Wang, Chengbin; Chen, Minju; Wang, Qingyang; Fang, Yongyan; Qiu, Lingguang
A icle
New p oduc de elopmen pa adigm om he pe spec i e
o consume inno a ion: A case s udy o Huawei's
in eg a ed p oduc de elopmen
Jou nal o Inno a ion & Knowledge (JIK)
P o ided in Coope a ion wi h:
Else ie
Sugges ed Ci a ion: Wang, Chengbin; Chen, Minju; Wang, Qingyang; Fang, Yongyan; Qiu, Lingguang
(2024) : New p oduc de elopmen pa adigm om he pe spec i e o consume inno a ion: A case
s udy o Huawei's in eg a ed p oduc de elopmen , Jou nal o Inno a ion & Knowledge (JIK), ISSN
2444-569X, Else ie , Ams e dam, Vol. 9, Iss. 2, pp. 1-10,
h ps://doi.o g/10.1016/j.jik.2024.100482
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New p oduc de elopmen pa adigm om he pe spec i e o consume
inno a ion: A case s udy o Huawei’s in eg a ed p oduc de elopmen
Chengbin Wang
a
, Minju Chen
b,
*, Qingyang Wang
c
, Yongyan Fang
a
, Lingguang Qiu
d
a
Business School o Taizhou Uni e si y, PR China
b
Taizhou Open Uni e si y, PR China
c
Taizhou Voca ional College o Science and Technology, PR China
d
Jack Technology Company Limi ed, In o ma ion Managemen Depa men , PR China
ARTICLE INFO
A icle His o y:
Recei ed 20 No embe 2023
Accep ed 20 Ma ch 2024
A ailable online 10 Ap il 2024
ABSTRACT
New p oduc de elopmen (NPD) has become a key ac o o imp o ing en e p ise compe i i eness. In e-
g a ed p oduc de elopmen (IPD) is conside ed a bes p ac ice o add essing he complexi ies o NPD, bu
mos en e p ise NPD p ocesses ace p oblems, such as low e ficiency, long u no e , and high cos , ha mis-
ma ch he demand. Using g ounded heo y, his a icle p o ides a case s udy o how Huawei’s in eg a ed
p oduc de elopmen (IPD) acili a es new p oduc de elopmen . The esea ch shows ha Huawei has buil
a sus ainable and eplicable i e a i e closed loop be ween inno a ion managemen and business alue
h ough IPD. Howe e , by combining consume inno a ion and lean en ep eneu ship heo y o u he ana-
lyze Huawei’s IPD, i is ound ha he e a e limi a ions in cus ome de elopmen , agile de elopmen and
business insigh . The pape p oposes an expanded app oach owa ds new p oduc de elopmen : inco po a -
ing lead use s in o he IPD p ocess o enhance he company’s business insigh s in o NPD and in eg a ing lean
en ep eneu ship heo y in o IPD o expedi e he i e a ion o he company’s business model. This s udy
inco po a es s udies in he fields o NPD, IPD, use inno a ion, and lean s a up heo y, hus expanding he
esea ch ho izon o NPD.
© 2024 Published by Else ie España, S.L.U. on behal o Jou nal o Inno a ion & Knowledge. This is an open
access a icle unde he CC BY-NC-ND license (h p://c ea i ecommons.o g/licenses/by-nc-nd/4.0/)
Keywo ds:
New p oduc de elopmen
In eg a ed p oduc de elopmen
Consume Inno a ion
Lean S a up Theo y
Huawei
JEL:
O32
D22
L19
In oduc ion
The co e o new p oduc de elopmen (NPD) lies in aligning engi-
nee ing and manu ac u ing capabili ies wi h cus ome needs, he eby
enhancing en e p ises’compe i i eness (McNally e al., 2011;Si asu-
b amaniam e al., 2012). Howe e , mos companies’NPD p ocesses
su e om ine ficiencies and sluggishness, leading o delayed ma ke
en y, high cos s, and misalignmen wi h cus ome demands
(An hony & McKay, 1992). The accele a ing pace o echnological
inno a ion and he in ensifica ion o global compe i ion ha e sho -
ened p oduc li e cycles (Du mu¸so
glu & Ba czak, 2011), heigh ening
he demands on NPD’s speed (Canku a an e al., 2013;Lange ak &
Hul ink, 2006), quali y, and cos (Coope , 2021;Ma ion & Fixson,
2021). Fu he mo e, he complexi y o NPD p olongs he de elop-
men cycle, making i inc easingly challenging o achie e business
alue h ough his p ocess.
Gi en hese challenges in NPD, businesses and academics s i e o
imp o e e ficiency h ough a ious me hods (Kagan e al., 2018). This
esea ch encompasses he en i e jou ney om ea ly de elopmen o
la e comme cializa ion, encompassing p ocess model op imiza ion,
echnical solu ion implemen a ion, and o ganiza ional es uc u ing
(Du mu¸so
glu & Ba czak, 2011). In eg a ed p oduc de elopmen
(IPD) p o ides a unified amewo k o con inuous imp o emen . I
in eg a es in e nal and ex e nal esou ces, coo dina es de elopmen
eams, and le e ages echnical capabili ies, p ocesses, cus ome s, and
supply chains (McG a h, 1996). I has eme ged as he s anda d
app oach o NPD (Ahmad e al., 2013; Ge win & Ba owman, 2002).
Ne e heless, he academic communi y s ill lacks a p o ound unde -
s anding o he NPD p ocess (Dye & Smi h, 2021), and he e emains
a significan gap be ween NPD and he ealiza ion o business alue
in bo h p ac ical and esea ch se ings (G i fin e al., 2019).
Huawei Technologies Co., L d., he eina e e e ed o as ’Huawei,’
is a leading global communica ion equipmen en e p ise ha has
implemen ed he IPD sys em unde IBM’s guidance. Huawei’s new
p oduc de elopmen and IPD-based managemen mode ha e e ec-
i ely acili a ed he ealiza ion o NPD’s comme cial alue. This
pape employs g ounded heo y o conduc a single case s udy on
Huawei, aiming o e i y IPD’s e ec i eness o NPD, gain insigh s
in o IPD’s limi a ions, apply use inno a ion heo y o he IPD model,
explo e an enhanced NPD me hod, and p o ide a aluable e e ence
o echnology-based en e p ises’NPD.
* Co esponding au ho .
E-mail add ess: [email p o ec ed] (M. Chen).
h ps://doi.o g/10.1016/j.jik.2024.100482
2444-569X/© 2024 Published by Else ie España, S.L.U. on behal o Jou nal o Inno a ion & Knowledge. This is an open access a icle unde he CC BY-NC-ND license
(h p://c ea i ecommons.o g/licenses/by-nc-nd/4.0/)
Jou nal o Inno a ion & Knowledge 9 (2024) 100482
Jou nal o Inno a ion
&Knowledge
h ps://www.jou nals.else ie .com/jou nal-o -inno a ion-and-knowledge
The pape ’s s uc u e is as ollows: Fi s ly, a li e a u e e iew so s
ou NPD and IPD’s p ac ice e olu ion and academic ends. Secondly,
he esea ch me hods sec ion in oduces he me hods used, elabo-
a es on da a sou ces and channels, as well as da a p ocessing.
