2012 LENOVO CONFIDENTIAL. ALL RIGHTS RESERVED. 2

Lenovo Today: A Multi-Billion Global Company

1984 founded in China

− 11 founding engineers

− US$25,000 original investment

US$ 29 billion in revenue

13+% global share

Business presence in 160+ countries and regions

Rising global reputation

Today

− US$29 + billion in revenue

− 27,000+ employees

− Customers in 200+ countries

Success in Globalization

US$2.3 billion in revenue

Less than 3% global share

Doing business in China only

Nearly none Brand visibility outside China

2012 LENOVO CONFIDENTIAL. ALL RIGHTS RESERVED. 3

Business Value Chain & IT Solution

PLM

PTC Winchill

SAP MDM, BI/BO, HANA

SAP Netweaver

CRM ERP BPC

SAP CRM/

JDA

ecomm

SAP SRM SAP ECC SAP CRM SAP BPC

CRM

JDA-planning

ECC/Pro-M LES/GTSSAP

SRM Planning

Manufacturing Global Logistics

ERP

SAP ECC

Business

Function

Core

IT Solution

Product

PG Supply Chain Service Marketing & Sales Finance

Global consolidation

Reporting

2012 LENOVO CONFIDENTIAL. ALL RIGHTS RESERVED. 4

Legend Strategics IBM Legacy Partner LC Legacy # Co-innovation

Order capture Service Request

R-Model Channel Lenovo Employee T-Model AWSP/FSP CC Agents Internal/External Users

Frontend Partner

CNET

Trade One

Geo - Link

Bloomberg

CIT

Public Web/ Outlets EP (Service) IC WebClient WenUI

Inter woven

Channel Mgmt

JDA eComm

Vendavo

SAP CRM (7.0)

FS DPM

Channel Mgmt

CC

eSupport

PEW

Finance Partner

BANKS

3rd Payment

Paymetric

IGF

CYBERSOURCE

ODS

HR

PRC-CHM

CHM

Basic Function

Mkting

SAP BPC (MS 7.0)

NOF

SAPF

Orders (EDW/ B2B/

Pcom…) Hyperion

SAP ECC (6.0)

SD MM PP

WM LES HR FI/CO

FSCM

I2 Planning

MRP DF VMI

CSE FP DS

Sabrix

SAP GTS (7.1)

SAP SRM (5.0)

ProM

Procurement Partner

Suppliers

OEM

GL Partner

Carries

Custom Broker

3PL

Costing

iBase

Reporting

SAP BO (3.1)

SAP BW (7.3)

SAP BWA (7.2)

LC Mgmt Reporting

2

3

Winchill PLM

Think Idea

SFA Order

Catalog

Biller direct

Parts Sales

TTE

MRM TPM FM

Middleware

Middleware

Account

LE Web B2B LOPS Web UI

SAP CRM (7.0)

1 Marketing SAP CRM (7.0)

LENOVO E2E APPLICATION ARCHITECTURE W/O M&A

2012 LENOVO CONFIDENTIAL. ALL RIGHTS RESERVED. 5 Page 5

LENOVO E2E APPLICATION ARCHITECTURE (INTEGRATED VIEW)

2012 LENOVO CONFIDENTIAL. ALL RIGHTS RESERVED. 6

Lenovo system (“strategic”) IBM legacy system (Since 2005)

China Mature markets

(CA, Japan, ANZ)

Emerging

markets (All)

End-to End Global Service

Order Fulfillment(Manufacturing planning / Factories)

West. Europe

Global Logistics

Latin America

Global Finance and Consolidation

Opportunity to Contract / Order Management / Sales Force Automation

Channel Management NEC system (Since 2010)

Medion system (Since 2011)

MIDH

system (Since 2011)

1

Order Fulfillment

Global Logistics

Finance

Uni-D

ODM

2 Hefei JV

system (Since 2011)

Off-shore

Finish goods Finish goods

Order

Fulfillment

Global Logistic

Finance

Medion Process

3 Sales

(Lenovo

Prod)

Sales Mgmt

Channel Mgmt

NEC

Process

Order

Fulfillment

Global Logistic

Finance

MIDH

Process

2

3

LENOVO E2E APPLICATION ARCHITECTURE W/ M&A

2012 LENOVO CONFIDENTIAL. ALL RIGHTS RESERVED. 7

HANA CO-INNOVATION @ LENOVO

Pain Point

Solution

Benefit

Pipeline Reporting New BI Solution CRM on HANA

• No real time information for real-

time decision making

• Real-time decision making and

response time to market

• High volume data support for

Lenovo GSC

• Response time of detail

operational reports

• Efficient and accurate reports based

on the high volume data

• 30 times improvement on performance.

