December 5, 2020

Creating New Value with Synergy across 5 Tech Domains

Huawei Rotating Chairman Guo Ping addressing Huawei Connect 2020 on Day 1

This is the fifth year we’ve gathered in Shanghai for Huawei Connect. In 2016, we envisioned an intelligent world and called upon partners worldwide to build a rich and diverse ecosystem, one like Costa Rica’s. In 2017, we announced our goal of becoming one of the world’s five major cloud service providers. In 2018, we announced our AI strategy, and then in 2019 we revealed our computing strategy.

In 2020, we have completed large-scale 5G rollout worldwide.

This year,
it’s all coming together. We see a massive convergence of opportunities across
five tech domains. Today I would like to talk about creating new value with
synergy across these five tech domains.

As more and
more governments and enterprises go digital and embrace intelligence, the ICT
sector will see incredible potential for growth. We look forward to opening this
new chapter together with our partners.

As we have
seen, the digital economy is playing a key role in economic growth.

A report
from Oxford Economics shows that the digital economy is a significant engine
for growth, and has been for quite some time. That growth isn’t limited to the
digital economy itself, though. Digital transformation gives all industries access
to incredible growth potential. Investing one dollar in digital technology
leads to three dollars in digital transformation returns.

Take China for
example. Last year, the digital economy accounted for around one-third of China’s
total GDP and two-thirds of its total economic growth. New digital demand from
governments and enterprises is constantly emerging.

Of course,
connectivity and computing are the foundation of the digital economy. 5G and
the Internet of Things (IoT) are at the heart of connectivity, whereas cloud
and AI represent the future of computing.

We’re all
familiar with Moore’s law. As time passes, computing power will continue to
increase as the price decreases. Metcalfe’s law tells us that the value of a network
is proportional to the square of the number of nodes in the network.

So the
density of our connections multiplied by the sheer amount of computing power at
our disposal will ultimately determine the strength of the digital economy.

The convergence
of connectivity and computing will change all industries – whether it be transportation,
finance, or energy – and create new value for society.

We have seen
great changes in the role of connectivity across all sectors of society,
including government and enterprise applications. The evolution from 1G up
through 4G pretty much solved the challenge of connecting people. 5G, on the
other hand, has ushered in an entirely new era, one where everything in the
world is fully connected. At the same time, the computing industry has slowly
gravitated towards AI, which is already creating immense value for governments
and enterprises around the world.

Connectivity
and computing must become further integrated with industries and focus on the
pain points of real-world scenarios.

This focus,
combined with unique industry know-how and the right ICT technology, can create
practical value much more quickly. Over time, you can link these different
scenarios together and gradually build up to your grand digital vision.

Examples of Value Creation

Coking: Let’s start with a case study from the coking industry. Coking is the process of turning coal into coke, a type of hot-burning fuel. During this process, the way you blend coal is extremely important because it determines the production costs, quality, and end price of the final product. For the most part, coal blending is typically a manual process, one that is highly reliant on senior experts in the field. It’s inefficient and difficult to optimize.

Coke is made from heating coking coals in a coke oven in a reducing atmosphere. As the temperature of the coal increases, it becomes plastic. It fuses together and re-solidifies into coke particles.

The Golden
Stone Group wanted to change that, so they partnered with Huawei to come up
with a solution. Together, we combined AI with the Golden Stone Group’s coking
expertise to create an intelligent coal blending model. This model has
significantly increased precision, efficiency, and reliability. This set of
systems helps the Golden Stone Group save 15 yuan per ton of coal, for a total
of 27 million yuan (US$3.975 million) per year.

Now expand
that to the entire coking industry in China. If every coking plant saves 10
yuan per ton, the entire industry can save over 6 billion (US$833.44 million) a
year. And this is just one small example in a relatively niche industry.

Logistics: The Shanghai Kangqiao Logistics Hub is a massive facility covering around 100,000 square meters.

