The six logic of Lenovo Mobile Dafanshenzhang

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"Often, a person's heart is ripe between these simple choices. Problem, it will evaporate after the trade-offs. As long as we learn to overcome inertia. "-The trail under the cliff"

Since 2015, 6 years of Chen Xudong Lenovo Mobile business, is trying to open the next way for Lenovo mobile phone. Chen Xudong, who joined Lenovo since 1993, has spent 5 years as president in Lenovo's China region, while Lenovo's share of the PC market in China has increased from 26% to 36% and its profits doubled.

However, Lenovo's mobile phone business, although already ranked in the forefront of the world, but the front is dangerous. Chen Xudong on the one hand need to overcome the inertia of the PC business, on the other hand, the smart phone "chaos has become normal" situation in a day.

Market logic: Saturation and slowdown

From 2010 to 2014, Lenovo's mobile business was able to become the third strongest in the world in four years, largely because of the "Dongfeng" in the rise of the global smartphone market, where it borrowed the "potential energy" of a powerful operator channel and the rise of the regional smart phone market.

However, the market is changing rapidly. According to IDC in December 2015, the growth in global smartphone shipments in 2015 fell to single digits, stemming from the overall weakness of the smartphone market in Japan and the Asia-Pacific region, Latin America and Western Europe. To be sure, global smartphone shipments grew by more than 60% in 2011, down to 9.8% by 2015.

According to IDC's analysis of the global and China smartphone market, China's smartphone market has been in full range from the high-speed growth period into the "product replacement" period, the market demand has slowed sharply. At the same time, the Middle East and Africa markets are entering a high-growth phase, with growth of nearly 50% in 2015, surpassing the popular Indian and Indonesian markets.

IDC advises handset makers to capture emerging market demand for first-time purchases of low-priced smartphones and the need for rapid replacement, while responding aggressively to the threat of high-end manufacturers such as Apple into the refurbished market. For Apple and other high-end handset manufacturers, because the market demand saturation into the "product replacement" period, switching to the refurbished machine market is also reasonable.

At home, operators ' custom-made mobile phone subsidies have shrunk sharply, and firms that have relied heavily on carrier channels have collapsed. New players such as Le Vision, based on the low-cost strategy of the Internet model, killed the smartphone market in May 2015, creating a huge market shock. And if the iphone and other high-end mobile phones in 2016 into the refurbished machine or two mobile phone market, to low-cost high-performance again to lift the storm, the 2016 China's smart phone market full shuffle has been inevitable.

For domestic manufacturers of low-cost strategy, Chen Xudong said short-term strategy or to avoid its edge, hard-to-do no utility, or gradually shifted to the high-end strategy.

"I have said a word before, all in pursuit of market share guidance is not possible, because inevitably will go to a vicious circle." "Low-cost competition is all about attrition, and end users are looking for a comprehensive experience of quality and price. In this regard, Lenovo's acquisition of patents from Motorola can be shared with other Lenovo devices, with very strong innovative ability and engineering ability to become the future of Lenovo Mobile's killer. "After Steve Jobs, the iphone has not been much innovation, and once new options are available, consumers will make new choices. ”

If the 2016 low-priced Apple two mobile phone army foe, how will the market structure change? In that case, Chen Xudong said, if that day really comes, it must be done in a coalition way. In fact, in the television industry has happened, 2015 the entire television industry has two companies to make money, the rest of the loss of all, the Cooperation alliance "Winter" has become the norm.

Decision logic: Game with TIME

In a disorderly image from the health, the situation is complex, the growth slowed down the smart phone market "mountain climbing", the decision-making mechanism of the enterprise decided that the enterprise eventually reached the foot of the mountain, hillside or peak. Before understanding the next logic of Lenovo's mobile phone, it is necessary to understand Chen Xudong's personal decision-making thinking.

The first is time thinking. As a leader and manager, Chen Xudong says, the most important decisions are not what to do, but what to do. The resources of any enterprise are limited, so it is impossible to devote limited enterprise resources to all things.

