The wave of technological change is driving China’s economy to evolve in the direction of innovation-driven and consumer upgrading, and the industry is accelerating the process of connected digitalization and intelligence. The overlapping collision of technology and industry is constantly giving rise to new opportunities for industrial change and model innovation.

Tiantu Capital continues to focus on the technological variables behind the growth of the consumer industry. Recently, Tiantu Investment Private Meeting, together with Huawei Cloud, jointly held the event “Into Huawei”, where the Chairman of Tiantu Board Wang Yonghua led members of Tiantu management to meet with the CEOs and CTOs from companies such as Weis Food, SexyTea, ZDEER, Smallrig, Super Seed, Blue Whale Private Domain, Focus, Tianyin Interactive, Playpoint Travel, Crystal Egg Bio, Eggshell Myoine, etc. Nearly 30 CEOs and CTOs had a close experience of Huawei’s practical experience and cutting-edge exploration in technology, strategy, organization and culture, and discussed with Huawei experts the experience of enterprise strategic management and the new path of digital development.

In Huawei’s J5 digital transformation showroom, we visited Huawei’s infrastructure technology facilities and their landed applications in various industry sectors such as smart city, digital finance, automotive, power, and manufacturing. Afterwards, we invited Hu Weiqi, Vice President of Huawei Cloud China, Wang Feng, Director of Huawei Cloud Strategy Department, and Wang Taiwen, former Director of Financing Department & Senior Management Consultant of Huawei, to have an in-depth communication with the participating entrepreneurs.

The highlights of the event are as follows, please enjoy.

Feng Weidong, CEO of Tiantu Capital, said in his opening speech that in order to grow, a company must first know what it can grow like, and the Tiantu private party is very honored to visit the representatives of such outstanding Chinese companies as Huawei, to open their eyes and find inspiration here.

“I always believe that a business is an organic life form, and each business has to form its own organism and soul. The speed of life evolution depends on the speed of iteration, so the formation of the digital nervous system of the enterprise is a key step. What is more important is the algorithm of evolution, so we have to keep trial and error to obtain new sources of variation. As Elon Musk responded in an interview about what is his biggest challenge, his answer was how to maintain a corrective feedback loop in perpetuity. We hope that our entrepreneurs will always keep going to the front line to learn, constantly expand their horizons to get sources of innovative variation, and internalize it into their own organizational evolution,” said Feng Weidong.

01 A few insights on industrial digitalization

Hu Weiqi, Vice President of Huawei Cloud China, pointed out that in the face of bottlenecks in the development of mobile Internet, new technologies represented by cloud computing, blockchain and big data bring infinite possibilities for the emergence of new values for the Internet, because the new gene of the Internet lies in technological innovation.

For the development trend of the new consumer industry, Hu Weiqi said, “Facing the top of public domain traffic and the rise of private domain traffic, many enterprises are accelerating marketing digitalization and technology investment, therefore, how to promote the conversion of public domain traffic to private domain traffic in the future is a question that every new consumer enterprise needs to think about.”

The third insight shared by Hu Weiqi is that the industrial Internet + consumer Internet will achieve value co-creation and leadership in the future. She believes that industrial upgrading includes four opportunities: business enablement, content management, data analysis and intelligent collaboration, and Internet entry requires three trump cards: technology, connectivity, and services, “technological innovation and joint promotion can bring business growth, and the cloud industry cloud innovation center can stir up a wave of digital transformation in industrial clusters, and I hope Huawei Cloud can work with more partners in the future to develop a thousand lines Hundreds of industries intelligent upgrade big opportunities.”

02 From opportunity-driven to strategy-driven

Wang Feng, director of Huawei Cloud Computing Strategy Department, brought a sharing on the theme of “Doing Real Strategy Landing, the Secret of Sustainable Business Success”, analyzing Huawei’s mechanism and dynamics from strategy to execution. He pointed out the common problems in the process of enterprise strategy management, such as the inability to implement the strategic opportunity points to each organization after they are clear, the company’s business management only stays at the company level, the budget and strategy, and so on. Then he analyzed the whole path of strategic management from four aspects: why, what, how, and how to do it efficiently.

