Digital Transformation is the Only Way for Enterprises to Survive
In these past two years, as cloud computing, Big Data, and AI have developed, more and more people believe advanced digital technology products and infrastructure will take over people’s work, leisure, education, sanitation, culture, and other areas. In the future, digital technology will diagnose diseases more accurately and Big Data will revolutionize the retail industry.
Diana Yuan, President, Marketing and Solution Sales, Enterprise Business Group, Huawei Technologies Co., Ltd.
“Rome wasn’t built in one day.” Before the era of the intelligent society really arrives, the digitalization revolution will have impacted business processes across each and every industry. IDC’s prediction for global IT industries after 2017 state that: By 2018, 67 percent of the world’s top 1,000 enterprises will have selected digital transformation as a key strategy in facing the future. By the end of 2017, 70 percent of the Fortune Global 500 will have set up full-time digital transformation/innovation teams. In 2016, Huawei and Forbes conducted a survey on 212 industries and IT managers around the world. The survey showed that 25 percent of participating industries had already established a digitalization strategy and a plan to use it to guide business transformation. 48 percent of enterprises have already added digital elements to their current services. More and more enterprise leaders believe that digital transformation is no longer a choice but the only way for their companies to survive.
Using the Fortune Global 500 to represent pioneering industries, we see they are implementing digital transformation from three aspects: commercial innovation, increasing efficiency, and improving customer experience. For example, Deutsche Post DHL Group, a world-leading mail and logistics company, signed a cooperation memo with Huawei in February 2017. The memo summarizes their intention to cooperate with Huawei to apply Internet of Things (IoT) technology to optimize DHL’s global supply chain logistics. This project’s goal is to achieve a fully digitalized connection between vehicles, transported goods, and drivers.
Preferred Partner for the Digital Transformation of Industries
DHL is just a grain of sand in the industrial transformation of every industry on Earth, and there is no denying that the road to transformation for each specific industry will be unique and require its own special characteristics. Our question is ‘How should Huawei enable the digital transformation of all industries?’
The Huawei Enterprise Business Group (EBG) is applying our deep understanding and reflection regarding the digital transformation across industries and issued its ‘Platform + Ecosystem’ development strategy. In the era of digital transformation, Huawei is building an open, flexible, and secure ICT infrastructure platform. Surrounding this platform is a prosperous ecosystem that is symbiotic, interdependent, and regenerative. To face the intelligent society of the future, Huawei EBG’s newest position is to develop and promote an intelligent society. Huawei’s goal is to become the preferred partner for the digital transformation of industries worldwide.
One-stop synergy: ‘Cloud-Pipe-Device’ ICT platform
All industries have the need to create their own platforms, and the synergies built into Huawei’s one-stop ‘cloud-pipe-device’ ICT platform is a strong differentiator when compared with our competitors. With thirty years’ experience, Huawei has gained a deep understanding of how cloud, pipe, and terminal components must be coordinated in order to operate with the greatest efficiently. We know the key characteristics of every component and how each must cooperate closely with the others to construct highly functional networks and not just collections of technology islands.
In the cloud, we considered all the different stages in the enterprise IT transformation process, as well as the different core challenges that are faced at each stage. Huawei launched FusionCloud, an integrated, open-cloud infrastructure that supports private, public, and hybrid clouds. FusionCloud is currently operating over 420 cloud data platforms and providing over forty cloud services, including computing, storage, network, security, Platform-as-a-Service (PaaS), and Big Data, among others. More and more big enterprises are choosing to commission global communications public clouds, including T-Systems, a Deutsche Telekom subsidiary, Spain’s Telefonica, France’s Orange, and China Telecom. Huawei’s FusionCloud is driving each of these large public clouds from the bottom up.
The intelligent society we envision cannot exist without the ability to understand and process of large amounts of data. The enterprise-level Huawei FusionInsight Big Data platform is purpose-built to provide highly efficient, agile, and precise information processing capabilities. Based on software components from the open-source Apache community, the FusionInsight core processing engine is built to handle massive amounts of real-time data in the areas of storage, query, and analysis to meet targeted Operations and Maintenance (O&M) and App requirements for financial institutions, telecom carriers, and other data-intensive industries. FusionInsight is an agile, smart, and reliable software platform that, because it is able to model operational middleware, enables enterprises to discover new value and business opportunities from large, unstructured data sets in a faster, more precise, and more stable way.
The comprehensive Huawei cloud network architecture is divided into three layers: ubiquitous connectivity, open cloud platform, and social media industrial applications. We support our enterprise customers to fully realize a Real-time, On-demand, All-online, DIY, and Social (ROADS) experience. Under Huawei’s ‘comprehensive cloud’ architecture, the entire enterprise network is ‘data center oriented,’ where campus branches, the IoT, and other scenarios operate in an interconnected data center infrastructure. Unified network cloud management results in fast service deployments and easy cloud O&M for Software-as-a-Service (SaaS) environments that add business value with a combination of network resource transparency, fully open data across the network, and Big Data analytics to make sense of the complexity.
The IoT is already impacting the rate at which terminals are being added to the network. To support this growth, Huawei’s IoT solution includes one platform, two access methods, and one IoT network operating system. Huawei is actively working with many partners around the world to provide one-stop IoT solutions targeting the markets for public services, energy, transportation, finance, logistics, sales, and many other industries.
