Konica Minolta 2002 Annual Report Download - page 6

4Konica 2002
yielded significant results. While the trend toward digital
networking is progressing even faster than expected, the busi-
ness environment has become increasingly severe and compa-
nies lacking technological capabilities, cost competitiveness,
and the ability to reform their management and business oper-
ations, have been forced from the market. Amid this environ-
ment, under SAN Plan 2005, Konica will also focus on such
basic goals as progressing with business portfolio management,
strengthening and utilizing its core technologies, and imple-
menting a system for separate companies for each business
segment as well as a holding company.
BUSINESS DOMAINS AND VISION
Before explaining the strategies we will implement
to achieve our goals, I will clarify Konica’s busi-
ness domains and talk about Konica’s vision.
Recent years have witnessed breathtaking ad-
vances in information systems propelled by the estab-
lishment of high-speed communications infrastructure
and progress in developing new types of information terminals.
The revolution in imaging technologies, which has supported
advances in communications networks, is likely to significantly
alter all of Konica’s business fields. As these trends unfold,
Konica’s vision is to be an “ Imaging Solutions Company,” and
the Company will focus on this field as a business domain
where it will pursue growth by vigorously reforming its busi-
nesses in tandem with an emphasis on digitization of input and
output devices. In output imaging, we will cultivate and
strengthen our inkjet technologies as a third technology plat-
form along with our existing
silver halide and copier tech-
nologies as we undertake revo-
lutionary new businesses. We
will also proactively pursue
new business opportunities in
hard output and display fields.
In input-imaging fields, we
foresee plentiful opportunities
in such upstream sectors as
optical units and key devices
for input devices, and will
focus on the development of this business.
COMPANYWIDE BUSINESS PORTFOLIO MANAGEMENT
In accordance with this vision, Konica will adopt management
policies that include 1) implementing Companywide business
portfolio management, 2) progressing further with digital net-
working, 3) enhancing management efficiency, 4) upgrading
quality, and 5) implementing environmental accounting. In
undertaking our Companywide business portfolio manage-
ment, we have designated our optics and EM technology and
inkjet technology businesses as strategic business fields
and our office document business as our growth
business. Accordingly, we will concentrate the
allocation of management resources on these sec-
tors as well as strengthen our ability to offer
appealing products and bolster our marketing in
these fields. We will energetically pursue both
internal and external strategic alliances that utilize
each partner’s strengths, offer revolutionary new products
and services drawing on our streamlined core technologies, and
raise the value of our corporate brand. As an additional mea-
sure, we will introduce Konica Value Added (KVA), which
focuses on the profitability of a project, as a new management
indicator. With the aim of achieving returns in excess of capital
costs, the Company will select and concentrate on those busi-
ness segments that fulfill the criteria of KVA.
FURTHER PROMOTING DIGITAL NETWORKS
Determined to take advantage of the rapid expansion in digital
networks, Konica will significantly shift its management
resources toward digital business segments. Sales of digital
products as a percentage of our net sales are rapidly growing.
In fiscal 2000, digital products accounted for just 31% of total
sales but surged to 60% of total sales in fiscal 2002. This trend
is expected to gain momentum, and our goal is to increase
digital-related products as a percentage of total company sales
to 79% in fiscal 2006. Accordingly, we will raise the propor-
tion of total investments allocated to digital products 14 per-
centage points from fiscal 2002 to 83% in fiscal 2006. At the
same time, as it accelerates the introduction of new products
and develops its businesses, the Company will vigorously
(Billions of yen)
CHANGE IN DIGITAL SALES RATIO
’00
31%
175
’01
45%
244
’02
60%
324
’03
68%
388
69%
385 55%
229 40%
216 32%
182
(Target)
Digital Analog