Lenovo Group on Tuesday said it would reorganize itself and form four business groups instead of current two. The new business units will address particular market segments and will thus be better positioned to serve demands of the market. The company also reshuffled its executives.
“Today, Lenovo is in one of the most important and exciting phases in our history. We are the number one PC company in the world. We are number 3 in Smart Connected Devices (PC, tablet, smartphone). And we just announced the intent to make an acquisition that will make us a significant competitor in the Enterprise space,” said Yang Yuanqing, chairman and chief executive of Lenovo.
Lenovo has established four new, distinct business groups, effective April 1, 2014.
- PC Business Group (including Lenovo and Think brands), led by Gianfranco Lanci, who currently leads Lenovo EMEA. This group will ensure that the company continues to innovate, drive profits and expand our lead in our core PC business worldwide.
- Mobile Business Group (smartphone, tablet, smart TV), led by Liu Jun, who currently leads the Lenovo Business Group (consumer and mobile products). This group is focused on making Lenovo a profitable global player in the fast-growing smartphone and tablet and developing our smart TV business.
- Enterprise (including servers and storage), will be led by Gerry Smith, who currently leads Lenovo’s Americas Group. The goal of this group is to aggressively build a new, fast-growing profit engine in enterprise, where we already have a solid foundation. Pending regulatory approvals, the business represented by the recently announced acquisition of IBM’s x86 server business would be integrated into Mr. Smith’s organization.
- Ecosystem and Cloud Services (including both Android and Windows opportunities), led by George He, senior vice president, Lenovo, who currently serves as chief technology officer. The goal of this group is to continue building our China ecosystem and drive a strategy for monetization and ecosystem expansion.
This structure replaces the company’s current design, which has two business groups: Lenovo Business Group (including consumer PC and mobile), and Think Business Group (consisting of commercial PCs and enterprise).
Geographic sales organizations remain largely the same, with Lanci leading EMEA, Smith leading the Americas, and Chen Xudong (senior vice president, Lenovo, and president, Lenovo China) leading China. The large, diverse Asia Pacific region will be divided with the Mature Markets (including Japan and Australia, New Zealand) reporting to Lanci and Emerging Markets (the remainder of the geography) reporting to Chen Xudong.
Peter Hortensius, currently head of Lenovo’s Think Business Group (Think branded commercial products) is the new head of research and technology and chief technology officer, replacing George He in those roles.
“The new structure will help us be even faster, more focused and more efficient in providing innovative products and services to an incredibly diverse global market with a wide range of technology needs. We know we must anticipate the next set of opportunities for our company, and we are preparing our organization for the future. This way Lenovo can not only continue as the world PC leader, but become a true leader in the PC+ era,” added Mr. Yuanqing.