In business management theory, the smiling curve is a graphical depiction of how value added varies across the different stages of bringing a product on to the market in an IT-related manufacturing industry. The concept was first proposed around 1992 by Stan Shih, the founder of Acer Inc., an IT company headquartered in Taiwan. According to Shih's observation, in the personal computer industry, the two ends of the value chain – conception and marketing – command higher values added to the product than the middle part of the value chain – manufacturing. If this phenomenon is presented in a graph with a Y-axis for value-added and an X-axis for value chain (stage of production), the resulting curve appears like a "smile". Based on this model, the Acer company adopted a business strategy to reorient itself from manufacturing into global marketing of brand-name PC-related products and services. Acer accordingly invested heavily in R&D to develop innovative technology. The concept later became widely cited to describe the distribution of value-adding potentials in other types of industry to justify business strategies aimed at higher value-adding activities. Theory origins BYD's Wang once lamented that Chinese companies had only learned how to organize workers, but had not learned how to organize engineers, and therefore could only make a living in the most inhospitable terrain - manufacturing. If it could use advanced methods to organize a large number of engineers, then Chin industry would be more profitable. Typically, knowledge-intensive organizations can find ways to organize engineers. Management expert Peter Drucker said: "The most important management in the 21st century is to manage those intelligent workers." This is the most successful aspect of what Huawei has done among Chinese companies. Among its employees, technology research and developing staff accounted for 46%, marketing and service staff accounted for 33%, management and other personnel accounted for 9%, and the remaining 12% are manufacturing workers. For 20 years, Huawei has maintained this ratio, and its human resource allocation shows “high developing and marketing on both sides" of the "smile curve." Competitive pressure of globalization Given the trend of globalization of high-tech product markets, the term "chase, catch, run, jump, touch" can be used to describe the competitive pressures of the industry. Competitive enterprises continue to catch up, ready to catch up with the leaders, and those leading companies continue to run forward in order to stay ahead, and finding methods