Orchestrating an Ecosystem of Business Partners
Digital transformation will present the greatest opportunities for many industries over the next five to ten years, and business ecosystems will be powerful tools used to seize those opportunities. During their transformation efforts, major players are building solution-centric ecosystems that maximize the advantages of collaboration for the purpose of gaining a significant edge in their respective markets.
In the face of converged production systems and ICT solutions, customers are heavily investing in new ICT platforms that depend on the complexities of the cloud, the Internet of Things (IoT), and Big Data. As a result, a robust business and technical ecosystem will be a customer’s most important factor in choosing a supplier.
Huawei focuses on providing customers with innovative, differentiated, and leading ICT hardware and software. In the face of complex requirements and changing markets, Huawei works with partners to help customers address challenges arising from digital transformation to achieve business success.
Huawei’s Enterprise Business Group (EBG) continuously invests in ecosystem development to maximize the skills of partners and expand their markets. The EBG program orchestrates a regenerative community that shares common interests. EBG does this by promoting ecosystem awareness and cooperation within each of its internal organizations, from R&D to marketing, sales, delivery, and service. This ensures that all employees recognize the significance of the family of partners who have chosen to join forces with Huawei.
To build a robust ecosystem with partners, Huawei has taken these five key measures:
While streamlining internal processes, Huawei’s EBG has also explored ecosystem development models. The goal of the ecosystem program is to achieve multi-win situations among customers, partners, and Huawei.
An innovative ecosystem is a collaborative mechanism for jointly developing customer-centric solutions. Such an ecosystem creates substantial value that cannot be achieved by a single enterprise, which is why any ecosystem jointly orchestrated by Huawei and its partners comprises the following:
For ecosystem business development, Huawei manages an ecosystem to maximize a partner’s advantages and profits. Ecosystems are like a unified business, with full lifecycle service activities, from strategic planning to Go-to-Market (GTM).
Each ecosystem has its own features, and Huawei’s role varies accordingly. Some ecosystems are dominated by Huawei as the ‘conference moderator.’ In other ecosystems, Huawei is a ‘participant’only.
When serving as conference moderator, Huawei manages partner interaction, ecosystem rules, and other behaviors. When operating as a participant, Huawei uses its open platforms and interfaces to support ecosystem activities.
The Safe City ecosystem is an example that consists of alliance partners, such as Hexagon, a leading global IT solutions provider, and a variety of regional ISVs and Independent Hardware Vendors (IHVs). Huawei leads its Safe City partners in the search for market opportunities and rewards the most active partners with greater exposure to new opportunities. As conference moderator, Huawei invites U.S. experts to conduct enablement training sessions that include industry-leading ecosystem governance and operations methodologies.
After years of experience and research, Huawei recognizes that satisfying partners’ core needs is the foundation of ecosystem success. This core needs lie in the improvement of business profitability. Large-company partners prefer to improve their own brand, marketing, and solution capabilities for long-term revenue growth. Small-company partners focus primarily on Return-On-Investment (ROI) and short-term market/brand benefits. Huawei teams with large-size solutions partners to leverage the expertise of all parties, improve our competitive edge, and better serve customers.
By analyzing the core needs of large- and small-size solutions partners, Huawei’s EBG has built differentiated cooperation models:
The Huawei and Hexagon team is a model to consider. By engaging a dedicated alliance manager, the two parties have rapidly built the world’s first visualized and converged command center solution. The center enables active prevention before an incident, rapid response during one, and precise investigation afterwards.
By the end of 2016, Huawei’s EBG had cooperated with more than 400 solutions partners, including SAP, Accenture, Hexagon, Infosys, Thales, Sobey, and Yusys Technologies. Cooperation domains include Safe Cities, omni-channel banking, digital railway, better-connected grids, and omnimedia. The EBG invited partners to deliver keynote speeches and exhibit solutions at Huawei’s 500 marketing campaigns worldwide. In addition, Huawei set up a dedicated joint marketing fund amounting to USD 50 million to drive campaigns with partners.
In line with its customer-centric strategy, Huawei will continue to orchestrate win-win, sustainable ecosystems as well as constantly improve ecosystem governance and operations capabilities. Today, Huawei is starting to build a unified IT platform for partners to perform end-to-end business interactions with Huawei online. Meanwhile, Huawei will continue to engage in collaborative operations of multiple ecosystems and join capability-building activities in external ecosystems.