jump from the upstairs..."
After the development of the 08 machine, Huawei's first customer was the Yiwu Post and Telecommunications Bureau, which provided program-controlled switching equipment to Fotang Town, which belongs to Yiwu.
At that time, foreign products were mature and stable in performance, and telecom operators were generally more willing to use imported equipment.
Huawei is only one of the more than 200 telephone switch manufacturers in China. It has no visibility and is still a private enterprise. The list of Yiwu Telecom Bureau is almost the only opportunity for Huawei to show itself and seek survival. Once you fail, you may lose your right to survive forever.
The party later recalled: "After more than 10 years, it is still thrilling to recall that hard battle. If there is something wrong at that time, if there is no success, there will be no Huazhi today."
At that time, dozens of Huawei engineers rented in the private house next to the telecommunications bureau, and worked on the day and night to debug equipment to solve various problems at any time. The most important thing is that every day around 3 am, "the middle of the night, the chicken is called", when the whole town does not have a few calls, the entire system is updated and adjusted.
In October 1993, it was finally delivered. Huawei completed the first digital machine experiment bureau in its history and won the space for survival and development.
Maybe this is the real Huawei!
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