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Haier’s Global Open Innovation Ecosystem

2015-11-13

Haier has established an open innovation system which is online-offline combined and supported by the global five R&D centers and HOPE.
 
一、Haier’s Global Five R&D Centers
 
So far, Haier has established five R&D centers in China, the United States, Asia, Europe and Australia which are closely connected to over 100 thousand first-class resources and 1.2 million scientists and engineers to form an innovation ecosystem of first-class resources by the 1150 interface people. In this way, each R&D center acts as a connector and an amplifier which facilitate Haier’s cooperation with local partners, creating a network spreading over the world.
 
The five R&D centers boast world-leading hardware R&D ability:
 
1. the largest product test and user experience center over 100,000㎡
 
2. the most comprehensive associated lab covering 50 fields of 6 categories
 
3. the most influential innovation and entrepreneurialism base-the organization department of CCCPC-authorized “Overseas High-Level Talent Innovation and Entrepreneurialism Base” attracting nearly 200 experts
 
4. the largest number of innovative products-the whole-process R&D ability to launch over 1000 new products of several hundred categories of 14 main classes every year
 
二、 Haier’s Open Innovation Platform HOPE (Haier Open Partnership Ecosystem)
 
 
Haier’s open innovation platform (hope.haier.com)is called HOPE, a network platform where Haier and global partners interact innovation needs and seek outstanding solutions, aimed at building a professional circle of individual and a community of global innovation and interaction through knowledge and resource sharing.
 
1. The Positioning of HOPE
 
HOPE is the world’s largest parallel ecosystem platform led by iteration.
 
2. The Tenet of HOPE
 
Cultural idea: openness, cooperation, innovation and sharing
 
Operation idea: innovative technology market as the guide, automatic matching of demand and resource as the mission and value maximization of all parties as the target
 
Service idea: to provide users with personalized precise matching service
 
3. The Mission of HOPE
 
To present global innovation information of advanced technology
 
To integrate various solutions and intelligence
 
To collect global ideas and transform them into products
 
To connect people who need technology to global outstanding solutions
 
To promote technological innovation of smart home, Internet of Things and smart appliances.
 
4. Introduction to HOPE Business
 
Convert technology into products and shorten the cycle of R&D and marketization through automatic matching of technology provider and demand side.
 
Realize intelligent analysis and matching through business intelligence, and recommend and match demand, resource and technology information for users.
 
Technology side, resource side and common users give more suggestions on product ideas through interaction on the platform, so that developers can find more practical and market-oriented directions and expand product influence.
 
Attract geeks to deep interaction and search for the first batch of partners and fans.
 
The platform will provide resources for all stages, such as market analysis, financing and incubation, hardware development, software development, big data, industrial design, production and supply and channel marketing.
 
5. The Target Groups of HOPE
 
Professional field of innovative technology: R&D authorities, research institutes, colleges, individual technological experts (professors, scholars and students.)
 
Innovative product completion and incubation: start-ups, geeks, risk investment and venture capital investment and engineers.
 
6. The Business Mode of HOPE
 
① Cooperation modes for risk investors: Help start-ups in which investors invest to authorize technology and acquire royalty for technology licensing. Help start-ups in which investors invest to develop new products and share the profits on the basis of cooperation. After assessment, Haier will be involved in the start-ups and release their products in Chinese market. Start-ups then become Haier’s suppliers and the two parties sign long-term partnership agreements.
 
② Cooperation modes for technological intermediaries/ technology consulting companies: Recommend resources. Recommend solution resources based on Haier’s needs. Achieve cooperation through verification. Technology agency by which the agent performs as a full-fledged member in negotiations with Haier and Haier agent of external technology resources.
 
③ Cooperation modes for R&D personnel in colleges: Conduct project cooperation, industrialize research achievements, promote the combination of production, teaching and research and provide R&D fund. Co-build association labs, set input and output and promote achievement transformation of colleges. Conduct patent cooperation, industrialize college patent achievements, and allow authorization and buyout. Recruit experts to participate in Haier’s R&D and trace technological trend and grant them subsidies. Conduct vertical subject cooperation and jointly declare and undertake technological projects. Accelerate incubation, provide user resources for innovation achievement marketization and help the owners apply for risk investment. Haier directly invests through CVC to technology achievements within its industrial sphere.
 
④ Cooperation modes for start-ups: Conduct patent cooperation and patent achievement industrialization, which allows authorization and buyout. Accelerate incubation, provide user resources for the marketization of innovation achievements and help the owners apply for risk investment. Haier directly invests through CVC to technology achievements within its industrial sphere.
 
⑤ Cooperation modes for resource network: Recommend resources. Recommend solution resources based on Haier’s needs. Technology and technology resource agency by which the agent performs as a full-fledged member in negotiations with Haier. Haier agent of external technology resources through application.
 
⑥ Cooperation modes for geeks: Recommend resources. Recommend solution resources based on Haier’s needs. Geeks can act as Haier’s agents external technology resources through application. Or Haier agent of external technology resources through application.
 
7. The advantages of HOPE
 
① Haier group and its technical team provide strong support for HOPE.
 
② Large information database and authoritative solutions of technical experts provide users with professional support and help.
 
③ HOPE provides new cooperation and interaction ways for both supply and demand sides of innovative technology.
 
④ It precisely matches desired technical teams or producers for users.
 
