huawei award write up
TRANSCRIPT
2016 Global DC Power Product Leadership Award
2016
BEST PRACTICES RESEARCH
© Frost & Sullivan 2016 2 “We Accelerate Growth”
Contents
Background and Company Performance ........................................................................ 3
Industry Challenges .............................................................................................. 3
Product Family Attributes and Business Impact ........................................................ 3
Conclusion........................................................................................................... 7
Significance of Product Leadership ................................................................................ 8
Understanding Product Leadership ................................................................................ 8
Key Benchmarking Criteria .................................................................................... 9
Best Practice Award Analysis for Huawei ....................................................................... 9
Decision Support Scorecard ................................................................................... 9
Product Family Attributes .................................................................................... 10
Business Impact ................................................................................................. 10
Decision Support Matrix ...................................................................................... 11
The Intersection between 360-Degree Research and Best Practices Awards ..................... 11
Research Methodology ........................................................................................ 12
Best Practices Recognition: 10 Steps to Researching, Identifying, and Recognizing Best Practices ................................................................................................................. 13
About Frost & Sullivan .............................................................................................. 14
BEST PRACTICES RESEARCH
© Frost & Sullivan 2016 3 “We Accelerate Growth”
Background and Company Performance
Industry Challenges
Macroeconomic factors are beginning to impact a variety of markets. Thus, infrastructure
build-outs in mature economies are slower than expected. Although remote and untapped
regions provide good opportunities for growth, the lack of existing power infrastructure
makes the cost of power high in implementing a wider telecoms network. This hinders the
progress of new network build-outs in many untapped regions. The DC power systems
market is witnessing a phase of intense competition with consolidation taking place
amongst the Tier 1 manufacturers. There is also a lack of innovation and product
differentiation in this market, where many end users are still using old legacy systems. In
order to gain market share, DC power manufacturers need to come up with technically
advanced and innovative products that address the customer pain points. Huawei has had
great success in this area.
Product Family Attributes and Business Impact
Match to Needs
Huawei’s deep understanding of end user needs and specific requirements is the
foundation of its product development process. The company’s excellence in DC power
systems can primarily be attributed to its ability to develop products that perfectly align
with customer expectations as its product designs are directly inspired and influenced by
evolving customer needs. Rapid technology developments in the broadband networks
(both mobile and fixed) are influencing massive changes in equipment rooms and telecom
sites. This has led to changing customer requirements with respect to network equipment
as well as energy products. Huawei is always ahead of the competition when it comes to
identifying/analyzing these trends and developing energy products that effectively address
customer pain points. The company places tremendous emphasis on three core aspects of
its product development process – simplicity, efficiency and reliability. A fitting example to
demonstrate Huawei’s commitment towards enhancing customer value is its development
of an innovative energy infrastructure management platform which allows smart site
management and significantly enhances site reliability. This system called “NetEco”; it is a
comprehensive online management and monitoring system that provides real time access
and updates of all the site equipment. It provides accurate operation & maintenance
management, especially on energy efficiency management, by leveraging digitization
technologies, intelligence and interconnection. NetEco ensures a smooth communication
and end to end high efficiency network with minimized OPEX.
