Lenovo Reorg Splits Company Into Four Groups

On the heels of its $2.3 billion acquisition of IBM's x86 server business, Lenovo will be reorganizing into four distinct business groups that will oversee Think-branded PCs, mobile, cloud services and its burgeoning enterprise server business, the company said. The move is yet another sign the Chinese PC maker is on the fast track to remake itself in a post-PC push to compete more aggressively with Hewlett-Packard, Dell and Cisco.

Lenovo said the move, which the company said is set to take effect April 1, is aimed at creating structure and will give it a competitive advantage as the company grows. Regulatory approval of Lenovo's purchase of IBM's x86 server business is expected to take six to nine months.

"It makes sense for Lenovo. As the company grows bigger and increases its product offerings, it needs to develop distinct game plans for each division. This might help prevent Lenovo from becoming as disorganized as the Federal Government," said Joe Lore, sales director of at Sunnytech, a Lenovo partner based in Woburn, Mass.

[Related: What Could The IBM-Lenovo Deal Mean For The Server, Storage Industries? ]

Although certain details still need to be worked out, a Lenovo spokesperson in a statement to CRN said the new structure will allow the company to focus on key market opportunities and streamline internal processes.

"Functional realignment is still to be determined. ... The new structure permits us to address the four key areas of technology market opportunity in a systematic and focused way. It will also allow us to function much more smoothly internally -- improving cooperation, eliminating internal competition, and maximizing efficiencies and synergies across our organization."

As such, the reorganization will look as follows:

* Lenovo's PC Business Group will be led by Gianfranco Lanci, who is currently head of Europe, Middle East and Africa business. Lanci will now oversee all of Lenovo's Think brands.

* The Mobile Business Group will be led by Liu Jun, who currently leads the Lenovo Business Group. In his new role, Jun will run Lenovo's smartphone, tablet and smart TV business.

* Gerry Smith, who currently leads Lenovo’s Americas Group, will oversee the Enterprise group that includes server and storage.

* Lenovo's Ecosystems and Cloud Services group will be headed by George He, Lenovo's senior vice president who currently serves as chief technology officer. He's new role will include developing a strategy for monetization and ecosystem expansion especially in China.

Lenovo said the new business structure replaces its old business structure that consisted of two business groups, in which one group focused on PC and mobile products while the other was centered on the business and enterprise group.

The company said Jun and Smith have been promoted from senior to executive vice president. CFO Wong Wai Ming has also been promoted to executive vice president. And Lanci has been promoted to executive vice president and chief operating officer. The company also said Peter Hortensius, who is in charge of Lenovo's office-PC business, will become chief technology officer, replacing He.

In a prepared statement, Yang Yuanqing, Lenovo chairman and CEO, said that given the company's momentum, "now is the perfect time to prepare for the next phase in our growth. To do this, it is necessary to build new businesses and new pillars for our company. We will leverage our strength and competitive advantage in our traditional PC business, while also creating strong, profitable new businesses that can capture the growth opportunities in the market."

PUBLISHED JAN. 28, 2014