In the past,
their data collection and automation was practically nonexistent, and taking
inventory was mostly a manual process. It took a month to complete. In
addition, vehicle scheduling was unplanned, which frequently caused traffic
jams and long delays. It was always one issue after another.

To address these challenges, Huawei and DHL implemented an intelligent upgrade for the logistics hub. Using Huawei’s intelligent campus platform, DHL integrated over 20 business systems, transforming dock, warehouse, and asset management into intelligent, interconnected processes.

This drastically decreased inventory times, and vastly increased the efficiency of inner-campus traffic and dock utilization. In total, they increased operating efficiency by 30%.

In recent years, city governments have been even more interested in intelligent solutions than businesses.

Take Shenzhen, for example. Over the past few years, both individuals and organizations have benefited a lot from Shenzhen’s smart city program, and overall satisfaction has increased greatly in many aspects of city life.

Building smart cities is huge and complex undertaking. Shenzhen is currently in the process of becoming a smart city. As part of these efforts, the Government Services Data Bureau of Shenzhen is working with Huawei and our partners to integrate the service systems of 42 different government agencies.

Aerial View of Shenzhen

They are
leveraging our strengths in domains like 5G, cloud, and AI, to integrate over
100 types of data, creating an integrated “1 +10 + N” central
management hub. In the near future, a growing number of governments and
enterprises will start reaping the benefits of digital technology.

Over the past few years, Huawei has built up a solid portfolio of ICT products and solution. Moving forward, we will work more closely with our partners to apply these technologies to practical industry needs.

By providing
targeted, scenario-based solutions, we want to help enterprises grow their
businesses and help governments achieve their strategic goals of boosting domestic
industry, benefiting their constituents, and improving overall governance.

5 Major Opportunities

Connectivity, computing, cloud, AI, and industry applications are the five major opportunities we see in
the ICT sector. And by producing synergy across these five domains, we look
forward to creating new value together with our partners.

Next I’d
like to share some of the progress we’ve made in connectivity, computing,
cloud, and AI, as well as our business strategies in these four domains. Then I
will wrap up by sharing more information about how we’ve been supporting our
partners in their efforts to develop industry applications, boost the supply
chain, and grow their own industries.

Connectivity

First, connectivity.
The foundation of digital transformation for both governments and enterprises.

All
industries are beginning to incorporate digital transformation into their
production systems, and demand for connectivity has changed dramatically. For
example, coal mines, ports, and factories all need higher bandwidth. To achieve
truly smart manufacturing, different industries also have varied requirements
for latency and reliability. So we have to be able to provide a customizable
network experience with SLA assurances.

To meet these
needs, Huawei is working on something called intelligent connectivity.
Basically, we want to deliver a hyper-automated network that provides
ubiquitous gigabit access and a deterministic experience.

Computing

Different
technologies like big data, AI, and HPC all have diverse computing needs, and
monolithic computing architectures no longer have the chops to meet them. If we
hope to meet growing demand for different types of computing power, we need to
diversify.

And that’s
exactly what Huawei is doing. We have decoupled software from hardware to adapt
our compute to different processing needs, including x86 and Kunpeng.

Cloud

The cloud is
the best platform for unleashing the full value of computing power. As such,
it’s a cornerstone of the intelligent world.

Three years
ago, also at Huawei Connect, I said that our goal was to become one of the world’s
five major clouds, and that we were committed to long-term strategic investment
in public clouds.

Over three
years of effort, Huawei has established 23 regions worldwide, attracting over 1.5
million developers.

This doesn’t
mean that our cloud team can relax. On the contrary, they’re under much greater
pressure than ever before, because they’ve managed to raise the bar pretty high
for themselves.

Moving
forward, we will continue to advance our hybrid cloud solutions to meet the complex
digital transformation needs of governments and enterprises around the world.
We hope to become a preferred partner in their intelligent upgrade process.

AI

AI technology has developed rapidly over the past several years. In this time we’ve been exploring ways to better integrate AI into the management systems of governments and enterprises.

For example,
in Shenzhen Airport, they’re using AI to manage airplane gate logistics. Last
year, we leveraged facial recognition technology to increase the efficiency of airport
security checks by 60%.