BEST PRACTICES RESEARCH
© Frost & Sullivan 2016 4 “We Accelerate Growth”
System Architecture of NetEco Source: Huawei
Breadth of Product line combined with Excellent Reliability and Quality
Huawei’s vision to create multiple telecom power solutions to cater to diverse end user
requirements and its meticulous efforts to incorporate value added features and
functionalities in each of those products is highly commendable. Its extensive product
portfolio comprises of adaptive telecom energy solutions which are designed to suit
diverse scenarios ranging from urban to rural, indoor sites to outdoor sites and small sites
to central office sites. Furthermore, it also offers a hybrid power solution to promote green
energy. Huawei’s indoor power systems include standalone and integrated types, are
modular in design and enable fast deployment as well as easy expansion. Its latest
product “MTS9600V” is an intriguing next-generation indoor site power solution which
integrates power, cooling, and monitoring systems to provide an end to end energy
solution for telecom equipment. Its outdoor counterpart “MTS9000A” is also modular in
nature and offers outstanding management functions, and provides a stable and reliable
power supply for wireless coverage and transmission node sites. The company has also
developed a series of other outdoor power solutions in different sizes and types
(integrated and stackable types) to cater to various outdoor scenarios. These units are
characterized by its customer centric design aspect, where various cooling technologies
such as Heat Exchange (HEX), Direct Ventilation (DV), and TEC can be incorporated based
on specific customer requirements. The other interesting aspect of Huawei’s product line is
its “embedded power”. This not only forms the core of its indoor/outdoor power systems,
but also provides individual embedded power systems where necessary. It employs a
standardized structural design which is extremely compact and supports a 19-inch rack or
cabinet installation. It is designed to adapt to a wide range of AC input voltage, with
intelligent battery management, remote monitoring, etc.
BEST PRACTICES RESEARCH
© Frost & Sullivan 2016 5 “We Accelerate Growth”
Product/Service Value
Huawei’s telecom power products represent the next generation of DC power products
that are not only simple, reliable and efficient, but are also deeply integrated with the
network equipment, making it a comprehensive end to end solution. Huawei’s products
are embedded with a wide range of features and functionalities that enhance end user
value multifold. Most of these features are unique in the industry, especially the intelligent
management functions which eliminate the need for routine maintenance work. For
instance, its status of health (SOH) management is a proactive function which provides
intelligent lifespan management of key power equipment (battery and Diesel Genset). This
self-diagnosis function delivers a highly efficient operation & maintenance management
for the end user and increases reliability by minimizing interruptions to the site network.
Its intelligent DC Transfer Switch (iDTS) system is equipped with an automatic voltage-
switching function for power supplies between the main battery and backup battery, thus
ensuring high reliability of the system power. MTS also provides an intelligent video
surveillance function to protect end users from any illegal breach. Its intelligent camera
installed on site automatically takes photographs when it detects a breach and
instantaneously streams them to its operational support system (OSS) center.
Product Positioning Advantage
The company’s technology excellence is complemented by its brilliant product positioning
strategy. It has taken meticulous efforts to understand the shortcomings and pain points
in the industry and developed smart and meaningful features that appeal to multiple end
user applications. Huawei’s telecom energy smart site solutions feature an innovative
Multiple Energy Input & Multiple Mode Output (MIMO) function which is based on its
proprietary “software defined power (SDP) technology”. The MIMO function provides the
end users with a high degree of flexibility to switch between multiple energy sources as
input; such as solar, grid, diesel generator, HVDC and battery. It also allows the end user
to access a combination of
difference energy sources at the
same time – for instance a
combination of solar and grid
power can be used
simultaneously. At the core of
the SDP technology is Huawei’s
highly advanced and innovative
“power rectifier” which is
capable of accessing multiple
energy sources at the same
time with just a minor
software/chip modification on the rectifier side. On the other hand, its multiple mode
output allows end users to choose from multiple output power ranges which include
BEST PRACTICES RESEARCH
© Frost & Sullivan 2016 6 “We Accelerate Growth”
-48Vdc, 24Vdc, 60Vdc, 225/400Vdc and 220Vac. Frost & Sullivan believes that Huawei’s
SDP technology will prove to be highly beneficial to the end users.
The company’s Hybrid Power System is another great example that proves its excellence
in enhancing customer value. It offers solar, diesel and grid hybrid power systems which
are based on its propietiery SolarMax, DieselMax and GridMax technologies respectively
and are highly suitable for sites in off-grid and poor-grid areas. These systems not only
maximize the power efficiency, but also optimize power supply cost. For instance, its
DieselMax technology enables the system to maximize fuel efficiency and reduces fuel
consumption by 25% when compared to similar solutions in the industry.
