US media: Haier GE home appliances business is committed to creating IoT platform

US "Fortune" biweekly website on June 9 published "Fortune" biweekly senior editor Jeff Colvin article entitled "power list", the full text is as follows:

If I told you ten years ago that a Chinese company that Americans seem to make only dorms with refrigerators will one day buy GE's home appliance business, I'm sure you'll be laughing. But on the 6th of this month, this happened: Haier Group completed the acquisition of GE's home appliance business for 5.58 billion U.S. dollars.

If you think this is incredible, then Haier Group CEO Zhang Ruimin in the past 30 years the way the operation of the business will be even more incredible.

I told the world long ago that Zhang is one of the most daunting and most revolutionary managers of our time. Yesterday I sat down with him and exchanged more confidence in my judgment. Zhang Ruimin in New York, one is to complete the delivery with GE, Yale CEO Summit also received the "Leader of the Legendary Award." Chang-Min Zhang often want to be more than his competitors longer and ahead.

Now he thinks so: "In the old economy, competition existed in a product or brand, but in the Internet age, competition is competition among platforms. You either become a platform or are terminated by a platform." To this end, Zhang created a IoT platform, this platform covers the refrigerator, oven and other products.

He said: "This concept is not new, but in the current economy, no one product can truly reflect it."

In addition to Haier and its users, this platform will attract food producers and distributors. "Advertisers can also use this platform."

Zhang Ruimin said: "The business is not an independent organization, it is more like a node in the Internet."

So far, these ideas can be described as innovative, but not revolutionary. The next step in Zhang's thinking is this: "The frontline staff must understand the users and their needs, so we're going to break the hierarchy. Now all of our employees are members of the startup team, much like internal Startups, I think this is unprecedented. "

They are more like internal start-ups than you think. Each team must attract VCs from outside the organization, and team members must also make their own decisions. If a team can not attract external investment, it must be dissolved.

Who is a member of these teams? "One of the principles is that these teams must be open to the community, not just existing ones," said Zhang Ruimin. "It has to be completely dynamic."

What will this leave him? He said: "I am no longer the leader, the most, I will be the shareholders of these teams."

Now, Zhang Ruimin sounds more like an unusual business future home. But he is not, he runs the world's largest home appliance brand, with 60,000 employees, plus a combined 73,000 GE appliances.

However, he said that based on the cultures and laws of those companies' own countries, "I hope local managers can apply this concept to actual operations."

Zhang Ruimin next do not have any illusions. "The goal we are implementing so much change is to create something truly revolutionary," he said. "Now we have to come to terms with the revolutionary changes we've come to think of."

You would say that this is a long-term issue, but this idea is really practiced where Zhang Ruimin exists.


Zhang Ruimin, Chairman of Haier Group (Picture)

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