Huawei Yunhong Fangming: A small step for enterprises to go to the cloud and a big step for industrial clusters to jump.

2021 is the first year of the 14th Five-Year Plan. Facing the topic of "persisting in innovation-driven development, accelerating the construction of a new development pattern of modern industrial system, improving the quality of economic development and maintaining sustained and healthy economic development", how can new infrastructure service providers represented by cloud computing better play the role of technology platform, empower industrial economic innovation and promote regional sustainable development? How to improve enterprise efficiency, promote regional enterprise cooperation, and condense the innovative elements of enterprise development? Hong Fangming, president of Huawei Cloud China, expressed his views on the above issues in an interview with CBN.

From a manufacturing power to a "smart" manufacturing power.

After 2020, a year of unprecedented changes, how to deal with difficulties and how to transform and upgrade enterprises has become an urgent proposition. The country has started new infrastructure, and enterprises have accelerated the digital transformation. In the past year, we have seen a phenomenon that those enterprises that can actively embrace digitalization and actively invest in online have shown a good development trend as a whole; On the contrary, those enterprises that use traditional methods and have not changed the offline model are facing great challenges in terms of sales and supply chain as a whole. As people say, the SARS in 2003 accelerated the development of consumer Internet, and the sudden COVID-19 epidemic in 2020 will accelerate the process of enterprises accessing the cloud.

Today, China is changing from a manufacturing power to a "smart" manufacturing power. Enterprises need to transform and upgrade from R&D, manufacturing, supply chain, marketing and service through digital means and digital empowerment to change the current situation that they only focus on the manufacturing links with weak competitiveness. This is also the key to how to change the current situation and take the next step as the economic subject in the current economic development situation. By visiting more than 30 provinces and cities in China in 2020, we found that the technologies converged on the cloud are bringing great changes to industry and society.

Urban industrial clusters need to move from small, scattered and low-energy to high, refined and cutting-edge

The development stage and state of industrial clusters in a place determines the activity of economic development in a region, and also reflects the situation of people’s livelihood and employment. It can be said that regional industrial clusters determine the development, people’s livelihood and employment of a region and are a very important development index.

At a meeting held by Huawei Cloud in early January, 2020, the director of a certain industrial and information bureau said that although the local area was among the top 100 industrial areas in China, the external challenges in the past year made him deeply feel the difficulties of the whole manufacturing industry: the cost of factory land has been rising, the export situation has changed, the industrial structure is in urgent need of restructuring, and entrepreneurs have also expressed their urgent desire for transformation and upgrading.

Due to the limitation of forming conditions, China’s industrial clusters focus on traditional processing fields and develop in the form of small workshops, lacking scientific and technological innovation. At present, traditional industrial clusters are facing challenges such as the increase of labor costs, the increase of social costs, and the shortage of talents. It is impossible to achieve sustainable development by relying on simple replication for scale expansion. Industrial clusters need to be small, scattered and low-energy, and move towards high, sophisticated and cutting-edge development mode. How to supplement the capabilities of R&D, market, supply chain and service, realize the extension of supply chain, and integrate upstream and downstream supply chains to obtain higher profits is the core demand of industrial cluster development.

There is no denying that many excellent enterprises in our industrial cluster have done very well and reached a very top position in the world, but a considerable number of small and medium-sized enterprises have not reached this level. Evaluating the activity of an economy does not depend on the number of large enterprises, but more importantly, on the activity of thousands of small and medium-sized enterprises, which is a key response for the country to solve the employment problem and enhance the overall economic activity. The cloud platform, which brings together various technologies and ecology, just provides the technical and commercial means needed for change.

From simple connection to deep empowerment

Huawei has accumulated rich experience in the field of electronic information manufacturing in the past 30 years. Whether it is from supply chain R&D, marketing and service, or from the technology and marketing capabilities deposited by the industry, Huawei hopes to empower all industries and society through the cloud, and realize the company vision of bringing the digital world to everyone, every family and every organization and building a smart world with everything connected.