Industry Leading Design
The advanced and innovative features/functionalities incorporated in Huawei’s Telecom
Energy Smart Site Solutions (MTS) are a testament to the company’s technology
excellence and cutting edge product design. They also play a crucial role in placing the
company at the forefront of this highly competitive industry. Huawei’s Network Energy
department employs over 2000 R&D engineers and has 9 R&D centers across the world.
Its DC power division invests over $100M for R&D activities each year; this is an
astonishing feat that none of its competitors are able to replicate. This is also one of the
critical success factors for Huawei to stay ahead of its competition – investing heavily in
R&D, leading to impeccable product designs. Its products incorporate a modular design
even at a component level, to ensure the power system is more flexible and can be
smoothly upgraded. This modular design also significantly reduces the installation and
maintenance time. Its MTS is equipped with an intelligent DC Distribution Box (iDCDB)
which makes power distribution and management more convenient and efficient. It
achieves this through its innovative functions, such as adjustable capacity for each route,
remote route on/off control, hot-plugging and so on. From an efficiency perspective,
Huawei does not only focus on improving component level efficiency, but also has a major
focus on enhancing site-level energy efficiency. Its industry-leading high efficiency
rectifier used in its DC power systems offers an efficiency of up to 98%. Its solar module
and HVDC module offer an efficiency of 98.5% and 97.0% respectively, which are also
considered as one of the highest in the industry.
High Growth Potential
Huawei has been rapidly gaining market share in the global DC power market over the
past few years. The company’s growth markets are, Europe, Asia-Pacific, Middle East &
Africa and LATAM. The company not only emerged as a clear market leader in 2015 with a
sizable market share of 29.3%, it also secured a significant lead over its closest
competitor (a difference of over 7%). Frost & Sullivan firmly believes that Huawei’s
excellence in innovation and its ability to develop technically advanced DC power products
and solutions will further elevate its leadership position in the global market. The company
has a large and loyal customer base including industry leading telecom giants such as
BEST PRACTICES RESEARCH
© Frost & Sullivan 2016 7 “We Accelerate Growth”
British Telecom, China Mobile, Vodafone, Deutsche Telekom AG, Telefonica, America Movil
etc. The company has been growing its revenues at rate which is higher than the industry
average growth rate. It is Frost & Sullivan’s finding that Huawei’s commitment to its
customers combined with its excellent product portfolio will be a key driver for Huawei’s
growth over the coming years.
Conclusion
Huawei is committed to helping its customers reduce their total energy cost and improving
the operational efficiency with simple, efficient and reliable network energy solutions.
Frost & Sullivan’s analysis finds Huawei’s DC power products highly innovative and
revolutionary; they help end users save up to 90% of traditional O&M costs and offer an
overall network energy efficiency of up to 80%. The company’s commitment towards
driving forward the transformation of the telecom energy industry and building a green
and intelligent telecom energy network is highly commendable.
With its strong overall performance, Huawei has earned Frost & Sullivan’s 2016 Product
Leadership Award.
BEST PRACTICES RESEARCH
© Frost & Sullivan 2016 8 “We Accelerate Growth”
Significance of Product Leadership
Ultimately, growth in any organization depends upon customers purchasing from your
company, and then making the decision to return time and again. A comprehensive
product line, filled with high-quality, value-driven options, is the key to building an
engaged customer base. To achieve and maintain product excellence, an organization
must strive to be best-in-class in three key areas: understanding demand, nurturing the
brand, and differentiating from the competition.
Understanding Product Leadership
Demand forecasting, branding, and differentiation all play a critical role in finding growth
opportunities for your product line. This three-fold focus, however, must be complemented
by an equally rigorous focus on pursuing those opportunities to a best-in-class standard.
Customer communications, customer feedback, pricing, and competitor actions must all be
managed and monitored for ongoing success. If an organization can successfully parlay
product excellence into positive business impact, increased market share will inevitably
follow over time.
