# RenDanHeYi 3.0 – Ecosystem Micro-Communities In 2019, aiming to solve the tensions caused by the rise of the IoT, Haier launched its latest organisational innovation, Ecosystem Micro-Communities, or simply EMCs. This essentially kickstarted the third evolution of the RenDanHeYi model. EMCs can be seen as **temporal alliances** of micro-enterprises and external partners that must work closely together to deliver smart products and services to its users.
> Very much like the very successful Emelia Romanja industrial coops of Northern Italy.
A **Dedicated EMC Contract** is signed to align all the members of one EMC, which outlines the goals and responsibilities for every member, the deadlines for work, and profit-sharing agreements. When the EMC makes a profit, all its members share in the results. Conversely, when the EMC struggles, no one benefits.
Haier **launched a handful of EMCs in early 2019**. Within two years, the number had organically grown to more than 400. However, this also meant a rapid rise in transaction costs to run all the EMCs successfully. In fact, when EMCs were first established, the **collaboration** within and between EMCs occurred mainly during offline meetings. EMC **contracts** were primarily signed on paper.