Konica Minolta 2002 Annual Report Download - page 8

6Konica 2002
and Licensing Department. It will undertake commissioned
research, promote commercialization of new technologies, and
offer a service for the monitoring and management of intellec-
tual property.
Konica Shared Service Company (tentative name) will take
over business for offering such shared indirect functions as
common corporate services for strengthening the
Group’s foundation and enhancing its efficiency.
It will offer various types of management sup-
port and indirect services.
For an explanation of the business poli-
cies of each business company, with the
exception of Konica Shared Service, please
refer to the Review of Operations from
pages 8 to 12.
Konica has already finished reorganizing
its internal companies, business groups, and
headquarters. We plan to implement this new sys-
tem in April 2003 after a final decision is ratified by
the Board of Directors and approved by a Special Shareholders’
Meeting at the end of 2002. From April 2002, we plan to set
up a simulated system for the separate companies and holding
company and will carefully monitor management indicators
and steadily reshape our organization to prepare for the imple-
mentation of this system.
EFFECTS OF REORGANIZATION
When considering the adoption of this holding company sys-
tem, I continually envisioned a system that functions practi-
cally and yields results. A prerequisite for such a system is a
corporate culture conducive to ensuring business can be car-
ried out with the necessary authority and responsibility.
Regarding this point, Konica is unfortunately lacking in a num-
ber of areas. Nevertheless, I am aware that setting up our oper-
ations as separate companies is meaningless unless these
companies are given adequate authority to execute their opera-
tions. Nevertheless, rather than immediately transfer all author-
ity to the individual business companies, we have initially
provided the holding company with authority for decisions on
personnel matters and investment amounts in portfolio man-
agement. Specifically, the holding company, which manages
the portfolio, will determine investment amounts based on pro-
posals from the individual business companies while the indi-
vidual companies will make optimal investments in accordance
with themes within the scope of the amount allocated. For
personnel-related matters, the representatives of each busi-
ness company are decided by the holding company and the
representative of each company will choose the top
management for individual companies.
THE BENEFITS OF THE SEPARATE
COMPANIES AND HOLDING COMPANY
SYSTEM
I am confident that the establishment of the
separate companies and holding company
will yield the three important benefits. First,
we will be able to execute our operations
more quickly. The spinning off of business seg-
ments into companies will help delineate the busi-
ness domains of each company more clearly and will
enable faster and more flexible decision making, thereby
strengthening our competitiveness.
Second, each company will be more solidly positioned to
pursue alliances. From the perspectives of technological inno-
vation and future structural changes in the markets, such
alliances will be essential for achieving growth. Until now,
alliances with partners had to be formed with Konica as a
whole. However, the establishment of separate companies will
dramatically widen the scope of possibilities in forming tie-ups
depending on specific business fields and allow each company
to develop its own leading-edge technologies and cultivate new
markets.
Third, internal corporate spirit will be revolutionized, as
each company’s business results become more transparent and
the morale of individual employees will be heightened. Also,
employees will feel closer to the management of their company.
In addition, the performances of the individual companies will
be strictly evaluated by the holding company. I believe that this
will allow us to create a strict corporate culture that emphasizes
performance and build an organization and cultivate personnel
with a strong awareness of profit.