Next Gen Digital Platforms Drive The Long Awaited Business Agility

The ‘platform’ metaphor has long been used in a variety of ways. In the context of platform economy, 21st century usage of the word “platform” sometimes refers solely to online matchmakers – such as Uber, Airbnb (Wikipedia)

The platform concept is approached from different angles. It comes either as a technology platform that plays the role of enabler. When the platform is established from the economic perspective, it causes market disruption and establishes new business models, and brings major benefits to the consumers.

There are at least five major business areas that can experience digital transformation through the use of platforms, a combination of data and technology: Business models, Business strategy, Workforce, Customer interactions & Business operations.

Industry Trends and Revolution in the Market

Why platforms are so hot, and all of a sudden this seems to be the solution for all integration and collaboration problems, skills shortage and lack of business agility.

Emerging technology platforms drive business innovation (Source: Accenture) 

Industries admire the value of digital platform; it provides agile, efficient, best user experience and business model innovation.

Three major areas drive companies to a platform approach:
Platform Revolution Model
Differentiates new business models (Facebook, Uber, Alibaba, Amazon, Apple etc) from traditional business models.
Digital Transformation Relies on a Digital Platform Strategy
Pemex on its “Digital Hub”, Volkswagen on “One Digital Platform”
Customer Requirements
They want a partner with ability on top-layer design, implementation, long-term evolution, technology integration and business pull-through.

The Rise of Digital Platforms

Early-stage platforms were often “two-sided,” connecting buyers and sellers for simple transactions. We now see the creation of multi-sided platforms that bring together consumers, service providers, technology providers and stakeholders to facilitate value exchange as part of a larger ecosystem.

Born digital platform companies with the likes of Amazon and Uber have built a multi-billion-dollar business at a speed never-before-seen in the corporate world, disrupting industry after industry with their platform business models and challenging some of the long-established companies in their field. We witness a fundamental shift in how business and technology are shaping up. The secret to success has been an ability to execute on platform-based digital businesses backed by building unique technology platforms that are intelligent, open, connected and scalable.

Type of Players in the Market

Last year, we had to opportunity to be invited by the major players in the digital platform scene. Where we saw most product companies all approach it related to their market offering and position, and share the same kind of integrations and enablement. But the one company that surprised us the most was Huawei. But first let’s share some insights on what we learned last year.

Huawei, an innovative company investing billions of dollars in research and development, and in my opinion to be looked at as the platform of platforms.

What makes Huawei Digital Platform Unique: “Digital Platform + X + Ecosystem”

Huawei started in telecom and consumer business hardware, but now have a complete platform offering. Providing in-house designed and engineered hardware, giving them a top competitive advantage, looked at from the silicon side.

Let’s continue the overview, and give some background where the platform market is and why Huawei is a special in its own way.

Huawei provides leading-edge digital technologies and has a long tradition of long-term continuous R&D investment, combined with a strong global execution capability and customer-centric orientation, Huawei is one of the leaders in the digital platform playground.
Its platform is able to integrate 5G, IoT, Edge Computing, Cloud Computing, Video, AI and Big Data, and brings agility, efficiency, and customer experience, hand in hand with business model innovation.

Huawei leads in building a digital technology platform (The Platform of (other) Platforms) and is therefore already a long term strategic partner for those enterprises who build a digital platform.

Characteristics of Huawei’s Digital Platform

1. Huawei Digital Platform is a Full-Stack Digital Platform. This Digital Platforms focus on both PaaS and IaaS layer. Huawei believes no single technology is able to governce the digital transformation. Instead it must combine IT (e.g. Cloud, Video, IDN, Big Data, Security) and CT’s ability (e.g 5G, IoT and ICP)
   
2. Different industries might need different kinds of technologies for their digital transformation. Huawei’s Digital Platform supports the digital transformation of industries at different stages. Based on current resources and customer requirements, Huawei now supports the government, transportation, finance, energy, and manufacturing industries and other industries.
   
3. Vendor-lock technologies usually hinder enterprise in digital transformation. Open technologies and ecosystem could help not only lower down the cost of transformation but also allows more innovation and more business opportunities. (Considering the Android ecosystem)
   
4. This overview distinguishes the ability of Huawei in PaaS layer. At Huawei Connect, Huawei unveiled an AI chip that will power its servers, in a push to boost its nascent cloud-computing business. The new 7 nanometer Ascend 910 chipset that Huawei unveiled at the conference will service this unit and is meant for data centers that crunch mountains of data. Integrated Communications Platform (ICP) is a kind of converged command & control center solution provides various open interfaces. Using these open interfaces, this solution can interconnect with lots of service systems, such first aid, video surveillance, wireless communication, public switched telephone network, and computer-assisted dispatch.
   

