Here’s what I got wrong

Several months ago, I shared my predictions on the long-term technology impact of COVID-19, covering the need for flexibility in IT systems and policies, complexities in security, device-as-a-service becoming mainstream, and smart data management.

While these predictions have more-or-less become realities today, I wasn’t entirely spot-on.

What I did not account for was the immense speed at which businesses are adopting new technologies and ways of working, especially with their IT partners.

Indeed, the challenges of navigating the pandemic have brought about a sense of urgency for businesses of all sizes and industries.

Here are some surprising lessons that I have gleaned from the past few action-packed months:

The pivot to IT Services is faster, and broader, than I anticipated

There has been a dramatic transition to IT Services that span hardware and software from providers capable of being trusted advisors to help customers navigate their technology decisions.

Why IT Services? They help businesses increase their productivity, save time by enabling more secure and seamless collaboration, and help defend against business-critical security events – or in short, ensuring that they continue to thrive. Our partnership with a large food delivery service provider was one example of that approach in action.

We think it’s also the right approach for small and medium-sized businesses, who are often faced with the perennial struggle of maximising limited resources while getting the highest return on investment. IT Services like this help to alleviate stress in getting systems to work effectively for them, so they can ultimately do more with less.

I have also seen a wider variety of organisations adopting IT Services, like Bellarine Community Health, a healthcare provider in Australia.

The pivot to IT Services was so great that our overall Software and Services revenue in first quarter of our fiscal year 2020/2021 (April to July) grew 38% year-on-year, accounting for around 7.6% of total group revenue. It's also the catalyst for our overall transformation as a company.

The value of premium IT support is being recognised despite the cash crunch

Sometimes it’s hard to make a case for premium IT spend, especially now, when businesses are closely watching cashflows. Yet we’ve found an increasing number of our customers activating Lenovo Premier Support (our top level of customer support service) – and data shows that the ROI is tangible for them.

CIOs are thinking like CEOs. Where IT was once viewed as a supporting functioning and a cost centre, it has now evolved to enable businesses to overcome challenges, expand at scale, and give businesses a competitive edge. IT is an investment, with its own P&L and ROI, and CIOs now play an even more crucial role in making these key decisions to chart business direction and growth.

One of the metrics we use to track customer satisfaction is Net Promoter Score, which defines the likelihood that customers will recommend the product or service to others. When we looked at customers who activated Lenovo Premier Support, we found that Net Promoter Scores increased by at least 11% over just two quarters.

Consumers, as well as businesses, are adopting services

Consumers are also leveraging services. The Lenovo Japan team recently introduced SUGU-GE スグゲ – meaning “gaming right away” – a new-to-market subscription service that provides access to the latest gaming PCs, free games and full IT support, allowing users to take the device for a spin before purchasing. Home-grown innovative concepts like this are what we believe will challenge the industry's status quo and open new ways for consumers to think about their tech.

When it comes to IT Services at Lenovo, we're all in. It’s what marries hardware and software into a solution that will not just future-proof but propel businesses further. As the business climate continues to be extremely challenging, IT Services is one area where we can be sure there is going to be a strong ROI, for both Lenovo and our customers.