Recently, Huawei’s founder, Ren Zhengfei, sent an internal email to all employees and shared his briefings with local employees at Huawei’s Japan Research Institute. During the discussion, Ren Zhengfei gave a strategic answer to questions raised by local employees, the future development and construction of the Japan Institute, the differences in Sino-Japanese culture, and the low ratio of Huawei's R&D investment.
Note: As the original text is very long, in order to facilitate reading, Lei Feng network (search "Lei Feng network" public number concerned) summed up 12 sentences, as the subject and subtitle of each question and answer session. In addition, we have also simplified the description of the problem, but did not change Ren Zhengfei's answer.
Q: I heard that a laboratory for imaging has recently been established in Japan. What kind of talent does this laboratory require? What is a large-scale laboratory? What is the main contribution to the company's business?
Ren Zhengfei: I think 90% to 95% of information flow in the human society in the future should be images. Then how can we provide a supporting platform for images? We first need to understand the image. What is the algorithm of the future image? What are the genes in the image? I think that Japan is leading the world in the image. Looking at the construction of the image system tomorrow, can we solve the problem of future algorithms by following existing genes? Of course, what I'm talking about is not only 4K TV. It's not just VR. We have more problems waiting to be solved. We think that Japan has genes in this area, and all the institutes in the world are united and we are likely to be in the image. Technically leading the world, of course, we are not trying to do video products such as televisions, and we do the platform is to be able to support the transmission of the image of the future Xu Zhijun: We discussed this issue in the morning and the Japan Image Research Institute to be established is to support intelligence. Mobile phones do their best in the industry in photography and video, including the entire process of photography, image processing, image storage, and image display. Xu Zhijun speaks only our minimalist program. Our highest program is to solve video class algorithm problems.
2 Intensive cooperation, focusing on the victory in the main channel.Q: When the Japanese Institute establishes a good relationship with local suppliers in Japan, it will also introduce some new technologies, new materials, and parts and components to the Chinese headquarters. Under the current global economic situation, in order to increase the value of the Japanese Institute, we hope that the President Give us some suggestions, thank you.
Ren Zhengfei: We and Japanese companies have cooperated and studied a lot of technologies, materials, and components. We don't want to produce these things. We hope to continue to be produced by Japanese companies and integrate them to sell to us. This way, we have no conflicts and conflicts with Japanese society. But common development. We mainly win on the main fairway, and we also hope to share this victory with our partners. Therefore, we will continue to expand the research scope of the Japanese Institute so that our company will be in the leading position on the main channel. Just now Xu Zhijun talked about starting in the terminal imaging field because we couldn't get too high and we couldn't do it for a long time. So we have a minimum starting standard. Now that you have done a good job, you are starting to move forward. We hope to continue to deepen. Of course, not only Japanese institutes, but also Russian institutes, French institutes, and institutes around the world work together.
3 Chinese society will return to rationality from the era of rampant fakes.Q: I read your “Spring of the Northland†in 2001. At that time, your impression of Japan was very good. Over 10 years have passed. Japan has also undergone many major changes during this period, and you do not know what impression you have on Japan.
Ren Zhengfei: Your exam took me down. I should admit that the whole world has become better. Our quality of life is better than before. The whole society is making progress. Japan attaches great importance to quality. This is the most fundamental basis for future victory. After 100 years of transformation, Japan has become synonymous with high quality in the world. I believe that through years of hard work, China will become a new synonym after many pains. The Chinese people have snatched the world's milk powder. Why do they not allow their children to eat fake food? Therefore, a tremendous transformation is taking place in the Chinese society, from a bubble society where counterfeit goods are rampant to rationality. So I think both Chinese society and Japanese society are making progress together. Japan suffered a huge economic crisis in the past 20 years. However, after the burst of the bubble, Japan was the real thing, including Toyota, Panasonic... Ah, these real goods supported Japan through a difficult period. I hope that after the bursting of the Chinese bubble, all that remains is good products. If the remaining tofu is acid, then we will encounter very serious problems.
4 Be practical to make your own products, customers will be willing to pay.Q: Under the backdrop of Japan’s political coldness and coldness, our previous marketing efforts focused on marketing peer-to-peer marketing to customers, rather than focusing on the entire industry. What do you think of Ren?
