Huawei: Globalizing through Innovation - Coursework Example

Case Study of Huawei: Globalization through Innovation Table of Contents Introduction 3 Theoretical Perspective 4 Inter-Relationship between the External Environment on Innovation and Vice Versa 6 Contemporary Debates and Issues in International Technology Management 7 Conclusion 9 References 10 Introduction Huawei is one of the most significant international information and communications technology service contributors. The company’s participation towards the modernisation of the customers along with well built partnerships has eventually established immense advantages in telecommunication devices worldwide. Moreover, the company is also committed to create utmost importance especially towards the telecom workers and consumers among others by offering competitive as well as quality products. Huawei’s commodities and services have been marketed in many countries and mostly a huge number of populations recognise the commodities and the services of Huawei (Huawei Technologies Co. Ltd., 2012). The company’s vision is to develop the lives of the individuals through communication. The company’s experiences along with its several experts particularly in the information technology sector have helped in providing opportunities to enjoy a few of the noteworthy services like broadband among others. Apart from contributing and fulfilling the necessities of the people in the information and communication technology sector, the company also has created green solutions that allowed the customers to minimise the use of power, carbon emissions and resource costs among others (Huawei Technologies Co. Ltd., 2012). Huawei’s mission is to focus upon its customer’s along with providing excellent information and communication technology solutions and services constantly in order to create maximum value towards their customers. The core values of the company comprise of initially focusing on the customers, their dedication, their uninterrupted improvement, their strong initiatives, their integrity and their overall teamwork among others (Huawei Technologies Co. Ltd., 2012). In the paper, the focus will be made on the case analysis report which is based upon Huawei’s globalisation process through innovation. Various aspects regarding the company’s technological practices, models, policies and management of technological improvement, relationships between the exterior environment on innovation and vice versa, utilisation of the exterior causes of innovation and several issues in international technology management of the company will be studied in relation to the case study. Theoretical Perspective In the present widely developing technological world, the aspect of technology is regarded as the most significant factor for an organisation to perform. The term technology usually refers to the stock of knowledge about the set of all industrial techniques that are usually available at a given time. It also refers to the convenient and sensible knowledge as well as the skills that are used in order to develop the products along with the organisation’s manufacturing and delivery systems (Eris & Saatcioglu, 2006). Thus, from the management field of study, technology can be studied in different views such as a manufacturing process, a vital economical factor, an applied science, a definite method, a self-motivated approach, a learning practice and an advanced quality of life among others. From the technology viewpoint, there are certain theories that include the product-method concept, the knowledge idea and the technical reliability concept among others (Eris & Saatcioglu, 2006). In relation with the technological process, the concept of innovation is defined as a method of improving existing technical process, moving various prospects into real use, integrated development involving and introduction of latest technology and practices among others. Moreover, the various models of innovation include the product-process, essential–fundamental practices and managerial technical improvement procedures among others. However, the theories of innovation possess a great importance towards the long-term existence of an organisation (Eris & Saatcioglu, 2006). The concept regarding the technological innovation management has eventually become one of the most noteworthy, vital and capable fields of study in today’s management world. The most significant objective of the concept of technical innovation management lies in the survival as well as attainment of economical advantage among others. The concepts such as globalisation, immense competition, product modernisation and various technical aspects also added towards the significance of technological innovation management. The idea of the management of technological innovation refers to the monetary purposes of introducing certain fresh and modernised initiatives that are likely to have an effect in the financial progression of the business of an organisation (Eris & Saatcioglu, 2006). In today’s modern business organisations, the management of technological innovation is fundamentally designed for the expansion or growth of new and innovative commodities, services and procedures. Moreover, the management of technical innovation can also be regarded as a system in order to introduce certain new and modernised commodities and services for better improvement of an organisation. In this connection, in order to take place a successful management of the technological innovation, it is very much essential to carefully handle the procedures or methods of technical innovation (Eris & Saatcioglu, 2006). One of the models of technical innovation lies in its