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Dialogue with Yang Yuanqing: Lenovo is entering the next growth period

via:博客园     time:2018/9/14 20:31:57     readed:549


Lenovo Chairman and CEO Yang Yuanqing delivered a speech at Lenovo Transform Conference on the 13th

Tencent's "First Line" Ji Zhenyu from New York on September 14

“It’s clear to me that the changes in the industry over the past few years have brought us to a position where we can lead the next phase of intelligent transformation. On the 14th, facing more than 1,000 partners who participated in the Lenovo Transform Conference, Lenovo CEO Yang Yuanqing said.

In the past August, Lenovo presented a more than expected earnings report to the outside world, turning losses into profits. Among them, Lenovo has high hopes that the data center business, which is responsible for future performance, will increase by 68%.

After receiving an exclusive interview with Tencent's "First Line" and other media, Yang Yuanqing said that Lenovo is entering the next growth period.

In the interview, Yang Yuanqing reviewed several major turnings that Lenovo has experienced in the past 30 years of development. There are many profound lessons learned. Yang Yuanqing said that he had paid tuition fees. He admitted that after the merger of Motorola. Some of the integrations are “fantastic”, and after the acquisition of the IBM X86 server business in the same year, the market is inevitably shifting toward the trend of cloud computing.

These lessons are being translated into the driving force behind Lenovo's next phase of development. After missing the opportunity of the mobile Internet industry, Lenovo began to focus on data center business. On the same day, Lenovo announced cooperation with hybrid cloud data management company NetApp. Directly increase the market for only 15% of the storage business that was originally covered to more than 90%.

Although the current revenue of equipment such as PC still accounts for about 70% of Lenovo's revenue, Yang Yuanqing does not want Lenovo to regard Lenovo as a PC manufacturer. He emphasizes that intelligent and customer-centricization will be Lenovo's current transformation. core.

New opportunities in the era of cloud computing

Lenovo has been involved in the server market. It has been more than 10 years old. It started from the low-end server market and really entered the server market. It started with the acquisition of IBM X86 server business in 2014. After the acquisition, the market has already It began to change quietly.

Yang Yuanqing said that in the past IBM era, servers, storage, and networks were mainly traditional IT that was sold to enterprises. Before the rise of cloud services, enterprises built their own data centers or IT infrastructures. With the rise of cloud services such as Amazon and Microsoft, The market is rapidly shifting from traditional IT to cloud computing and Internet companies. At present, this part has accounted for nearly 40% of the entire server market and data center market, and the traditional business field is gradually shrinking.

The changes in the market made Lenovo's acquisition of the IBM X86 business unsuccessful at the beginning, and the business declined. Yang Yuanqing concluded that the core competitiveness and product structure for large-scale data centers have not been established. Avoided.

After Lenovo realized the market changes, it began to rebuild its competitiveness, and in the new market direction, it laid out business layouts for cloud computing and ultra-large-scale data centers.

“The competitors in this area are not Dell and Hewlett-Packard, but companies like Quanta and Inventec in Taiwan. & rdquo; Yang Yuanqing said.

The transformation of the server market towards cloud services has given Lenovo new business opportunities. Yang Yuanqing said that Lenovo has won the world's top ten data centers, and this result is directly reflected in the earnings report. In the last quarter, Lenovo's data center business grew by 68%.

Yang Yuanqing said that the three fastest growing areas of the data center business are Hyperscale hyperscale data centers, software-defined data centers, and supercomputers.

At the Transform conference that day, Lenovo announced a strategic partnership with hybrid cloud data management company NetApp. Yang Yuanqing said that in the past Lenovo's storage products could only cover 15% of all storage markets, and the remaining 85% could not be covered, but this time. After the cooperation is reached, it will be able to cover more than 90% of the product lines and provide competitive products.

“The new IT in the future is software-defined and super-fused,” Yang Yuanqing said. “The future server is not just computing, but a server that combines storage and network functions. It is an indispensable function and technology. ”

M&A lessons

During the interview, Yang Yuanqing also mentioned Lenovo's experience and lessons after previous large-scale M&A activities. In the course of Lenovo's development, there have been many major mergers and acquisitions, the most outside of which is the 2004 IBM PC. M&A; and the acquisition of the IBM X86 server business and the Motorola smartphone business in 2014.

