This is the specified and contracted ecosystem in support of particular customer facing micro enterprises. All relationships are customer<->supplier. Most of the customers in an EMC will be other micro enterprises.
YOUTUBE AhdjLXdxnFc Overview of Micro Community structure and operation.
See EMC Contract.
See Haier Workbench
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> The question I have to answer is how do ME's deal with competitors, governments and the physical ecology of place.
A Dynamic Network of Value Creation The EMC is the artifact that ensures **coherence** in the collaboration between Micro-Enterprises, focusing on quickly bringing new user scenarios to the market. Through a common goal and specific user needs, EMCs **create ecosystems** of Micro-Enterprises that increase the amount of **harmonized work between** otherwise loosely coupled entities. Furthermore, they are established to support rapid iteration and upgrading of user experiences, facilitating value-sharing among stakeholders. The EMC is an **open, light, and dynamic structure** that supports win-win situations and breaks down potential silos between Micro-Enterprises leaner and faster than an Industry Platform would do. Looking at the platform plays, the EMC intervenes in the domain of the standardization of transactions acting as a **transient contract** between several elements of the organization, especially Micro-Enterprises, and, sometimes, also Shared Service Platforms.
The EMC’s main goal is to become a **leading industry benchmark**, with a leading model, uniqueness, and differentiation.
To improve cooperation, EMCs are divided into Experience EMCs and Solution EMCs:
* Experience EMCs are oriented towards the customer. They form in the markets to reach user communities directly through a network of touchpoints. They try to understand and capture needs for enhanced user experience around scenarios. Any entrepreneur, ME, or platform interacting with the user can be part of an Experience EMC.
* Solution EMCs focus on mobilizing and organizing internal capabilities required by organizational peers. As an extension of the job of node MEs, solution-oriented EMCs care about implementing, creating, and iterating services such as R&D, Design, Manufacturing, Planning, etc., that experience-oriented EMCs will use to satisfy users' experience needs, thus making their work more efficient and effective.
# Bidding and joining an EMC In Haier, employees and Micro-Enterprise owners candidate themselves for opportunities based on a bidding process.
When an EMC or an ME needs to attract a specific talent or to collect and organize specific services, an entrepreneur (single or as a representative of an ME) provides a “bid” that **details how, with what tangible performance objectives, and what value redistribution mechanisms** she wants to “fulfill” the (essentially dynamic and outcome-oriented) job that is expected.
There is no top-down task assignment. It's always a relational dynamic that generates collaboration opportunities. Like what happens in a marketplace, employees can provide a solution for an emergent need through proactive interaction. Such a mechanism is as competitive as effective in stimulating proactiveness and entrepreneurship.
Once an EMC is started, any Micro-Enterprise or external company that feels it can add value to it can ‘bid’ by developing a **proposal** that: * Shows in detail how they propose to solve the problem * Lists the resources needed to achieve the goal * States the share of profits they would require. The EMC leader then reviews the bid, the winners are identified, and contracts are negotiated.
# (Smart) Contracts and their implications As a consequence, through EMC contracts, multiple Micro-Enterprises and individuals enter into agreements that clearly formulate: The overall EMC objective-**Leading Goal** The **role and goals of each node** The percentage of total **EMC profits to be distributed** to different nodes. As the value nodes bring to the network varies over time, EMC nodes periodically meet to discuss and sometimes **re-negotiate profit-sharing** to get the balance right. All contracts are based on Blockchain Technology, making everything **fully transparent** with **automated payments**. When a product created by the EMC is purchased, the proceeds are automatically disbursed amongst the nodes. Value Sharing Agreements are defined as ex-ante, and leading objectives need to be above the industry average. After the end of the contract, all parties evaluate each other, building an actual Operational Reputation System. Parties that do not fulfill the promise of performance may lose the opportunity to join EMCs in the future. A failure to fulfill such objectives affects all the players in the contract, thus generating a powerful case for **self-management and collective support**.
# EMC performance evaluations To nudge further development regarding the EMCs' effectiveness at generating distinctive long-term value, in 2020, Haier created a new activator, the Haier's RenDanHeYi Scorecard, to track and **evaluate how dynamic EMC contracts are performing** in terms of ecosystemic capabilities:
Together with the four selves of the EMC described above, ecosystem achievements are represented on the abscissa of the diagram above as a progression towards an increasing ability of the brand to cement a deep, long-lasting, scenario-centric relationship with communities of end-users through the following phases: * **High-end Brand** for an EMC that provides **leading-edge products** for its users and maintains a leading position among competing products (price wars, low user engagement). * **Scenario Brand** for an EMC able to constantly engage its users and provide them with a scenario of a curated **product portfolio** based on their unique needs, instead of selling a single product. * **Ecosystem Brand** for EMCs that have broken sectoral boundaries, **bringing together different industries** to create value for users jointly. With deeper user engagement, it has consistently met user needs, gained their trust, and turned them into **lifelong users**.