Toshiba 2000 Annual Report Download - page 7

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5
The Next Step—The Mid-Term Business Plan
As we have noted, our performance has improved steadily since the second half of fiscal 1999, especially in our semi-
conductor business. We are convinced that this represents the first benefits of our restructuring program, and we are
sure it is no short-term trend. Consequently, the mid-term business plan announced in March 2000 represents a clear
roadmap for future expansion. It sets forth fundamental management policies and strategies for the three years to March
2003, and is designed to bring us to the point where we can sustain high growth and profitability throughout Toshiba
Group. We are achieving this through the benefits gained from fully utilizing the latest advances in information systems
and expanding IT-related businesses.
Our strategic business sectors will prioritize IT business, particularly in the central areas of networks and mobile devices.
We will accelerate growth by fusing our advanced capabilities in network security, image compression and other crucial mobile
technologies with our leading-edge semiconductor, LCDs and digital components technologies.
Business-to-business (B2B) operations center on the e-Net Business Division, formed by the Information & Industrial
Systems and Services Company in April, 2000 as a platform for expanding system solutions. The main approach here will
be to utilize to the full our front-end processing skills as an application service provider (ASP). In this connection, we are
enlarging and upgrading our data center, the core of our services support. We will enter the emerging area of digital data-
broadcasting by working with our affiliate, MediaServe Corporation, to build an e-commerce organization offering retailing,
billing and payment services via digital TV broadcasts.
As part of our drive into Internet-based services we established our ninth in-house company, the iValue Creation Company,
in April 2000. A wide range of on-line operations will include business-to-consumer (B2C) services that use Toshiba’s present
portals and the FreshEye search engine, to conduct “Web-top” services over broadband, mobile networks. Content-related
services will be rapidly developed through ties with such prominent partners as Time Warner, Nippon Television Network,
Kadokawa Shoten Publishing and EMI.
Establishing an Inter-Company Value Chain
We introduced the in-house company system as a means for individual companies to develop strategies for success in an age
of global mega-competition. In order to achieve the goals of our mid-term business plan, it is essential that we are able to
integrate the strengths of the different companies with one another, to expand the range of business opportunities and
enhance total value. The vehicle for this is our inter-company value chain, which can promote in-house alliances in key areas,