Lenovo's internal speech: expect Lenovo revenue to break hundreds of billions of dollars

Yang's internal speech: expect Lenovo revenue to break hundreds of billions of dollars Lenovo CEO Yang Yang today to the Chinese district executives open internal communication will analyze the challenges facing China and future development strategy. Yang said Lenovo hopes to use the newly hatched business to achieve its revenue target of $100 billion trillion. In the past, Lenovo has been an important contributor to profits and revenue, but has experienced growth bottlenecks in the last two years. In the words of Yang, the Chinese business is indeed encountering a hurdle. At today's China executives ' meeting, he wants to discuss how growth can be achieved in the face of big challenges facing China and the outside world. Yang hopes that China will be able to do a good job of incubating and optimizing business models in the future. Yang has high hopes for Lenovo's new incubation business, saying: "By incubating new business, we should be able to go another city in the next few years, rather than stagnate." Yang believes that the newly hatched business will be Lenovo's development of the two-class rockets. He wants the company's annual revenue to expand from $40 billion trillion to $100 billion trillion in size. (Loliang) The following is the full text of Mr Yang's internal speech: China Associates: Many important decisions have been made in this conference room, and these decisions are important reasons for keeping Lenovo up and growing over the years. It's just the right time to open this today. Why do you say that? While our performance is at its best in history, global business is in a strong position, especially in the US and Europe, where new growth has been established, a new growth engine, and more balanced operations across regions. But at this time we need to be in danger, prepare for a rainy day! Today we face enormous challenges both internally and externally. First, China's business is indeed met a hurdle. All along, China's business has been the core and mainstay of global business, especially in terms of profits. The Chinese business not only provides sufficient resources (financial resources and human resources) for the company to expand overseas market, but also the experimental plots and hatchery of the new business. But in the past two years, China's business has met with a very big challenge in terms of growth, and we are not actually growing, even if we include mobile phones. There are reasons for the shrinking of the PC market and stagnant growth, there are macro-economic reasons, but everything is decisive and we have to review ourselves more. How do we think about the strategic direction and implementation of the new business? How about the strategy of execution? Resolute on the strength of implementation? On the other hand, external also gives us great challenge. While some of the challenges are not directly geared towards our core business, they are now forming a huge market impact and are likely to affect our core business. For example, the impact of new Internet companies in the field of smart phones. Of course, this does not mean that they have no problems themselves, they want to grow up as a company like us, I am afraid to have more of the hurdle, they do not have the ability to carry out the new industryThere is no shortage of capacity. But indeed, they have a lot of strengths that we should learn, they grasp the characteristics of the internet age, including marketing methods, fans of the economy, the way to develop and so on. Again, for example, the recent rapid growth of domestic server manufacturers, they are in the server area from the top and infiltration, for our past mainly cover low-end and small and medium customers strategy, is a big challenge, especially in the market to IPDC, cloud services and cloud computing direction of the transition. Of course, after completing the IBM x86 Server business acquisition, we will greatly enhance the advantage of the high-end product line, with a complete portfolio and coverage. Therefore, it is very timely and necessary to talk about innovation in China, which is faced with great challenges outside. Today I want to talk to you about two topics: The first topic is how to incubate new business. Of course the new business is to look at the direction of business, and then how to organize and implement, and the second topic is how to further optimize our business model. This business model is not only for the old business, for the incubation of new business, business model optimization also has a great help and promotion, even necessary. First topic, how to incubate new business? In a strategic direction, it's not that hard. Everyone's concern is very much in line with what the group sees. A line is the Enterprise customer direction: We want from the end product to the background equipment to expand. Background equipment sales and terminal device sales are completely different, we have to provide solutions, consultants, for the enterprise backstage after-sales service and so on ability. Another line is the direction of consumption: Our industry has experienced the era of PC interconnection, then the mobile internet era, the future? Many people call it the internet of things, but now the scope of the Internet is too large, we still have to take root, to focus. I think that the mobile parts by mobile phones, tablets and other equipment coverage, the future of the main focus or to return to the home, so that more intelligent home, but also on the road, such as cars. In these areas, from a technical and product perspective, the entire company, research institutes and product groups are preparing to believe that we will not lag behind, and that next year CES and MWC will have exciting product listings and launches. The new bench is also very good at trying to do a daqianzhan job and is part of the overall layout. What's the direction? For different business to have different practices, there are high hit the Grand practice, is to make the whole company's strategic direction: such as servers, such as smartphones, through mergers and acquisitions to enhance capacity, enhance the scale, it belongs to this category; There are also team practices (such as the new bench), There may even be a further extension: Some teams are inside, some are outside, and investing in the form of investment, holding, or investing in small stocks is possible. These at the LEC level have in-depth discussion and deployment, to the Chinese side