1 Introduction
This article is based on Huawei's own digital transformation practices, as well as the methodologies and implementation plans for accelerating digital transformation and intelligent upgrades that large and medium-sized enterprises can learn from during the transformation process with industry customers and partners. In the business fields of digital R&D, digital production, digital operation, digital transaction and digital operation, the value of experience improvement, efficiency improvement and model innovation has been realized and achieved.
2. The digital transformation of enterprises has entered a key decision-making area
Enterprises can obtain new growth paths through transformation. Business managers must have a deep understanding of their roles and responsibilities, make good use of the method of change, introduce advanced digital technologies, align with business pain points, bottlenecks and business goals, and help the business cross the inflection point and achieve new growth
Dr. Malik is an expert in change. Through the Malik curve, we can see that the black curve belongs to the growth of traditional enterprises. Generally speaking, the means of management tend to be smoothed. The green curve may be the new force of digital transformation. Bring a new change to future enterprises.
We all know that there is a novel called "The Three-Body Problem", and digital transformation may become a new way for the third dimension of enterprise growth. In fact, digital transformation is combined with the power of the enterprise's own business and new technologies. We see the green curve. The green curve will bring great changes to our enterprise. The curve looks very smooth, but it is still very difficult for each enterprise to implement it. The success rate of enterprise transformation is not very high. Therefore, how to seize the digitalization The opportunity for transformation is the desire of every entrepreneur, so how do we seize such an opportunity is a common problem we face.
####3. Digital Transformation Value
Digital transformation is about bringing greater value to our business, not blindly following suit. In the past, Huawei's internal digital transformation has been introducing the guidance, support and constraints of General Manager Ren. President Ren Zhengfei said that we cannot simply pursue new concepts. Digital transformation must bring value to the business. It is necessary to "make more grain" and "increase land fertility". "More grain" means to increase performance and "increase land fertility". It refers to increasing capacity, and often some changes need to be delayed to be reflected. Increasing capacity is like increasing the fertility of land, and future food will also increase, so increasing capacity will also bring value. According to Huawei's industry practice, digital transformation will bring value to our enterprise in three aspects
The first is the improvement of user experience. In the past, we generated applications in various fields through commercial software packages and enterprise-oriented adaptation facilities, which also brought great value to enterprises, but at the same time faced many problems. Most enterprises attached importance to functions It does not pay attention to experience, and the software package will also form a series of castrated structures, which restricts the flow of data. In this round of digital transformation, every enterprise must learn the experience of Internet companies for users, including internal groups, The experience of the pan-user group is a very important starting point.
Second, improve the efficiency of enterprises. The production, R&D, supply, and sales of enterprises help businesses improve efficiency through digital technology. The original tabular management can improve the efficiency of management through digital applications.
Third, with the deep integration of technology and business, the business model is undergoing a quiet change, and the new business model is also combining our different business characteristics. Whether it is the improvement of experience, the improvement of efficiency or the improvement of business model, it will bring us real value.
####4. The key to digital transformation is data
The key point of digital transformation is data. There is no doubt that the introduction of artificial intelligence can bring us great value, but the raw material of artificial intelligence comes from data.
Enterprise data comes from two dimensions. One is the data in the past business activities of the enterprise. These data are limited by the castrated structure, and our data does not function well. This is also where digital transformation needs to be revitalized. The other is industrialized field data. Many automated production lines seem to be very automated, but the data is fixed in the equipment and cannot be opened. How to move the data in the industry from closed to open, from isolated islands to circulation, IT and OT data It has become an enterprise asset, and data can really play a role effectively and generate value upstream, bringing great changes to the enterprise.
From the reality, data has not really played its value yet. It is an important task for us to truly turn data into assets.
####5. How Businesses Can Digitally Transform: A Digital Transformation Framework
1. Have a blueprint and goals
There must be an overall plan.
2. There must be business objects and service objects
In the past, we did not have clear and definite service objects. Only by clarifying the service objects can we make production more oriented.
3. Overall planning, implementation and operation
Digital transformation has a beginning and no end
4. Four architectures
Business Architecture, Application Architecture, Information Architecture, Technology Architecture
5. Five shifts
Change consciousness, change organization, change culture, change method, change mode
5.1 1 goal: vision-driven, enterprise-level strategic goals
Digital transformation is often combined with new technologies and business development to see future development. Vision is not static. By combining new digital technologies and business characteristics of enterprises, we formulate top-down long-term goals and implement top-down goals. Implement technical support
#####5.2 2 Objects: Focus on Service Objects and Business Objects
For Huawei, business objects include operations, delivery, marketing, services, finance, etc. The principle is to build elite operations under a large platform, form better services around data, better support each module, and better serve each object.
#####5.3 3 stages: planning, implementation, continuous optimization of operations, supporting the achievement of goals
We need to plan according to the top level, identify the pain points of the business according to the methodology, and implement the planning direction and continue to operate
#####5.4 4A Architecture: The overall planning of digital transformation relies on TOGAF 4A architecture
Digital transformation is to create value for the business, so from a business perspective, it is necessary to adapt the process and business according to the application, and support the data and technology platform to form a 4A structure.
5.5 5 Shifts: Shift from Consciousness, Organization, Culture, to Methods and Models
Without deep involvement of the business, digital transformation will be impossible, and the technical part, including partners, cannot replace the business personnel within the enterprise. Digital transformation is driven by business and technology.
