Konica Minolta 2001 Annual Report Download - page 6

Konica Corporation/ Annual Report 200 1
4
From 31% to 45%. As of March 2001, the shift to digitization has continued to proceed
swiftly. Guided by our medium-term business plan, we will keep focusing investment,
staff, and technical strategies to push ahead with digital networking.
Under the A lliance theme, in April
2 0 0 0 Konica formed a business tie-up
with Minolta Co., Ltd., in the office
document business. The combination
of our high-speed digital technology
and materials development with
Minolta’s digital color image
proc essing technology and printers
gives both companies a number of
highly c ompetitive products and
greater tec hnical strengths. The
alliance will provide consumers with
a host of attrac tive new products that
offer unprecedented features, while
helping us bolster operations and
signific antly boost profits.
Under the Network theme, we
focused on increasing sales of the
digital products in our product line.
These efforts paid off, with the sales
percentage of digital products
climbing dramatically, from 3 1 % in
March 2 0 0 0 to 45 % one year later.
Moreover, we have reallocated
Konica’s resources and sought to
promote the development of products
and services for digital network
systems and expanded strategic
business lines such as optics
technology, inkjets, and electronic
materials. Combining these three
strategic business fields proved highly
successful, as the Company’s sales rose
from ¥ 7 1 .3 billion in March 2 0 0 0 to
¥ 8 0 .7 billion in March 2 0 0 1 .
Transforming O ur Business
Structure under SAN Plan 2004
At the outset of this report, I described
how dramatic transformation was the
key to Konica’s future. By this, I mean
the transformation of our business
structure itself. While transformation
has been the underlying theme of the
Company’s medium-term management
plans for the past several years, our
business structure has mainly revolved
around film, photographic paper and
other analog products. The c ontinued
swift advancement in digital
technology, however, requires a more
profound shift— from the previous
business structure to one that better
accommodates digital systems and
creates new business opportunities.
Ac c ordingly, we studied the
progress made under SAN Plan 2 0 0 3
during the previous year, added new
management tasks, and upgraded to
SAN Plan 2 0 0 4 in a move designed to
achieve steady implementation of the
medium-term management plan. SAN
Plan 2 0 0 4 stipulates a polic y of
focusing investment, human resourc es
and technical strategies on promoting
the Company’s shift in emphasis toward
the newly developing areas c entered on
digital networks while also reinforcing
strategic business areas.
Change in Digital Sales Ratio
0
100
2000 2001 2002
(Target)
200
300
400
500
600
69%
385
31%
175 45%
244
55%
299 43%
245
57%
325
Analog
Digital
( ¥ billions)