Ren Zhengfei: First of all, we are a commercial company. We should not ask politics because politics is the politics of politicians, not our politics because we do not understand politics. We believe that it is still necessary to do a solid service for our customers so that we will win our success. In fact, Huawei's success is very simple, there is no complicated reason, we are just right for the customer service, our eyes is to see the money in the customer's pocket. Can you give me some money? Can you give me some money? Can you give me more money? If you don't see me give me money, it means that your Japanese representative office is not good enough for customers. So we really serve our customers, and customers just put the money in their pockets to us. We don't have any complicated values, especially small companies, not so many methodologies, and seriously buying tofu to buy someone. I also had a long queue at noon yesterday to eat noodles. People repeatedly introduced me to this noodles from China. How did the Chinese people not do the noodles well and let the Japanese do the noodles so well? This requires reflection. So any one thing, don’t put the methodological theory so complicated and it consumes our energy. In fact, we’re just saying that you really feel right to the customer and someday the customer will put the money in your pocket into your pocket. The customer is also willing.
5 Really open and let Japanese employees assimilate Chinese employees.Q: As a local employee, during the year of working for the Huawei Institute for Japanese Studies in Hong Kong, I encountered a lot of cultural and organizational obstacles. I would like to ask the next President, on how to overcome the cultural obstacles, what will it have to do? Kind of advice?
Ren Zhengfei: I think there is no cultural obstacle. We are a technical commercial company. Why do we have cultural barriers? If we want to say cultural barriers, it is the Chinese people's habit of changing their carelessness. If the Chinese people are not careless, why should we establish a large-scale system in Japan, Germany, and China? As our product capacity increases and speed gets faster, in fact, our risks are getting bigger and bigger, not smaller and smaller. Any small problem can explode into a big problem. In order to make the quality of these products more reliable, we use the spirit of high spirits of the Germans and Japanese, and we work together with Chinese designers to improve product quality. At least I believe that Germans and Japanese people will not tell lies, but we Chinese people say a lot of lies. So we are changing ourselves so that we have truthfulness, openness, and criticism. Who came to criticize us with a whip? We hope to be Japanese and German, so our R&D system has been well verified and our product quality has improved dramatically. We all know that our current operating conditions are very good. It is very good that the maintenance cost from our products has been greatly reduced. One of our products, the customer refused to sign a maintenance contract with us, because this product is as good as the Japanese household appliances. If all our commodities are not maintained any longer, we do not know how much profit there is. We must do not maintain the end product. If our end product is sold out, we will no longer have to control it. Then we all have little girls and young men selling matches. We will embrace the world. The key is whether our cell phones are sold or if there are problems. Fortunately, our partner Apple also has problems. Otherwise, we cannot survive. So we strive for our products to be better than Apple in the future. Then we must strengthen. So I think our test is indispensable, the test can not be tested according to the standard procedure, R&D personnel may test according to the standard procedure, but this may not be used in actual reality. So you have to mess up the test, you have to change the pattern to toss this thing, see it there is no problem. Finding a problem requires issuing a big certificate. When a certificate is issued, it means that your product does not require maintenance. Xu Zhijun: It is normal to have cultural conflicts. It is only when you see these cultural conflicts that there are values ​​of Japanese and German TDCs. Without these conflicts, we cannot bring us to Japan or Germany to establish TDC. But in the course of the conflict, I hope that you will assimilate and share with you different parts, and not vice versa. If you were assimilated by them, then we invested in Japan.
6 Quality is reflected in all aspects of the product.Q: You mentioned in May last year that you want to establish a large quality system in your company and build a quality center in China, Germany, and Japan. I would like to ask how Japan's competence center has actually landed.
Ren Zhengfei: Recently, a girl told me that she wanted to change a new washing machine for her parents. Their original washing machine was Japanese. It took more than a decade to be old, but I still want to change something new. What should I do? The parents were not willing to lose. Later, the Japanese washing machine was specifically used to wash the quilt or something, and changed a new washing machine. She "hated" how old Japan's quality is not bad. I bought a Japanese Panasonic washing machine more than ten years ago. Matsushita loved my wife card. In the 1980s, I bought two or three houses. This is not bad. If Huawei's products are the same, we will It's incredible. Therefore, the construction of a large-scale system has actually begun. It has begun in ideological and philosophical aspects. The question you asked just now is part of the system of great quality. Our mobile phone started at the latest and went to the third place. Isn't this the quality system of your institute? Is the big quality system still something we can see and Touch? Isn't that what you guys are doing, camera, aperture, aren't all of your things a big quality system? In the future, your screen will be coated with nano-materials once. There will always be no fingerprints. You look at the brilliance. Why do you think the girls need to wipe it and look at it? She thinks that the fingerprints on her face are the blemishes on her face. There is no Do you not buy more girls? This is a large quality system. What you do every day is a big quality system.
