Iot Ecosystem Brand White Paper

IoT Ecosystem Brand White Paper The Standards and Definition of IoT Ecosystem Brand September 20th, 2020 IoT Ecosystem Brand White Paper 1 There are times when it is wise for important role in business growth Foreword corporations to take a pregnant in the years to come. Frameworks pause. To look around and see if the that encourage entrepreneurism very things that have made them and put the customer at the center successful are the right ingredients of the organisation to create lasting to secure success in the future. lifetime value right across a vibrant ecosystem. As a diligent student of corporate history and business transformation But here is the issue that has been myself it is often easy to spot, with troubling me and many others for the magic of hindsight, the point at some time. which a successful company started to fail. From then on, it's often a long, Our financial accounting models, undignified journey of management performance metrics, calculations denial and subsequent terminal of economic profit, ROCE and many David Roth decline with the destruction of much of the established metrics that shareholder value along the way. analysts plug into their spreadsheets to uncover hidden value, are all CEO The Store WPP, Corporations have a bad habit of part of an old model - a model not Chairman BrandZTM thinking they will last forever - that's designed for an ecosystem era. and BAV Group, how they are built and structured. Global They struggle to extract onto the Consumers and customers have a balance sheet the true value the very different mindset as viewed ecosystem is creating, the value to through the lens of their changing the firm, it's ecosystem partners and attitudes and bonds towards the their respective brands. brand and their purchase decision behaviour. It's bit like navigating using old maps or uncalibrated sat nav. When a business is fast growing and successful it is doubly difficult This is one of the many reasons that to look at itself, look into the future I warmly welcome this white paper. I and see something very different am sure that we will look back at its to others. And it's even harder to publication as a seminal contribution completely change itself with to a to uncovering the true value of new philosophy and radical model of ecosystem brands. It will, I hope, operation to deliver the change well be a catalyst for rich debate and before it is needed. development in the best traditions of academic and business research. So, I have the utmost respect for Haier under the leadership We would all do well to read and of Chairman Ruimin Zhang and consider this. To respond to this President Yunjie Zhou for doing significant contribution in the just that. Envisioning, creating and development of the ecosystem implementing the Rendanheyi as a recognisable value creator - business model for an IoT ecosystem especially as we enter an IoT world age business within Haier. and New days and New ways for the world and the "business of business". I am convinced that the ecosystem; ecosystem brands and ecosystem centric organisations will play a vitally 1 IoT Ecosystem Brand White Paper Brand is the trend-setter and exploration, was turned into reality Foreword barometer of business competition. in Haier. Last year, BrandZTM rated In the traditional industrial era, Haier the only IoT ecosystem brand enterprises are either global brands among Top 100 Most Valuable Global or OEMs of global brands; in the Brands, marking that ecosystem mobile Internet era, enterprises brands become a new trend-setter either own platform brands or in commercial practice. This White are owned by platform brands; in Paper on IoT Ecosystem Brand the IoT era, enterprises either compiled by experts from Kantar transform into ecosystem brand and Saïd Business School, University leaders or become partners of of Oxford pushed ecosystem brands ecosystem brands. from a trend-setter to an operable and replicable system. No matter what era we are in, the brand guarantees premium. The In an ecosystem brand system, Ruimin Zhang premium of product brands lies in there is no boundary or endpoint. quality; that of platform brands lies As ecosystem partners are flooding in traffic; and that of ecosystem into the system, continuous system Chairman of brands lies in experience iteration. iteration will finally take place as a the Board and result of common innovation and CEO of Haier Group Over the last decade, we have optimization. From my experience of witnessed the disruptive change ecosystem brand building, I would brought by platform brands to summarize it as "three-less": product brands. However, the platform brands and product Seamless experience, boundless brands were found unchanged in ecosystem and auto-sensing nature, both of which dealt with payment. transactions in the Zero-sum Game. With demise of the traffic Seamless experience means dividend, for-trading platform integrated interaction between