Yang Yuanqing said that mergers and acquisitions and integration are not an easy task, and they must be well-controlled. For the acquisition of IBM's personal computer business, after four years of completion, the market value is still 10 billion US dollars, and the market share is even declining. However, this time has laid a lot of basic work for Lenovo's next business growth, such as the Chinese team. Learn how to operate an international business. From 2009 to 2013, Lenovo ushered in a second growth period with a market capitalization of more than $30 billion. In 2013, it was the No. 1 PC in the world.

Yang Yuanqing was frank about the acquisition of the second Motorola smartphone business. At that time, the integration was a bit anxious. He felt that buying a business was a buying ability, and buying the ability to borrow this ability to grow rapidly, but finally However, it has been found that this capability is applicable to some markets and some markets are not applicable.

“If you are rushing to use this ability to develop and grow quickly, you may be counterproductive, so we have paid tuition. & rdquo; Yang Yuanqing said.

Lenovo’s experience from this acquisition is that it should first be based on making the business healthy and growing, rather than both, and want to make money and want to grow.

Yang Yuanqing said that with such experience, Lenovo has become more focused on the mobile business. First, focus on the selective market, one is Latin America, the other is a mature market, and the Latin American market has been performing very well. It is a market that has both growth and profit, and Lenovo will consider further investment in the future. The second one is North America and Europe. Due to the high requirements for IP and patents in the North American market, it is difficult for Chinese brands to enter. This is the original intention of acquiring Motorola. The most important thing is to obtain patents, which can make Lenovo in every market. The advantage of competition.

Yang Yuanqing said that the mobile business is currently expanding very well in North America. In the past few quarters, it has been close to three-digit growth, and it is expected to achieve profitability this quarter.

In addition, in terms of throttling, Lenovo also took measures to reduce Motorola's costs and expenses. At the time of Lenovo's acquisition, the annual cost would be $2 billion, which is currently reduced to $1 billion.

“This allows us to be safer, even if the emerging markets shrink, we can still make money and be profitable. These are the recent strategies of our mobile business. “Yang Yuanqing said, “After the business is healthy, we will consider the next step after our successful expansion in North America. ”

Want to promote intelligence and customer-centric transformation

Although the current PC business revenue still accounts for 70% of Lenovo's revenue ratio, Yang Yuanqing stressed that he hopes that Lenovo will no longer simply regard Lenovo as a PC manufacturer. He defines the future Lenovo as a transformation in two aspects. And the second is customer centralization.

For the intelligent aspect, Lenovo gives itself the positioning of “Intelligent practitioners and enablers”, and practitioners are reflected in Lenovo’s own business becoming “intelligent”, which must become in all value chain links. More intelligent, such as supply chain intelligence, more accurate forecasting of demand, Yang Yuanqing, for example, Lenovo's current product line is tens of thousands, predicting demand in the past depends on the human brain, but the human brain's memory is limited, in fact, affecting demand Thousands of parameters, you can remember, less than ten, can be used, not to ten, but using machine learning, you can use thousands of vectors, indicators, which is why the machine More accurate than human prediction.

In addition, the telephone service center should be smarter. Some machines can answer the questions without adding labor. Marketing should be more intelligent. It is necessary to accurately define customers and accurately advertise.

Yang Yuanqing said that Lenovo's product development process needs to become smarter. It does not require focus groups to develop products. It should collect a wide range of information from the Internet. Whether it is for past products or competitors, it should be intelligently analyzed to determine the future of Lenovo. Products that define the direction of product development.

Yang Yuanqing said that Lenovo has three elements, the ability to customize, design terminal or IoT equipment for customers, the ability to customize, plan IT infrastructure, or computing power; and also prepare for the limited vertical industry. The solution is currently focused on smart manufacturing, smart healthcare and retail.

In terms of customer centralization, Yang Yuanqing emphasized that a customer-centric transformation does not mean that the product is not important.

“If you can't develop good equipment, you can't talk about the service to customers. “Yang Yuanqing said, “It is precisely because Lenovo has the ability to develop and produce such a rich product line that we can provide products to customers and services. ”

Yang Yuanqing pointed out that at present, Device as a Service, DaaS (Device as a Service) is more and more accepted in the whole industry. No matter many SMEs or large enterprises, now the server does not need to buy, buy cloud computing, and store it without buying. , buy clouds, even the PC does not have to buy, is to rent.

He said that in the face of such market changes, Lenovo needs to be able to provide such services to customers. At the same time, it gives Lenovo more business opportunities, such as connection as a service (connection as a service), content as a service (content as a service), platform as a service (platform as a service), etc. The manufacturers cooperated and made the platform very good.

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