huawei award write up

2016 Global DC Power Product Leadership Award

2016

BEST PRACTICES RESEARCH

© Frost & Sullivan 2016 2 “We Accelerate Growth”

Contents

Background and Company Performance ........................................................................ 3

Industry Challenges .............................................................................................. 3

Product Family Attributes and Business Impact ........................................................ 3

Conclusion........................................................................................................... 7

Significance of Product Leadership ................................................................................ 8

Understanding Product Leadership ................................................................................ 8

Key Benchmarking Criteria .................................................................................... 9

Best Practice Award Analysis for Huawei ....................................................................... 9

Decision Support Scorecard ................................................................................... 9

Product Family Attributes .................................................................................... 10

Business Impact ................................................................................................. 10

Decision Support Matrix ...................................................................................... 11

The Intersection between 360-Degree Research and Best Practices Awards ..................... 11

Research Methodology ........................................................................................ 12

Best Practices Recognition: 10 Steps to Researching, Identifying, and Recognizing Best Practices ................................................................................................................. 13

About Frost & Sullivan .............................................................................................. 14



Background and Company Performance

Industry Challenges

Macroeconomic factors are beginning to impact a variety of markets. Thus, infrastructure

build-outs in mature economies are slower than expected. Although remote and untapped

regions provide good opportunities for growth, the lack of existing power infrastructure

makes the cost of power high in implementing a wider telecoms network. This hinders the

progress of new network build-outs in many untapped regions. The DC power systems

market is witnessing a phase of intense competition with consolidation taking place

amongst the Tier 1 manufacturers. There is also a lack of innovation and product

differentiation in this market, where many end users are still using old legacy systems. In

order to gain market share, DC power manufacturers need to come up with technically

advanced and innovative products that address the customer pain points. Huawei has had

great success in this area.

Product Family Attributes and Business Impact

Match to Needs

Huawei’s deep understanding of end user needs and specific requirements is the

foundation of its product development process. The company’s excellence in DC power

systems can primarily be attributed to its ability to develop products that perfectly align

with customer expectations as its product designs are directly inspired and influenced by

evolving customer needs. Rapid technology developments in the broadband networks

(both mobile and fixed) are influencing massive changes in equipment rooms and telecom

sites. This has led to changing customer requirements with respect to network equipment

as well as energy products. Huawei is always ahead of the competition when it comes to

identifying/analyzing these trends and developing energy products that effectively address

customer pain points. The company places tremendous emphasis on three core aspects of

its product development process – simplicity, efficiency and reliability. A fitting example to

demonstrate Huawei’s commitment towards enhancing customer value is its development

of an innovative energy infrastructure management platform which allows smart site

management and significantly enhances site reliability. This system called “NetEco”; it is a

comprehensive online management and monitoring system that provides real time access

and updates of all the site equipment. It provides accurate operation & maintenance

management, especially on energy efficiency management, by leveraging digitization

technologies, intelligence and interconnection. NetEco ensures a smooth communication

and end to end high efficiency network with minimized OPEX.



System Architecture of NetEco Source: Huawei

Breadth of Product line combined with Excellent Reliability and Quality

Huawei’s vision to create multiple telecom power solutions to cater to diverse end user

requirements and its meticulous efforts to incorporate value added features and

functionalities in each of those products is highly commendable. Its extensive product

portfolio comprises of adaptive telecom energy solutions which are designed to suit

diverse scenarios ranging from urban to rural, indoor sites to outdoor sites and small sites

to central office sites. Furthermore, it also offers a hybrid power solution to promote green

energy. Huawei’s indoor power systems include standalone and integrated types, are

modular in design and enable fast deployment as well as easy expansion. Its latest

product “MTS9600V” is an intriguing next-generation indoor site power solution which

integrates power, cooling, and monitoring systems to provide an end to end energy

solution for telecom equipment. Its outdoor counterpart “MTS9000A” is also modular in

nature and offers outstanding management functions, and provides a stable and reliable

power supply for wireless coverage and transmission node sites. The company has also

developed a series of other outdoor power solutions in different sizes and types

(integrated and stackable types) to cater to various outdoor scenarios. These units are

characterized by its customer centric design aspect, where various cooling technologies

such as Heat Exchange (HEX), Direct Ventilation (DV), and TEC can be incorporated based

on specific customer requirements. The other interesting aspect of Huawei’s product line is

its “embedded power”. This not only forms the core of its indoor/outdoor power systems,

but also provides individual embedded power systems where necessary. It employs a

standardized structural design which is extremely compact and supports a 19-inch rack or

cabinet installation. It is designed to adapt to a wide range of AC input voltage, with

intelligent battery management, remote monitoring, etc.



