How does Zheng Fei, a Huawei person, view the management in the Internet age?

There is a popular view that in the internet age, the ideas and methods of industrial scientific management in the past are outdated, and what is needed now is innovation, imagination, subversion and transcendence. Is that really the case? Is scientific management out of date? Is rational analysis and refined management based on data and facts really no longer needed?

We believe that the Internet has not changed the nature of things. Now the car must be a car and the tofu must be tofu. Of course, it does not mean that it will not change in the future.

But the internet has changed the way of doing things, reduced the transmission level and accelerated the speed. The significance of the Internet to the real economy lies in enhancing the core competitiveness of the real economy. Today, we insist on continuing the digital project of "Blue Blood and Ten Outstanding Persons", laying a solid foundation for changing internal management with the spirit of the Internet, and then realizing interconnection with customers and suppliers.

Scientific management is still needed in the Internet age.

To answer the question of what kind of management is needed in the Internet age, we must first find out what the top ten blue-blooded enterprises have contributed to modern enterprise management and what we should learn.

Huawei people talk about how to manage companies in the Internet age.

The main contributions of Ten Heroes of Blue Blood to modern enterprise management can be summarized as follows: rational analysis and scientific management based on data and facts, standardized management control system based on plans and processes, and simple product development strategy oriented by customers.

Grasping the law of production scientifically to adapt to the development of the future era requires strict data, facts and rational analysis. Without this foundation, there would be no science, let alone becoming the leader of the technological revolution. Scientific management and innovation are not antagonistic, they follow the same law of thinking.

Ten Outstanding Blue Blood has established financial control, budget, production plan, organization chart, cost and pricing research, economic analysis and competitiveness survey for Ford Company, which constitute the basic elements of modern enterprise management system. Of course, these are the fruits of the industrial revolution. Although we are now in an era of information revolution, we don't know how to predict the future, but the surging wave of new technological revolution is still inseparable from the foundation of the industrial age.

Continue to optimize management and prevent excessive management.

Since 1998, Huawei has invested billions of dollars and invited many world-renowned consulting companies such as IBM to launch IT S&; Manage change projects such as P, IPD, ISC, IFS and CRM. The guiding principle of reform is "first rigidification, then solidification, then optimization". Stiffness is to let the process run first, solidification is to understand and learn the process in the process of running, and optimization is to optimize on the basis of understanding. We should prevent "optimization" without a deep understanding of the process. After more than ten years of continuous efforts, our research has achieved remarkable results, basically establishing a centralized and unified management platform and a relatively complete process system to support the company to enter the leading ranks in the ICT field.

Huawei people talk about how to manage companies in the Internet age.

The difficulty and complexity of management reform and the establishment of modern enterprise management system far exceed our initial estimate, and with the expansion of the company's global business and the proposal of new goals, company management is constantly facing new challenges. At present, there are still some problems in Huawei's management.

First, the integration of cross-disciplinary and cross-departmental end-to-end main processes and joint integration is still the biggest shortcoming at present. Various processes seem to have achieved end-to-end convergence, but when it comes to departments and posts that really use processes, they are "playing Kowloon", unable to cooperate and inefficient. We must carry out the management reform at the company level to the end.

Second, there is still a big gap between the company's operation management and industry best practices, which has become a shortcoming that restricts the company's market competitiveness. In the process of bidding with Ericsson, the company found the same management, and we hired more people than Ericsson.

After benchmarking, Huawei put forward the goal of "five ones", and the supply chain and GTS simultaneously launched the management reform project of "matching accounts with facts". The realization of the goals of "five ones" and "matching accounts with facts" involves the simplification of product configuration, the opening of product configuration, the simplification of business scenario classification, the optimization of global supply network layout, the change of planning and adjustment mode from sales to national warehouse to site, and the integration of ERP and ISD reform in delivery.

The third is how to realize the transformation to project center management. The company's operation is gradually changing from the functional department-oriented operation mode to the project-centered operation mode, and customers, R&D, services and transformation projects will become the main forms of future business operation. This can avoid the problem of functional organization of large companies, get rid of redundancy, improve competitiveness and let cadres grow rapidly.

Huawei people talk about how to manage companies in the Internet age.

Fourthly, simplified management has been put on the agenda. We should be soberly aware that, although the "blue blood and ten outstanding men" laid a strong foundation for American enterprises and countries after the war with their strong rationalism spirit, we should not go to extremes in anything. In the 1970s, the modern enterprise management advocated by Blue Blood Ten Masters began to expose its drawbacks. Excessive worship of numbers, excessive control of costs and excessive pursuit of the scale of enterprise groups have led to excessive management and restraint of creativity, which has caused a number of large American enterprises such as Ford to encounter difficulties. In Huawei, the complexity of management increases nonlinearly with the expansion of the company's scale, which has begun to become a restrictive factor of the company's competitiveness.

Huawei's "customer-centric" core values are our unshakable banner forever. The dilemma is that personalization and diversification of customer needs are objective trends, and we must reduce the complexity of management while adhering to the business model of satisfying customers' personalized needs.

Huawei's management reform will enter a critical period. We should always bear in mind that the purpose of management is to improve the frontline combat capability and make more food with customers as the center. Huawei needs to optimize management but not over-management. Any management that cannot increase production is not good management.

Using Internet to Improve Company Management

Nowadays, the Internet and the Internet of Things are infiltrating into all aspects of social production and life. Internet has promoted the production, exchange, acquisition and sharing of information, but it has not changed the nature of things. Even in the internet age, cars are still cars, tofu is still tofu. Similarly, it is impossible for the internet to make a leap in the management of a company. Scientific management is still the foundation, and processes and rules can be simplified, but they cannot be without.

What is the real role of the Internet in the real economy? Is it subversion or promotion? Both steam engine and electric power have played a revolutionary role in industry and social life, but these technological revolutions have not subverted but greatly promoted the progress of society and production. The Internet is no exception. Its essential function is to transform the real economy with information technology and enhance its ability to respond to customers' needs with high quality and low cost. In short, the significance of the Internet to the real economy is that it can be used to enhance the core competitiveness of the real economy.

Huawei people talk about how to manage companies in the Internet age.

Internet can greatly improve the company's internal management. First of all, it can make the standardized and digital information transmission within the industrial chain fast and transparent throughout the process; Secondly, strengthen internal information communication and sharing through information interconnection, tear down departmental walls, simplify internal operation, accounting and control, and reduce transaction costs; Furthermore, using big data analysis methods, fully tap and analyze the big data required by corporate customers, strengthen customer insight, and create value together with customers; Analyze the big data of internal operation contracts, orders, projects, configuration, inventory and logistics, and support timely, accurate, high-quality and low-cost delivery; Through the big data analysis of human resources, the rational allocation of human resources is realized, and the inclination of high-quality resources to high-quality customers is obtained; In fact, Huawei has already moved standardized product sales and administrative procurement to the Internet to realize the operation of various new business models such as B2B, B2C and O2O.

After more than ten years of efforts, Huawei has established a unified management platform, and most of the data on the platform is true and reliable, which has laid a solid foundation for Huawei to continuously improve its management level by using the Internet. In the future, Huawei's products will occupy the commanding heights of the world's big data traffic. In addition to innovation, it also depends on a strict, effective and simple modern management system. Only on this basis can we achieve a big vision and a big strategy.

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The reason why Huawei can achieve today's achievements in the international market is that Huawei has really studied scientific management from western companies seriously and respectfully for more than ten years, and has really embarked on the road that western companies have taken. This is a road to success, but also the only way. Why are we still learning from the top ten masters of blue blood today? Because we still have to go this way.