On January 27, Haier Group's 2023 Work Summary and Commendation Conference and the Fifth Meeting of the 8th Workers' Congress were held. At the meeting, Liang Haishan, Vice Chairman of the Board of Directors and President of Haier Group, released the "Haier Group's 2023 Innovation Achievements".
In 2023, Haier Group will continue to focus on the main strategic track, strengthen its development confidence, strengthen strategic investment, face difficulties, continue to innovate, and its performance will continue to grow steadily: global revenue will be 371.8 billion yuan, an increase of 6%, and total global profit will be 26.7 billion yuan, an increase of 6%; For 15 consecutive years, it has ranked first in the retail volume of large household appliances brands in the world; For 5 consecutive years, it has been selected as the world's only IoT ecological brand in the "Brandz Top 100 Most Valuable Global Brands", and its ranking has continued to improve; For 7 consecutive years, it has been selected as one of the top 50 global brands in China by Google and Kantar Brandz, ranking first in the industry.
Haier Group has always adhered to self-reliance and self-improvement in science and technology, focused on breakthroughs in industry originality and key technologies, promoted industrial upgrading with scientific and technological innovation, and led the global industrial development trend: in 2023, 6 new provincial and ministerial science and technology first prizes and 1 special prize will be added; 1 new China Patent Gold Award, a total of 12, the first in the industry; 6,152 new smart home invention patents were added globally, with a total of 29,486 patents, leading the world for 10 consecutive times; 9 new international standards have been released, a total of 106 international standards have been released, 770 national and industry standards have been released, and there are more than 100 global standard experts, the most in the industry.
In 2023, which is full of challenges and opportunities, Haier Group has embarked on a trajectory of deep transformation and drawn a steady and upward growth curve.
The change trajectory covers multiple fields such as technological innovation, brand building, channel reform, process reengineering, digital transformation and talent development. At the meeting, Zhou Yunjie, Chairman of the Board of Directors and CEO of Haier Group, expressed his gratitude to every Haier employee for their hard work on behalf of the Board of Directors of Haier Group, and delivered a strategic report entitled "Unbounded Ecology, Infinite Possibilities".
Insight into the time and situation, grasp the crisis and opportunity
Market demand is changing, industry trends are changing, and competition tracks are changing. The world is undergoing major changes unseen in a century, and there are countless predictions and choices under the complex variables, and the results of the choices determine the future. At the moment, there are three major trends worth paying attention to:
1. The general trend of the development of the digital economy.
The digital economy is the main economic form after the agricultural economy and the industrial economy, and it is a new economic form with more unified efficiency and fairness. The digital economy has become a key force in reorganizing factor resources, reshaping economic structure, and reconstructing competitive advantages.
Second, the trend of accelerating the scientific and technological revolution and the industrial revolution.
In 2023, the AI model is the most important technological breakthrough, and it will definitely become the most important technological development direction in the next few years. AI technology is becoming the core of the era, and data, computing power, algorithms, products, scenarios, and ecosystems are all being rapidly reconstructed with AI as the core. The deep integration of new technologies and the real economy has continuously given birth to new industries, new models and new ecosystems, and promoted fundamental changes in the production mode, development model and enterprise form of the manufacturing industry.
3. The trend of replacing the status of old and new factors of production.
With the upgrading of industry, some traditional factors of production such as land and labor have gradually lost their dominant position, while new factors of production such as data, technology, information, and talents have gradually become the core force to promote industrial development.
While gaining insight into the times and trends, we should pay more attention to the challenges and opportunities brought about by the changes of the times, and correctly understand the crises and opportunities from both external and internal perspectives.
From the outside, the uncertainty of the world economy. The global situation has changed drastically and has three characteristics: first, "hemisphericization", and inter-regional connectivity is accelerating; The second is "intensification", and the world has formed three first-class chain centers in China, the United States and Germany; The third is "glocalization", at present, more than half of multinational companies choose to place the first chain in a city closer to the headquarters.
In the face of the changes brought about by the three characteristics, Haier should adhere to the globalization of globalization, improve the global first-chain system, and realize the efficient allocation of global resources.
