Zhang Ruimin, Chairman of Haier’s Board of Directors, gave an internal speech： Internet of Things is not the end.

The following article comes from the combination of people and individuals, by Haier Model Research Institute.

Has the Internet of Things reached the end? No. There may be something new behind the Internet of Things, and the times are always changing. There are no successful enterprises, only enterprises of the times.

This article is reproduced from WeChat WeChat official account’s "One Person in One" (ID:haierrendanheyi). The original text was first published on December 27, 2019, with the title "Zhang Ruimin’s latest speech: the Internet of Things is not the end (the full text is attached)", which does not represent the viewpoint of Outlook Think Tank.

Man is born out of nothing.

-Zhang Ruimin, Chairman and CEO of Haier Group, is celebrating.

Speech at the 35th anniversary meeting of Haier Group.

[Opening]

[Problem]

[problem solving]

Values: people are the purpose, born out of nothing.

Leading: the land ends here and the sea begins in Sri Lanka.

Universality: Follow the waves and print Wan Chuan on the moon.

【 Conclusion 】

[Opening]

Today is a good day!

Today is a very meaningful day!

Because, all Haier people in the world, today is your 35th birthday.

This birthday is gratifying!

Fortunately, in the past 35 years, generations of Haier people have been in the same boat and jumped over countless rapids and dangerous beaches. Perhaps it is because there are too many rapids and dangerous beaches that we have jumped over, but we have played down the feeling that "nothing is difficult until it has gone through", because we have to challenge ourselves every day.

Fortunately, the 35-year-old Haier is not senile or lifeless, but youthful and energetic, and is climbing to a new peak in the Internet of Things era, impacting this new peak with the one-in-one mode led by us.

So, at this moment, I think we should express our feelings. I’ll say "I wish Haier people all over the world" first, and then everyone will shout "Happy Birthday". But the voice should be loud and tidy, because we are connecting the world, please show your confidence.

(Chief Zhang: I wish Haier people all over the world a happy birthday! )

[Problem]

The theme I’m going to talk about today is "People are the purpose, born out of nothing".

I have pondered over this topic for a long time. These eight words can best explain Haier’s entrepreneurial spirit and fighting spirit in the past 35 years. 35 years ago, Haier had nothing, not only nothing, but also negative assets and insolvency. A small factory with hundreds of people is on the verge of bankruptcy. At that time, no one knew that there would be today, and I never thought of it.

But why is there today? Depending on this "nothing", the tangible is out of the intangible, and this invisibility is the entrepreneurial spirit. In the final analysis, Haier’s entrepreneurial spirit is to insist on "maximizing people’s value" or "putting employees first". Americans insist on shareholder first. When I gave a speech at Harvard University, I said that you Americans are wrong. Shareholders are not the first, because shareholders will not create value, only employees will create value, so we should adhere to "employee first".

To condense it again, I think Haier’s entrepreneurial spirit in the past 35 years embodies two characteristics: harmony without difference and self-righteousness.

1. Harmony without difference, not "unity without harmony"

There is a saying in The Analects of Confucius that "gentlemen are harmonious but different, while villains are the same but not harmonious".

In the past 35 years, every time we put forward a new strategic goal, all Haier people worked together in Qi Xin, combining all their strength and wisdom. Is there any difference? Yes, but this "difference" means that everyone has many different and better ideas. Therefore, the Book of Changes says that "the same goal leads to different paths, and the same is considered". You can have different ideas, but they are all the same entrepreneurial spirit; You can have different paths, but all for the same goal. The best embodiment of this point is the combination of Yang Zong, Wu Zong and my three people. Before Haier started its business, the three of us started to run the refrigerator technology introduction project together. For more than 30 years, we have been in the same boat and Qi Xin has made concerted efforts.

2, self-righteous, not self-righteous.

Today, we have gone through five strategic stages and five strategic transformations. Without self-righteousness, we could not have made so many successful transformations, because every transformation would challenge ourselves, subvert ourselves and even harm personal interests. Especially today, we have to carry out the sixth strategic transformation. I think it is necessary to sum up the words "man is the purpose, and life is born without", which is reflected in our specific past 35 years, that is, harmony without difference and self-righteousness.

Therefore, this "nothing" is too important. "Nothing" is the spirit and soul of the enterprise. Therefore, we should pass on this spirit and soul from generation to generation and do it from generation to generation.

I don’t have to be successful, I must be successful!

