Thursday, December 23, 2010

Haier "single-in-one" strategy--Zhang ruimin global competition for new thinking

"We win in the global market development patterns? why we want to determine a development mode? what well this development mode?"

Zhang ruimin asking high-speed growth of Haier, also asked all begin with Chinese companies.

If we really want to wipe out inventory and accounts receivable two "apocalyptic" to true enables enterprises to meet the needs of the market to meet, to truly learn the essence of Toyota, Dell and beyond, but let each employee in the face of the market and embrace the market, the creation of the market, thereby continuing to have the market! "is the only single-in-one!"

This is Zhang ruimin, Haier future global competitiveness on the source of the latest thinking and innovative design. In the meantime, includes vision, wisdom, and courage.

Haier mode is "single-in-one"! ■ Haier Group CEO and the Chairman of the foreign management magazine Zhang ruimin

We win in the global market development patterns?

Why should we determine a development mode?

What to do the development mode?

The reason for mentioning these three issues, because we in the international market of relatively small, while there is inventory, accounts receivable, but not much harm. However, with the scale of these problems are very big. Therefore, we need innovation in development mode.

Haier what win global?

Haier's win in the global market is the fundamental guarantee? "one single-in-one" development mode, it is also a competition model.

What is a "man-in-one" models alone? what is its content includes: "single-in-one" and "direct sales straight hair" and "positive cash flow". "Single-in-1" is to participate in market competition mode; "direct straight hair" is a "person" single-in-; "positive cash flow" is "one single-in-one" at least in the present is the most important and must guarantee results.

"Single-in-one"

"Single-in-one" is everyone has their own orders, orders, and every order is someone responsible for it. Many orders are orders into "orphans" because no one is responsible for it. Inventory, accounts receivable are also. So, we first need to understand: the order is the market, that is to say everyone and market together. The case, then the quality level and the quality of the order. That is, the higher the quality, the higher the quality of the order. Get more valuable orders, moreover does not produce inventory, not become receivable. In other words, in order to create value in the market, reflecting human value. Therefore, each person's income should and orders. "Single-in-one" and the market into one, and then everyone will be to create a market of "SBU" (strategic business unit), each operating on the market.

"Direct straight hair"

This is the "man-in-one" basis alone, require direct marketing, direct shipments, services in place. Why is direct marketing? this is first necessary to understand the concept of marketing. United States management guru Drucker has one: marketing's purpose is to allow promotions become unnecessary. In other words, do marketing there is no need to do marketing, instead do not need to do work in the field. In fact, the marketing and promotion is the biggest different is this: marketing is to keep the product always someone needs promotion is always sold inventory. Marketing a start of a market demand, combined with the customer win-win orders; design is based on the needs of users, and customers. This product is definitely someone willing to sell.

Promotion to the contrary. No marketing of sales is to sell the inventory and sell inventory final result is reduced. Therefore, direct selling is not to say that you directly to ask customers what you want, but that directly address the needs of the market users to create the product. As a result, the direct marketing is not just the sales business, but designers, production staff, sales people, and so the whole system is the responsibility of everyone.

In direct marketing, it may be shipped directly, or you may become a backlog. Whereas straight hair is a must. Why we forget, in Qingdao free trade zone storage fees? every square meter US $ 6 per month. But in the United States New York? per square meter US $ 50 per month, a lot of times the product of a stay! so, probably should have money has become unprofitable. Visible for straight hair brings more than just a cost issue, more important is the issue of survival.

"Positive cash flow"

Has both a positive cash flow, high growth enterprises is very important. For example, cash flow to the enterprise in terms equivalent to enterprise air, profit is the equivalent of blood, if no air people will be stifled. So Japan enterprises have a concept called "black" bankruptcy "is the enterprise profit but to bankruptcy, because there is no cash flow. Why is there no cash flow because the goods on the market cannot be realised, the money does not come back.

