Ruihua Brainstorming Meeting (hereinafter referred to as “Brainstorming Meeting”) is an innovative forum adopted by the Ruihua Forum of Zhejiang University. In comparison with theme report and special speech, “brainstorming meeting” stresses the face-to-face interactive communication among entrepreneurs, experts and scholars, fully motivate the involvement of participants, initiate brainstorming, draw on wisdom of the masses and finally put them in place to serve for the growth of enterprises.

Issue Background

The company serves as the OEM for electronics product and began to transform to the OBM (Original Brand Manufacture) from 2014, with its sales performance increasing by 80% rapidly. During the fast development, it exposes the organization system development problem which calling for the establishment of HR system and quality system urgently to make company grow stronger and bigger.

Expert opinions

             Wu Xiaobo

School of Management, Zhejiang University, Distinguished Professor of Chang Jiang Scholars, Co-head of Ruihua Innovative Management Research Institute of Zhejiang University, Director of “Innovation Management and Sustainable Competence Research” National Philosophy and Social Science Innovation Base in the Zhejiang university. He has been engaging in the teaching and research on the innovation and strategy management of Chinese enterprises in the global network and committed to promote the healthy strength leading the development of Chinese economy.

• The success of enterprises could hardly be achieved by single product, but also depend highly on the overall strategy. At present, there are many opportunities in the market, but the enterprise resources are limited. It shall depend on the strategic planning to arrange operation activities.
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• To seize the commanding height of the market, enterprises shall on one hand focus on the “front stage” of the market end (such as channels and sales) and on the other hand follow and support the “back stage”. HR system and quality system are important compositions of “back stage”. The key of how to dock the “front stage” with the “back stage” of enterprises lies in the strategic planning and layout of enterprises.
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• 5 pillars for the strategic planning: specific value appeal; customize value chain for customers delicately; define clear trade-off standards in accordance with strategic planning; generate compatibility and complementarity on activities of the value chain; make these links form close loop at last.

            Wang Wenjia

 He joined Huawei Company in 1996, serving as the responsible person of foreign cooperation office, manager of marketing engineering department (Beijing branch), deputy manager of marketing operation department and commercial consulting department in the Chinese region, manager of strategy and business development department and the director of R&D management office in Huawei Symantec Technologies Co., Ltd (the JV between Huawei, Symantec) and the manager of network product line business development department of Huawei.

• Enterprises summarize lessons-learned and clarify strategies timely in the rapid development are extremely important for the following-up development.

• Several key procedures and key points for the strategic planning.

1. Review the operation status of the previous year and analyze the gap. It could clarify what’s the status of the enterprise and what are the competences and highlights of enterprises by reviewing key indicators of finance, market and customer. Later, by taking the company’s targets set at the beginning of the year, it should find out the gap and analyze reasons for such gap. Furthermore, it should analyze key investment, that is, check whether the competence investment in key products and key sectors has been put in place and whether take the following upgrading plan of products into plan.

2. Enhance the insight into the market through methods of industrial value transfer trend. Take the telecommunication industry as an example; people tend to set desk phones at the end of 1990s while the value of the whole industry transferred to the market of mobile phone after 2000. If the trend of value transfer is not understood quite well, the enterprise would fail to exist in the era. Therefore, to detect industrial development trend and potential growth point, it should magnify the strategic vision of enterprises to develop the long term vision.

3. Strategic intention. For questions of “What’s the target scale of the company” and “what kind of company does it intend to be”, the answers lie in the vision, mission and values of enterprises. The strategic intention is represented in various aspects of the organizational operation, including the market expansion plan, speed and competency. It could also make plan and assessment on the yearly basis by designing strategic milestones.

4. Business designing. It mainly includes links of customer choice, value acquisition, customer value, and strategic control point and value division. Intellectual property, resources and customer relationship are important strategic control points, which could alleviate the risk that enterprises are imitated within a short term. For example, Huawei outsourced the production link to Foxconn when its output value reached 40 billion, in order to give full play to their independent professional strengths. Therefore, the labor division of enterprises in the value network is adjusted with the growth of enterprises.

5. Key measurements. Huawei mainly emphasizes three types of measures. The first type is to ensure the effective growth, such as new customer exploration; the second type is the competency construction, including product innovation, technology innovation and customer relationship maintaining; the third type is excellent operation, such as learn from optimal practices of the industry, solidify them and support them with information technology.

6. Organization design. For instances, to realize the development targets from 3 years to 5 years for the organization, it shall clarify organizations’ requirements on the per capita profits, judge whether the organization reform is needed in accordance with the new business. From the perspective of talent strategy, Huawei especially emphasizes on identifying two types of key talents, with one being the cadres playing the leadership in exploring new business and the other being the technical experts in the strategic sector of the company. 

Attachment: Ruihua Innovative Management Research Institute, the School of Management, Zhejiang University

Ruihua Innovative Management Research Institute, the School of Management, Zhejiang University was established on 1^st July 2014. The initial purpose is to discuss how to establish the management theories and practice system with Chinese characteristics by taking the development history and experience as research objective, and thus develop the management theories and methodologies belong to China and featuring global influences.

 Ruihua Innovative Management Research Institute follows the dual-head system. Wu xiaobo, president of the School of Management of Zhejiang University, and Tian Tao, the consultant of Huawei international consulting committee, serve as the co-head. Guo Bin, professor of the School of Management of Zhejiang University, Xia Yong, the former senior vice president, Hu Yanping, the former senior vice president of Huawei, take charge of the daily operation businesses of Ruihua Innovative Management Research Institute. Doctor Wu Dong of the School of Management of Zhejiang University and Li Chuantao, the deputy director of the teaching and research in the Dark Horse--Huawei Special Training Camp.

Ruihua Innovative Management Research Institute is devoted to grow into the global open platform for the research of Huawei management theory, attract extensively experts, scholars and researches having interests on Huawei management, develops professional database, talent base and research network for the research of Huawei and establishes the important academic and information communication platform featuring international influences and keeping in trend with the management theories and practices of Chinese enterprises.