BEST PRACTICES RESEARCH
© Frost & Sullivan 2016 9 “We Accelerate Growth”
Key Benchmarking Criteria
For the Product Leadership Award, Frost & Sullivan analysts independently evaluated two
key factors—Product Family Attributes and Business Impact—according to the criteria
identified below.
Product Family Attributes
Criterion 1: Match to Needs
Criterion 2: Reliability and Quality
Criterion 3: Product/Service Value
Criterion 4: Positioning
Criterion 5: Design
Business Impact
Criterion 1: Financial Performance
Criterion 2: Customer Acquisition
Criterion 3: Operational Efficiency
Criterion 4: Growth Potential
Criterion 5: Human Capital
Best Practice Award Analysis for Huawei
Decision Support Scorecard
To support its evaluation of best practices across multiple business performance
categories, Frost & Sullivan employs a customized Decision Support Scorecard. This tool
allows our research and consulting teams to objectively analyze performance, according to
the key benchmarking criteria listed in the previous section, and to assign ratings on that
basis. The tool follows a 10-point scale that allows for nuances in performance evaluation;
ratings guidelines are illustrated below.
RATINGS GUIDELINES
The Decision Support Scorecard is organized by Product Family Attributes and Business
Impact (i.e., the overarching categories for all 10 benchmarking criteria; the definitions
for each criteria are provided beneath the scorecard). The research team confirms the
veracity of this weighted scorecard through sensitivity analysis, which confirms that small
changes to the ratings for a specific criterion do not lead to a significant change in the
overall relative rankings of the companies.
BEST PRACTICES RESEARCH
© Frost & Sullivan 2016 10 “We Accelerate Growth”
The results of this analysis are shown below. To remain unbiased and to protect the
interests of all organizations reviewed, we have chosen to refer to the other key players
as Competitor 2 and Competitor 3.
DECISION SUPPORT SCORECARD FOR PRODUCT LEADERSHIP AWARD
Measurement of 1–10 (1 = poor; 10 = excellent)
Product Leadership
Product Family
Attributes
Business
Impact Average Rating
Huawei 9.0 9.0 9.0
Competitor 2 7.0 6.0 6.5
Competitor 3 6.0 6.0 6.0
Product Family Attributes
Criterion 1: Match to Needs
Requirement: Customer needs directly influence and inspire the design and positioning of
the product family
Criterion 2: Reliability and Quality
Requirement: Products consistently meet or exceed customer expectations for
performance and length of service
Criterion 3: Product/Service Value
Requirement: Products or services offer the best value for the price, compared to similar
offerings in the market
Criterion 4: Positioning
Requirement: Products or services unique, unmet need that competitors cannot easily
replicate or replace
Criterion 5: Design
Requirement: The product features an innovative design, enhancing both visual appeal
and ease of use
Business Impact
Criterion 1: Financial Performance
Requirement: Strong overall financial performance in terms of revenues, revenue growth,
operating margin and other key financial metrics
Criterion 2: Customer Acquisition
Requirement: Product strength enables acquisition of new customers, even as it enhances
retention of current customers
Criterion 3: Operational Efficiency
Requirement: Staff is able to perform assigned tasks productively, quickly, and to a high
quality standard
BEST PRACTICES RESEARCH
© Frost & Sullivan 2016 11 “We Accelerate Growth”
Criterion 4: Growth Potential
Requirements: Product quality strengthens brand, reinforces customer loyalty and
enhances growth potential
Criterion 5: Human Capital
Requirement: Company culture is characterized by a strong commitment to product
quality and customer impact, which in turn enhances employee morale and retention
Decision Support Matrix
Once all companies have been evaluated according to the Decision Support Scorecard,
analysts can then position the candidates on the matrix shown below, enabling them to
visualize which companies are truly breakthrough and which ones are not yet operating at
best-in-class levels.
