[Observation] Huawei Chen Banghua: Learn from the “Dujiangyan Model” and build a strong distribution system

At present, in terms of water conservancy and ecological construction, the most distinctive feature is undoubtedly the Dujiangyan Project. It is a water conservancy and ecological project characterized by dam-free water diversion. From dam-free water diversion to plain irrigation, all have mouths and no gates, making full use of the bends and sluices of the river. The angle of the cliff naturally controls the flow direction and water volume. At the same time, without changing the original ecological environment, the embankment, water diversion, flood discharge, sand discharge, and flow control are interdependent and form a system, thus ensuring flood control, irrigation, Give full play to the comprehensive benefits of water transportation and social water use.

At the recently held Huawei Connected Conference 2023 "Enjoy Digital Experience, Create Billions of Business Opportunities" themed summit, Chen Banghua, Vice President of Huawei Enterprise BG and President of Commercial and Distribution Business, proposed that a strong and healthy distribution system is closely related to Dujiangyan Water Conservancy The engineering is very similar. It has been more than 2,000 years since Dujiangyan was built, and it still plays a huge role in flood control and irrigation. This is mainly due to the ingenious cooperation between various facilities, the extremely strong dam, and the unimpeded branches.

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Chen Banghua, Vice President of Huawei Enterprise BG and President of Commercial and Distribution Business, delivered a speech

Based on this, facing the future, Huawei will use the "Dujiangyan Model" as a reference to build a strong distribution system. By joining forces with like-minded partners, we will achieve healthy and scientific order management and provide competitive and marketable products to jointly promote the long-term and stable growth of Huawei's distribution business. , allowing more small and medium-sized enterprise users to enjoy digital experience. Behind this, Huawei continues to accelerate the pace of reform in its distribution business and build a new business system. This "long-term perspective" perspective and overall view will help promote the high-quality development of the entire Huawei ecosystem partner system. Undoubtedly, it also has far-reaching and significant value.

Build a strong distribution system based on the Dujiangyan model

Traditional distribution business was a mainstream business model in China's ICT market in the past. After more than 30 years of development, solving the phenomena of "squeezing goods", "mixing goods" and "inflated prices" that have arisen is not something that can be done "overnight", and Huawei wants to To expand the distribution business, the inherent "stubborn diseases" in the traditional distribution market and the challenges encountered by distribution partners cannot be "avoided" either. Therefore, in Chen Banghua's view, many excellent practices in the Dujiangyan Water Conservancy Project coincide with Huawei's idea of ​​building a healthy distribution system." Specifically:

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First, the Dujiangyan water system has main trunks and tributaries, which converge to form a whole. This is the same as Huawei's distribution business system. It is necessary to find more "like-minded" distribution partners to build a complete partner system including gold medals and elites. Only then can we work together to promote business development. In this regard, Huawei has carried out survival of the fittest partners and developed a group of partners who are truly capable and willing to do distribution with Huawei. Data shows that this year Huawei has developed 77 new distribution gold medal companies and more than 3,900 distribution elites.

Second, the most important part of the Dujiangyan dam was carved into the mountain, and its width has remained unchanged for thousands of years. The order management in distribution must also be as solid as this to ensure that the distribution business does not become overrun. Chen Banghua said that for Huawei's distribution business, it is also necessary to build a strong dam, that is, to strengthen order management. Its core includes two aspects: the first is cross-selling management, and the second is low-price management. To this end, Huawei has also introduced policies to strictly prohibit sales through project subsidy distribution, and these measures are used to ensure the orderly conduct of business.

Third, one of the core designs of Dujiangyan is to use the water-dividing fish mouth facility to determine how much water will enter the inner river for irrigation in different seasons. Distribution water level management is as critical as this water-dividing fish mouth . Similarly, Huawei's distribution business will also set a "water level" at the source to solve the problem of suppressing goods at the source. By managing the flow rate of the "entrance" well, we will eliminate problems such as over-pressuring distributors, and change from "over-pressing goods" to "excess stocking". "Scientific bargaining".

Fourth, Dujiangyan Water Conservancy needs to ensure the smooth flow of downstream rivers, and the distribution business must also help partners do a good job in SO and dredge the "downstream rivers" of the business. To this end, Huawei has made clear requirements. Huawei's distribution partner sales managers must assist partners in SO work, do their best to help partners sell goods, and let downstream engineering companies recognize Huawei's products. Huawei brand. Since the beginning of this year, Huawei has held more than 2,000 salons in China, and in October, it will complete the renovation of more than 500 Huawei Kunling brand stores. In addition, Huawei has also built IT systems for distribution partners - Huawei Kunling official website and Kunling APP to help partners achieve "one-stop" efficient operations.

Fifth, just as Feishayan in Dujiangyan can effectively clean sand and gravel in river water to avoid siltation, the distribution business also requires competitive and marketable products to achieve rapid circulation. Chen Banghua said that this year Huawei will launch 81 new Kunling products based on the Kunling brand to help distributors "make money."

Objectively speaking, people often evaluate the Dujiangyan Irrigation Project as "its merits are in the present and its benefits will be felt in the future." However, this time Huawei proposes to learn from the "Dujiangyan Model" and build a strong distribution system for Huawei. In essence, it hopes to take advantage of the situation and draw on its strengths. With a more "long-term vision" and a more scientific and refined management method, we will create a healthy and orderly distribution partner system. This will not only allow partners to have their own focus in the ecosystem, clear division of labor, and make the distribution business more efficient. It is easy to do this, and it can also maximize the release of new value for distribution partners, engineers, and installers, and activate the productivity and combat effectiveness of this group, ultimately accelerating the transformation of Huawei's distribution business.

