Analysis of Innovation and Business Development at Huawei Technologies

This report provides an in-depth analysis of innovation and business development within Huawei Technologies Co. Ltd. It begins with an executive summary and introduction, followed by concise information about Huawei, a leading Chinese multinational telecommunications equipment and consumer ...Read More

Running head: INNOVATION AND BUSINESS DEVELOPMENT
Innovation and Business Development
(Huawei company)
Name of the student:
Name of the university:
Author Note

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Executive summary
The following study helps in understanding the process of innovation and business development.
Here, the background of the company of The Huawei Technologies Co. Ltd, China is analyzed. Then
different issues that are related to particular innovation is demonstrated in this discussion. At last,
particular significance of the issues for the company is investigated here.

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Table of Contents
1. Introduction:......................................................................................................................................3
2. Concise information on Huawei Technologies Co. Ltd:...................................................................3
3. Issues related to innovation:..............................................................................................................5
4. Importance of these issues at Huawei:...............................................................................................8
5. Conclusion:........................................................................................................................................8
6. References:......................................................................................................................................10

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1. Introduction:
The Huawei Technologies Co. Ltd is the Chinese multinational manufacturer of consumer
electronics. They are also involved as multinational telecommunication tool manufacturing. They are
headquartered at the pace called Shenzhen.
In order to stay innovative, Huawei requires to create new processes and products. This is
helpful for creating the competitive benefits of the organization.
In order to understand the methods of business and innovation development, firstly the
concise information about Huawei is demonstrated. Then the problems related to a specific
innovation, cyclic innovation model, is included in the report. Lastly, the significance of the
problems for Huawei is analyzed here.
2. Concise information on Huawei Technologies Co. Ltd:
The Huawei is one of the popular provider of ICT or Information and Communications
Technology smart devices and infrastructures. With the integrated solutions around various primary
domains, the cloud services, smart devices, IT and telecom networks, they are involved in various
activities. They are bringing digital innovations to various organization, home and person for a
totally interconnected intelligent marketplace (Yan, Wang & Xiong, 2017).
Their end-to-end portfolio of products, services and solutions has been secured and
competitive. With the help of open collaborations with the partners of ecosystems, they have been
creating a long-lasting value for the customers who have been working for empowering people,
enrich home life. This has also included the inspiring of innovations of the business of every size and
shape. Besides, in the company, the technology has been concentrating on the needs of clients. They

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have been highly investing in the primary researches and has been found to be concentrating on
various types of technological breakthroughs. This has driven the current marketplace forward.
Additionally, they have consisted of more than 180,000 employees and has been found to be
operating in about more than 150 regions and nations. Thus, it can be said that since 1987, they are
the private organization that has been entirely owned by its employees.
This from the previous three decades, they have been maintaining the unwavering focus.
They have rejected various shortcuts and simple scopes that have been never aligned to their central
business. They have a practical measure of every aspect that they have been doing (Zhao, Yu &
Song, 2018). They have been concentrating their efforts and investing patiently in driving various
breakthroughs of technology. Moreover, the strategic focus has been the reflection of their principal
values. They are growing by reflection, persevering, inspiring and remaining customer-centric.

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3. Issues related to innovation:
Figure 1: “Innovation framework”
(Source: Liu et al., 2016)
The various problems are highlighted below.
Managing uncertainties The first one is strategic uncertainty. This is the common reason
behind the failure of innovation. At Huawei, it has been
occurring in two ways. Here, either the business or corporate
business goals and strategies are vague or the innovation team
has been ignoring the clear strategy for pursuing the aims. Then,
there is communication uncertainty (Wan, Williamson & Yin,
2019). This takes place as the team is formed and tasked and no

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one bothers in communicating the aims and the results the
residual part of the business. Then there is success uncertainty
where the innovation indicates the failing. This is highly
complicated to accept for Huawei. Lastly, they have issues with
commitment uncertainties. It is the queasy face that is witnessed
by the innovation team members of Huawei (Trott, 2017). Thus,
they have been realizing the extent how the tasks and learning
are needed to perform the effective task on the project of
innovation.
Issues with exploitation There has been little innovation at the corporate levels that have
been focusing on disruption and transformation. Here, there are
various causes for that. Firstly, the disruptive and transformative
innovation has been unpredictable. It has been complicated to find
out the results of anything that is totally new. Next, disruptive or
transformative innovation has been working against various current
model of business. This has been lead to the cannibalization of the
current services and products. Having the overwhelming priority for
sustaining the model of business and make money with the resources
and capabilities, it has been complicated to make contemplation that
has been disrupting the model of business (Chang et al., 2017). Apart
from this, it has been expensive and very much time-consuming. This
is the causes there is much less energy and focus is expended on the
disruptive and transformative innovation. Further, a core theoretical
issue in organizational evolution is how Huawei can gain the latest

