Lenovo advances regional service-led transformation

Lenovo advances regional service-led transformation

Ivan Cheung, regional general manager at Lenovo Central Asia-Pacific, said at the Lenovo Roundtable 2022 on January 20 that the company is transforming from a device company to a solutions and services provider to empower CIOs and IT decision-makers to address the new reality when IT becomes growingly important in all businesses.

Cheung added that the role of CIOs has transformed dramatically. In addition to managing the purchase and implementation of technology, CIOs are now business-builders tasked with driving the complete technology value chain.

He cited a PwC report saying that 93 per cent of CIOs see themselves responsible for company-wide strategies – from advancing environmental, social, and governance (ESG) goals, to future-proofing the business – CIOs are increasingly taking ownership of more business outcomes and held accountable for more boardroom priorities.

In line with this, as part of a reorganisation process earlier in 2021, Lenovo established a solutions and services group (SSG). Serving as the connective tissue between all of Lenovo’s innovative technology offerings, SSG’s offerings are designed to provide CIOs with easier ways to manage IT so that they are freed up to focus on more strategic imperatives.

Lenovo is now also advancing its services-led business in Asia-Pacific by introducing TruScale, a new everything-as-a-service offering. Bringing hardware, software, and services together, TruScale provides the flexibility for CIOs to simplify technology decisions under a single, scalable, pay-as-you-grow solution.

Leveraging global perspectives coupled with local insights and cross-industry expertise, IT decision-makers are supported with solutions that meet their needs and solve key pain points for their business.

For example, fully managed infrastructure solutions provide the advantages of an on-premises cloud environment along with peace of mind around data management in a hybrid environment.

“By fully integrating our as-a-service solutions under TruScale, Lenovo is well positioned to empower our customers in future-readying their IT infrastructure from the pocket to the cloud to address more complex technological challenges,” Cheung said. “Our goal is to enable CIOs across Asia-Pacific to take up the mantle of leadership that they are called to, innovate for the future, and drive tangible business results. We expect to continue driving strong vertical growth across manufacturing, education, retail, and more.”

To ensure that this transformation can be successful, Cheung elaborated that Lenovo is focusing on both employees and customers by enhancing its own capability, including proper training for employee as well as hiring more external talents, and showing customers what we can really deliver.

With the service-led transformation, Lenovo’s TruScale is streamlining working processes for the ASEAN government ministry, helping drive digital transformation for Taiwanese taxi drivers, enabling hybrid learning for students in Hong Kong, and transforming food and beverage in the Philippines with as-a-service solutions.

Looking at 2022 and beyond, the group will focus on vertical growth and an extensive customer base in PCs and new ESG opportunities.

Research shows the as-a-service market is growing at four times the overall IT services total addressable market. The growing importance of the services market is also corroborated by SSG’s performance to date – Lenovo’s earnings reflected strong profitability and growth for SSG.

In Vietnam specifically, Cheung said the new IT market will continue its impressive pace of growth. Customers will seek more expansive IT support as work-from-home becomes work-from-anywhere. And security, especially in edtech, will grow in importance.

“We are poised to address this with the consolidation of our as-a-service offerings with Lenovo TruScale, which is enhancing our capabilities to reach new customers and serve the increasing demand,” Cheung explained.

The demand for ESG-related services is also on the rise. Research from Simon–Kucher & Partners shows that 50 per cent of consumers consider sustainability an important purchase criterion and differentiator. As one of the first PC manufacturers to bring this type of carbon compensation service to the IT industry, Lenovo developed its CO2 Offset Service and Asset Recovery Service to help customers meet their environmental goals and mitigate data security risks, among others.

To bring channel partners the advantages of this services-driven vision and help them tap into the growing regional market for solutions and services, Lenovo has also introduced Lenovo 360, a new channel framework.

Lenovo delivered a record high in revenues and net income in its fiscal year quarter from July to September. Its group revenue up 23 per cent on-year to a new record of $17.9 billion, while its net income rose 65 per cent on-year to an all-time high of $512 million.