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Lenovo actively embraces digital transformation

By Ouyang Shijia | chinadaily.com.cn | Updated: 2019-11-22 16:57
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Yang Yuanqing, chairman and CEO of Lenovo Group. [Photo provided to chinadaily.com.cn]

Chinese tech giant Lenovo is actively embracing the digital transformation, aiming to gain a competitive edge and new momentum in the market in the near future.

Yang Yuanqing, chairman and CEO of Lenovo, said digital transformation offers a golden opportunity for Chinese companies, and Lenovo is dedicated to promoting the digital transformation.

"Embracing the digital transformation, we need new application solutions and smart ones. As traditional software vendors can hardly meet the new demands, we are on the same starting line," Yang said at a recent interview with the media during Lenovo Tech World 2019. "As long as we firmly step up our efforts, we Chinese companies will be able to be at the forefront in the emerging fields."

Lenovo's digital transformation journey has actually been underway for a few years, as the company has been transforming from a PC company to a device-plus-cloud company with significant data center and mobile businesses.

Yang claimed Lenovo's annual R&D spending hit more than 10 billion yuan ($1.42 billion), and the investment will be increased as required by business development.

"On the one hand, we will continue to invest heavily in R&D. On the other hand, we will also invest in emerging fields, including cloud computing, edge computing, big data, artificial intelligence and 5G," Yang added.

Tong Fuyao, senior vice-president of Lenovo, explained that as traditional Chinese enterprises are moving toward IT, intelligence and the internet, digital transformation is the inevitable trend.

"I believe Lenovo may be the only company that offers solutions in terms of end-to-end technological architecture. In other words, we can provide customers with terminal devices, including PCs, tablets, TVs, mobile phones and a range of sensors."

The company reported $13.5 billion in revenue in the quarter ending in September, marking its ninth consecutive year-on-year quarter of growth. And its net income increased 20 percent year-on-year to $202 million.

The result is driven by good performance in its personal computer business, and the company is starting to see returns from emerging businesses including its data center group in China.

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