Built on Value : The Huawei Philosophy of Finance Management

This book is open access under a CC BY-NC-ND 4.0 license. This book presents the concept of value as the central component to success and longevity of the global ICT industry player, Huawei. It provides examples of how Huawei focuses on customers to pursue sustainable and profitable growth rather than focusing on capital market valuation which is a familiar scenario among Western companies. It is the business departments that are the creators of value for Huawei, while the finance department is tasked to provide support and services to those business departments during the value creation process. The book illustrates how Huawei Finance sets rules, allocates resources, and builds centers of expertise all over the world to address future uncertainties. More than a decade ago Huawei dedicated seven years to implement the Integrated Financial Services (IFS) Transformation Program with the help of IBM consultants. This book also draws on the leading concepts and successful experience of the IFS Transformation Program. Huawei Finance adopts three types of centralized vertical management from the top down: treasury, accounting, and auditing. It does not transfer such central authority down to lower levels, but delegates all other authority to business organizations across all levels. This management model represents the focus of this book. Built on Value provides an overview of Huawei's finance management and will help academic researchers in Business/Management, as well as practitioners in industry, an accurate and in-depth understanding of Huawei as a company. 04 02 1. Huawei's Business Goal.- 2. Huawei's Competition Strategy - A Financial Perspective.- 3. Remaining Flexible to Seize Opportunities amidst Uncertainties.- 4. Enhancing Core Competencies through Strategic Mergers and Acquisitions and Corporate Venture Capital Investment.- 5. Strengthening Risk Control and Compliance Management.- 6. Finding the Right Amount of Openness, Compromise, and Huidu , and Properly Balancing Expansion and Control.- 7. Guidelines for Value Management.- 8. Financial Management Throughout End-to-End Business Processes.- 9. Project Financial Management.- 10. Optimizing the Management Control System for Responsibility Centers.- 11. Developing a Better Planning, Budgeting, and Accounting System.- 12. Service and Oversight Functions of Accounting.- 13. Treasury Management.- 14. Tax Management.- 15. Internal Controls and Internal Audit.- 16. Digital Financial Management.- 17. Making Financial Management Process-based and Professional. 13 02 Weiwei Huang is a professor at the School of Business, Renmin University of China, and previously headed the Business School's Department of Management Science and Engineering. He received the Master's Degree in Economics from the Industrial Economics Department of Renmin University of China. He is also a visiting scholar at the Desautels Faculty of Management of McGill University, the Ivey Business School of the University of Western Ontario, and the University at Buffalo School of Management. His research interests include production and operations management, entrepreneurial management, and management policies. He is the author of Production and Operations Management , EVA Management Model , and Asymmetric Competition . He has served as a senior management consultant of Huawei since 1996 and was involved in drafting The Huawei Charter . He is also the editor-in-chief of several published works, including Out of Chaos , DedicationThe Huawei Philosophy of Human Resource Management , Customer CentricityThe Huawei Philosophy of Business Management , and Built on ValueThe Huawei Philosophy of Finance Management Philosophy . 18 02 This book presents the concept of value as the central component to success and longevity of the global ICT industry player, Huawei. It provides examples of how Huawei focuses on customers to pursue sustainable and profitable growth rather than focusing on capital market valuation, which is a familiar scenario among Western companies. It is the business departments that are the creators of value for Huawei, whereas the finance department is tasked to provide support and services to those business departments and oversee their operations during the value creation process. The book illustrates how Huawei Finance sets rules, allocates resources, and builds centers of expertise all over the world to address future uncertainties. More than a decade ago Huawei dedicated seven years to implement the Integrated Financial Services (IFS) Transformation Program with the help of IBM consultants. This book also draws on the leading concepts and successful experience of the IFS Transformation Program. Huawei Finance adopts three types of centralized vertical management from the top down: treasury, accounting, and auditing. It does not transfer such central authority down to lower levels, but rather delegates all other authority to business organizations across all levels. This management model represents the focus of this book. Built on Value provides an overview of Huawei's finance management and will help academic researchers in Business/Management, as well as practitioners in industry, gain an accurate and in-depth understanding of Huawei as a company. Weiwei Huang is a professor at the School of Business, Renmin University, and previously headed the Business School's Department of Management Science and Engineering. He received his Master's Degree in Economics from the Industrial Economics Department of Renmin University of China. He is also a visiting scholar at the Desautels Faculty of Management at McGill University, the Ivey Business School at the University of Western Ontario, and the University at Buffalo School of Management. 