By Yan Lida, President, Huawei Enterprise Business Group
SHENZHEN, China, Sept. 21, 2017 /PRNewswire/ -- During Huawei Connect 2017, the flag event of Huawei, Yan Lida, President of Huawei Enterprise Business Group shared his insights into Huawei unique platform and ecosystem strategy and core concepts that are enabling enterprises to accelerate digital transformation.
When I was in primary school, 3D-sound radio and recording devices with dual speakers were a rarity, so when I grew a bit older my classmates and I built a simple radio from scratch using a tree branch as an antenna to receive radio signals. Back then, creating an invention was a huge accomplishment as resources were limited. Nowadays, with considerably more resources and collective effort, innovation is easier.
At Huawei Connect 2017, Huawei, together with our partners and customers showed that more and more businesses are realizing their dreams and creating infinite possibilities for the future by utilizing Huawei's platform and vast ecosystem.
Connectivity has changed the way we live
The Age of Sail lasting from the 16th to the mid-19th century radically changed the way people lived. Columbus' discovery of the New World and Magellan's first circumnavigation of the earth connected all five continents, opening new markets and opportunities.
Today we are entering a new smart era of connectivity that is transforming the way we live. Driven by cloud computing, the Internet of Things (IoT), artificial intelligence (AI), and other new technologies, an intelligent society is connecting and integrating the physical and digital worlds, which is already changing our work and lives, and will continue to do so in the coming years.
Driving digital transformation to succeed in the new era
Two years ago, businesses were questioning whether they needed to embrace digital transformation, but now they are asking how to quickly achieve successful digital transformation to win in the new smart era. Leading organizations are defining the path to a digital future and providing best practices to help others drive transformation.
One notable example can be seen in Longgang, the biggest district in Shenzhen that has 4.25 million permanent residents. Three years ago, the Longgang District Government embarked on the "Smart Longgang" project, and chose Huawei as its strategic partner for the project.
The project is already delivering significant benefits to Longgang residents. Under the "Smart Government" initiative, citizens can carry out transactions using their mobile phones or computers and without leaving their homes. Following the roll-out of "Smart Policing" last year, the head of the District Security Bureau confirmed that major cases in Longgang are solved within 24 hours. And, after launching "Smart Firefighting", the number of fires fell by 40% in the first half of the year.
With smart city construction presenting many challenges, how did "Smart Longgang" achieve such positive results in just 2-3 years?
There is no shortcut for digital transformation and the customers' commitment to embracing change was key to the success of this project. The District Government prioritized the project and was highly involved, working closely with Huawei throughout the process. A project team, led by the Secretary of the Longgang District Party Committee of the Communist Party of China (CPC) and the District Leader, and a special "District Data Coordination Office" were established to ensure strong collaboration across departments. With Huawei's support, 215 service systems within more than 50 departments were integrated, gathering data exceeding 1.1 billion records.
Huawei + Partners enable efficient collaboration between infrastructure and applications
In the Longgang Smart City project, Huawei provided "1 cloud, 2 networks, 3 platforms", which comprised a cloud data center; a city communication network and a city IoT network; a Big Data services platform, a service application enablement platform, and an ICT capabilities sharing platform. Huawei also brought in application developers depending on the specific requirements of government affairs, police, education, healthcare, and other departments. Through efficient collaboration between ICT infrastructure and service applications, we created a powerful solution to drive digital transformation for Longgang.
The digital transformation of industries
In the past few years, Huawei has engaged in many joint innovation projects with leading companies of various industries around the world, accumulating extensive experience and best practices, which has inspired three core concepts for the digital transformation of industries.
Digital transformation is an "Iron Triangle" project
The first premise is that digital transformation is an iron triangle project. Digital transformation is fundamentally about using digital technologies to redefine services, processes, and organizational structures. For this reason, the participation of senior management is key to communicating the significance of digital transformation, enabling the desired changes, and building a strong team to achieve successful transformation. Senior leadership forms the first corner of the triangle.
The biggest challenges of digital transformation are implementing new digital technologies and strategies. Enterprises need to form partnerships with digital transformation facilitators such as Huawei that provide leading ICT and best practices to help them overcome these challenges. This is the second corner of the triangle.
Industrial application developers are the third corner of the triangle. ICT solutions depend on agile and iterative innovation for industrial scenarios; if there are no industrial applications, the solutions are of no use.
This "Iron Triangle" concept is Huawei's joint innovation model for digital transformation.
Converging the physical and digital worlds with a digital transformation platform and ecosystem
The second premise is that digital transformation requires a platform that can connect the physical and digital worlds, and no single technology can support this transformation by itself. A digital, technological platform is required to enable collaboration between cloud computing, IoT, Big Data, wireless, optical, and other technologies which is crucial to achieving successful digital transformation.
The third concept is that the platform will enable digital transformation, and become the foundation for data coordination and delivery. Partners can integrate industrial applications and ICT capabilities on this platform, stimulating creativity to develop diverse applications.
With this in mind, we believe there is a beginning for digital transformation, but there is no end, and Huawei is creating an ecosystem where ideas and applications can flourish to enable this journey.