Thi dly, he s udy esul s analyze Huawei’s IPD in oduc ion spanning
o e wo decades, explo ing i s cogni ion, changes, p ac ice, and
e ec s. Fou hly, he esea ch and discussion sec ion a gues ha IPD
is he ounda ion o bes NPD p ac ices om a sus ainabili y and ep-
licabili y pe spec i e. I analyzes IPD’s limi a ions using lean en e-
p eneu ship heo y, inco po a es leading use s in o he IPD p ocess,
and cons uc s an op imized IPD model. Finally, he esea ch conclu-
sions and p ospec s summa ize he pape ’s main findings and po en-
ial managemen implica ions.
Theo e ical amewo k
In his sec ion, we del e in o he esea ch findings and heo e ical
amewo ks ha a e in ima ely connec ed o his pape , d awing
om h ee p incipal dimensions: he cha ac e is ics o New P oduc
De elopmen (NPD), use -d i en app oaches, and me hods specific
o use -d i en NPD.
Cha ac e is ics o NPD
Complexi y o NPD
NPD s ands as a pi o al ac i i y o business success, encompass-
ing bo h complexi y and unce ain y. I s complexi y a ises om he
b ead h o ac i i ies i encompasses, anging om ini ial concep uali-
za ion, design, p oduc ion, o ma ke ing (Kagan e al., 2018). As a
esul , NPD se es as a c ucial d i e o en e p ise success (Mo gan &
Like , 2020). Mo eo e , NPD is a highly in e dependen and in ica e
p ocess (Mish a & Shah, 2009), encompassing p oduc defini ion,
p ojec managemen , echnical schemas, p ocess modeling, o ganiza-
ional s uc u es, depa men al in eg a ion, and g oup collabo a ion
(Du mu¸so
glu & Ba czak, 2011;Flo
en & F ishamma , 2012). P ecisely,
i is he in e play o his complexi y and c ea i i y ha ex ends he
de elopmen cycle o NPD (Mish a & Shah, 2009).
Unce ain y o NPD
The unce ain y su ounding new p oduc de elopmen (NPD)
has been exace ba ed by a ious ex e nal ac o s, including he apid
pace o inno a ion, in ense indus y compe i ion, and shi ing en i-
onmen al landscapes. Consequen ly, companies a e aced wi h he
challenge o c ea ing p oduc s ha a e no only supe io bu also
as e o ma ke and mo e cos -e ec i e. As echnological ad ance-
men s, pa icula ly hose d i en by digi iza ion, con inue o gain
momen um, he complexi y and c ea i i y o mode n echnology a e
escala ing (Ma ion & Fixson, 2021), he eby comp essing he li espan
o p oduc s (Ge win & Ba owman, 2002).
Fu he mo e, he escala ing compe i i eness wi hin indus ies has
led o an inc ease in he unce ain y su ounding cus ome demand,
esul ing in a lack o cla i y in p oduc defini ion (Bocken e al., 2014;
Flo
en & F ishamma , 2012). Addi ionally, s a egic en i onmen s a e
cons an ly in flux due o unexpec ed e en s, such as he COVID-19
pandemic, which has u he compounded he al eady exis ing
unce ain y in he ma ke en i onmen . This ola ile landscape poses
significan challenges o he de elopmen o new p oduc s (Coope ,
2021;G i fin e al., 2019).
The e o e, he e ol ing ex e nal en i onmen no only heigh ens
he unce ain y su ounding NPD bu also necessi a es a heigh ened
ocus on speed, quali y, and cos -e ficiency (Kagan e al., 2018;
McNally e al., 2011). Companies mus na iga e his complex e ain
wi h p ecision and agili y o ensu e he success ul de elopmen and
launch o new p oduc s.
NPD and consume inno a ion
As he p ima y cause o NPD ailu es o en lies in a lack o cus-
ome unde s anding, en e p ises mus possess he capabili ies o
e ec i ely mee cus ome needs (Beckman, 2020;Tzo zopoulos e
al., 2020).
Consume pa icipa ion
Consume pa icipa ion is an in eg al pa o New P oduc De el-
opmen (NPD). The essence o NPD lies in aligning cus ome demand
wi h he enginee ing and manu ac u ing capabili ies o en e p ises,
and a lack o comp ehension o cus ome s o en se es as he p ima y
cause o NPD ailu es. Fu he mo e, NPD emphasizes he capabili y o
ulfill cus ome equi emen s and ansla e hem in o p oduc speci-
fica ions and finished goods (Beckman, 2020;Tzo zopoulos e al.,
2020). In on -end managemen , NPD kicks o wi h cus ome
awa eness, encompassing he iden ifica ion o he la es consume
ends, clien needs, and ma ke oppo uni ies. In essence, cus ome
insigh s se e as pi o al inpu s o In eg a ed P oduc De elopmen
(IPD) (Lied ka, 2020;Robins, 2003).
Du ing he de elopmen p ocess, cus ome s engage ac i ely in he
NPD p ocess, con ibu ing ideas, es ing p oduc s, and p o iding
eedback on p oduc de elopmen , hus acili a ing c i ical decision-
making p ocesses and enhancing de elopmen e ec i eness (Coope ,
2021;Nicholas & S eyn, 2020). F om a u u e suppo pe spec i e, cli-
en pa icipa ion s eng hens he abili y o espond p omp ly pos -
p oduc launch, he eby enhancing ma ke esponsi eness and
adap abili y (Quach e al., 2020).
Use inno a ion
Von Hippel posi s ha he p incipal d i ing o ce behind NPD is
no en e p ises, bu a he leading use s. He in oduces he heo y o
consume inno a ion (Von Hippel e al., 2012), emphasizing ha
hese pionee ing indi iduals a e adep a ecognizing issues and pin-
poin ing no el p oduc de elopmen equi emen s. Subsequen ly,
hey de ise and es solu ions ailo ed o mee hese demands. This
shi ans o ms he NPD inno a ion pa adigm om p oduce -d i en
o consume -cen e ed (Von Hippel, 2017;Von Hippel & Kaula z,
2021). En e p ise NPD p ocesses should ha e an ad an age in explo -
ing and de eloping leading use s in ha hey can disco e he busi-
ness alue o consume inno a ion and de elop NPD models based
on he concep s o openness and collabo a ion (Baldwin & Von Hip-
pel, 2011;G i fin e al., 2019).
In summa y, use pa icipa ion is indispensable in new p oduc
de elopmen . I no only aids en e p ises in be e unde s anding
and ulfilling cus ome needs bu also d i es he smoo h p og ess o
he p oduc de elopmen p ocess h ough he p o ision o c ucial
inpu s and eedback.
NPD me hodology based on consume inno a ion
The e a e many ways o en e p ises o s a NPD, and he ma u e
me hods ela ed o use -d i en a e IPD (Ge win & Ba owman, 2002)
and lean s a up heo y (Blank, 2013).
IPD me hodology
IPD, as a p ac ical ou come o NPD, significan ly enhances
esea ch and de elopmen e ficiency by in eg a ing in e nal and
ex e nal esou ces and capabili ies (Ge win & Ba owman, 2002).
This app oach is pa icula ly sui able o managing complex NPD
p ojec s and has g adually es ablished i sel as a new s anda d and
pa adigm o NPD (Ahmad e al., 2013;Somme e al., 2014).