Product/Service Value

Huawei’s telecom power products represent the next generation of DC power products

that are not only simple, reliable and efficient, but are also deeply integrated with the

network equipment, making it a comprehensive end to end solution. Huawei’s products

are embedded with a wide range of features and functionalities that enhance end user

value multifold. Most of these features are unique in the industry, especially the intelligent

management functions which eliminate the need for routine maintenance work. For

instance, its status of health (SOH) management is a proactive function which provides

intelligent lifespan management of key power equipment (battery and Diesel Genset). This

self-diagnosis function delivers a highly efficient operation & maintenance management

for the end user and increases reliability by minimizing interruptions to the site network.

Its intelligent DC Transfer Switch (iDTS) system is equipped with an automatic voltage-

switching function for power supplies between the main battery and backup battery, thus

ensuring high reliability of the system power. MTS also provides an intelligent video

surveillance function to protect end users from any illegal breach. Its intelligent camera

installed on site automatically takes photographs when it detects a breach and

instantaneously streams them to its operational support system (OSS) center.

Product Positioning Advantage

The company’s technology excellence is complemented by its brilliant product positioning

strategy. It has taken meticulous efforts to understand the shortcomings and pain points

in the industry and developed smart and meaningful features that appeal to multiple end

user applications. Huawei’s telecom energy smart site solutions feature an innovative

Multiple Energy Input & Multiple Mode Output (MIMO) function which is based on its

proprietary “software defined power (SDP) technology”. The MIMO function provides the

end users with a high degree of flexibility to switch between multiple energy sources as

input; such as solar, grid, diesel generator, HVDC and battery. It also allows the end user

to access a combination of

difference energy sources at the

same time – for instance a

combination of solar and grid

power can be used

simultaneously. At the core of

the SDP technology is Huawei’s

highly advanced and innovative

“power rectifier” which is

capable of accessing multiple

energy sources at the same

time with just a minor

software/chip modification on the rectifier side. On the other hand, its multiple mode

output allows end users to choose from multiple output power ranges which include



-48Vdc, 24Vdc, 60Vdc, 225/400Vdc and 220Vac. Frost & Sullivan believes that Huawei’s

SDP technology will prove to be highly beneficial to the end users.

The company’s Hybrid Power System is another great example that proves its excellence

in enhancing customer value. It offers solar, diesel and grid hybrid power systems which

are based on its propietiery SolarMax, DieselMax and GridMax technologies respectively

and are highly suitable for sites in off-grid and poor-grid areas. These systems not only

maximize the power efficiency, but also optimize power supply cost. For instance, its

DieselMax technology enables the system to maximize fuel efficiency and reduces fuel

consumption by 25% when compared to similar solutions in the industry.

Industry Leading Design

The advanced and innovative features/functionalities incorporated in Huawei’s Telecom

Energy Smart Site Solutions (MTS) are a testament to the company’s technology

excellence and cutting edge product design. They also play a crucial role in placing the

company at the forefront of this highly competitive industry. Huawei’s Network Energy

department employs over 2000 R&D engineers and has 9 R&D centers across the world.

Its DC power division invests over $100M for R&D activities each year; this is an

astonishing feat that none of its competitors are able to replicate. This is also one of the

critical success factors for Huawei to stay ahead of its competition – investing heavily in

R&D, leading to impeccable product designs. Its products incorporate a modular design

even at a component level, to ensure the power system is more flexible and can be

smoothly upgraded. This modular design also significantly reduces the installation and

maintenance time. Its MTS is equipped with an intelligent DC Distribution Box (iDCDB)

which makes power distribution and management more convenient and efficient. It

achieves this through its innovative functions, such as adjustable capacity for each route,

remote route on/off control, hot-plugging and so on. From an efficiency perspective,

Huawei does not only focus on improving component level efficiency, but also has a major

focus on enhancing site-level energy efficiency. Its industry-leading high efficiency

rectifier used in its DC power systems offers an efficiency of up to 98%. Its solar module

and HVDC module offer an efficiency of 98.5% and 97.0% respectively, which are also

considered as one of the highest in the industry.

High Growth Potential

Huawei has been rapidly gaining market share in the global DC power market over the

past few years. The company’s growth markets are, Europe, Asia-Pacific, Middle East &

Africa and LATAM. The company not only emerged as a clear market leader in 2015 with a

sizable market share of 29.3%, it also secured a significant lead over its closest

competitor (a difference of over 7%). Frost & Sullivan firmly believes that Huawei’s

excellence in innovation and its ability to develop technically advanced DC power products

and solutions will further elevate its leadership position in the global market. The company

has a large and loyal customer base including industry leading telecom giants such as



British Telecom, China Mobile, Vodafone, Deutsche Telekom AG, Telefonica, America Movil

etc. The company has been growing its revenues at rate which is higher than the industry

average growth rate. It is Frost & Sullivan’s finding that Huawei’s commitment to its

customers combined with its excellent product portfolio will be a key driver for Huawei’s

growth over the coming years.

