Huawei's Innovation Framework: A Report on Product and Service Design

This report examines Huawei Technologies' approach to product and service design through the lens of various innovation models. It reviews literature on innovation frameworks, focusing on models like profit, network, structure, process, product performance, product system, service, channel, brand, and customer engagement. The report identifies a justified innovation model for Huawei, emphasizing product performance, channel, and brand innovation. It also performs a gap analysis, highlighting weaknesses in the innovation process, and proposes a plan to address these weaknesses by focusing on R&D, market research, staff training, and customer forums. The ultimate goal is to enhance Huawei's competitive edge by improving product quality, expanding market reach, and strengthening brand awareness.

Running Head: Design of Product and Services 1
Design of Product and Services

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Executive summary:
The paper shows the various kinds of innovation model that are available in the market scenario
and the organisation need to choose its preferable innovation model to survive the market.
Accordingly Huawei has strived for a combination of the innovation model in terms of process,
brand, and channel and product performance to have a competitive edge for itself. Each of the
innovation model has a distinct role to play in the business scope of Huawei and prominent
amongst them is the branding innovation which the company has showcased by installing
exclusive stores for its targeted customers. It is also seen that in the innovation process certain
gaps like poor performance of the product has been stated which needs to be addressed instantly.
The key areas like R&D to develop the product, market research to understand the customer
requirements and staff training, customer forum to deal with customer dissatisfaction are
required to be focussed in this scenario.

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Table of Contents
Introduction:....................................................................................................................................4
Company:.....................................................................................................................................4
Literature review:.........................................................................................................................4
Justified innovation model for business –...............................................................................7
Innovation framework for Huawei:.............................................................................................8
Gap analysis:............................................................................................................................9
Plan addressing the weaknesses:...............................................................................................10
Conclusion:....................................................................................................................................11
References......................................................................................................................................12

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Introduction:
The report would strive to draw on the aspect of core competency of the organisations by means
of innovation and development of its product and services. The report would explore a range of
literature concerning the framework of innovations to be applied on the business unit, Huawei
Technologies. It would also show the plausible innovation framework to be applied on the
telecommunication organisation and the gaps concerning it. Accordingly a development plan
would be devised to address the weaknesses focusing on the crucial elements of the framework.
Company:
The report would be based on the Shenzhen based Chinese multinational telecommunication and
electronics manufacturer, Huawei Technologies Company Limited. The organisation has an
effective research and development wing across 21 facilities globally expending worth $13.8
billion for the purpose (huawei, 2019). Huawei Technologies has to its accreditation providing
the services of fixed and mobile broadband networks, multimedia technology, smartphones,
dongles and tablets. The company offer its services across 170 counties globally and being
associated with 45 off the 50 biggest telecom companies on the global platform.
Literature review:
In this section a variety of literature would be showcased to establish the framework for
innovation in favour of the business units.
Innovation –
In the words of Dorner, Gassmann, & Gebauer (2011), innovation stands for the procedure to
translate a concept or idea into a feasible product or service that possess the worth to be accepted
by the targeted customers and they will pay for the same. Innovative idea must be concerned
with the notion of striking an economy to production for the purpose of satisfying specified
needs for the customers. Kanter (2006), points out that innovation puts into application the aspect
of information, imagination and inventiveness to deliver greater worth off the resources to
convert it into useful product and services for the mankind.
Effective framework for innovations –

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According to Varadarajan (2009), innovation within the business scope strives to develop the
product and services by introducing new products, updating the same with new features for a
greater use to its targeted customers. Innovation is all about breakthroughs and the element could
be discussed in terms of 10 distinct sorts of innovation models.
Profit model –
Volberda, Van Den Bosch, & Heij (2013), points out that the business units has the expertise to
convert its worth into profitability so the aspect of innovation is mainly concerned to earn greater
revenue. The profit model for innovation could be explained in terms of Gillette as they
introduced the cheap refill blades replacing its expensive razors. The innovative aspect strived
for the fact that the customers would use more number of blades as the cheap refills are
disposable in nature (Coccia & Cadario, 2014). In this way the profit model of innovation would
be quite helpful for the business to garner more profitability by influencing the targeted
customers to use an innovative product. It has direct implications in more number of sales of the
product and its ultimate revenue generation process.
Network model –
von Stamm (2009), states that the value off the network model could be created by working with
other parties. In the connected era of 21st century, it is quite significant for the organisation to
work with other parties for the purpose of gaining resources, technology and brand credibility.
Hammer (2004), observed that open innovation is itself a specified method of network
innovation that has the plausibility to leverage the expertise of those external to the business
units.
Structure model –
Radjou (2016), sates that the structure model within the organisational scope of business thrives
to exploit the talent and resources available for the business. This sort of innovative model would
be quite suitable for businesses having a flat organisational structure having a small team and are
driven by commitment to their task rather than instruction of the management body (Wilson &
Doz, 2012). The structure model is quite suitable for organisations having a flat structure owing
to less complexities in its business process and the shareholders are quite associated with its
daily operations.

