TM 743

Decision Making in Technology Management

Chaiwat Lerkbunrong
Napas Daengbunga
Piyapong Rotnaparai
Sodsai Chirachariyakul
Suksawat Paiphansiri
Tassamon Rungratnaubol
Wanitcha Khamwathee

5823030175
5823030126
5823030100
5823030134
5823030142
5823030050
5823030092

Nation - China

Organization Huawei

Chinas National Economic and Social Development Plan 2016-2020

Chinas National Innovation System (NIS)
Policy of Chinas Ministry of Science and Technology
Made in China 2025
Summary

Background
Financial
Analysis
Summary

Summary & Suggestion

Agenda

Chinas National Economic

and Social Development Plan 2016-2020

Chinas National Economic

and Social Development Plan 2016-2020

Chinas National Economic

and Social Development Plan 2016-2020

Innovative District Area

Source : http://www.innovativechina.com/2013/10/rd-china-nesta-provides-great-overview/

Chinas National Economic

and Social Development Plan 2016-2020

Chinas National Economic

and Social Development Plan 2016-2020

GDP Annual Growth Rate

China GDP

6.5%

Source : https://knoema.com/tbocwag/gdp-by-country-1980-2015?country=China

GDP

10,983 US$

Chinas National Economic

and Social Development Plan 2016-2020

Business R&D Intensity and Government Support to Business R&D

Source : https://www.oecd.org/sti/RDTaxIncentives-Data-Statistics-Scoreboard.pdf
http://www.rba.gov.au/speeches/2016/sp-ag-2016-06-16.html

Chinas National Economic

and Social Development Plan 2016-2020

Background

Change in Government Support for Business R&D through Direct

Funding and Tax Incentives

Source : https://www.oecd.org/sti/RDTaxIncentives-Data-Statistics-Scoreboard.pdf

Background

Ministry of Science and Technology of the People's Republic of China

Minister

With a PhD in engineering, Professor WAN Gang is Vice

Chairman of the 11th Chinese People's Political Consultative
Conference (CPPCC), Chairman of China Zhi Gong Party, and
Minister of Science and Technology

Source : https://www.oecd.org/sti/RDTaxIncentives-Data-Statistics-Scoreboard.pdf

Background

Ministry of Science and Technology of the People's Republic of China

Departments and Offices

Department of Policies, Regulation and Supervision
(Office of Innovation System)
Department of Innovation and Development
Department of Resource Allocation and
Management
Office of Major S&T Projects
Department of High-tech Development and
Industrialization
Department of S&T for Rural Development
Department of S&T for Social Development

Source : https://www.oecd.org/sti/RDTaxIncentives-Data-Statistics-Scoreboard.pdf

Ministry of Science and Technology of the People's Republic of China

Main tasks of most

Source : https://www.oecd.org/sti/RDTaxIncentives-Data-Statistics-Scoreboard.pdf

China's
STI policies and international strategy
Background

Medium and Long Term S&T Development Plan 2006-2020

1. Enhance Chinas S&T and innovation capabilities;
2. Use innovation as a tool to restructure Chinese industry and shift growth from investmentdriven to innovation-driven;
3. Build a conservation-minded and environmentally friendly society; and
4.Enhance independent innovation capabilities as a national priority.

Source : https://www.oecd.org/sti/RDTaxIncentives-Data-Statistics-Scoreboard.pdf

China's STI policies and international strategy

Medium and Long Term S&T Development Plan 2006-2020

Quantitative targets:

Raise R&D expenditures to 2.5% of GDP by 2020.

Rank among the worlds top five in patenting and
international citations.

Source : https://data.oecd.org/rd/gross-domestic-spending-on-r-d.htm

China's STI policies and international strategy

12th Five-year Plan for S&T Development 2011-15

1. Improve indigenous innovation capability, especially in firms;
2. Strengthen S&T competitiveness and international influence with a focus on development of
human resources, creativity and innovation culture;
3. Make breakthroughs in core and critical technologies in key areas to support economic
restructuring;
4. Develop a functional, well-structured and efficient national innovation system through reform of
the public research and S&T governance systems and better co-ordination and collaboration among
stakeholders.

Source : https://data.oecd.org/rd/gross-domestic-spending-on-r-d.htm

China's STI policies and international strategy

12th Five-year Plan for S&T Development 2011-15

Quantitative targets:

Raise R&D expenditures to 2.2% of GDP.

