Lenovo 2016 Annual Report Download - page 12

10 Lenovo Group Limited 2015/16 Annual Report
CHAIRMAN AND CEO STATEMENT
More importantly, we have aligned our
organizational structure to further strengthen our
execution and drive even better results from each
of our growth pillars. Our new structure addresses
these groups as a portfolio of businesses consisting
of:
• PC and Smart Device Business Group:
Consisting of our core PC business as well as
tablets, detachables, gaming and other smart
devices.
• Data Center Group: By reorganizing and
renaming this group, we will now be able to
be faster, more nimble and more disruptive,
particularly by leveraging relationships with an
array of key partners.
• Mobile Business Group: Focusing on
smartphones, this business has two
sub-groups. One focuses on China, where
we are rebuilding our business to win in the
world’s largest market. The other focuses on
continuing our strong growth in emerging
markets and breaking through in mature
markets.
• Lenovo Capital and Incubator Group (LCIG): As part of our innovation focus, this group will drive
innovation through investment in startups and exploring new technologies.
To maximize performance, we will manage different types of businesses differently based on the varying
stages of maturity as well as synergy with our core business. Based on these criteria, each business
will have the appropriate set of performance metrics, priorities, management processes, ownership
structure and incentives. While our strategic focus remains consistent, this management system adds an
important extra dimension and better positions us to respond to the changing market environment and
opportunities as well as for future profit growth. For example:
• Our PC business will be managed to maximize profitability and will always be a core business.
• Strategic expansion businesses like our Mobile and Data Center groups will be managed to drive both
profitability and growth. And where we can see shareholder benefit to different organizational and
ownership structures, we will be free to explore those with some flexibility.
• Finally, exploratory businesses – like start-ups we fund through LCIG – will be managed to maximize
valuation and return on investment, and may include a portfolio of companies where Lenovo is not
the sole or majority owner, but has an influence over strategy and execution and receives value for
shareholders.
I am confident that these organizational changes and our multi-business operating system will strengthen
our ability to both drive short-term performance and achieve long-term growth. And even as we make
these changes, I also remain fully confident that our core competitiveness and long-term success are still
based on the same formula for success that has fueled our growth from a $16 billion company in 2008 to
a nearly $50 billion company today: a clear strategy, innovative products, operational excellence, and a
diverse global team.
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