For many years, as a well-known brand, Lenovo has been concerned about its PC business, but since its inception in 1984, few Chinese brands like Lenovo have not only passed the PC business, but also in the data center and mobile. Business, VR/AR and even artificial intelligence and other areas of globalization.
Interestingly, Lenovo has been trying to "take the lead" in recent years. Taking the AR Mirage product in 2017 as an example, by working with Disney, Lenovo brought the experience of the Star Wars Jedi Knights to reality and achieved good sales. At CES in 2018, Lenovo partnered with Google early to try out the AI ​​product layout through the new category of Smart Display.
AR Mirage
The numbers don’t lie, not just the PC business. The Lenovo PC+ tablet market is in the top three in nine countries including Brazil, Mexico, Argentina and Peru. The smartphone market is in front of four countries including Mexico and Argentina. Sanjia, and in the new AR headset market, Lenovo has won the title in Latin America.
In the transition to diversified services, Lenovo promoted the “three-wave strategyâ€: the first wave of PC business; the second wave of data center business and mobile business; the third wave of “equipment + cloud†and “infrastructure + cloud†business, From product to smart ecology, we have opened up an in-depth layout.
People think that the brand that is stable and heavy, can be diversified and even younger now? With this curious question, we found the answer at this week's Lenovo swearing conference.
Lenovo Group 2018 Swearing Conference
On April 10th, in Raleigh, North Carolina, the reporter participated in the Lenovo Group's 2018 Kick off, as an annual new fiscal year outlook, this gathering gathered thousands of Lenovo foreigners from North America and Latin America. Employees, and Yang Yuanqing, chairman and CEO of Lenovo Group, also received an exclusive interview after the conference. He chatted with us about how Lenovo has gone through "hard days" in recent years and how to find a new pace.
The following questions and answers were based on Yang Yuanqing's live speech on April 10 and the interview after the meeting. The reporter made the necessary edits:
Q: Since the opening of internationalization in 2000, the native-born Lenovo has now owned 52,000 employees worldwide. The group's business has expanded to more than 160 countries around the world, with a global technology development and supply chain system. So in the decades of history, what is the story of Lenovo’s growing step by step into an international company? Where will the future develop?
A: The internationalization of Chinese companies is an inevitable road. China has such a large market to guarantee the bottom, and it has accumulated strength in this market. In the end, it wants to grow to definitely go to a broader market. The Chinese market is bigger, and it is only 20% of the global market. If you only want to develop with a local market, it is very difficult to compete with global companies. This is relatively early. China's enterprise development is nothing more than two roads, one is going sideways and the other is going side by side. The so-called horizontal walking is diversified development. The so-called vertical walking is that after you have made an industry bigger and stronger based on the Chinese market, you develop vertically and develop overseas.
After 2000, we began to explore international development. At that time, IBM wanted to sell his PC business. At the beginning, we still felt that it was a fantasy. By 2003, although we were strategically interested in promoting this, we still felt that it was a snake swallow. We were a $3 billion business in China at that time and needed to talk to IBM. For IBM, it is worth 10 billion. The business of the dollar, not to mention the fact that people are international brands and have the ability to operate globally, we were only able to operate in one country at that time, and only known in the country.
Whether it is independent internationalization or internationalization of mergers and acquisitions, it is not an easy road. At that time, it was even harder for us to take this road. It is much harder than the current Chinese companies going to sea, because at that time China’s overall brand awareness was not enough, including the image made in China is low-end, so it is even harder. In comparison, I think the way of mergers and acquisitions is a shortcut for us, but it is also very difficult. In fact, it took us four or five years before we slowly got on the right track.
We acquired IBM in 2005, but in the four years from 2005 to 2008, the turnover did not improve much. At the time, we were very clear that we did not have mature international operation capabilities. At that time, we invited foreigners to be CEOs. It took four years to complete team integration. The Chinese team headed by me spent four years. Time to learn international operations. In the past, we only swim in the Xiaojiang River. Later, we went to the sea to swim. It took a while to get used to it.
After several years of international operation and exploration, since the beginning of 2009, our PC business has improved a lot. Previously, our turnover has not increased for four years. The PC market share has been hovering at 7% and 8%, ranking fourth in the world, behind Dell, HP and Acer. In this situation, we adopted a combination of protection and offensive, and used the Chinese team to play the market for consumer business. By 2013, we became the world's number one market with a turnover of 14 billion to more than 30 billion. .
However, in 2013, when the PC business development encountered a ceiling, how to develop again? At this time, we must diversify. Therefore, in the past few years, we have been vigorously doing mobile business and vigorously developing enterprise-level business. After taking the international road, we have an international operation platform, including international organizations, talents, and operating systems.
In fact, Chinese enterprises have to become large and strong enterprises, and they cannot escape internationalization. The question is whether they are "first internationalized and then diversified" or "first diversified and then internationalized." Nowadays, some of our companies are doing well in China, and their diversification is also very good, but I believe that they will still have to go international. As I just mentioned, although our internationalization has been relatively successful in 2013, it is still not an easy task to do diversified business. Our mobile phone business and data center business have a very high starting point and foundation through mergers and acquisitions, but you have to digest them so well that you can truly become your business. You not only understand this business, but also build it. Your own core competitiveness, that is really your business.
