Everything adapts to survive. Darwin’s theory of evolution applies not only to biology but also to organization. With development of technologies such as logistics network and artificial intelligence, the era has seen reorganization of commercial relations; enterprises, experts and scholars across the globe have begun to seek new management paradigms to deal with the challenges of the IoT era. International strategic management master Gary Hamel finally found the answer in Haier Group after having searched for long. Haier Group has not only created Rendanheyi Model, the business model in IoT era, but also kept making new achievements through practices.
In order to explore the transformation of the business model in the IoT era, Haier Group and Gary Hamel Management Lab (MLab) have jointly organized the 1st International Rendanheyi Model Forum in 2017, officially opening up a new era of IoT-based Management paradigm. On September 20 this year, the 2nd International Rendanheyi Model Forum will once again kick off, providing guidance for enterprises and scholars across the globe in the IoT era.
Since the 21st century, the popularity of Internet technology has accelerated the dissemination and sharing of information and knowledge. Today, the Internet extends and reaches the field of physical objects, and IoT thus came into being; it reconnects all industries, making speed, breadth, depth and density of the connection between people and people, people and organizations, elements, and organizations; individuals are playing an increasingly important role in this connected society.
The traditional management paradigm has been unable to adapt to uncertainties of the current world yet, while Internet companies fail to change the logical system of traditional management models either. The transfer of management space only brings vitality for a short term, and it cannot meet the massive requirements of the “innovation and creation rights” in the IoT era.
American philosophical scientist Thomas Sammual Kuhn believes that when a stable paradigm cannot offer a proper way to solve problems, it is to weaken and a paradigm shift will occur. Therefore, the whole world is calling for a shift to the IoT-based management paradigm.
However, the establishment of the new paradigm requires a long-term process of discussion. The Rendanheyi Model Forum is to provide a platform for the confused management scholars and entrepreneurs to tap into the IoT paradigm. It will bring together founders, participants, researchers, and promoters of the IoT-based management paradigm to keep exploring and iterating; the 2nd International Rendanheyi Model Forum will be upgraded again, releasing the latest theoretical and practical results of the IoT-based management paradigm.
Top experts participating in the 2nd International Rendanheyi Model Forum come from various research fields such as organization, leadership, strategy, ecology, etc. Masters including Gary Hamel, a strategic master in management, Danah Zohar, founder of quantum management, Rosabeth Moss Kanter, chief management professor at Harvard University, David J.Teece, founder of Dynamic Capabilities Theory, and Christopher Nurco, Chief Innovation Officer of Interbrand will attend the forum and share the latest achievements regarding Haier’s practices from perspectives of their own fields.
The IoT has changed the competitive way of companies, as well as the competing fields during the process. During this forum, experts will use the Rendanheyi practices of Haier Group as a blueprint to explore the way of building ecological brands in the IoT era. For example, Christopher Nurco will combine the practices of Haier Group to figure out the direction of brand development in the future for all.
Why the Rendanheyi model can be used as the practice model by top management theory researchers from various fields? The fundamental reason lies at the universality of Rendanheyi model, which puts human value first. The Rendanheyi model has subverted the assumptions of the “economic person” and “social person” for more than 100 years since the traditional industrial revolution; it builds open and shared business model based on the premise of “self-motivated person”, turns passive employees into innovative entrepreneurs, which really inspires people’s ability to innovate.
As the IoT Paradigm initiated by Haier Group, the Rendanheyi model has facilitated the Group to achieve sustainable growth. When it comes to performance, in H1, 2018, global turnover of Haier Group reached RMB 119.419 billion, with a year-on-year increase of 14%; the total taxes and profits reached RMB 7.9958 billion, up 23.8% year on year; it is listed on Fortune Global 500.
From the perspective of international standards, as a practice of Rendanheyi, Haier’s COSMOPlat has come into being, and was selected as the leader of establishment for international standards; From the brand perspective, the ecological brand was proposed as a brand building method in the IoT era, and was rewarded as “Top 50 Going-out Brands in China, 2018”, and “Top 500 Valuable Brands in China, 2018”.
At the 2nd International Rendanheyi Model Forum, Mr. Zhang Ruimin, Chairman of the Board of Directors and CEO, Haier Group, will present the theoretical innovation achievements related with the IoT model. Among them, Mr. Zhang Ruimin initiated the “3E” System, and is to ignite the IoT Paradigm.
The “3E” system refers to the ecosystem, ecological income, and ecological brand. “3E” will provide global enterprises with an innovative vane for the transformation in the IoT era. Simone Cicero believes that in the IoT era, the purpose of the organization shifts from providing consumer opportunities to providing value creation opportunities. This is exactly what the “Three Ecos” aims to achieve: to bringing various innovation entities together. Haier creates a two-way learning interaction through temperature-sensitive contacts and networked appliances contacts, which constantly creates new opportunities for innovation and provides unlimited entrepreneurial space for participants. In terms of income, it is the infinite increase of ecological income; the added value is shared by all ecological parties.
“3E” of Haier Group outlines a blueprint for interstellar ecology for the IoT paradigm, and “ecology” will become the main theme of the IoT paradigm.