Here’s How An Experienced COO Can Help Baidu

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Recently, Baidu (NASDAQ:BIDU) announced that it had appointed an erstwhile Microsoft executive, Dr. Qiu Lu, as the company’s Group President and Chief Operating Officer (COO). This change will make the newly appointed COO in charge of the day to day operations of the company, while Robin Li, Baidu’s co-founder and CEO (Chief Executive Officer), will focus on strategy and investments. Dr. Qiu Lu is a leading authority in artificial intelligence, which will be a key strategic focus for the company over the next decade. Baidu’s is struggling to build its reputation after a misleading healthcare advertisement on its platform lead to the death of a cancer patient. This incident led to changes in Chinese regulations for online advertising by healthcare companies and Baidu faced a significant decline in advertising revenues post these changes. The company is now looking to build a trustworthy platform and increase consumer confidence. A dedicated COO can be instrumental in meeting this goal as he independently manages the affairs of the company.

Better Image, Focus On Artificial Intelligence

Artificial intelligence is a key focus area for Baidu and the company is exploring several new lines of business where this technology can be used. (Read Here’s How Baidu Is Leveraging Its Artificial Intelligence Capabilities). In October last year the company launched a $200 million fund to focus on artificial intelligence, augmented reality and deep learning, immediately after announcing a $ 3 billion fund in September to target mid- and late-stage start-ups. (Read Here’s Why Baidu Is Setting Up A $ 3 billion Internet Investment Fund).  With the company focusing on artificial intelligence, which is likely to drive revenues in the long term, Dr. Lu with his capabilities in this field can be a great asset for Baidu. In addition, handing over day-to-day management to a C-level executive can work positively for its reputation. Baidu’s founder Robin Li has been handling its affairs for the past 17 years and his effectiveness has been questioned by insiders. Company executives have suggested that Baidu has missed out on opportunities because of delays in approvals by its founder Mr. Li.  A professional executive can be more efficient and neutral in decision making positively impacting the decision making at Baidu.

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As Baidu struggles to establish itself as a key player in the Chinese internet market, a  COO can help the company significantly. With players such as Alibaba and Tencent providing stiff competition, a better reputation and more efficient management is essential for Baidu. Dr. Qiu Lu’s artificial intelligence expertise will be the icing on the cake.

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