13 Questions to completely decrypt Chen Xudong's "Magical Workshop"

From October 2014 Lenovo announced the establishment of an internet-based platform for the new subsidiary, by Lenovo Group senior Vice president, China and Asia-Pacific emerging market President Chen Xudong as the CEO of the company. Then finalize the "Magic Workshop" as the name of the new company, like this name, for the new company, although the wave of public opinion, but its mode, operation methods, all the details with "mysterious" color.

At this Las Vegas CES, Lenovo with his entire department of new products, including the newly acquired Moto Family debut, which also contains some of the Magic factory new products, received a lot of praise. Zhidx.com-Chen Xudong, the head of the magical factory at the scene, has had a one-hour deep exchange to decrypt the newly established "start-up company".

Core points:

-Yang, please play, chat for 10 minutes after dinner, Chen Xudong decided to venture inside

-1-2 years, mobile is the most important business, the first product launched this October

-In the area of intelligent hardware, the most value routers

-Open the company equity, absorbing investment, team holding

-Target must be listed, three years to achieve 5 billion dollars

Following is an interview collation:

Intellectual stuff: When did the Magic Workshop start?

Xu Dong: In fact, I deeply involved in this project is relatively late, because I was responsible for China's business, but does not include mobile phones and related business. In fact, Lenovo layout has been brewing this project for a long time, the big question is who is the overall responsibility.

Intellectual stuff: When is the project determined by you?

Xu Dong: Last year (2014) Mid-Autumn Festival, Yuanqing invited me, Changcheng (ECS software research and development leader), Yiu Yingjia (Industrial Design Center in charge) played a ball, eat time to chat, want to take a team dedicated to do the internet business, I did not feel this matter and I have relations, I also encourage the regular journey to pick up. After dinner Yuanqing to find me a single chat, asked if I would like to answer, I did not hesitate to agree.

Intellectual things: That is the group choice of factors, or your own subjective will?

Xu Dong: I think both are very strong, is a two-way selection results. I am actively promoting the company's Internet transformation within the group, which I think is the main reason. My personal intention is very strong, then Lenovo's Internet transformation, I am responsible for the Chinese area is very active, including the establishment of digital marketing department.

Intellectual: Why is the intention so strong?

Xu Dong: I understand that the traditional enterprise to the Internet company transformation, there are four things.

A, continuous improvement of existing business, products. No business is able to do the head, yesterday afternoon to the stadium, see a massage chair, a lot of people queued experience, I asked the experience of the people, you think this massage chair how, he said, very comfortable, even the fingers toes can be pressed, very praise.

b, the use of Internet tools to improve business processes, so that the business more efficient.

C, the spirit of the Internet to change their own. This mainly has three aspects, first user first. But this is easier, and many companies are doing big things, often forgetting, and then responding quickly. The third is the fan economy. Like ThinkPad fans, Moto fans.

D, the most difficult is the fourth category, standing on the Internet mountain to see opportunities. I think of the traditional industry and the internet industry as two hills. The front three points, are standing in their own position to see, like the Tesla from the perspective of the car industry, see the opportunity is completely different.

So, you stand on the Internet mountain to see the industry, once you have the opportunity, you will think, but also do it yourself, is waiting for others to leather their own lives. So, for Lenovo, the Magic Factory is using a new business model to discover and seize new opportunities.

Intellectual things: Now working status, or on both sides?

Xu Dong: yes. April 1, the Magic Workshop is officially operational. At that time Yuanqing cared about, I went to do Magic Workshop, the Chinese area of business who to answer. Lenovo has a OHRP system that plans every year for organizations and people, including a job where each person needs to set up a business successor, picking from the entire company or industry. Over the years, according to my settings, the old boy (Dongfuyau) is this person, then my existing work is not a big problem. The second question is how long it takes to transition, when there are two options, one is a quick transition, I immediately cut into the new company, there is a long transition period, finally we chose the latter. The main consideration is the acquisition of IBM's x86 server business, just to pass the U.S. government's approval, integration work to be carried out immediately, if this thing to do well, the old boy needs to pay a lot of energy, if the same time to take the business in China, the challenge is too big, so I also for a period of time until the Magic Workshop officially operation.

Intellectual stuff: How does it feel to pull the team?

Xu Dong: In fact which business come over, adjust which team come over, before the group have some consideration. The operation process is not so simple, the need to set the HR principles, which are quite a lot willing to come over, see is an opportunity, others think it is risk. Finally I set the principle is "do not want to come over." At the same time, we are also in a large area of recruitment.

Intellectual stuff: The management team of the Magic Workshop, and the business structure?

Xu Dong: Magic Workshop is divided into two pieces, a piece is, mobile phone, and mobile internet-related business, led by Changcheng. IoT business, including routers, NBD, smart home and other products, from the white desire to stand responsible. In addition, there is a piece of e-commerce.

In the next year or two, mobile and mobile internet-related business will be our core business, divided into hardware, software services. Hardware part, the new brand of mobile phone has not yet been identified, the software part, currently has ROM, Lok store, le Security, music synergy, which le store currently download 27 million daily.

Intellectual: When will mobile products be launched? Positioning？

Xu Dong: Tentatively scheduled to be launched this October. Detailed positioning has not come out, the current idea is, flagship, performance must be superb. Moto acquisition, Lenovo has a number of mobile phone brands, we belong to the new born, yesterday Yuanqing also answered this question, which I think also conforms to the Internet practices, internal, external, fair competition.

Intellectual: What do you think of the hardware industry? What are you going to do?

Xu Dong: I think, the overall intelligent hardware industry is very hot, but really can support a business model of the product has not appeared, now we are still in the head of the exploration of trial and error stage. The health sector is tempting, but we have no advantage. We consider the problem, or with their own ability to start, so we will be smart home for the main direction to explore.

But the industry is too big too loose, not all things do their own, our idea is to divide the product into three categories, one is their own depth intervention, the other is not involved in the middle part, is the use of Lenovo's advantage resources, to support, this is what NBD doing. The current depth of intervention products are our routers.

Intellectual things: Why the choice of routers?

Xu Dong: The portal nature of the router has become a consensus, at present it is also the most likely to become Intelligent home control center. But I think the router market is still in a chaotic stage, and no one dares to say that it has eminence. The main problem is that routers must first meet the needs of users on the Internet, which has the threshold. We don't choose to do it ourselves, we invest in listening technology. At the moment, I dare say our products are leading in non-traditional routing vendors. But the disadvantage in my late, many people do not know us.

Intellectual things: The company's equity considerations?

Xu Dong: For the Magic factory ownership structure, we are open attitude, consider holding a quartet, Lenovo Group, strategic investors, Lenovo executives, team. Initially by Lenovo Group Holdings, the future we hope to be fully market-based operation, holding is not a must option, this time our thinking is completely broken past.

Intellectual: What is the company's expectations, goals?

Xu Dong: The ultimate goal is certainly to overseas listing, if from the angle of capital valuation set, we hope that three years to achieve 5 billion dollars.

Intellectual things: The personal experience of entrepreneurship? How is it different from previous work in Lenovo?

Xu Dong: To me, the difference is not particularly big, I have been the company as their own business. The new company will be a lot of things that you don't need to worry about, such as setting up a company, setting up a brand, and so on.