DECISION SUPPORT MATRIX FOR PRODUCT LEADERSHIP AWARD
High
Low
Low High
Bu
sin
ess I
mp
act
Product Family Attributes
Huawei
Competitor 2
Competitor 3
BEST PRACTICES RESEARCH
© Frost & Sullivan 2016 12 “We Accelerate Growth”
The Intersection between 360-Degree Research and Best
Practices Awards
Research Methodology
Frost & Sullivan’s 360-degree research
methodology represents the analytical
rigor of our research process. It offers a
360-degree-view of industry challenges,
trends, and issues by integrating all 7 of
Frost & Sullivan's research methodologies.
Too often, companies make important
growth decisions based on a narrow
understanding of their environment,
leading to errors of both omission and
commission. Successful growth strategies
are founded on a thorough understanding
of market, technical, economic, financial,
customer, best practices, and demographic
analyses. The integration of these research
disciplines into the 360-degree research
methodology provides an evaluation
platform for benchmarking industry players and for identifying those performing at best-
in-class levels.
360-DEGREE RESEARCH: SEEING ORDER IN
THE CHAOS
BEST PRACTICES RESEARCH
© Frost & Sullivan 2016 13 “We Accelerate Growth”
Best Practices Recognition: 10 Steps to Researching,
Identifying, and Recognizing Best Practices
Frost & Sullivan Awards follow a 10-step process to evaluate award candidates and assess
their fit with select best practice criteria. The reputation and integrity of the Awards are
based on close adherence to this process.
STEP OBJECTIVE KEY ACTIVITIES OUTPUT
1 Monitor, target, and screen
Identify award recipient candidates from around the globe
Conduct in-depth industry research
Identify emerging sectors Scan multiple geographies
Pipeline of candidates who potentially meet all best-practice criteria
2 Perform 360-degree research
Perform comprehensive, 360-degree research on all candidates in the pipeline
Interview thought leaders and industry practitioners
Assess candidates’ fit with best-practice criteria
Rank all candidates
Matrix positioning all candidates’ performance relative to one another
3
Invite thought leadership in best practices
Perform in-depth examination of all candidates
Confirm best-practice criteria Examine eligibility of all
candidates Identify any information gaps
Detailed profiles of all ranked candidates
4
Initiate research director review
Conduct an unbiased evaluation of all candidate profiles
Brainstorm ranking options Invite multiple perspectives
on candidates’ performance Update candidate profiles
Final prioritization of all eligible candidates and companion best-practice positioning paper
5
Assemble panel of industry experts
Present findings to an expert panel of industry thought leaders
Share findings Strengthen cases for
candidate eligibility Prioritize candidates
Refined list of prioritized award candidates
6
Conduct global industry review
Build consensus on award candidates’ eligibility
Hold global team meeting to review all candidates
Pressure-test fit with criteria Confirm inclusion of all
eligible candidates
Final list of eligible award candidates, representing success stories worldwide
7 Perform quality check
Develop official award consideration materials
Perform final performance benchmarking activities
Write nominations Perform quality review
High-quality, accurate, and creative presentation of nominees’ successes
8
Reconnect with panel of industry experts
Finalize the selection of the best-practice award recipient
Review analysis with panel Build consensus Select winner
Decision on which company performs best against all best-practice criteria
9 Communicate recognition
Inform award recipient of award recognition
Present award to the CEO Inspire the organization for
continued success Celebrate the recipient’s
performance
Announcement of award and plan for how recipient can use the award to enhance the brand
10 Take strategic action
Upon licensing, company may share award news with stakeholders and customers
Coordinate media outreach Design a marketing plan Assess award’s role in future
strategic planning
Widespread awareness of recipient’s award status among investors, media personnel, and employees
BEST PRACTICES RESEARCH
© Frost & Sullivan 2016 14 “We Accelerate Growth”
About Frost & Sullivan
Frost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth
and achieve best in class positions in growth, innovation and leadership. The company's
Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined
research and best practice models to drive the generation, evaluation and implementation
of powerful growth strategies. Frost & Sullivan leverages almost 50 years of experience in
partnering with Global 1000 companies, emerging businesses and the investment
community from 31 offices on six continents. To join our Growth Partnership, please visit
http://www.frost.com.