According to a report by Chinese media outlet IT Soho on Monday, communications technology giant Huawei recently issued a document on its internal employee community platform, announcing the formal establishment of Customs and Port Corps, Smart Highway Corps, Data Center Energy Corps and Smart Photovoltaic Corps, also making relevant personnel appointments. The move to establish these four internal organizations comes after Huawei’s initial establishment of the “Coal Mine Corps” in February this year.
For the first time since Huawei was founded 35 years ago, the internal organization corps has appeared, which was not marked in the internal structure. At present, these organizations belong to the same level as Huawei’s three major business operators – Business Group (BG), enterprise BG and consumer BG – but their operation modes are different.
It is reported that these internal organizations are personally planned and supervised by Ren Zhengfei, Founder of Huawei. According to Ren’s view, these corps are to break the existing organizational boundaries, quickly assemble resources, intersperse operations and improve efficiency. They can do a deep job in a field and will be responsible for commercial success, producing greater outcomes for the company.
According to Huawei insiders, the company concentrates the elite personnel of each BG, breaks boundaries and gathers resources, forms vertical capabilities to break through key industries and creates new growth engines.
The report shows that the launch of the four corps is also closely related to the current industry development trend and Huawei’s business strategy.
With the accelerated deployment of global 5G network, traditional enterprises are increasingly in urgent need of digitalization, intelligence and cloud computing. Developing the digital economy has become one of China’s national strategies, and digital economy is becoming an important engine driving the high-quality development of China’s economy. At present, more than 170 countries have issued national digital strategies.
The China Internet Report 2021 released in September shows that the scale of China’s digital economy will reach 39.2 trillion yuan ($6.09 trillion) in 2020, accounting for 38.6% of the national GDP, maintaining a high growth rate of 9.7%, and becoming the key driving force for stable economic growth.
The new demands brought by the digital torrent are constantly being generated. Ren Zhengfei once said that the digital economy would flourish in the future and would surpass the scale of the pre-industrial revolution. For Huawei, the new information and communications technology (ICT) represented by 5G and AI can help traditional industries realize rapid and effective digital transformation. The Coal Mine Corps is a case in which Huawei has gradually reached the goal of “safer and high efficient production with fewer people” in the coal mine industry through ICT technology, and finally realized unmanned and intelligent capabilities.
The newly formed four corps share a similar vision. Huawei predicts that in the next decade, mankind will enter the digital energy era, and it will become a trend to comprehensively promote the transformation of low carbonization, electrification and intelligence. Rotating Chairman Xu Zhijun said that Huawei hopes to combine and control electronics with digital technology.
Industry analysts pointed out that under the background of sanctions imposed by the United States, Huawei’s attempt to change its organization and operations is to some extent aimed at helping it to survive better in the future and minimize the impact of the sanctions.
In Huawei’s performance in the first half of this year, only the business income of enterprises increased. Mainly due to the accelerating digital transformation of enterprises under emerging ICT technologies such as 5G, Huawei has created more than 100 scenario solutions covering more than 10 industries such as smart cities, finance, energy, transportation and manufacturing. According to the above analysts, the establishment of the corps is also to strengthen the digitalization ability of serving enterprises and generate revenue for Huawei.
According to report, the leaders of the newly established four corps have been selected through internal open competition: Yang Yougui is the CEO of Data Center Energy Corps, Chen Guoguang is the CEO of Intelligent Photovoltaic Corps, and the two corps report to the president of Huawei Digital Energy Company. Xun Su is the CEO of Customs and Port Corps, and Ma Yue is the CEO of Smart Highway Corps.