Conclusion

Huawei is committed to helping its customers reduce their total energy cost and improving

the operational efficiency with simple, efficient and reliable network energy solutions.

Frost & Sullivan’s analysis finds Huawei’s DC power products highly innovative and

revolutionary; they help end users save up to 90% of traditional O&M costs and offer an

overall network energy efficiency of up to 80%. The company’s commitment towards

driving forward the transformation of the telecom energy industry and building a green

and intelligent telecom energy network is highly commendable.

With its strong overall performance, Huawei has earned Frost & Sullivan’s 2016 Product

Leadership Award.



Significance of Product Leadership

Ultimately, growth in any organization depends upon customers purchasing from your

company, and then making the decision to return time and again. A comprehensive

product line, filled with high-quality, value-driven options, is the key to building an

engaged customer base. To achieve and maintain product excellence, an organization

must strive to be best-in-class in three key areas: understanding demand, nurturing the

brand, and differentiating from the competition.

Understanding Product Leadership

Demand forecasting, branding, and differentiation all play a critical role in finding growth

opportunities for your product line. This three-fold focus, however, must be complemented

by an equally rigorous focus on pursuing those opportunities to a best-in-class standard.

Customer communications, customer feedback, pricing, and competitor actions must all be

managed and monitored for ongoing success. If an organization can successfully parlay

product excellence into positive business impact, increased market share will inevitably

follow over time.



Key Benchmarking Criteria

For the Product Leadership Award, Frost & Sullivan analysts independently evaluated two

key factors—Product Family Attributes and Business Impact—according to the criteria

identified below.

Product Family Attributes

Criterion 1: Match to Needs

Criterion 2: Reliability and Quality

Criterion 3: Product/Service Value

Criterion 4: Positioning

Criterion 5: Design

Business Impact

Criterion 1: Financial Performance

Criterion 2: Customer Acquisition

Criterion 3: Operational Efficiency

Criterion 4: Growth Potential

Criterion 5: Human Capital

Best Practice Award Analysis for Huawei

Decision Support Scorecard

To support its evaluation of best practices across multiple business performance

categories, Frost & Sullivan employs a customized Decision Support Scorecard. This tool

allows our research and consulting teams to objectively analyze performance, according to

the key benchmarking criteria listed in the previous section, and to assign ratings on that

basis. The tool follows a 10-point scale that allows for nuances in performance evaluation;

ratings guidelines are illustrated below.

RATINGS GUIDELINES

The Decision Support Scorecard is organized by Product Family Attributes and Business

Impact (i.e., the overarching categories for all 10 benchmarking criteria; the definitions

for each criteria are provided beneath the scorecard). The research team confirms the

veracity of this weighted scorecard through sensitivity analysis, which confirms that small

changes to the ratings for a specific criterion do not lead to a significant change in the

overall relative rankings of the companies.



The results of this analysis are shown below. To remain unbiased and to protect the

interests of all organizations reviewed, we have chosen to refer to the other key players

as Competitor 2 and Competitor 3.

DECISION SUPPORT SCORECARD FOR PRODUCT LEADERSHIP AWARD

Measurement of 1–10 (1 = poor; 10 = excellent)

Product Leadership

Product Family

Attributes

Business

Impact Average Rating

Huawei 9.0 9.0 9.0

Competitor 2 7.0 6.0 6.5

Competitor 3 6.0 6.0 6.0


Criterion 1: Match to Needs

Requirement: Customer needs directly influence and inspire the design and positioning of

the product family

Criterion 2: Reliability and Quality

Requirement: Products consistently meet or exceed customer expectations for

performance and length of service

Criterion 3: Product/Service Value

Requirement: Products or services offer the best value for the price, compared to similar

offerings in the market

Criterion 4: Positioning

Requirement: Products or services unique, unmet need that competitors cannot easily

replicate or replace

Criterion 5: Design

Requirement: The product features an innovative design, enhancing both visual appeal

and ease of use

Business Impact

Criterion 1: Financial Performance

Requirement: Strong overall financial performance in terms of revenues, revenue growth,

operating margin and other key financial metrics

Criterion 2: Customer Acquisition

Requirement: Product strength enables acquisition of new customers, even as it enhances

retention of current customers

Criterion 3: Operational Efficiency

Requirement: Staff is able to perform assigned tasks productively, quickly, and to a high

quality standard



Criterion 4: Growth Potential

Requirements: Product quality strengthens brand, reinforces customer loyalty and

enhances growth potential

Criterion 5: Human Capital

Requirement: Company culture is characterized by a strong commitment to product

quality and customer impact, which in turn enhances employee morale and retention

Decision Support Matrix

Once all companies have been evaluated according to the Decision Support Scorecard,

analysts can then position the candidates on the matrix shown below, enabling them to

visualize which companies are truly breakthrough and which ones are not yet operating at

best-in-class levels.