The source of "man is the purpose, born out of nothing"

"Man is an end" originated from the German philosopher Kant, who said that man is an end, not a tool. Everyone is his own purpose, and this purpose is to give full play to my talents. We explore the unity of people and individuals, and everyone is a maker, that is, let everyone bring his talents into play. Traditional enterprises regard people as tools, become subservient to a certain position, or part of the assembly line, just to produce a product. Max Weber, another German sociologist, is the pioneer of capitalist theory. He pointed out in a very famous book "Protestant Ethics and the Spirit of Capitalism" that without religious reform, there would be no development of capitalism. In his works, he divided rational spirit into two kinds, one is value rationality and the other is instrumental rationality. He hopes that capitalism can combine value rationality and instrumental rationality, but he thinks that capitalism has not done this, because capitalism has played more instrumental rationality of people and regarded people as tools. And we did it today, and our unity of man and man has achieved the unity of value rationality and instrumental rationality. Because the one-in-one model combines the value created by each maker for users with the value shared by them. Speaking of home, as Kant said, man is the purpose. Karl Marx also discussed this proposition. He said that the so-called thoroughness means grasping the root of things, and the root of people is people themselves, putting people first. Specific to our practice-one person and one person, put every employee in the first place, let employees realize value and then create user value.

The embodiment of "man is the purpose, born out of nothing" in each development stage of Haier.

People are the purpose, born in nothing, these eight words combined with Haier’s development process, can be summarized by a vertical and horizontal two-dimensional map.

The vertical axis "man is the purpose" embodies the leading role of man’s unity; The horizontal axis "born out of nothing" reflects the brand’s times.

The vertical axis is four iterations of Haier’s corporate culture, and the horizontal axis is six transformations of Haier’s development strategy.

Figure 1: Six Strategic Stages of Haier

A key crossing point in this picture (Figure 1) is 2005, when the concept of "person-single integration" was put forward. Since then, it has been developing continuously with the principle of "person-single integration". Although the concept of "person-to-person integration" was not explicitly mentioned before, it was actually done in line with the "person-to-person integration".

I’m going to talk about three parts, namely:

Values: people are the purpose, born out of nothing.

Leading: the land ends here and the sea begins in Sri Lanka.

Universality: Follow the waves and print Wan Chuan on the moon.

First, values

Man is the purpose, born out of nothing.

Looking back at Haier’s past five strategic stages, each strategic stage has implemented the values of "people are the purpose, and life is born out of nothing".

In the stage of famous brand strategy, "people are the purpose, being born without" means "high-quality products come from high-quality people";

In the stage of diversification strategy, "people are the purpose, living in nothing" means "revitalizing assets first and revitalizing people";

In the stage of internationalization strategy, "people are the purpose, living in nothing" is "the internationalization of people who want to create international brands first";

In the stage of global brand strategy, "people are the purpose, living in nothing" means "creating a global local brand with the localization of Haier people".

In the strategic stage of networking, "people are the purpose, living in nothing" is "creating user experience scenes with chains".

1. Brand strategy stage-"High-quality products come from high-quality people"

So were there any high-quality people at that time?

At that time, there were 13 management rules, one of which was that it was not allowed to urinate in the workshop, indicating that the quality was already very poor. But this is just the appearance. In fact, people have unlimited potential, and everyone is like this. So we changed the concept of employees by "smashing the refrigerator". In 1985, he smashed the refrigerator, and in 1988, he won the first gold medal in the national refrigerator industry. Since then, a small seed has been planted. At that time, the self-management team has done very well, but it has not been widely popularized. Why? Because at that time, the wage standard of enterprises must be uniformly formulated by the Municipal Labor Bureau, and no more points can be made, and the self-management team can’t reward them even if they do well. Even so, they are still trying to achieve the ultimate quality every day, regardless of remuneration. This is really the gene of self-management. The self-management team that emerged in 1985 can be called the pioneer of the integration of people and individuals. At this point, Haier is very different from other enterprises in the industry. They think that as long as advanced equipment and technology are introduced, the products can be done well. In fact, talent is the decisive factor. This is also the case. At that time, there were three China enterprises that also introduced Liebherr refrigerator technology, and the other two were a factory in Wuhan and a factory in Hangzhou. The one in Wuhan had already been merged by us, and the one in Hangzhou had disappeared.