For businesses and individuals, the biggest resource is time. Recalling the history of each person's development, is how to use their own time history. Chen Xudong said that he often educate his daughter, a person every day so much time, how to have a plan, efficient use of time, long-term accumulation will result in two people very different results. Therefore, everyone must have their own time management methods.

Chen Xudong said that once you feel the job is very busy, too busy to bear the time, I know there must be a problem. At this time, it is important to think about what things should not be done on their own, or to change the method, which is Chen Xudong so many years. "As long as you are too busy, there must be a problem." Think about where there is a problem, and then to improve. Whether it is to improve management or to authorize, etc., always make adjustments. ”

The second is the decentralization of thinking. In order to adjust his time management, Chen Xudong said he particularly dares to delegate, but at the same time will be very clear to give the idea, "my main method These years is to decentralize." Decentralization and give ideas, these two must have at the same time, or else chaos. "No matter which part of the business, Chen Xudong will be in the shortest possible time to figure out the idea, and then give the team in a clear direction, while bold decentralization."

Chen Xudong has been in the magical factory for a short period of 8 months, in the magical factory Chen Xudong only to do a mobile phone products, you can deeply participate in the product design of every detail. and the Magic Workshop does not have a layer of reporting organizational structure, research and development team can directly connect users, independent decision-making, the market response is very fast.

So can Lenovo's mobile business "Magic Workshop" of it? Based on the experience of the Magic Workshop, Chen Xudong has changed the way Lenovo phones are managed, using the Super Product Manager system. That allows a team to focus on one or two products, giving them greater autonomy to develop and operate, and even to share the future profits of the product after the market. "It became a small company in a big company, like a little magic workshop. ”

Business logic: Play the system value

How to make the system play a value, this is Lenovo phone and magic factory the biggest difference. Since Chen Xudong took over Lenovo mobile phones, the focus on the three core value chain of rolling development, is the product, supply chain and sales. These three strategies are interconnected to become a system in which the business can be truly well-matched.

In terms of product market strategy, Lenovo Mobile will take growth from emerging markets, and then break through the mature high-end market in North America, from these two main directions to ensure the overall size and profitability of Lenovo mobile phones. Capturing emerging market space means penetrating the phone through the Lenovo PC brand that has been built locally, Chen Xudong. Lenovo PC has a national share of more than 20% in most emerging markets, so it does not take too long to shape the handset brand. Lenovo, for example, has a high market share in Russia, and Lenovo has achieved 18% of its market in the third quarter of 2015. Both central and Middle East are vibe growth markets, and vibe products have also landed in Brazil.

In the high-end products, from this generation of Moto products, Lenovo will launch an offensive in the United States. Now the biggest profit in the smartphone market is the US market, which accounts for the profits of global more than half, and is mainly concentrated in high-end markets. Lenovo hopes to reach a 10% per cent share of the US high-end market in two years ' 2018, which could account for 10% or more of its profits.

If we do not occupy the U.S. market, in the long run in the mobile phone industry has lost its foothold. At present Moto in Latin America market basically ranked second, after Samsung, the basis is very stable. With the launch of Moto innovative products, Lenovo will gradually increase the global range of Moto brand promotion.

Lenovo Mobile's Chinese business needs to be re-planned and started, the first half of 2016 years mainly to Le Lemon, the second half after the Moto innovation products come out after the offensive strategy. Chen Xudong said, le Lemon X3 have three gears, respectively, is 2999, 2499, 1899, the low-end is the K series from 600 to thousands of yuan, now also a 1200 yuan to 1500 yuan between the product, there are so five products enough.

In the supply chain, Lenovo Mobile has done a lot of optimization work. Many foreign companies attach great importance to product development and innovation, but do not pay much attention to the optimization of the supply chain or more away from the supply chain, Moto Mobile phone belongs to this situation. As far as Lenovo is concerned, the supply chain is a big advantage. If the supply chain advantage is embedded in the Moto product line, it is a great opportunity. Lenovo Mobile also has a clear strategic deployment in this area, through cooperation with suppliers, the product forecast cycle from the previous three or four months to two months, so that it can be easier to follow the market run.

