Omron 2016 Annual Report Download - page 13

Download and view the complete annual report

Please find page 13 of the 2016 Omron 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 102

  • 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
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102

Material Management Issues and Major Initiatives
Issues Initiatives
Improve Three Powers:
Growth Power, Earning
Power, Power to Deal
with Change
󰒄 Rebuild our
earnings structure
(1) Initiatives to improve gross profit margin
(2) Initiatives to improve productivity in back-office
departments
󰒅 Create an engine for
self-driven growth
Engage in concentrated investment in the Industrial
Automation and Healthcare businesses, which represent
our future growth drivers. This includes investment in
businesses and innovations at headquarters technology
departments that accelerate growth in Industrial
Automation and Healthcare.
strategy to medium- and long-term business
plans and investor returns. We value the
feedback we receive from shareholders,
investors, and other stakeholders,
communicating this information throughout our
company. Every year we conduct an internal
review of important matters, disclosing our
results*1 to the public.
*1 Convocation Notice for the 79th Ordinary General Meeting of Shareholders
http://www.omron.com/about/ir/shareholder/pdfs/convocation_notice_79th.pdf
󱚤Materiality Identification Process
In light of our long-term strategies, and after
considerable discussion at board meetings and
other venues, we determine our most pressing
issues with respect to our Growth Power,
Earning Power, and Power to Deal with Change.
More specifically, we identify materiality in terms
of everything from the Omron Principles,
corporate governance, globally integrated risk
management, long-term vision, and technology
󱚤Awareness of Current Situation
󱚤Issues and Initiatives
In 2011, Omron published Value Generation 2020 (VG2020), a plan that outlined a 10-year vision for our
company. VG2020 put us on the path toward becoming a company that delivers global value in terms of
both volume and quality. Under this plan, we set a quantitative goal and defined specific activities to achieve
net sales of
￥
1 trillion with an operating income margin of 15% for fiscal 2020.
　At the same time, we are well aware that we have not yet achieved our EARTH-1 STAGE goal of
establishing a self-driven structure to grow in any operating environment. The digital revolution embodied
in AI*2, IoT, and other developments drives technological innovation that will change the current structure
of manufacturing. This change is a major opportunity for Omron. At present, we are creating our medium-
term management plan for fiscal 2017 and beyond anticipating that these changes will occur in future.
*2 Artificial intelligence
Integrated Report 2016 11
Where We
re HeadedAbout Omron Corporate Value Initiatives Corporate Value Foundation Financial Section