Lenovo Architecture after the merger of Motorola, where to go?

In the first week of November, Lenovo chairman and CEO Yang also opened TW Itter, LinkedIn, Weibo, as if to herald Lenovo will open all channels of sound, have something to say. And almost at the same time, Yang in person in Wuhan Lenovo factory to inspire morale, this is the Lenovo Group completed Motorola mobile phone business acquisition, the CEO back to the domestic "first show." So far, Lenovo's 1-year-long adjustment, big mergers and acquisitions basically settled. The next question is, where is Yang going to lead this international enterprise based in China?

Action 1 Architecture two split four "PC" strategy go to the end of the road

In January this year, Lenovo's "Two pieces of four" were split into personal computers (PC notebooks), mobile devices (mobile + Tablet PCs), corporate services and cloud services in the past by Lenovo and think two brands. Lenovo, in its 2014 earnings account, explained the restructuring, saying: "This is to ensure that the core business profits growth, while promoting new business and completion of mergers and acquisitions."

"Last year we shared the ' PC ' strategy, and as two acquisitions were completed, we were ready for the layout," he said. "Three years ago, PC accounted for 96% of Lenovo's total turnover, and the other 2014 Q 2 had reached 15% per cent," Yang said in an interview. "We have always believed that PCs are not to be replaced by tablets, Lenovo PC growth of 6.4% per cent in the context of a 2.3% decline in PC sales worldwide," Yang's transformation of Lenovo is also starting from the advantages of the PC, typical for the multimode notebook y O G family. "Tablets only replace the function of netbooks, and will eventually be replaced by large screen phones and multimode notebooks." He said. Yoga sales remain robust as global tablet sales have slipped, giving Lenovo the first to replace Apple as a broad pc (PC + laptop + tablet) for the first time in 14% of its market share.

Action 2 mobile phone and server business replication PC experience

In the smartphone market, Lenovo has a strong performance in overseas emerging markets this year: sales in three markets in India/Southeast Asia, Latin America, Russia and other emerging regions rose 120%, 150% and 400% respectively. On the Enterprise server market, Mr. Chen Xudong, senior vice president of Lenovo Group and President of China and Asia Pacific Emerging Markets, said: "We have more than 50% desktops and notebooks in our big customers." "Of course, mergers and acquisitions are certainly the best way to develop markets more quickly." This September, Lenovo completed the 2.9 billion dollar merger Motorola business. Lenovo Group executive vice president, Mobile Business Group President Liu June told reporters: "The acquisition of Motorola's main focus on its patent pool, can save us 25% of royalties." "And for the $2.1 billion acquisition of IBM x86 servers completed in October, Chen Xudong explained:" IBM added to the high-end market for Lenovo servers. ”

"PC, mobile and corporate market become Lenovo's ' troika ', the latter will become Lenovo's new growth engine and profit pool." "Enterprise-class services are expected to reach $5 billion trillion in a year, profits are better than the PC market, and smartphones have about 5000 shipments in the next two quarters," said Yang. ”

Action 3 Set up a subsidiary the Internet needs "all clear 0"

Lenovo's 2014.5-year earnings have come from hardware revenues, with cloud services outside the troika falling back, earning 586 million in the first half of 2014, down 3% per cent year-on-year, and accounting for 2.8% of total revenue.

In the earnings release, Yang said Lenovo would set up a new internet company next April 1 to be responsible for online product sales, Chen Xudong by the current president of China and emerging markets. In this respect, Chen Xudong said: "All clear zero, start arduous work." ”

In the past, the "mobile interconnection and Smart home" column changed to "Mobile devices", and smart home products will be divided into the newly established Internet companies. "Now everyone is pursuing the mobile internet, but the IoT is a big trend in the future." Chen Xudong said that at present, the company has three products put into production, respectively, intelligent routers, air purifiers and so on. "The former we share a core technology company, while the latter we mainly provide cloud services technology." Xu Hao, an international analyst at Analysys, said: "Lenovo has a slower layout in cloud services, but it has the core technology of hardware production, which is the most appropriate way to get into the internet of things." ”

Chen Xudong said that the subsidiary's form gained greater autonomy and could be more flexible to hold fighter jets, but did not disengage from the group. Lenovo's supply chain and manufacturing system, Lok store users are still the foundation of the new company. "We will work with entrepreneurs in an open manner, not necessarily in a holding position." Many entrepreneurs have ideas, but do not know how to deal with suppliers, quality control, and Lenovo can help its products. "In this new company, software and services will make up the bulk of the revenue," Chen Xudong said.