In terms of sales, the domestic mobile phone market is re-return to the offline channel, the offline channel by mobile phone manufacturers attach great importance to millet, Meizu, le Vision has to develop offline channels. The offline channel for Lenovo as early as the PC era has been completed layout, Lenovo and partners in the domestic open more than 40,000 retail stores, in the Asia-Pacific region opened more than 1000 brand retail stores, is through local partners quickly into central Europe, the Middle East, Brazil and other locations of the retail system, The company also recently opened the world's first Moto offline physical store in Chicago, USA.

Development logic: Balance of efficiency and innovation

Mobile phone industry competition is very fierce, Lenovo mobile phone in two aspects of the strong push product development: On the one hand is efficiency, that is, the speed of pushing new products, on the other hand, innovation capabilities, technological innovation and the accumulation of mobile phone applications, the accumulation of designs, etc., all need to advance layout. In particular, the design needs to have two or three years of layout, from product positioning and product orientation to match, to lead the direction of the product.

Chen Xudong said that the Lenovo Mobile product layout is basically clear, high-end and low-end products is a year-to-date, mid-tier products are two times a year update. This rhythm is already the limit, and then quickly will have to open a new product every quarter, but when the new season has not sold hot, the next season's new products come up again. From the launch of new products to the promotion of all channels, three months is certainly not enough time, forcing a quarter of a push, it will cause great waste.

In terms of technology accumulation, Lenovo Mobile has been actively accumulating and storing technology. Lenovo Mobile has done in-depth research on the camera, now Lenovo Mobile camera from the professional indicators have reached the top level. Lenovo Mobile's earliest antenna design is still maintaining the technology leader, the accumulation of voice technology can be very good in the call to reduce noise and so on. It can be said that without prior technical accumulation, there is no Lenovo phone behind the application.

In product direction and product positioning, Lenovo Mobile's top-end products are currently in North America customer base as the research object. Because if the North American market is able to obtain customer acceptance, generally in the world can have good performance, low-end products in China and India as the target market. For the Moto X/g series, the North American market is the largest market, and research into the North American market is even more important.

Lenovo Mobile's research and Development department specializes in user research organizations, regularly out of user research reports. For the future products, will also do the user's mapping test. On a regular basis, Lenovo Mobile's research and development staff after having the idea, began to communicate with customers, and constantly adjust their thinking. This is very similar to the Internet model, but because of business secrets and not through the Internet to communicate with all people, but choose a part of the customer to do confidential * * *.

Chen Xudong says, like PC, the future of mobile phones will also be globalized. If a product is only to meet the needs of a single market, product design is relatively simple and clear. If we want to maximize product sales around the world, we need to consider the balance between innovation and efficiency, which is reflected in the development of Lenovo mobile phones.

Innovation Logic: Engineering first

According to the China Mobile Intelligent Terminal Technology innovation and Industry Alliance issued the "2015 domestic mobile phone Brand Development Report", the domestic handset manufacturers have in and out, the overall number of stable, the overall number of mobile phone manufacturers maintained at about 290, smart phone manufacturers maintained in 220 to 230 around.

Chen Xudong believes that, from the global market, the mobile phone market is basically eight to 10 times times the capacity of the PC, mobile phone brands are more likely to survive than the PC. But he also pointed out that the survival of small brands is a big challenge, to make disruptive innovation is not easy, not only to have innovative ideas, but also to be able to achieve engineering.

There have been many innovative ideas in the Magic Workshop, but the ability to engineer is a huge challenge. For the average consumer, click on the screen will be completely reactive, if one did not respond to the product is considered unreliable. Why is IoT innovation so difficult now? Because there are still a lot of technical issues such as Wi-Fi connectivity, this makes the IoT impossible to become a real product. The real product must have the very strong reliability, the function health to press down must have the corresponding response.