From Huawei’s understanding of strategy, Wang Feng pointed out that the key to strategy is trade-offs, and that a company must transform from opportunity-driven to strategy-driven in order to become bigger. “When a company grows and develops, strategic management must need to be process-oriented.” He points out that an efficiently functioning process system is a summary of business best practices, and that the characteristics of a process-oriented organization can be specifically reflected in four areas: designing paths that can sustainably reach goals, focusing on behaviors that affect results, valuing standardized operating procedures, and making decisions based on facts and data.

03 Resources will be depleted, only culture is sound and vigorous

“Culture provides the soil for Huawei’s development; the mission of culture is to make the soil more fertile and looser; management is to grow crops, and its mission is to produce more food.” Ren Zhengfei used this vivid analogy to portray the value of culture. In fact, Huawei has carefully cultivated its corporate culture since the day it was born, and made it the power source of Huawei’s continued success.

At the event, Huawei’s former head of financing department & senior management consultant Wang Taiwen introduced Huawei's successful corporate culture and core value building, as well as the internal benefit distribution mechanism associated with it.

At the beginning of the sharing, Wang introduced the onion model of corporate culture, combined with the premise assumptions and management philosophy of Huawei Basic Law, and explained Huawei’s four core values one by one: customer-centric, strivers-oriented, long-term hard work, and persistent self-criticism.

According to Wang’s explanation, in Huawei’s corporate culture system, customer achievement is the purpose and essence, and hard work is the soul and core, which together constitute the main theme of Huawei’s culture. Among them, “Strivers-oriented means that the value distribution is tilted to the strivers, and the opportunities and treatment are also tilted to the strivers, so as to motivate employees to continuously create value for customers.”

“Only by promoting long-term hard work can the company maintain momentum all the time. But the company also needs a set of corrective mechanism to get it back on track in the process of moving forward. This set of corrective mechanism is to insist on self-criticism, which is just important but difficult for most companies to do.” Wang Taiwen said.

04 The CEOs talked about how to learn from the best practices for development

A day of in-depth exchanges was both novel and fulfilling, and we interviewed several of the participating entrepreneurs and asked them how they felt.

Zhou Feng, co-founder of Lechi Technology Smallring

As the benchmark of Chinese national enterprises, Huawei has a lot to learn from us. After a day of visit, there are many gains and impressive points.

Firstly, after years of precipitation, Huawei’s values and organizational management system are undoubtedly meaningful to learn from. After Mr. Wang Feng and Mr. Wang Taiwen's detailed explanation, we had the opportunity to see how Huawei's values grow and how the whole strategic layout is implemented. There is no doubt that they did not fall from the sky, nor did they happen overnight, and the entire organizational management system evolved gradually along with the growth and development of the company.

The second point is that we have a more thorough understanding of digital transformation. Digitalization has become a consensus, but we were still a bit confused about digital transformation. After this day of contact and understanding, Huawei's cloud ecology and technology services have set a benchmark for us and pointed out the direction. A series of technology innovation-related things like cloud collaboration, cloud native, data enablement, etc. not only broadened my own cognitive scope, but also inspired our team and business development.

Zhu Jiangtao, CEO of zdeer

The visit to Huawei was very fruitful and full of feelings. One of the deepest experiences is the corporate culture and business philosophy of Huawei shared by Mr. Wang Taiwen, especially the core value of striving for people.

Most of the time, people may talk about people-oriented, but the logic behind this concept is actually rather broad and tends to be an isolated slogan. But strivers-oriented is particularly pragmatic and can be practiced in the process of enterprise operation. As Huawei’s corporate culture says, “Encourage people to learn from Lei Feng, but never let Lei Feng suffer”, for the team, life goes on, struggle goes on, and the ultimate value distribution lies in not letting the strugglers suffer, which is quite similar to our left point of emphasis on “not letting honest people suffer”. This point is quite similar to the "no honest people suffer" that we emphasize in Left Point.

Du Chengshuai, CEO of Focus Movement

After a day of contact, understanding and learning, understanding the way of doing business and winning secrets of a great company can not only help us startup managers to iterate our knowledge of corporate strategy and organizational culture, but also better inspire us to plan our future development path from the perspective of top-level design and work towards becoming a great big enterprise.

Although it is said that Huawei is very big and some methodologies and tools are difficult to copy to small and medium-sized companies in actual business, after visiting Huawei, we are clearer that whether it is the digital transformation of industry or the construction of the whole incentive system and system, we can combine our own industry characteristics and company development needs and make corresponding flexible adjustments.