Huawei uses 10 percent revenue in R&D and 30 percent in innovation

Huawei Rotating Chairman Guo Ping has delivered a keynote speech regarding Digital Transformation at the 13th Peter Drucker Forum in the management guru’s hometown of Vienna, Austria, on November 17.

The speech entitled  “Continuously Building Organizational Competitiveness Through Digital Transformation“. Ping predicted that all companies would “go digital” in the future. But, some currently at the early stages lacked clear strategic goals.

During the speech, he pointed out issues arriving in the digital transformation of the companies and their strategic goals as well Huawei Digital Transformation master planning.

Ping said the first thing to consider is: 

“By going digital, how can they improve their organizational competitiveness and achieve their strategic goals?”

While talking about “How to create a culture of innovation,” Guo Ping said that the perfect digital process allows most employees to have rules to follow at work. However, Huawei is also deliberately creating a new culture, first of all: tolerance of failure.

Ping said high-quality planning is the starting point for successful digitalization. Reports reveal that Huawei invests more than 10% of its revenue into research and development each year, and 30% of the funds are used for research and innovation.

In addition, he mentioned the fundamental transformation of Huawei’s product development in R&D and sustainable supply chains began twenty years earlier with IT Strategy & Planning.

Secondly:

Huawei researched for talents and recruit the best talents to join our research institutes all over the world. Also, the company has even set up research institutes for specialized scientists in places, where he is willing to work.

The company gives these scientists Create a very generous working environment with geniuses so that they only need to give full play to their ingenuity.” These transformation programs made us a world-class company”.

Guo Ping highlighted the importance of transformation management and that at Huawei “the one thing that never changes is change”.

(Via – ithome)