Summary of Key Points
ByteDance has recently undergone a major reorganization of its three core businesses: Lark (Flying Book), DouBao (Bean Bun), and Huo Shan Engine (Volcanic Engine). The product team for Lark has been merged into DouBao, which focuses on AI large-scale models, while the marketing/sales/customer service team (GTM) has been integrated into Huo Shan Engine, which specializes in cloud computing and enterprise services. Xie Xin, the person in charge of Lark, will now report to Zhao Qi, the leader of DouBao. The underlying strategy behind this move is to combine Lark’s collaborative office capabilities with DouBao’s AI technology, while leveraging Huo Shan Engine’s customer base to expand its business in the enterprise services (To B) segment, with a focus on the AI-driven enterprise services market.
What Exactly Has Changed?
In simple terms, the reorganization can be described as a “split and merge” of Lark:
- Product Team: The product development and user experience optimization team for Lark has been transferred to DouBao, now under Zhao Qi’s leadership. New features for Lark are likely to integrate with DouBao’s AI capabilities, such as directly using DouBao to create documents or conduct meetings with summaries within Lark.
- Sales Team: The marketing, sales, and customer service (GTM) functions of Lark have been merged into Huo Shan Engine, forming a “Creativity Service Platform” managed by Tan Dai. This means that Lark’s customers will be serviced by Huo Shan Engine, which will also offer these services alongside its cloud computing and AI solutions.
- Personnel Changes: Xie Xin, the founder of Lark, no longer reports directly to senior management but to Zhao Qi, indicating a downgrade in Lark’s status from an independent business unit to a component of DouBao’s AI ecosystem.
Key Figures: Xie Xin and Zhao Qi – Two Tech Experts with HR Backgrounds
The core reason for this reorganization is the prioritization of AI at ByteDance:
- Xie Xin: The founder of Lark, formerly under Zhang Yiming’s leadership at Kuxun. He started as an HR specialist before joining ByteDance in 2014 and led the development of Lark (previously known as Lark), growing the team from 10 to nearly 10,000 members before downsizing it by 2,000. Although he has been a long-time employee at ByteDance, Lark’s progress in AI hasn’t kept up with industry standards.
- Zhao Qi: A Ph.D. in computer science from Peking University, with entrepreneurial experience (creating the travel app “Che Lai Le” that reached tens of millions of users). He has held roles in growth and commercialization before returning to management, this time focusing on HR, where he used technical expertise to identify and recommend AI talent to Zhang Yiming. His return to the business unit to oversee DouBao’s products indicates that ByteDance trusts him with decision-making power regarding AI-related initiatives.
Why Lark?
Lark is a good product, but it has fallen behind in the AI era:
- Lark’s Lagging AI Development: The Lark 7.0 version was criticized for its underdeveloped AI features in 2023, which some attributed to the resignation of Vice President Qi Junyuan. Compared to Tencent’s Workbuddy and Alibaba’s Qianwen Office, Lark lacks a competitive AI advantage.
- DouBao’s Need for Lark’s Collaborative Features: DouBao already has 400 million monthly active users on the consumer (C) side but hasn’t made significant progress in the enterprise (To B) market. By integrating Lark’s collaborative tools, DouBao can quickly enter the enterprise AI market.
- Lark’s Limited Growth Potential: As an independent business, Lark faced fierce competition from Alibaba Cloud, Tencent Cloud, and Microsoft Teams in the To B segment. The integration with DouBao and Huo Shan Engine allows it to leverage AI and cloud computing to gain a competitive edge.
ByteDance’s Strategy: Betting on AI for Enterprise Services
ByteDance is already successful in the consumer market (with platforms like TikTok and DouBao) but needs to strengthen its To B offerings:
- Huo Shan Engine’s Role: As ByteDance’s cloud computing platform, it has a limited customer base. By incorporating Lark’s sales team, Huo Shan Engine can expand its cloud computing and AI services to Lark’s customers, thereby increasing market share.
- AI as a Breakthrough: Enterprises are increasingly seeking AI tools. By combining Lark’s collaboration features with DouBao’s AI and Huo Shan Engine’s cloud computing, ByteDance can offer a comprehensive “AI office + cloud service” solution, competing with Alibaba Cloud and Tencent Cloud.
- C to B Synergy: DouBao’s AI technology can be applied to its enterprise products, and TikTok’s user base and customer network can help attract new enterprise customers.
What Will Happen After the Reorganization?
After the reorganization:
- Lark’s New Role: It will no longer be a standalone office product but will serve as a supporting tool for DouBao’s AI assistant. For example, documents created with DouBao will be stored in Lark, and meeting summaries will be directly integrated into Lark projects.
- DouBao’s Expansion: Its enterprise version will accelerate its internal testing, with potential bundled offers to Lark customers. Lark users may also gain access to DouBao’s AI features.
- Huo Shan Engine’s Role: It will become the central entry point for ByteDance’s To B services, responsible for selling and supporting all enterprise clients, offering a integrated solution that combines Lark, DouBao, and cloud computing.
For users, the reorganization likely means a better Lark experience with enhanced AI capabilities. For enterprises, it will provide more integrated AI-based office solutions. For ByteDance, this move is an opportunity to compete more effectively in the To B market against Alibaba and Tencent.
In summary, this reorganization represents a strategic focus on AI at ByteDance, aiming to leverage all resources for enterprise services. Lark’s role has changed to support DouBao’s AI efforts, with Huo Shan Engine serving as the sales channel. The ultimate goal is to gain a share of the enterprise AI services market. This isn’t a failure but a necessary adjustment for ByteDance to stay ahead in the AI-driven digital transformation.