Li Yinan: The Man Who Copied The Myth.

On 2003 08, 20, the Beijing harbour network's young commander and his old Ren Zhengfei were very different in many ways, but they were surprisingly similar in their low-key ways of doing things.

And this can also be used to describe the enterprises that both sides are at the helm.

Just as we have never been able to touch the clear vein of HUAWEI, the port network has always impressed the outside world as a "diver".

Li Yinan and the galloping harbor are a dangerous "diver".

Since the establishment of the harbour network in 2000, the annual sales volume of the company has climbed steadily: 76 million in 2000, 147 million in 2001, 410 million in 2002, and 1 billion 200 million yuan in 2003.

This aggressive momentum is also reflected in the company boss Li Yinan who just passed away.

The junior class of Huazhong University of science and technology was promoted to the post of engineer of HUAWEI for two days, promoted to the chief engineer half a month, and promoted to the deputy general manager of the central research department half a year. He was promoted to the chief engineer / Central Research Department of HUAWEI company for two years, and sat on the throne of vice president of HUAWEI company at the age of 27. Li Yinan's key words are legendary.

In 2000, when Li Yinan got the dividend of HUAWEI's last about 10000000 yuan, he went up to the threshold of men's 30 when he built up the harbour network in the north.

The sharp investors, of course, did not let the legendary Young Marshal pass.

In September of 2001, UBS Huabao investment company Warburg Pincus and Shanghai industrial dragon group venture capital respectively invested 16 million and 3 million US dollars to the harbour network of only more than 100 people at that time, so that Li Yinan could take care of them.

Less than a year later, in May 2002, Huaping and dragon group ventures did not hesitate to invest $37 million and $5 million respectively in the port network. At the same time, they also provided $35 million for bank loans.

Because in 2001, when the first capital was in place, that is, the second year of the company's establishment, the port network realized a total profit of 2 million 410 thousand, which enabled the capital to find excitement, and once again stimulated the development impulse of the rookie company.

"The Hong Kong port network copied the entrepreneurial myth of HUAWEI that year". A HUAWEI faction entrepreneur is an evaluation of the success of the harbour network.

From the initial 20 thousand yuan registered capital to the 25 billion 500 million yuan sales in 2001, HUAWEI only spent 14 years.

The success of HUAWEI's structural adjustment of the birth product, HUAWEI, is half a day, and the half comes from the legendary entrepreneurial driving ability of entrepreneur Ren Zhengfei.

In 90s of last century, the state finance began to pour funds into the construction of basic telecommunications network, and the huge market opened with it brought HUAWEI's narrowband exchange network equipment rookie to the fast lane.

The same goes with the so-called "Great China" Legion later, and then the difference between speed and trend is mainly attributed to the differences in the growth power of their respective enterprises.

The general manager of an enterprise consulting company believes that the rapid growth of HUAWEI is not only driven by the market itself, but mainly from the entrepreneurial passion that employees always maintain, which is exactly what Ren Zhengfei injected and needed.

"Generally speaking, HUAWEI has only two years to grow for a new person". Since then, the choice before everyone is "Up or Out".

Therefore, HUAWEI needs to constantly exchange blood every year. It constantly stimulates the upward growth of the enterprise through the entrepreneurial impulse of the new person and the resulting hot blood environment.

On the other hand, this kind of continuous stimulation comes from Ren Zhengfei's highly respected "employee stock ownership system", and obtains personal loyalty and ownership through interest bundling, so as to maximize employee's subjective initiative.

HUAWEI has been successful and has been charging until 2001.

In 2002, sales of HUAWEI totaled 22 billion yuan, down 3 billion 500 million yuan from 2001.

Global Telecom is encountering a cold current. Domestic operators reduce investment and the objective environment is to blame. On the other hand, the miscalculation of CDMA and the lost opportunity of PHS have to let HUAWEI reflect on itself: in good times and in adverse circumstances, it is only external cause that decides the fate of an enterprise.

The old HUAWEI of the consulting company believes that the HUAWEI people are no longer the HUAWEI people in the past. "Many people choose HUAWEI with high salary and lack of passion for struggle". The latter is the main reason for the rapid development of the early HUAWEI company.

He believes that the reason for this phenomenon is the pformation bias of HUAWEI company from "rule by man" to "system construction".

