In the process of enterprise development, R&D management has always been a key factor in determining whether an enterprise can stand out from the competition. As a leading global technology company, Huawei’s R&D management practices have attracted much attention. This article will provide an in-depth analysis of Huawei’s IPD (Integrated Product Development) system, which is a set of R&D management models that Huawei has introduced from IBM at a cost of billions of tuition fees and gradually localized and innovated.
When the scale of the enterprise is getting bigger and bigger,The fault between strategy and execution is becoming more and more obvious。
In 1997, Huawei was in the “The crossroads of growth”。 Many challenges such as long product development cycles and poor collaboration between various departments have put more and more pressure on product development, and R&D and delivery at that timeIt mainly relies on individuals with outstanding abilities and the adaptation of the execution process。
The repeated appearance of project delays and quality problems is like a scar on the face of an enterprise, which can never be covered. The seemingly stable R&D process system is actually in jeopardy.So what are the characteristics of this multi-billion dollar change?？
1. Huawei: Either change or slide into the abyss
In 1997, when Ren Zhengfei saw the standardized product development process at IBM headquarters, the Chinese entrepreneur was keenly aware that in the competition and growth of the industry, Huawei needed not only technological breakthroughs, but also a profound and thorough management revolution. As a result, Huawei embarked on the road of learning IPD (Integrated Product Development) from IBM.
“First rigid, then solidified, and then optimized“It is the underlying logic of Huawei’s IPD landing,”Pilot first, and then gradually promoteIt is the basic means of landing.
In the early days of introduction, Huawei’s first pilot product of IPD, VMSC6.0, was also piloted under the guidance of IBM consultants. After a year of piloting, Huawei’s product development cycle has also been shortened by about 50% after implementing IPD in many products.
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During the pilot process, Huawei continuously summarized lessons learned and optimized and improved the IPD process to make it more in line with Huawei’s business practices.
Nowadays, Huawei’s IPD system has long surpassed IBM’s original framework in the gradual iteration, and is deeply implanted in the “Customer-centricThe gene. ThisThe leap of green out of blue is the best footnote to localized innovation。
2. The core competitiveness of IPD
The most effective management is to let ordinary people do extraordinary things. The core of IPD is to transform individual ability into organizational ability through the dual innovation of organization and process, and no longer rely on personal heroism.
1. Organization: break down departmental barriers and promote collaborative cooperation
“One chopstick is easy to break, and ten chopsticks are held into a ball。 “In traditional functional organizations, R&D personnel often fall into technical self-indulgence, while marketing personnel suffer from unresponsive needs, and cross-departmental collaboration is difficult.
IPD uses the PDT (Product Development Team) team to build an “iron triangle”, which allows PDT managers to have “virtual decision-making power” and allocate resources across departments by creating a “strong matrix” team collaboration model. This “project-based + matrix” structure enables information to be transmitted quickly and accurately within the organization, reducing communication costs and decision-making errors.
Correspondingly, this “Let the person who hears the cannon command the battleThe mechanism will also increase organizational agility by several orders of magnitude.
2. Process: Put uncertainty into the framework
In terms of product development process, “Process is greater than power”。
IPD divides product development into six stages: concept, planning, development, validation, release, and life cycle. Each stage has clear goals and tasks, and ensures the quality and progress of product development through strict review and decision-making mechanisms.
This kind of “Put uncertainty into the process frameworkto minimize the potential for product development deviations:
- For example, in the concept stage, the focus is on evaluating market opportunities, clarifying the market positioning and customer needs of the product.Develop product concepts and preliminary business plans；
- The planning stage is based on the results of the concept stage to further refine the product requirements.Develop detailed product development plans, budgets, and resource requirements；
- The development stage is the specific design and implementation process of the product, and the R&D team carries out the product according to the planTechnology research and development and function implementation；
- The validation phase is carried out on the developed productFully tested and validatedto ensure that the products meet the quality standards and customer needs;
- The release phase is responsibleLaunch, promotion and delivery of productsJob;
- In the product life cycle, continue to pay attention to the market performance of the product,Product optimization and upgrade based on market feedbackuntil the product is delisted.
In terms of decision-making mechanism, IPD has set up key decision-making review points for each stage, and the IPMT (Integrated Portfolio Management Team) composed of the company’s senior leaders is responsible for the decision-making at each stage, comprehensively considering the company’s overall strategy and project business value, and has the final decision-making power over each decision-making review point.
Common decision review points include:
(1) Conceptual Decision Review Point (CDCP)
stage positioning: Located at the end of the concept stage, decide whether to enter the planning stage.
Evaluate the heart：
- Market demand: Is customer demand and market opportunity clear? Does the product definition match the market objectives?
- Technical feasibility: Are there solutions for key technologies? Is it necessary to develop in advance (e.g. pre-research projects)?
