On December 29, Huawei's rotating CEO Hu Houkun revealed in his 2018 New Year's message that Huawei's annual sales revenue is expected to be about 600 billion yuan, an increase of about 15% year on year. Among the consumer business, Huawei (including glory) shipped 153 million smartphones for the year, and its global share exceeded 10%, ranking steadily in the world's top three, and continuing to lead in the Chinese market.
Hu Houkun's New Year's message was titled "Our Thirties: Building an Intelligent World Where Everything is Connected. In this New Year's message, Huawei said that in 2017 the global economy as a whole recovered and improved, the ICT industry in the industrial structural changes and adjustments at the same time, but still maintains a steady development, Huawei focus on pipeline strategy, strengthen the quality of management, adhere to the creation of value for customers, the full-year sales revenue is expected to be about 600 billion yuan, an increase of about 15% year-on-year.
Huawei's three main businesses are carrier business, enterprise business, and consumer business, with its cloud business singled out earlier this year as the company's fourth tier.
In one of the carrier business areas, Hu Houkun said the carrier business has been affected by fluctuations in the market's investment cycle, but has maintained solid operations. The fluctuations in the market have also made Huawei more determined to work with customers to explore and grasp the trend of network construction shifting from "investment-driven" to "value-driven". Huawei helps global carriers, on the one hand, stay grounded in reality and tap into dozens of innovative solutions such as quality home broadband, full-scene sites, Mobile Huawei helps global carriers tap into the potential of billions of dollars of existing network assets with innovative solutions such as Quality Home Wide, Full Scene Sites, and Mobile Money. On the other hand, Huawei accelerates 5G pre-commercial testing for the future, and builds a fully cloud-based network with data centers at its core, as well as a digital operation and maintenance system, to provide personal, home, and enterprise users with the best possible experience for services such as video, IoT, and cloud communications, and to realize new growth.
In the enterprise business area, Huawei said the enterprise business focuses on accelerating the digital transformation process of global enterprises, and continuously strengthens innovative products and solutions such as cloud computing, enterprise campus, data centers, and the Internet of Things (IoT), which are widely used in smart cities, safe cities, and industries such as finance, energy, transportation, and manufacturing. Huawei helps customers carry out top-level design of ICT infrastructure through its leading "end-to-end, management, and cloud" full-stack ICT solutions, and builds the ecosystem required for enterprise digital transformation with its partners*** based on its "platform + ecology" strategy. At the same time, based on the "platform + ecology" strategy, we work with our partners*** to build the ecosystem needed for enterprise digital transformation. Currently, 197 Fortune 500 companies and 45 Fortune 100 companies have chosen Huawei as their digital transformation partner. Enterprise business is showing spurts of vigor and potential.
Huawei's consumer business, which has performed brilliantly in recent years, has been making breakthroughs on the road to building a "world-class smart terminal brand", according to Hu Houkun. 2017, Huawei and Honor's dual-branded products drove alongside each other, with increasing user loyalty and rapid growth in market scale. Huawei (including Honor) shipped 153 million units for the year, and its global share exceeded 10%, standing steadily in the top three in the world, and continuing to lead in the Chinese market.
For the newly established cloud business, Huawei said it aims to work together with its partners to provide customers with stable, reliable, secure and trustworthy cloud services with sustainable evolution. Huawei cloud services have increased from 45 in 10 categories to 97 in 14 categories at the end of 2016, and more than 50 solutions are online, including manufacturing, EI enterprise intelligence, e-commerce, SAP, etc. Huawei cloud's number of users and resource usage have increased threefold since the establishment of the cloud BU. At the same time, the public cloud partner program was launched, and more than a thousand partners were developed throughout the year.
Hu Houkun said that looking ahead, emerging technologies such as 5G, IoT, cloud computing, and artificial intelligence are rapidly moving toward commercial scale, and the digital transformation of the industry is entering a deep-water zone, with an intelligent society characterized by "everything sensing, everything connected, and everything intelligent" on the horizon. Strategically, Huawei focuses on the main channel of the Internet of Everything and strives to become an enabler and facilitator of the intelligent society. The company's strategic thinking should be broad and long-term, while its business management should be lowered and down-to-earth.