F om he pe spec i e o ex e nal in eg a ion, IPD deeply in eg a-
es cus ome s, supplie s, and s a egic pa ne s in o he NPD p ocess,
e ec i ely educing he unce ain y o on -end ac i i ies (Mish a &
C. Wang, M. Chen, Q. Wang e al. Jou nal o Inno a ion & Knowledge 9 (2024) 100482
2
Shah, 2009). This ensu es ha p ojec s a e close o ma ke demands
and educes po en ial isks.
In e ms o in e nal in eg a ion, IPD elies on s uc u ed and mod-
ula design concep s (Somme e al., 2014) and le e ages co e
s eng hs such as high-le el suppo , c oss- unc ional eams, and
influen ial p ojec manage s (Boughzala & De V eede, 2015;Hoonso-
pon & Pu iwa , 2021) o significan ly enhance he o e all o ganiza-
ional capabili ies (Dye & Smi h, 2021). Addi ionally, IPD ocuses on
flexibili y-d i en ac i i ies, which enhance in o ma ion p ocessing
capabili ies h ough p oblem o mula ion and esolu ion ac i i ies
(Ahmad e al., 2013), ensu ing ha p ojec s can quickly espond o
ma ke changes. Fu he mo e, based on demand-d i en, IPD has
g ea ly imp o ed p ojec e ficiency by means o pa allel de elopmen
and echnical ools (Boughzala & De V eede, 2015;Coope , 2021) o
ensu e ha he p ojec can s and ou in he highly compe i i e ma -
ke en i onmen .
The lean s a up heo y
The Lean S a up heo y, a ema kable con ibu ion by E ic Ries
om S an o d Uni e si y, is designed o na iga e he highly unce ain
e ain o en ep eneu ship. This amewo k seamlessly in eg a es
di e se elemen s such as use de elopmen me hods (Blank & Do ,
2012), agile de elopmen me hodologies (Ries, 2011), and he busi-
ness model can as (Os e walde & Pigneu , 2010), c ea ing a cohesi e
and comp ehensi e sys em.
Wi hin his heo e ical amewo k, en ep eneu s swi ly ga he
use eedback h ough he launch o Minimum Viable P oduc s
(MVPs), con inuously op imizing and i e a ing hei business models.
The Lean S a up heo y pa icula ly emphasizes he impo ance o
scien ific expe imen a ion, allowing en ep eneu s o p ecisely ali-
da e he quali y o hei ideas h ough a se ies o igo ous es s
(G imes, 2018;McDonald & Eisenha d , 2020), he eby significan ly
educing unce ain y in he s a up p ocess (Eh ig & Schmid , 2022;
Yu, 2020).
Mo eo e , he Lean S a up heo y encou ages en e p ises o
ope a e like s a ups, ac i ely lis ening o cus ome s om he ini ial
s ages o on -end managemen and main aining a keen in e es in
no el ideas and echnologies (Hei mann & Cla ysse, 2007). This
app oach no only os e s employee ini ia i e and a cul u e o lea n-
ing h ough doing, bu also challenges exis ing pa adigms h ough
business expe imen s and scien ific ial and e o , d i ing co po a e
g ow h.
In p ac ice, companies widely adop lean p inciples, agile me hod-
ologies, and he S age-Ga es model o accele a e p oduc de elop-
men while elimina ing was e and ine ficiencies h oughou he
idea ion- o-launch p ocess (Coope , 2021;G i fin e al., 2019). The
applica ion o hese me hods no only enhances ope a ional e fi-
ciency bu also p o ides en ep eneu s wi h a iable oadmap o
achie ing success in a challenging and unce ain ma ke .
Resea ch gap in NPD
The li e a u e on NPD is ex ensi e, wi h IPD, use inno a ion, and
lean s a up all ep esen ing p ac ical app oaches o NPD. Among
hese, IPD is conside ed he bes p ac ice and a new pa adigm o
NPD. Howe e , wi h he inc easing unce ain y in he inno a ion
en i onmen and he sho ening o p oduc li ecycles, elying solely
on he IPD p ocess has become insu ficien o mee he demands o
sho ening de elopmen cycles and sa is ying he dynamic needs o
cus ome s in NPD.
The e a e se e al key issues ha NPD mus add ess. Fi s ly, while
he e a e ma u e pa adigms in he academic communi y o enhanc-
ing NPD pe o mance, specific issues such as managemen communi-
ca ion, unc ional in eg a ion, and eam collabo a ion pe sis in
co po a e p ac ice. I is an impo an ques ion how heo y can be
e ec i ely applied in p ac ice. Secondly, lead use s can con ibu e o
high-quali y NPD p ojec s and educe he isk o misalignmen
be ween NPD and cus ome needs. Al hough NPD elies on communi-
ca ion wi h cus ome s and ansla ing hei needs in o p oduc s and
se ices, mos lead use s all ou side he scope o co po a e ision.
The e o e, i is a c ucial esea ch opic o companies o in eg a e
use inno a ion heo y in o NPD, ap in o and expand he pool o
lead use s, and enhance he quali y o NPD p ojec s. Thi dly, IPD s ud-
ies NPD as a closed loop, esul ing in longe de elopmen cycles ha
inc easingly ail o align wi h he demands o he apidly changing
p oduc li ecycle. Lean s a up, on he o he hand, emphasizes use
eedback, apid i e a ion, and scien ific expe imen a ion, which can
help imp o e NPD e ficiency and success a es.
This s udy aims o explo e he en i e p ocess o IPD implemen a-
ion in en e p ise NPD p ac ices and in es iga e he in eg a ion o
use inno a ion heo y and lean s a up p inciples in o IPD o accu-
a ely mee cus ome needs and enhance NPD e ficiency.
Resea ch me hods
Me hodology
U ilizing he g ounded heo y me hod (Co bin & S auss, 1990;
Glase , 1992), we conduc a case s udy om a s a egic managemen
pe spec i e (Johnson e al., 2007) o explo e he in e nal logic o Hua-
wei IPD p ac ice, inco po a ing consume inno a ion and lean s a up
p inciples o enhance he IPD amewo k.
The a ionale o his esea ch is as ollows: fi s , he Huawei IPD
p ocess has a solid basis o a case s udy. We ollow Huawei and i s
inno a ion o a long ime, s udying "why" and "how" Huawei gains
i s abili y o inno a e and succeed h ough case s udies. Second, as
IPD in ol es complex sys em managemen asks, he case s udy
me hod (Yin, 2009) is op imal, as i p o ides insigh s in o in e nal
business logic. Thi d, wi h mul iple da a sou ces, we pe o m da a i-
angula ion o ensu e he consis ency and c edibili y o he da a,
he eby o e coming he limi a ions o he single case s udy me hod
(Kaplan, 2015). Finally, as a high- ech company, Huawei’s R&D
expendi u e is app oxima ely 14 % o i s annual spending. Beyond
insigh s abou Huawei’s compe i i eness de i ed om pa en s,
esea ch and coope a ion, and human esou ces (Kang, 2015;Lie ne
& Sch€
a e , 2019;Schae e , 2020), we examine he sus ainable com-
pe i i e ad an age o he company om he pe spec i e o he IPD
mechanism.
