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【Rendanheyi Collection】The Internet of Things is Changing the World --- The Brand Species are Emerging

People always hope that tools can become increasingly smarter.

In the movie “2001: A Space Odyssey” directed by Stanley Kubrick, a set of montage lens showed humans’ desire to use tools to achieve self-extension. After the ape threw a bone that could be used as a weapon into the air, it evolved into a spaceship that can conquer the universe.

Nowadays, the Internet of Things (IoT) gives this hope the possibility to become a reality, and it contains huge business opportunities. However, opportunities will not come out of thin air. Enterprises standing in front of the IoT gold mine must answer the following three important questions first if they want to achieve success: If enterprises standing in front of the IoT goldmine want to achieve success, they have to first answer the following three important questions:

1. What is the nature of the Internet of Things?

2. What is a “smart tool” in the eyes of consumers?

3. How can enterprises better meet the new expectations of consumers?

Peter F. Drucker, the Father of Modern Management, once said, “Every single social and global issue of our day is a business opportunity in disguise.” The social issue that enterprises need to solve in the Internet of Things era is how to constantly satisfy “people’s aspirations for a better life” with new technologies and new methods.

The normalization of 'Quantified Self Movement'

With all kinds of smart devices entering our daily life, the 'Quantified Self' movement has been normalized, but the law of the development of the IoT revealed by it has always continued -- the power of scenario is rising. In other words, the essence of the IoT is a more thorough 'Internet of people'.

From the 'Quantified Self' movement to the Internet of Everything era, the typical tools people rely on have gone through iterations from PC to mobile phone to Internet of Things devices. They also mean different things to people's lives -- PC is the environment, mobile phone is an extension, and IoT is their scenario.

In terms of individual energy expenditure, there are also significant differences. 'Using' PC requires the use of mouse and keyboard, which has high learning cost. You can play with your phone with your finger; 'in' the IoT scenario, even the finger could be omitted, through voice recognition, face recognition, poster sensation, it can achieve the most free man-machine interactions, which leads to a more complete 'Internet of people'. With this in mind, we can see where enterprises should work best in the IoT era -- in scenarios where users are demanding more and more quality experiences.

These trends are not brainstorming; they are happening in our real life. Take Haier, the world's first home appliance brand as example, when formulating the Group's IoT transformation strategy, Mr. Zhang Ruimin, Chairman of the Board of Directors and CEO of Haier Group, made it very clear that the technical characteristics of IoT determine a inevitable development trend of organization, that is products become network devices, organizations become ecosystems, and the development goal is to make the transition to the experience economy required by the Internet of Things based on the Internet of Everything. Any organizations failed making this transition will fail eventually.

How could enterprises meet the new expectations of consumers?

So how could enterprises meet the new personalized expectations of users for IoT scenarios? The answer can only be "Ecosystem".

Constructing Internal ecosystem means that companies should aim at activating the innovation potential of employees, subverting the traditional bureaucratic organization. The basis of traditional bureaucracy organization lies in the thinking of traditional brand, where the iterative development of products can be followed. And the higher the level of authority, the higher the probability of making correct decisions. However, in the Era of IoT, users’ demands of experience are personalized and quantified. There is no authority can understand all user requirements any more. The solution can only be to "mobilize the masses" and make every employee "zero distance" from users to meet the massive personalized needs.

At present, Rendanheyi model which is originated by Haier, is regarded as a perfect solution by the international marketing community. It opens entrepreneurial opportunities to employees on an equal footing and is committed to maximizing the value of every person, forming the ecosystem brands that are different from traditional brands in nature. From Haier's perspective, each person's value is actualized in the process of creating value for users, which embodies the dignity of the people. By Rendanheyi model, employees could seize the opportunity to develop every users’ demand of new experience to a complete scenario, and make a growth of the company. This is what the Three-winged Bird, a scenario brand of Haier, is doing.

Building external ecosystem means that the head enterprises should open joint development opportunities to external companies. Simultaneously, they should devote themselves to the original independent company into an organic platform, where companies on this platform can co-evolve, co-create and comprehensively satisfy users' quantitative needs. Haier practices this with the help of COSMOPlat, an ecosystem brand of Haier, and has achieved excellent results in beverage, textile, chemical and other industries.

As a capabilitie of building ecosystem become quite important to the future of enterprises, Kantar's BrandZ™ “Most Valuable Global Brands 2021” released on June 21 also included it as an important factor in the evaluation. Moreover, this list clearly introduced Haier's experience in the IoT ecosystem transformation to global enterprises in the category of "Internet of Things Ecosystem". Haier is also the only one listed as the  IoT ecosystem brand around the world for three consecutive years.

  (Original text is written by Xianyue Pan, the above are excerpts from the original text)

3 July 2021 : 08:42 am


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