You should have noticed that in the last two months, especially in the just-concluded "two sessions", Yang HK, chairman and CEO of Lenovo Group (00092), often mentioned a word: "new IT".

At the "two sessions", he put forward seven suggestions, involving science and technology, real economy, people's livelihood, business ethics and other dimensions. What he emphasizes most is "new IT".

Before the outbreak in 2020, he defined "intelligent infrastructure", which accurately matched the "digital infrastructure" guide issued by the authorities at the time of the outbreak. At this point, what does the "new IT" problem mean?

In Quark's view, this issue not only reflects Lenovo's integration into the economic development trend of big countries, but also conveys the signal that the 3S strategy has completed preparations in terms of technology, products, business model and organization, and ushered in an inflection point.

Yes, we think the new IT marks the turning point of Lenovo's 3S strategy.

Let's restore this logic.

Yang said that the so-called new IT is the technology, services and solutions needed to empower all walks of life and realize intelligent change based on the technical architecture of "end-edge-cloud-network-intelligence".

You should know that "end-edge-cloud-network-intelligence" is a digital technology architecture proposed by Yang in the middle of 20 19 and published in Techworld in the autumn of 20 19. "End" is the terminal of intelligent IOT equipment; "Edge" means edge computing, and "cloud" means cloud computing; "Net" is a data transmission network represented by 5G; "Wisdom" is an industry intelligent solution. This is also Lenovo's landing framework and methodology based on the definition of full value chain around 3S strategy.

Compared with the "cloud-tube-end" or "cloud-end" emphasized by peers in the past, this architecture integrates edge computing, 5G and industry intelligence, which is more complete and more in line with industry Internet application scenarios, thus making the digital landing a clear path and laying the foundation for large-scale landing.

China, which has experienced the baptism of the epidemic, has reached a broad consensus on the digital and intelligent transformation. The digital transformation of many industries urgently needs a more practical upgrade path.

New IT is Lenovo's answer from this node:

Compared with the expressions such as "the fourth industrial revolution", "3S strategy" and "terminal cloud network intelligence", "new IT" is easier to understand, easier to identify and popularize, and the cost of technology dissemination and brand marketing is relatively low. This kind of sinking, of course, fits the landing process of digital infrastructure in China.

Lenovo elements are complete. The intuitive part has a stronger ending. Especially the PC business ranks first in the world. Some people always compare mobile phones. In fact, the industrial Internet pays more attention to changes in productivity and production methods, while mobile phones pay more attention to consumption patterns. End is a powerful side of Lenovo. Of course, there are also many categories such as mobile phones. In the field of AI, Lenovo's computing power, algorithms and data are all complete. Especially in computing power, supercomputing has a high reputation, and it is also the core supplier of the top 10 cloud computing giants in the world.

Lenovo's other abilities are easily overlooked by the outside world. For example, edge computing, edge server has a complete series, which has penetrated into many scenarios such as intelligent manufacturing; Up to now, 5G has applied for more than 1200 standard essential patents, ranking 15 in the world. If you add the scene verification ability of B-end, it is actually a core player. Of course, industry intelligence is the key to the whole 3S strategy. In Yang's words, intelligent Internet of Things and intelligent infrastructure are ingredients, and industry intelligence is a big meal.

Lenovo is not ahead of its peers in every link. However, the complete elements and full value chain layout make it naturally have synergistic advantages. And "system integration and collaborative innovation" is the path that the government has been emphasizing from the decision-making level to the digital economy era.

We should realize that Lenovo itself is a huge digital and intelligent scene. IT is no accident that it can take the lead in defining 3S strategy, establishing a new technical framework of "end-side cloud network intelligence" and setting new IT issues at this moment. It is a symbol of comprehensive ability.

This layer is the focus of our article. Before analyzing, it is necessary to insert a topic.

One of the key challenges of intelligent change lies in organizational change first. A leading enterprise with intelligent change needs not only technological and product innovation, but also the change of its own organization.

Otherwise, its ability cannot be completely precipitated, and it is full of quality and efficiency. Imagine that a company that lacks organizational power may have strong technical ability, but it is unimaginable and even ridiculous to say that the output of the whole system can shake the whole scene. The voice-over is: Your own organizational strength is like that, and you still want to bring me changes? The organizational change of digital enterprise leaders themselves is actually a key scenario verification.