brands may not always be able to users and partners, i.e., iterated survive from unpredictable recession experience for life-long users. even if they've once enjoyed rapid Boundless ecosystem indicates prosperity, which is a natural order. border-free integration of products As James Carse said, finite games and industries, more to the point, are played in order to be won, but "products would be replaced by infinite games' object is ensuring the scenarios and industries would be continuation of play. In this sense, covered by ecosystems". In auto- ecosystem brands are playing an sensing payment, "things" in the IoT infinite game in the IoT era. can be automatically ordered, paid and delivered, i.e., a comprehensive When I first proposed the creation of barrier-free payment experience ecosystem brands three years ago, based on disintermediation. there was no relevant experience I can draw for reference, nor Suppose that product brands traditional economic theories and arise out of product economy, management theories can be and platform brands arise out applied. In communication with W. of platform economy, then Brian Arthur, the coiner of complexity ecosystem brands are the inevitable economics and Danah Zohar, result of community economy, founder of quantum management sharing economy and experience theory, they were supportive to the economy, which are exactly the key concept. They can hardly believe characteristics of the IoT economy. that such a concept, which was thought to be mere theoretical 2 Competition in the IoT economy is thus elevated, and game-players were changed from enterprises and industry chains to various business ecosystems. James Moore who initiated the theory of business ecosystems casts eyes to Haier's ecosystem brand innovation. Haier's ecosystem model is inspired by his theory, and Haier, in return, inspired him to write a new business ecosystem book based on his investigation research and his findings about the epoch-making and leading business ecosystem from Haier's practice. IoT will never be the end because new progress of science and technology is speeding up exponentially. Only by upholding the idea of people value maximization and unleashing the infinite potential of all through the Rendanheyi model can the value of science and technology be realized. In this respect, I agree with James Moore that institutional innovation is the "meta-technology" in all technical innovation because people are the only factor capable of generating assets appreciation. 3 IoT Ecosystem Brand White Paper 4 Content PREFACE The Future Has Arrived 06 CHAPTER ONE The Inevitability of IoT Ecosystem Brand in the IoT Era 08 1.1 General Features of the IoT Era 10 1.2 Economic Features of the IoT Era 12 1.3 Brand Paradigm in the IoT Era 16 CHAPTER TWO Standards and Definition of IoT Ecosystem Brand 18 2.1 The Core Differences between Definitions for Traditional 20 and Ecosystem Brand 2.2 Standards and Definition of IoT Ecosystem Brand 22 2.3 Developing a Model of IoT Ecosystem Brand 59 CHAPTER THREE The Impact of IoT Ecosystem Brand 62 3.1 Organizational Reinvention of IoT Ecosystem Brand 64 3.2 Social Responsibility of IoT Ecosystem Brand 74 CONCLUSION 76 APPENDIX 78 5 IoT Ecosystem Brand White Paper PREFACE The Future Has Arrived 6 PREFACE • The Future Has Arrived We now live in a world where technology is ubiquitous. In order to gain an advantage over the global IoT competition, enterprises must not only pursue When you wake up in the morning, your coffee innovation in technology and products, but also has already been brewed in the kitchen. When the build a unique 'moat' for themselves through refrigerator detects that you're running low on eggs, model innovation. With the speed of technology it automatically places an order directly from the and product iteration becoming increasingly faster, farm. When your vehicle detects broken wine bottles the "blue ocean" is being rapidly transformed into on the road, it automatically circumvents them. At a "red ocean", i.e. homogeneous competition, night when nobody is on duty, the factory and its making it difficult for enterprises to rely solely on the equipment are still operating tireless, with efficiency innovation of technology and products to maintain unhindered. Indeed, the beauty of this new world can their competitiveness. In contrast, the leaders of be found in every tiny facet of life. model innovation can often build a higher moat for themselves by reshaping various relationships, such According to the Mobile Economy 2020 report by the as the relationship between enterprises and users/ Global System for Mobile Communications Association partners (brand paradigm) and the relationship (GSMA), IoT connections in the world reached 12 between enterprises and employees (organizational billion in 2019 and is expected to increase to 24.6 form), as well as changing the means of creating and billion by 2025.

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