Lenovo 2009 Annual Report Download - page 26

Download and view the complete annual report

Please find page 26 of the 2009 Lenovo annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 156

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156

MANAGEMENT’S DISCUSSION & ANALYSIS
2008/09 Annual Report Lenovo Group Limited
24
in the post-recovery environment. In January 2009,
Lenovo launched the world’s first dual-screen mobile
workstation – the ThinkPad W700ds – that combined a
new balance of unique design with complex engineering
and unparalleled performance to meet users’ needs in
the fields that demand high computing capabilities.
The Group completed its entry into the server market in
late 2008. The launch of ThinkServer portfolio, which
was designed to deliver a better server experience for
the SMB customer, enabled Lenovo to better serve this
customer group.
Global Supply Chain
Lenovo’s global supply chain made solid improvements
in efficiency and delivery times while significantly
reducing material and end-to-end costs during the
2008/09 fiscal year. Improving on serviceability has
always been a key priority at Lenovo. The use of Lean
Six Sigma methodologies resulted in streamlined
materials management, reduced manufacturing
cycle times, and a focused effort to simplify the
product portfolio. As a result, the Group improved on
serviceability of its notebook and desktop computers by
8 percent year-on-year.
The Group also delivered a 10-percent year-on-year
improvement in cost per box. Strict controls over
operating expenses, plant and distribution optimization
work, and a strong effort to reduce excess and
scrap material contributed to the end-to-end cost
improvements. At the same time, Lenovo worked
closely with its materials suppliers to drive lower parts
costs. Through negotiations of long-term agreements,
strategic bulk-buying arrangements, and supplier
consolidations, Lenovo delivered significant materials
cost reductions across the major commodities.
Customer Services
Throughout the year, Lenovo remained committed to
delighting its customers around the world with industry
leading service and support. In the 2008/09 fiscal year,
Lenovo improved its independent Customer Delight
scores by 10 percentage points year-on-year through
ongoing analysis and implementation of best practices
globally.
Lenovo’s commitment to delighting customers was
further validated by gaining the leadership position
in both Notebook and Desktop Corporate IT Buying
Behavior & Customer Satisfaction Surveys by
Technology Business Research (TBR) during the
year. Lenovo also ranked first in the 21st Annual PC
Magazine’s Readers Survey for Services & Support.
In addition, Lenovo garnered geography specific
service and support accolades by winning the CCID
Consulting’s best support award in China for the 11th
consecutive year. Lenovo was also the only IT company
in China to have ever been awarded four stars from Help
Desk Institute (HDI).
Lenovo ConstantConnect PC card