Rebirth of the Wild Age

Regarding Mr. Ren, there is such a joke inside Huawei:

Mr. Ren's first car was a second-hand Peugeot. In the summer of 1998, he bought a brand new BMW to accompany IBM President Gerstner.

Mr. Ren himself drove on Shencheng Street. He opened the sunroof, turned on the stereo very loudly, and quickly passed Gerstner's car. He tilted his head and shouted, Have you ever driven a BMW?

Gerstner: ?

Mr. Ren asked again: Have you ever driven a BMW?

Gerstner: ...

When asked for the third time, Gerstner finally responded: What are you trying to say?

Mr. Ren asked, Where are the brakes on the BMW?

Regardless of whether this joke is true or not, the time background in which it happened was indeed in the summer of 1998.

In 1997, Huawei's annual sales exceeded 8 billion yuan. Due to the rapid expansion of the company's scale, organizational management problems have become more and more serious, internal friction, inefficiency, and excessive waste in the department. Mr. Ren has no way to deal with this situation, so he personally led a team to the United States to learn from it.

After inspecting American companies for many years, Mr. Ren decided to worship IBM as his teacher.

IBM agreed to accept this student, but the tuition fee is 2 billion yuan... This is not a joke, it is true. At the end of 1997, Mr. Ren did not bargain, and directly agreed to the sky-high tuition fee of 2 billion yuan!

How is the tuition fee of 2 billion yuan calculated?

From 1998 to 2003, IBM dispatched 70 senior consultants to Huawei, each of whom charged between US$300 and US$680 per hour, plus round-trip air tickets, board and lodging, and other expenses, adding up to five years. 2 billion RMB.

Perhaps it was Mr. Ren's non-bargaining attitude that won the respect of IBM's president. Gerstner actually came to China in person this year, and Mr. Ren handled some problems hand in hand.

For more than ten years since then, Huawei has been learning from IBM, from management to research and development, and fully implements IBMization.

The president of ibm, Gerstner, is also a ruthless person. He was ordered in the face of danger. He completed the comprehensive reform of ibm in only 5 years as the president, spent more than 8 billion US dollars in severance pay, and laid off 150,000 employees. one-third of the total workforce. In his hands, IBM's annual sales increased by 10 billion US dollars, and its stock market value increased by 4 times.

Today, Huawei's cash flow is extremely tight, but the 70 consultants sent by IBM have been working in Huawei, spending an average of 400 million yuan in tuition fees every year.

And Huawei's research and development expenses this year must exceed 800 million yuan!

This is unbelievable in China in 1998. The market value of Jianlibao is estimated to be about 4 billion yuan, and it has already firmly taken the top spot in the beverage industry, while Huawei's consulting fees and R\u0026D expenses this year add up to 1.2 billion!

Song Weiyang sounds awesome, but his personal wealth is like a little brother in front of Huawei.

Of course, with the rapid development of Shenzhou Science and Technology Company, Song Weiyang will not be left too far behind. PHS is like a money printing machine, which makes the total assets of Shenzhou Science and Technology Company change every month. Now it has been valued by investment companies at 3 billion yuan.

...

deep city.

When Song Weiyang met Mr. Ren, the other party looked tired and shook hands with him vigorously.

Hello Boss Song, welcome!

Mr. Ren can just call me Xiao Song. You are a senior, and I am a junior.

Mr. Ren rubbed his face, seemed to be more refreshed, and said with a smile: Then I'll sell the old man and call you Xiao Song. I'm sorry, I just came back from a business trip this morning, and I only slept for two hours, and I'm still a little sleepy now.

Song Weiyang said: How about I come back in the afternoon and you sleep for a while?

No, I'll just have a couple of sips of tea. Mr. Ren said.

Song Weiyang didn't talk nonsense, and asked directly: Huawei's funding is very difficult?

Mr. Ren said: It can last for a while, and when the gsm research and development project produces results, it will be able to withdraw funds from the market.

In fact, it is useless to produce results.

Because from the day Huawei started to develop gsm technology, it faced all-round encirclement and suppression by foreign companies. Huawei's gsm technology will be able to produce the first results at the end of this month, but it will not be sold at all. It is one aspect of foreign companies’ monkey-style price cuts. More importantly, they played tricks, which made Huawei unable to receive orders for half a year, including orders for fixed-line equipment.

