Showing posts with label Huawei. Show all posts
Showing posts with label Huawei. Show all posts

Saturday, July 30, 2011

The amazing make-over of Huawei

Huawei Technology in Shenzhen, ChinaHuawei HQ in Shenzhen via WikipediaChina's largest IT manufacturer and developer Huawei from Shenzhen has gone through an really amazing make-over. Earlier this week I was asked by a Dutch broadcasting station if I could collect some information about this Chinese company. The Dutch minister of Economic Affairs had organized a trade mission with Huawei earlier in 2011, but at the time hardly anybody seemed interested. Now, my friends at the Dutch VPRO hoped to get some proof that this company was a PLA-front trying to collect secrets in the West, they suggested to me.

I replied right away that there competitor Cisco is most likely a CIA-front and was probably easier to prove than the Huawei/PLA connection. When you are in the IT-business, you need enough of your own expertise to make sure partners, whether American, Chinese or Dutch, do not run away with what you consider to be business secrets. Not doing business with anybody is the only safe way to prevent espionage.

It might still take another month before I can discuss any plans (Europe takes holidays very serious and traditional media are largely out of business from March to September), and I might have spoiled it by denouncing the PLA/espionage angle to start with. But it was reason enough to play around on the Internet a bit, to check whether my own view on Huawei was still acurate.

Four, five years ago, Huawei was mostly known from its ventures in China and developing countries and was making its first steps into the developed markets. That was initially not a huge success. Media described how Huawei's military like organization structure drove potential foreign employees crazy. A string of media reports made fun of those efforts by Huawei at the time, and I got those stories also confirmed by business people who tried to help the company setting up shop in Europe.

But a short tour on the internet made clear that my view on Huawei could also need some adjustment. While I always kept in mind that the negative coverage half a decade ago could well by organized by PR-spin doctors of Huawei's competitors, now the reversed seems to happen. I'm no expert on their technical achievements, I do know when I see a professional spin. Included you find a few very sleek video's from their US operation, where you find former managers from Nortel and BT, singing the gospel of Huawei.

In these times of crisis, it might be easier for Huawei to pick up qualified managers, but both their stories do their bit: I found them rather convincing, even when you realize this is corporate propaganda. In the US, Huawei is still seen as the Chinese enemy, destroying US jobs and jeopardizing its security. And when you look at both video's, you hardly realize that Huawei is actually Chinese, their background is downplayed very much, although the huge China market might be one of the reasons for its success.

I also realized why the Dutch government changed its position towards Huawei from rather reluctant (following the US lead) to an enthusiastic supporter. The West-European headquarters are based in Amsterdam and has already 350 employees. When you look at the enthusiastic stories from Silicon Valley, you can see why drooling Dutch politicians made their kowtows in Shenzhen.

Not only in terms of employment Huawei is interesting, potentially it can help to boost also knowledge centers in Europe, if it only had a few comparable with Silicon Valley. The second part, might for a large degree be a political illusion, as long as scientific innovation has no European legs and is even divided over different regions in a small country like the Netherlands.

But most certainly, here is news being made, although in a different way traditional media might think.






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Monday, May 30, 2011

Chinese firms listen better than its competitors - Bill Fischer

Bill Fischer
Competitors from China are becoming better, IMD-professor Bill Fischer concludes in Forbes. Cheap labor and competitive pricing are replaced by a far greater asset: listening better to their clients. Fischer zooms in on UnionPay, China's only electronic retail network.

Huawei, Lenovo and Haier are some of the familiar Chinese names in global competition, but more are getting ready, Bill Fischer discovered at the UnionPay headquarters, talking to Mr. Chai Hongfeng, Director and Executive Vice President.
He is an urbane, sophisticated, cosmopolitan executive, who could have stepped off of the cover of Forbes, and he summarized the company’s managerial needs with four words...:

“Study, Standards, Cooperation, and Innovation”: this is not about price. Nor is this the image of the traditional State-Owned Enterprise dinosaur.What this is, instead, is a recipe for learning more and faster than their competitors. This is all about building a smarter organization.

Some 16 years ago, Peter F. Drucker, the management gurus’ guru, predicted that the next big managerial innovation would come out of China, and we’re still waiting. Perhaps, somewhat unexpectedly, it might just be the ability to listen better in an effort to construct faster-learning organizations? In the spirit of that sentiment, my good friend William Keller, the former CEO of Roche China, and a long-time Shanghai resident, has observed that in the competition for learning about how to do business in this brave new world of globalization, Western firms travel the world telling others “how to do it”, while Chinese firms travel the world “listening to the lessons of others.” Keller asks: “Who do you think will learn faster”? Granted “listening” is not necessarily the same as “learning”, nor is either a guarantee for building an effectively “smarter” competitor. But, listening and learning do strike me as excellent starting points for competing in the ideas business.
More about his findings in Forbes.

Bill Fischer is a speaker at the China Speakers Bureau. When you need him at your meeting or conference, do get in touch.
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Thursday, September 23, 2010

Huawei under US scrutiny - Wendell Minnick

Wendell_MinnickrevWendell Minnick via Flickr
Eight Republican senators have taken on China's electronic firm Huawei, the alter ego of the US giant Cisco. The eight accuse Huawei in a letter of US departments of having ties with Iran, the Taliban and the People's Liberation Army (PLA), writes Wendell Minnick in Defense News:
China’s largest networking and telecommunications equipment provider, Huawei is looking to bid for subcontracts offered by Sprint Nextel, a supplier to the Pentagon and U.S. law enforcement agencies. The Chinese firm’s effort is being spearheaded by Amerilink Telecom, a Kansas-based company whose chairman is retired U.S. Navy Adm. William Owens. The former vice chief of the Joint Chiefs of Staff warned in his 2000 book about a rising military threat from Beijing, but more recently has developed business ties with Chinese firms.


If Huawei wins, it could “present a case of a company, acting at the direction of and funded by the Chinese military, taking a critical place in the supply chain of the U.S. military, law enforcement, and private sector,” the letter says. “We are concerned that Huawei’s position as a supplier of Sprint Nextel could create substantial risk for U.S. companies and possibly undermine U.S. national security.”
The letter is yet another step in the increased military tension between China and the US, documented by Wendell Minnick for Defense News.
More in his weblog.

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Wendell Minnick is a speaker for the China Speakers Bureau. Do you need him at your meeting or conference? Do get in touch.