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Process model –
The process model of innovation is concerned with the manufacturing of products and presenting
the services as its core operations (Volberda, Van Den Bosch, & Heij, 2013). It takes into
consideration a revolutionary methodology or patented approach in line with the lean
manufacturing system adopted by Toyota. Paulrajan & Rajkumar (2011), has observed the
process innovation model in the retailing segment as well wherein the fashion brands has
redesigned its supply chain model through its shop floor level within a short stint of time, say
within a week.
Product performance model –
Varadarajan (2009), perceived that quality of the product along with its characteristics forms the
basis of the capability of the product and services offered for the purpose. It apparently strives to
be the subject matter of the entire innovation process which is quite research and development
oriented. Jacobs, Chase, & Lummus (2014), states that a spate of continuous innovation process
is quite necessary to understand the implications of a suitable product for the purpose of
business.
Product system model –
According to Chen, Chiang, & Storey (2012), the product system model is all about creating
additional worth by adding product and services of other organisations. It is being done by
striving for a blend of multiple products to derive a more significant worth out of the process.
For instance Mozilla, the website browser has been established on an open-source software
enabling external developers to facilitate add-ons for enhancing the product and services
(Immelt, Govindarajan, & Trimble, 2009).
Service model –
The service model for innovation is concerned with the aspect of making the products more
accessible to extract a superior level of service out of it (Merigó & Yang, 2017). In this scenario
an innovative service model would be required in case it is being able to deliver a better service
to the customers like addressing their issues to continue the business relationship suitably.
Channel model –

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In the words of Terwiesch & Cachon (2012), channel model for innovation strives to connect
with the targeted customers. The model is quite distinct from the network model as it does not
constraint itself only to establish connections but explores a range of means to remain connected
in the process (Sharp, 2019). For instance the flagship stores of the retailers or
telecommunication companies happens to offer a unique shopping experience to the targeted
customers displaying exclusive products and design which are quite difficult to find elsewhere.
Brand model –
Chen, Chiang, & Storey (2012), perceives that the brand model could itself be a strong
innovative aspect representing its worth for the purpose. It is like a simplistic but an impactful
concept oscillating in the minds of the customers as the way of presenting the product and
services matter a lot attracting the due attention of the customers (Hammer, 2004). The instance
of Xerox, Intel and McDonald’s could be cited as it represents a stronger aspect of the branding
phenomenon nurturing the minds of the customers with the sorts of products and services they
deliver making the brand synonymous with the same kind of services provided by other
organisations as well.
Customer engagement model –
Dorner, Gassmann, & Gebauer (2011), finds out that the customer engagement model stands to
have an understanding of the level of customer needs. The aspect of customer desire could not be
understood at certain times but in most of the times it remains unattended due to varying levels
of customer expectation and desire. The innovation element off the customer engagement model
would imply having a deep insight of the customer needs, desire and expectation to present them
with product and services as per their cravings (von Stamm, 2009).
Justified innovation model for business –
The business strive for innovation in a multiple way to come up with suitable outcome and the
same would be plausible taking consideration of several sorts of innovations (Jacobs, Chase, &
Lummus, 2014). For instance, the business could take relevance of the product performance,
channel, brand, and network and product system innovation model to serve its purpose. It is
noted product performance model need to be at the core aspect of the business which has the
power either to strengthen the brand owing to its superior performance in the competitive market

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or break it for poor performance. According to Chen, Chiang, & Storey (2012), the business
could strengthen its product performance by hiring a celebrity endorser say a movie or sports
personality for promoting the product or service by ensuring its market dominance for the
stipulated period. The aspect of channel innovation is also significant in the current context to
reach out to a larger segment of customers.
In the digital era of 21st century the online platform could suitably be categorised as an effective
means to distribute the product and services wherein the customers has the scope to place online
orders to have their desired product (Kanter, 2006). Alongside the online phenomenon the
physical aspect of goods need to be exploited through its flagship stores, it might be an
expensive exercise but has the ability to generate a suitable return to the business. According to
Brandenburg, Govindan, Sarkis, & Seuring (2014), the flagship stores while promoting the
products and services strive for an effective innovation and at the same time evolves for a brand
innovation model as well. It is because the flagship store raises brand awareness of the product
and services in this case to make it accessible to more number of people as they visit the store
(Wu, Yeh, & Hsiao, 2011).
Again the social media platform like Facebook, Twitter, YouTube, Instagram, Google+ and
others serve as an effective tool to promote the brand in a convenient manner. It would be
suitable to get proper feedback on the product and services offered through the interactive
session between the administrators and the users (Dorner, Gassmann, & Gebauer, 2011). The
business has the plausibility to enrich the innovation combination model by taking account of the
product system model to strengthen the product features for making it more acceptable to the
targeted mass. According to Immelt, Govindarajan, & Trimble (2009), a network innovation
model in this scope would be further enriching by bringing in new technology and resources to
make the product or services more acceptable to the targeted mass. Therefore a combination of
several innovation models would be quite suitable in presenting a complete new product along
with its winning features and characteristics to make it acceptable to more number of people.
Innovation framework for Huawei:
Huawei has been operating at a competitive market along with a host of competitors, so to gain
advantage in the market it is required to have a combination of the innovation models.
Brandenburg, Govindan, Sarkis, & Seuring (2014), points out that it would be suitable for

