On April 14, Lenovo China announced in Beijing that it would implement the “Dragon Tiger Plan” in the new fiscal year. Liu Jun, Lenovo’s executive vice president and president of China, called it Dream Goal for the 2021 fiscal year.
Regarding this plan, Lenovo China has also given corresponding specific goals. The “Dragon Plan” is to achieve a PC sales market share exceeding 42%, and the “Tiger Plan” promotes an 80% increase in the turnover of smart products and an increase in the turnover of smart infrastructure by 15 %, the turnover of smart services increased by 36%.
Liu Jun said that after three years of reform, Lenovo’s business in China began to explode. To continue to expand the leading edge of Lenovo PC and accelerate the transformation of smart services has become the right meaning of Lenovo China’s Dream Goal in the new fiscal year.
The accelerated expansion behind the “Dragon Tiger Project”
Data show that Lenovo China exceeded the initial “small target” in the last fiscal year. Among them, the PC sales market share in the first three fiscal quarters increased by 3.1 percentage points year-on-year to 38.9%, a record high; the annual revenue of smart products (non-PC) increased by 80%, and smart services achieved annual revenue of 1 billion US dollars. The growth rate was as high as 53%, and the combined total revenue of smart products and smart services accounted for more than 11.5% of the total revenue in China.
In this regard, Yang Yuanqing, chairman and CEO of Lenovo Group, is obviously very satisfied. At the Lenovo China 2020/2021 fiscal year swearing conference that day, he praised Lenovo China’s performance with “Don’t recognize counsel in adversity, and not arrogant in good times”, calling it a model pioneer in the transformation of Lenovo Group.
IDC data shows that global traditional PC shipments reached 84 million units in the first quarter of 2021, a year-on-year increase of 55.2%. In the Chinese market, on the one hand, telecommuting and online education in the post-epidemic era are becoming the “new normal”, and the C-end market demand is shifting from one computer per household to one computer per person; on the other hand, the government and enterprise markets are also breaking out. In response to the increasing demand for localization.
Earlier, Yang Yuanqing said that under the epidemic, people work and study at home, and the demand for PC games is still strong, and it is expected that such demand will continue. At the National Two Sessions in 2020, as a representative of the two sessions, he proposed to extend the new infrastructure to families, encourage and support the consumption needs of enterprises and households for information products, accelerate the pace of upgrading and improve “home productivity.”
According to Liu Jun’s plan, the “Dragon Plan” will achieve a PC sales market share exceeding 42%, and the “Tiger Plan” will promote an 80% increase in smart product turnover, a 15% increase in smart infrastructure turnover, and a 36% increase in smart service turnover. It can also be seen from the “Dragon Tiger Plan” that Lenovo China hopes to seize the new round of market growth opportunities and take advantage of the urgency of accelerating expansion.
According to reports, the core of the “Dragon Project” includes three aspects. One is to further subdivide B-side and C-side customers, and continue to optimize customer experience; the other is to make full use of new marketing and sales tools to serve customers more personally and efficiently, and improve customer satisfaction. Degree; The third is to actively use the advanced business model established over the past three years of transformation to continue to expand the PC’s leading edge.
In the “Tiger Plan”, consumer tablet computers will fully challenge the top three in the market, consumer IoT devices will focus on key products and key scenarios to make breakthroughs, and mobile phones will focus on business and gaming customer groups; commercial tablet computers, commercial IoT devices and thinkplus businesses have made breakthroughs by increasing the proportion of self-developed products, exploring innovative models, and focusing on core scenarios.
Accelerate the transformation of smart services
It is understood that after more than three years of layout and precipitation, Lenovo’s “Sunrise Oriental” strategic transformation aimed at intelligent transformation has begun to bear fruit, and new businesses other than PC have grown rapidly. The combined revenue of smart products and smart service transformation business has grown by more than 50% annually, and the revenue in China has accounted for more than 11.5%. Among them, smart services have crossed the $1 billion threshold, with an annual growth rate of 53%.
Liu Jun said that he will continue to increase the “Sunrise Oriental” strategy. He established a goal for Lenovo’s mid- to long-term development in China. The PC sales market share will increase by 12% from the completion of 42% in the new fiscal year; the growth business revenue will account for the total revenue of China in the new fiscal year. More than 15%, and will quickly exceed 20% in the future.
In the field of smart services, Lenovo China will start the “two big battles”, in which support services, operation and maintenance services & DaaS will dig deep into customer needs and benchmark ServiceNow. Fast and complex solution services will build a solution platform and develop a solution service ecosystem. Achieve high-quality and rapid business development.
In Liu Jun’s view, “Optimus-Optimus” will be the “key piece” of Lenovo China’s acceleration of the above-mentioned smart service transformation. According to the description of Lenovo China, the “Optimus-Optimus”, which was unveiled on April 14th, relies on the “end-side-cloud-network-intelligence” new-generation technology architecture to “refactor” the traditional IT engine. “Nirvana” is a new IT architecture that is centralised and agile.
Regarding “Optimus-Optimus”, Liu Jun has high hopes: “Realize the internal driving of Lenovo’s business transformation in China, and the intelligent transformation of serving more customers externally, and become a powerful core engine driving the transformation and transformation.”
Liu Jun said frankly that when he returned to Lenovo China, he faced three major challenges, one is how to increase the PC market share, the second is how to find the next growth engine, and the third is how to reinvigorate the team spirit.
The “Dragon Tiger Plan” and “Optimus-Optimus” launched by Lenovo in the new fiscal year may give the answer.