Case selec ion
O igina ing in 1987, Huawei, a elecommunica ions i an, has
been a he o e on o communica ion echnology ad ancemen s
o 35 yea s, wi h i s oo s fi mly plan ed in Longgang Dis ic , Shenz-
hen Ci y, Guangdong P o ince. Recognizing he need o enhance i s
p oduc inno a ion, Huawei made a significan in es men in in i ing
IBM o spea head he in oduc ion o he In eg a ed P oduc De elop-
men (IPD) managemen model in 1999. O e wo decades o diligen
explo a ion and p ac ice, he IPD ans o ma ion has e olu ionized
Huawei’s app oach o new p oduc esea ch and de elopmen , gi ing
bi h o a sel -op imizing and i e a i e o ganism capable o deli e ing
consis en ly high-quali y p oduc s. The g adual p ocess o " igidifica-
ion, op imiza ion, and solidifica ion" has seen IPD infil a e e e y
ace o Huawei’s ope a ions, es ablishing i as a pa adigm o suc-
cess ul IPD implemen a ion in China’s manu ac u ing sec o .
This success ul in eg a ion has injec ed a obus inno a i e i al-
i y in o Huawei. In ecen yea s, Huawei has aced se e e sanc ions
om he U.S. go e nmen , encompassing dis up ions in chip supply
and ma ke es ic ions. Despi e hese challenges, in 2021, al hough
Huawei’s sma phone business incu ed significan losses wi h sales
e enue dipping o $99.7 billion, a 28.9 % yea -on-yea dec ease, i s
C. Wang, M. Chen, Q. Wang e al. Jou nal o Inno a ion & Knowledge 9 (2024) 100482
3
ema kable inno a i e p owess s ill enabled i o no ch a p ofi o
$17.8 billion, an as ounding 76 % inc ease yea -on-yea .
So, how did Huawei success ully implemen IPD and sus ain i s
elen less inno a i e capabili ies? The answe s lie in a deep unde -
s anding and applica ion o he inhe en logic o echnological inno a-
ion and comme cializa ion. Huawei’sexpe ienceo e sin aluable
insigh s o a wide ange o echnology-d i en en e p ises, aiding hem
in ele a ing hei knowledge managemen capabili ies and ueling he
con inuous de elopmen and inno a ion o hei businesses.
Da a collec ion and p ocessing
Da a collec ion
Ou esea ch on Huawei began in 2001, when Ren Zheng ei, he
ounde o Huawei, published The Win e o Huawei, which shocked
he indus y wi h i s awa eness o dange in imes o peace. Th ough
nea ly 20 yea s o ollow-up esea ch, we ha e accumula ed mo e
han 1 million wo ds o ma e ial and da a abou Huawei. The main
da a sou ces include: Fi s , IPD guidance ma e ials. Huawei has been
adhe ing o he concep o coope a ion and openness o p omo e he
IPD model. Second, in e nal epo s. Collec he in e nal summa y
epo s and ele an public in o ma ion o Huawei execu i es o e
he yea s. Thi dly, Huawei esea ch books. The e a e mo e han 100
books on Huawei esea ch in China, including ’Will Huawei Fall
Nex ’,’F om Chance o Necessi y: Huawei’s R&D In es men and
Managemen P ac ice’,’The Way o IPD: Huawei’s R&D’,’Huawei Can,
You Can: IPD P oduc Managemen P ac ice’,’Huawei Pe o mance
Managemen ’,’Huawei Managemen Law’, and so on. Focus on ead-
ing wo ks om Huawei execu i es, co e ing R&D, human esou ces
(HR) and finance depa men s, and colla ing a la ge numbe o ma e-
ials om he on line o managemen p ac ice. Fou h, ne wo k
in o ma ion. Focus on collec ing Huawei execu i es and R&D eams
o sha e IPD expe ience and p ac ices.
Da a codifica ion
Acco ding o he logic o cogni ion, implemen a ion, p ocess, and
pe o mance, we uni o mly code Huawei’s IPD- ela ed da a. P ima y
coding is A, B, C, and D; seconda y coding is done by subsc ip i (see
Table 1); and e ia y coding is done by subsc ip ‘j’, acco ding o he
con en o each domain, such as A
ij
,B
ij
.
Da a p ocessing. Based on he da a sou ces lis ed abo e, we ocus
on fil e ing he ele an aw da a o Huawei in he IPD p ac ice p o-
cess, ensu ing he eliabili y and alidi y o he case ma e ials
h ough " iangle e ifica ion" (Yin, 2009). By conside ing he ela-
ionship among he esea ch heme, esea ch da a, and heo e ical
basis, he esea ch eam epea edly efines, compa es, e ifies, and
i e a es he da a o main ain hei consis ency and objec i i y and
minimize biased conclusions.
Resea ch esul s
Based on he comp ehensi e collec ion and me iculous classifica-
ion o Huawei da a, we gained p o ound insigh s in o he e o m
p ocess and e ec i eness o Huawei’s inno a ion managemen sys-
em. Ou analysis encompasses ou c ucial dimensions: he iden ifi-
ca ion o R&D pain poin s, he IPD e o m jou ney, he inno a i e
p ac ices wi hin IPD, and he ul ima e e ec i eness o IPD.
Iden ifica ion o R&D pain poin s
The iden ifica ion o pain poin s se ed as he s a ing poin o
e o ming Huawei’s R&D managemen sys em. Led by Ren Zheng ei,
Huawei ecognized he p essing challenges and d ew inspi a ion
om IBM’s success ul expe iences o ca alyze manage ial change.
Recogni ion o Huawei’s pain poin s in R&D. In he la e 1990s, as
Huawei’s business scaled apidly, i s p oduc line expanded signifi-
can ly, gi ing ise o no able issues such as p o ac ed new p oduc
de elopmen cycles, comp omised quali y, and sluggish esponse
speeds. These challenges mani es ed in se e al ways:
Fi s ly, he ou da ed R&D model p olonged de elopmen cycles
and os e ed a passi e app oach owa ds ma ke demands, he eby
comp omising cus ome sa is ac ion (A
11
). Secondly, significan R&D
was e occu ed as depa men s ope a ed in isola ion, ocusing solely
on echnology and unc ionali y, while neglec ing use needs (A
12
).
Thi dly, he lack o emphasis on eliabili y and s abili y comp omised
p oduc quali y, leading o inconsis en deli e y and equen a e -
sales se ice issues (A
13
). Fou hly, a cul u e o indi idual he oism
p e ailed, wi h p oduc R&D hea ily elian on indi idual capabili ies,
making eplica ion o success ul models challenging (A
14
). Las ly, he
agmen ed R&D p ocess lacked an end- o-end app oach, esul ing in
conside able in e nal ic ion be ween depa men s (A
15
).
In 1997, Huawei’s R&D cos a io and p oduc de elopmen u n-
o e we e mo e han wice he indus y a e age, while he pe capi a
con ibu ion lagged behind ha o Cisco, IBM, and o he en e p ises,
a only 20 %. The ex en o R&D was e wi hin Huawei became inc eas-
ingly appa en , necessi a ing u gen e o m. To add ess hese chal-
lenges, Huawei emba ked on a comp ehensi e e o m o i s R&D
managemen sys em, aiming o enhance e ficiency and os e inno a-
ion. By accu a ely iden i ying and me iculously analyzing hese pain
poin s, Huawei laid a solid ounda ion o he subsequen implemen-
a ion o In eg a ed P oduc De elopmen (IPD) e o ms.
