Lenovo Liu Chuanzhi talk about entrepreneurship have an ideal

As an important part of China (Wuxi) returnees start-up summit, "Lenovo's Star Business Lecture Hall" was opened in Wuxi on May 31. Liu Chuanzhi, chairman and president of Lenovo Holdings, gave a lecture to almost 900 returnees and entrepreneurs who introduced in the "530" program in Wuxi in the past four years. Liu Chuanzhi said that returnees should go back to their hometown to solve the most important conceptual issues. In particular, they think that everything should be consistent with their overseas environment after coming back. "The domestic environment and foreign environment may not be a good one, but for the returnees, only to adapt to the environment, more groping."

June 1 in an interview with reporters, Liu Chuanzhi stressed: "I am more inclined to come back overseas returnees when the first to be coyotes."

Liu Chuanzhi this language is not groundless. Lenovo's risks and opportunities on the path of development over the past 26 years have let him profoundly understand that enterprise managers must have the "coyote spirit", that is, study and solve problems according to the specific conditions of China's actual conditions and the living environment of Chinese enterprises.

"You can only write recipes if you study it according to your own situation and find out the law."

In 1984, 26 years ago, Liu Chuanzhi, a scientist and scientist of the Chinese Academy of Science, took the 200,000 yuan invested by the Chinese Academy of Sciences and founded Lenovo Group with 10 other colleagues. From only 2.7% of China's market share at that time to 20% of the Chinese market today and 9% of the global market. Pioneers of the same era are mostly ashes.

Among them, the most thrilling period than in the early reform and opening up planned economy to market economy transition, foreign computer giants pressured, Lenovo almost forced to the edge of the cliff. It is the "coyote" qualities let the association survived.

"We've been researching the industry, and to what extent has it been studied? I've been proud to study myself as someone who writes recipes." "

Liu Chuanzhi said: In the war, leaders must continue to develop a method based on the rapidly changing market, rather than follow the recipe to cook. If you only know that according to the recipe to cook, cookbook how to write how do you do, and when the environmental conditions change, it is necessary to an accident. "A good entrepreneur can only write recipes if he can only research according to his own situation and can find out the law."

Liu Chuanzhi cited an example of Lenovo's success in lowering the cost of computers. Components accounted for 84% of PC costs, of which the largest proportion of memory chips, but also the fastest price cuts. Liu Chuan Zhu aware that if you do not have a scientific supply chain system to achieve the shortest inventory time, at the same time, accurately predict price changes, accurate ordering, Lenovo can not raise gross margin.

As a result, Lenovo in every aspect of research, developed a set of small steps run local approach. Suddenly, the cost dropped. However, within a year, Lenovo cut prices through six times, cracking down on competitors and taking the lead in the competition.

"This method is very effective. We only took up 2.7% of the Chinese market at that time and hit 27.5% by 2001."

"Coyote Theory" is also also the end of 2008, after the reunification of Liu Chuanzhi save the association from the loss to win the battle also successfully verified.

At the time, Liu Chuanzhi, chairman of Lenovo after a big loss, put Yang Yuanqing on the CEO's position, the same, with a deep understanding of the industry, as well as previous experience in the market during the actual accumulated experience so that Liu Chuanzhi quickly adjust strategy, strike out emerging Market, so that Lenovo can quickly turnaround in just a few months to win.

"We want bicycles, they sell BMWs!"

Legend of the three failed cases of lenient touch, Liu Zhigang profound understanding of some returnees entrepreneurs do not study the national conditions, not specific issues of specific analysis of the practice, the final mistake to harm themselves.

Since its establishment in 2001, Legend Capital has invested more than 90 companies, of which returnees start-up accounted for one-fourth, less than one-third of the proportion.

"We failed to invest in several projects, are returned from overseas returnees team founded." Liu Chuanzhi told reporters, "Among the three projects, in addition to a chip business is a policy change, the other two The failure is due to the entrepreneurs themselves do not understand the local situation in China, but also full of confidence, do not want to be due to circumstances.

Wang Jianqing, chief investment consultant at Legend Capital, cited a case of failed returnees. Lenovo was founded in the early days of investment, had cast a company to do business management software. The technology is very leading, the entire team is from the United States back to start a business Ph.D., some people in multinational corporations to do the level of director. They brought the best American technology back to China and thought it would be helpful to Chinese enterprises.

"Where's the problem? The enterprise management software they are doing is too advanced, and most domestic enterprises think they simply can not use it. Later, when we visited our customers, the clients commented: 'We need bicycles, but they sell It's BMW! "

"It is precisely because of the customer do not know the use of the environment, leading to their wrong position." Wang Jianqing said: "Liu always said to do coyote, is to emphasize the concept of a market in China to start a business, we must first understand China The market and customer needs. "

"Later, the customer asked to change the software, they still refuse to change, said the customer level is not .In fact, to put it plainly, they did not understand the matter, there is no effort to study the situation in China, and then consider how effective with the enterprise Docking. "

"While each single contract is signed, each appears to be profitable, but because the needs of domestic customers are not standardized, every customer needs to constantly customize the changes on the customer's site. Long live in the customer there, a residence is six months, and finally put all the profits all eaten up, the final accounting down, that a single loss contract is very powerful.

"The management of the company has not been adjusted yet, and the start-up team has started to split again. After the company went wrong with each other and blamed each other for complaining about each other, the last company was gone."

"The advantage of returnees is that the technology is strong, but specifically how to manage the business, how to build the team with the same, how to develop strategies, most probably not in the line." Liu Chuanzhi analysis.

"Ideal, but not idealistic"

In China (Wuxi) returnees summit of innovation and entrepreneurship, Liu said that entrepreneurship should be ideal, but not idealistic. "Some returnees start-ups to do a certain degree of splitting a lot, the reason is that in the face of difficulties, some people go back, and some enterprises after the market split again, for businesses and investors are relatively large Blow ", Liu Chuanzhi said," In the beginning of the business, a few people should put their entrepreneurial pursuit of communication are clear. "

Liu Chuanzhi said that some returners returned to the team when they started their business with the same goal, but they still did not agree with each other. If there are any difficulties or come to the market, they will disagree.

"There are well done, no one refused to allow treatment, a business investment so little money, seeing the business to defeat, as well as listed after the interests of inconsistency, these are very realistic."

Hui Hui, founder of returnees entrepreneurs on behalf of CEO Zhang Hui said: returnees return home, the most afraid of water and soil water services, "aspire to death without first aid." So we must lay off the burden of returnees, bravely into the soil in China, as "coyote", with the wolf's spirit and will.