Global tech hardware giant Lenovo is transforming its business towards solutions and services to capitalise on the "everything-as-a-service" trend.
"Technology and innovation continue to disrupt and reshape the business landscape. The role of chief information officers [CIOs] has changed dramatically, with more time spent on transformation and how to make sure business strategies work," Ivan Cheung, regional general manager of Lenovo Central Asia-Pacific, said at a virtual regional media roundtable.
According to global consulting firm PwC, 93% of CIOs surveyed see themselves as responsible for company-wide strategy, from advancing environmental, social and governance (ESG) goals to future-proofing the business, he said.
To respond to the demand from CIOs and decision makers, Lenovo is shifting from a devices company to a solutions and services provider, offering simplified technology under single, scalable and pay-as-you-grow modes, said Mr Cheung.
As part of its reorganisation starting early last year, Lenovo established a solutions and services group (SSG) and embarked on its new portfolio TruScale, which supports the everything-as-a-service model combining hardware, software and services together for CIOs.
The approach accommodates CIOs in procurement, allowing more time for them to develop innovations and drive tangible business results, he said.
"We expect to continue driving vertical growth across manufacturing, education, retail and global companies that offload cashflow burden for organisations," said Mr Cheung.
Robotics, artificial intelligence, immersive virtual reality and augmented reality solutions should support hybrid work and education as well as smart cities, he said.
According to major IT market researchers Gartner, IDC and Lenovo Market Intelligence, the as-a-service market is growing at four times the rate of overall IT services.
Lenovo's operating performance in the second quarter of the 2021/22 fiscal year was buoyed by SSG business, which reported revenue of US$2.5 billion, up 30% year-on-year.
Demand for ESG services is also on the rise, according to Mr Cheung.
Simon-Kucher & Partners Global Sustainability Study 2021 found 50% of consumers consider sustainability an important purchase criterion and differentiator.
He said as one of the first PC manufacturers to bring carbon compensation services to the IT industry, Lenovo developed its CO2 Offset Service as a solution for customers to meet their environmental goals.
It also introduced Lenovo 360 new channel framework that enables partners to have easy access to the firm's entire products and services.
Mr Cheung acknowledged Lenovo's transformation is not an easy journey and will take time.
"We are investing in R&D to enhance our capabilities as well as for collaboration and acquisition," he said.
"To change how both employees and customers see us, I think the No.1 priority is to ensure this transformation is successful."