This is actually another dimension of digital twins. We saw the process of capability verification and precipitation in Lenovo manufacturing scenario.

However, I would like to remind you that when there are key organizational changes in such enterprises, it usually means that the system capacity will usher in an inflection point of large-scale output, and the digitalization process of the whole industry is expected to accelerate.

"New IT" is defined at the critical moment when Lenovo's technology, products, supply chain and other factors cooperate and step into the upgrading of organizational strength. Organizational change is precisely the core ability of Lenovo Group to lead intelligent change.

This is also the core dimension of quark's continuous observation of Lenovo transformation in the past three years. Let's briefly review the background. Incomplete, but enough to see the point.

20 19, quark once threw this problem to Yang for 3S strategy. At the swearing-in meeting in North America that year, when talking about the implementation of 3S strategy, he emphasized six elements: organization, people, process, goal, assessment and incentive, all of which are indispensable. Especially "dead details."

Subsequently, we saw the birth of Lenovo DIBG (Data Intelligence Business Group); Not long after that, CIoT (Commercial Internet of Things Division) was established. If CNBU (Cloud Network Convergence Division) was established in September, 2065438+2008, then the infrastructure matching the elements is complete.

However, how to create internal synergy and accelerate the landing of industry intelligence still needs a clear path and top-level design.

So we can see that at Techworld on 20 19, Yang announced the new architecture of "end-side cloud network intelligence". The five elements are not simple arrangement, but intelligent coordination. Needless to say, "cloud integration" has already matured; "Cloud-network convergence", Lenovo 20 18 has architecture support. There is more room for "edge cloud collaboration" and "edge network collaboration".

The establishment of the new architecture of "end-side cloud network intelligence" means that Lenovo will inevitably explore a more efficient industry intelligence landing mechanism around it.

At the end of 20 19, the highest decision-making level of the authorities began to emphasize "system integration and collaborative efficiency". At the same time, Yang began to talk about "smart infrastructure". When the epidemic is serious in 2020, the competent authorities will issue the guidelines for "digital infrastructure". After the "two sessions", when Yang proposed "smart infrastructure" as a motion, we felt that Lenovo's concept accurately matched the overall wind direction, and then there should be a grasp of landing.

At Lenovo's swearing-in meeting in April 2020, Yang described the goal of 10 in the future: services and solutions will become Lenovo's core competitiveness.

This is the grip of the outline. Corresponding to the intelligent landing of the industry. In Yang's view, industrial intelligence differs from intelligent Internet of Things and intelligent infrastructure in that it is a "building", while the latter two are "building materials". Lenovo certainly provides "architectural design and consulting services".

In fact, from the fiscal year 20 18, Lenovo's quarterly and annual reports began to strengthen the business data of software, services and solutions. A consensus has been continuously formed within Lenovo Group, which has aroused investors to accelerate the deepening of the 3S strategy.

Lenovo Group in 2020 is already in the moment of comprehensive digital cooperation. Sudden epidemic and local blockade once hit its manufacturing end hard, and parts were seriously out of stock in the second half of the year. However, this has virtually become a huge opportunity for Lenovo Group's digital collaboration. Its distributed global supply chain system plays a key role.

If you understand that Lenovo has/kloc-0 PCs for every 4 PCs in the world, you can appreciate its rock value to the global PC industry chain during the epidemic period. There is another detail that is unforgettable. At the "two sessions" in 2020, Yang emphasized that PC is a strategic necessity, and suggested supporting technology research and development and introducing policies to promote consumption. The outside world once ridiculed him for "thinking about money and thinking crazy." Today, without the support of PC industry chain, it is almost unimaginable to resume epidemic prevention work and realize various online services throughout the country. In times of crisis, people realize that what they turn a blind eye to is actually inseparable from daily life.

However, as far as the 3S strategy and the methodology of "end-to-end cloud intelligence" are concerned, Lenovo's business model and organizational structure still lack a key step. Although software and services have been established as the starting point in the next 10 year and are growing rapidly, they are distributed in many business groups/departments and remain a complete and independent organizational system. In this way, the whole business structure is not clear, and business expansion will be restricted internally. It is difficult for investors to pay attention to Lenovo's growth kinetic energy conversion and investment value.

