After five years of digital transformation, how is Huawei doing now?


Abstract:Traditional enterprises improve production efficiency by manufacturing advanced machines, but in the future, how to improve service and operation efficiency structurally and how to obtain better products with lower cost have become the problems of the times. In the final analysis, digital transformation is to solve two major problems of enterprises: cost and efficiency, and focus on “more grain, increase land fertility”. This paper focuses on the content of “Huawei” digital transformation, from the overall goal, data governance requirements and practice.

1、 Huawei’s overall goal of digital transformation

In 2016, Huawei’s strategic plan for change has made it clear that it should realize roads experience for users (enterprise customers, consumers, employees, partners and suppliers) and continuously improve efficiency, benefit and customer satisfaction.It is clear that it will take five years to complete the business digital transformation, and the digital transformation has become the only change of Huawei.

In 2017, Huawei put forward a new vision of the enterprise: “bring the digital world into every person, every family and every organization, and build an intelligent world of interconnection of everything.”. At the same time, Tao Jingwen, director and CIO of Huawei, put forward the digital transformation goal of “realizing fully connected intelligent Huawei and becoming the industry benchmark” (as shown in Figure 1-1).

After five years of digital transformation, how is Huawei doing now?

Figure 1-1 digital transformation objectives

Internally, all business fields are digitalized and serviced to break through cross domain information breakpoints and achieve the operation efficiency ahead of the industry. Gradually build an “end-to-end” digital management system with “customer-oriented business” and “market-based innovation” as the core. The management mode changes from qualitative to quantitative, and realizes the efficient operation of data-driven.

Externally, it aims at the roads experience of five types of users, making it easier, more efficient and safer to do business with customers, and improving customer satisfaction. Huawei first expressed its latest judgment on the industry from the perspective of user experience, and summarized it as roads,They are real-time, on-demand, all online, DIY and social.

2、 “Huawei” digital transformation blueprint and data governance requirements

In 2017, based on the vision, Huawei determined the blueprint and framework of digital transformation, carried out unified planning and hierarchical development, and finally realized the transformation of customer interaction mode and the improvement of internal operation efficiency and benefit. Huawei’s digital transformation blueprint includes five initiatives (as shown in Figure 1-2).

After five years of digital transformation, how is Huawei doing now?

Figure 1-2 Huawei digital transformation blueprint

  • Initiative 1:Realize the transformation of “customer interaction mode”, thicken and deepen customer interface with digital means, make business with customers simpler, more efficient and safer, improve customer experience satisfaction and help customers solve problems.
  • Initiative 2:Realize the transformation of “operation mode”, focus on the two main business flows, focus on the project, fight against the front-line elite team, take the lead in realizing the experience based on roads, and achieve the operation efficiency ahead of the industry.
  • Action 3:Realize the transformation of “platform capability” providing mode, realize the digitization of key business objects and continuous data aggregation, realize process digitization and capability service, and support the full connection between front-line combat personnel and customers.
  • Initiative 4:Realize the transformation of “operation mode”, realize digital operation and decision-making based on unified data base, simplify management, and increase the authorization of front-line personnel.
  • Initiative 5:Cloud and service-oriented IT infrastructure and it applications, unify the company’s IT platform, and build intelligent services at the same time.

Among them, measure 4 involves data governance and digital operation, which is the key to Huawei’s digital transformation. It undertakes the goals of breaking the data island, ensuring the accuracy of source data, promoting data sharing, and ensuring data privacy and security. Huawei’s digital transformation requires data governance as follows:

  1. Based on the unified data management rules, to ensure the quality of data source and data into the lake, to form a clean, complete and consistent data lake, which is the basis of Huawei’s digital transformation.
  2. Business and data driven, strengthen the construction of data connection, and be able to flexibly meet the demands of business self-service data consumption in the form of data service.
  3. Aiming at the massive internal and external data, it can ensure the data security and compliance.
  4. Continuously improve the digitization of business objects, processes and rules, improve the ability of automatic data collection, and reduce manual input.

3、 “Huawei” data governance practice

Huawei started data governance in 2007. After two stages of continuous reform, Huawei systematically established its data management system. The continuous investment in the first stage for nearly a decade has laid a solid foundation for Huawei’s digital transformation in 2017. At the same time, under the new requirements of digital transformation for data governance, the work of data governance has entered the second stage, which also ushered in new challenges and development.

