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Documents - Tips - Group 1 Lenovo
Documents - Tips - Group 1 Lenovo
of IT
ITSP End Term Project
Group 1
Deepak Arora
Nikhil Gurg
Mohit Malik
Neerav Sachdeva
Group 1/ITSP End Term Project 2014
Table of Contents
Timeline of Lenovo..................................................................................................... 3
Business Strategy....................................................................................................... 3
Value Dimension of Lenovo........................................................................................ 4
IT Strategy aligned to Business Strategy....................................................................4
SWOT Analysis for Lenovo.......................................................................................... 6
Dynamic Resource Model........................................................................................... 7
Mcfarlans Strategic grid............................................................................................. 7
Porter 5 forces analysis.............................................................................................. 8
Balance Score Card for Lenovo................................................................................... 9
Creating Strategy Map............................................................................................ 9
Creating Scorecard Measures................................................................................ 13
Benefits of Acquisition of ThinkPad...........................................................................17
Conclusion and Recommendations...........................................................................17
References................................................................................................................ 17
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Group 1/ITSP End Term Project 2014
Timeline of Lenovo
History of Lenovo:-
1984 The Lenovo was established in 1984, with an initial capital outlay of only
RMB200,000.
1996:-Legend becomes the market share leader in China for the first time.
Personal Computers: Lead in PCs and be respected for our product innovation
and quality.
Culture: Become recognized as one of the best, most trusted and most well-
respected companies to work for and do business with.
Business Strategy
Business model built on innovation, operational efficiency and investment in
emerging markets.
Sustaining a Competitive Advantage:-By increasing market share internationally
through innovation and strategic acquisitions.
Protect and Attack Strategy
Lenovo has failed to meet a key objective of the merger: leveraging the
combined strength of the two companies to grow volume and market share.
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Group 1/ITSP End Term Project 2014
Information and tools for Managers so that they can align the strategy
globally.
Integrated systems so that they can use the information and deliver the
quality and service consistent.
Investments for R/D so that they can cut down the costs.
IT Contribution
Innovation Strategy
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ThinkPad T42 Innovation: - Field agents to receive new case information packets and
provide case status updates via the Internet. Scanned files are now uploaded into a
searchable database that any authorized user can access from the offices or
remotely through a Virtual Private Network connection. It saves huge amount of
costs.
Operations Excellence
ThinkVantage Technologies
Distribution Network
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Group 1/ITSP End Term Project 2014
JDA Cloud Services, Lenovo has achieved faster deployment, rapid time to
value, investment protection and an improved cost structure
Weakness
Opportunities
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Group 1/ITSP End Term Project 2014
Threats
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Group 1/ITSP End Term Project 2014
Strategic
Factory
Lenovo
Turnarou
Support
nd
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Group 1/ITSP End Term Project 2014
1. Strategy Mapping
2. Creating Scorecard Measures
3. Implementing Scorecard
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Group 1/ITSP End Term Project 2014
STRATEGY MAP
Busin Deliver required Supply quality products
ess capabilities to support the and services worldwide
Strate changing business through use of technology
gyMission:
Mission: requirement.
Worlds
Worlds Vision:
Vision: Personal
Personal
Greatest
Greatest Devices
Devices people
people
personal
personal Increase
Increase Broaden
Broaden inspired
inspired to
to own
own
technology
technology firm
firm business
business Revenue
Revenue
orders
orders Mix
Mix
Technology
Technology and
and
Market
Market Leader
Leader
FINANCIAL
Increase
Increase customer
customer Cost
Cost and
and Time
Time Increase
Increase Customer
Customer
loyalty
loyalty through Reduction
through Reduction in
in models
models Responsiv
Responsiv
innovative
innovative maintenance
maintenance eness
eness
solutions
solutions
Quality
CUSTOMERS Checks
Leading
Leading edge
edge New
New Rapid
Rapid Partner
Partner
manufacturin
manufacturin Technology
Technology Customer
Customer Collaboratio
Collaboratio
g
g Drive
Drive Response
Response ns
ns
INTERNAL
PROCESSES
Skill
Skill Knowledge
Knowledge Employee
Employee Diversified
Diversified
developmen
developmen Sharing
Sharing retention
retention workforce
workforce
tt
LEARNING AND
GROWTH
It defines the Mission, Vision, Business Strategy and the effects of four
perspectives of balance scorecard are as following to obtain the output for
business strategy.
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The following four images describe how the business strategy can be
obtained using the four perspective of the balance score card.
