Yang: The millet pattern is the wool in the pig

December 15 News, Lenovo Group chairman Yang in the 13th Session of China Enterprise Association, said the millet model has made rapid development, Lenovo is also seriously learning millet mode. Millet recently encountered trouble, so said in the creation of new business model, wool eat in pigs and also consider respecting the rules of the game.

In moving into the mobile internet era, Lenovo asked employees to acknowledge that we are a traditional enterprise and that the purpose is not to cling to it, but to change it, Yang said.

The following is a transcript of Yang's speech:

Host He Yifan: Here is Mr. Yang, chairman of Lenovo Group.

Yang: Good afternoon, ladies and gentlemen, first of all, I have a praise for "Chinese entrepreneur", which will only buckle the pulse of the Times each year, and today's theme to create a different growth is the focus of its time.

I found that the recent topic related to China is a year hotter than the year, we are very sensitive to the Chinese macro-economy when hot, when cool. It shows that the weather in China has affected our global economy. Like Alibaba's listing, millet pattern, now overseas also become the hot topic of the street, these topics are closely related to the theme of today's Congress. China is entering a new normal, how we are going to get different growth. For the past 30 years, China has been making full use of its labor cost advantages, the efficiency advantages of the world's production of products, become the world's factories. Our manufacturing capacity is the strongest in the world, we use manufacturing advantages, we are today's rapid economic growth, just because this advantage can sustain future growth, the answer is clearly negative.

In other words, the developed countries in Europe and America, especially the United States, have shifted their manufacturing to developing countries such as China, India and Vietnam, and their economies can continue to grow, for what reason? On the one hand, they give full play to the service industry, the more important factor is innovation, economic growth is more driven by innovation. Microsoft, Google, and Amazon's innovation companies are driving the overall economic growth.

In the next twenty or thirty years, China's economy should develop at a high speed without turning itself into an innovative country. We have come to realize that the Government is actively engaged in developing fair and transparent market rules, protecting intellectual property rights, establishing a good investment and financing atmosphere, encouraging innovative enterprises and so on. Under such leadership, China is undergoing positive changes. There are already a number of Chinese innovative enterprises in the global market emerging, the telecommunications industry ZTE, Huawei, including our Lenovo.

I have a good example here, you know that Microsoft is the world's IT industry leading enterprises, mobile, but recently they have to pay for a Chinese enterprise innovation products advertising, the United States of the major networks broadcast continuously, we can believe it? No, we have to have a picture of the truth, let's take a look at this ad.

So Microsoft's highly trusted product is Lenovo's yoga, just released in October. Also in the international market is highly welcome, for American talk show host recommended the best Christmas gifts. It is known that Apple has released a tablet computer, and the PC industry has been thoroughly eaten up in the years after the tablet computer swept through all the momentum. This year everyone put a bet, three years ago I played with Ying, the topic is three years later is the PC sell more or flat sell more? Today, three years have passed, but at this moment I do not want to say who wins and loses, because he has not said so.

I would like to tell you that Lenovo and I are highly alert, highly clear, on the one hand dedicated to the development and sales of tablets, on the other hand, in-depth study of traditional laptops and tablets compared to the lack of space. such as not thin enough, can not touch, the application platform is not convenient and flexible and so on. In response to these deficiencies, we make bold innovation, so that today we will become Microsoft's Windows product banner, they spend money to advertise for us. Because of this innovation, the PC market remains healthy today and remains a huge market for 200 billion of billions of dollars. The growth of the tablet, though subject to a certain constraint by PC innovation, remains an important part of the PC family. We use it to enjoy entertainment, driving the growth of the big PC industry. In this sense there are no winners and no losers, I have to thank Ying.

In fact, the innovation of Chinese enterprises is not only in technology and products, but also in business model. Alibaba's listing in the NYSE has created its biggest IPO in 200 years, depending on what it is doing in the business model. We all know to do E-commerce earlier is Amazon, Amazon is buying things, buy their own to sell out, emphasizing the large-scale procurement after the cheap price. But Alibaba did a different business model, he set up a platform, so that more businesses to sell things on the platform, they help them advertise and promote, they charge advertising fees, things sold out, they will also be divided from the business. They have also created payment tools like Alipay to help buyers and sellers build up a reputation for connections. Thus forming a new vibrant ecological chain, which is a very innovative business model.