is to take root, for specific new business, such as servers, storage and so on, you have to form a set of appropriate play. How to implement, no more than we often say 6 toElement: organization, personnel, process, goal, assessment, motivation. These must think clearly, only then is a complete implementation plan. Of course, the specific approach is different for the direction of high fight and the direction of the team. To hold high and fight more is to consider how to use the company's existing advantages, the existing platform to expand new business. Of course, this kind of business, especially to remind that we can not be too confident, too complacent, that our existing capabilities can naturally extend to new business, where often prone to problems. Like mobile phones, we used to think that personal computer channels were suitable for sale, but that's not the case. Similarly, while we are in the server business, although our channels can be used to a great extent, our customer relationship is a strong advantage, but perhaps other aspects of the disadvantage will mask these advantages. This is especially necessary to be careful in raising Gao Ta. For teams, the big tone is to let it independent, let it end-to-end integration, but also consider how to use the company's advantages: the advantages of procurement, research and development advantages, platform advantages, supply chain capabilities, as well as brands, channels, sales and so on. In fact, these are many small companies will not want to come to us, if we do not make good use of the inside, then lose. Overall, the mechanism and the big tone must be business decisions, but smart people will know where to occasion and where to be independent. By doing this to incubate new business, we should be able to go another city in the next few years, rather than stagnate. It's all about planning, it's about strategy. Once the new business has gained momentum, growth is natural and will go faster. Microsoft, Intel in 30 years of development to today's scale, Google spent more than 10 years, Apple is two jump, before Steve Jobs came back, near the brink, and then have a good strategy and innovative products, the second stage of the launch, now much larger than Microsoft, Intel, even IBM, They are now the largest enterprise in the IT field, with 1000.2 trillion dollars a year of business scale. We are now 40 billion, after the completion of the acquisition 50 billion, our ultimate goal is through the launch of the level two rockets, but also to reach 100 billion of the scale. This is our strategic direction, and how to incubate the new business strategy. The second topic, how to further optimize our business model? Not only to meet the challenges of new internet companies, but also to make our own enterprises more efficient and more competitive. No business model can be permanent, it depends on the different market, competition, different technology and adapt to change. The core of our business model reengineering is to change from selling products to managing customers. This is true not only for corporate customers, but also for consumer customers. In the past we sold the product is finished, and then waiting for customers to find us, we rarely know where the user, their next demand is what, this is not in the operating customer. What we do now is social media, interactive marketing (indicators marketing) is through what reaches the mostEnd user? I believe this is not the most advanced way to pass messages, mainly through advertising and through opinion leaders. In the future we need to direct marketing to be ready-made users! They are already our users, and if we can't sell our products or new products through them, it's not a customer model. Everyone is talking about the fan economy, the new internet companies are really strong, they have fans, fans are affecting fans. So how can we build this system? The first step, we have to let employees are proud of their products, not only willing to use, but also willing to promote, promote and sell. We should learn from the existing users and know what they expect and hope for the next generation of products. When we have a new product and a new attachment, we know where the customer is. Through these customers, communities and such networks, to sell and promote the product. This is the operating customer. Of course, for corporate customers, have business customers business methods, we need to establish and improve the consultant's ability to service, product services. Service is really very important. We've just talked about the future of technology, products, and strategy, moving back from mobile devices to home, where more services are needed. Although it is in the direction of the simpler the better, but more equipment, the interconnection and collaboration between various devices and so on the service needs more. We should not only accumulate the service ability to the enterprise customer, but also accumulate the service ability to the consumer user. It is also an integral part of selling products to operating customers. With interactive product development, we sell products to this group of people who are going to be part of our product community, and their voices will be delivered to the ear of the Product development Department, the most concentrated and reflective of the needs of most people, to be valued, solved and perfected in the next generation of products. With such a community, we will not only have the ability to sell, but also have sales potential. Today in the PC field, we have landfilled market share in China. This is a huge advantage, huge treasure, we should know how to maintain these users, let these users satisfied, this is our first task, they are PC users, but also should be our mobile phone, TV, router users, we should make full use of these existing customers. Lenovo has an advantage in these areas, but we need to make changes and face the challenges we face now. This is how to hatch new business, how to achieve change in the business model, let the business model from selling products to operating customers. If we can do these two things well, I believe that China's business will be able to take off again, like Apple, loaded with two-class rockets. China team is a glorious history of the invincible team, but in the face of new challenges, we still have to pay high attention, we must make adjustments to make changes. If you do not change, you will be changed! If Lenovo does not actively change, Lenovo will fall behind! I am full of confidence in this team.