Oki 2000 Annual Report Download - page 4

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A M ESSAGE FROM THE PRESIDENT
In fiscal 2000, ended March 31, 2000, consolidated
net sales declined 0.5%, to ¥669,776 million. The slip in
sales performance reflects a slowdown in telecommuni-
cations and information systems as financial institutions
and telecommunications companies steered away from
capital investments, counteracting enhanced demand for
logic devices and 4 Mbit and 16 Mbit dynamic random
access memories (DRAMs). We continued to curtail cost
of sales and fixed costs, which boosted net income to
¥1,146 million, recovering from our ¥47,421 million net
loss last year.
For fiscal 2001, ending March 31, 2001, we anticipate
consolidated net sales of ¥750,000 million, as our
“Phoenix 21” strategy begins to gather momentum.
Implementing a New Business Model
As illustrated above, we made a substantial
comeback from last year’s deficit. We still need, however,
to reinforce our earnings base by concentrating resources
in our key segments to succeed amid intense global
competition. Phoenix 21, a program initiated last year,
is designed to help us achieve these objectives. Through
the program, we are focusing on “profit and agility” as
a means to heighten the Group’s corporate value and
make our name synonymous with network solutions. We
have repositioned ourselves under the slogan of “Oki,
Network Solutions for a Global Society.” We are realign-
ing operations following a more proactive business model,
which will allow us to deliver products that meet customer
needs. To achieve this, we will change our product mix
and management structure.
To restructure our product offerings, we are concen-
trating resources in key segments, withdrawing from less
rewarding ones, strengthening inter-corporate alliances
and reorganizing operations from the development to
delivery stages, based on the new business model. We
are also restructuring and strengthening management
throughout the Oki Group to strongly promote the
concepts of “profit and agility.” From April 2000, we
began establishing independent profit centers based
on the “in-house company” system and also introduced
the executive committee system. The consolidation of
our affiliates has been another step in this direction.
Since its founding, Oki Electric has incorporated the
spirit of innovation in its corporate culture. In keeping
abreast of rapid change as we prepare to embrace the
21st century, our goal is to link this spirit of innovation
with the Group’s renewed emphasis on “profit and
agility” so that all our employees can apply these basic
values to their daily jobs. I believe that our success in
achieving this will have a lasting impact on Group
performance.
Service Bridges: A Vision for Tomorrow
To position the Oki Group as a premier network
solutions provider, we are proposing three “service
bridges” to connect growing demand for network sys-
tems with the required infrastructure. “Customer con-
tact” is the first of the bridges and refers to listening ever
more closely to customers. With the emergence of a net-
work-oriented society, we are boosting the quality of our
services by focusing on user needs rather than only
offering services which we, the vendor, deem sufficient.
We believe that it will be necessary to build supply chain
management systems that revolve around customers,
for use by both our public and private sector clients.
Our sales approach for our network printer, featuring
a strengthened vertical application development
component, will fall into the realm of this new strategy.
“Multimedia messaging” is the second bridge. We
aim to provide messaging services that transcend “time,
space and media.” We plan to offer a seamless commu-
nications environment with unified messaging and the
Multimedia over Internet Protocol (MoIP), which inte-
grates and transmits voice, facsimile functions and
image data for the most convenient and effective
communication environment.
The network-oriented society is giving rise to a multi-
tude of businesses and services. As a third bridge, we
plan to offer multifaceted application services to support
Internet businesses. In particular, we intend to concen-
trate on high-level Internet security, provide business
logic, build and support the operations of Internet
businesses, and also offer outsourcing services.
Realizing our Corporate Vision
To accomplish our corporate vision, the Oki Group
will implement a variety of measures, applying its three