2. Diversification strategy stage-"Revitalize assets first and revitalize people"

At that time, there were many merger cases, but the general merger was limited to the asset level and pursued the expansion of assets. We are different. We insist on "revitalizing assets first and revitalizing people". The most typical case is that Chai Yongsen was sent to the merged Red Star Electric Appliance, and this successful case later entered the Harvard lecture hall with "Haier Culture Activating Huck Fish".

The most important thing to successfully activate the huckfish is to change the concept.

Chai Yongsen was very difficult when he first arrived at Red Star Electric. I insisted on not giving him a penny, but letting him inspire the people of Red Star Electric. This is how the "little prodigy" washing machine was produced. Washing machines are not easy to sell in summer. The original people think that summer is the off-season of washing machines, and it is normal to sell them badly. We put forward that "there is no off-season market, only the idea of off-season" After changing their ideas, they developed a small child prodigy washing machine specially for washing small clothes in summer according to the needs of people’s laundry in summer, and the result was a hit.

After the development of diversified strategy, Haier has created brand advantages, but the market is still limited in China. Fortune once interviewed me and wrote an article full of praise, but I remember the last sentence clearly. He said that Haier was a big fish in a small pond. That is to say, no matter how well you do, you are at home, not to the Pacific Ocean or the Atlantic Ocean. Our next step is internationalization.

3. Internationalization strategy stage-"Internationalization of people who want to create international brands first"

Our strategy at that time was to link the goal of creating an international brand with people. The internationalization of many enterprises is to sell products abroad and earn some foreign exchange. After going out, I found it difficult to open up the market, so I simply worked as an OEM for international famous brands. We feel that when enterprises go abroad, they must be familiar with foreign rules and integrate into the international market. We have just arrived in the United States, and we can’t enter the mainstream market, so we have to enter the gap market first. What about today? I went to Europe last month, and our products have exceeded the value of European famous brands. Building a factory in the United States was a key step for Haier to create an international brand, but public opinion was not optimistic at that time. A magazine published an article entitled "Remind Zhang Ruimin". What he means is that brands all over the world come to China to set up factories, but you go to the United States instead of eating meat at home but eating bones in the United States. The media don’t understand that Haier went out to create an international brand, and the purpose of building a factory in the United States is not to simply produce and sell products, but to integrate into the international market system. Looking at it now, those foundries who laughed at our brand creation in the past also proposed to be brands today, but the opportunity has already missed. Now, even if we are brands, we still have a long way to go from high-end brands and mainstream markets.

4. The stage of global brand strategy-"Creating a global local brand with the localization of Haier people"

At this stage, Haier’s overseas strategy is completely "trinity". R&D, manufacturing and sales are all localized to meet the needs of local consumers and create localized brands. Since 2009, Haier has been rated as the first large-scale household appliances in the world for ten consecutive years. Among them, in Pakistan, Thailand, including the United States, Haier has become a localized brand.

5. The strategic stage of networking-"Creating user experience scenes with chain groups (small and micro groups in ecological chains)"

Entering the era of Internet and Internet of Things, Haier’s biggest difference is to create user experience scenes with chain groups. Since we put forward the idea of "one person, one person, one person" in 2005, employees have become makers, and makers have formed small micro-groups. These small micro-groups, which are based on small micro-groups, have independently combined to form a chain group that has no center, no leadership and is completely driven by user experience. Each node of the chain group will create a win-win situation around user application scenarios, and may eventually become an ecological cloud.

Second, leading

Land ends here, and the sea begins in Sri Lanka.

1. The leading role of eco-brand.

Looking back at the first five stages of strategic development, Haier can develop to today by eight words: "People are the purpose, life is nothing", and today Haier has entered the sixth stage of strategic development-the stage of eco-brand strategy. In the new stage, while inheriting Haier’s values, leadership is particularly important. "The land ends here, and the sea begins in Sri Lanka", which is very appropriate for understanding the leading role.

Last month, I was in Cape Roca, Portugal, and I saw this sentence on the Great Navigation Monument. In front of me was the endless Atlantic Ocean, which was very emotional.

