What Zhang Ruimin and Steve Jobs have in common: Redefining Management

At a time when management innovation is the driving force behind business success, few companies exemplify change as clearly as Haier. From its humble beginnings in Qingdao, China as a refrigerator manufacturer, Haier has grown into a global giant, consistently earning a place on the Fortune Global 500 list. As it celebrates its 10th anniversary -40, Haier’s journey provides the highest education in business innovation and environmental construction that renews the smart home industry and challenges the old corporate structures.

Unlike Apple’s Steve Jobs vision, innovation, and relentless focus on customer experience pushed Apple’s design and technology to the brink. Building a digital ecosystem around users is Haier’s bread and butter, as it is for Apple. Although both are consumer electronics companies, they have very different roots – and founders. But their shared focus on management innovation and business transformation has left a lasting impact on their industry.

Lessons from Global Business Leaders

Haier’s transformation journey provides valuable insights for managers navigating today’s business environment:

1. Adopt an Ecosystem Mindset: Build strong relationships with customers, partners and employees to create shared value and drive long-term success.
2. Destroy and Rebuild: Challenge traditional structures and embrace new forms to stay competitive. Haier’s transformation from a traditional manufacturer to a technology-driven ecosystem exemplifies the power of adaptation.
3. Harness Technology: Use AI and emerging technologies to create unique products and services that differentiate your offerings in the marketplace.
4. Focus on Customer Needs: Constantly engage with customers to understand their preferences and pain points, ensuring your products and services remain relevant and powerful.

The Haier Ecosystem Framework: A New Business Paradigm

At the heart of Haier’s metamorphosis is its strong environmental design – the evolution of the original “RenDanHeYi” proposed by founder Zhang Ruimin in 2005. This new approach breaks down the traditional organizational structure, introduces three ways of importance:

1. Positional Focus: Going beyond product lines, Haier now offers complete home solutions designed for individual lifestyles. This change resonates with consumers who want integrated, seamless experiences in their homes.
2. Lifelong Customer Relationships: Haier has transformed customer interactions from transactions to lasting connections. By encouraging engagement through online communities and offline touchpoints, the company ensures that its products evolve according to customer needs.
3. Ecosystem Value Maximize: RDHY 2.0 maximizes value creation beyond employees to include the entire ecosystem of partners and employees. This approach creates a collaborative environment that drives innovation and continuous improvement.

To bring RDHY 2.0 to life, Haier has reorganized its organization into Ecosystem Micro-Communities (EMCs) and EMC Alliances (EMCAs). This shared approach empowers teams to make quick decisions, respond quickly to market changes, and test new ideas.

SAN YI NIAO: The Living Ecosystem of Smart Home Solutions

Incorporating the principles of RDHY 2.0, Haier’s home wellness brand, SAN YI NIAO, represents a revolution in the industry. It integrates hardware, software, and services into an evolving ecosystem that learns and adapts to user preferences. SAN YI NIAO’s success is built on three pillars of innovation:

1. Enterprise Innovation: Through EMCAs, SAN YI NIAO creates powerful teams to provide tailored solutions for each customer, ensuring a smart home experience.
2. User-Centric Innovation: By actively involving customers in the innovation process, SAN YI NIAO fosters a sense of ownership and deepens user engagement. Haier’s new store models become services and community services for local users, acting as real-world laboratories for testing new ideas and collecting customer data.
3. Ecosystem Partner Innovation: With a network of over 3,500 partners, SAN YI NIAO leverages diverse expertise to create comprehensive and integrated home solutions. This collaborative approach allows Haier to offer a wide range of options to its customers.

AI: The Invisible Engine Powering Haier’s Ecosystem

Artificial Intelligence serves as the core of Haier’s ecosystem strategy. The company’s Smart Home Brain, a central platform that integrates IoT, AI, and big data, enables real-time data collection and analysis. This data-driven approach allows Haier to anticipate user needs, improve products, and provide personalized experiences.

Haier’s latest breakthrough, HomeGPT AI model 2.0, shows the power of AI in improving smart home functionality. By adjusting settings based on user behavior, HomeGPT enhances the overall user experience.

Haier’s AI-driven ecosystem includes: More than 140 product categories; 400 types of environment; 130 million smart devices connected to its Smart Home Brain; 190 million users; 2.4 billion monthly transactions.

These interactions are constantly updated with AI-driven insights, ensuring that Haier is always at the forefront of consumer preferences. The company’s extensive patent portfolio — more than 32,500 published patents as of 2024 — confirms its leadership in the global smart home industry.

An ecosystem approach for the future

As Haier celebrates its 40th anniversary, its rise from an environmental appliance manufacturer to a global leader in smart home solutions serves as a testament to its strategic strength and environmentally driven strategies. By embracing RDHY 2.0, SAN YI NIAO, and AI, Haier has created a business model that is at the forefront of the smart home revolution.

For business leaders who want to face the challenges of the modern market, Haier’s ecosystem strategy provides insight and inspiration for success in an increasingly connected world driven by technology.