MORRISVILLE – Starting this month, Lenovo reorganized its business groups as the company implemented a new organizational structure and launched a strategic transformation, as it hopes to be seen moving forward as a solutions company in the areas of devices, services, and software.
The move was reinforced Wednesday as CEO Yang Yuanqing and other executive leaders outlined the company’s goals to all of the company’s roughly 63,000 employees in a video broadcast.
Noting that the company’s share price has doubled since the onset of the global pandemic, Yang described the company as resilient and strong, and shared the background context for a shift in strategy: the company’s services, software, and soultions group grew nearly 38 percent year-over-year and now accounts for approximately 8 percent of the company’s revenue.
Executives are expecting that trend to increase, and are planning an additional listing on the Shanghai stock exchange to unlock greater value while broadening access to investors globally, the company indicated in a statement following the event.
The new organizational structure was designed to allow the company to invest its resources–financial, talent, and focus–into Internet-of-Things, or Smart IoT, infrastructure solutions, and solutions and services, while the company strategy will be to align its products and service solutions to solve client problems through three primary routes.
First, the company anticipates the continued proliferation of smart devices, and plans to develop new form factors, incorporate 5G connectivity, tinker with augmented and extended reality, and deliver new innovative collaboration tools.
Second, the company aims to provide an end-to-end infrastructure, and beyond the provision of devices, Lenovo expects to guide and assist its clients in shifting toward hybrid cloud solutions, integrating infrastructure with software and vice versa, and exploring edge computing.
Finally, the company anticipates the continued evolution of artificial intelligence, and plans to tap the power of AI to combine its hardware with other solutions that are software based to inform its work in smart manufacturing, education, and retail.
In February, the company reported its second record-breaking quarter, the third quarter of 2020, with revenues of $17.2 billion, up 22 percent year-on-year, with profits of $591 million. In that report, the company announced its intent to deploy its new organizational structure, noting it was “designed to capitalize on the Group’s service-led transformation growth opportunities.”
“We have an exciting future, but it takes solid steps to get there on our intelligent transformation journey,” said Yang to the company’s employees. “Be proud but not complacent. Be optimistic but stay resilient. Aim high but stay grounded,” he advised.
The company goals for its upcoming fiscal year include growth “twice as fast” in the company’s solutions and services group, double-digit growth in its infrastructure solutions group, and mobile profitability in expanded markets due to the innovations the company makes in 5G, and were presented by Yang during the video broadcast. The company also expects to cement its hold on the #1 spot in PC market share throughout the year.