######5.5.1 Turn Awareness: Business and Digital Technology "Two-Wheel Drive"
5.5.2 Organizational transformation: In the process of transformation, it is often necessary to form an integrated team on the business side, consisting of business and IT
In the past, digital transformation was often a business problem. Now, the deep integration of digitalization and business requires higher technology platforms. Business and technology are integrated to form a new agile and more efficient system.
######5.5.3 Change culture: create a platform culture of "I am for everyone, everyone is for me"
There is only platform culture. The deeper resistance that restricts the flow of data is the "departmental wall". How to weaken the "departmental wall" is not only a technical change, but also a ideological change. Only with this transformation can data flow, and data can become a flow factor.
######5.5.4 Transfer method: realize object digitization, process digitization, and rule digitization
Driven by data and in-depth integration of enterprises, digital twins will appear in the whole and part. Data twins improve business efficiency through data mining, simulation, and machine learning. To automate or semi-automate the business, to achieve a true digital twin, it is necessary to digitize business objects.
######5.5.5 Take contract object digitization as an example: "Contract 360"
The structure is difficult to make, and the implementation is even more difficult. However, after data precipitation, the seemingly useless work has become a data asset. For example, a certain customer has similar contracts in history, and new ones can be automatically recommended to improve efficiency. Through the digitization of objects, the accumulation of data becomes an asset of the enterprise
######5.5.6 Transfer mode: IT applications need to do 3 things
There were many problems with the system in the past, but it also created value for the enterprise, but it was technically flawed. How to solve the problem between the old and the new? We need to build a new system with a cloud-native underlying architecture to achieve smooth evolution of old and new data.
####6. Comprehensively promote the digital transformation strategy and realize the fully connected intelligent Huawei
This section mainly introduces Huawei's internal digital transformation IT architecture.
6.1 Huawei's digital transformation brings experience improvement, efficiency improvement and model innovation.
Digital transformation brings different values to R&D, manufacturing, logistics, trading, and operations
#####6.2 Digital R&D: R&D cloud reconstructs R&D operation mode, greatly improves R&D efficiency
Huawei has more than 1,500 R&D laboratories. In the past, different laboratories worked independently by purchasing service periods, resulting in the inability to share resources and insufficient use of resources. Now, we have integrated resources to the cloud, the resource reuse rate has been increased to 2.4 times, the computing power has been improved, and the efficiency of research and development has been improved.
#####6.3 Digital production: digital integration of R&D design and manufacturing to realize digital twin
R&D in the past required product design, testing, and rework. Now we can conduct data modeling, data mining, and machine learning simulation during R&D, and now conduct virtualization verification, and then conduct actual verification, which ultimately shortens the product launch cycle by 20%.
#####6.4 Digital Production: Real-time analysis of end-of-line manufacturing throughput with high-performance computing
In the past few years, the rapid development of mobile phones led to the influx of massive data. It took two days to calculate the pass-through rate and needed to be improved. However, the reconstruction took 5-6 months, which was too long. Finally, cloud computing and in-memory computing are used to synchronize the data in real time, and it can be used the next day.
In the process of our pursuit of enterprise digitization and informatization, of course, the more advanced the technology, the better, but it is not the purpose, it is enough to meet the needs of the enterprise, not simply the pursuit of good or bad
#####6.5 Digital operation: smart logistics, full visibility
Huawei currently has business contacts in more than 170 countries. The logistics supply system is very complex, and there are major problems in the final central warehouse and site.
Taking transportation as an example, the cost of sea transportation is low and it is the mainstream transportation method. There are many problems in shipping, and there are often problems that cannot be located. By digitizing business objects and business processes, 80% of deterministic business can be automated, and the intelligence rate of decision-making business can be increased by 50%. Logistics increased by 40%.
#####6.6 Digital Operations: Smart Acceptance of Site Delivery
Huawei builds more than 1 million base stations around the world every year, and acceptance has become a big problem. Intelligent site engineering acceptance can be carried out through artificial intelligence, and the accuracy rate can reach 99.9%. Artificial intelligence has begun to play a real role in many scenarios
6.5 Digital operation: automation of financial reimbursement, the efficiency of the whole process is increased by 100 times
Financial reimbursement needs to be mailed and other methods. Currently, OCR scanning and electronic bill import are used to improve capital turnover efficiency. And can 100% verify the authenticity of the invoice.
6.6 Digital Transaction: Partner Collaboration Platform for Ecosystem
In the transaction process, certified trading partners need to be reviewed by people. By structuring the rules, a one-time review can be performed, which improves the satisfaction of both parties and improves the experience.
6.7 Digital operation: intelligent operation center with fast real-time operation
There are a large number of excel reports in the front-line work, and the front-line needs to repeatedly prepare a large amount of data, and the workload is huge. By sharing data on the cloud and improving management efficiency, the overall business efficiency of the enterprise has been greatly improved.
8. Summary of Huawei's digital transformation experience
- Digital transformation is a top-level project that will change the process and organization of an enterprise. Leaders do not pay attention to it, and it cannot be completed by IT alone. Therefore, leaders must have both strategic determination and strategic patience.
- Digital transformation must be driven by both business and IT. Need to cooperate with each other, can not replace each other
- Digital transformation cannot blindly follow suit. It is necessary to align the business value of the enterprise and find the part that brings value to the business. It is necessary to make overall planning and align the value.
- Digital transformation requires unswerving use of cloud-native architecture, which is a necessary choice for brick-and-mortar enterprises.
This article is compiled from the 14th issue of the HUAWEI CLOUD Community [Content Co-creation] activity.
https://bbs.huaweicloud.com/blogs/336904
Task 11. Huawei's Digital Transformation Practice