Haier: Organizing to Build Smart Products
Sometime last year, I worked with Professors Michael Lee and Wesley Koo on the development of a teaching case on Haier and its Rendanheyi model. The case was recently published by INSEAD — one of the world's leading (and largest) business schools. Check it out.
The case, titled "Haier: Organizing to Build a Smart Ecosystem Brand," describes the recent evolution of Haier’s radically decentralized, market-based organizing model known as Rendanheyi.
In the case, we explore how the latest evolution of the Rendanheyi model supports Haier’s newest strategy of creating a platform ecosystem of interconnected products and services that adapt intelligently to a user's needs.
The teaching case introduces students to key topics in both organizational design and tech ecosystems.
On INSEAD's website, we advocate that the case can be used in the following settings:
- A core course on organizational behavior to highlight traditional organization design concepts, such as the link between strategy and structure, and the trade-offs between internal competition and collaboration while exploring less hierarchical forms of organizing.
- A specialized class on organizational design to explore radically decentralized organizational designs that incorporate market dynamics within the boundaries of a traditional firm, and the related benefits and tensions that arise.
- A strategy core course and electives on technology strategy to teach ecosystem strategy, where the prime objective is to understand how different technologies work together to deliver a coherent experience for the end user, and how an ecosystem leader galvanizes complementors (both external and internal) to make that happen.
- A marketing class, to teach the novel concept of ecosystem brands where companies utilize a combination of products and services to create a joint value proposition.
Interested to learn more about the case? Take a look at INSEAD's website and check out our teaching case.
Corporate Rebels Academy
Haier and its Rendanheyi model is also a key case at our own Corporate Rebels Academy. Check it out!.