On the one hand, Ren Zhengfei's personal charisma is indeed high and has been fully proved that the injection of employees' enthusiasm has indeed made a dynamic high growth enterprise, and the enterprises looking for long-term development should not be motivated solely by "personal charm" and "passion". On the other hand, the employee stock ownership can play an incentive and buy role, and the complex ownership structure of enterprises will inevitably become the inevitable development of the company.

HUAWEI, of course, did not avoid these contradictions.

In order to standardize enterprise structure, HUAWEI started its first ESOP system in 1997. After that, it planned three or four unallocated profits, capital raising and equity change campaigns, trying to clarify the complex property relations within the company.

Many people believe that this is one of the reasons for Li Yinan's "leaving" business. In 2000, the birth of the Hong Kong Bay network was the natural deliveries of HUAWEI company in structural adjustment.

Li Yinan has no luck in Ren Zhengfei's life, and happened to catch up with the big communications market in.

The "big China" relies on the development of the SPC exchange market, which has gradually shrunk after the completion of the national "eight vertical and eight horizontal" basic communications main roads. The original suppliers of the fixed network switching providers are also few and far behind. It is destined that the harbor can not take the old road of HUAWEI.

In fact, this is indeed one of the main flows of the telecommunications equipment market in recent years, although the overall scale is already less than that year, and the main territory has been reclaimed and occupied by traditional giants such as HUAWEI and CISCO.

Li Yinan used HUAWEI.

The port network has put the hat of HUAWEI's network equipment distributor on the head and started a business trip.

The advantage of such a cut is that "on the one hand, we can get a clear understanding of the laws of marketing and get through all kinds of social relations in a relatively short period of time. On the other hand, we can get a lot of primitive accumulation because of the low entry threshold."

Everything is handled by the authentic HUAWEI gang.

In addition to Li Yinan, Peng Song, the vice president of port network, was previously the vice president of HUAWEI's domestic market. The new vice president of the company, Lu Xin, is Hua Yuan's general manager of technical data communications department.

In addition, the core team of the company's development system and sales system is basically based on HUAWEI employees.

However, Li Yinan, who is known as HUAWEI CTO, has never been willing to stop in the agent market.

Off the shelf technology, ready developers, port network product research and development work to keep up with the rapid development of its own brand products.

In the excitement of the harbour, the company won the 30 million yuan order in a bid for a project in Ningbo Netcom.

Sai Di consulting network communications department Li Hui said that in the field of broadband IP products, the port network current market share is around 7-8%, while HUAWEI is also 10-15%, and the two have formed "comprehensive competition".

In fact, the main focus of HUAWEI's current competition is mainly to compete with CISCO in the middle and high-end market. The competition pressure from the other side lets it have no time to attend to it, thus leaving gaps in the small items and part of the low-end products, so that the harbor network has been drilled in and has come down.

Li Yinan has naturally looked at these vacancies.

This can be seen in the channel construction of the harbour network.

In the HUAWEI internal entrepreneurship plan, the company's outsourced sales area is generally the private network users whose market is fragmented and riskier, and the large quality customers like telecom operators are firmly in their hands, which provides a good opportunity for new entrants to open up the market.

At the very beginning, the port network focused its attention on the huge potential users but not fully developed education, e-government and other industry users, rather than the big telecom customers who had already competed with the competition.

In the field of industry channel construction, through the subdivision of industries, the Hong Kong Gulf network and various industry agents launched in-depth strategic cooperation, shared investment and shared results, and soon established a solid base in these unpopular industries.

At present, these industries include government, education, finance, health care, electricity, factories and mines.

Li Hui, a consultant at Sai Di, believes that the amount of equipment purchased from the telecommunications industry has shown a downward trend. The information process of other industries will play a more important role in the telecommunications equipment market.

Statistics show that in 2001, the amount of procurement in the telecommunications sector accounted for 40.50% of the national network equipment market, while in 2002 it dropped to 30.10%. The corresponding proportion of the education industry rose from 11.30% in 2001 to 21% in 2002.

Analysts believe that the generation of Hong Kong Bay network is actually the inevitable result of the gradual subdivision of China's network equipment and equipment market, and the survival state reflects the inevitable trend that the market is gradually going deep into the industry.