Raise investment of large and medium-sized industrial enterprises in R&D to an average of 1.5% of
their revenue.
Increase proprietary core technologies. Increase the role of large-scale enterprises in driving
technological innovation. Foster world-leading innovative SMEs.
Raise the number of researchers to 43 out of every 10 000 employees.
Raise the share of citizens with basic scientific proficiency to over 5%.

Source : https://data.oecd.org/rd/gross-domestic-spending-on-r-d.htm

China's STI policies and international strategy

12th Five-year Plan for S&T Development 2011-15

Raise R&D expenditures to 2.2% of GDP.

Source : https://data.oecd.org/rd/gross-domestic-spending-on-r-d.htm

China's STI policies and international strategy

12th Five-year Plan for S&T Development 2011-15

Raise the number of researchers to 43 out of every 10 000 employees.

Source :
https://data.oecd.org/rd/researchers.htm#indicator-chart
https://data.oecd.org/rd/government-researchers.htm#indicator-chart

Made in China 2025

"Made in China 2025" is an initiative to comprehensively upgrade
Chinese industry that is inspired by Germany's "Industry 4.0" plan,
which was first discussed in 2011 and later adopted in 2013. The
heart of the Industry 4.0 idea is intelligent manufacturing

Source : www.csis.org/analysis/made-in-china2025

Made in China 2025

Strategy Factors

Source : http://community.iotone.com/t/made-in-china-2025-2025/28

Made in China 2025

Source : http://community.iotone.com/t/made-in-china-2025-2025/28

ZHONG GUAN CUN (Chinas Science park)

Zhong guan cun is the name of a place in the Haidian District,
northwest of Beijing
High-tech Science Park similar to the Silicon Valley in the U.S.
Zhong guan cun has grown up from an Electronic Street
Stone Group Corporation, Legend Group Corporation, BD
Founder Group, Qinghua Violet

Cluster Model
University
Peking University
Tsinghua University
Chongqing Jiaotong University
Chinese Academy of Social Sciences
Over 100 institutions in Chinese Academy of Science(CAS)

Organization

Tech High Technology Industry

Development Center
Government-Financed Venture
Capital Funds (GVCFs)

Technology Cluster in ZSP

Biopharma
New Energy
Environment
High-Tech

Firm infrastructure
Infrastructure
Research infrastructure
S&T infrastructure platform
High speed railway network

University

Industry

Government

High Technology Industry to Market

Diamonds Model

Encourage to expert
Discount tax & interest
R&D budget

infrastructure
High Potential Resources
Facilities

Explore the new trend

Social Value

Partnership
Conformed Policy
state agency

Nation - China

Organization Huawei

Chinas National Economic and Social Development Plan 2016-2020

Chinas National Innovation System (NIS)
Policy of Chinas Ministry of Science and Technology
Made in China 2025
Summary

Background
Financial
Analysis
Summary

Summary & Suggestion

Agenda

The Meaning of HUAWEI is flower

Timeline
First major product, a digital
telephone switchboard

Built more than 480 data centers as of the end of 2014,

among which over 160 were cloud data centers.

2014

1993

1987
Huawei was founded

2003
Huawei established its
handset department.

Source : http://huawei.com/en/about-huawei/milestone

2013
We launched the worlds first service- and
user experience-centric agile network
architecture,

2015
Huawei launched the world's first SDN-based
agile IoT solution.

Huawei - Vision & Mission

Vision
To bridge the digital divide, and promote the harmonious and sustainable development of the economy,
the environment, and society

Mission
To establish an excellent sustainability management system, operate with integrity and compliance,
continuously improve communication with stakeholders, promote a harmonious business ecosystem,
ensure the sustainable development of the company, and provide benefits to our customers and society

Source : http://www.huawei.com/en/about-huawei/annual-report/2015

Huawei Global Service center

Patent Portfolio 2015

Global industry

China industry

3,800

3868

Source :
http://www.greyb.com/patent-portfolio-analysis-of-xiaomi-global-expansion-plan/
http://www.huawei.com/en/news/2016/3/WIPO-names-Huawei-1-filer
http://blog.lenovo.com/en/blog/10-things-you-probably-didnt-know-about-lenovo/

3,898

Huawei - Partner

Source : http://http://www.huawei.com/en/partner/Seeking%20Partners/Value-added%20Service%20Partner%20Program

