Omron 1999 Annual Report Download - page 8

AIMS OF REFORMING THE ROLES
OF DIRECTORS AND THE BOARD
OF DIRECTORS
1) Strengthen OMRON’s corporate
governance and Groupwide
management
2) Enhance the competitive strength
of the Company in the global market
3) Increase the speed of decision mak-
ing at the management level
Directors will be able to concentrate more
on OMRON Group management by over-
seeing the Company’s business opera-
tions from a more global perspective.
Reforming the directors’ roles
We intend to clearly separate decision
making at the management level from
business implementation. Directors will
devote themselves to making OMRON’s
Group strategies and corporate policies.
The number of directors has been
reduced to 7 from 30 to better facilitate
essential discussion on Group direction
and strategies and quick decision mak-
ing at the management level.
In addition, the position of Managing
Officer has been created for directors
who will be responsible for daily busi-
ness operations.
Reinforcement of management
audit function
The functions and authority of auditors
will be strengthened so that they can
monitor and evaluate OMRON’s Board
of Directors more strictly and thor-
oughly in respect to compliance with
laws, regulations, and ethics.
ADVISORY BODIES TO THE BOARD
OF DIRECTORS
Nominating Advisory Committee
• Recommends nominees for the Board
of Directors and as managing officers
Corporate Ethics Advisory Committee
to the Board of Directors
• Expresses opinions regarding high
ethical standards in management
Corporate Management Advisory
Committee to the Board of Directors
• Consults outside experts to get manage-
ment advice from a broad perspective
AIMS OF INTRODUCING
THE INTERNAL COMPANY
MANAGEMENT SYSTEM
1) Reinforce OMRON’s ability to create
market and customer value and prac-
tice customer-oriented business
operations
2) Speed up decision making in
business operations, dispersing the
authority necessary for self-reliant
business management and business
strategy execution Companywide
OMRON is responsible for fulfilling
commitments to goals provided by its
top management before creating mar-
ket and customer value by utilizing the
advantages of each company’s exper-
tise to honor such commitments.
By introducing and establishing an
internal company management system,
the self-reliance of OMRON’s opera-
tions will be enhanced and the resultant
increase in decision-making speed and
market flexibility will be realized.
OUTLINE OF THE COMPANIES
OMRON has been reorganized into five
companies and one business develop-
ment group.
Companies
Industrial Automation Company
Electronic Components Company
Social Systems Business Company
Healthcare Company
Creative Service Company
Business Development Group
To develop areas of business that are
not regulated to operate individually, a
new supervisory group, the Business
Development Group, will be established
to provide the necessary administrative
and management support.
Industrial Automation Company
The Industrial Automation Company
manufactures and sells control compo-
nents and systems used in automatic
systems in industries. Sales by the
Control Components and Systems
Division in fiscal 1999 accounted for a
little more than 40% of OMRON’s con-
solidated net sales, and the overseas
sales ratio is approximately 50%, as
overseas sales have grown steadily.
With a 40% share of the market in
Japan, the company is a leader in con-
tributing to the development of manu-
facturing technologies. Although the
business environment appears daunting
in domestic corporate capital investment,
many business opportunities remain
overseas.
In the global market, the company
offers many services, such as those
involving laborsaving automation, envi-
ronmental protection, safety improve-
ment, and inspection-automization
solutions for highly developed produc-
tion systems. Focusing on such growth
areas, the company will reinforce mea-
sures toward systemizing and network-
ing. The company will continue to supply
customers with high-technology control
systems and promote its abundant
lineup of control components. Further-
more, OMRON is expanding its lineup
of environment-friendly and measure-
of-safety products and next-generation
programmable logic controllers (PLCs)
that will be the core of next-generation
control components and systems.
Finally, the company will be implement-
ing measures to boost its marketing
efforts by strengthening solution pro-
posal capabilities.
6
Soichi Koshio
Company President,
Industrial Automation Company