Reasons o bo owing om IBM’s IPD. Huawei chose o bo ow
om IBM’s In eg a ed P oduc De elopmen (IPD) app oach o se -
e al easons. In la e 1997, ounde Ren Zheng ei led a delega ion o
he Uni ed S a es o add ess R&D challenges and isi ed a ious
enowned en e p ises, including Hughes, IBM, Bell Labs, and Hew-
le -Packa d. Among hese, IBM had a p o ound impac on Huawei
(A
21
). IBM had unde gone a simila se e e c isis in 1993, su e ing
losses o $8.1 billion ha nea ly pushed he company o he b ink o
bank up cy (A
22
). Howe e , unde he leade ship o Louis V. Ge s ne ,
IBM emba ked on adical e o ms ha eju ena ed he o ganiza ion.
Building upon he PACE amewo k, IBM ailo ed i s IPD model o i s
unique business con ex , success ully add essing R&D and inno a ion
managemen issues. This app oach significan ly imp o ed he p od-
uc de elopmen p ocess, sho ened he ime- o-ma ke o new
o e ings, and boos ed p ofi s. In 1994, IBM achie ed a u na ound,
pos ing a p ofi o $3 billion (A
23
).
Rema kably, in a span o me ely h ee yea s ollowing he imple-
men a ion o In eg a ed P oduc De elopmen (IPD), IBM slashed he
ime- o-ma ke o i s high-end p oduc s, educing i om a consid-
e able 70 mon hs o a me e 20 mon hs. Fu he mo e, he p opo ion
o Resea ch and De elopmen (R&D) expendi u e diminished signifi-
can ly, dec easing om 12 % o 6 %, while R&D losses diminished
e en mo e no ably, con ac ing om 25 % o 6 % (A
24
). McG a h’s
(1996) as u e obse a ion ha IBM’s adop ion o IPD exceeded he
Table 1
Huawei da a coding me hods.
Le el 1 coding Seconda y coding
IPD cogni ion (A) Resea ch and de elopmen pain poin s (A
1
)
Uni ing IBM(A
2
)
IPD ans o ma ion (B) Rigidifica ion s age (B
1
)
Op imiza ion s age (B
2
)
Solidifica ion s age (B
3
)
IPD p ac ice (C) Ma ke adminis a ion (C
1
)
IPD flow (C
2
)
Cus ome managemen (C
3
)
A chi ec u e e olu ion (C
4
)
IPD achie emen s (D) Pain elie solu ions (D
1
)
IPD e enue c ea ion (D
2
)
IPD p ojec alue (D
3
)
C. Wang, M. Chen, Q. Wang e al. Jou nal o Inno a ion & Knowledge 9 (2024) 100482
4
expec ed benefi s ou lined by he P oduc and Cycle- ime Excellence
(PACE) amewo k holds ue. Gi en IBM’s s unning u na ound and
he p o ound success o i s IPD app oach, Huawei pe cei ed an
oppo uni y o emula e his exempla y model, he eby ans o ming
i s own R&D challenges in o dis inc compe i i e ad an ages. Huawei
ecognized ha by emb acing IPD, i s ood o s eamline i s p oduc
de elopmen p ocesses, bols e i s inno a i e capabili ies, and ul i-
ma ely ele a e i s ma ke s anding.
IPD ans o ma ion p ocess
A he beginning o 1999, Huawei o mally hi ed IBM o in oduce
IPD in an all- ound way h ough compa ison and sc eening. The ad i-
so y ee was $48 million, equi alen o Huawei’s en i e p ofi o he
yea . Add in he cos s o implemen a ion and IT, and he o al cos o
change is mo e han $170 million. Huawei’s IPD e o m has gone
h ough 10 yea s, h ough "cu ing he ee o fi he shoes", i has
gone h ough h ee s ages o igidi y, op imiza ion and solidifica ion,
om in oduc ion o g ow h. G adually ake oo and con inue o
op imize.
Rigid phase (1999
−
2004)
Du ing he igid phase (1999−2004), Huawei was busy diges ing,
unde s anding, and efining IPD. Following he launch o he IPD
p ojec , ou p oduc de elopmen eams (PDT) we e chosen as pio-
nee s, emba king on he IPD pilo in 2000 (B
11
). By 2001, 30 % o PDTs
had adop ed IPD (B
12
), and by 2002, he figu e had isen o 70 % (B
13
).
I ook Huawei fi e yea s o g adually unw ap and expe imen wi h
IPD (B
14
). Ren Zheng ei, he isiona y leade , belie ed ha ini ial
igidi y was no a bad hing, emphasizing ha "be o e deeply g asp-
ing he essence, we mus e ain om has ily al e ing o he s’pe -
spec i es "(B
15
) .This cau ious app oach pa ed he way o Huawei’s
e en ual success in in eg a ing IPD in o i s co e ope a ions.
Op imiza ion phase (2004
−
2007)
In 2004, Huawei emba ked on a jou ney owa ds enhancing p od-
uc li ecycle managemen , g adually del ing in o he co e unc ionali-
ies o he In eg a ed P oduc De elopmen (IPD) amewo k. By
2005, he company seamlessly in eg a ed IPD wi h ma ke manage-
men (MM) and o de equi emen (OR) p ocesses, laying he ounda-
ion o an end- o-end IPD p ocess and demand-d i en p oduc
de elopmen (B
21
). Since 2006, Huawei has p og essi ely aligned i s
p oduc ion, manu ac u ing, p ocu emen , and R&D ac i i ies, e ec-
i ely in eg a ing he quali y managemen sys em wi h he IPD p o-
cess (B
22
). Th ough elen less e o s in op imiza ion and
imp o emen , Huawei’s de elopmen eam o 100,000 indi iduals
has achie ed he nimbleness cha ac e is ic o a small- o-medium
en e p ise, enabling hem o swi ly and cos -e ec i ely espond o
cus ome needs (B
23
). As an example, in he elecommunica ions
ma ke , Huawei inno a i ely in oduced he "IPD Solu ion P ocess,"
p o iding cus ome s wi h comp ehensi e solu ions encompassing
p oduc s, se ices, global aining, and cus ome suppo (B
24
).
Solidifica ion phase (2007
−
2010)
Du ing he solidifica ion phase, Huawei ein o ced i s IPD ame-
wo k h ough a i ec a o ou iniza ion, s anda diza ion, and ITiza-
ion. Rou iniza ion in ol ed ans o ming excep ional occu ences
in o ou ine ma e s h ough he es ablishmen o sys ems and p o-
cedu es, ul ima ely ans o ming hem in o s anda dized egula ions
and p ac ices (B
31
). S anda diza ion ocused on empla ing clea and
epea able p ocesses, con e ing all s anda d wo k in o s anda dized
empla es, ensu ing ha any enginee could access all necessa y
lea ning esou ces on he in e nal lea ning ne wo k. As Xu Zhijun
ap ly s a ed, "New employees need no seek assis ance om e e -
ans" (B
32
). ITiza ion, on he o he hand, en ailed le e aging so wa e
ools like No es o fice o digi ize and s eamline all p ocesses,
enabling online execu ion. Essen ially, he solidifica ion s age aimed
o s eamline p ocesses, enhance collabo a ion, and boos wo k e fi-
ciency (B
33
).