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Huawei to take into consideration multiple innovation strategies simultaneously to create a
positive impression in the market.
First and foremost Huawei need to seek a process model for innovating a unique supply chain
design for the manufacturer by means of green-sourcing. It would stand to be a sustainable
sourcing methodology to reduce the environmental impact owing to the manufacturing of the
smartphone and other communication devices as much as possible (Terwiesch & Cachon, 2012).
The green stance on part of Huawei would lead to an effective impression on its corporate
sustainability process. This aspect could be rightly utilised to promote the brand ‘Huawei’ as a
sustainable electronic devise strengthening its branding (Radjou, 2016). The phenomenon would
pave way for a brand innovation model being environmentally responsible and tend the users to
be the same as well. In this context it would be quite effective for Huawei to come up with its
exclusive store across its operating markets in terms of channel innovations.
The exclusive store would offer latest mobile with updated features, add-on services along with a
range of accessories like headphones, mobile sticks at an exclusive price (Varadarajan, 2009). In
this scenario the product performance model for innovation would be quite effective in bringing
the hosts of customer to the exclusive stores. The innovation aspect would lead to an effective
performance of the handsets promoted by the company at its exclusive stores showcasing its
strong product features making it acceptable to the targeted mass (Reid & Sanders, 2015). The
aspect of innovation to enrich the performance of the Huawei products would be attained by
means of a strong research and development initiatives undertaken by the company.

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Gap analysis:
Figure 1: Gap analysis model
Source: (Tsai, Hsu, & Chou, 2011)
The multiple innovation model has been considered in this case taking considerations of the
elements of process, brand, and channel and product performance. It is estimated that the
aforesaid innovative aspects would strive to deliver a strong message to the targeted mass
(Nicholas & Steyn, 2017). But it seems that there are certain gaps in the innovation model that
needs to be properly taken care of to present a suitable platform for the products offered by
Huawei. In this regard the gap analysis need to be considered which shows a striving variation in
business performance against the expected performance off the product (Tsai, Hsu, & Chou,
2011). The gap analysis on the context of Huawei strive to find out the prevailing gap existing in
the business scenario.
The gap analysis on the perceived innovation model of Huawei shows that the product say the
smartphone devise designed by the manufacturer is not efficient enough to serve the purpose of
the customers. The operating system of the product is getting slower leading to a poor
performance and utter dissatisfaction of the customers (Chatterjee, Adhikary, Sen, & Kar, 2018).
The gap has been imminent of an ineffective research and development process undertaken by
the organisation. So Huawei has severe gaps in terms of product performance and process that
needs to be filled with immediate effects. Another prominent gap evident in this manner has been
the non-cooperation of the staff at the Huawei stores as the customers approached the store with

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the complaint of the handsets (Dörnyei, Krystallis, & Chrysochou, 2017). The staff did not paid
due attention to the customer complaints which further intensified the customer dissatisfaction.
Plan addressing the weaknesses:
Accordingly a development plan need to be initiated to address the gap identified in the process
by focusing on certain key areas on the business operations of the Huawei Technologies. In this
respect the following factors are to be given due consideration such as –
 Research and development – Huawei Technologies has an extensive research
infrastructure and spends billions of dollar to have an efficient technology. So it would be
quite suitable for the company to give due focus on the aspect of R&D innovation and
undergo suitable tests before introducing the product in the market (Paulrajan &
Rajkumar, 2011). It is because an effective R&D aspect would lead to an efficient
product enhancing its performance and bringing down the number of customer
complaints.
 Market research – Huawei before introducing a particular product, say a smartphone in
the market are required to conduct a thorough analysis of the market (Chen, Chiang, &
Storey, 2012). It would be quite suitable to understand the customer expectations and the
product development team of the organisation could co-ordinate with the R&D team for
the market requirement.
 Staff training – The staff at the exclusive store of the company are the representatives of
Huawei, so they need to be very efficient in handling the customer complaints.
Accordingly a training could be arranged by Huawei to provide after-sales service and
listen to the customer complaints patiently as sometimes an active listening and empathy
could resolve the matter instantly (Coccia & Cadario, 2014).
 Customer forum – Huawei has a digital platform wherein it has the scope to interact with
the customers with regards to the kind of products they expect and feedback on the
product and services offered to them. In this way the company by understanding the
customer psyche could avert the ranging issues of poor product performance of the
smartphone devices containing ire of the customers.

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Conclusion:
The report shows that the aspect of innovation is quite necessary for the success of the
organisation in the competitive market and so does hold truth for Huawei as it needs to survive
the intensely competitive global market. So Huawei to have a competitive edge has chosen to be
innovative but keeping stride of the current level of competition in the market, it has opted for a
combination of innovative factors in the market foray. Accordingly Huawei has taken
consideration of the innovative aspects of process, brand, and channel and product performance
to come up with something different for its customers. It has come up with exclusive stores for
the customers to showcase its new products in terms of laying down a strong branding
proposition. In the process it might happen that the product face issues like poor performance
which needs to be addressed by conducting a gap analysis to resolve the matter suitably.

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