Huawei - Products & Solutions

Huawei is organized around three core business segments:
1.Consumer Business
2.Enterprise Business
3. Carrier Business
Source :
http://www.huawei.com/en/carrier/index.htm
http://consumer.huawei.com/en/index.htm
http://e.huawei.com/en /

Huawei - Products & Solutions

1.Consumer Business
Source : http://consumer.huawei.com/en/index.htm

Huawei - Products & Solutions

2.Enterprise Business
Source :http://e.huawei.com/en /

Huawei - Products & Solutions

3. Carrier Business
Source : http://www.huawei.com/en/carrier/index.htm

Smartphone Market share 2011-2015

Source : http://http://blog.daum.net/_blog/BlogTypeView.do?blogid=0Idbt&articleno=7594221

Broadband equipment market share 2015

Source : http://www.telecomlead.com/telecom-statistics/huawei-leads-telecoms-voip-ims-market-2015-67832

Huawei - Finance management

Revenues

Source : http://www.huawei.com/en/about-huawei/annual-report/2015

Market

Huawei - Finance management

Source : http://www.huawei.com/en/about-huawei/annual-report/2015

SWOT Analysis
Strengths

Employee know how and competence

Strong Market Share
Strong in R&D department
Flexible and responsive organization
Distribution channel
Dealing with good partners
Increase products line
Economy of scale

Opportunities

Android OS is the most popular

Government support
Demand increasing in Developing country
Expand to New Market

Weaknesses

Low revenue and Earning

Huawei 's lawsuit with Cisco
Nationalism
Limited Equity

Huawei
Threats

People have preconceptions

Rivals have strong competitive
Technology always change

Five Forces
Potential entrants
Smart phone Huawei : Low
Broad band equipment : Low

Suppliers

New Entrants

Competitive rivalry within the industry

Industry
competitors

Bargaining power of suppliers

Buyers
Bargaining power of buyers
Smart phone Huawei : High
Broad band equipment : Medium

Smart phone Huawei : Low

Broad band equipment : Low
Substitutes

Michael E. Porter, 1980, Five Forces model

Smart phone Huawei : High

Broad band equipment : Medium

Threat of substitute products or services

Smart phone Huawei : Low
Broad band equipment : Low

PESTEL

Politics

Government support technology and innovation

Founder have good relationship with china government
Policy of NIS

Legal

Consult about Law

Intellectual property

Economy

Environment

Social

Air and water pollution

Save energy (Solar cell)
Save energy (the new plant)

Technology

Johnson et al. (2014)

China economy growth

FDI

Largest telecom market

High investment
Develop 5G technology

Higher education
Best Living
Exchange culture

BCG Matrix Analysis

Botson Consulting Group

lnnovation Life Cycle

Utterback and Abernathy (1975); Twiss (1995) ; Rogers (2003)

Competitive Advantage
Smart Phone Business

Michael E. Porter, 1985, Competitive Advantage: Creating and Sustaining Superior Performance

Enterprise Business

Evaluate method

Nation - China

Organization Huawei

Chinas National Economic and Social Development Plan 2016-2020

Chinas National Innovation System (NIS)
Made in China 2025
Summary

Background
Financial
Analysis
Summary

Summary & Suggestion

Agenda

Summary - Nationality
National Innovation System (NIS)
Chinas National Economic and Social Development
Plan 2016-2020
12th Five-year Plan for S&T Development 2011-15.
Made in China 2025
Zhong Guan Cun Science Park

Summary - Corporate
Corporate Strategy's
ROADS
R&D
Partnership
Economy of Scale
Brand Image
Expending New Market

Suggestion
Government
Encouraged Foreign Investment in China
Encouraged Solid Policy
Non-tariff barrier
More discount tax and interest
Decrease import & Increase export
Increase number of patent by 3% year on
year
Increase rate of Knowledge diffusion
Increase number of indicators
Be a leader in every way
Reduce Government intervention

Industry
Develop craftsmanship
Encouraged learning and
creativity within organization
Reward for high performance
firm and employee
Potential of CEO
Improve quality and efficiency
in productivity
Establish Association for each
industrial

Nation - China

Chinas National Economic and Social Development Plan 2016-2020

Chinas National Innovation System (NIS)
Made in China 2025
Summary

Organization Huawei

Agenda

Background
Financial
Analysis
Summary

Thank you

Summary & Suggestion