Reconstructing two major capabilities to better empower small and medium-sized enterprises

According to Chen Banghua, in the transformation of Huawei's distribution business, it has carried out comprehensive "reconstruction" mainly from two dimensions, namely, the capabilities of the sales and service system and the R&D system, in order to better adapt to changes in the needs of the entire market.

On the one hand, regarding the sales and service system, Chen Banghua said that Huawei will adopt a series of refined and scientific management for the distribution market in the future. He hopes to work with all partners to build a strong distribution system and wide-coverage channels with a long-term perspective. Create a healthy and good order, maintain reasonable water level management, combine marketable products to jointly expand SO, jointly promote the long-term and stable growth of the distribution business, and allow the majority of small and medium-sized enterprise users to enjoy a smooth digital experience.

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On the other hand, in terms of the R&D system, Huawei has focused its R&D efforts on products suitable for the distribution track. It also actively develops product models that are isolated from the industry to maximize their use in various distribution business scenarios. In fact, in order to create cost-effective products suitable for distribution business, Huawei has previously established seven internal R&D teams, including product line areas such as data communications, optical, industry perception, and computing.

It is worth mentioning that during the Huawei Connect Conference 2023, Huawei also launched a number of new distribution products, including the main models of datacom distribution, S5735S-L series box switches and S7700S chassis switches; new upgrades S220 and S310 series of layer 2 and 3 switches with full 10G uplink and permanent POE support; 9 cost-effective USG6300F series firewalls that can comprehensively enhance network resilience; one room, one fiber, one fiber, multiple services, faster delivery and better experience Small all-optical solutions; IdeaHub B3 and other products equipped with the latest Hongmeng system, supporting one-click screencasting between mobile phones and IdeaHub without network, realizing seamless collaborative working with multiple terminals.

It is not difficult to see that in terms of distribution business, Huawei has not only built a new combat system through the "reconstruction" of its R&D system and sales and service system capabilities to better meet the changing needs of the entire market, but more importantly, it has It has also created rich and diversified marketable products for the distribution market, which not only allows partners to better "make money", but also further accelerates the pace of digital and intelligent transformation of the majority of small and medium-sized enterprise customers.

Stand behind our partners and continue to promote changes in distribution business

Objectively speaking, Huawei has continued to promote changes in the distribution business ecosystem over the past year or so. It should be said that it is not only a trend brought about by the digital transformation of the industry, but also a confirmation of Huawei's continuous iteration and evolution of "advancing with the times" in terms of ecological cooperation. , so that Huawei can gather more high-quality partner resources and work together to penetrate the power of digitalization into the small and medium-sized enterprise market more quickly. From this, we can also see the new value behind these changes:

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First, Huawei proposed to use the "Dujiangyan Model" as a reference to build a strong distribution system. This not only shows that Huawei is very determined to reform the entire distribution business, but also dares to face the "stubborn diseases" and problems in the traditional distribution business. . More importantly, Huawei also has very strong execution and implementation capabilities, which can both identify and solve problems. For example, this time it proposed to strengthen its competitiveness from five aspects, that is, to build a complete and widely covered channel system. , strengthen the order management of the distribution business, do a good job in upstream water level management, help partners do a good job in SO, and create cost-effective Huawei Kunling products suitable for distribution and sales, etc., will undoubtedly further promote the steady development of the distribution business. Fast Lane".

Second, Huawei is vigorously developing its distribution business. This is not just a talk, but a comprehensive "reconstruction" of the capabilities of the sales and service system and R&D system. The effects of this are also "obvious". , that is, to make this organization more in line with the changing needs of the market, and ultimately be able to find a technical architecture that matches the needs of customer scenarios, and create suitable products and solutions. Judging from the current number of "marketable" products that Huawei has created for the distribution market, after the "reconstruction" of Huawei's sales and service system and R&D system capabilities, it is showing a positive feedback mechanism. I believe that in the future, it will more satisfy the digital transformation of small and medium-sized enterprises. Solutions and products will also "emerge".

Third, to promote the "deepening" of the transformation of small and medium-sized enterprises, we must not only "look up to the stars", but also "keep our feet on the ground", allowing technology to solve the detailed needs of each scenario, integrate into the digitalization of each segmented industry, and moisturize everything. Silent, this requires more pragmatism and down-to-earthness, and the same is true for the strategy of cooperation with partners. During this process, Huawei has always emphasized that it should stand behind its partners and help them expand their customers. It also emphasizes that partners can "make money". This also proves that Huawei is "sincerely" helping partners. Empowering partners.

To summarize the full text, Huawei uses the "Dujiangyan Model" as a reference to build a healthy and long-term distribution system. It will not only create an ecological cooperation system for joint innovation and collaborative growth, and achieve dynamic balance and survival of the fittest, but it also once again reflects Huawei's commitment to every business. In each business segment, we can focus on long-term layout, while firmly moving forward in the direction of development. We believe that Huawei will continue to promote changes in the distribution business ecosystem and will be able to better help small and medium-sized enterprises achieve digital transformation and business innovation success.

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Shenyao's Technology Observation was founded by Shensky, a senior technology media person. He has 20 years of experience in enterprise-level technology content communication and has long been focused on the observation and thinking of industrial Internet, enterprise digitalization, ICT infrastructure, automotive technology and other contents.

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