Where Are The Three Trends Of Lenovo'S Change?

On April 13, Lenovo Group's pledge meeting for fiscal year 2021 / 22 was held online. This is also the "cloud pledge" conference held by Lenovo again after last year.

In the opening speech of the conference, Yang Yuanqing, chairman and CEO of Lenovo Group, summarized Lenovo's performance in the previous fiscal year and proposed business objectives for the new financial year. He pointed out that Lenovo's overall performance is expected to reach a new milestone in the whole fiscal year after the "market price" of low opening and high going in the past year.

Meanwhile, Lenovo's new organizational structure, which was officially announced in February this year, also took effect this month. After the organizational structure adjustment, Lenovo's core business is composed of IDG intelligent equipment business group focusing on Intelligent Internet of things, ISG infrastructure solution business group focusing on Intelligent Infrastructure (renamed from DCG, data center business group), and SSG solution service business group focusing on industry intelligence and services.

Lenovo shares closed 1.11% higher at HK $10.06 on the 13th, after rising 2.91% to HK $10.24. On March 30 this year, Lenovo Group's share price rose to HK $11.60, a new high since June 2015.

Three trends

In the first three quarters of fiscal year 2020 / 21, Lenovo delivered better than expected performance and achieved comprehensive growth of all businesses. According to the latest quarterly financial report released on February 3, Lenovo Group's total turnover increased by 12% year-on-year, and its pre tax profit increased by 48%.

In terms of personal computer and intelligent equipment business, Lenovo's turnover and profit both reached a record high. In the third quarter, the sales of personal computers and tablet computers also reached a new high, becoming the undisputed global champion; the turnover of mobile business in the third quarter achieved double-digit growth year-on-year; the data center business performed better than the market for four consecutive quarters; the cloud network integration business division achieved breakthroughs in 5g cloud based small base station, core network, Internet of vehicles and other 5g network infrastructure fields Based on the cloud network integration technology of the fist products.

As the core competitiveness business sector to be built in the future, Lenovo's service-oriented transformation has made significant progress. In the first three quarters, the turnover of services, software and solutions business increased by nearly 38% year on year, accounting for more than 8% of the total turnover of the company.

Lenovo venture capital has entered the period of return on investment, with an accumulated investment income of more than 500 million US dollars in the past five years. Seven invested enterprises have been successfully listed, and more than 50 enterprises have achieved business collaboration with Lenovo.

Looking into the future, Yang Yuanqing summed up three major trends in the science and technology industry. The first is the upgrading of information consumption, that is, under the "new normal" of remote work, online learning and home entertainment, people's demand for intelligent devices is more intensive, and these terminals also need to become more intelligent and efficient.

The second is the upgrading of information infrastructure, that is to create a set of integrated infrastructure services integrating design, construction, operation and maintenance with application and service orientation.

The third is to upgrade the application from digital to intelligent. It needs a complete technical architecture of "end edge cloud network intelligence", which can form intelligent solutions through powerful computing power, and serve the intelligent transformation of various industries and departments under the new demand, that is, to enable the transformation and upgrading of the real economy with "new it".

These are also the starting points of Lenovo's "3S strategy" in recent years. In the past year, Lenovo has developed and produced the world's first 5g PC. As a leader in the innovation of intelligent infrastructure, Lenovo has independently developed the warm water cooling technology, and the energy reuse efficiency of ere ranks first in the industry. It also pioneered an edge computing platform with hybrid lightweight virtualization engine and edge cloud collaboration technology, and worked with ecological partners to create vehicle road collaborative solutions.

In terms of industry intelligence, Lenovo has created intelligent production scheduling solutions to enable the intelligent transformation of manufacturing industry. It has also built a smart education platform and services, integrating advanced OCR, 5g, AR and holographic projection technologies to enable the education industry.

"Lenovo's long-term accumulation of 5g, big data, industrial Internet, artificial intelligence and other technologies, the computing power architecture and service capability of the" end-to-end cloud network "will have a bright future in the context of the new infrastructure." Yang Yuanqing said.

Architecture change

In order to grasp the three major trends of the "new it" era, Yang Yuanqing announced that Lenovo's new organizational structure has officially come into effect. In the future, Lenovo's core business is composed of intelligent equipment business group (IDG), infrastructure solutions business group (ISG) and newly established solution service business group (SSG), which undertake the intelligent transformation 3S strategy respectively.

At the same time, in order to further promote the collaboration and cooperation between different business departments, Lenovo will integrate the original regional system into two new sales organizations: China region and international sales organization.

In fact, there are clues to this structural adjustment. As early as early as February this year, Lenovo Group Q3 financial quarter report issued, it predicted this change. In an interview with media such as the 21st century economic report at the financial report presentation meeting, Yang Yuanqing pointed out that the reason for the formation of the structure of three business groups and two sales areas is to realize the internal coordination of Lenovo when facing customers.

"For example, in terms of infrastructure, many customers need corresponding solutions from consulting to construction and operation, from front-end, desktop to terminal." Yang Yuanqing pointed out that, therefore, one direction of the organizational structure adjustment is "one Lenovo", that is, "one Lenovo": Lenovo Group will unify the interface and interface with customers in the future, and the back-end will have all-round support from sales experts and technical experts of various businesses.

In addition, the formation of China regional and global sales organizations will differentiate sales methods and sales channels according to customer categories in the future.

For large enterprise customers, Lenovo will conduct direct sales to form a multi person service team; for small and medium-sized enterprises, Lenovo will sell more through agents and e-commerce; for consumer customers, Lenovo will adopt retail and e-commerce channels. "In this way, we can establish closer cooperation with retail channels, agents and every large enterprise customer, and the close relationship can open up more business channels." Yang Yuanqing pointed out.

Under such a strategic framework, the "small goals" of Lenovo Group's business lines in the new fiscal year are also clear.

Luca Rossi, senior vice president of Lenovo Group and President of IDG, said that in the new fiscal year, Lenovo will continue to maintain the top position of personal computers and strive to be the first in every national market; in the field of additional services, Lenovo aims to surpass its old rivals HP and Dell in the new fiscal year.

Kirk SKAUGEN, executive vice president of Lenovo Group and President of ISG, said that in the new fiscal year, ISG will focus on eight areas, including sustained development of truscale AAS, expansion of business territory in China, enhancement of independent R & D capability, optimization of supply chain and procurement process, striving to achieve a revenue of 7 billion US dollars and a 1% increase in gross profit rate.

Ken Wong, senior vice president of Lenovo Group and President of SSG, said that the market potential of services and solutions is huge. SSG, Lenovo's youngest business team, aims to achieve 30% growth in the new fiscal year.

He Zhiqiang, senior vice president of Lenovo Group and President of Lenovo venture capital group, said that Lenovo venture capital will invest and incubate high growth and high potential industrial opportunities in the future for a long time, and actively build Lenovo ecosystem in the era of data intelligence, with the goal of accumulating investment income of more than 300 million US dollars in the next three years.

Liu Jun, executive vice president of Lenovo Group and President of China, pointed out that Lenovo China's goal this year is to exceed 42% of the PC market share, 80% of the annual turnover of intelligent products, 15% of the turnover of intelligent infrastructure and 36% of the annual growth of the turnover of intelligent services.