- Business value: Is the estimated market size, competitive analysis, and profit model reasonable? Is the financial return (e.g., ROI, NPV) up to standard?
Preliminary plan: Is the project cycle and resource requirements (manpower, budget) feasible?
Output decisions：
- Pass: Approval to enter the planning phase to initiate detailed product planning.
- Termination: The project does not align with the company’s strategy or business goals, and the investment is stopped.
- Rectification: Re-evaluation after requiring supplementary information or adjustment of the plan.
(2) Planning Decision Review Point (PDCP)
stage positioning: At the end of the planning phase, decide whether to enter the development phase.
Evaluate the heart：
- Detailed plan: Are the product specifications, technical routes, and architecture design clear? Are technical risks identified and avoided?
- Project plan: Is the development plan, milestones, resource allocation (team, budget, vendor) granular and actionable?
- Supply chain and manufacturing: Are production processes, procurement strategies, capacity planning ready?
- Risk management: Is there a response plan for the identified risks (technology, market, schedule, etc.)?
Output decisions：
- Pass: Approve the development stage, sort out the requirements and plans, and start the detailed development work.
- Termination: The project is terminated due to high risk or unfeasible goals.
- Revise: Request re-evaluation after the optimization plan (e.g., adjustment of scope, resources, or time).
(3) Availability Decision Review Point (ADCP, or Releaseable Decision Review)
stage positioning: After the development stage is completed and the testing and verification stages are completed, it is decided whether to launch or not.
Evaluate the heart：
- Product Ready: Is the product tested and validated? Does the quality meet internal and customer standards?
- Ready to go: Is the go-to-market plan, sales channels, pricing strategy, customer training ready?
- Supply chain readiness: Does mass production capacity and inventory strategy meet the demand for listing?
- Financial confirmation: Is costing, sales forecasting, and fund recovery plan feasible?
Output decisions：
- Passed: Approve the product to the market, start mass production and market launch.
- Termination: The product has major defects or immature market conditions, and the listing is suspended.
- Rectification: Requiring re-evaluation after resolving remaining issues (such as quality defects, supply chain bottlenecks).
(4) Life cycle decision review point (LDCP)
stage positioning: After the product is launched, it is reviewed during its life cycle (e.g., before delisting).
Evaluate the heart：
- Market performance: Is sales, market share, customer feedback meeting expectations?
- Product optimization: Is it necessary to iterate on upgrades (e.g., feature enhancements, cost optimization)?
- Delisting Strategy: Is delisting planned due to obsolete technology, shrinking markets, or declining profits? Is the plan for follow-up maintenance or replacement products clear?
Output decisions：
- Continue: Maintain existing products, continue to optimize or expand the market.
- Iterate: Initiate next-generation product development or upgrade existing products.
- Delisting: Develop a delisting plan, stop production, and dispose of inventory.
In this process, the team can identify technical, market, and financial risks in advance, avoid wasting resources on unfeasible projects, and ensure that the project is aligned with the company’s long-term strategy and prioritize high-value, high-return products.
In terms of process, a standardized review process can reduce decision-making delays and ultimately drive the productFrom “technical success” to “commercial success”。
3. Tools empower digital infrastructure
“If you want to do a good job, you must first sharpen your tools.” In the process of IPD implementation, a very important point is the support of IT tools for the process. In the process of Huawei’s IPD implementation, it also uses IT tools to adapt to the process, shifting the process that was originally driven by humans to tool-driven to achieve technical synergy.
1. Product life cycle tools
Many enterprises ignore the auxiliary role of tools in the process of landing. whereasThe tool can be used to engage in post-fire fighting to proactive prevention through standardized processes。
In life cycle management tools such as Zen Dao, the process of the whole life cycle such as product market management, demand management, design and development to listing and sales, delisting and maintenance can be solidified.Control the hidden dangers of direction and progress risks in the bud, effectively improving R&D efficiency and product competitiveness.
2. New technology trends
Emerging technologies such as big data and AI can also provide stronger support for IPD.
We can pass byBI (Business Intelligence) conducts big data analysis to achieve scientific reflection of customer needs and market trends, providing more accurate decision-making support for product planning.
The same can beLeverage AI technology for product design and testing to reduce human error and shorten development cycles:
- In the product design stage, artificial intelligence algorithms can provide optimized design suggestions based on a large amount of historical design data and customer needs.
- During the testing phase, potential problems in the product can be discovered more quickly and comprehensively through automated testing tools.
Of course, with the continuous development of productivity, new business models and technological innovations will place higher demands on existing IT tools.
On the basis of continuously optimizing and improving the IT tool support system, and in terms of the effect of team process implementation, we can better meet the needs of the efficient operation of IPD process and help the company maintain a leading position in the fierce market competition.