Internally, there is uncertainty in business operations. Today, every business must face uncertainties that cannot be accurately. How an organization manages uncertainty depends largely on organizational effectiveness, and the "control" mindset is no longer adaptable to the current situation, and the real thing to do is to make the organization future-proof. Haier should think about how to better stimulate the vitality of the organization and activate the vitality of employees, and take the initiative to recognize, adapt and seek changes.
In-depth reform drives the high-quality development of enterprises
In 2024, Haier's strategic direction will be clearer and more focused, which is embodied in five aspects:
1. Strategic layout: focus on the two major tracks to achieve more weighty development
Clarify the development goal of building a world-class enterprise, maintain strategic focus, focus on the two tracks, and become an industry leader in each track.
In terms of goals, the development goal of building a world-class enterprise is clear. The stage of the big era belongs to China, but it does not mean that every enterprise can live well. After nearly 40 years of development, Haier has created a global enterprise, a world-class brand, and a business model that leads the times, but in order to become a first-class among the first-class, there is a big gap in terms of scale and market value, so Haier should focus on the four dimensions of "product excellence, outstanding brand, leading innovation, and modern governance" to build a world-class enterprise target system, and achieve "the master in place, the responsibility in place, and the incentive in place". Truly implement the goal of building a world-class enterprise into concrete actions.
Strategically, we will maintain our concentration and focus on the two major tracks, each of which will become an industry leader. Socrates said, "It is only one's instinct to know what one needs in life, and it is one's wisdom to know what one does not need." The same is true for enterprises, to know what can be done, but also to know what not to do. Therefore, Haier must withstand loneliness, maintain strategic focus, and focus Haier's strategy on the two major tracks of smart housing and industrial Internet.
1.In the smart living track.
Seize the opportunity of the times to become the world's first brand, the first scale, the first market value of the smart residential ecological enterprise. Enterprises have the rise and fall, the ecology has no boundaries, and only by optimizing the ecology can we strengthen our competitiveness.
2.In the industrial Internet track.
Strengthen the three major platforms and deepen the four vertical industries.
The three major platforms are: Kaos Industrial Internet Platform, HCH Entrepreneurship Acceleration Platform and Haiyongshun Cross-border Service Platform.
Kaos Industrial Internet Platform is committed to becoming a leading technology enterprise in the era of the Internet of Things and building a world-class industrial Internet platform;
HCH Entrepreneurship Acceleration Platform is committed to building an open "scenario empowerment platform, technology service platform, and financing docking platform", focusing on empowering specialized and special new enterprises;
Haiyongshun cross-border service platform focuses on the needs of the "Belt and Road" countries in terms of people's livelihood and development, builds a first-class channel platform with developing countries, and becomes the preferred platform for empowering domestic advantageous production capacity to go overseas.
The four major vertical industries are: the Internet of the big health industry, the Internet of the urban governance industry, the Internet of the automobile industry, and the Internet of the new energy industry.
The big health industry should focus on the three listing platforms of Shanghai RAAS, Haier Biotechnology and Yingkang Life to establish an internationally competitive health industry ecology.
The Internet of urban governance should be driven by the dual engine of "technology + scenario", strengthen product innovation, improve product layout, polish differentiated competitiveness, and build Hainayun into a benchmark in the field of urban governance in China.
The Internet of the automobile industry should establish the order ability with C-end users and the customization ability with B-end car companies, so as to build Catachi into a benchmark for the Internet of the automobile industry.
The new energy industry Internet should build a world-leading distributed smart energy ecosystem and build Nahui into a leading brand in the field of carbon peaking and carbon neutrality.
Second, the strategic path: promote reform and upgrading, to achieve more quality development
In order to achieve thicker, more solid and higher-quality development, Haier will continue to transform and upgrade, and lead by innovation, which is mainly divided into five aspects:
The first is to strengthen scientific and technological innovation. In 2024, Haier will take national innovation platforms such as the National Innovation Center and the National Key Laboratory as carriers to strengthen originality and leading scientific and technological research, break through platform-level technologies such as smart home brains and industrial brains, and lay out a series of basic technologies such as chips, algorithms, OS, and mechanisms to achieve high-quality development.