Leading
Leading edge
edge New
New Rapid
Rapid Partner
Partner
manufacturin
manufacturin Technology
Technology Customer
Customer Collaboratio
Collaboratio
gg Drive
Drive Response
Response ns
ns
INTERNAL
PROCESSES
Skill
Skill Knowledge
Knowledge Employee
Employee Diversified
Diversified
developmen
developmen Sharing
Sharing retention
retention workforce
workforce
tt
LEARNING AND
GROWTH
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Leading
Leading edge
edge New
New Rapid
Rapid Partner
Partner
manufacturin
manufacturin Technology
Technology Customer
Customer Collaboratio
Collaboratio
gg Drive
Drive Response
Response ns
ns
INTERNAL
PROCESSES
Skill
Skill Knowledge
Knowledge Employee
Employee Diversified
Diversified
developmen
developmen Sharing
Sharing retention
retention workforce
workforce
tt
LEARNING AND
GROWTH
Leading
Leading edge
edge New
New Rapid
Rapid Partner
Partner
manufacturin
manufacturin Technology
Technology Customer
Customer Collaboratio
Collaboratio
g
g Drive
Drive Response
Response ns
ns
INTERNAL
PROCESSES
Skill
Skill Knowledge
Knowledge Employee
Employee Diversified
Diversified
developmen
developmen Sharing
Sharing retention
retention workforce
workforce
tt
LEARNING AND
GROWTH
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Group 1/ITSP End Term Project 2014
Leading
Leading edge
edge New
New Rapid
Rapid Partner
Partner
manufacturin
manufacturin Technology
Technology Customer
Customer Collaboratio
Collaboratio
gg Drive
Drive Response
Response ns
ns
INTERNAL
PROCESSES
Skill
Skill Knowledge
Knowledge Employee
Employee Diversified
Diversified
developmen
developmen Sharing
Sharing retention
retention workforce
workforce
tt
LEARNING AND
GROWTH
Once the strategy mapping has been made, it is well defined for making the
balance scorecard as strategy mapping is basically a blueprint which defines
the pathway from each perspective to finally obtaining business strategy.
1. Financial
2. Customer
3. Internal Process
4. Learning and Growth
For each of the perspective objectives are defined and for each objective there can
be various measures to check if that objective has been completed or not. Each
measure consists of one to one mapping with a specific target. Each of which can be
obtained through various initiatives.
The four perspective, their objective, measure, target and initiatives are as
following,
A)Financial Perspective
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B)Customer Perspective
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1. No of 1. X% increase
1. Collaboration
Develop new innovations in innovations
with
technology made.
2. Milestone institutes
space 2. New SCA achieved in SCA and
resources found resources Universities.
2. Leveraging
Increase Customer Attain X% Information
Customer Satisfaction customer Expert
Satisfaction Survey satisfaction Systems
3. X% 3. Increase
1. No of Discount customer
collaborati Budget focus of sales
on with organization.
Customer 4. X%
Retention partners.
market 4. Efficient
2. Sales Vertical Supply chain
Discounts penetratio system for
n. Retention
and
Responsiven
Responsivenes X% reduce in
Delivery in time ess
s to Customer complaints
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Group 1/ITSP End Term Project 2014
ty for
standardiz
ation.
7. Internal
Increase Surveys for
Training Cost for improving
productive X week training
Manufacturing manufactu
efficiency at per quarter
Floor Crew ring
low cost
capacity.
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3. At least X
1. No of % training
training hours.
hours per 5. Hire Key
Employee 4. Cross Technical
annum.
education and training of Employees.
skill level 2. Employee managem
skill ent and 6. Improve
assessme technical Employee
nt. knowledg skills and
e work
conditions.
Employee Employee 7. Celebrate
Achieve more
satisfaction Satisfaction and reward
than X% in FY
scores Surveys individuals.
No of idea 8. Tie
Knowledge At least X incentives
created and
management number per to idea and
published in
systems annum qualities.
system
9. Mentorship
Number of programs.
Achieve X
Diversified cultural
activity per
Workforce activities
month.
occurred
Thus above was the entire balance score card for Lenovo.
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References
http://www.lenovo.com/in/en/
http://en.wikipedia.org/wiki/Lenovo
http://en.wikipedia.org/wiki/ThinkPad
http://news.lenovo.com/article_display.cfm?article_id=1755
http://www.bbc.co.uk/news/business-25956864
http://www.computerworld.com/s/article/9245907/Lenovo_s_Motorola_IBM_server_bu
ys_will_likely_get_strict_U.S._security_review
http://www.fool.com/investing/general/2014/01/27/why-lenovo-is-buying-ibms-
server-business.aspx
http://www.china.org.cn/english/NM-e/115844.htm
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