Attachment: Hu Houkun, Huawei's rotating CEO, delivers a New Year's message| To our 30th year: building a smart world with the Internet of Everything
The east wind is good for the sun and makes it possible to report the occurrence of flowers and grasses.In 2017, the global economy as a whole recovered to a positive trend, and the ICT industry maintained steady development while undergoing structural changes and adjustments in industry.Huawei focused on its pipeline strategy, strengthened the quality of its operations, and insisted on creating value for customers. management, and insisted on creating value for customers, with annual sales revenue estimated at approximately RMB 600 billion, up approximately 15% year-on-year. On behalf of the company's management team, I would like to extend our sincerest gratitude to all employees for their hard work and dedication!
The operator business was affected by the fluctuation of the market investment cycle, but still maintained a solid operation. The fluctuations in the market have also made us more determined to work with our customers to explore and grasp the trend of network construction shifting from "investment-driven" to "value-driven. Huawei helps global carriers tap into the potential of billions of dollars of existing network assets with innovative solutions such as Quality Home Wide, Full Scene Sites, and Mobile Money. On the other hand, Huawei accelerates 5G pre-commercial testing for the future, and builds a fully cloud-based network with data centers at its core, as well as a digital operation and maintenance system, to provide personal, home, and enterprise users with the best possible experience for services such as video, IoT, and cloud communications, and to realize new growth.
The Enterprise business focuses on accelerating the digital transformation process of global enterprises, continuously enhancing innovative products and solutions for cloud computing, enterprise campus, data centers, and the Internet of Things (IoT), which are widely used in smart cities, safe cities, and industries such as finance, energy, transportation, and manufacturing. Huawei helps customers carry out top-level design of ICT infrastructure through its leading "end-to-end, management, and cloud" full-stack ICT solutions, and builds the ecosystem required for enterprise digital transformation with its partners*** based on its "platform + ecology" strategy. At the same time, based on the "platform + ecology" strategy, we work with our partners*** to build the ecosystem needed for enterprise digital transformation. Currently, 197 Fortune 500 companies and 45 Fortune 100 companies have chosen Huawei as their digital transformation partner. The enterprise business is showing spurts of vigor and potential.
The consumer business has been making breakthroughs on the road to building a "world-class smart terminal brand."
In 2017, Huawei and Honor's dual-branded products drove together, with increasing user loyalty and rapid growth in the market scale, and Huawei (including Honor) shipped 153 million smartphones, with a global share of more than 10%, ranking among the top three in the world. It ranks among the top three in the world and continues to lead in the Chinese market. Huawei's newly launched Mate10 became the first phone loaded with an AI chip, and we brought consumers a smartphone that is truly significant enough to be called AI-led. In the future, we will continue to understand the needs of consumers, explore the direction of change in the smart society industry, and actively innovate in AI, AR and other fields to lead the industry development trend.
We have newly established the Cloud BU, aiming to work with our partners to provide customers with stable, reliable, secure, and trustworthy cloud services with sustainable evolution. Huawei Cloud's services have increased from 45 in 10 categories to 97 in 14 categories at the end of 2016, and more than 50 solutions are online, including manufacturing, EI enterprise intelligence, e-commerce, and SAP, etc. Huawei Cloud's number of users and resource usage have increased threefold since the Cloud BU was established. At the same time, the public cloud partner program was launched, and more than 1,000 partners were developed throughout the year.
Looking ahead, emerging technologies such as 5G, IoT, cloud computing, and artificial intelligence are rapidly becoming commercialized on a large scale, and the digital transformation of the industry is entering a deep-water zone, with a smart society characterized by "everything senses, everything is connected, and everything is smart" on the horizon. We will not only focus on the industries and technologies that meet our customers' long-term needs and grasp the trends of technological innovation and business change, but also pay attention to the real challenges that our customers encounter in the process of digital transformation, and continue to create value for our customers by helping them solve problems and achieve business success. The key to Huawei's continued success in the future lies in two points: on the one hand, the strategy should aim in the right direction, but not pursue precision, leaving room for adjustment to adapt to uncertainty; on the other hand, the increasingly large organization should always be dynamic. It's not easy to do both of these things, and we need to be strategically confident and determined to move forward.
