Connect with us


How Huawei plans to win the Western Markets



Some Chinese high-tech companies may be bigger than you think. The e-commerce giant Alibaba has a market capitalization of over $400 billion. The social media and gaming company Tencent is not far behind, and nearly a billion people use its WeChat messaging service. Baidu is the world’s second largest search engine, and is increasingly strong in the key sector of artificial intelligence. Despite their size, these companies are largely invisible in the West because their massive successes are almost entirely restricted to China.

That’s partly because they offer software and services, neither of which travel particularly well thanks to the cultural baggage they bring with them. Chief among those is that the Chinese government has access to all of a company’s user data, and can impose any restrictions that it wishes on the use of software and services, as this blog reported earlier this year. More recently, Alibaba was instructed to remove unauthorized VPNs from its Taobao e-commerce platform. These are not aspects that are likely to endear Chinese software and services companies to Western users worried about privacy and censorship.

But there is another Chinese IT giant – Huawei – still relatively unfamiliar in the West, that is having far more luck in selling its products into markets outside China. It has achieved that because it is a company that produces hardware based on international standards, and largely running open source software. As well as the general benefits of adopting open standards and open source, this approach may also be an attempt to allay earlier fears that Huawei hardware might contain backdoors available to the Chinese government.

In the West, Huawei is probably best known for its mobile phones. Recent market research suggests that it has overtaken Apple as the world’s second-biggest smartphone manufacturer by sales after Samsung, with particular success in Europe. However, for several decades after its founding in 1987, its main product line was telecoms equipment. A measure of its success is that in 2012, it overtook Ericsson as the world’s largest telecommunications equipment manufacturer.

Huawei today employs 180,000 people, many of whom hold shares in the company, which is still privately held despite its size. Last year, its revenue was around $75 billion, with a profit of $7 billion. In 2016, approximately 80,000 employees were engaged in R&D, comprising 45% of its total workforce. Huawei’s R&D expenditures that year were around $10 billion.

The fruits of that investment were revealed at Huawei Connect 2017, its massive annual conference that this year saw 20,000 participants from over 150 countries, and which I attended last week (disclosure: Huawei paid for my travel costs). As the conference motto “Grow with the cloud” underlined, Huawei is placing public and private clouds at the heart of its strategy.

According to one of Huawei’s “rotating CEOs“, Huawei aims to be a key player in one of the five global cloud systems it predicts will coalesce, rather as airline alliances have created three main global carrier groups. Huawei placed great emphasis on what it called the “intelligent cloud”, which runs artificial intelligence software on the cloud platform. Specifically, at its conference the company launched what it called “the industry’s first all-cloud, network-wide smart video cloud solution.” This, it said, “provides a strong computing engine that supports public safety video application services and accelerates video application innovation to help public safety organizations better serve and protect citizens.”

Such “smart video” capabilities form an important component of a larger concept, the “smart city“, which is now one of the hottest marketing buzzwords in the high-tech world, along with its variant, the “safe city”. A brochure available during the Huawei Connect conference entitled “The Road to Collaborative Public Safety” defines three aims of the safe city: being able to detect threats as they emerge; being able to collect, share and analyze city data; and allowing the authorities to identify threats and then act in real-time. Huawei’s brochure says that there are already more than 100 safe city implementations using its products in 30 countries, covering 400 million people.

A key element of Huawei’s safe city system is “intelligent video surveillance.” This offers scene search in order to track particular elements in the video feeds, and video synopsis, which can summarize hours of surveillance videos into key clips for human analysis. Other features include “entity recognition”, behavior analysis and crowd counting. Extra features that can be added go beyond video surveillance to include data from Internet of Things devices to detect chemical, biological, radiological and nuclear material, radar and electro-optics, and monitoring of social media feeds. According to Huawei’s text:

“Public safety is more than current safe city. It is about preventing and solving crimes, reducing loss of life and property. Public safety is also about minimizing disruption to life. Public safety is beyond detection and response; it includes prevention and bringing life to normalcy. It encompasses digital security, health security, infrastructure safe and personal safety.”

As that hints, this includes predictive policing, or “PredPol” as the brochure terms it, which “involves analysis of data to predict the next crime, with the objective of preventing it.”