methods or procedures. The methods of technological innovation can be attained mainly on certain levels such as the learning stage and the product advancement stage. However, the steps that are engaged in the emergence of technical innovation consist of proper selection of the offer, the crisis resolving and the decision making among others (Eris & Saatcioglu, 2006). Huawei mainly laid stress and focused especially upon the customers so that the customers can extensively use the high technology products of the organisation related to telecom sector and worldwide services and devices among others. However, the organisation also committed towards providing its various high technological products and ultimately it helps to attain the business success with the strategies such as increasing revenue, diminishing cost and enhancing bandwidth among others (Huawei Technologies Co. Ltd., 2012). The various technological policies along with the management of technical innovation of Huawei lie in its service delivery platform, maximising profits and unified communications and collaborations among others. The organisation enables their workers to build their own “Digital Shopping Mall” system along with facilitating service innovation through combining telecom and internet services. This technical innovation ultimately combines complete business and technical elements. It provides a universal and standard method in order to attain the importance of telecom system between telecom networks and the internet as well (Huawei Technologies Co. Ltd., 2012). One of the significant technologies of Huawei include regarding its partnership especially with ‘Aircom’ towards the advancement in their upcoming actions of its support system as well as network management products. This significant technology partnership is mainly focused upon the network performances and the configuration of management practices. The leading network development tools of ‘Aircom’ and Huawei’s wireless solution methods ultimately provide adequate management systems towards all wireless technologies of Huawei (Huawei, 2009). In order to enhance the worldwide use of broadband, Huawei introduced a technology called “Wimax” which eventually effects in providing broadband facilities by using wireless technology. This particular technology innovation of Huawei proved to generate remarkable performance towards the worldwide growing trends of broadband services in today’s information and technology market (Huawei, 2009). Inter-Relationship between the External Environment on Innovation and Vice Versa An organisation’s external environment can be defined as the presence or existence of certain particular elements that possess extra advantages and highly influence the level of organisational performances (Murphy & Willmott, 2010). The external environment of Huawei mainly includes its competitors and especially its core customers among others. The technical innovation of Huawei has a direct relationship over its external environment. The relationship lies in the commitment that is duly made by Huawei to invest particularly in its Research & Development (R&D) processes in order to create economical commodities and services. The main objective of Huawei’s R&D is to deliver timely solutions for their customers’ necessities by modernising their technical approaches, policies, procedures and standards (Huawei Technologies Co. Ltd., 2012). Moreover, along with the customers, Huawei also made certain significant technical modernisations in their commodities and services which eventually raise the productivity of the organisation and throws a great challenge towards its competitor’s. Huawei’s strong technical modernisations laid a significant effect upon the performance of its competitor’s (Huawei Technologies Co. Ltd., 2012). In connection with the external environment of Huawei, especially the customers greatly rely upon the technical modernisations that the organisation introduced or offered towards them. The noteworthy technical modernisations made by Huawei include easy access to broadband service systems, innovative technical operations and adequate service delivery among others. These particular modernisations eventually raised the importance as well as the necessity of the commodities and the services of Huawei according to the viewpoint of the customers (Huawei Technologies Co. Ltd., 2012). Contemporary Debates and Issues in International Technology Management The debates as well as the issues of Huawei in lieu of contemporary technology management lie in its international technology outsourcing and alliances. In the context of outsourcing, in India Huawei engaged nearly about 800 engineers and had announced to increase this amount of engineers in future (White, 2006). It has been recognised that the fast IT globalisation along with migration of jobs are mainly resulting from outsourcing. Globalisation along with the IT industry are deeply linked together and both are likely to grow in the future. Although, the international technology outsourcing relationship between China and India remains very small, both the nations are recognising possible growths while executing their business practices and this particular feature could eventually prove significant towards both these nations (White, 2006). In due course of time, the Chinese market mainly linked with information and technology industry is immensely increasing. Moreover, the Chinese software industry is likely to expand more aggressively than the rest of the Chinese economy (White, 2006). By focusing upon the above mentioned statements, in relation to Chinese developing market and economy, it can be concluded that the