• Better supply strategy BI platform

• Sales Efficiency

• Productivity

• Agile – real-time decision making

• Significant improvement on TPM,

Channel Management

• Real-time interactive reporting

• Low TCO with reduced layers

2012 LENOVO CONFIDENTIAL. ALL RIGHTS RESERVED. 8

Budget Posting and

Maintenance

Fund Maintenance:

Assign Budget Posting to Fund,

Assign Fund Plan to Fund

HANA DB Non-HANA

DB

50.139s 1.287s

Time out (>1800s) 2.474s

Response time Response time

Comparison results

47X faster on HANA

>727X faster on HANA

Fund Plan

Maintenance and

release it

Budget Posting

Maintenance

Fund Maintenance

and assign Budget

Posting to Fund,

Assign Fund to Fund

Plan

TP Maintenance

based on Fund

Plan

A typical business process for trade promotion Steps that are most performance intensive

CRM ON HANA VALIDATION (1)

2012 LENOVO CONFIDENTIAL. ALL RIGHTS RESERVED. 9

HANA DB Non-HANA

DB

115.593s 75.267s

157.314s 4.69s

Response time Response time

Comparison results

1.5X faster on HANA

33X faster on HANA

Price

Protection

Sell-out

Process

Claim

Process

RTCM

Search

Channel Management Key

Business Processes

Steps that are most performance intensive

165.414s 148.449s On Par

346.804s 7.763s 44X faster on HANA

CRM ON HANA VALIDATION (2)

2012 LENOVO CONFIDENTIAL. ALL RIGHTS RESERVED. 10

Solution Design Principle – Current Mobile Apps

SAP BW 7.30 SP06

Easy Query

SAP HANA 1.0 SPS3 Rev34

Attr. View

Analy. View

Calc. View

SAP CRM

7.0

BAPI

Gateway (Adapter) IWBEP SP4

SAP NetWeaver Gateway (HUB) 2.0 SP4

SAP NW 7.02 >= SP9 / IWBEP SP4 + IWFND SP4 + IWHDB 1.0 / HANA Client

OData Protocol

SAP Afaria

7.0

SAP

So

luti

on

Man

age

r P

roje

ct M

anag

emen

t /

Solu

tio

n D

oc

End

to

En

d T

raci

ng

CRM Mobile Sales Assistant

Mobile Finance Dashboard

Global Supply Chain Report

OData Protocol OData Protocol

Business - Usability - Business user oriented - Simplification – no/limited training

Development Workbench - Scalability - Portability

Management Afaria - Security - Deployment

Low touch on - CRM / BW / ECC … API

Agile Implementation

2012 LENOVO CONFIDENTIAL. ALL RIGHTS RESERVED. 11

Sample of Mobile Application in Lenovo

2012 LENOVO CONFIDENTIAL. ALL RIGHTS RESERVED. 12

Sample of Mobile Application in Lenovo

2012 LENOVO CONFIDENTIAL. ALL RIGHTS RESERVED. 13

Sample of Mobile Application in Lenovo

2012 LENOVO CONFIDENTIAL. ALL RIGHTS RESERVED. 14

Agile Implementation Approach

• Rapid Prototyping Scalable platform provided by SAP (SDK,API)

• Iterative Verification,

join go to market

1

2

3

• Design-thinking to fully meet

the dynamic requirements

from this group.

2012 LENOVO CONFIDENTIAL. ALL RIGHTS RESERVED. 15

ENGAGEMENT MODEL

Impl. Optimize Roll out Develop Design Invent

SAP

Customer

PIL

…

SAP

Lenovo

Rapid Prototyping

MaxAttention Program:

- AGS Orchestrating

- Lenovo – Business App

- SAP development – API & mobile

development workbench

Co-innovation

2-3 weeks -> Days

Verification Prototype Design

Thinking WS

2012 LENOVO CONFIDENTIAL. ALL RIGHTS RESERVED. 16

Non SAP

HANA

Solution Design Principle - Future Mobile Apps

SAP BW

Easy Query

SAP HANA

Attr. View

Analy. View

Calc. View

SAP CRM

BAPI

Gateway Adapter

SAP NetWeaver Gateway (HUB)

SAP Afaria

SAP

So

luti

on

Man

age

r P

roje

ct M

anag

emen

t /

Solu

tio

n D

oc

End

to

En

d T

raci

ng

Mobile App Development Workbench

Offline Synchronization

Collision Handling / MBO

SAP Mobile Lib

Off.

Cache

ODATA / JSON lib

Mobile Analytics SDK

Charting Lib

Micro Cube

Notification

OData / JSON

SAP ECC

BAPI

Gateway Adapter

…

Low touch on - CRM / BW / ECC … API

Agile Implementation

HTML5 Mobile Lib SUP SDK

MAKit

To-be-ready

HANA HANA “unstructured Data” HANA

Development SDK - Usability - Development scalability - Portability

Management - Security Afaria - Deployment