File photo fo Haier Group Chairman and CEO Zhang Ruimin (Photo: CGTN)
Paris (People's Daily) – Haier Group Chairman and CEO Zhang Ruimin delivered a speech centered on the theme of "Building a World Class IoT Model" on Friday at the European Institute of Business Administration (INSEAD) in Fontainebleau, France.
INSEAD Vice-Dean and Head of Innovation Peter Zemsky told People's Daily the institute has been studying the Haier model for years as a textbook example.
During his speech, Zhang referenced the "Rendanheyi Model" and the new "3E system," or eco-system, eco-revenue, and eco-brand.
Zhang pointed out that previously Chinese companies did not have their own management models and followed western methods. Now that traditional models have flipped in the "Age of the IoT," Chinese companies have also changed how they operate.
As Zhang explained, "ren" means employees, "dan" means "user needs," therefore "Rendanheyi" is defined as "connecting the needs of employees and users."
Proposed by Zhang in 2005, the model allows the company to transform in step with the transformation that the internet brings to the traditional economy.
Business school experts believe that Haier is in an advanced position worldwide to explore the IoT model.
Academic Director of Global Talent Competitiveness Index (GTCI) and Professor of Strategy Felipe Monteiro said, "At a global business school like INSEAD, we have been studying and teaching new management models. I believe that many of these practices come from multinational companies from emerging markets. Its innovative model is a benchmark that passes entrepreneurship to large global companies."
INSEAD believes Haier is at a leading position among major companies in human resource development aimed at the entrepreneurial spirit, with Zhang emerging as one of the most influential management thinkers for innovative talent.