international technology outsourcing of Huawei intends to progress and advance with regard to the technological aspects of the organisation in future (White, 2006). It is obvious to the fact that Huawei’s alliances with various firms and organisations that successfully made possible towards the development of the Chinese information and technology market to a certain extent. In order to develop management skills and structure, Huawei invested in collaboration with IBM Consultants. However, this particular collaboration or alliance enhanced Huawei’s administration, organisation along with its product development structure. Besides the management viewpoint, Huawei also invested heavily in its research and development processes. Every year at least 10% of annual sales were invested into its R&D for the development of its commodities and services (White, 2006). Moreover, Huawei’s technologies had many combined research labs notably with Texas Instruments, IBM and Microsoft among others. It also involved number of joint R&D partnerships especially with Lucent and Philips among others. To be mentioned in this regard, in the year 2006, HP which is one of the leading global players in telecom industry, eventually formed a global partnership with Huawei in order to manage their networks more effectively (Minevich & Richter, 2005). The several issues that are related with the international technology outsourcing and alliances comprise political, legal and cultural factors among others. Massive overpopulation, extensive shortages and environmental degradation are a few of the political issues that can arise in relation with outsourcing and alliances for Huawei. The legal issues include overloaded legislation, intellectual property rights, unfavourable tax policies and laws and limited judicial evaluation of legislative acts among others. Moreover, the cultural issues include proper learning of varied culture especially of Western countries and various language barriers among others (Minevich & Richter, 2005). Apart from the above mentioned issues, there are other several issues such as economic, IT infrastructure and human capital issues. In this connection, the economic issues lie in the Gross Domestic Product (GDP), financial structures of the organisation and reduced government controls on foreign trade and investments among others (Minevich & Richter, 2005). However, the most important IT infrastructure issues are mainly concerned with lacking in the improvement of various IT equipments and processes, telecom bandwidth problems and increased costs of IT equipments among others. Also the human capital issues consist of labour force unfamiliar with Western market expectations and high cost of human resources among others (Minevich & Richter, 2005). Conclusion Huawei’s aim of becoming worldwide leader particularly in the information and technology market eventually lies in expanding its alliance with several different partners along with establishing R&D centres worldwide and local sales branches all over the world in order to drive maximum revenue. However, the various models, practices and theoretical views of technical policies along with the management of technological modernisation of Huawei ultimately concludes that the organisation is serving their level best particularly in their technical processes in order to achieve maximum mileage while executing their business practices. The relationship of external environment upon innovation and vice versa was also focused in order to observe the process of improvement of the organisation particularly in the information and technology market. It has also been recognised from the above facts, that there lie certain contemporary debates and issues regarding international technology management along with outsourcing and alliances that are mainly performed by Huawei. Thus, in this connection, the organisation will have to sort out these issues as early as possible in order to attain its desired business results. References Eris, E. D. & Saatcioglu, O. Y., 2006. Technology and Technological Innovation. A System Look for Technological Innovation: Firm Based Perspective. [Online] Available at: http://www.iseing.org/emcis/EMCIS2006/Proceedings/Contributions/C52/CRC/eris%20&%20saatcioglu%20CRC.pdf [Accessed January 07, 2012]. Huawei Technologies Co. Ltd., 2012. Corporate Information. About Us. [Online] Available at: http://www.huawei.com/en/about-huawei/corporate-info/index.htm [Accessed January 06, 2012]. Huawei Technologies Co. Ltd., 2012. Solutions. Service Delivery Platform. [Online] Available at: http://www.huawei.com/en/solutions/increase-revenue/hw-001252-ttm-tco-newservice-applications.htm [Accessed January 07, 2012]. Huawei Technologies Co. Ltd., 2012. Research and Development. Corporate Information. [Online] Available at: http://www.huawei.com/en/about-huawei/corporate-info/research-development/index.htm [Accessed January 07, 2012]. Huawei, 2009. Wimax, the Ideal Technology for Basic Broadband. Huawei Technologies Communicate: Beyond Technology. [Online] Available at: http://www.huawei.com/en/static/issue52.pdf [Accessed January 07, 2012]. Minevich, M & Richter, F.J., 2005. Risk Dimensions. Global Outsourcing Report: 2005. [Online] Available at: http://www.globalequations.com/Global%20Outsourcing%20Report.pdf [Accessed January 07, 2012]. Murphy, D. J. & Willmott, H., 2010. Organization Theory and Design. Cengage Learning EMEA. White, J.R., 2006. China and IT Software and Services. Globalization and Offshoring of Software: A Report of the ACM Migration Task Force. [Online] Available at: http://www.acm.org/globalizationreport/pdf/fullfinal.pdf [Accessed January 07, 2012]. Read More