Throughout
the pandemic, we’ve been using AI to analyze the CT scans of potential COVID
patients, reducing the time it takes to get results from 12 minutes to mere seconds.

The banking
industry is also using AI to fight fraud. We’ve made the impossible possible by
using AI to produce accurate warnings in just minutes.

Industry Applications

Connectivity
and computing are a lot like the early days of electricity. At first it was
only used for lighting. Gradually, it expanded to power home appliances and
industrial equipment, which brought tremendous change to all industries and officially
ushered in the electric age.

During this
process, the use of electricity in homes and industries created sectors that were
dozens of or even a hundred times larger than the electric sector itself.

In 2016, we
brought up the idea of building a diverse and thriving Costa Rica-like
ecosystem, one where we empower partners to grow the market and reap the most
benefits from the new value chain – just as electric-adjacent enterprises
benefited the most from the age of electricity. Many of our partners will
showcase their exemplary applications and solutions at this year’s exhibition.
Make sure to check them out!

First, an
example of growing the market through business innovation.

Tech
Education used to be a traditional IT training facility. By working with the
Huawei Cloud team, they now provide ICT solutions for the education industry. Huawei
Cloud provides Tech Education with technical solutions and monetization support.
In 2020, Tech Education’s transaction volume on the Yanxuan e-commerce platform
has already exceeded 80 million yuan, a year-on-year increase of 800%.

This is just
one example. To date, the Huawei Cloud has brought together over 13,000
consulting partners and over 5,000 technical partners. Huawei is committed to
helping more companies like Tech Education drive business innovation and secure
rapid growth. Their success is our success.

When it
comes to boosting the supply chain, we’re big believers in growing together
with our suppliers and sharing the wealth. Here I would like to share an
example that involves a key component of 5G base stations.

Back in
2016, Huawei began working with Cooler Master, a traditional supplier of heat
dissipation solutions. Back then we were working on a transformative set of 5G
cooling systems, and they were very actively involved in the process. With Huawei’s
help, they were able to make strategic breakthroughs in surface processing
techniques.

In addition,
working with Huawei enabled Cooler Master to optimize their processing
procedures and logistics, which significantly improved their product quality,
productivity, and supply capacity. They also managed to cut costs by 30%. Over
the course of this three-year relationship, Cooler Master has increased its
sales to Huawei by a factor of 20.

We will keep
working with our partners to improve their capabilities, making sure that
there’s plenty of benefits for them throughout the process, and that we can grow
together.

We’re in it for the long run with our partners. We stand
together through thick and thin. CS&S is an excellent example of this. We’ve
been working together for more than ten years, starting back in 2009.In 2014,
CS&S went global. Then in 2017, they became our first Huawei Cloud partner.
They’ve really been with us through everything. In 2019, CS&S joined Huawei
Cloud’s Kunpeng Partner Program. As you can see, CS&S has worked with
Huawei in different capacities at different stages of our growth. We share
value and stand together.

In return,
CS&S gets top-notch technical support from Huawei, and together, we have expanded
into new markets. CS&S’s partnership with Huawei Cloud is a great example.
They grew their business by 900% in only four years.

Only deep
roots make for green leaves. We will keep working hard to strengthen the
foundations of collaboration with capable and willing partners. And we very
much look forward to growing together with you. We will keep working hard to
provide the best possible products and services in connectivity, computing,
cloud, and AI.

Huawei will generate
the power, and our partners can harness it. Together, we will succeed and create
greater value for our customers. In addition, we will work with our global
partners in broader domains like basic innovation, standards development,
talent, and corporate social responsibility. Our ultimate goal is to provide
our customers with top-quality products and services.

Walt Whitman
said, “Keep your face always toward the sunshine and shadows will fall
behind you.” 2020 has been a year of grave uncertainties for everyone.
Let’s keep our faces toward the sunshine, and we’ll get through this together.

Read More

Leave a Reply

Your email address will not be published. Required fields are marked *