In the process of business expansion, Huawei Cloud has learned about the characteristics of China’s economy and industrial clusters, and put forward the concept of "industrial cloud", which is an urban industrial empowerment platform based on cloud infrastructure and integrating industrial ecological resources to provide technology, solutions and industrial practice services, and provides a core driving force for promoting the integration of urban production and output, industrial innovation and upgrading, and reshaping the new industrial pattern. In essence, the demand for informationization and digitalization in today’s economic development has spawned the concept and model of industrial cloud, and at the same time, industrial cloud has also responded to the question of where the industry will go and how to transform and upgrade in the process of supply and marketing.

Different from the industrial internet, it focuses on connecting various data and production materials of enterprises, thus providing enterprises with kinetic energy for transformation and upgrading; In addition to the connection function, the industrial cloud also provides enterprises with industrial empowerment and rich offline services, which includes the best experience of the industry and combines a variety of advanced technical means.

Manufacturing industry can’t be defined simply by the production process. R&D and sales are actually the key links to serve the manufacturing industry. Only an enterprise system with R&D, sales, supply, production and service can be truly modern manufacturing industry. However, born out of domestic manufacturing enterprises such as processing materials, it is in urgent need of transformation to modern manufacturing. Take the United States as an example, the manufacturing industry in the United States accounts for a relatively low proportion, but if we look at the entire GDP of the United States, we will find that a very large part of industries serve the manufacturing industry, and the proportion of such manufacturing service industries in the overall manufacturing industry is about 50%. If China wants to move from a big manufacturing country to a smart one, it must work hard on it. Facing the current situation that the concept of industrial upgrading in China is unclear, and "hard" is emphasized over "soft", it is not simply to provide a cold technology, but also to empower it. A team should serve the industry and teach these traditional manufacturing industries how to achieve the next leap.

Huawei’s own industry is relatively wide, from serving operators, to serving government and enterprises, and then to consumer BG. You can think that Huawei is a traditional manufacturing industry, a high-tech enterprise and a retail enterprise. Therefore, Huawei Cloud has rich accumulation in the above areas, including technology, marketing, supply chain and service. Huawei Cloud will export these capabilities in the form of industrial cloud to empower the industry, which is also the biggest value and difference of Huawei Cloud.

A small step for enterprises to go to the cloud and a big step for industrial clusters to jump.

At present, Huawei Cloud has landed in more than 120 innovation centers and industrial cluster bases across the country, and has joined more than 300 partners including MES, CAD, supply chain management, production management and software suppliers to provide digital transformation services for 17,000 enterprises.

During the COVID-19 epidemic, an electronic information enterprise in Dongguan, based on Huawei’s cloud industry Internet platform FusionPlant, built a big data platform to help it realize orderly resumption of work and production, ensuring the occurrence of zero epidemic cases. At the same time, the efficient and convenient management brought by the visualization of the big data platform also solved the remote control problem that many foreign employees could not return to work in many process production links, and managed the production quality control of the entire production line. This is a very typical use case for an enterprise.

Facing the characteristics of China’s industrial economy and the key nodes that the industry faces, how can its next leap be realized? For each industry, where will the future go and where will the next jump be? This is the most concerned issue for the upstream and downstream industrial chains of urban industrial clusters.

Automobile industry, ICT industry, medical equipment and medicine industry are the three pillar industries of the global economy. In the automobile industry, Huawei Car BU proposes to help car companies "build and sell good cars", and use its own capabilities in research and development, manufacturing and marketing to drive the development of upstream and downstream industrial chains of intelligent networked vehicles, and do some exploration and innovation work around automobile companies to help car companies transform and upgrade from the traditional fuel vehicle industry to the electric vehicle industry; In the electronic information industry, it is facing the pressure from low-end to high-end. Huawei helps the electronic information industry to achieve the next leap through its own practice; In the material and medicine industry, many researches at present depend on a lot of experimental work in the laboratory, which is time-consuming and labor-intensive. Huawei Cloud uses huge computing and IOT capabilities, combined with previous research and development results, to enhance the whole process of drug and material research and development.

Empowering the transformation and upgrading with the industrial cloud, through the continuous progress of technology, the continuous development of industry and the continuous improvement of partner capabilities, it provides the kinetic energy for the industry to upgrade and jump, and tamps the "black land" of the intelligent world. We should bring forth new talents, keep moving forward, drive China enterprises to take a small step in the cloud, lead the industrial upgrading, realize a big leap in the industrial cluster of China, and truly realize a leap in the industry!

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