Omron 2003 Annual Report Download - page 8

Our objectives for March 2005 are as follows.
➤ Device Business
We will establish a profit model for Omron’s device business
targeting the fields of optical devices (optical communications,
MLA) and MEMS, so that it can be established as a full-scale
Device Business in ECB.
➤ Solutions Business
In the Solutions Business, which is centered in IAB, we will
complete our examination of the market for a high-profit
business model based on sensing components, and develop this
into a core business.
While completing VIC21 and shifting to the growth stage, we
will aim to restore ROE to 7.5% in the fiscal year ending March
31, 2004 and work to ensure achievement of our ROE target of
10% in the year ending March 31, 2005.
In the second stage, from April 2005 and beyond, our goal will be to maintain profitability while
generating growth toward 2010.
Simply stated, we will practice “corporate value management.”
➤ Corporate Value Management
For Omron, corporate value management enables generation of growth while maintaining
profitability – in other words, it is management that seeks long-term maximization of Group
corporate value.
To put corporate value management into practice, we will embrace indicators, such as cash
flow, that provide a more comprehensive understanding of the Group’s financial condition, and use
them as benchmarks for evaluation. We must also link these indicators to our day-to-day business
activities, to bring them into line. We will develop these conditions with the aim of completion in the
second stage.
In managing the Group, we will adhere to “selection and focus,” “core competence” and
“employee self-management” as the three key strategies of corporate value management.
➤ Selection and Focus
We will expedite maximization of corporate value through a strategy of selection and focus.
Omron’s businesses operate autonomously in frameworks such as the internal company
system. As exemplified by the separation of the Healthcare Company on July 1, 2003, we will
accelerate autonomous management in an even greater variety of forms in order to maximize the
value of each business.
After creating these frameworks, we will speed up the redistribution of management resources
based on careful assessment of the future value of each business to restructure them as a collection
Device
Business
Solutions
Business
Use our strength in
SENSING components
in the growing
NETWORK market
to shift to
SOLUTION-based
added value
6• Omron Corporation
Accelerating Creation of a High-Profit Business Model
for Core Businesses
“Sensing Network Solution”
Orientation of Growth Strategy
Toward the Second Stage of GD2010