The ideas and technology behind the “safe city” sound troubling, not least from a privacy viewpoint. But in truth, much of this is already happening in the West. For example, CCTV cameras are routinely keeping tabs on our every movement, especially in countries like the UK, which has millions of the systems in place. As this blog has reported, facial recognition systems are also being used in the UK and elsewhere. The only difference between this and what Huawei offers with its safe city systems is that the latter is completed integrated and probably works rather better. Indeed, it’s easy to see Western governments that already carry out mass surveillance of their citizens acquiring Huawei’s products in order to upgrade their snooping capabilities.

The problem is not so much with Huawei’s application of powerful cloud and AI technologies to surveillance, but the bargain it implies – the bargain that we have all, to varying degrees, accepted. The deal is that if we allow the government to watch our every move, it will keep us safe from all those lurking dangers in the modern, uncertain world. Politicians everywhere shamelessly play on our fears to justify intrusive surveillance laws. So it should come as no surprise that many people are happy with the roll-out of CCTVs or suggestions that end-to-end encryption should be banned – after all, if you are a law-abiding citizen, you have nothing to hide, right?

In China, government surveillance is baked in to every online service, not just in safe cities. But again, the situation outside China is not that different: everything we do on Google or Facebook is tracked and analyzed for the purpose of selling advertising. As we now know from Snowden’s leaks, under the Prism program, the US government taps into that commercial surveillance data to gather intelligence. So the only difference between China and the West is that the former does not attempt to hide the fact that it spies on its citizens, while the latter tries to deny it. Similarly, Huawei has no problem openly offering its new AI-enhanced cloud-based surveillance systems, while its Western rivals are doubtless doing the same, but keeping quiet about it. The real issue is our meek acquiescence in the continual roll-out of privacy-harming technology by both governments and companies everywhere.


About the Author

This article was written by Glyn Moody of Privacy News Online.


Lessons Learnt from The Lean Startup



The Lean Startup book authored by Eric Ries has been sitting on my shelf for quite sometime now, so since I am currently contributing to the making of a startup I figured I’ll take a look into it.

The book is divided into 3 parts, after reading the first two I had my mind blown with the pragmatic and scientific approach to building startups that is described in the book.

In this post, I would like to share some important insights that I gained regarding building highly innovative businesses.

Validating Value Proposition And Growth Strategy Is The Priority

Usually, a highly innovative startup company is working in its most early stage at building a product or a service that will create a new market.

Consumers or businesses have not been yet exposed to something similar to what is going to be built by the startup. Therefore the absolute priority for startups in early stage is to validated their value proposition i.e. to get real data about eventual customers interest regarding their product/service.

The other priority is to validate that the growth strategy that is going to be executed is, in fact, effective.

The growth strategy of a startup is its plan to acquire more and more customers in the long term and in a sustainable fashion.

Three kinds of growth strategies are described in the book:

  • paid growth in which you rely on the fact that the customers are going to be charged for the product or service, the cash earned from early users is reinvested in acquiring new users via advertising for example
  • viral growth in which you rely on the fact that customers are going to bring customers as a side effect of using the product/service
  • sticky growth in which you rely on the fact that the customers are going to use the service in some regular fashion, paying for the service each time (via subscription for example).

These growth strategies are sustainable in the sense that they do not require continuous large capital investments or publicity stunts.

It is important to know as soon as possible which strategy or combination of strategies is the most effective at driving growth.

Applying The Scientific Method

The scientific method is a set of techniques that helps us figure out correct stuff. After making some observations regarding a phenomenon, you formulate a hypothesis about that phenomenon.

The hypothesis is an assumption that needs to be proven correct or incorrect. You then design experimentations that are going to challenge the assumption.

The results of the experimentations makes the correctness or incorrectness of the hypothesisclear allowing us to make judgments about its validity.

In the lean startup methodology, your job as an entrepreneur is to formulate two hypothesis:

  • hypothesis of value (assumptions about your value proposition)
  • hypothesis of growth (assumptions about the effectiveness of the growth strategy)

These hypothesis are then validated/invalidated through experimentation. Following the precepts of lean manufacturing, the lean startup methodology prescribes to make experimentations while minimizing/eliminating waste.

In other words, you have to burn minimum cash, effort and time when running experiments.

An experimentation in the lean startup sense is usually an actual product/service and helps startups in early stage learn invaluable things about their eventual future market.

