Huawei - Digitalization

1. HUAWEI DIGITAL ENABLER
TOWARDS DIGITAL
TRANSFORMATION PRESENTED BY
Erlet Shaqe
12th Dec 2023
Course: Digitalization and the
industrial revolution

2. Agenda
History
Huawei’s rise
Structure of the
industry
Research & Innovation
Huawei’s DATA
Data Growth
Scaling up
ICT is the foundation
High-tech war
FLYWHEEL - THE
BASIC

3. ROME WASN’T BUILT IN ONE DAY.
HUAWEI THE SAME
Foundation
1987
Ren Zhengfei launched the business
in 1987. A significant accomplishment
for the firm was introduced in 1993
with the release of its C & C08
program-controlled telephone
switch. Despite fierce competition
from Alcatel, Lucent, and Nortel
Networks, Huawei concentrated on
low-income and hard-to-access
market segments in order to expand.
1996
2004
2012
2019
2023
Major turning point
Beijing's government formally
declared its intention to promote
national telecom producers while
limiting entry for outside rivals.
Internationalization
The C300 was Huawei's first phone
to be shipped. In June 2005, Huawei
released its first 3G phone, the U626.
To facilitate low-cost financing for
clients purchasing its telecoms
equipment and promote its sales
outside of China, Huawei and the
China Development Bank inked a $10
billion credit line.
170 countries
In 2012, Huawei ranked first in the
world for telecom equipment and
first in China for telephone network
equipment. In 2014, Huawei emerged
as the global leader in international
patent applications.
US sanctions
Huawei surpassed Samsung to take
the top spot in the global
smartphone sales rankings by the
second quarter of 2020. In 2021, the
EU Joint Research Centre (JRC)
classified Huawei as the world's
second-largest R&D investment.
issues with product security and US
geopolitical tensions. The MatePad
Pro from Huawei was released.
The Ban and chip-making
After years of lobbying by the US, which
is a member of the Five Eyes
intelligence partnership together with
Australia, Canada, New Zealand, and the
UK, Huawei devices have been
blacklisted. Numerous nations began to
forbid 5G networks.

4. NOKIA
Served Market 40% 60% 80% 90%
20%
Ericsson
Motorola
Cisco
Huawei
Underdeveloped market- Unserved Market
Developed market
HUAWEI’S RISE
Huawei has placed much stress
on innovation to supply cheap
products quickly to the market
and correctly match demand of
its customers
Open Innovation and
intellectual property
Enables Huawei to deliver
cheap and quick products to
the market. Inclusive business
incorporates the Base of
Pyramid (poorest group of
people).
Overseas expansion
Huawei adopts an employee
shareholding scheme with the
company wholly owned by its
employees, to support open
innovation and loyalty.
Organisation strategy
is essential

5. All
network
hardware
revenue
($US
billion)
2020
Structure of the industry before and after.

6. RESEARCH & INNOVATION
On the end 2022, Huawei
held a total of 120,000+
active patents.
120,000+
Total investment in R&D
22.5B$, of total revenue.
25.1%
At the end of 2022, 114,000+
employees, 55.4% they worked
in R&D.
55.4%

7. FLYWHEEL - THE BASIC
Connectivity:
is a fundamental human need
is competitiveness for enterprises
is a catalyst for economic growth
S
c
a
l
e
u
p
m
o
r
e
p
r
o
d
u
c
t
s
Reduce costs
I
n
n
o
v
a
t
i
o
n
Connectivity
Network
infrastructure
Better services
to encourage
consumption
Ecosystem
development
Integration, Aggregation, Innovation
Ecosystems and Business Models Dev:
IoT Internet of Things products
Cloud: Services
IoT chipsets
IoT platform
IoT operating system

8. HUAWEI’S DATA
Operational efficiency: From manufacturing
processes, to supply chain operations,
equipment performance can be used to
optimize operations, improve productivity,
and minimize costs.
Customer insights: Customer interactions,
usage patterns, and feedback can provide
insights from customer preferences,
behaviours, needs, which can be used to
enhance products and services.
IoT applications: IoT devices can be used to
create new value-added services, develop
new business models, and drive innovation.
Business intelligence: Data analytics
including market trends, competitive insights,
and performance metrics, which can inform
strategic decision-making and drive business
growth.
HUAWEI COLLECTS A WIDE
RANGE OF DATA
Environmental Data - Agricultural Data - Energy Data - Consumer Behavior Data
Insights and Analysis - Decision-Making - Product and Service Improvement - Sustainability and Efficiency