The second is to lead the acceleration mode. The Internet era has given birth to search engines, and the Internet of Things era needs intelligent interaction engines. The intelligent interaction engine is an inevitable requirement for the development of the digital economy, and mass customization is the core grasp of the intelligent interaction engine.
The third is to strengthen global coordination. Haier is a pioneer in promoting the localization strategy in the world, and Haier will continue to give full play to the advantages of the "trinity" of localized R&D, localized manufacturing and localized marketing: give full play to the advantages of the 10+N R&D system to provide the market with products and solutions that lead the needs of users; Give full play to the synergistic advantages of the global ** chain, and respond to market demand in a timely and efficient manner with manufacturing globalization; Give full play to the synergistic advantages of global brands, from high-end brands to scene brands, and then develop into ecological brands to meet the needs of different consumers.
The fourth is to deepen organizational change. Richard Tederow, a business historian and professor at Harvard Business School, once said, "If a business wants to be great, it must be open to change and recreate innovations that exceed expectations." "The overall goal of organizational change is to build a high-performing, dynamic organization and to have everyone as their own CEO. In 2024, Haier's organizational reform will enter a deep water area, and all fields and industries should take the chain group contract as the starting point to establish a learning organization and stimulate the vitality and potential of the organization.
The fifth is the space for innovation incentives. Haier's Explorer's maker system has established a positive feedback loop of "career attracts talents, talents achieve careers, and careers motivate talents". In 2024, Haier will innovate three spaces in terms of incentives:
Space for innovation opportunities. Give everyone the same opportunity, as long as they can create user value, they will have the opportunity to co-invest, and turn employees into "entrepreneurial partners". As much as you can turn over, we will provide you with as much stage as you want.
Innovation value-added space. The value-added space is not fixed, but dry. Each chain group expands the value-added space by leading.
Innovative revenue space. The benefits are determined by yourself, and how much you can do with your career will have as much room for gain.
3. In terms of model innovation: promote the implementation of the achievements of the integration of people and orders to achieve more dynamic development
At the same time, we insist on maximizing the value of people, so that everyone can exert their own vitality and create more leading results, so as to promote the enterprise to achieve more dynamic growth.
On September 16, 2023, at the 7th Rendanheyi Model Leading Forum, Chief Zhang gave a speech entitled "Rendanheyi Integrating into the Eternal Living Fire", which made a framework summary of the origin and evolution, principles and practices, structure and methods of Rendanheyi management thought, and presented the Rendanheyi management thought systematically for the first time. This speech shows that the Rendanheyi model has reached a closed loop in the field of theoretical exploration, and at the same time indicates that the Rendanheheyi model has entered a new stage, and in a longer time and a wider scope, Rendanheyi will continue to evolve in the never-ending entrepreneurial innovation ecology and infinite iteration of the user experience ecology.
Starting from 2024, Rendanyi will enter the stage of achievement landing, and Haier hopes to emerge more model chain groups that have major breakthroughs and innovations in the practice of Rendanyi, and can create a butterfly effect and increasing marginal benefits.
Fourth, the incentive mechanism: adhere to the people-oriented, to achieve more warm development
The incentive mechanism is the key to the continuous dynamic optimization of the Rendanheyi model. In terms of incentive mechanism, Haier integrates user value and employee value to achieve the unity of value creation, value delivery and value sharing.
1) Pay attention to user needs and create the best user experience.
In the era of the Internet of Things, users have evolved from simple consumers to prosumers, and users participate in the whole process of product formation. The product is tangible, the service is intangible, and only the experience is unforgettable. Haier should adhere to the people-oriented principle and create the best user experience.
2) Pay attention to the value of employees and maximize the value of people.
Dana Zohar, the founder of quantum management, believes that "everyone is a self-energizing ball of energy". Over the past 40 years, Haier has always adhered to the tenet of maximizing the value of people, exploring the potential of employees and giving full play to their value. The chain group contract ecological organization created by Haier expands the talent development system in an all-round way, providing different value realization paths for professional and technical talents, management talents, and first-class expert talents, so that everyone can create user value on the Haier platform and maximize their own value.
3) Realize the unity of value creation, value delivery and value sharing.