Diversification is not to say that a company is the last of its kind, and what business is done. Now successful IT companies have at most two or three successful businesses. Like Microsoft, one is Windows, the other is Office, counting about three businesses in the cloud business, and the game business is three and a half. An international company may be tens of billions of dollars in turnover, and its diversification must be truly successful. Every successful business must have at least billions of dollars and billions of dollars in turnover. So if it is only developed in China, then every billion yuan of business is a successful diversification, but on a global scale, it is different on a global platform.
Q: Regarding AI, you have come up with a point of view, this is not artificial intelligence, it is enhanced intelligence, Augmented Intelligence. We also visited Lenovo's R&D center yesterday. I am curious that if we want to make AI another powerful part, do we have a focused consideration, and what areas do we focus on?
A: The coverage of AI is very wide. Our current understanding is still relatively narrow, such as speech recognition, voice dialogue, face recognition, automatic driving, and of course, automatic driving also uses a lot of image recognition technology.
Our understanding is that AI is a development direction based on data and algorithm-based, which has an impact on each value chain of all walks of life. I think it can drive the fourth industrial revolution. The third industrial revolution of mankind is the digital revolution driven by computers, networks and the Internet. The next step is the intelligent revolution, but it is based on the third revolution. After a certain calculation and processing of data, combined with the knowledge of all walks of life, Experience makes the industry's processes smarter and industry decisions smarter.
In these respects, Lenovo can be said to be unique, because the first driver of AI is data, where does the data come from? Data comes from devices, sensors, from PCs, from mobile phones, from what we call Smart IoT devices and sensors. . From PCs to mobile phones, and then to Smart IoT, Lenovo is involved.
Then the data is processed, and the data center Lenovo that is used for processing is also available. We have computing, storage and other equipment. This is an important reason for Lenovo to increase its data center business in the past few years. This includes high-performance computing. Things that can't be counted in the prescribed time can now be counted. Why is AlphaGo able to win Kejie? In addition to excellent algorithms, the past game is used as data, so that it can learn well and help it make decisions. Another important reason is that there is a faster computer, otherwise it will end a game of chess in two hours, and it will take a step in a minute or two. It can't be counted. So this is a direction, that is, the speed is getting faster and faster.
Raleigh Research and Development Center
Future intelligence needs to be everywhere, and computing needs to be everywhere, and cloud computing and edge computing are needed. Unmanned now, if there is no edge calculation, it is unthinkable without cloud computing. It must reflect the road conditions in real time, helping it make decisions at every point in time, without strong computing power. Our data center business needs to address these issues. Our high-performance computing business is now the second in the world. HP is the first. In the top 500 of the industry, we have selected 87 items, and HP has more than 140. But our goal is to become the world's number one within three years. . Then there is cloud computing, and now six of the world's ten largest cloud computing centers are our customers.
These are not all of AI. For us, AI is everywhere. The device does not simply generate data, and the data generated by the device goes back to make the device itself smarter. So our equipment, whether it is PC, mobile phone, or new IoT, AR/VR in the future, all of our devices should consider using different connection methods to drive artificial intelligence.
The first one is what we say is always online. The PC is the first smart device, but it's not yet IoT, and IoT is always online. Now that the PC doesn't have WiFi, it's not in the line, and it can't be like a mobile phone. So we have to make the PC first as IoT. It is very meaningful for us to always be online. As the largest supplier of PC in the world, I think this is our responsibility. The above is the connection between the device and the network.
The second is that the device interacts with people. To interact with people, the speech engine must be put into the engine of image recognition, which is itself part of artificial intelligence. You saw the demo this morning, our ThinkPad. In the past, everyone thought that only the Smart Speaker could talk to him. In the future, all the computers should be Smart Speakers, voice engines, and images that can recognize you, so they can watch them. I can see you, hear you, and talk to you.
Third, it is convenient to contact the device and the device. In the future, whether you use a computer or Smart Display, you can also use the hub of all your home appliances. You can control the lights, curtains and temperature. This is the connection of the device to the device.
The last is the connection between data and applications, and content, you must connect music, games and these things. So all of our devices, now and in the future, are driving such five connections, which makes the device itself an AI-driven device and itself becomes smarter with AI. This is another aspect of our AI strategy.
Q: You compare artificial intelligence to the fourth industrial revolution. Then, after this industrial revolution, how do you view the conflicts between artificial intelligence and human social values ​​and living habits?
A: Artificial intelligence as a technology, its development will not be blocked. Human society always hopes for technological progress, but technological progress will inevitably bring about some social problems. It requires us to have new rules and new constraints so that we can make technology better serve human beings. I think this is inevitable. of.
Like the development of the Internet before, there are also problems such as fakes, but can you say that the Internet should not develop? Certainly not. However, in the process of development, we must keep pace with the times to formulate new laws and regulations, or the moral norms of society. This is an idea we should have.
AI should be an extension of human wisdom, not because you are smart, so you are more worthy of enjoyment. Everyone should enjoy artificial intelligence more equally and achieve an equal expansion of intelligence. Equipment, artificial intelligence, can become a complement to a person's intelligence, a development, not to replace you.
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