Nikon 2014 Annual Report Download - page 13

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To achieve the goals outlined in the Medium-Term Plan, four programs centered on M&A,
R&D, human resources, and cost reduction have been introduced.
In M&A, funds of ¥200 billion has been budgeted over three years, primarily for the
Medical Business and the Instruments Business, and ¥30 billion of corporate venture
capital has been earmarked over three years for energizing the Medical Business. Another
¥220 billion has been allocated for R&D, which we believe we can obtain from funds
currently on hand and funds that will be on hand; however, if necessary we will consider
such debt fi nancing as bank loans. Our intention to maintain our currently solid fi nancial
base is unchanged. Venture capital will be used in the pursuit of open innovation, so we
will not limit ourselves to gathering information on cutting-edge technology from venture
businesses targeted for investment. Instead, we will actively work with businesses that will
have been passed over as well.
Of the ¥220 billion allocated over three years for R&D, ¥50 billion will be directed to
the Medical Business and other potential new businesses. Our Core Technology Division
serves as a hub for the Nikon Group’s long-term technical strategy and for undertaking tasks
related to developing technology, encouraging horizontal developments, and collaborations.
We also place importance on collaborating with venture businesses, which offer cutting-edge
technologies that, combined with our technological strengths, can be used to turn ideas
into products.
The human resources program has been set up to give increased mobility to human
resources and to bring in people with special skills. The movement of people across
business boundaries was limited under the in-house company system, but this program
enables us to readily reassign employees according to their talents. If we are unable to
locate someone in-house with a required skill, we bring in outside talent, such as someone
Restructuring the organization to conform to the Medium-Term
Management Plan
Four programs introduced for the establishment of a new Nikon
When our businesses were growing quickly, swift decision making was needed to keep pace
with rapidly expanding markets, so our in-house company system that promoted worksite
decisions was effective for each company. The brisk expansion of the Imaging Products
Business over the past 10 years was particularly a boon under our in-house company
system. Yet we are now relinquishing the in-house company system in favor of one that
is more under the direct control of the president to more effi ciently carry out top-down
decisions. This move is in no way to denigrate our past achievements. To respond to
diversifi ed needs and create new value, we must recognize we have entered a stage that
requires overarching control to compare and sort out various ideas. We decided it was time
to change and reorganize to a fl atter business structure. The Corporate Strategy Division
has been established to oversee all businesses and allocate resources to benefi t the entire
organization rather than separate businesses.
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NIKON REPORT 2014