Lenovo Logistics System
ABSTRACT

As Carly Fiorina (the Former CEO of Hewlett-Packard) said in her memoir, the most two important and main things in this modern century were Globalization and Informationization, and what she did for HP in her six years tenure were to propel HP into the internet age and the global market.

Lenovo followed the same notion.  They re-structured their Logistic Management System by internet network based MICS (Management Information & Communication System) from 2000 until now, and taken-over the IBM’s PC Business to enter the global market in 2004.  These two business behaviours related to two organization tasks   Strategic Changing Management and Strategic Re-engineering.

For any organization, they need changes to acclimatize themselves to the changing internal and external environments.  There are a lot of changing approaches and methods, Merger and BPR (Business Process Reengineering) are two majors of them.  Both of them are in order to fit with the changes, but merger is based on the take-over and extending of the business scope or scale of the organization; and BPR is based on digging the potential, optimizing process or structure, and improving the efficiency of the business itself.  Some large companies consolidated their power and status by merger with their competitors, cooperators, or relative industries; however, more of companies survived the economical crisis by improving themselves.  Most of times, the mergee will copy their successful experience into the merged company.  But sometimes, the merger also will be followed with a BPR to combine their businesses, structures and cultures, optimize incongruous processes, and reduce the repeated departments or bureaucracies

After Lenovo took the BPR in 2000 and the Merger in 2004, they are still continuing the reengineering to combine the different country cultures and organization cultures, they not only copy their supply/ manufacture process to the new company, but also learn the management method and purchase channels from previous IBM PC business, which both are the advantages from these two companies respectively.

In this dissertation, I will try to use the cases of Lenovo to study the related theories and methods of the Strategic Changing and Strategic Re-engineering, including the Merger, BPR, and Continuing Reengineering.  At the same time, I will try to find out the practical problems and the resolution in the Lenovo’s growth within this case study.

chapter 1 – Introduction (
1.1  Introduction
1.2 Background of the Study

1.3 Problem Statement

1.3 Objectives of Research

1.4 Significance of the Study 

1.5 Scope and Limitations

Chapter 2 – Literature Review

2.1 Introduction

2.2 Search Process

2.3 Theoretical Literature

2.3.1 IT, IS and CBIS

2.3.2 Business Pressures, Organizational Responses and IT Support#p#分頁標題#e#

2.3.3 MIS and Business Value — the Benefits of MIS

2.3.4 Business Process Reengineering (BPR)

2.3.5  Country Culture

2.3.6  PEST

2.3.8  Mackenzie’s 7S Model

2.5 Summary

Chapter 3 – Methodology

3.1 Introduction

3.2 The General Perspective

3.3 The Type and Subtype of Research

3.4 Research Approach

3.5 The Research Context

3.6 The Research Participants and Resource

3.7 Instruments Used in Data Collection

3.8 Procedures Used

3.9 Data Analysis

3.10 Summary of the Methodology

Chapter 4. Presentation of Case Study Organization – Lenovo & IBM

4.1 Lenovo

4.2  IBM

4.3  Acquisition

4.5 Changes by Merger

4.4 BPR Based on MICS System

Chapter 5. Case Study Findings

5.1  Challenge in Merger

5.2  Analysis the Changing Environment and Lenovo’s Changing Management by PEST

5.2.1  The Main Problems of The Acquisition

5.2.1.1  The Problems of Policy

5.2.1.2  The Problems of Economic Benefits

5.2.1.3  The Problems of Technology

5.2.1.4  The Problems of Society

5.2.1.5  The main competitors of the Lenovo Group

5.2.2  Lenovo Group’s Strategic Solutions

5.2.2.1 How Solve the Problems of Policy?

5.2.2.2  How Solve the Problems of Economic Benefits?

5.2.2.3 How Solve the Problem of Technology?

5.2.2.4  How Solve the Problem of Society?

5.2.2.5  Lenovo Group’s strategy of competition

5.2.3  Conclusion of PEST Changing Analysis

5.3  BPR Lenovo’s new Logistics System by MICS

5.3.1  “speed is too important in war”

5.3.2  Efficient Supply Chain Management (SCM)

5.3.3  Establish a Morden Management Information System (MIS)

5.3.4  Logistics System driven by Information System

5.3.5  Fast Response and Flexible Production

5.3.6  Cooperation Working, Realize Win-Win 

5.3.7  Clients’ Satisfaction 

5.3.8  Conclusion of BPR Changing Analysis

5.4  The Different Cultures & Culture Change

5.4.1 The Country Culture Styles – China and US

5. Leadership Style

5.4.2  The Organizational Culture Styles –Lenovo and IBM

5.4.2.1  Old Lenovo’s

5.4.2.2  IBM’s

5.4.2.3  New Lenovo’s

5.4.3  The Culture Change in Lenovo

5.4.4  Mackenzie’s 7S Model in Lenovo’s Cultures Change

5.4.4.1  Staff

5.4.4.2  Shared Values

5.4.4.3  Strategies

5.4.4.4  Style

5.4.4.5  Structure

5.4.4.6  Skill

5.4.4.7  Systems

5.4.5  Results of Lenovo’s Change#p#分頁標題#e#

5.4.6  Conclusion of Culture Changing Analysis

Chapter 6.  Summary, Conclusion and Recommendations

6.1 Aims and Objectives Revisited

6.2 Research Question #1

6.6  Research Question #5

6.8  Suggestions for Further Research

Chapter 7.  Recommendations

Reference

1. Curley, M 2004, “Managing Information Technology for Business Value”, Intel Press, Chapter 1, pp.12
2. http://cio.ccw.com.cn, 08 May 2001, “Lenovo’s Logistic Flow: Information System bring higher efficiency.” (cio.ccw.com.cn)

3. Turban, E & McLean, E & Wetherbe, J 2001, “Information Technology for Management: Transforming Business in the Digital Economy” (3rd Edit), Chapter 1.2, pp.10-22

4. Boddy, D 2004, “Managing Information System: An Organisational Perspective”, FT Prentice Hall

5. Dessler, 2000, “Human Resource Management (8th Edition)”, Personal Education, Prentice Hall Inc., Chapter 8 – “Managing Organizational Renewal”,

6. Prof. Dr. Fleisch, E 2008, “Business Process Reengineering (in Theory) - MIS Lecture 9”, Department of Management, Technology, and Economics (D-MTEC), ETH Zürich

7. Datamonitor, 27 June 2008, “Lenovo Group Limited: Company Profile” (www.datamonitor.com), pp.4-8  

8. AsiaInfo Services, 2 June 2003, “Lenovo Announces 2002-2003 Annual Reports”

9. China Daily/Agencies, 9 Dec. 2004, “Lenovo buys IBM PC Business”

10. Glatthorn, A & Joyner, R 1998, “Writing the Winning Thesis or Dissertation: A Step-by-Step Guide” (2nd Edition), Corwin Press