Oki 2002 Annual Report Download - page 7

Download and view the complete annual report

Please find page 7 of the 2002 Oki annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 38

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38

Oki Electric Industry Co., Ltd. Annual Report 2002 5
Why is Oki cutting back on
R&D investment?
As I mentioned earlier, Oki is mov-
ing from quantitative to qualitative
expansion, and this is true for
R&D as well. These cuts in R&D expenses
are not arbitrary. Instead of pursuing a broad
range of R&D areas, we will focus on
business areas that represent our strengths.
I think it’s important to develop products
through alliances and utilizing our partners’
technology, rather than doing all the develop-
ment ourselves. This saves on R&D expenses
and creates new businesses. You could call this our alliance and development (A&D)
concept. Rather than just focusing on in-house technology, we’re trying to develop
more competitive products by introducing technology gained through alliances or
acquired from other companies. For example, just as VoIP was developed by
merging telecommunications and information technologies, we will also create
future products in various technology convergences.
QA
In what ways does Oki’s
management prioritize
shareholders?
QOki’s goal is to offer “network solutions for a global society.” As I men-
tioned before, to do this we focus resources on business areas that make
the most of the Group’s strengths and contribute to the development of
a global network society, or “e-society.”
Our management emphasizes revenues, growth and speed to accomplish this
vision. This plan would not be complete without better corporate governance to
ensure management effectiveness and transparency. In April 2001 we established a
management advisory committee and a compensation committee, and in July 2001
an outside director was appointed to the Board of Directors. All of these moves will
raise corporate value and benefit Oki’s shareholders.
A
Oki Electric Industry Co., Ltd. Annual Report 2002 5
telecommunications protocol and energy-efficient process technology. We will also
develop our memory business, concentrating on specific customers.
Our other plans are to strengthen alliances with external foundry manufacturers by
sharing common process technologies, consigning production as necessary and
developing businesses that do not require large capital investment.