IPD p ac ices and inno a ions
No ably, IPD is a s uc u ed p ocess o de eloping new p oduc s.
Huawei’s IPD managemen sys em encompasses he MM, RM, and
IPD p ocesses (see Fig. 1), which seamlessly in eg a e business deci-
sions, p ojec managemen , and c oss-depa men al eams.
Ma ke managemen module
P oduc po olio managemen is he co e o ma ke managemen .
The goal o Huawei’s in es men s in p oduc s is o pu sue alue max-
imiza ion, p ofi s, long- e m co e compe i i eness, and he in e es s
o cus ome s and indus ial chain ecological pa ne s (C
11
). A e Hua-
wei changed om a " as ollowe and ac i e compe i o " o an indus-
y leade , Xu Zhijun, o a ing chai man o Huawei’s boa d, belie ed
ha "managemen needs o gain a deep insigh in o indus y ends
o ensu e ha Huawei does no lose i s di ec ion on he oad o
indus ial de elopmen " (C
12
). The co e o ma ke segmen a ion is
finding aluable cus ome s who can p o ide he igh inpu o he
IPD p ocess. Ren Zheng ei belie es ha "Huawei has limi ed capabili-
ies and can only ocus on choosing aluable cus ome s as s a egic
pa ne s" (C
13
). Ma ke managemen p o ides consis en me hods
and p ocesses o analysis, and i encou ages managemen o con-
s an ly adjus he p oduc po olio h ough li ecycle managemen
while moni o ing ma ke pe o mance.
Fig. 1. Huawei IPD managemen sys em.
C. Wang, M. Chen, Q. Wang e al. Jou nal o Inno a ion & Knowledge 9 (2024) 100482
5
Requi emen managemen module
The co e o equi emen managemen is finding a clea p oduc
de elopmen oadmap. Huawei has been en o cing he "cus ome -
cen e ed" concep o a long ime, unde s anding consume s’needs
unde a ious scena ios and cases, and disco e ing cus ome s’pain
poin s in o de o imp o e unde s anding o consume demand (C
21
).
Ren Zheng ei belie es ha "consume s should be he end use s, no
jus he ma ke ope a o s," and when demand shi s, Huawei should
ha e sensi i e insigh s (C
22
). Th ough he collec ion, analysis, dis i-
bu ion, implemen a ion, and e ifica ion o demand, Huawei imple-
men s he o e all managemen o consume demands om business
oppo uni y o alue ealiza ion. Demands a e sepa a ely p ocessed
in h ee ca ego ies: long- e m demand, mid- e m demand, and p od-
uc package demand, while eme gency demand is handled h ough a
plan change eques (PCR) and added o he cu en ly de eloping
p oduc o solu ion design o simul aneously ulfill bo h he mid- o
long- e m as well as he eme gency demands o consume s (C
23
).
IPD flow in eg a ion
The IPD p ocess di ides he NPD in o six s ages: concep , plan-
ning, de elopmen , alida ion, launch, and li ecycle managemen
(see Fig. 1). The e is a clea goal o each o he s ages, and ou deci-
sion checkpoin s (DCPs) a e defined in he p ocess: concep DCP,
planning DCP, a ailabili y DCP o he p e-launch pe iod, and li ecycle
e mina ion DCP o he pos -launch pe iod (C
31
). The e a e consis-
en measu emen c i e ia o each DCP, and he p oduc can only
p oceed o he nex DCP a e he p esc ibed wo k and quali y
equi emen s a e me and comple ed (C
32
). Mo eo e , echnology
e iew poin s (TR) a e placed in he concep , planning, and de elop-
men s ages o ensu e ha he end- o-end managemen equi e-
men s a e sa isfied (C
33
).
S uc u al e o m
A e he implemen a ion o IPD, Huawei unde wen a s uc u al
change om a pu e R&D mode o a c oss-depa men al eam collabo-
a i e de elopmen and join esponsibili y mode. The c oss-
depa men al eam model is o ganized as a ma ix. The eam man-
age is appoin ed by he company and is esponsible o he eam
esul s, and he membe s a e selec ed om he unc ional depa -
men s, co e ing de elopmen , es ing, R&D, ma ke ing, echnical
se ices, finance, supply, p ocu emen , quali y con ol, and o he
depa men s (C
41
). The In eg a ed Po olio Managemen Team
(IPMT) and he In es men Re iew Boa d (IRB) a e he managemen
eams. The IRB coo dina es s a egy and in es men managemen
ac oss depa men s and di isions, while he IPMT is esponsible o
he basic uni o undamen al business and p oduc ion and also coo -
dina es he senio eam ac oss depa men s and manages he p oduc
po olio (C
42
). The PDT is esponsible o he execu ion. They com-
ple e he p ojec objec i es in a imely, accu a e, and high-quali y
manne unde he cons ain o limi ed in es men esou ces (C
43
).
Huawei pe o ms end- o-end collabo a i e managemen o new
p oduc s om de elopmen , es ing, p oduc ion, and ma ke ing, and
he c oss-depa men al eam is esponsible o he o e all p ojec
success (C
44
). The pa allel enginee ing de elopmen mode enables
manu ac u ing, p ocu emen , and ma ke ing p epa a ion o be com-
ple ed a he same ime as p oduc es ing, he eby sho ening he
de elopmen ime (C
45
).
E ec i eness o Huawei’s IPD p ac ice
Unde he guidance o IBM consul an s, Huawei ully imple-
men ed IPD in 10 yea s. An objec i e e alua ion needs o be con-
duc ed o de e mine whe he he expec ed esul s ha e been
achie ed.
Sho - e m pain poin solu ions o IPD
In 1998, IBM consul an s diagnosed Huawei and lis ed dozens o
p oblems in i s R&D managemen , such as igno ing cus ome needs
and he exis ence o depa men alism. We examine he main p ob-
lems and hei solu ions (see Table 2)(D
11
). In an in e iew wi h Fo -
une in 2012, Xu Zhijun said, "Al hough ou R&D eams consis o
mo e han se en y housand people, hey can s ill ca y ou hei
wo k in an o de ly manne , and his is he esul o ou coope a ion
wi h IBM o ca y ou he PD e o m" (D
12
).
Medium- e m economic gains om IPD
Huawei’s IPD implemen a ion ocuses on he eliabili y, manu ac-
u abili y, deli e abili y, and se iceabili y o p oduc s a he on -
end managemen o NPD o imp o e he e ficiency o manu ac u ing,
supply, sales, deli e y, and se ice. A e Huawei’so ficial IPD imple-
men a ion, ollowed by fi e yea s o p ac ice, he a e age p oduc
R&D cycle was sho ened om 84 weeks o 54.5 weeks; he p oduc
ailu e a e dec eased om 17 % o 1.3 %, and he cus ome sa is ac-
ion a ing inc eased om 79 % o 85 % (D
21
). Sales e enue g ew
om US3.8 billion in 2003 o US22.3 billion in 2008, wi h an a e age
annual g ow h a e o 77 % (D
22
). Compa ed wi h PRTM ecom-
mended a ge s and IBM’s ac ual g ow h, Huawei’s IPD p ojec s
achie ed he expec ed gains (D
23
) (see Table 3).