Focus

Personnel Change Bureau

With the adjustment of the structure and the acquisition and digestion of the new company, Lenovo inevitably carried out the big diversion of the executive team. Someone is being reassigned, someone is leaving, and someone is airborne. As with business module adjustment, Lenovo Group's "Change of people" is also quite exciting this year.

The birth of "four kings"

January 28 This year, Lenovo announced that since April 1, 2014, Lenovo Group will set up four new, relatively independent business groups, namely, the PC business group, mobile Business Group, Enterprise class business group, cloud services business group. That is to say, the "architecture is split four" mentioned in the adjustment section of the Business module.

With this change, PC business groups (including the Lenovo Brand and think Brand) are headed by Lanci, the current leader of the European Middle East and Africa region (EM EA) (Gianfrancolanci), mobile business group (smartphones, tablets, smart TVs) By the original leader of Lenovo Business Group (consumer and mobile products) Liu June is responsible for, enterprise-class business groups (including servers and storage) by the incumbent leader Americas G Errysm ith. It is noteworthy that Lenovo announced the acquisition of the IB M server business after the completion of the required approval will be merged into the group.

Fourth business group is the cloud Services business group (including Android and W indows Software) by the current Lenovo Group senior Vice president, Chief Technical Officer He Zhiqiang to take responsibility.

A big diversion of senior management

In the setting up of the four business modules of Lenovo "Four Kings", the subdivision of the business module in the executive seats are also adjusted:

Just before the new architecture is formally implemented, Liu June issued internal mail, announced Lenovo original M IDH group organizational structure adjustment, and renamed as Mobile Business Group (M BG), at the same time, Bao Company (LCFC, Lenovo's company) CEO Zhang Hui will replace Feng Jue, as M BG China Mobile phone business director, and the original business module in charge, so that Lenovo mobile phone sales back to the domestic first camp Feng Jue, then joined the Lenovo Cloud services business group. In other words, from Liu June under the He Zhiqiang under the command.

At the same time, Lenovo Group vice president and M BG Supply chain Director Guan successor Zhang Hui, Ren Bao Company C E O, Shenyanan supply chain manager Replacement Guan, as the director of supply chain M B G. In M b G Internal, Lenovo Group vice President and M B GM obileb u head Chen Wenhui left, the original vice president and M B G strategy and operations leader Shao successor, the position by Lenovo Group Vice President and T Hinkpad & T Hinkclient product group operations leader Gutao successor.

If Lenovo's PC business is very stable, cloud services business is small, that Liu June's M BG is undoubtedly the most important part of the current group. In addition to pull to Zhang Hui in M BG China Mobile phone business, Liu June and from Huawei pulled from the "godfather of mobile phone industry," said the original Nokia Old World Business Director Giles (coling Iles), responsible for overseas mobile phone business, to Liu June report.

Internal running-in and business innovation at the same time

So far, together with the previous mentioned Chen Xudong responsible for internet business, Lenovo Group's senior management team drop also counted. Although looks are the old faces, but the new business module, the new executive establishment, especially several big business module management personnel between the big diversion, still quite some "new atmosphere" feeling. In addition to the business module of the running-in, the personnel Running-in also became Lenovo next important work.

"My current work will not leave office until after April 1 next year, this period of time I would be a little hard, China's business I tube, Asia-Pacific Emerging Markets I also tube." Chen Xudong told reporters that he would go to India next week for a business trip, the group arranged my business I would continue to finish, and after 12 o'clock (meaning after midnight every day) to do my new company's work.

In all executive job transfer, Chen Xudong's situation is more special, his work task is heavier, running-in period is also longer. In fact, after the first half of the transfer of senior executives, the industry also spread Feng video network to do mobile phone news, but its personal and Lenovo officials did not respond.