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2024 | OriginalPaper | Chapter

2. Step 1: What Is RenDanHeYi?

Author : Umberto Lago

Published in: Global Business Model Shift

Publisher: Springer Nature Switzerland

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Abstract

The purpose of this chapter is to illustrate the functioning of this fascinating business model as it has been conceived and implemented at Haier in China. The chapter delves into the fundamental tenets of the business model, which include zero distance with users, trust and development of employees, and the sharing of value among users, employees, and the company.
The chapter also explores the evolution of the model and its latest developments. Additionally, it presents two case studies that demonstrate the implementation of the model, showing how two micro-enterprises have evolved into standalone companies of significant importance within the Haier Group: Internet of Food and COSMOplat.
By examining these cases, readers will gain a comprehensive understanding of how Haier’s business model promotes innovation, empowers employees, and creates value for all stakeholders.

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Footnotes
1
Among the others, I would like to mention: D. Zohar (2022); B. Laker, L. Soga and Y. Bolade-Ogunfodun (2023); J. Minnaar and P. de Morree (2019 and 2022); G. Hamel and M. Zanini (2020); Y. Hu and Y. Hao (2017); B. Fischer, U. Lago and F. Liu (2013); Steiber (2022). Also The Haier Dictionary of RenDanHeYi (2017), was extremely useful.
 
2
Speech at the Annual Meeting of China Independent Innovation (2011).
 
3
Haier internal presentation, 2012.
 
4
Haier internal presentation, 2012.
 
5
Zhang Ruimin introduction for Haier Museum (2011).
 
6
Drucker, P.F. (1954, p. 37).
 
7
Huagang Li is senior Vice President of Haier Group and CEO of Haier Smart Home.
 
8
This interview is part of the Lessons from leaders collection within The State of Organizations 2023 report. These conversations were conducted by members of McKinsey’s People &​ Organizational Performance Practice with leaders of organizations that exemplify best practices relating to the ten most significant shifts facing organizations today.
 
9
B. Laker, L. Soga and Y. Bolade-Ogunfodun (2023, p. 56).
 
10
Zhang Ruimin’s webcast with IMD President Dominique Turpin, Dec. 11, 2012, reported in: B. Fischer, U. Lago, F. Liu, Reinventing Giants, Jossey-Bass, New York, 2012, p. 71.
 
11
Chaos is the first deity in ancient Greek mythology, while Zeus, whom everyone is familiar with, is the third generation of divine kings. Chaos is considered the primordial deity, often referred to as the mother of all things or the cosmic egg, signifying that all things originated from it.
 
Literature
go back to reference Drucker, P. (1954). The practice of management. Harper Business. Drucker, P. (1954). The practice of management. Harper Business.
go back to reference Editorial Board of Haier Dictionary. (2017). The Haier Dictionary of RenDanHeYi. Haier Group. Editorial Board of Haier Dictionary. (2017). The Haier Dictionary of RenDanHeYi. Haier Group.
go back to reference Fischer, B., Lago, U., & Liu, F. (2013). Reinventing giants. Jossey-Bass. Fischer, B., Lago, U., & Liu, F. (2013). Reinventing giants. Jossey-Bass.
go back to reference Hamel, G., & Zanini, M. (2020). Humanocracy. Harvard Business Review Press. Hamel, G., & Zanini, M. (2020). Humanocracy. Harvard Business Review Press.
go back to reference Hu, Y., & Hao, Y. (2017). Haier purpose. Infinite Ideas Limited. Hu, Y., & Hao, Y. (2017). Haier purpose. Infinite Ideas Limited.
go back to reference Laker, B., Soga, L., & Bolade-Ogunfodun, Y. (2023). Closing the service gap. Pearson. Laker, B., Soga, L., & Bolade-Ogunfodun, Y. (2023). Closing the service gap. Pearson.
go back to reference McKinsey and Company. (2023). The state of organizations 2023: Ten shifts transforming organizations. The State of Organizations 2023. McKinsey and Company. (2023). The state of organizations 2023: Ten shifts transforming organizations. The State of Organizations 2023.
go back to reference Minnaar, J., & de Morree, P. (2019). Corporate Rebels. Corporate Rebels. Minnaar, J., & de Morree, P. (2019). Corporate Rebels. Corporate Rebels.
go back to reference Minnaar, J., & de Morree, P. (2022). Start-up factory. Corporate Rebels. Minnaar, J., & de Morree, P. (2022). Start-up factory. Corporate Rebels.
Metadata
Title
Step 1: What Is RenDanHeYi?
Author
Umberto Lago
Copyright Year
2024
DOI
https://doi.org/10.1007/978-3-031-64857-1_2

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