Long- e m alue o he IPD p ojec
The alue o he IPD p ojec is a - eaching and mul i-dimen-
sional. Ren Zheng ei’s iew ha " he essence o IPD is om oppo u-
ni y o comme cial ealiza ion" (D
31
) e eals he co e ole o IPD in
he p ocess o alue c ea ion.
Fi s o all, he IPD p ojec has ac i ely explo ed an inno a i e
managemen mode. Huawei has always ega ded echnology in es -
men as a s a egic mo e, s i ing o main ain a leading posi ion in
he field o echnology (D
32
). Howe e , he co e o business logic is o
mee cus ome needs. The e o e, Huawei has buil a i uous ci cle
mechanism be ween inno a ion managemen and business model.
Table 2
Huawei’s esea ch and de elopmen pain poin s and hei solu ions.
# P oblem Desc ip ion Solu ion
1 Igno ing consume needs Lack o accu a e, o wa d-looking a en ion o consume needs;
useless wo ks a e epea ed and esou ces a e was ed.
Th ough demand managemen , ensu e ha he company is on he
igh ack
2 Depa men alism Depa men wall, sepa a e go e nance, causing in e nal ic ion. Implemen p ojec managemen and enhance c oss-depa men al
collabo a ion.
3 Lack o c oss-depa men al
collabo a ion
Each depa men has i s own p ocess, bu he depa men p ocess
depends on manual connec ion, and he ope a ion p ocess is
sepa a ed.
O ganiza ional s uc u e changes, he impo o a ma ix o ganiza-
ional a chi ec u e.
4 Depend on pe sonal abili y Indi idual he oism, and he oic success is ha d o eplica e. Implemen a pa allel de elopmen model o encou age eam col-
labo a ion.
5 P ojec managemen chaos P ojec plan is in alid, p ojec implemen a ion chaos, no change
con ol, e sion flooding.
Implemen IPD p ocess, implemen ga e managemen in s ages o
ensu e co ec wo k.
C. Wang, M. Chen, Q. Wang e al. Jou nal o Inno a ion & Knowledge 9 (2024) 100482
6
Tha is, o de elop p oduc s based on cus ome needs, and o build a
u u e a chi ec u e pla o m based on echnology (D
33
). The es ab-
lishmen o his model has buil a b idge be ween inno a ion man-
agemen and business alue c ea ion o en e p ises.
Secondly, he IPD p ojec upda es he concep o p oduc de elop-
men . Huawei has changed om adi ional echnology o ien a ion
o cus ome demand o ien a ion, and ega ds new p oduc de elop-
men as an in es men beha io . The concep o "enginee ing busi-
nessman" (D
34
) p oposed by Ren Zheng ei emphasizes he business
li e acy ha enginee s need o possess in he p ocess o p oduc
de elopmen . He u he poin ed ou ha he in en ion o scien is s
can only be ans o med in o a comme cially aluable p oduc when
he window o oppo uni y o he eal gene a ion o cus ome needs
a ises (D
35
). This change o concep will help en e p ises o g asp
ma ke demand mo e accu a ely and imp o e he success a e o
p oduc de elopmen .
In addi ion, he IPD p ojec has also enhanced he sus ainable
inno a ion managemen capabili y o en e p ises. Unde he guid-
ance o IBM consul an s, a e mo e han en yea s o unde s anding
and diges ion, Huawei has success ully in eg a ed IPD in o i s own
o ganiza ional sys em, and combined i wi h BLM (Business Leade -
ship Model) o build an i e a i e closed-loop o inno a ion manage-
men and business alue. This IPD pa adigm o c oss-depa men al
eam model is especially sui able o he managemen o la ge and
complex p ojec s, and helps en e p ises o achie e mo e e ficien and
sys ema ic inno a ion managemen .
Finally, he IPD p ojec has imp o ed Huawei’s abili y o cope
wi h unce ain y. Huawei has been able o main ain s eady busi-
ness g ow h in he ace o con inued sanc ions and a se ies o chal-
lenges om he US go e nmen . Al hough he limi ed supply o
chips has had a ce ain impac on some businesses in he sho
e m, Huawei has success ully coped wi h he challenges b ough
by ex e nal unce ain ies by adjus ing i s business s uc u e and
inc easing R&D in es men . This ully demons a es he impo an
ole o IPD p ojec s in enhancing he esilience and isk esis ance
o en e p ises.
In summa y, Huawei’s IPD p ojec has success ully p o ided a
p ac icalsolu ion oadd esspainpoin sin hesho e m.F oma
medium- e m pe spec i e, he p ojec has basically achie ed he
expec ed e enue a ge s. And om a long- e m iewpoin , IPD has
no only b ough ema kable p og ess o Huawei in e ms o inno-
a i e managemen models and p oduc de elopmen concep s,
bu also achie ed ou s anding esul s in enhancing con inuous
inno a ion managemen capabili ies and he abili y o espond o
unce ain y. These achie emen s undoub edly injec powe ul
momen um in o Huawei’s sus ainable de elopmen and p o ide
solid suppo .
Resea ch discussion
The alue and expandable scope o he IPD pa adigm a e ho -
oughly examined h ough he lens o Huawei, illus a ing i s signifi-
cance in comp ehending he essence o IPD and i s adap abili y
wi hin complex en i onmen s. As a p ominen p ac i ione o he IPD
model, Huawei’s expe ience unde sco es he model’s wo h and
un eils po en ial oppo uni ies o op imiza ion and expansion.
Huawei’s success ul expe ience wi h he IPD model
By adop ing he IPD model, Huawei has achie ed p ocess-o i-
en ed, s anda dized, and sys ema ized p oduc de elopmen , consid-
e ably bols e ing i s co po a e compe i i eness. I s success ul
implemen a ion is e iden in se e al key a eas:
Fi s ly, Huawei’s senio managemen eam played a pi o al ole in
in oducing and embedding he IPD model. Thei p o ound unde -
s anding o IPD’s co e p inciples and unanimous commi men
ensu ed a seamless ans o ma ion p ocess. This high-le el endo se-
men was undamen al o he model’s e ec i e ollou , as i equi es
genuine leade ship buy-in o ca alyze o ganiza ional change.
Secondly, Huawei o ged a obus s a egic execu ion sys em.
Alongside IPD, he company in eg a ed he Business Leade ship
Model (BLM), aligning IPD wi h BLM o gua an ee s a egic synch o-
nici y and e ficien execu ion. This in eg a ion no only unde pins
IPD’s success ul deploymen bu also aligns he en i e o ganiza ion
wi h s a egic objec i es, ele a ing o e all co po a e pe o mance.
Thi dly, Huawei p io i ized o ganiza ional cul u al inno a ion. In
esponse o IPD-d i en changes, he company p oac i ely eshaped
i s cul u e, os e ing a cus ome -cen ic, collabo a i e, and open en i-
onmen conduci e o sus ained i ali y. This cul u al shi acili a ed
employee unde s anding and accep ance o he IPD model, encou ag-
ing c oss-depa men al syne gies and boos ing he o ganiza ion’s
inno a i e p owess.
Las ly, Huawei implemen ed a scien ific incen i e mechanism.