The recent hot millet model is the same innovation, they build the fan community as a starting point, according to fan feedback to develop product improvement. Through their word-of-mouth to promote products, to mobilize the interactive service products among fans. Relying on such a pattern, millet has made rapid development, now many companies including Lenovo we are seriously learning his model, but apparently they have a deeper gene. Recently they have been in trouble, so they say that in creating a new business model, wool eats in pigs (TechWeb Note: sic) and also consider respecting the rules of the game.

Of course, in addition to Alibaba and millet, many of China's internet companies have established their own unique business model, such as dropping a taxi and so on. But the business model innovation is not the internet company's patent, many traditional enterprises like Gree, ZTE many of the companies here have done a lot of business model attempts and a lot of innovation, Lenovo has been doing this effort. In the 1994 we beat the international giants in China, the core is faster and the latest technology than the Giants to market at the lowest price, always selling fresh blood. Use this efficiency advantage, so that users can get benefits. This is similar to today's worldwide Internet model. The essence of the Internet model is to improve efficiency, so that users get greater benefits.

Since then, we have continued to innovate and upgrade the pattern of the night, and later, for different types of customers to create a industry-wide unique model of what we call bi-business, relational and transactional models, we have laid a leading position in the global PC market.

Today Lenovo is just a global company, in the arena of global competition, what is our unique business model, what is our future competition. We all know that in the IT industry is the original lead in the European and American brands, the largest companies in the United States. 20 years ago, as markets were mostly home-grown, their research and manufacturing industries were local, and when market development in China and other Asian countries developed, they were cheap and attractive. To go to these places production can bring lower cost and higher competitiveness. The use of local people to manage the cost is lower, all these to the OEM manufacturer, he is responsible for branding and marketing. At first they did their own research and development, which was later turned over to outsourcing vendors, from OEM to ODM. They choose from the products developed by these vendors, gradually losing contact with upstream suppliers and losing innovation. And Lenovo is different, we not only have China's background, has always insisted that their own manufacturing do well, have a better competitive cost. Be efficient at the same time, contact with upstream vendors to capture dynamic and spark. The development of technology and the full investment to ensure that we can still have innovative gene innovative ability of the company. This optimal balance of efficiency and innovation will also help us to create a global business with unique competition.

We have entered into a new market by way of investment and mergers, and an effective way to expand brand impact, strengthen brand awareness and enter new product areas worldwide. The acquisition of IBM PC business in 05 has laid the foundation for our global brand. Recently completed the IBM X86 server and Motorola's mobile business acquisition. Mergers and acquisitions bring not only brand, but also intellectual property and innovation ability, we can also play well. Summed up is two points, the first is independent manufacturing and brand marketing team. The second is the best balance between utility and innovation.

Last but not least, in the era of mobile interconnection, frankly speaking, our IT internet business has become a traditional enterprise. We ask our employees to acknowledge that we are a traditional enterprise and that the purpose is not to cling to it, but to change it. In fact, the company has set up a business Change project group, which is led by me, we study carefully including the millet model and other successful Internet models, which has carried on a thorough and thorough transformation inside the company. From interactive product development and iteration to internet marketing, including digital marketing, social media marketing, and fan marketing. From Business-to-business to Business-to-consumer online sales and promotion channels to the O2O transition, and to build community forums for mutual assistance services. We build a customer-centric business model to the user experience and application as the center, in this grafting hardware equipment, the new business model. We will never lose the characteristics of the parts, such as our technology manufacturing and customization of the combination of future opportunities will be, the future is personalized era, we in the production of advantages will be more fully play.

This is what I want to share with you today, the mobile Internet is a far-reaching change in all walks of life, whether traditional industries or emerging industries, are facing unprecedented opportunities and challenges, innovation is the best way to achieve a different growth, thank you.

Moderator He Yifan: Thanks to Mr. Yang for his wonderful speech, our theme today is to create a different growth.