Friday, July 8, 2011

China's Baidu restructures: better late than never

Baidu, the largest Chinese search giant, announced a restructuring plan of its business units including sales, operations, user products , commercial products, and new technologies such as cloud computing and mobile.

The Company said it will implement an executive rotational program in an attempt to spur innovation and efficiency. This is the biggest ever organizational restructure since its founding in 2000.

"I always said that technology re-invests itself every 18 to 24 months", asserts Rachid Sefrioui, founder of Finatech, a regional technology leader with 700 employees, "and therefore a company needs to re-adjust its organizational chart every 24 to 36 months to re-invigorate executives and boost productivity."

According to Baidu, after the reorganization the search company will reach new levels of productivity in operations, increase sales, and better coordinate synergies between its divisions.  Reorgs often spur fresh gusts of innovation in processes but also in customer acquisition, new products and new markets.