The IoT is already impacting the rate at which terminals are being added to the network. To support this growth, Huawei’s IoT solution includes one platform, two access methods, and one IoT network operating system.
Huawei OpenLabs Grow Industry Partnerships
In the ecosystem domain, Huawei continues to act as the soil from which successful projects are grown. With Huawei’s comprehensive, open ICT capabilities developers and partners across all industries are exploring the road to digital transformation. Together they are shaping symbiotic, interdependent, and regenerative communities of interest. Huawei’s specific actions to build an open ecosphere include the following aspects:
- Driving big business through commercial alliances, such as the 5G Vertical Industry Accelerator (5GVIA) for the automotive-transportation industry based in Munich, Germany, and others.
- Establishing commercial alliances that enable continued commercial success, such as Huawei’s cooperation with Hexagon to create Smart Cities.
- Providing platforms for developers that incubate new players using the newly created USD 1 billion Huawei ‘Developer Enablement Plan.’
- Supporting the open-source software community and international standards development. Huawei is actively participating in many open-source projects, including OpenStack and ONOS.
Through 2016, Huawei has built and operates five global OpenLabs to support the large and growing number of partnerships involved in creating industry solutions to meet the real-world service requirements of our customers. Through a program of continuous optimization, the OpenLabs are innovation centers for industrial solutions and centers for joint development, verification, and experience testing. In 2017, the number of Huawei OpenLabs will grow to twelve. And, in the next three years, Huawei will assign close to 1,000 employees to the OpenLabs facilities — a USD 200 million investment to construct sustainable, local ICT ecosystems.
It is precisely because we have focused on building a single ecosystem that the number of partners we have attracted is growing non-stop. Through the end of 2016, we had already passed 12,000 global channel partners, 400 solution partners, and 2,100 service partners. Huawei has trained and certified 46,000 engineers worldwide. In 2017, the Huawei partner ecosystem and industrial-chain talent alliance continues to expand broadly.
In 2017, the number of Huawei OpenLabs will grow to twelve. And, in the next three years, Huawei will assign close to 1,000 employees to the OpenLabs facilities — a USD 200 million investment to construct sustainable, local ICT ecosystems.
Establishing Digital Transformation Benchmarks with the Fortune 500
Currently, over a third of enterprises in the Fortune Global 500 list have already chosen Huawei as their digital transformation partner. Among them, 40 percent of the top 100 enterprises, including France’s BPCE bank, DHL, Deutsche Telekom, Siemens, Deutsche Bahn, SAP, ABB, and other industry-leading enterprises.
The financial industry is the pioneer of digital transformation and their IT systems are directly being used in enterprise business operations and decision-making. France’s BPCE Bank Group, for example, is France’s second largest bank and has over 8,200 branches and 40 million customers. Using Huawei’s Agile Campus solution, BPCE Bank’s over 8,000 branches achieve fast network coverage. Under a network unified management model, all branches’ services can be provisioned quickly and business activities completed.
The partnership between Huawei and SAP is an example of two Fortune 500 companies that have joined forces to benefit their customers. Using Huawei’s high-performance, high-reliability infrastructure and SAP’s innovative HANA in-memory software platform, the two companies assist other Fortune 500 enterprises to reconstruct their businesses using flexible, economical, and efficient processes to manage business data, increase real-time operating capabilities, and achieve digital transformation. For example, Huawei and SAP are cooperating with Sinopec, fourth in the Fortune 500 list, to construct what is currently the world’s largest Enterprise Data Warehouse (EDW) SAP HANA cluster system, greatly improving Sinopec’s database-loading performance by reducing upload times from four hours to thirty minutes, increasing processing speed four to six times and, overall, improving the business efficiency of sales and financial analysis reporting, and operations decision-making.
Huawei is also collaborating with ABB, a leader in the electric power and automation technologies industry, to promote the deep integration of automation and information for the oil and gas industry. Together, Huawei and ABB have developed an integrated Supervisory Control and Data Acquisition (SCADA) solution for oil and gas communications. This solution is now widely used in the development and production of oil and gas fields, and for oil and gas pipeline transportation. Oil and gas pipeline administrators can monitor the pipeline’s operational status and gather network parameters in real time to comprehensively understand the pipeline’s operating situation in a timely manner, predict faults before they occur, and greatly reduce management risks to guarantee the safe, stable, and efficient operation of the transportation pipeline. Achieving the digital management of energy resources incorporates the application of eLTE industrial wireless private network solutions to ABB robots and industrial automation solutions to deliver remote wireless monitoring, management, and configuration. Application services include O&M, Big Data analysis, and visualized smart production. Huawei and ABB are working hand-in-hand to create full connectivity in the Industry 4.0 domain.
Currently, enterprises and industries have already entered a key period for digital transformation. Huawei is committed to becoming a development promoter of digital and intelligent society and a preferred partner for the digital transformation of industries. We do so by adhering to the two main strategies of ‘platform’ and ‘ecosystem’ to provide innovative, one-stop ICT architecture platforms for establishing cooperative, mutually beneficial ecosystems that explore the best practices in digital transformation and assist enterprises to achieve business success.
Currently, over a third of enterprises in the Fortune Global 500 list have already chosen Huawei as their digital transformation partner, including France’s BPCE bank, DHL, Deutsche Telekom, Siemens, Deutsche Bahn, SAP, ABB, and other industry-leading enterprises.