400 years ago, Portuguese navigator Da Gama led four armed merchant ships to explore the ocean. They didn’t know where to go at that time. They drifted at sea for 10 months. Finally, they arrived in India in 1498 and discovered a new continent. Da Gama was ecstatic. This exploration opened the era of great navigation. Two great powers, Portugal and Spain, were born in the era of great navigation, which almost split the earth in two, with you half and me half. Camons, the greatest Portuguese poet, stood on the cliff and faced the boundless Atlantic Ocean, wrote the famous epic Song of Ruzitania, from which came the eternal quatrain "Land stops here, the sea begins in Sri Lanka". What it inspires us is an entrepreneurial spirit. Land stops here, at the end of land exploration, there is still an unknown ocean, and we have to explore the ocean. The problem is that Portugal made a lot of money through the exploration of great navigation, and after having many colonies, the exploration came to an abrupt end. They are satisfied, but in fact they should start a new exploration. "The land ends here and the sea begins in Sri Lanka" is eternal and eternal. Yesterday’s success must end yesterday, and new success must begin with new exploration. Therefore, today’s Portugal and Spain have lost their former glory. After the end of the HNA era, the industrial revolution followed, and they failed to catch up with the new era.

For us, the land ends here and the sea begins in Sri Lanka, which means that every day ends with yesterday’s success and every day begins with new exploration.

The success of Haier’s first five strategic stages all ended yesterday. Today, we start the exploration of the sixth strategic transformation, with the theme of detonating and leading the eco-brand.

The theme of the sixth strategic stage is eco-brand strategy, and the corresponding corporate culture is the new Haier spirit and style, that is, "honesty, ecology and win-win evolution;" One person in one, chain group contract. "

On eco-brand strategy.

BrandZ rated us as the only and first Internet of Things eco-brand in the world. Brands since the industrial revolution can be roughly divided into three categories: the first category is product brands, such as Nike, Adidas, and many Japanese companies, all of which focus on product premiums. The second category is platform brands, such as Amazon and Taobao, which are mainly based on the traffic premium of mobile Internet. Whether it is a product brand with product premium or a platform brand with traffic premium, they have a common problem, only trading customers and no interactive users. Our eco-brand is the third category, which is essentially different from the first two. The eco-brand is mainly based on experience premium. If there is no e-commerce without mobile internet, then there is no scene ecology without the Internet of Things. Eco-brand is based on experience premium. The user’s scene experience iteration drives the self-evolution of eco-brands.

Haier’s eco-brand guidance is based on model guidance and standard guidance. On November 26th, Forrester, a global authoritative market research and consulting organization, officially released a research report. Through the research, analysis and rating of seven vendors with the best performance in China’s industrial Internet software platform, the results show that Haier COSMOPlat is among the leaders. Among them, Haier COSMOPlat ranked first in the three dimensions, and 18 indicators reached the highest score. This reflects the guidance of Haier’s ecological model of Internet of Things. In the field of Internet of Things ecology, Haier led the standards of mass customization mode, smart home and Internet of Things ecology respectively, and became the leader of international standards.

On the spirit and style of the fourth generation Haier.

The spirit of the third generation of Haier is: honesty and ecology, sharing platform;

Haier’s style is: one person in one, small and micro detonation.

The spirit of the fourth generation of Haier is: honesty, ecology and win-win evolution;

Haier’s style is: one person in one, chain group contract.

The difference is that the shared platform is upgraded to win-win evolution, and the small and micro detonation is upgraded to a chain group contract.

Win-win evolution is to evolve with users, which embodies a very important feature of blockchain-decentralized user self-trust. After decentralization, the user can trust you because he and you have a win-win evolution. In a sense, the user is also a creator.

The chain group contract embodies another very important feature of the blockchain-the value self-transmission of disintermediation. Because in the chain group contract, all the values and all the nodes are integrated.

2. The challenge of detonating the lead

Haier has been in the leading stage of exploration in the ecological brand of the Internet of Things, and now we need to land the chain group contract as soon as possible. This is a challenge we face.

The chain group contract is based on the smart contract of the blockchain and is superior to the smart contract. Smart contracts can be regarded as 2.0 of blockchain. Without smart contracts, blockchain is just a distributed accounting system. However, although smart contracts ensure that the process of asset trading is transparent, traceable and unbreakable, they still cannot create new value. The advantage of chain group contract over smart contract is that it can innovate experience iteration with users.

Figure 2: Chain Group Contract Ecological Diagram V2.1 Version

The superiority of chain group contract is embodied in the ecological diagram of chain group contract (Figure 2). Small and micro independently combine into a single chain group and an experience chain group. The two types of chain groups are integrated around the iteration of user scenario application experience. The chain groups have no center and no leadership, and they are completely self-organized. Creation of single chain group and experience chain group are self-organized, self-driven and continuously optimized.

Just like Zhenghe chain group, the experience chain group in Zhengzhou business circle and the single chain group in Hefei Interconnection Factory are integrated. In the past, planning, approval and assessment were needed. After the integration, the chain group iteratively created explosions around the user experience, which was self-organized and self-driven. In the past, when the group issued the index, they could only grow by 8%, and after the chain group was driven, they could grow by 30%. Chain groups create high value-added, and each node can realize high sharing according to the chain group contract. After value-added sharing, chain groups can create greater value-added, which realizes the win-win evolution of chain groups until new species evolve.

Chain groups are like jellyfish. Jellyfish has a history of 650 million years, which is earlier than dinosaurs, but the jellyfish has evolved to the present when dinosaurs became extinct. Jellyfish has no central nervous system, only neurons. It is truly decentralized. When finding food, any tentacle of jellyfish will send a signal to other tentacles when it touches the prey, and everyone will surround the prey together. In the Internet of Things era, our chain group should do this.

In the strategic stage of eco-brand, the challenge of Haier’s detonation is reflected in three aspects:

The first is the challenge from platform to user experience ecology;

Secondly, from user experience ecology to lifelong users;

The third challenge is the emergence of new species through the self-evolution of makers.

2.1 Ecology from Platform to User Experience

I believe that in the Internet of Things era, products will be replaced by scenes and industries will be covered by ecology.

Products will be replaced by scenes: there will be no perfect products in the future. In the past, in the product era, you could make a functional appliance almost perfect, but not in the Internet of Things era. For example, a refrigerator can be almost perfect if it is only an electrical appliance that cools, but if the electrical appliance becomes a net device, the net device should be connected with the user’s scene experience. What the user wants is not a functional product, but an iterative solution to the experience. Then, you have to constantly improve according to the user’s experience iteration. Therefore, there will be no isolated products in the future, and all products will be combined into one scene, such as Haier Smart Family.

Industry will be covered by ecology: the original industry boundary is very clear, but when it comes to ecology, because the needs of users are scene-based, an ecology covers many industries. For example, Haier Zhijia Store No.001 in Shanghai, the average sales of this store to each consumer is 400,000, and no product can sell 400,000, even if a car sells 400,000, it is high-end. This shows that what users want is not a product, but a scenario solution.

When I gave a speech in Vienna last month, foreigners always didn’t understand. I said, for example, this coat is very beautiful, this pair of trousers is also very beautiful, this shirt is also very beautiful, and this tie is also very beautiful, but they are not harmonious together. Together, it is called a scene, and a single piece of clothing is a product. For one person, the coordination of collocation may not be harmonious for another person, because everyone’s temperament is different, which is called the personalized needs of users. At present, the best-selling store in Haier Zhijia Shanghai No.001 is the smart balcony scene, which sells tens of thousands of sets a month. In this scenario, washing machines, dryers, fitness equipment, cabinets, clothes racks and so on are the main ones. If it is not a scene, but a single brand product, it will not be able to meet the individual needs of users. The only way is for everyone to jointly create value and share it in value.

2.2 From the ecology of user experience to lifelong users

Haier Internet of Clothes Experience Store has just opened in Qingdao. Some people on the internet really don’t understand what industry the Internet of Clothes is, and they really don’t understand it. Why? Because it covers eight industries. Eight different industries create a win-win situation. This value cannot be measured by three tables of traditional finance. We have created a win-win value-added table, which is called the fourth table by the American Institute of Management Accounting. The most difference from the first three tables is that the win-win value-added table has not only product income, but also ecological income, not only product income, but also ecological income. The CEO of the American Institute of Management Accounting said that all startups and listed companies should have this fourth form. Why? The reason is that this table can fully reflect the value of your company and the value of users. The subversion of the win-win value-added statement to the traditional financial statements is essentially the subversion of the traditional economic theory by the integration of people and individuals. The law of traditional economics is diminishing marginal income, and the win-win value-added table can realize increasing marginal income.

Another difference of the win-win value-added table is that as mentioned earlier, others only have trading customers, and we are interactive users. In the end, you will definitely generate lifelong users. American economists also believe that the core competitiveness of enterprises in the 21st century depends on who has more lifelong users.

2.3 Emergence of new species through the self-evolution of makers

An important symbol of ecology is the emergence and evolution of new species. Haier Bio is a new species emerging in Haier’s ecology. Unlike other listed biotechnology companies, Haier Bio is an Internet of Things technology ecology and a product of the Internet of Things era.