For a whole year, quark cut into Lenovo from this angle on almost every key occasion, and predicted that its business model and organizational structure would definitely undergo key changes.

In last year's165438+1October 9th, The Mystery of Value: How Lenovo Group Break the Ceiling of Market Value? In the article, quark also analyzes how the topic of organizational structure inhibits Lenovo's market value performance.

Of course, we also know that organizational change is essentially an idea upgrade, involving processes and culture, and the bottom layer involves technology and data, which is quite complicated.

But quark firmly believes that this step of Lenovo Group will definitely come.

In this way, Lenovo's core business will be composed of three business groups, namely, Intelligent Equipment Business Group (IDG), Infrastructure Solutions Business Group (ISG) and Solution Services Business Group (SSG). It corresponds to the three dimensions of Lenovo's 3S strategy, namely, intelligent Internet of Things, intelligent infrastructure and industry intelligence.

This is a major organizational change of Lenovo Group for more than 30 years, and it is also a milestone. In the next few years, all kinds of innovative mechanisms triggered by it, including corporate global governance structure, Lenovo ecosystem, incubation ability, and especially the potential independent value of its business map, are immeasurable today.

However, it is certain that the 3S strategy and the new architecture of "end-side cloud network intelligence" will enter the efficiency cycle of large-scale landing. Lenovo's growth kinetic energy conversion and gross profit structure will change significantly. The entire value chain, upstream and downstream, and the industry intelligence ecology reached by Lenovo will also benefit a lot.

Lenovo's share price and market value are expected to usher in a leap. In fact, this is the scene. 18 February, Lenovo's market value jumped to133.8 billion Hong Kong dollars. Recently, the whole market has been deeply adjusted and has fallen back. At present, the market value of Lenovo Group is nearly 1 1 1 100 million Hong Kong dollars.

You may think that this data is not as good as a group of internet giants, including heroes who are listed for the second time. However, we should realize that on June 9, 2020, 165438+ quark released "The Mystery of Value: How does Lenovo Group break through the ceiling of market value?" On the day of the article, Lenovo's market value was only 64.76 billion. After four months, its improvement is obvious to all.

We have noticed that since 2020Q4 (natural year), many investment banks and brokers have begun to actively investigate Lenovo, and at the same time, the research efforts of domestic and foreign analysts have increased. Among them, CLSA, Everbright Securities, Citigroup, Bank of Communications International, Bank of America, Pacific Securities, orient securities, etc. Lenovo's share price target has been raised in succession, and it is suggested to "buy".

On March 4th, more than 10 heads of investment and research departments, star fund managers and chief analysts from Harvest, Huaxia, Yin Hua, Guo Fu, CITIC Securities, Galaxy Securities and Bank of China Securities conducted in-depth research on Lenovo.

Lenovo's various changes and achievements driven by the 3S strategy, especially the organizational adjustment details and annual development goals to be announced on April 1 day, will become the key support for observing and reassessing Lenovo's growth model. This is another important purpose of Lenovo's decision to land in science and technology innovation board for financing.

What's more, after the three major international rating agencies (Fitch, Moody's and Standard & Poor's) released the credit rating report of Lenovo Group in the second half of 2020 and expressed optimism, at the beginning of this month, Fitch upgraded Lenovo's long-term default rating (IDR), advanced unsecured rating and bill rating of $654.38 billion from BBB-, with a stable outlook.

In the report, after fully affirming Lenovo's financial situation since its outbreak, Fitch particularly emphasized the new trend of organizational structure upgrading, saying that it "made new preparations" and praised the company's "strong management execution, efficient and flexible mixed supply chain model, and strong growth of software and services".

In quark's view, these changes and reactions convey the confidence of Lenovo's strategy, mode, road and culture.

An organization's self-confidence is not only reflected in its growth, but also in its macro-topic setting and discourse style.

It is still half a month before April 1 announces the details of structural adjustment. Then, Lenovo will hold a swearing-in meeting for the new fiscal year, and Yang will definitely make a clearer voice around the 3S strategic efficiency cycle.

The turning point has come, and Lenovo Group of 202 1 is really worth looking forward to.