Lenovo 2016 Annual Report Download - page 45

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2015/16 Annual Report Lenovo Group Limited
As the exploratory businesses – like start-ups it funds through Lenovo Capital and Incubator Group – it 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. The Group is to invest in core-technology and Internet related areas,
including cloud computing, big data, artificial intelligence, robotics and Internet services, enhance its
Internet service and intelligence ecosystem.
The new organization structure and operating system will enable the Group to attack the opportunities
in “Device + Cloud”. Lenovo used to be a device company, and then became a device primary, cloud
secondary company. As the world is heading toward an age of “Internet of Things,” everything around
people can have computing, storage and networking modules built inside. While protecting its “general
purposed device” business, the Group will develop more specific-purposed devices, based on customers’
needs in different scenarios – at home, at work, or on the go.
Lenovo has a unique advantage in combining its traditional strengths in end-user devices with its new
capabilities in cloud and infrastructure to meet customer needs with a balanced “Device + Cloud” model.
This is where Lenovo will attack and grow.
Lenovo will continue to leverage its
innovation leadership to create new and
exciting choices for its customers and drive
new growth. The Group will host its second
annual Lenovo Tech World conference
in June this year. Tech World 2016 will
host major product announcements,
including the world’s first consumer Project
Tango-enabled smartphone in partnership
with Google, which brings augmented
reality technology. Lenovo will also
announce new mobile technology designed
by Motorola and share the Group’s vision in
emerging topics in innovation.
These fundamental changes the Group has
made will position the company as a faster
and stronger global company. This in turn
will drive sustainable growth in revenue and
profit amidst strong competition and market
changes. In the year ahead, the Group
will stay committed in driving the market
outperformance in PCs while maintaining
strong margins, improving quality of the
Mobile business and driving its revenue
growth, and driving strong top-line growth
in the Data Center business.
The Group has started to monetize certain
non-core assets. Coupled with an increasing focus on further improving the management of its working
capital, these actions will continue to improve its finance situation.
Lenovo will continue to invest in areas it believes are important to its future success. Lenovo remains
fully committed to its protect and attack strategy, supported by its proven execution capabilities, to
lead the Group on its ongoing journey towards building a respected global tech leadership position in
every business the Group enters and to drive profitable growth that, in turn, creates better value for
shareholders.