Staff replenishment: I will add a practical example. In Japan, the usual practice is to consider quality issues and quality control in the early stages of design so that we can control costs. However, Huawei's approach is to make things first, and then consider the cost reduction. We hope that quality control issues can be considered early in the design process.
7 Do not invest, just choose the best supplier.Q: Huawei applied some Japanese screen technologies to its own products. I think it is very necessary to invest in local suppliers. This is my proposal. Do you not know what your considerations are?
Ren Zhengfei: In principle, we do not invest in external investment. Investment means buying things for life because she is my daughter-in-law. We are now seeing things differently. Buy this one today if it is good, and buy it if it is good tomorrow. Of course, we also establish strategic partnerships and hope that you will not lag behind. As long as you are not behind, I will buy you, but you are behind, I will buy someone else. We are mainly concerned that all products are the best in the world and not produced by my daughter-in-law. I will assemble it.
8 can not make money? Explain that you have no skill.Q: Can the company loosen the Japanese Institute on manpower or efficiency requirements?
Ren Zhengfei: We will count your bonuses and TUPs back to the representative office in Japan. In the future, we will spread Africa’s war fees and hard subsidy costs to Latin America’s air fare and distribute them to various ministries around the world. Africa needs to buy good jeep vehicles. To avoid the dangers of war and kidnapping, the Japanese representative office must also pay for it. In so doing, you must make more money. In developed regions, you don’t make money. Do you allow poor Africa to subsidize you? Making no money means that you have no skill. If you are losing money, why should I support your development? Therefore, if you want to change this reality, you will have the possibility of development. Your development will depend on your own chances of making profits and relying on black African money to invest in Japan. Your understanding is wrong. You have created great value. I also let you be a general. Our African brethren with bullets and rain are brave and brave. Why? They promoted the generals too fast. They had too many bonuses. Their canteens were too beautiful. They were eating raw food, so the African brothers were full of energy and rushed for the market. However, it is not possible to transport the grain they have rushed to Japan. Japan's strategic investment needs your efforts. You see that Japan's contribution margin is still relatively low.
9 For the spirit of contract, you can eat some food.Q: There is a lot of cooperation in R&D in Japan. All of them are billed by the yen and the partner. Before the yen was depreciated, if the yen is appreciated later, our development costs will become higher. What do you think about this? What's the problem?
Ren Zhengfei: At that time, Japan and Japan had decided to use the Japanese yen as the unit for purchasing. The yen has been rising. Japanese suppliers are very happy. With the depreciation of the yen, we will not change our policy of paying in yen. Must abide by a contract spirit. Of course, we also hope that the yen will appreciate, but the yen will not appreciate. I think it will appreciate. Since Japanese goods are good products, you can see that Chinese people are madly robbing Japanese goods. I might have to give people extra shipping charges this time when I return to check-in. When we come to Japan, we are rushing to buy. Will the Japanese economy grow? As we have picked up, we still insist on the yen. This is the contract spirit. There is no economic development without a contractual spirit.
10 Rapidly adapting to the changing needs of customers can capture the market.Question: Under the premise of a global strategy, in the face of some specific requirements of the Japanese domestic market (such as many norms, styles, agreements, etc.), how does the company intend to develop the Japanese market?
Ren Zhengfei: First of all, I want to ask if Apple is a global company? Which manufacturer is the most popular terminal in Japan? Apple can do it. Why can't you do it? In front of Big Brother, why can't we follow Big Brother? Xu Zhijun: The strategy of our terminal in Japan is similar to that of Apple. Therefore, Apple is somewhat personalized in Japan. It is not entirely when you can't sell it. You will not vote for it and you will not vote for so many people. Which country in the world sells, and which country do you go to, why should you own the whole world? There are several countries in the world that sell well. Xu Zhijun: We will not go that way again, such as designing one or several products for the Japanese market alone, but we will cover Japan with global products just like Apple. . First of all, why do mobile phone manufacturers in Japan jump out? If they sell feature phones, they will remain the same in the world for decades. Japan lost its market because it cannot adapt quickly to customer needs. The second one is that the customer's demand is fragmented, and the Japanese mobile phone manufacturers are not adapted to it. We first have a large public platform. We understand some of the personalized needs of Japan on the public platform. If we go one step further next year and the individual needs of Japan cover the public platform again, then the individual needs will be less, then we can add some personalized requirements. We are meeting the individual needs on the big platform, not A country that customizes several mobile phones will not be able to upgrade Xu Zhijun in the future: Rethinking that mobile phones made by Japanese local manufacturers cannot be global, eventually leading to large-scale development.
