Olympus 2003 Annual Report Download - page 6

OLYMPUS 2003
Some noteworthy news is Olympus’s development of the
world’s first DNA computer for gene analysis. Planned for release
in April , our DNA computer affords dramatic improve-
ments in shortening analysis times and costs, which have been
barriers to commercialization in the past. O ur sales target of
¥.billion in  is a formidable hurdle, but we are making
steady progress in our preparations.
Q6: Olympus has taken an aggressive stance on reforms through
various measures including the Internal Company System. In your
opinion, what challenges does Olympus face in the years to come?
Despite having a high-level of technology, one of
Olympus’s relative weak points is its business acumen.
As a result, in the past there were several instances where
we were unable to commercialize on a developmental effort despite
having a technological lead, ultimately ending in our withdraw-
al from the field. Given that our methods have not always suc-
ceeded in the past, we should deconstruct these methods and
replace them with new ones. W hat we need is “Creative
Destruction and Innovation.”
First, we must strengthen our brand image. To accomplish
this goal, beginning in fiscal , we plan to strategically invest
¥.billion in our brand image over a five-year period. During
the fiscal year under review, we invested ¥.billion in our brand
image, mainly in advertising for digital cameras and other prod-
ucts. The result of this investment was a leap in awareness through
our TV commercials in Tokyo from % to %, elevating
Olympus into a powerful and major brand name. We
believe that higher recognition of Olympus digital cam-
eras will lead to a stronger and more powerful brand.
I N VE S T M E N T I N T H E
M E D I C A L S YS T E M S
GR O U P
Olympus made a
strategic investment
of ¥.billion in the
gastroenterological
endoscope, surgical
endoscope and endo-
therapy fields.
¥4 .0 billion
F O U R T H I N T E R N A L
C O M P A N Y
The Life Science
Group is the fourth
arm of the Company
that was founded on
April , , as a
result of restructuring
in the Medical
Systems Group.
4t h
To this end, O lympus made a strategic investment of ¥.
billion in the gastroenterological endoscope, surgical endoscope
and endo-therapy fields. This investment includes funds for
increasing personnel. We aim to acquire a top market share in
each field over the medium to long term.
Q4: The Industrial Systems Group has fallen on hard times. What
do you propose to do to turn this product group around and
improve profitability?
The main products of the Industrial Systems Group are
semiconductor and LCD inspection equipment. For this
reason, earnings are affected by demand cycles for elec-
tronics. Olympus must create a structure that can generate prof-
its by nurturing businesses that will become new earnings pillars
in areas other than electronics.
Q5: Could you describe the Life Science Group, the fourth arm of
the Company that was founded on April 1, 2003 as a result of
restructuring in the Medical Systems Group?
The genome medical business shows promise as a core business
of the future. Genomic analysis is essential to the creation of tai-
lor-made medical treatments comprised of drugs customized to
an individual’s physical characteristics. We expect demand in this
area to burgeon in the future.
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