19 02 Open Access Focuses on Huawei's financial management philosophy Recommended by Chinese business elites and professors, such as Chuanzhi Liu (), Qiren Zhou (), Guoan Yang () and others Assists overseas readers gain an accurate and in-depth understanding of Huawei 46 06 CC BY-NC-ND 4.0 47 02 Open Access This book is licensed under the terms of the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License ((http://creativecommons.org/licenses/by-nc-nd/4.0/) http://creativecommons.org/licenses/b... ), which permits any noncommercial use, sharing, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if you modified the licensed material. You do not have permission under this license to share adapted material derived from this book or parts of it. The images or other third party material in this book are included in the book's Creative Commons license, unless indicated otherwise in a credit line to the material. If material is not included in the book's Creative Commons license and your intended use is not permitted by statutory regulation or exceeds the permitted use, you will need to obtain permission directly from the copyright holder. 06 05 300 01 (https://covers.springernature.com/books/9789811375064.tif) https://covers.springernature.com/boo... 01 01 (https://www.springer.com/9789811375064) https://www.springer.com/9789811375064 01 (http://www.springer.com/) http://www.springer.com/ 01 Springer Nature Imprint PM Palgrave Macmillan 01 01 SPVS Springer Singapore 01 05 78997 Springer Singapore 02 01 SSAP Social Sciences Academic Press Singapore SG 04 20190704 2019 01 WORLD 08 765 gr 01 210 mm 02 148 mm 27 03 9789811375071 15 9789811375071 01 ISBN-13 hyphenated 978-981-13-7507-1 DG 06 03 9789811375095 15 9789811375095 01 ISBN-13 hyphenated 978-981-13-7509-5 BC Springer Singapore 01 ROW IP 23 20190704 02 Recommended Retail Price 01 BIC discount group code ASPVBP2 02 Product discount group SPVBP2 02 84.99 AUD AU 20180713 01 Recommended Retail Price 01 BIC discount group code ASPVBP2 02 Product discount group SPVBP2 02 77.26 AUD AU 20180713 02 Recommended Retail Price 01 BIC discount group code ASPVBP2 02 Product discount group SPVBP2 02 66.61 CHF CH R 2.5 20180713 02 Recommended Retail Price 01 BIC discount group code ASPVBP2 02 Product discount group SPVBP2 02 53.49 EUR DE R 7 20180713 02 Recommended Retail Price 01 BIC discount group code ASPVBP2 02 Product discount group SPVBP2 02 52.74 EUR FR 20180713 02 Recommended Retail Price 01 BIC discount group code ASPVBP2 02 Product discount group SPVBP2 02 51.99 EUR IT 20180713 02 Recommended Retail Price 01 BIC discount group code ASPVBP2 02 Product discount group SPVBP2 02 54.99 EUR AT R 10 20180713 01 Recommended Retail Price 01 BIC discount group code ASPVBP2 02 Product discount group SPVBP2 02 49.99 EUR ROW 20180713 01 Recommended Retail Price 01 BIC discount group code ASPVBP2 02 Product discount group SPVBP2 02 44.99 GBP GB 20180713 01 Recommended Retail Price 01 BIC discount group code ASPVBP2 02 Product discount group SPVBP2 02 3560.00 INR IN 20180713 02 Recommended Retail Price 01 BIC discount group code ASPVBP2 02 Product discount group SPVBP2 02 54.49 EUR NL 20190101 Springer Singapore 01 US 02 Y IP 23 20190615 01 Recommended Retail Price 01 BIC discount group code ADGNYP2 02 Product discount group DGNYP2 02 49.99 EUR ROW 20180713 01 Recommended Retail Price 01 BIC discount group code ADGNYP2 02 Product discount group DGNYP2 02 59.99 USD US 20180713 Front Matter ....Pages i-xxxvi Front Matter ....Pages 1-1 Huawei’s Business Goal (Weiwei Huang)....Pages 3-30 Huawei’s Competition Strategy: A Financial Perspective (Weiwei Huang)....Pages 31-82 Remaining Flexible to Seize Opportunities Amidst Uncertainties (Weiwei Huang)....Pages 83-106 Enhancing Core Competencies through Strategic Mergers and Acquisitions and Corporate Venture Capital Investment (Weiwei Huang)....Pages 107-112 Strengthening Risk Control and Compliance Management (Weiwei Huang)....Pages 113-140 Finding the Right Amount of Openness, Compromise, and Huidu, and Properly Balancing Expansion and Control (Weiwei Huang)....Pages 141-173 Front Matter ....Pages 175-175 Guidelines for Value Management (Weiwei Huang)....Pages 177-209 Financial Management Throughout End-to-End Business Processes (Weiwei Huang)....Pages 211-246 Project Financial Management (Weiwei Huang)....Pages 247-274 Optimizing the Management Control System for Responsibility Centers (Weiwei Huang)....Pages 275-301 Developing a Better Planning, Budgeting, and Accounting System (Weiwei Huang)....Pages 303-328 Service and Oversight Functions of Accounting (Weiwei Huang)....Pages 329-346 Treasury Management (Weiwei Huang)....Pages 347-362 Tax Management (Weiwei Huang)....Pages 363-371 Internal Controls and Internal Audit (Weiwei Huang)....Pages 373-415 Digital Financial Management (Weiwei Huang)....Pages 417-432 Making Financial Management Process-Based and Professional (Weiwei Huang)....Pages 433-446 Back Matter ....Pages 447-456