Strategically, Huawei focuses on the main channel of the Internet of Everything, and strives to become a smart society enabler and facilitator. We need to do something and not do something, and we can't consume strategic competitive power at non-strategic points of opportunity. Just like hitting a golf ball, only by hitting the "sweet spot" at the head of the club can we get the furthest distance of the ball without losing energy. We must dare to take the lead in the Internet of Everything and continue to expand our advantages; we focus only on the connection and edge computing and distributed computing in the Internet of Everything, and continue to build and consolidate our advantages; the intelligence of everything is the result of the combination of industry knowledge and information technology, and we focus on the Cloud Computing and Big Data Artificial Intelligence Platform and On-Device AI, which will make the telecommunication network intelligent and the intelligence of various industries, and will be used for the intelligence of internal management as well. management intelligence.
Strategic thinking requires a broad vision and a long-term perspective, while operational management requires a lowered center of gravity and a down-to-earth approach. In the face of the complex business situation, we should not only seek truth from facts, squeeze out the bubbles and water, and effectively improve the quality of operation by sinking the center of gravity; we should also have the courage to challenge and dare to charge, seize the opportunity of market growth, and comfortably cope with market fluctuations. Operation and management work is hard work, exhausting work, detailed work, is a comprehensive system work, need a long time of efforts to build. Representative office is the company's most grass-roots, but also the most important business unit, the company's various management actions should be centered on helping the representative office to improve the quality of operations, from the front line to the authorities, and then from the authorities to the front line, around the strategy, opportunities, goals, playing, resource allocation to form a **** knowledge and synergy, and really do a fine job, do a good job, to achieve the creation of opportunities, digging opportunities, to grasp the opportunity. The carrier business should beat the industry trend, improve the quality of contracts, and actively seek growth; the enterprise business should continue to grow at a medium to high rate and ensure that it will become the top pillar of the company's business within five years; the consumer business should consolidate its foundation, continue to enjoy good momentum, and continue to improve its profitability; and the public cloud business should be invested in accordance with the established strategy to improve the competitiveness of its products, and focus on the pursuit of growth on a large scale.
We will continue to improve and soften the business environment by presenting our value and contributions in a silent way, gaining trust, and matching the company's future size of hundreds of billions of dollars to support business development at a higher level. Huawei's value cycle platform will be value creation and sharing across the entire industrial chain. We will use the best resources, strengthen the layout in places with more resources and better policies, and build an industrial ecosystem. At the same time, we will enhance our ability to supervise internal control of risks and compliance operations, establish crisis warning and management mechanisms, and guard our corporate image.
Continue to adhere to the selection of cadres from successful practice, so that more employees with a sense of mission and responsibility, strategic insight and decisiveness, rich battle control ability, and the reverence for the will to fight and the spirit of self-sacrifice to take up important positions at all levels. 2017 we completed the promotion of 4,500 outstanding employees; in 2018 we will continue to promote 6,000 employees, of which 3,000 in grades 15 and 16, 2,000 in grades 17, 18 and 19, and 1,000 in other grades. The Representative Office is a key business unit for the Company to realize healthy operation and effective growth, and we will accelerate the selection of cadres for first-line officers, experts and staff positions such as representatives, and the Company will implement the "Montgomery" program for hard-pressed countries and regions to open up a smooth channel for rapid promotion from "Private to Admiral". The company will implement the "Montgomery" program for hard-pressed countries and regions to open up a smooth channel from "rapid promotion from private to general. Who said that there is no general in the Sahara Desert, Montgomery is not? Insisting on the results of responsibility, regardless of seniority, and realistically promoting these employees based on the results of their responsibilities; at the same time, we should see that the increasingly complex business environment puts a higher demand on the ability of front-line officers, so we should speed up the empowerment of front-line officers to improve their ability to serve, so that they dare to fight and are good at fighting. Accelerate the construction of the staff team to manage deterministic work in a timely, accurate, rapid and refined manner. Accelerate the all-round construction of the team of experts in representative offices, and train and select a number of civil generals who are capable of writing and fighting. The chief officers of each operational responsibility center should focus on combat and victory, take commercial success and sustained success as the only measure, insist on the equal importance of driving development and risk prevention, and insist on the coordination and balance of short-term gain and long-term development; the company's senior cadres should look up to the stars more often to lead the company's forward direction. The chief officials and experts at all levels should learn from Xiang Kunshan and Man Guangzhi, and really go deep into the business scenarios to understand the business and find and solve problems. To dare to use advanced weapons to win the complex information technology war, do not use the pathos of Hanyangzao culture to cover up the incompetence of the chief officer.