1. Huawei data governance history

  • The first stage: 2007-2016

In this stage, Huawei has set up a data management professional organization, established a data management framework, issued data management policies, appointed data owners, and achieved the following goals by unifying information architecture and standards, providing the only reliable data source, and effective data quality measurement and improvement mechanism.

  1. Continuously improve data quality and reduce error correction cost: through data quality measurement and continuous improvement, ensure that the data truly reflects the business and reduce operational risk.
  2. Through the whole process of data, improve the efficiency of business operation: through business digitization and standardization, with the help of IT technology, realize the rapid transmission and sharing of business upstream and downstream information.
  • The second stage: from 2017 to now

In this stage, Huawei builds a data base to gather and connect the data of the whole enterprise domain. Through data service, data map, data security protection and privacy protection, it achieves the goals of data on-demand sharing, agile self-help, security and transparency, supports Huawei’s digital transformation, and achieves the following data values.

  1. Business visibility, which can make decisions quickly and accurately: through data aggregation, the business status is transparent and visible, and the decision support based on “facts” is provided.
  2. Artificial intelligence, realize business automation: through digitization and algorithmization of business rules, embed business flow, and gradually replace manual judgment.
  3. Data innovation becomes the competitive advantage of differentiation: Based on data user insight, new market opportunities can be found.

The development process of Huawei data governance is shown in Figure 1-3.

After five years of digital transformation, how is Huawei doing now?

Figure 1-3 two stages of Huawei data governance

2. Vision and goal of Huawei’s data work

Based on multi service, globalization, distributed management and other business strategic planning and digital transformation demands, Huawei has defined the vision of Huawei’s data work, namely “realizing business perception, interconnection, intelligence and roads experience to support Huawei’s digital transformation”.
The goal of Huawei’s data work is“Clean, transparent and smart data enable excellent operation and effective growth”.In order to achieve the vision and goal of data work, it is necessary to realize the characteristics of automatic data collection, object / rule / process digitization, data cleaning, security sharing, etc. (as shown in Figure 1-4).

After five years of digital transformation, how is Huawei doing now?

Figure 1-4 Huawei’s vision and goal of data governance

3. Construction ideas and framework of “Huawei” data work

As a non digital native enterprise, we believe that one of the key elements of digital transformation is to build a “digital twin” digital world on the basis of the real world, which spans isolated systems and carries business. Through the aggregation, connection and analysis of data in the digital world, it can describe, diagnose and predict, and ultimately guide business improvement.

In terms of implementation strategy, on the one hand, the digital world should make full use of the existing IT system stock data assets, on the other hand, it should build a channel from the real world to directly perceive, collect and gather data to the digital world, and continuously drive the digitization of business objects, processes and rules.The overall idea of Huawei’s data work construction is shown in Figure 1-5.

After five years of digital transformation, how is Huawei doing now?

Figure 1-5 overall idea of Huawei data work construction

After years of practice, Huawei has formed a data work framework.

  1. Data source: business digitization is the premise of data work. By digitizing business objects, rules and processes, we can continuously improve data quality and establish a clean and reliable data source.
  2. Data Lake: Based on the construction strategy of “overall promotion, use to promote construction”, in strict accordance with the six standards, through physical and virtual access to the lake, Huawei’s internal and external massive data are gathered to form a clean, complete and consistent data lake.
  3. Data topic connection: through five data connection methods, planning and demand driven, establish data topic connection, and support data consumption through services.
  4. Data consumption: Aiming at the data consumption scenario, it can meet the demand of self-service data consumption by providing a unified data analysis platform.
  5. Data governance: in order to ensure the orderly development of data work in various business areas, it is necessary to establish a unified data governance capability, such as data system, data classification, data perception, data quality, security and privacy.

The overall framework of data system construction (as shown in Figure 1-6) is based on unified rules and platform, with business digitalization as the premise and data into the lake as the basis. It supports business digitalization operation by connecting data topics and providing services.

After five years of digital transformation, how is Huawei doing now?

Figure 1-6 overall framework of Huawei data work construction

This article is from Huawei cloud community, how does the company accomplish its digital transformation in five years, Author: Data Management Department of Huawei.

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