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Formulating Technological Innovation Strategy
Application of Huawei Technological Co., Ltd
[pic]
4/25/2010

FULL NAME STUDENT NUMBER

QIAN HUANG M00227215
YIN XIN M00175390
SONGMAO WU M00175404

MODULE LEADER: HONG WOO
MODULE NAME: MGT3130 (09/10) INNOVATON AND TECHNOLOGY MANAGEMENT Table of contents
1. Abstract……………………………………………………………….4p 2. Introduction………………………………………………………..4-5p 3. Methodology…………………………………………………………5p 4. Technological Innovation strategy Formulation…………………...6p 4.1 Defining Huawei’s strategic direction………………………………....6p 4.1.1 Current position assessment………………………………………………………………….6-9p 4.1.2 Strategic direction……………………………………………………………………………9-10p 4.2 Choosing Innovation projects……………………………………….....11p 4.2.1 Net profits of Huawei five-year financial statements………………………………….11-12p 4.2.2 Utilization of screening questions………………………………………………………..12-15p 4.3 Collaboration strategies……………………………………………….15p 4.3.1 Reasons for going solo……………………………………………………………………15-16p 4.3.2 Main forms of Huawei’s Collaboration arrangements and advantages…………..16-17p 4.4 Protecting Innovation…………………………………………………18p 4.4.1 Ptents…………………………………………………………………………………………...18p 4.4.2 Trade secrets………………………………………………………………………………..18-19p 5. Data and Findings…………………………………………….20-22p 6. Conclusions and Limitations………………………………....22-23p 7. References………………………………………………….....24-25p 8. Appendix………………………………………………………....26p

Table of figures
Figure 1: Five forces model analysis for Global communications equipment market in 2008……...7p Figure 2: Divers of Rivalry in 2008…………………………………………………………………7p Figure 3: Huawei’s ABC Strategy………………………………………………………………….10p Figure 4: Total operating expenses and other income………………………………………………11p Figure 5: Inventories………………………………………………………………………………..13p Figure 5: Market shift………………………………………………………………………………14p Figure 6: China communications equipment Market value forecast from 2008-2-13……………..14p

Table of Data
Data 1: Five-year fiscal highlights…………………………………………………………………20p Data 2: Operating cash flow……………………………………………………………………….21p

1. ABSTRACT
With rapid changes in the business context, technology has been an important part in the development of society. Technology has a significant influence on the development of industry and business, with the waves of technological development (Look at Appendix)(Dodgson, Gann & Salter,2008). From the waves, we can understand that information and communication technology is dominant in current technology business. However, an organization without strategic innovations would not succeed in today’s fierce markets, because of increasingly changing business and globalization. Effective Technological innovation strategy can help a firm to create long-term competitive advantages and grasp new opportunities with strategic-fit (Dodgson, Gann & Salter,2008). In addition, in global communication market, Asia-Pacific area accounts for 51.7 percent market value share, compared with Europe and Americans (Datamonitor, 2009). And the region of China, in which Huawei Technologies is one of telecommunications equipment and solutions leading providers, accounts for 63.5 percent share in Asia-Pacific communications equipment market (Datamonitor, 2009). Form this paper, it can be indentified that Huawei Technologies have carried out customer-centric innovation strategy.

2. INTRODUCTION
In modern business society, technological innovation strategy has been a critical part which would affect an organization’s success significantly. To formulate an effective innovation strategy, we will mainly examine four relative aspects which are defining the organization’s strategic direction, choosing innovation projects, collaboration strategies and protecting innovation.

This paper is based on the research and analysis of Huawei Technologies Co., Ltd. to investigate the process of technological innovation strategy formulation, since...
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