Until the spring of next year, Mr. Ren asked his friends to go directly to the central leadership and convey his opinions. It roughly means: Now there are many false accusations against Huawei, and there are rumors about Huawei in the society. Please the central government immediately investigate Huawei. If the situation is true, I will plead guilty and I can go to jail. If the situation is not true, please help Huawei to clarify. , we can't hold it anymore.

The central government quickly set up an investigation team, and after more than a month of investigation, there were only minor problems. So two leaders from the central government successively issued instructions to clarify Huawei's grievances, and Huawei was able to receive orders normally.

Regarding those false accusations and rumors, not only did Huawei not be able to sell products, but it also prevented Huawei from obtaining loans from banks.

Mr. Ren was very honest and did not hide anything. He briefly introduced Huawei's situation and said, Huawei's gsm project is progressing very smoothly. Financing. The risks are huge, and the benefits are also huge, Xiao Song, you have to think carefully about it yourself.

In terms of the research and development of the gsm project, Huawei can be said to be riding a tiger, or it can be said to be ruined.

In order to research and develop the gsm technology with unknown prospects, in the case of financial difficulties, Huawei directly cut off the mature but relatively backward cdma is95 research and development team. Other R\u0026D teams have also been cut to pieces, or temporarily suspended. It is really insufficient R\u0026D funds, so they can only choose one of them to go to the black.

It can still last now, and in two or three months, Mr. Ren really has the idea of ​​jumping off the building. In order to alleviate the financial pressure, he flicked the employees' wages into the company's internal bank, and flicked the employees' dividends and bonuses to buy company shares, because he couldn't get a penny from the outside.

Historically, Mr. Ren has sought investment from many companies. But with rumors flying all over the sky, everyone feels that Huawei is going to go bankrupt, so who would dare to vote?

Song Weiyang said, I don't have much money in my hand.

Ren Zongdao: Huawei has no bad debts, and its finances are normal, but it lacks working capital.

Song Weiyang said: I personally made a fortune speculating in Hong Kong futures. Converted into RMB, there are still about 50 million (I borrowed tens of millions to Chen Tao and other high-level executives to buy Xifeng's original stock). Over there, Jinniu Capital, It can also mobilize 80 million to 100 million funds for investment at any time. If it is not enough, China Science and Technology Company can also invest money. How much does Mr. Ren need? I will help with all my money.

This is a beautiful statement, but Song Weiyang actually values ​​Huawei's development prospects.

But Mr. Ren didn't know, he was already moved by Song Weiyang. After running through so many connections and looking for so many friends, they couldn't get any investment. Instead, Song Weiyang, a stranger who had never met before, agreed to help raise funds without saying a word.

A friend in need is a friend!

Mr. Ren thought for a while and said, One hundred million.

No problem, I personally invest 50 million yuan, and Jinniu Capital invests 50 million yuan. Song Weiyang said.

After solving the financial pressure, Mr. Ren was in a good mood, and asked with a smile: Xiao Song, do you trust me so much? Do you believe that Huawei can get out of the predicament?

Song Weiyang asked back: How much is Huawei's research and development expenses this year?

Mr. Ren said: So far, more than 700 million yuan has been spent.

Song Weiyang said: Is there another company like this in the whole of China?

Mr. Ren was stunned for a moment, then laughed and joked, Oh, when the China Telecom Bureau asked me to cooperate with PHS, I should have agreed to it. Now I don't need to ask you for investment.

That's true. Song Weiyang also laughed.

Huawei is not so high-minded, it's no wonder why backward technology is not used.

Historically, Huawei has seen PHS's high profits, and also followed the trend to manufacture PHS mobile phones. Mr. Ren probably regretted it to death.

Song Weiyang said suddenly: By the way, Mr. Ren, I formed a Jinniu club, and the members are all industrialists. They meet regularly for three days every year, and they don't talk about business. They just talk about some topics and exchange ideas with each other. Business experience and ideas. If you feel unhappy, you can withdraw from the Taurus Club at any time. I want to invite Mr. Ren to join, is it feasible?

Mr. Ren asked, Who are the members?

Song Weiyang reported the names of the members of the Golden Bull Club, and Mr. Ren immediately said: I know a few of them, and I have met them. Since they are there, and you, Xiao Song, initiated the establishment, I agree to join the Golden Bull Club.