What we do? if you first create the products to customer needs, while also find high-quality customers.

Bank of Japan, Haier, through the assessment of the credibility of all customers, and then run the process to give a dynamic control, credit is not good at any time to remove, so Japan Haier has not receivable. A short, or a combination of "sin."

Then, for example, the United States created by Mike refrigerator of Haier. Today, Mike freezer offers made not only in the United States and in Australia, sell well. Why because others have not, customers and demand, it's that simple.

In addition, Haier Korea find flat panel TV's value is too high, do not dare to one day of inventory, is afraid of sluggish, so one day

Market officer simply advance in Korea first. Advance the true expression to the "single-in-one" concept — the product should not be stranded one day!

Why must the "unity" of people SIN?

Realization of single-in-one ",", the first is the needs of the times, the second is the competition requirements.

With regard to the requirements of the times

In the information age, must have the speed and accuracy of unity, in order to survive.

On the one hand, the information age products supply exceeds demand, now there is no product can be said to be the profits, and only ever go to create a market, that is to say it is "the user say" era.

On the other hand, now all the information on the Internet at a glance, this amounts to saying that global distributors, producers have to accept consumer test. Therefore, the speed is, can you get in front of others, consumer choice is important. But it also brings a new problem — accuracy. The first step in fighting over, consumers chose you, but if the supply of quality, delivery time, the final user not happy, you will not be able to get the second order. So we're like a flying target, both fast and accurate terms for enterprise is a very big challenge. One of the world 500 strongest enterprises in decades has 2/3 have been eliminated, it is important to keep up with the times. Now many companies still playing fixed target — allows you to have time to slowly aiming, slowly study — but this time no longer exists. Waiting for you to market research clearly, had no chance. This requires us to improve the quality of their own.

If every customer is a flying target, so the number of flying targets. If you rely on an enterprise are all flying target study clearly is not possible, because every flying target is not the same. Therefore, this requires each employee to directly face the market, each person and his order, his market together, otherwise you could not get this market.

With speed and accuracy, nor instructions already have a competitive advantage, but is only able to survive in the age of access.

With regard to the requirements of the competition

Haier is a young company, only 20 years, but our rivals are very experienced. We should learn to competitors, but not be able to remain in imitation, otherwise it will never surpass them. We only innovation, i.e. in the same time we do better than them faster, at the same time we do it better than they could surpass them. For innovation, a very important point: you cannot be part of a person or persons, but each one is the "man-in-one" alone, they should have a market for innovation.

We are talking about direct marketing, is a system: the first step is a developer, how on product innovation, so that it must be in the market to win more users; the second step is manufacturing personnel, how to make a product defect; the third step is the marketing personnel, and how to achieve zero inventory. Everyone has their own markets, but has big and small. If each of us in innovation, and each person's potential is immeasurable, we add up the sum must be greater than any one company. We conduct market chain BPR is to put each one made of SBU.

United States of Wharton School professor Marshall our market chain case, he said: "If the Haier can do that, sure is the world's most competitive business, but really this is very, very difficult. "But no matter how difficult, as long as you do this to our competitors, we have not included any price to get it!

How can the "unity" of people SIN?

I think there should be three: the first is the concept of innovation, the second is the process reengineering, and the third is the corporate culture.

The concept of innovation

The concept of innovation is to "single-in-one" models requires constantly challenge ourselves. I think now there were some errors, for example: beyond the competition, this year I went to Europe twice, Haier Europe managers have worked in the world famous brand enterprises worked, they told me: "my original service company is a century-old shop, I was well aware of their strength is very strong, Haier's strength as they are now, how are we going to surpass them?" and I will tell them: If you follow you in the company's original idea to do this work, we do not always go beyond. This requires each of us to innovate, if you follow the "one single-in-one" this mode really do, you will be able to go beyond. They, after all, this action also seem slower. So I think: especially for leaders, the concept of innovation is critical.

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