What you should look for in your platform partner

Technologies Innovation
Look for a partner that is a frontrunner in new evolutions, with a long term investment strategy in compressive technologies. This visionary approach shows off from a leadership in technologies, and makes sure this partner will keep you on the edge of innovation and ahead of your competition.

Global Execution
Think global act local, is not just a metaphor, but makes sure the partner you choose for has the right capabilities to adapt to local culture and regulation. Culture and regulation can be a major obstruction, causing unwanted delays on implementation and execution in implementing new technologies. Therefore a partner with a global presence and execution ability is of the uttermost importance.

Open Ecosystem and Cooperation
Long time gone are the days of the software and hardware giants, just moving boxes, with a pure technology perspective, without contributing any real business acumen. Still these companies exist. But the partner you are looking for should provide an open ecosystem, as a matter of speak; they should be your center of gravity, allowing to connect and interact with other partners, technologies, methodologies. A partner should be working together with you, to contribute to your success, but where as well you can bring added value to their business. Simply a win-win cooperation.

Visionary and Development
We can’t emphasize enough, and speak from own experience, you should find that partner that is a frontrunner and is a visionary amongst its peers in the market. The visionary attitude should go along with a long term investment in the industry and technology, and the ability to execute. A Vision without the capabilities to execute leaves you building castles in the sky.

Facts and Figures

To be more tangible, we looked at 4 pillars where Huawei differentiates itself.

Technologies Innovation

Technology leadership:

• Industry-leading Cloud Campus Solution, All-Flash, 5G, IoT, Video Cloud technologies etc.
• Full-stack and Full-scene AI technologies

Comprehensive Technologies:

• All-stack, Cloud-Based ICT Infrastructure
• Five key Competency synergies: video cloud, IoT, AI / Big Data, Integrated communications System (ICP) and Security
• Industry enabling platform for unified data and business services (e.g. Smart City OS)

Long-Term Technical Inputs:

• Drive innovation with research and development investment that lasts more than 10% per annum
• More than 70,000 patents authorized, more than 90% of which are invention-based patents

Global Execution

Customer-Centric:

• Not over commitment. Once commitment made, commitment will be fulfilled.
• Deep understanding of industry and customer needs. Strong ability in the execution and implementation of solutions to help customers succeed

Long-Term Rich Experience In The Industry:

• 211 Fortune Global Top 500 customers and partners choose Huawei as a partner in digital transformation
• Various industry-leading cases that Huawei helps enterprise in digital transformation

Continuous Global Localization Service Capabilities:

• Products and Solutions services more than 170 countries and regions worldwide

Trustable: Can be Trusted:

• Comply with business boundary and principles, adhere to the spirit of contract, focus on privacy protection

Open ecosystem and cooperation

Win-Win attitude with Cooperations, An Open, Cooperative, and Mutually Beneficial Ecosystem:

• More than 20,000 partners, including more than 1000 partner solutions partners, more than 3,000 service partners, channel partners about 16,000.
• Long-term adherence to the interests of sharing, and firmly implement a fair, impartial, sunny, transparent partner policy, profit sharing
• 6 Global Ecosystem building: Channel partners, solution partners, service partners, Talent alliances, Investment and financing partners, and social partners

Visionary and Development

Long term investment in industry and ICT by Joint innovation and Continuous Exploration:

• Global OpenLab Construction and investment
• Innovation Case: Shenzhen Airport, Vanke Group’s Campus, China Merchants Bank

Actively Participating In Industry / Industry Standards Development:

• Industry: Broadband Trucking solution, etc.
• Industry Standard: The author of China Smart City Standard Development. Leading the PLC-IoT Standard and its ecosystem, Railway Cloud standardization

Long-term adherence to industry input, in-depth understanding of the Industry:

• Smart City: The central nervous system; Car Companies: not manufacturers, but travel service providers, etc.
• Industry high-end professional talent recruitment, Building Industry Solutions Team

CSR program:

• A full coaching program for enabling Local ICT talent development

In Conclusion

Today most Fortune 100 companies are platform companies. Industries admire the value of digital platform because it provides agile, efficient, best user experience and differentiates new business model from traditional business models. Digital Transformation could not rely on a single technology but a combination of IT and CT technologies. As this transformation is usually a long journey, enterprises need to choose a partner with ability on top-layer design, implementation, long-term evolution, technology integration and business pull-through.