We didn’t have either. In the past, we only provided hospitals with freezers for storing blood, but after going in, we found that there was a big problem in hospitals and blood stations, which was the waste of blood. It is difficult to collect blood while wasting a lot. We use the Internet of Things solution to connect all nodes together and become a blood network, which brings zero waste of blood and zero waiting for patients, thus producing a new species. Ecology should be like a tropical rain forest, with new life and death every day, but it can constantly evolve new species, which is the most important thing.

Third, universality

Follow the waves and print Wan Chuan on the moon.

"Follow the waves" comes from three sentences of Zen Cloud Gate, which means to cover Gan Kun, cut off the crowd and follow the waves. Take the integration of people and individuals as an example. The three sentences respectively reflect the epochal, leading and universal nature of the management model. In terms of management theory, in the past, it was classic management theory, such as Japanese and American management models. Now is the era of the Internet of Things, and we should create a model that adapts to the Internet of Things-the integration of people and individuals; If the integration of people into one is successful, the original classic management model will be cut off; The success of the "person-single-in-one" model lies in its adaptability under any circumstances.

Wan Chuan, who printed on the moon, came from Huayan Sect of Buddhism. "All water shines in January, and all hidden water is photographed in January". It means that the moon has come out, there is a moon in every water, there is a moon in all water, and all the moons in the water are reflected by this moon, but its essence and soul are in the moon itself. In other words, our model can be applied in other places. The unity of man and woman is universal, but the unity of man and woman itself needs to keep developing, improving and subverting with the times in order to shine brighter.

1, academic and theoretical recognition

Up to now, the academic and business circles have begun to generally recognize the mode of "one person and one person". Many scholars and entrepreneurs from all over the world attended the Drucker Forum in Vienna. I was invited to attend three times. When I first went to attend in 2015, I talked about the exploration of the integration of people and singles. It is said that at noon that day, European and American scholars and entrepreneurs fried the fryer at lunch. They thought it was impossible and impossible. We have tried many ways to control it, but we can’t control it. How can you decentralize and mediate? After I went to talk about it again in 2018, they tweeted that it seems that Haier is in the right direction and we can follow him to explore. Not only did I talk about it this year, but I also brought a practical case of the Internet of Food. They already agreed that it is necessary to speed up the implementation now, and if it is slow, it may be abandoned by the times.

Nine of the top ten business schools in the world have received the case of Haier’s one-on-one integration. Among them, Harvard Business School has made three cases of "one person in one" up to now. Harvard Business Review also published a special cover article, which caused a sensation, and many enterprises and scholars came here after reading the article.

David Thies, a famous management scientist, believes that Haier is at the forefront of the times in two dimensions: self-organization and decentralization. He was the first to suggest that an enterprise can create two different goals at the same time, but it is difficult to achieve the best in two dimensions at the same time. For example, Kodak had only one dimension and finally collapsed. I told Tis that you are studying a dual enterprise, and we are doing a diversified enterprise. Each of us is starting a business with the same goal and direction, but the path is different. This is a bit like what I said at the beginning, "different roads lead to the same goal."

2. Effective pilot projects

There have been many successful experiments on the universality of the integration of people and individuals.

In terms of cross-cultural replication:

For example, GEA, when we first merged, basically did not grow, but now, GEA has achieved double-digit growth in the case of negative growth in the US market. One of the most important reasons is that the integration of people and individuals has changed the original distribution model of GEA. The incentive theory of American enterprises originates from Friedman’s shareholder first and long-term profit maximization of enterprises. According to Friedman’s theory, American enterprises generally implement principal-agent incentive, which is also called "golden handcuffs" option. GEA had 12,000 people before our merger, and only a dozen people enjoyed options. Now it has become a small micro, and everyone can share it in value. Now there are 3,000 people who can share it. The integration of people and individuals, especially the change of salary, has created greater value-added space and development space for GEA.

For example, Russian Haier. Due to the great changes in the exchange rate, Russian Haier was once abandoned, but I really didn’t expect that Russian Xiaowei took out his own funds to participate in gambling and voting according to the idea of combining people with singles, creating a miracle that Russians thought was impossible. In winter to MINUS 30 degrees, Russia is used to stopping work, but Russia Xiaowei overcame difficulties, created conditions in winter and started construction as usual, and built a Russian factory in less than a year. Now, Haier in Russia is also developing very well.

