As always each year, Huawei hosted its analyst event in April, with hordes of analysts descending on Shenzhen. Here are a few observations from the event:
In 2015, Huawei’s revenues grew by 37% to €61 billion and its EBIT grew by 34% to €7 billion, keeping the operating margin stable at just under 12%. Huawei’s strategy paid off across all of its divisions in 2015. Huawei’s Carrier Business pushed deeper into carrier transformation support and grew by 21% in 2015. Its Consumer Business operations entered the mainstream: The division grew by 73% in 2015, with Huawei gaining the No. 3 spot in the global smartphone league table. Huawei’s Enterprise Business is gaining traction and grew by 44% in 2015.
There are four distinctive aspects that go some way to explaining why Huawei keeps on outgrowing its peer group. First, Huawei’s heart beats in its R&D division, and most of Huawei’s top managers have come through the ranks of the R&D team. Second, Huawei benefits from strong internal collaboration and flexibility. Compared with other vendors, Huawei seems a lot less process-driven. Instead, Huawei seems to tolerate, even encourage, self-organization among employees — despite strict management hierarchies. Third, Huawei has a flexible and unconventional approach to customer experience. Huawei completes projects that overrun without overanalyzing whose fault it is. Fourth, Huawei is not listed and therefore not answerable to external shareholders. This gives it the freedom to experiment and take a long-term view.
As a product strategist, do you struggle with a sluggish innovation “process” in your firm? Do you think it takes too long to identify great ideas and turn those ideas into compelling new products and services for your customers? If you’re like most of your peers, the answer to both questions is probably a resounding "yes." That is exactly why Forrester’s Consumer Product Strategy practice developed The Open Innovation (OI) Playbook.
Forrester defines open innovation as:
The act of innovating, whereby new ideas or methods are requested from three broad participant groups: employees, partners, and customers.
This approach to innovation is in stark contrast to the typically closed and often secretive product innovation practices that most firms still use today. Our OI playbook provides you with an end-to-end framework, organized in twelve easy-to-find modules, and designed to give you the insight, tools, and best practices that you need to successfully adopt an open innovation approach within your organization.
To get started, I suggest reading the Executive Overview: “Revolutionize Products And Services Through Open Innovation”. This report will set the stage at a high level for you. Then, depending on where you are in your open innovation journey, you can “pick your spots” by navigating directly to the most applicable chapter for your needs. In general, the OI playbook is divided in to four phases as follows: