Introduction: What is digital transformation?
The underlying logic of digital management has never changed, that is, to promote the sustained and effective growth of enterprises; Improve efficiency, reduce costs and establish long-term competitive advantage.
Digital enterprise has four key characteristics: connection, online, enjoyment and intelligence.
Behind Huawei's management reform is a typical digital transformation project.
Huawei's digital transformation model: diamond model. The original intention of diamond model is to deal with the uncertainty of results with the certainty of rules.
The purpose of digital transformation is not digitalization itself, but the business strategy and excellent operation of the enterprise itself.
The success of enterprise digital transformation should be measured by how many new technologies are applied inside the enterprise, but by how much value digitalization has brought to the enterprise and management.
The purpose of discussing digital transformation is not to introduce new technologies and systems, but to explore how to establish an enterprise management model based on digital technology. The focus of the discussion is the methods behind the technology and the experience and lessons in practice, and the essence is the construction of management system.
The way of digital transformation: strategic strength+digital leadership+innovation.
Strategic strength, digital leadership and transformative power are the most critical factors for the success of digital transformation, and they are also the core concepts and management methods in the process of Huawei's management transformation and digital transformation, and they are also the way of digital transformation of enterprises.
The road to digital transformation can be summarized as follows: having the right direction and orientation (strategic strength); Embrace the new leadership (digital leadership) of the times with business leaders; With the effective operation of change management mechanism (change force), enterprises have mastered the basic laws of digital transformation.
Digital transformation technology: process drive+digital drive+intelligent drive.
The so-called value chain reconstruction is to analyze, calculate, reconstruct and guide production from data. Digital transformation is only useful if it is promoted to the core strategy of the enterprise.
Chapter I Strategic Power
The real digital transformation is the comprehensive digitalization of business value chain, which must return to the foundation of enterprise management; The goal of comprehensive digitalization of business is to realize customer-centered management reform and long-term effective growth of enterprises.
Enterprises must grasp the current and future customer key needs of core business, and carry out systematic business reshaping and full value chain reshaping around business income growth, operational efficiency improvement and customer experience optimization.
The digital transformation must adhere to the long-term principle, and the digital transformation strategy is a long focal length telescope.
Huawei's management reform is essentially based on the reshaping of digital business, which is not only management reform, business transformation, but also digital transformation. The essence of Huawei's digital transformation is to root all the process systems of enterprise management in the digital platform, which also requires long-term persistence.
Huawei's digital transformation needs to adhere to long-termism, which is mainly reflected in five characteristics:
1. Digital transformation is an irreversible journey.
2. Digital transformation needs continuous investment.
3. Digital transformation needs systematic thinking and methods.
4. Digital transformation is an investment behavior based on commercial value.
5. Digital transformation needs to build organizational capacity to support its long-term transformation.
The difficulty of digital transformation does not depend on the size of the enterprise, so it depends on whether the management of the enterprise has reached the knowledge of digital transformation. Without * * * knowledge, there is no execution.
The digital transformation strategy has three main points:
1, * * Understand the urgency and essence of digital transformation.
Accelerating the evolution of enterprise management and becoming a digital enterprise is not an option in this era, but a necessity.
The essence of digital transformation is the business transformation and value chain innovation of technology empowerment, not the technology itself.
Digital transformation should start with the overall digital planning, take the process domain as the dimension, combine quick-acting with system pull-through, and continuously improve management and digital landing.
2. Understanding of "Three Action Problems" in Digital Transformation
(1) Evaluate their existing digital level objectively and find out who I am.
② Understand the development of digitalization in this industry and where digitalization comes from.
③ Unify the vision and strategic goal of digital transformation, and know where to go on the road of digitalization?
3. Understanding of the arduousness, protracted nature and complexity of digital transformation.
Only by fully discussing the protracted war thinking of transformation, the cultivation of change consciousness and the supporting management framework of digital change, and reaching a consensus, can we take consistent actions and achieve the expected results.
One of the most important tasks of Huawei's change project team is to fully involve senior management. The high recognition of the leadership has enabled Huawei to realize: the first system contact with architectural thinking; Internet technology is integrated into the architecture for the first time; The IT strategic planning department was established for the first time, and the mechanism of linking business strategy with digital strategy was put forward. IBM management was used as a benchmark for the first time.
Chapter two? Digital leadership
Digital leadership includes general leadership elements such as Ming Dow, improving the situation, excellent skills and cultivating talents, as well as the initiative of continuous change, the sensitivity of digital technology and the action force of digital transformation.
The biggest difference between digitalization and informatization is that digitalization serves the reshaping of commercial value chain and management reform. Digital transformation is the integration of business and digitalization, and it is the two-wheel drive of business and technology. Enterprise executives naturally need to turn around and become leaders with digital leadership, and play a greater leading role and input in digital transformation.
Enterprises should try their best to cultivate mixed senior managers who know both business and digitalization. Digital context includes related language logic, including process elements, change elements, architecture elements, data elements, quality elements and Internet elements.
Managers should devote themselves to digital transformation, complete their own digital consciousness and ability in practice, and gradually change from simple business managers to mixed managers with digital leadership.
The way to cultivate digital leadership of managers is mainly the mode of "training instead of training": one is learning, learning and re-learning, and the other is practice, practice and re-practice.
The challenge of digital transformation to enterprise leaders lies in: enterprise leaders lack thinking and cognition about digitalization, lack sensitivity to digital application, and lack confidence in the implementation of digital solutions.
In Huawei, the relationship between consultants and Huawei people is not a suspicious relationship, but a teacher who brings change plans and digital thinking. Business executives build these excellent management processes and digital solutions into Huawei's management system as truly as possible, and learn the management processes rigidly first, and then solidify them into the digital platform.
Huawei's experience in hiring consultants to cultivate leadership has the following three points worth learning:
1, high-level investment
2, zero mentality
3. perseverance
In the process of digital transformation, as long as we keep enough curiosity and digital sensitivity, keep an open mind and make good use of external professional technology and business consultants, the digital leadership of enterprise management can be cultivated.
Digital organization based on IT organization has become the key ability of enterprise competition and development. Entrepreneurs realize that it is necessary to take time to rebuild and empower this organization.
Digital transformation is the core strategy for the future success of enterprises, and it is also the goal that enterprises should adhere to for a long time. Pursuing the continuous growth of corporate business is the only reason for the existence of digital organizations.
In order to achieve the goal of "service business" of process and IT management departments, Huawei should not only strengthen the construction of vertically integrated professional and technical capability platform (warp), but also strengthen the construction of horizontally integrated business domain integrated solution capability (weft).
Digital organization ability is the key ability in digital leadership and the main support of digital transformation.
Two key problems of digital organization reconstruction;
1. Is the digital organization centralized or decentralized?
Digitalization requires unified planning, unified organization and action, and strong binding force to realize the expected digital transformation.
The key resources in the digital transformation stage should be drilled.
The centralization and decentralization of digital organizations have stages.
2. On the integration of process and information technology
Process carries business flow and IT carries information flow, which are interdependent.
Process is the cornerstone of company management, which can solidify the process, thus improving the operating efficiency of the process.
The idea of Huawei's organizational design is multi-department, and the digital organization is also designed according to the multi-department system. Based on the concept of high-quality management, Huawei integrates quality, process, IT and change to form a large first-level department, namely Quality Process and IT Management Department.
Digital leadership and quality culture are two sides of the same coin. Create a strong digital culture through the following three aspects:
1, self-critical sense of crisis
Self-criticism is one of Huawei's most important core values, and Huawei regards self-criticism as the most important magic weapon to save the company.
2, openness, compromise, gray sense of change.
A good sense of change is an extremely important factor to ensure the smooth realization of digital transformation. Openness, compromise and grey are the essence of Huawei culture and certified non-management philosophy.