The excellent talent is the source of value creation of the company, we adhere to the "positive, diversified, open" concept of talent, to build the company and the talent with the creation of **** win talent management mechanism. In the face of more dynamic changes in the business environment, more complex internal business needs, external to open the organizational boundaries, with a variety of ways to integrate excellent resources, "a cup of coffee to absorb the energy of the universe, a bucket of paste bonding the world's wisdom"; internally, we should be bold to promote outstanding talent, to give outstanding talent more opportunities to grow; we should boldly develop The differentiated management of various types of talent, the formation of the chief officer, experts, staff members of their respective responsibilities of the talent structure, to promote the various types of talent can be in the best time, the best position, to make the best contribution, get the best return.
In order to adapt to the company's more complex business structure, we have to gradually establish a distributed organizational operation mode in which the group rule and each business unit are divided into separate rule and equal importance, with clear responsibilities and powers, efficient operation and effective supervision, so that each business grows independently under the control of the group***s same value and the support of the ****same platform. Our organizational formation should be flexible, from the Group to regional departments and countries, the formation can be opened and closed; our organizational scale should be flexible, so that we can get resources when we need them and release them when we don't need them. We will unswervingly continue to promote the forward shift of the company's operating center of gravity, strengthen the operation of the project-based organization, and truly realize the front-line command of the artillery, and the organs to support the service. Through the reverse operation combing after the forward shift of management responsibility and authority and the establishment of the mechanism of first-line evaluation of the organs, we should strive to realize the transformation of the functions of the organs into platform, service and market-oriented, so as to vigorously promote the streamlining and merging of the organs' organizations and reduce the redundant and inefficient management levels.
Continuing to adhere to the values of "customer-focused, striver-oriented, and long-term hard work", adhering to the evaluation principle of "responsibility and result-orientation", and carrying out the dual drive of "material and spiritual civilization", we will continue to promote the development of "material and spiritual civilization", and to promote the development of "material and spiritual civilization" in the company. The company adheres to the evaluation principle of "responsibility and result orientation", implements the "dual-wheel drive of material civilization and spiritual civilization", combines the vision and mission of the organization with the motivation of employees, and constantly stimulates the intrinsic motivation of the organization and employees to pursue higher success. On the basis of internal and external compliance and self-responsibility, management is based on trust and promotes the development of the subjective initiative of all types of organizations, cadres and employees. By simplifying process KPIs and enhancing collaborative assessment, we will reshape the group spirit of "celebrating victory and saving each other in case of defeat".
In 2018, Huawei is in its thirtieth year, and is in its prime. In the next twenty to thirty years, mankind will enter an intelligent society. Facing the new era, Huawei aspires to: bring the digital world to every person, every family, and every organization, and build an intelligent world where everything is connected. This is both the vision that inspires us to work tirelessly and the sacred mission we have been tasked with.
The flower on the fragrant stranger is like a brocade, and the first branch of the east wind is folded. A new era full of hope and vitality has arrived, and I believe that years from now, you and I will still be thrilled to be in Huawei and to have experienced such a rushing era. We would like to wish all of our colleagues and your families a happy new year, and in 2018, let's embrace more harvest and growth together to create a brighter future!