Values & Philosophy
Speed, Innovation and SBU
Since 2002, Haier’s development theme has been Speed, Innovation and SBU.
Speed helps create customer resource. In other words, Haier wants to be the early bird catching the worm.
Innovation is to help customers create value provided customer resource is ensured.
If every employee becomes a SBU, loyalty of customers will be achieved.
Speed
Why speed?
The fantastic efficiency of the Internet makes us believe that slow players will sure fail. Those who have no relation with the Internet will be washed out. Those using the Internet in business practice but having weak competitiveness will also be eliminated from the competition in the marketplace.
Speed plays a significant role in order acquisition, fulfillment and follow-up service.
Aim of fast speed
Fast speed is aimed at realizing zero stock, zero distance and zero operating capital.
Innovation
Why innovation?
In current depressed market, fast speed is gained by innovative thinking and spirit.
The obtained market shares cannot be continued if no innovation is pursued. During the innovation process, innovation should be combined with speed.
The decentralized organizing structure is aimed to get the enterprise involved in the market practice. The entire process of management and production are concentrated upon satisfying the needs of both market and innovation.
How to help customers create value by innovation
In current network age, value of customers is realized by two methods, ie. customization and globalization. In the current market where supply exceeds demand, buyers have more options. Only those who satisfy their individual demands will be chosen by the buyers.
Aim of innovation: acquisition of valuable orders under the following conditions:
Essence of innovation:
Approach of innovation: innovative simulation and introduction.
SBU
What’s SBU?
SBU is an abbreviation of Strategic Business Unit
If not only every division, but also every employee is a SBU, Haier’s business strategy will be carried out and shouldered by all employees. At the same time, the innovation of every employee will ensure that Haier’s strategy is successfully implemented.
Why SBU?
SBU is a carrier of efficient and innovative performance. Those who do not pursue fast speed and innovation are not SBUs. Managers have to fulfill business assignment. If subordinates are not SBUs, the enterprise cannot satisfy individual customer needs. In other words, what SBU demonstrates is fast speed innovation. With this philosophy, Haier’s objective of fast speed innovative production are quantified for every employee. As a result, every employee will have to carry out technical innovation for production or management efficiency improvement for customer need satisfaction. Haier’s One-Stop service and B-to-E process is in operation to optimize customization production.
How to become SBU?
Four essential requirements are market objective, purchase order, sales achievements and market reward. These are goals of the company to achieve and break down for every employee.
Market objective: competitive power with fast speed creating customer resources
Purchase order: acquiring valuable purchase orders with innovative technology to achieve market objective.
Sales achievements: quantitative data on customer satisfaction gained by order fulfillment and displayed by the company information system
Market reward: pay allocated from additional income created by marketing performance and used as incentive for employee enthusiasm in better performance
Function of SBU
What does SBU mean to the company, employees and customers?
To employees, SBU means innovation, and employees will demonstrate their values by helping customers create values.
To the company, SBU means corporate competence, which cannot be copied by competitors if every employee becomes a SBU.
To customers, SBU means a network age and loyalty to the manufacturer and its brand.
If every employee carries out innovation, customer demands can always be satisfied.
Features of SBU
Feature 1: Only marketing target and position, not senior management or subordinate, considered in business practice.
Feature 2: Only market changes, not time to start nor place to finish, focused upon for innovation.
Feature 3: Only competitive end market could we are encouraged by to energetically and efficiently realize our ambitious goal.