Yang swears by innovation, design, business model and strongcorporate culture
Growing strength in innovation will help China's Lenovo Group Ltd, the world's largest personal computer maker, gain a stronger presence on the global stage, said Yang Yuanqing, its chairman and chief executive, on Monday.
"Chinese firms need an all-around beef-up in (aspects like) product design, business model, internationalized team, (corporate) culture and, most importantly, innovation, to earn greater respect from overseas markets," Yang told China Daily ahead of his visit to the United States as part of the Chinese business delegation accompanying President Xi Jinping on his state visit to the country. [Special coverage]
The Lenovo veteran is set to hold talks with heads of 15 U.S. technology companies, including Satya Nadella of Microsoft, Jeff Bezos of Amazon and Tim Cook of Apple.
Yang, 51, said he expects "substantive results" from his meetings. "The visit will offer a great opportunity for entrepreneurs from both sides to discuss a wide range of topics."
For nine consecutive months now, despite a global slowdown in demand, Lenovo has held on to its top position in the world's PC market with more than 20 percent in market share.
Tim Coulling, a senior analyst at research firm Canalys, said: "Lenovo controls almost 30 percent of the Chinese PC market and is steadily building its share in the U.S.. With a more diverse product portfolio, Lenovo is in a stronger position than Apple to cement its lead in the market."
Going global is a key strategy for Lenovo as Yang leads the Chinese giant to compete with overseas vendors in PC, server, smartphone and other segments.
Lenovo operates in more than 160 markets and roughly 70 percent of its annual revenue comes from markets outside of China. It was among the top three players in tablet and enterprise-related businesses. Having completed the $2.9-billion acquisition of Motorola Mobility from Google Inc last year, Lenovo has an eye on the global smartphone market share.
Yang attributed Lenovo's global success to clear strategy, innovative products, an efficient business model and a multicultural management team. "These are our ingredients for success. As we enter the era of 'Internet Plus', our strength in innovation is playing an increasingly critical role. It's a strong innovative spirit that has brought Lenovo to where it is today."
Mergers and acquisitions have been useful for Lenovo to grow its global presence. Before the record Motorola buyout, it bought IBM Corp's PC unit in 2005, a bold move that was to lift the company to the top of the global PC market.
Today, the Beijing-based company is looking within for innovative ideas. Yang chairs a monthly summit in which the company's most experienced researchers discuss ideas with a high-level management team. If necessary, executives revise technology strategies.
The company's research facility is responsible for drawing up a route map for technology development over the next five years. Lenovo encourages lower-level staff to come up with out-of-the-box ideas. Employees from other departments can contribute to the design process.
Lenovo said it spends $1.7 billion annually in research and development. Its investment in innovation will increase by more than 20 percent year-on-year.
Yang said Lenovo's 8,000 developers and engineers in China, the U.S., Japan, Europe and other regions gave him confidence to advance into international markets, selling products with higher technology value.
Earlier this month, Lenovo revealed the next-generation flagship wearable and smartphone it will introduce in the global market. The Moto 360 smartwatch and Moto X Style pamphlet boast ultramodern features such as always-on voice assistance and a 21 megapixel camera.