Recognizing he IPD model’s emphasis on knowledge c ea ion, Hua-
wei capi alized on knowledge asse s, con e ing hem in o co po a e
alue and achie ing knowledge app ecia ion h ough sus ained capi-
al g ow h. This mechanism e ec i ely mobilizes employee engage-
men and c ea i i y, powe ing he IPD model’s con inued
implemen a ion.
Huawei’s expe ience wi h he IPD model unde sco es he impo -
ance o ailo ing i s design o sui specific en e p ise con ex s.
O ganiza ions di e in s uc u e, cul u e, and managemen ma u i y,
necessi a ing a cus omized app oach o IPD adop ion ha aligns wi h
hei unique cha ac e is ics. Concu en ly, emphasis on employee
aining and communica ion h oughou he ans o ma ion ensu es
s akeholde unde s anding and accep ance, acili a ing o ganiza-
ional-wide adop ion.
In conclusion, Huawei’s success ul IPD model implemen a ion
s ems om senio leade ship consensus, a obus s a egic execu ion
sys em, cul u al inno a ion, and a scien ific incen i e amewo k.
These insigh s o e aluable benchma ks o o he en e p ises seek-
ing o le e age he IPD pa adigm and p o ide impe us o i s b oade
dissemina ion and applica ion.
Limi a ions o Huawei’s IPD p ac ice
The IPD (In eg a ed P oduc De elopmen ) pa adigm is widely
ecognized as an e ec i e p oduc de elopmen me hod in he indus-
y. I emphasizes c oss-depa men al collabo a ion, c oss-domain
in eg a ion, and a ocus on ma ke and cus ome demands. Howe e ,
no me hod o heo y is pe ec , and he IPD pa adigm does ha e
some limi a ions in i s applica ion. Despi e Huawei’s esilience in
dealing wi h US sanc ions, he company has aced challenges in
Table 3
IPD p ojec gains.
Me ic PRTM’s expec ed gains IBM’s gain (in 3 yea s) Huawei’s gain (in 5 yea )
Dec ease in Ma ke ing Time 40 %»60 % 71 % o High-end p oduc s and
90 % o Middle-end p oduc s
50 %
Dec ease in R&D Was e 50 %»80 % 76 % 95 %
Compounded Annual G ow h Ra e −80 % 77 %
C. Wang, M. Chen, Q. Wang e al. Jou nal o Inno a ion & Knowledge 9 (2024) 100482
7
supply chain managemen and echnological inno a ion. By combin-
ing lean en ep eneu ship heo y and use inno a ion heo y, we can
u he explo e he limi a ions o Huawei’s IPD pa adigm in e ms o
en ep eneu ship, cus ome insigh , and agile de elopmen .
En ep eneu ial philosophy
While Huawei ecognizes he "window o oppo uni y" p esen ed
by echnological leade ship, i s ill aces sho comings in in eg a ing
echnological ans o ma ion, inno a ion, and en ep eneu ship. The
IPD pa adigm places significan emphasis on he p ocess and man-
agemen o p oduc de elopmen bu is less e ec i e in s imula ing
in e nal en ep eneu ial passion and p omo ing he comme cializa-
ion o inno a i e achie emen s. To o e come his limi a ion, Huawei
can conside os e ing an "en ep eneu ial cul u e" by es ablishing
in e nal en u e unds and o ganizing en ep eneu ship compe i-
ions o s imula e employees’inno a i e spi i and en ep eneu ial
en husiasm. Addi ionally, he company should c ea e a alue loop o
echnological achie emen s o ensu e ha echnological inno a ions
can be ansla ed in o comme cial alue and achie e an e ec i e con-
nec ion be ween echnology and he ma ke .
Cus ome insigh
Al hough he IPD pa adigm iden ifies business oppo uni ies
h ough ma ke managemen and demand managemen , he e is s ill
oom o imp o emen in e ms o business insigh . The demand
managemen p ocess has no ully accoun ed o cus ome segmen a-
ion and ocus, no has i p o ided deep insigh in o cus ome wo k-
flows, pain poin s, and benefi s. To add ess his, Huawei can enhance
he efinemen and dynamism o cus ome p ofiles and mo e accu-
a ely g asp cus ome needs and ma ke ends h ough big da a
analysis, use esea ch, and o he means. Fu he mo e, Huawei can
p io i ize he de elopmen and managemen o lead use s o achie e
di e en ia ed p oduc compe i ion by apping in o and shaping ma -
ke demand.
Agile de elopmen
Rega ding agile de elopmen , Huawei has made p og ess in
implemen ing agile enginee ing bu s ill needs o s eng hen he
de elopmen and i e a ion o he minimum iable p oduc (MVP).
Agile de elopmen equi es companies o espond quickly o ma ke
changes and achie e apid p oduc i e a ion and upg ading h ough
con inuous expe imen a ion, op imiza ion, and lea ning. To achie e
his goal, Huawei can enhance i s unde s anding and applica ion o
MVP concep s and alida e he easibili y and ma ke accep ance o
p oduc ideas h ough apid p o o yping and es ing. Simul aneously,
an e ec i e "de elop-measu e-lea n" eedback loop should be es ab-
lished o ensu e con inuous p oduc imp o emen and op imiza ion
du ing he de elopmen p ocess.
In conclusion, while he IPD pa adigm has limi a ions in e ms o
en ep eneu ial ideas, cus ome insigh , and agile de elopmen , Hua-
wei can o e come hese challenges and achie e mo e e ficien and
inno a i e p oduc de elopmen by os e ing an en ep eneu ial cul-
u e, enhancing cus ome insigh , and deepening i s commi men o
agile de elopmen p ac ices.
Op imiza ion o he IPD pa adigm: An in-dep h analysis and p ospec o
Huawei case
Huawei’s p ac ical expe ience p o oundly e eals ha he IPD
pa adigm is impe ec and i s inhe en scalabili y s ill needs u he
explo a ion. Amids he su ging ide o digi aliza ion, en i onmen al
unce ain y has inc eased significan ly. This demands ha he IPD
pa adigm cons an ly adap s o he new ma ke en i onmen and
echnological changes. The e o e, i is impe a i e o us o shi he
IPD pa adigm om a adi ional p oduce -o ien ed inno a ion
app oach o a use -o ien ed one. This shi s eng hens ou keen
insigh in o ma ke ends and enhances ou abili y o espond
quickly. Based on an in-dep h analysis o he limi a ions o he IPD
pa adigm, we p opose op imizing i by in eg a ing he leading use
heo y and lean en ep eneu ship heo y. (See Fig. 2).
Iden i ying leading use s
As ma ke pionee s, leading use s possess excellen p oblem
insigh , solu ion de elopmen , and e ifica ion capabili ies (Von Hip-
pel, 2017). They can assis en e p ises in add essing he mos isky
and cos ly aspec s o new p oduc de elopmen , such as equi emen
iden ifica ion, scheme design, and p elimina y inspec ion. By inco -
po a ing leading use s in o IPD, en e p ises can gain deepe insigh s
in o bo h echnology and he ma ke (Von Hippel & Kaula z, 2021),
p o iding s ong suppo o p oduc inno a ion.
Fig. 2. Ad anced IPD pa adigm.
C. Wang, M. Chen, Q. Wang e al. Jou nal o Inno a ion & Knowledge 9 (2024) 100482
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