At Lenovo’s most recent annual company kick-off for its new financial year held on Wednesday, the firm’s chairman and CEO Yang Yuanqing announced strong growth, with total turnover increasing by 22% year-on-year and net profit increasing by 76% in the first three quarters.
Yang also said that by the end of the next fiscal year, Lenovo’s R&D investment will double annually. Over the next five years, its total R&D investment is planned to exceed 100 billion yuan ($15.7 billion).
Yang also revealed that Lenovo hatched three new innovative businesses in the last fiscal year – edge computing, cloud services, and AR/VR technology based on metaverse applications. Lenovo says it will strive to focus on this new organizational structure over the next two to three years.
In the past fiscal year, the firm’s Solutions & Services Group (SSG) built its organizational structure according to three types of services (support services, operation and maintenance services, project services and solutions). It integrated sales resources according to China and international business lines, and also newly established a cloud services team.
At the kick-off conference, Kirk Skaugen, Executive Vice President of Lenovo and President of the Infrastructure Solutions Group (ISG), announced the previous establishment of a Lenovo edge computing business department, which took effect from April 1. The department integrates the edge computing business scattered across various departments into a complete business, and will continue to invest in the construction of full-stack capabilities to promote its development.
At the same time, the Intelligent Devices Group (IDG) created a global team “Commercial Product Center (CPC)” to support small- and medium-sized businesses, which also took effect on April 1. The team will focus on managing the development of enterprise products, strengthen the collaboration between small- and medium-sized businesses and enterprise products, and further improve efficiency.
In addition, the newly established Global Innovation Center (GIC, formerly the Leading Innovation Center) will cover several major responsibilities, such as R&D and technology innovation platforms, software and equipment ecosystem platforms, tablets and mobile games, displays, desktops and all-in-one PCs, and Chromebooks.