"Even if there is a 1 gap between engineered products and innovation, users are not acceptable. This is especially true when it comes to magical workshops, where many ideas come to life and there are countless obstacles in the middle. But the advantage of a big business is that it has a proven engineering capability and technical team that can turn ideas into very reliable products. ”

Some things seem simple but engineering is hard to achieve. The anti-broken screen mobile Moto X Force released at the end of December 2015 is not a simple screen shatter, because the camera and corner of the phone can easily be broken, so concrete how to strengthen, it takes a lot of engineering effort. The head of the Chicago Moto Lab's hard research and development has said that many handset makers are not actually making mobile phones, they are OEM suppliers.

Chen Xudong said that the real study of product details, should be in their own laboratory. In the past, many mobile phone manufacturers are designing products that do not actually produce products, and making their own products is an important process for innovation. Without this process, innovation can easily be duplicated, especially when OEM products are easily replicated by other manufacturers. Chen Xudong said that Lenovo Mobile products have begun production in their own Wuhan plant.

Industry logic: The future of smartphones

The previous phone is software ecology, now Lenovo talk about hardware ecology. Lenovo captures the hardware innovation point, the most fundamental or based on user needs. The Chinese handset enterprise swarming in the software innovation aspect, scanned many user's demand, causes the innovation point to be fewer and less. Lenovo Mobile's view is that hardware innovation has stalled in the past few years, and there are opportunities for future hardware innovation. Smartphones are largely disruptive of electronic devices, and the process of subversion is just the beginning.

Chen Xudong that the future of mobile phones in two steps, the first is to replace all other electronic devices, including the replacement of computers. Chen Xudong said he did not think the phone hardware performance than the computer, the next 5-10 years the phone will be integrated all electronic devices. Mobile phone to the car is a car system, to the home and office is the PC, on the road into a flat, so a bad mobile phone is equivalent to the early layout of the future market, because all the user information will be stored in a small mobile phone.

Chen Xudong also has an interesting observation about smartphones replacing computers. For consumers after 00, they may never have been exposed to Windows, and they were exposed to the Android system as soon as they were born. Will they need a Windows PC? Android PC may be more needed. Consumer market trends in the future are determined by consumers, consumer market changes will affect the trend of commercial markets, which is the reason for the evolution of the entire industry.

Secondly, with the breakthrough of technology, the chip is getting smaller, the power consumption is getting lower, the battery is thinner and so on, especially the smartphone miniaturization to be able to solve the energy problem with natural light, like the electronic watch uses the solar energy, by then the comprehensive subversive breakthrough. "In the future, mobile phones will certainly be large-scale miniaturization, and by that time natural interaction will make a major breakthrough." "There are many imperfections in natural interaction today, but the future will certainly work. This is a process of accumulation, perhaps a long time, but miniaturization must be the inevitable trend.

For wearable devices, Chen Xudong said it would still focus on the watch, and the big category would have to wait for the new product to come in. Although Chen Xudong can not reveal too much now, but he said the chances of the future is very big, mobile phone should penetrate into various areas of life, and there are many areas are not infiltrated, automotive electronics is a typical example.

Lenovo Mobile is now accumulating a lot of hardware innovation points, accumulated to a certain extent will be embedded in the mobile phone products. Why can't we see a big innovation point at the moment? Because small innovations are being nurtured. Now a lot of companies are studying scattered technology innovation points, the future point of time these technologies will be combined to form an explosive development.

Chen Xudong believes that the product must have real business value innovation can be sustainable, the direction of innovation to target those who are willing to pay the direction of consumers. "Innovation is certainly not only a wave of products, but an engine, behind the flow of new products, new technologies, new applications follow up." Lenovo Mobile Innovation is not a product innovation, but a series of innovation, so this is the most expected one thing. ”

Chen Xudong has faced even greater challenges and pressures since it was connected to Lenovo's mobile phone business, which is the core business of Lenovo. No matter what job to do, Chen Xudong itself is like to give themselves a great pressure of character. So how to face the pressure, Chen Xudong said his main use of two methods: one is to have a clear idea, do things to have the discipline, the second is the mentality is better, business is not sure to win, but to minimize risk, prepare. When encountering setbacks, it is a mature mentality to be able to face it correctly.

Finally, it is to see the target, and then resolutely go forward. (Wen/Ningchuang, the first titanium media in this article)

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The six logic of Lenovo Mobile Dafanshenzhang