Zhang: The principle of transformation is simple, the remainder is king

"Some people say I am the helmsman of Haier, wrong, I am the ship's designer." It turns out that the ship I worked so hard to dismantle now is the hardest. "Yesterday, Haier Group, chairman of the Board of directors Zhang received an interview with the south, the Internet more intense home appliances veteran figures that the Internet challenge has arrived, information 0 distance, to center, distributed characteristics are subversive industry reality, if not to destroy innovation, can only be destroyed by others, Haier also from the original aircraft carrier, dismantled into a small boat, become fleet.

Haier began to try to transform in 2005. 2014, Haier global turnover reached more than 200.7 billion, an increase of 11%, Haier Group net profit is expected to be 15 billion yuan, a large increase of 39%. However, Yunjie, Haier Group's rotating president, said that the transformation of large enterprises often experienced from peak to trough again climb the stage, Haier's transition period is a steady development, composite growth rate of 10%, profit growth is higher than the scale. In its view this relies on Haier's entrepreneurial ecological circle construction, from the creation of small micro-built open forest. Haier small Micro is the Zhang initiated the Internet transformation of one of the main components, as at the end of 2014, Haier Group has 212 small micro.

From shipbuilding to dismantling ships

Nan du: You said you are dismantling the ship, how to persuade the people who built together?

Zhang: There is no possibility of persuasion, only the problem of driving. Involving vital interests, there is no way to convince. We put forward the transformation, the people below the first sentence is "What about my mortgage?" "It's realistic. Good business prospects, but what if the failure of the mortgage? So we made an investment-driven platform.

South: Haier Group profit has risen by about 40%, what is the main source?

Zhang: The rate of growth of two listed companies is not so high, group finance and other business development good. At present, the creation of the Haier culture, our internal argument is weaning, individuals must create value. There is a job there is pay, now is the user pay.

Nancy: Why change from organizational reform to drive transformation, not business model driven or product driven?

Zhang: New Internet companies face these problems when they grow up. Enterprises can be more adapted to the market after several reengineering. Enterprise growth on two support points, that is, strategy and organization, strategy followed the Times, the organization followed the strategy to go. Even millet, enterprise development to a certain degree must be organizational reengineering.

Nancy: You mentioned that internet companies are not necessarily internet architectures.

Zhang: The organization of the Internet should be what, there is no qualitative judgment, the organization of all enterprises is not the framework of the internet age.

Trial and error Bottom line technique

South: Will Haier's transformation lose its manufacturing advantage?

Zhang: This is the tolerance of trial and error, a small micro is incremental, our attitude is open, even if the failure of Haier will not have impact. Need to be cautious is the transformation of small micro, conditions mature one to do, immature and so on. For example, clean washing machines, products are competitive, organizational structure changes will not bring big impact. For pure startups, even loss valuations can be high. But like Haier, if the profit is reduced, the market will not accept, easy to fruit as a result, the cause of the fall to transition. Our difficulty is to start a business, the profit can not be reduced.

Nan du: You mentioned that Haier is now facing the problem is to test the wrong to bear the bottom line, what is the experience of its settings?

Zhang: The bottom line is set high, it may be out of control, set low, may be transformed. "Out of control," said the cost of evolution may be out of control, we have been in this degree. Up to now, Haier did not appear big problem, we will differentiate treatment, step down.

South all: About manufacturing and the Internet, betting is very lively, the future competitiveness of manufacturing?

Zhang: Manufacturing must be Internet, don't think about it, or quit the stage. Industry 4.0 is actually an interconnected factory. We have an automated factory, no labor, robots, automation. But in the internal selection, we took it off because production had to be interconnected with design and users. The factory is not to the warehouse production, but to the user production, production behind to be connected to the user.

Zero Stock 0 Transportation guaranteed

South: Small micro-enterprises increase, will increase transaction costs, reduce efficiency?

Zhang: Zhou One thing is right, a lot of marginal cost tends to zero, lies in 0 distance realization. Haier removed tens of thousands of people last year, some of the whole department removed. The interlayer, insulation layer is destroyed, such as the removal of some procurement departments, suppliers can directly into the Haier. According to Coase's theory, the market friction mainly lies in the search cost, the coordination cost and the contract cost, now we do not have the search cost, after the enterprise opens, the coordination cost and the contract cost can reduce.

South: How to ensure that small micro and Haier strategic direction consistent?

Zhang: I am basically afraid to speak now, I said it was a mess. I let them operate, he drafted his own business plan, we signed a phased contract, such as the first paragraph has a few months of time, we send basic living expenses, if successful go up, not successful exit. Haier provides the platform and service, this is quite attractive, some people give up 1.6 million of the annual salary to start a business. The first stage of success, the creators can share, and into the equity phase. We just provide the driving mechanism, the specific operation of small micro-do, we only say One direction. I just two things, one is strategic direction, how to push small micro. The second is to build a driving platform, which is very important to pay system. After completely marketization, we and small is the investment relationship, we control strategic direction and provide platform services.

South: How to reduce the pains in transition?

Zhang: When the economy is in trouble, companies must avoid problems. Our principles are simple, the remainder is king. Two elements are important, zero inventory, 0 receivable. There is a foundation for innovation. Do well, people do not boast you, down 5%, must be a curse sound. Zero inventory and 0 transport, this is the guarantee of two.