Konica Minolta 2004 Annual Report Download - page 36

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Intellectual Property Report 2004
Basic Management Policy
The Konica Minolta Group (Konica Minolta Holdings, Inc. and its
group companies) was established by a management integration of
Konica Corporation and Minolta Co., Ltd., in August 2003. In
October 2003, the Konica Minolta Group reorganized and integrat-
ed its business into a new corporate group having six business compa-
nies and two common function companies under Konica Minolta
Holdings, Inc. In April 2004, as a result of further reorganization to
maximize synergy effects, the Konica Minolta Group now consists of
five business companies and two common function companies.
Based on the management philosophy of “The Creation of New
Value,” the Konica Minolta Group aims to engage in thorough busi-
ness portfolio management; implement highly transparent corporate
governance; promote its technology strategies and instill the Konica
Minolta brand in the imaging field; conduct effective personnel man-
agement; and emphasize corporate social responsibility to effect the
Group management visions of becoming an “Innovative Corporation
that Continues to Create Impressions in the Field of Imaging” and “A
Global Market Leader that Offers Advanced Technology and
Reliability.”
1. Core Technologies and Business Models
The Konica Minolta Group is working to leverage, enhance and com-
bine its history and experience in imaging, precision processing, mate-
rials, and optics, to create new proprietary materials and devices for
use in the fields of electro-photography, conventional photography,
inkjet technology, and other imaging input and output products. In
addition to these core technologies, we aim to allocate management
resources for the development of production, design, software, net-
work, and electronics technologies to expand our activities in the
Business Technologies, Optics, Photo Imaging, Medical and Graphic
Imaging, and Sensing businesses, and to lay the platform for future
growth through the creation of new businesses.
As shown in the figure below, the Konica Minolta Group aims to
strengthen business competitiveness and create new businesses by allo-
cating management resources to the core Business Technologies busi-
ness, strategic Optics business, and basic and advanced technologies
for common use throughout the Group.
2. R&D Segment and Business Strategies
R&D at the Konica Minolta Group is conducted at each business com-
pany to increase its relevance to business strategy. Moreover, separate
from the R&D activities conducted at each business company, the cor-
porate R&D function (Konica Minolta Technology Center Co., Ltd.)
advances research in common platform technologies for use throughout
the Group and works to develop and enhance new cutting-edge tech-
nologies. There were approximately 4,400 employees engaged in
R&D activities throughout the Konica Minolta Group as of March 31,
2004. In fiscal 2003, the Konica Minolta Group recorded approxi-
mately ¥63 billion* in R&D expenses, included in the Company’s
SG&A expense, around 5% of total sales.
*Note: The amount of R&D expenses in 2003 was obtained by adding the annual
expenses of the former Konica to the R&D expenses of the former Minolta for the first
half of fiscal 2003.
Allocation of Management Resources (Three-year total through March 2007)
Investment Research and Development Expenditures
Total Capital Investment: ¥230.0 billion Total Research & Development Expenditures: ¥220.0 billion
More than 70% of the Group’s capital investment and R&D expenditures are allocated to the Business Technologies and Optics Businesses.
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71. Business Technologies 48%
2. Optics 12%
3. Photo Imaging 14%
4. Medical & Graphic Imaging 11%
5. Sensing 3%
6. Basic and advanced technologies 12%
1. Business Technologies
(includes equipment leasing) 45%
2. Optics 15%
3. Photo Imaging 13%
4. Medical & Graphic Imaging 5%
5. Sensing 1%
6. Others 8%
7. Strategic investments 13%
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