3. Respect the process and the management consciousness of data.
(1) Form a management mode based on process management, process authorization and process resource allocation.
(2) Form a digital culture that respects, values and uses data.
Chapter III Transformation Motive Force
Digital transformation is a complex management change project. From strategic planning to implementation, the key is not digitalization or transformation.
Any transformation and change will bring inadaptability and uncertainty to organizations, cadres and employees, leading to a decline in work efficiency. The core of change management is to minimize this negative impact, reduce the resistance of transformation and change as much as possible, improve the readiness and acceptance of change, and promote the overall success of change.
In the process of transformation and change, what is often overlooked is the change management related to people's thinking, culture, habits and interests. To carry out large-scale changes, the core problem to be solved urgently is to change people's behavior.
To change people's behavior, it is the key to stimulate their sense of identity.
When change and transformation become normal and decisive quantification, what enterprises need most is the change of leaders' old thinking mode and behavior mode.
The reason why Huawei's change steering committee needs to be renamed as the change steering committee;
1, we must emphasize customer-centric, and emphasize that the purpose of change should be aimed at customer needs.
2. The Committee is not an organization that listens to reports, nor is it a rubber stamp. It should regard change as an investment.
3. The demand for change cannot be in the hands of grass-roots employees. We should look at the change from a global perspective, and we should lead the cadres who change from a global perspective.
The core logic of Huawei's management reform: management reform should be customer-centered, from customer to customer, and the process should be combed back from the front line.
When promoting digital transformation, enterprises should not only do a good job in hard output such as business plan and technical scheme, but also attach importance to soft output such as people-related change management in the process of transformation. Only by grasping both hard and soft can the change be truly implemented.
Huawei's "seven objections" reform principle;
1. Resolutely opposing perfectionism is the basic principle of Huawei's successful management reform and digital transformation.
2. Resolutely oppose tedious philosophy.
3. Resolutely oppose blind innovation.
4. Resolutely oppose local optimization without overall benefit improvement.
5. Resolutely oppose the reform of cadres and leaders who have no overall view.
6. Resolutely oppose people who have no business experience to participate in the change.
7. Resolutely oppose the process of trial without full argumentation.
Huawei people have reached an internal understanding that an enterprise is a profit-making organization, and its business activities should be commercial success, so as to achieve a balance between cost and quality. Huawei doesn't want pure scientists, but engineering businessmen.
Management reform and digital transformation are long-term and endless tasks, and cannot be accomplished overnight. We must grasp the main contradiction and pay attention to timely, accurate, low-cost delivery and sustainable operation.
Huawei is a company that changes its normal operation. However, in management reform, Huawei always insists on starting from practical purposes, achieving applicable goals, and persisting in not going to extremes.
Only when you don't forget your initiative, learn to be tolerant and keep open, can it go more steadily and further on the right road.
Five elements of enterprise structure governance;
1. Set up the thinking of architecture, take architecture as an important starting point to get through business and IT, and realize from strategy to implementation.
Digital transformation requires enterprise architecture thinking. Enterprise architecture clearly presents the mapping relationship among business, data and IT systems, and guides the implementation of digital projects through control measures such as standard specification and architecture review.
2. Based on standardization construction, simplify the complex and take standardization as the starting point of architecture management.
Architecture is made up of components. What really works is to define and standardize these components and make them interact and support each other to form a powerful whole.
3. Managing integration well is the main entry point to achieve the goal of architecture planning.
The principle of integration is the core principle. It is necessary to take process integration, application integration, data integration and business scenario integration as the main entry points of the architecture, establish an integrated management mechanism, and provide integrated services in a unified manner.
4. Running enterprise architecture expert committee and architecture review mechanism is the organizational guarantee for architecture consistency.
5, formulate the principles and standards of building construction, clear the boundaries and constraints of digital construction.
The key to any change lies not in the commencement, discussion, design and implementation, but in whether the project can land and really play its practical role.