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abilities. It has resulted in various types of short-term bias under
organizational adaptation (Fu, Sun & Ghauri, 2018). Apart from this,
the slack search and problematic search has various outcomes for
exploitation has less risk and much routinization. It is affected by the
momentum of Huawei with direct competitions.
Challenges in the areas of
service innovation and
design
It is seen that there are various arrays of different cases in the area
service innovation along with determining the issues that are inherent
to service design and innovation. Since the intangible and process are
based on frequent interactions between and among employees and
customers is vital to include the customers and employees at different
points in the process of innovation. Apart from this design thinking
can get improperly used for assuring every element to be integrated
and considered (Lv et al., 2018). Then, there are five principles that
are the core of the services to design thinking. This is user-centered
where the services designed and experienced from the eyes of the
clients. Further, they are co-creative with every stakeholder involved
in the process of service design. Apart from this, there is sequencing
such the service gets seen as the sequence of various interrelated
activities. Then, there is evidencing such the intangible services are
seen as per the physical artifacts. Lastly, there is been a lack of being
holistic. Here, the total scenario is the service is needed to be
considered (Chen, Yin & Mei, 2018).

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4. Importance of these issues at Huawei:
Managing uncertainties As the uncertainties are determined, naturally, then that should be
minimized to the probable extent prior to putting the mitigation
measures and risk control. This has cost that is attached to that. Here,
for instance, better locks are needed for Huawei where the costs are
attached.
Issues with exploitation The exploitation has needed Huawei to end the concentration to
perform better regarding what they have been performing. This is the
source of efficiency and productivity. Apart from this, the exploration
has allowed Huawei to get rid of present reality. This is the source of
innovation for Huawei (Parmentola & Tutore, 2016). However,
exploration has been risky. They require to invest various resources
along with money and time. This is to examine and assure that the
outcomes of the research have been worthwhile. Further, there are no
guarantees. However, this has been risky also.
Issues with innovation
and design
At Huawei, it has been helpful in redefining value, the innovation that
has been human-centered. It is also useful to identify issues affecting
diverse groups of people and shifting behaviors and markets.
5. Conclusion:
The above study highlights how innovation has introduced various elements to the business.
This has been developing and to replace the business processes. This has been helpful to raise
productivity and efficiency. It has been helpful to enable the business of Huawei to the range of

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various quality services and products. Apart from this, the innovation of business has been
introducing the products, services, methodologies, workflows and ideas. It has dealt with the
developing of a value of a customer through various solutions meeting the latest necessities,
different unarticulated necessities and current requirements of the market are distinct manner. Thus
the study is helpful in raising the competitive benefits and deliver meaningful differentiation.

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6. References:
Chang, L. C., Ho, W. L., Tsai, S. B., Chen, Q., & Wu, C. C. (2017). Dynamic organizational
learning: a narrative inquiry into the story of Huawei in China. Asia Pacific Business Review,
23(4), 541-558.
Chen, J., Yin, X., & Mei, L. (2018). Holistic innovation: an emerging innovation paradigm.
International Journal of Innovation Studies, 2(1), 1-13.
Fu, X., Sun, Z., & Ghauri, P. N. (2018). Reverse knowledge acquisition in emerging market MNEs:
The experiences of Huawei and ZTE. Journal of Business Research, 93, 202-215.
Liu, H., Li, X., Zhang, C., & Li, Y. (2016). Huawei Case Study: Country-specific Factors Affecting
New Product Development. In International Operations Management (pp. 135-148).
Routledge.
Lv, W. D., Tian, D., Wei, Y., & Xi, R. X. (2018). Innovation Resilience: A New Approach for
Managing Uncertainties Concerned with Sustainable Innovation. Sustainability, 10(10),
3641.
Parmentola, A., & Tutore, I. (2016). New trends in the development of Chinese high-tech
companies: an open innovation perspective. Mercati e competitività.
Trott, P. (2017). Innovation management and new product development (6th ed.). Harlow, England:
Pearson
Wan, F., Williamson, P., & Yin, E. (2019). Enabling cost innovation by non-traditional
organizational processes: The case of Chinese firms. Technological Forecasting and Social
Change, 139, 352-361.

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Yan, J., Wang, L., & Xiong, J. (2017). Alcatel-Lucent falls, Huawei ascends: New product
development makes the difference. Journal of Business Strategy, 38(1), 22-30.
Zhao, S., Yu, D., & Song, G. (2018, October). Research on the Characteristics of Reverse Innovation
of Non-core Enterprises in Industrial Innovation Network. In 3rd International Symposium
on Asian B&R Conference on International Business Cooperation (ISBCD 2018). Atlantis
Press.