Ricoh 2001 Annual Report Download - page 7

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We are doing much to create a low-cost, high-efficiency managem ent struc-
ture and thereby com bat a deflationary operating environm ent. For example,
we are constructing a supply chain managem ent system that allows us to
sim ultaneously raise customer satisfaction while expanding cash flow. We are
also endeavoring to ensure low-cost development and production.
Our m ain focus now is progress from individual operations so we can keep
creating corporate value under the m ost challenging conditions. We target over-
all strengths based on individual reforms. We have mandated each Group com -
pany and business to reinforce its own competitiveness and m eet specific
operational and financial targets. We will become more valuable by combining
the strengths of all Group members.
We took two significant steps in fiscal 2001 to support such efforts. First, we
transferred authority and responsibility to individual businesses by instituting
an executive officer system . The new system helped us roll out m ore products
and capture significant market shares. Second, we reduced the size of our board
of directors and appointed external people to that body. This setup has worked
very well because board m embers can now concentrate better on the financial
and strategic im plications of decision-m aking. Our external directors also pro-
vide a wealth of experience from outside our industry and frequently offer
entirely new perspectives on what we should aim for. We will continue to reform
Group m anagement so we can swiftly and dynamically tackle the challenges of
change.
S t r a t e g ic S p e e d
We pursue three basic operational strategies to deliver swift growth.
First and forem ost, we seek to expand our m arket share in networked imag-
ing equipment. This is obviously crucial in a digital world.
Second, we are deploying printing solutions as part of an eventual goal of providing total
docum ent solutions. Printing solutions combine our network-connective hardware with soft-
ware and consulting to enhance productivity. We have only been fully involved in the printing
business for the past few years. But we have already made great strides in building the critical
hardware mass we need to m ove forward. In the not-too-distant future, we will move into docu-
ment managem ent solutions, where we can generate earnings from both hardware and such
areas as docum ent m anagement software, more advanced consultation, system s customiza-
tion, and even facilities managem ent.
We achieved considerable progress in both networked im aging equipment and printing
solutions in fiscal 2001. We met growing demand for color offerings in Japan with the new
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