Creating an open and scalable model to seize digital opportunities
Huawei has chosen a unique approach to supporting enterprises' digital transformation through its platform and ecosystem:
Becoming customers' most trusted partner
At Huawei Connect 2017, Guo Ping, Rotating CEO of Huawei, stated that in order to become customers' most trusted digital partner, Huawei has developed a commercial model that relies on the monetization of technology and services; it does not monetize user data. This is one of the main differences between Huawei and traditional Internet companies.
Business-driven innovation to ensure value: Huawei is focused on business-driven innovation that addresses customers' core business challenges and helps them achieve business success. Customers are now recognizing the importance of this principle and are turning to Huawei to help them solve problems that matter to their firms.
For example, Guangdong Rural Credit Union, China's largest rural credit bank, needed to overcome bottlenecks in its financial payment services. We worked together with Beijing Advanced Digital, a software company, to create an intermediary services cloud to tackle the customer's challenges. The time needed for service development, testing, deployment, and rollout was reduced from 3-6 months to just 1-2 weeks, giving Guangdong Rural Credit Union a competitive advantage in the market. This is a typical example of how Huawei can help customers succeed through business-driven innovation.
Worldwide OpenLabs to develop solutions that are adaptable to various industries: Huawei has created more than 13 OpenLabs around the world with its partners to develop solutions for digital transformation across sectors including public safety, finance, power, and manufacturing. Located in Asia, Europe, the Middle East, and the Americas, Huawei OpenLabs drive innovation across the global economy. Through this global program, Huawei can collaborate closely with partners and customers, gaining a deep understanding of industry challenges to create solutions that meet their needs. In the next three years, Huawei plans to invest USD 200 million to operate and maintain these OpenLabs and create new OpenLabs, increasing the number to 20 by the end of 2019.
Becoming a platform for platforms
Another key differentiating feature of Huawei's platform is that it remains within our own business boundaries and we are committed to providing a platform for our customers' and partners' platforms.
Many companies, through their own experience in a specific industry, have transformed into an enabler platform for that industry. One example is General Electric (GE), which is now providing an industrial cloud platform for the aviation and manufacturing industries. Huawei believes that we must create an open, secure, and reliable ICT infrastructure platform within our business boundaries, enabling companies such as GE to rely on our platform to drive growth.
Huawei's platform is a full-stack ICT platform with cloud-pipe-device collaboration, which provides one-stop ICT services for customers and partners, allowing them to focus on their own service optimization and innovation.
ICT platform + industry experience: Huawei is one of the few companies that provides cloud-pipe-device full-stack ICT capabilities. A notable example of how these capabilities have helped our partners, can be seen in Huawei and Honeywell's work together to create a smart building solution. The solution is based on Huawei's edge computing IoT platform and Honeywell's smart building management system, fully integrating ICT platform capabilities with industry experience. This enables complex and diverse devices in a building to connect and work together. Through cloud management of 10 million-level IoT terminals, the operating and management costs of a building can be reduced by 60% and power consumption can be decreased by 50%.
Becoming an ecosystem enabler
A further differentiating feature is Huawei's principle of sharing with our partners. We are committed to becoming an ecosystem enabler to help partners grow quickly through our "Developer Enablement Plan".
Strong cooperation for joint market success: Huawei operates in over 170 countries around the world, and in addition to our technological platform we also offer global marketing and services support. Leveraging these capabilities, joint solutions created with our partners can be launched quickly to capture new market opportunities. For example, in the Safe City domain, Hexagon is a leading ISV that has CAD, geographic sensors, GIS, and other professional technologies. Huawei's and Hexagon's advantages complement each other, creating a new-generation converged command and control system. In the past two years, we engaged in joint marketing with Hexagon, expanding their business from developed countries to emerging markets in the South Pacific region, the Middle East, Latin America, and others. As a result, Hexagon's revenue doubled in these new markets.
Leading standards to expand the industry: In this new era of digital transformation, we believe it is important to focus on growing the industry through open standards. By leveraging our technological innovation and capabilities, Huawei supports and promotes international standards to reduce the costs of digital transformation for customers. For example Huawei has promoted standardization for 5G, video, IoT, and other technologies with large commercial potential to enable key business projects, and drive business cooperation across organizations and platforms.
Building a future with our partners: To build a strong foundation for future growth with our partners, Huawei is providing fast and easy access to our technical platform, marketing, training and services. In addition to the USD 1 billion investment in the Developer Enablement Plan announced last year, our goal is to support 100 partners in surpassing CNY 100 million in revenue and form a pool of over 1,200 solution partners in the next 3 years. We will also dedicate CNY 1 billion in special incentives for our cloud partners.
An ecosystem cannot be constructed by a single player, it requires everyone's participation. It is not about fixing your own backyard, it is about working together to create a garden for everyone.
Just the beginning of a new smart era
Through Huawei's commitment to becoming customers' most trusted partner, a platform for platforms, and an ecosystem enabler, we are helping more and more customers and partners realize their dreams and create infinite possibilities for the future. Huawei's platform already has over 400 solution partners, 2,400 service partners, 12,000 channel partners, and over 80,000 registered developers.
In the new wave of digital transformation, Huawei will continue to enhance its platform and participate with partners in a rich and vibrant ecosystem to create powerful industry change. This digital journey has just begun and we have an exciting future ahead.