For example, in Sanyo, Japan, the team spirit of Japanese enterprises has always adhered to lifelong employment and annual salary. After our merger, we turned it into a micro, and now we are doing well.

Candy, for example, we just acquired it. When European companies think that the market is in the off-season, Candy changes the original organizational structure by employing the mode of one person and one person, and creates market growth with small and micro-innovation of entrepreneurship.

3. Learning and imitation in different industries around the world.

The mode of "one person and one person" is causing learning and replication in different industries.

Russian steel giants just came to Haier to study this month. After they returned to China, they reported to the CEO, who decided to personally bring the senior management team to study next year. The media industry, such as the central kitchen of People’s Daily, is also copying Haier’s "one-in-one" micro-model, changing the original mode of fighting separately. Lu Luqi Travel Network in the tourism industry bought a book introducing Haier’s "one-in-one" in the bookstore, and after studying, it implemented the entrepreneurial partner system within the enterprise, with an increase of 300% in one year. Decathlon, a French sports goods retailer, has also come to study.

The integration of people and singles has not only been replicated in different countries and industries, but also been welcomed within the scope of domestic central enterprises. What they are most interested in is the change of functional management department.

Let’s start with a set of numbers.

Ten years ago, when our human resources platform was first integrated, there were more than 200 people. Later, it was reduced to 100 people. This year, it was reduced to 47 people, and only 7 people will be there next year. When the financial sharing platform was first integrated, the number of people was 1,500, which was reduced to 240 this year, and the target for next year is only 150. Because they are not the previous functional departments, but the cloud service platform. The visitors from the central enterprises are very surprised, but it is more difficult to change. The difficulty lies in our two "threes". One is the transfer of three rights, the decision-making right, the use of human rights and the salary right are all transferred to Xiaowei, and the other is the "nonlinear system of three zeros", with zero distance, zero signature and zero delay. These two "threes" make many people feel incredible.

Cross-industry and cross-cultural replication of "person-in-one" is accelerating. Next year, at 920, we will implement the best practice award of "person-in-one" model on a global scale. Enterprises from different industries and countries can come to participate.

4. Eternal pursuit: an enterprise that has evolved into the times.

What we have done, the ultimate goal is only one, that is, to become an enterprise in a self-evolving era. Has the current integration of people and things and the ecology of the Internet of Things come to an end? No. There may be something new behind the Internet of Things, and the times are always changing. There are no successful enterprises, only enterprises of the times. As Stuart Crene said in "One Hundred Years of Management", there is no ultimate answer to management, only eternal questioning.

[Conclusion]

The final conclusion is a passage of Marx in the third volume of Das Kapital:

"Workers’ own cooperative factory … the opposition between capital and labor has been sublated in this factory, although at first it was only sublated in the following form, that is, workers as a consortium are their own capitalists, that is, they use the means of production to add value to their own labor."

We interpret this passage in three sentences.

The first sentence is "workers’ own cooperative factory". What we are doing now is that employees become makers, makers become small and micro, small and micro change chain groups, and chain groups finally become listed companies. This is like the workers’ own cooperative factory.

The second sentence, "workers as a consortium are their own capitalists". Liu Zhanjie of Haier Bio-Micro is his own capitalist. He does not work for shareholders, but creates and shares value by himself, which solves the contradiction between capital and labor as Marx said.

The last sentence, "make their own labor add value." This is what we call value-added sharing.

What we are doing now may still be questioned, but according to Marx’s theory, we fully meet the requirement of "workers’ own cooperative factories".

When I gave a speech in London in 2015, I paid a special visit to Marx’s grave. Below the stone statue is an epitaph of his, which is a sentence in Marx’s works-"Philosophers only explain the world in different ways, and the problem is to change the world." (Outline on Feuerbach)

All we are doing today is to change the world, and change the world into the world required by the Internet of Things era. Specifically, it is to change two points:

First, change the enterprise, from the original walled garden to a tropical rainforest-style business ecosystem that can evolve itself.

Second, change the lifestyle, change the traditional lifestyle into the lifestyle of the Internet of Things era, from the original product-oriented to the scene and ecology-oriented.

If we can do these two things, we can let users of different countries and nationalities enjoy a good life in the Internet of Things era, and then we will be worthy of this era.

(end)

Original title: "Zhang Ruimin’s latest speech: Internet of Things is not the end (with full text attached)"