8. The Ecosystem of HOPE
 
HOPE has thoroughly broken the barriers between users and resources, becoming the largest open innovation community in China and the largest innovation resource allocation platform in Asia. Open to the whole world now, HOPE has built a resource network covering over 2 million first-class resources. More than 100 thousand resources have registered on the platform with over 500 ideas created each month and over 200 innovation projects incubated each year.
 
Seven ecosystems have formed on this platform, including air ecosystem, food ecosystem, body care ecosystem, water ecosystem and health ecosystem, etc. Advanced innovation achievements and disruptive user experience are constantly created through interaction between users and partners.
 
On this platform, different innovation agencies are attracting each other and cooperating to innovate. They are world-top universities such as MIT and Stanford, outstanding innovation organizations such as CAS and Fraunhofer-Gesellschaft of Germany, small start-ups of technology, established innovative businesses and a number of Internet enterprises. All parties are trying their best to create outstanding user experience.
 
Intellectual technologies such as big data and deep learning are adopted on HOPE, greatly improving the efficiency of resource allocation. Background data are capable of cascade matching according to global technology thermodynamic diagram and user pain-point thermodynamic diagram, thus discovering resources that could meet users’ needs. And then it is possible to interact with users and innovate after feedbacks are collected.
 
9. The Construction of HOPE: Three Sections and Five Capabilities
 
Hope contains three sections: community interaction, idea transformation and technology matching.
 
Community Interaction: Through community operation, the platform has attracted a large number of users to interact in various activities. It’s possible to fully understand users’ needs for various home appliances by analyzing and dealing with background data after an accumulation of user flow. With further processing, these data can be rapidly transformed into product plans. Meanwhile, a large user flow can also provide an environment and a reliable foundation of user verification for idea verification.
 
Technology Matching: Up to now, over 100 thousand technology resources have registered on HOPE with their technical solutions, of which the structural data lay a fine data foundation for big data matching. Any user requirement submitted to HOPE can be rapidly and precisely matched to proper solutions through big data matching in the background, which permits Haier to launch new products meeting the needs of users timely.
 
Idea Transformation: The large amounts of information of user demands and technical solution on HOPE, after reprocessing, can form various feasible product solutions, which, supported by Haier’s six transformation funds, can constantly produce products that meet users’ needs and iterate and innovate products.
 
Based on the three sections above, HOPE have possessed five core capabilities that support the rapid development of the platform and promote speedy innovation and disruption.
 
Capability 1: The ability to trace the latest trend of industrial technologies. In addition to the big data bug system, HOPE is equipped with professional analysis teams that systematically analyze the latest technological information, timely push their analysis and provide decision supports to micro-enterprises.
 
Capability 2: The ability to build professional interaction circles. There are dozens and even hundreds of first-class experts in HOPE’s various technical spheres concerning family life. They interact online with users and the resource side, creating interaction circles of subdivision technologies where a certain kind of technical problems can be solved.
 
Capability 3: The ability to constantly create disruptive ideas and incubate them. Fans and technical masters on the platform constantly interact various ideas. All users and resources participating in idea interaction can share the profits of products to be launched in the future.
 
Capability 4: The ability to rapidly and precisely match whole-process resources. The powerful searching and matching engine of HOPE can rapidly match the resource base, solution base, demand base and idea base in the background with a accuracy of 70%.
 
Capability 5: The ability to provide full-range support to idea transformation. Haier provides full-range support for makers from the proposal, interaction and incubation of ideas to industrialization and marketing.
 
三、Haier Shares Market Values with Innovation Partners Through Various Sharing Mechanisms.
 
1. Co-Construction of Patent Pools: Haier has co-built patent pools in which over 100 patents are included with such partners as DOW and University of Leeds. All parties share the profits from patent authorization on the basis of joint operation. Up to now, Haier and its partners have co-built 7 patent pools of which 2 have reached national level.
 
2. Involvement of Module Makers in Advanced Design and Profitable Sharing: Company E, an enterprise engaged in refrigeration solution with outstanding design ability, co-developed products extremely popular among users with Haier, becoming Haier’s supplier. This mode, compared with traditional ones, has improved the overall product R&D efficiency by 30% and has reduced the time for new product development for 70%. So far, over 50% module makers have been involved in advanced R&D. In the future, all of Haier’s suppliers will participate in this process and full-range interaction and R&D are promising.
 
3. Incubation Investment: Company C incubated by an American university boasts top technology of solid refrigeration technology module and it’s still in the incubation and financing stage. By participating in C’s preliminary incubation, financing and technical industrialization, Haier has successfully incubated the world’s first noiseless solid refrigeration wine cabinet in the real sense.
 
4. Association Labs and Achievement Sharing: Haier has constructed technology R&D association labs in collaboration with companies such as D and L. Both sides bear the basic operation costs and are committed to the openness, innovation and application sharing of technology in all areas. The achievements of technology R&D belong to both sides and the values are shared after products are launched.
 
5. Profits for Supplier Partners: Resources with abilities of user interaction, module design, module test and module supply enjoy a priority of supply, that is, a supply quota of 70% to 100%.S’s participation in the R&D of Tianzun Air Conditioner is an example. It was involved in the R&D of front-end module and is capable of product supply, thus enjoying a module supply quota of 80% after a mass production of air conditioners.
 
In addition to the sharing modes mentioned above, Haier and its innovative partners also cooperate in other ways such as sharing of market volume value adjustment and co-incubation.

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