I create my value, I share my value-added", on the Haier platform, creators who create value can obtain three types of income: labor income, that is, according to the distribution of labor results, reflecting high orders and high remuneration; Super profit sharing, that is, sharing according to the value created, the greater the value created, the more shared; Capital gains, that is, are shared according to equity appreciation, and the greater the equity appreciation space, the greater the income.
The above three types of income are all based on the premise of creating user value, and only value-added can have income, and truly realize the unity of creating value, delivering value and sharing value.
5. Social responsibility: practice the concept of ESG and achieve more responsible development
Haier believes that to fulfill its social responsibility, enterprises must first become bigger and stronger, and can create more tax revenue and employment opportunities for the society, which is the foundation. At the same time, Haier has also taken the initiative to devote itself to public welfare.
As a responsible enterprise, Haier will integrate the development concept of ESG into the whole industry and all links of the enterprise, promote a green, low-carbon and circular economy, and realize the harmonious coexistence of the enterprise itself, society and nature.
Brand renewal, create a brand of the times
Since the beginning of its establishment, Haier has always insisted on creating its own brand and not doing OEM. According to Euromonitor International, Haier has ranked first in the retail sales of the world's largest household appliance brands for 15 consecutive years. As the world's only IoT ecological brand, Haier has been selected as one of the "Brandz Top 100 Most Valuable Brands in the World" for five consecutive years. Haier's development path of independent brand creation has become a model for Chinese home appliance enterprises to go overseas and create brands, and has driven the entire industry from "Chinese products" to "Chinese brands".
At each stage of development, with the continuous iteration of user needs and the continuous upgrading of Haier's development strategy, Haier's brand image and brand slogan are also continuously renewed.
In the stage of famous brand strategy and diversification strategy, Haier's high-quality products and sincere services have entered thousands of households, and Haier's brand slogan "Sincerity forever" has also been deeply rooted in the hearts of the people.
Entering the stage of internationalization strategy, Haier insisted on creating a brand for export, and issued the strongest voice of self-confidence of "Haier Made in China";
After starting the global brand strategy, the brand slogan of "One World, One Home" and "Bringing the World Home" was determined, and it was committed to becoming a brand loved by local users;
Entering the stage of network strategy, Haier's brand slogan was upgraded to "Your Life Wisdom, My Smart Life", implying that Haier continues to interact with users and continuously provide new experiences of smart life.
After entering the ecological brand stage, the background of the times and user needs have undergone great changes, more boundaries have been broken, more value relationships have been established, more co-creation will occur, and the future of the world will be full of infinite excitement and possibilities, so Haier has determined a new brand slogan: create infinite possibilities with unbounded ecology (more creation, more possibilities).
The new brand slogan consists of three main elements:
"Unbounded Ecology" means that Haier is committed to building an open ecology with unbounded identity, unbounded knowledge, and unbounded regions, breaking the boundaries of value creation and value sharing, and reshaping the value relationship between people, people and things, things and things, people and organizations, and organizations and organizations.
"Co-creation" represents Haier's consistent tenet of "maximizing the value of people", stimulates the innovation vitality of each individual, allows consumers to become prosumers, and participates in the whole process of experience, so that ecological partners can create and share value in Haier's ecosystem.
"Infinite Possibilities" expresses that when more boundaries are broken, the creativity of more individuals and organizations is stimulated, new values will continue to emerge and continue to fission, and the infinite possibilities for creating a better life and industrial development are like tropical rainforests, with lush greenery and endless growth.
Yesterday's sun can't dry today's clothes, tomorrow's rain can't wet today's self.
Entrepreneurship is endless, innovation is limitless, Haier must adhere to the first-class brand strategy to create new needs of users; Adhere to the maximization of human value and ignite users' expectations for a better life; Adhere to the self-iteration of chain group contracts, and empower thousands of industries to be full of vitality.
Ride the wind and waves into the unbounded ecology, and move forward bravely to create infinite possibilities. As long as we adhere to the tenet of "maximizing the value of people", we will unswervingly implement the principle of "single combination of people."
1. Chain Group Contract", stimulate the creativity of every employee, let everyone have an entrepreneurial spirit, and will definitely be able to create a 2024 belonging to Haier!