Haier Internet transformation: An aircraft carrier split n small boats

How does Haier, which has exceeded 200 billion yuan in scale, rebuild? This is the Haier Group chairman of the Board of Zhang thinking. The fact is that traditional manufacturing is undergoing a baptism of the internet era, when the demographic dividend disappears and manufacturing profits become thinner; as the forces of the Internet start to erode the traditional market, the size of the home appliance market tends to saturate ... Haier as the representative of the Home appliance Company's transformation began to become urgent.

Haier chose the initiative to embrace the Internet, but in the face of a strange field, all the reform and prospects become uncontrollable. To avoid the threat of an iceberg hit by the sea giant, Zhang chose to split the ship into multiple boats. "I am the architect of the ship, the designer is to take down the ship, into a lot of small boats, these boats together to become a fleet." This is the hardest. Zhang recently said in an interview with the media.

Zhang at the same time understand that the Haier split into a number of small boats, how to step in unison to let them drive farther away, this is Haier's next biggest challenge. Inevitably, these boats will be hit by a wave of waves, and a handful of less powerful boats will disappear.

Why Choose split?

Current situation: The traditional manufacturing body is huge, Haier currently has 80,000 employees, the transition is not easy. Skyworth Group President Yang Dongwen has been interviewed Sohu it said, Skyworth has more than 40,000 employees, turn more substantial, choose from where to turn all need to be accurate, otherwise turn too quickly easily capsized.

Objective: To make the hull light, not bound by the weight of the original, can quickly turn around.

How do I split?

Way: These n boats are equivalent to the N small micro enterprises inside the Haier.

Objective: To let these small micro-enterprises have "self-hematopoietic" function, to create more in line with the Internet age products, services, profit patterns. Eventually provide value-added to the enterprise, become the scale and profit of the recyclers.

Role: In fact, the structure of Haier's restructuring. That is, Haier abolished the original hierarchy, so that the organizational structure of flat, so that these small micro-enterprises into entrepreneurial teams, to play their enthusiasm.

Operation Process: Haier set up a new company in Beijing, after 2 years of recruiting heavily from the Internet and technology companies, these people quickly set up a project team in the capacity of a product manager, and then with Haier's original department (for example, television, cell phones, air-conditioning, refrigerators, washing machines), And then from the outside to absorb a part of the creators to join, to form a small micro-company. Three categories of members to become a community of interests, the common enjoyment of small micro-company equity, profit dividends, but also to introduce VCs.

Planning: Haier will have more than 2000 independent operators in the future.

Assessment: First of all, these small micro companies to undertake the first quadrant is the user's interactive data, each independent operators must have their own users, and forced to user-centric, the introduction of user needs and even customized products. Second, the final product sales assessment. Zhang has cited an example where your team is scheduled to sell 2 million units a year, and these 2 million units become personal liabilities. If it fails to do so, the remaining assets are personally responsible. Conversely, if you exceed the average profit of the enterprise, the employee and the enterprise are divided into profit.

Effect after splitting

Overall company performance: According to the Haier Group's external data, 2014, Haier Group global turnover reached 200.7 billion yuan, the same period of growth of 20.4 billion, an increase of 11%, to achieve a profit of 15 billion yuan, increased by 4.2 billion yuan in the same period, an increase of 39%, profit growth of 3 times times the income growth, 30 years of entrepreneurial profits compound growth rate of 39%, Haier Group online turnover achieved 54.8 billion yuan, an increase of 2,391%.

Status: As of this October, Haier has 169 small micro-companies, more internet people with entrepreneurial dream to join Haier. After the establishment of these small micro-companies, from product planning, research and development, production to market sales, the time is about 1 years. 1 years for the results of inspection period, if the product sales are not up to expectations, the team automatically dissolved, you can set up a new small micro-company, or leave. During this period, if the project does not get the final approval of Haier, the team can be dissolved at any time within 3 months.

Results: A short span of more than a year, Haier has more intelligent home appliances products, even new hardware. For example, small handsome private theater, Thor game Ben, Beethoven intelligent Oven, air box, smart Center intelligent Butler and so on.

The failure of the case: Beethoven intelligent Oven, smart Center intelligence butler, etc. due to poor sales and finally stopped, the team dissolved.

Easy to produce the problem: small micro-companies easy to form internal competition between the business competition will naturally lead to waste of resources enterprises. For example, the same box products, Haier launched a central air-conditioning for the Star box, the air box for home air-conditioning, two boxes between the functions of the same, if the ability to combine two boxes, will improve the gold content of new products.

Industry Views:

1, Haier active change is worth affirming. When the traditional manufacturing pattern is about to be overturned in the Industrial 4.0 era, the transformation of traditional manufacturing industry is inevitable, not actively embrace change will be dead. From the current pace of transformation of home appliance enterprises, Haier took the fastest step, compared to other home appliances companies just increased online channels, or with Internet companies in business cooperation, as a way of transformation, Haier's transformation is more thorough.

2, the Zhang of the promotion of Haier is essential to the transformation. Zhang is the soul of Haier, he single-handedly from a refrigerator manufacturing enterprises into the world's top 500 companies, Haier experience every development is demonstrated Zhang leadership and innovative spirit. Zhang said: "There is no enterprise, only the era of enterprises." "The 65-year-old Zhang never gave up reading and learning, he often went abroad to visit the giants of different industries, and maintained a mass reading habits." Therefore, the transformation of Haier is Zhang from the bottom of the promotion.

3, the transition period of continuous setbacks, or will suffer in the future pain. Zhang publicly admits that the transformation of Haier is difficult compared to any previous changes in Haier. Although from Haier's performance, Haier's scale growth and profit has not been affected by the transformation, the figures show considerable. But at present, small micro-company to create products are not enough to bring contributions to the company's performance, but from the future development, the cost of frustration will inevitably affect the original business.

4, how to get rid of the existing nest of manufacturing, to create higher profits. Haier began a few years ago to adjust the product structure, the introduction of high-end brands such as Casa Dili, to improve product profits, and in the refrigerator, water heaters, washing machine market has maintained the position of the boss. To get rid of the Low-margin manufacturing plant, Haier has also been outsourcing the manufacture of color TV, in services, logistics and so on to obtain profits. But there is still a long and hard way to go in the transition from manufacturing to serving a peaceful Taiwanese businessman.