9. EXPLOSIVE DATA GROWTH
NEXT 10 YEARS
THE PACE OF DIGITAL
TRANSFORMATION IS
INCREASING, MAKING DATA A
KEY ASSET FOR ENTERPRISES
From the Internet of Everything to
the Intelligent Internet of Everything.
Free people from complexity with
intelligence.

10. Strategy +
Innovation
Data is the
foundation
By digitizing operations and
building digital platforms, can
that data be the foundation for
digital transformation.
Bringing digital to every person,
home and organization for a fully
connected, intelligent world.
Digitalization has become a new blue ocean for industries and is
shifting digital productivity from quantative to qualitative.
FROM SCALING UP TO LEAD INDUSTRY
Intelligence is
the destination
Drive productivity with data, put
intelligence to use, making data
on-demand, easier to
understand, and actionable.
5G for example, the influence
on communication network
Influence of 5G on the incomes of different
industries by 2035.
5G network is expected to increase the
incomes of various industries by an
average of 5% by 2035.

11. 5G to B, Promotes the Digitalization of Various Industries

12. ICT is the foundation of digital transformation, where it all started.
Without ICT, everything is inaccessible.
The critical elements include the development of 4A networks, 3C computing power and 2I technology.

13. US sanctions
The US has imposed
sanctions on Huawei
since 2019, restricting
its access to US
technology and
markets. The US has
also pressured its
allies to ban or limit
Huawei from their 5G
networks.
European
regulations
UK, France, and Sweden
have banned or
restricted Huawei from
their 5G networks,
citing security
concerns. Other
countries have
adopted a more
cautious approach.
Other regions
Made in China
2025
Regulatory and US‒China “high-tech war”
Australia, India, and
Japan, where it has
faced bans or
restrictions from 5G or
other telecom markets.
Huawei has also faced
legal disputes, such as
a patent infringement
case with Ericsson.
The strategy defines
ten key sectors,
including robotics,
next-generation IT,
areas in which China
wants to achieve major
breakthroughs and
develop globally
competitive
companies.

14. THANK YOU
REFERENCES:
https://www.itcandor.com/network-2021/
1.
https:/iot-analytics.com/how-enterprise-iot-market-is-evolving/
2.
https:/www.huawei.com/en/huaweitech/publication/202203/transformation-b2b-solution-strategy
3.
https:/www.huawei.com/en/huaweitech/publication/winwin/plus-intelligence/telco-digital-transformation
4.
https:/e.huawei.com/en/topic/digital-economyhttps:/www.huawei.com/en/annual-report
5.
https:/www.huawei.com/en/huaweitech/inspiration-lab
6.

15. APPENDIX 1: FULL LANDSCAPE OF DIGITAL
TRANSFORMATION

16. APPENDIX 2: NEW TECHNOLOGIES LIKE
5G, CLOUD, BIG DATA, ARTIFICIAL
INTELLIGENCE, AND IOT ARE
CREATING A NEW WAVE OF
INDUSTRIAL INTERNET INNOVATION
AND DEVELOPMENT.

17. Appendix 3: Flywheel - From the Internet of Everything to the Intelligent Internet of
Everything. IoT example.

18. Appendix 4: Industries Digitalization 1st - 3rd Wave and Penetration Rate

19. Appendix 5: Emerging technologies such as 5G, AI, IoT, etc. would generate more than 10 trillion $ in
value.

20. Appendix 6: AI as GPT, have a great impact on economic growth.
The AI market will be worth US$7.44 trillion by 2025, and its annual growth rate over the next five years will be more than 30%.
AI is becoming deeply integrated with industry know-how at an accelerated rate. It not only provides support
systems, but has become part of main production processes. Many countries are building national AI centers and
stimulating AI industrialization to become a hub of intelligent upgrade.