DECISION SUPPORT MATRIX FOR PRODUCT LEADERSHIP AWARD

High

Low

Low High

Bu

sin

ess I

mp

act


Huawei

Competitor 2

Competitor 3



The Intersection between 360-Degree Research and Best

Practices Awards

Research Methodology

Frost & Sullivan’s 360-degree research

methodology represents the analytical

rigor of our research process. It offers a

360-degree-view of industry challenges,

trends, and issues by integrating all 7 of

Frost & Sullivan's research methodologies.

Too often, companies make important

growth decisions based on a narrow

understanding of their environment,

leading to errors of both omission and

commission. Successful growth strategies

are founded on a thorough understanding

of market, technical, economic, financial,

customer, best practices, and demographic

analyses. The integration of these research

disciplines into the 360-degree research

methodology provides an evaluation

platform for benchmarking industry players and for identifying those performing at best-

in-class levels.

360-DEGREE RESEARCH: SEEING ORDER IN

THE CHAOS



Best Practices Recognition: 10 Steps to Researching,

Identifying, and Recognizing Best Practices

Frost & Sullivan Awards follow a 10-step process to evaluate award candidates and assess

their fit with select best practice criteria. The reputation and integrity of the Awards are

based on close adherence to this process.

STEP OBJECTIVE KEY ACTIVITIES OUTPUT

1 Monitor, target, and screen

Identify award recipient candidates from around the globe

Conduct in-depth industry research

Identify emerging sectors Scan multiple geographies

Pipeline of candidates who potentially meet all best-practice criteria

2 Perform 360-degree research

Perform comprehensive, 360-degree research on all candidates in the pipeline

Interview thought leaders and industry practitioners

Assess candidates’ fit with best-practice criteria

Rank all candidates

Matrix positioning all candidates’ performance relative to one another

3

Invite thought leadership in best practices

Perform in-depth examination of all candidates

Confirm best-practice criteria Examine eligibility of all

candidates Identify any information gaps

Detailed profiles of all ranked candidates

4

Initiate research director review

Conduct an unbiased evaluation of all candidate profiles

Brainstorm ranking options Invite multiple perspectives

on candidates’ performance Update candidate profiles

Final prioritization of all eligible candidates and companion best-practice positioning paper

5

Assemble panel of industry experts

Present findings to an expert panel of industry thought leaders

Share findings Strengthen cases for

candidate eligibility Prioritize candidates

Refined list of prioritized award candidates

6

Conduct global industry review

Build consensus on award candidates’ eligibility

Hold global team meeting to review all candidates

Pressure-test fit with criteria Confirm inclusion of all

eligible candidates

Final list of eligible award candidates, representing success stories worldwide

7 Perform quality check

Develop official award consideration materials

Perform final performance benchmarking activities

Write nominations Perform quality review

High-quality, accurate, and creative presentation of nominees’ successes

8

Reconnect with panel of industry experts

Finalize the selection of the best-practice award recipient

Review analysis with panel Build consensus Select winner

Decision on which company performs best against all best-practice criteria

9 Communicate recognition

Inform award recipient of award recognition

Present award to the CEO Inspire the organization for

continued success Celebrate the recipient’s

performance

Announcement of award and plan for how recipient can use the award to enhance the brand

10 Take strategic action

Upon licensing, company may share award news with stakeholders and customers

Coordinate media outreach Design a marketing plan Assess award’s role in future

strategic planning

Widespread awareness of recipient’s award status among investors, media personnel, and employees



About Frost & Sullivan

Frost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth

and achieve best in class positions in growth, innovation and leadership. The company's

Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined

research and best practice models to drive the generation, evaluation and implementation

of powerful growth strategies. Frost & Sullivan leverages almost 50 years of experience in

partnering with Global 1000 companies, emerging businesses and the investment

community from 31 offices on six continents. To join our Growth Partnership, please visit

http://www.frost.com.

http://www.frost.com/

huawei award write up

Software