Sometimes startups learn that nobody wants their product/service, imagine spending 8 months worth of engineering, design and promotion work (not to mention cash) in a product/service only to discover that it does not provide value to anyone.

Minimum Viable Products And Feedback

As we pointed out earlier, an experimentation can be an actual product or service and is called the minimum viable product(MVP).

The MVP is built to contain just enough features to validate the value and growth hypotheses, effectively requiring minimum time, effort and cash.

By getting the MVP launched and in front of real users, entrepreneurs can get concrete feedback from them either directly by asking them (in focus groups for example) or via usage analytics.

Analytics scales better then directly talking to customers but the latter is nonetheless used to cross validate results from the former.

It is crucial to focus on metrics that creates fine grained visibility about the performance of the business when building(or using) a usage analytics system. These metrics are called actionable metrics because they can link causes and effects clearly allowing entrepreneurs to understand the consequences of ideally each action executed. Cohort analysis is an example of a analytics strategy that focuses on actionable metrics.

The bad kind of metrics are called vanity metrics, these tend to hide how the business is performing, gross numbers like total users count are an example of vanity metrics.

The author cites several examples of different startups that managed to validate or debunk their early assumption by building stripped down and non scalable MVPs and even sometimes by not building software at all.

You would be surprised to hear for example how the Dropbox folks in their early stage managed to created a ~4 minute video demonstrating their product while it was still in development. The video allowed them to get more people signed up in their beta waiting list and raise capital more easily.

Closing Thoughts

In the first two parts of the book, the author talks also about how employees inside big companies working on highly innovative products and services can benefit greatly from the lean startup approach, although very interesting this is not very useful for me right now.

The third part, talks about the challenges that arises when the startup gets big and starts to stabilize and how to address them. Basically it revolves around not loosing the innovative spirit of the early days, again, this is not very useful for me so maybe for good future reading.


About the Author

This article was produced by Tech Dominator. see more.

Continue Reading


How to Create Buzz around Your Startup Idea



Chase the vision, not the money, the money will end up following you.

– Tony Hsieh, Zappos CEO

There is something very exciting starting up a business. Startups offer you a chance to do something fresh and take new ideas to the public. But if you’re going to succeed, you need to get it right from the very start of the journey. Creating buzz around your startup’s launch is possible, and here are some ideas to help you do it.

Blog About Your Startup Journey

This is a great thing to do if you want to create a personable and refreshing brand image. People like to see how your business is doing and how it grows from an idea into a fully fledged business. Blog about what you’re doing and how your business is expanding. If you can develop an audience of readers ahead of your startup’s official launch, it will be easier for you to hit the ground running. You can then make the blog the voice of the company as it grows and starts to turn a profit. This is something that you should think very carefully about when starting up a business.

Make Plenty of Announcements

You should try to make a lot of announcements when you are leading up to the launch of your startup. There are plenty of people out there that will be interested in hearing about what you’re doing. You need to start by creating a strong presence on all the key social media sites. If you can do this, you will build up an audience that will then be receptive to your messages. They will also be there to spread the word and share announcements with their friends on social media platforms. This can be hugely important when you’re trying to raise brand awareness and expose your announcements to as many people as possible.

Organize an Event and Invite People

Organizing a real event that people can turn up to and attend can be a great idea. It makes your startup’s official launch feel more real. If you just set a random date for the launch and don’t mark it in any way, it will be much more difficult to create a buzz. Hire a stage, sound system and find bleacher rentals to host the event. Then you can write a speech and make a plan for the schedule of the launch. If you can do this well, you will create a lot of buzz, and maybe get some more coverage for the startup too.

Reach Out to People Who Can Give You Publicity

There are plenty of people out there that might be able to help you achieve the publicity and coverage you crave. When your business is being talked about, people will hear about your brand and what it’s doing. So, you need to make sure that you reach out to many people in the press, the media and the blogosphere who can help you. There are many business magazines and websites that write profiles of new business and young entrepreneurs. If you can contact some of these people, they might be interested in offering you some coverage. Don’t underestimate how important this could be. Hopefully these ideas will help you with starting up a business.


About the Author

This article was produced by SolVibrations is a multi-author self improvement blog, aiming to inspire creativity within.

Continue Reading