11 Internal reform: How big is the heart and how big the stage is.Q: Can the Japan Institute have certain autonomy in forward-looking and innovative projects?
Ren Zhengfei: Xu Zhijun: I understand this issue, that is, the Institute does not have an independent budget to do research and innovation projects. All the institutes have mentioned this issue. However, our current funding is covered by product lines or research projects. This has always been a contradiction. From the perspective of the institute, it is reasonable to study all the budgets for innovation and research on new projects. However, at the point of view of the product line, we are afraid of duplication, and we have not yet obtained a good solution. I think that the 2012 laboratory will surely have a budget every year in the future, which is a percentage. This budget will not allow anyone to spend some money to do some forward-looking investment. With this change in the budget model, Xu Zhijun goes back to study and research Xu Zhijun: Now the US Institute of Technology Pilots, Japan Institute has not yet come.
Q: Can the proportion of foreign research institutes doing innovative research projects be higher in places with excellent resources?
Ren Zhengfei: You raised a big issue for us, that is, reform of our organizational structure. We are willing to set up a research institute on top of us. Our senior experts and senior cadres can brainstorm in this institute to understand what the future direction of the world may be. Our 2012 laboratory will do some verification. In the past, we attached great importance to the work card. Without a work card, we did not think it was ours. Is our vision so relevant to our work cards? In our coffee cup, there are many scientists who do not have work cards. We also have to support them so that we can have such a big heart to embrace the world. To brave the world, you must dare to encroach on the mountains and rivers. Mt. Fuji and the Himalayas eat in your stomach. You see how big your heart is. We must open our hearts and embrace the world. The Institute of Ideology needs to identify a boundary, a project within a boundary, we allow innovation, allow both external scientists to innovate, and allow internal innovation so that even if a black swan appears, it will fly out of our coffee cup. We have The conditions will turn this black swan into a white swan, so you are talking about the possible reform of our organizational structure in the future. This reform is brewing.
12 No financial ratio is required on the road ahead.Q: It is reported that Apple’s sales revenue this year is more than US$200 billion, R&D investment is more than US$9 billion, and Huawei’s sales revenue was more than US$60 billion last year, R&D investment is also more than US$9 billion, and investment from absolute amount. In terms of proportion, Huawei’s income will be lower than that of Apple. There are several explanations for this. On the one hand, we can say that Huawei looks at the long-term. Apple will take a short-sighted look. However, another explanation is that Huawei's R&D investment income ratio is even lower. Don't you know how to look at this issue?
Ren Zhengfei: In your opinion, which company is more hopeful? Zhang Liping: I think Huawei is more hopeful. You all think that the distance between Huawei and Apple is shrinking. It means that our efforts are effective. Apple has more than 40 years of history. Everyone should not only see Apple's mobile phone. The world's first PC was invented by Apple. After Apple invented the Apple computer, it used more than 5,000 people to copy the Apple's back-end and did a PC. After making a PC, IBM found that the PC was not profitable, and invented the compatible machine (X86), thus creating a computer era. Therefore, the computer age must thank Apple for inventing the computer, including the mouse. In the second era, Apple invented animation and image processing technology. The third era is iTouch. At that time, I just thought that adding a mobile phone to this stuff is not very powerful? If not, two years later, they issued the first generation of Apple mobile phones. Apple has changed the world. We want to thank Apple. After Apple invented the mobile Internet, this pipeline was thickened. Bold, who made a fortune? We are rich. We can sell more network equipment. If we do not have this era, we will slide down. Huawei may not be there. The leaders will not be there. Will this industry still exist? We have followed up from behind and the terminal has only been recovering for a year or two. It is clear that it was only developed in the second half of last year. In the first half of the year, our organizational structure was a chimney-like structure. After I went to see the router's development system, I called Yu Chengdong and asked him to check it out to see the modular development model. Yu Chengdong just left the plane from Beijing and he went to see it. The organizational structure was changed to a platform-style, modular structure. Only after Huawei’s mobile phone got up and it was enough to sell 20 billion US dollars, it was crazy enough. In fact, if you don’t listen to him, he really gave me. It's bigger than you think. Because he dared to tell the truth to me and dared not tell the truth to others and tell the truth to others. Others wanted to get him a budget, ask for money, and give pointers. I said that I don’t want to, we’re on the way, we Why is it so simple to look at the financial ratio?
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