Rendanheyi - Driving Innovation through Corporate Entrepreneurship at Haier
| Case Code: LDEN189 Case Length: 18 Pages Period: 2005-2018 Pub Date: 2022 Teaching Note: Available |
Price: Rs.400 Organization : Haier Group Corporation Industry :Electrical & Electronics Countries : China Themes: Corporate Entrepreneurship, Leadership and Change Management, Strategies |
Abstract Case Intro 1 Case Intro 2 Excerpts
Abstract
Rendanheyi, meaning integration of people and goals, was a platform of management practices implemented by China-based Haier Group. It helped the company transform from a conventional appliance manufacturer to an entrepreneurial company that was highly responsive to customer needs, and thus achieve ‘zero distance from the user’. Introduced by its CEO, ZHANG Ruimin (Zhang), Rendanheyi was implemented in several phases lasting over a decade. In each phase several new practices were introduced which challenged the existing conventions of the way organizations were run.
Rendanheyi changed Haier from a huge conglomerate to a highly nimble company of several microenterprises, each run by a CEO, and operated with its own agenda. Over the years the model became more encompassing, and Haier collaborated with customers, developers, research organizations and universities, and even competitors, in order to provide customers with what they wanted.
For the next phase Zhang was looking at taking advantage of the Internet of Things (IoT), and using the gathered user data for user engagement and feedback, customization of products, and integration of users into manufacturing processes.
It remained to be seen if Rendanheyi would be adopted by organizations across the world.
Issues
The case is structured to achieve the following teaching objectives:
- Understand the concept of corporate entrepreneurship and examine its evolution.
- Study the drivers of management innovation in organizations and understand how companies can benefit from innovations.
- Examine the role of corporate entrepreneurship in driving innovation and see how it can be sustained.
Contents
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Introduction
Corporate Entrepreneurship at Haier
Model to Transform Haier
The Future
The Road Ahead
Exhibits
Keywords
Haier; Transformation; Leadership; Change Management; microenterprises; entrepreneurship culture; co-creation through internet platforms; Internet of Things
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