Toshiba 2007 Annual Report Download - page 18

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16
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quality — and in order to solve such dilemmas of choice we need to make use of com-
pletely new, innovative ways of doing things. In short, that is why it is essential for each
and every employee to embrace innovation.
As much as time permits, I visit our development, manufacturing and sales and mar-
keting sites, so that I can interact with employees and make sure we have a shared
understanding of Toshiba’s vision of change. The most important thing in building an
organization and culture conducive to innovation is changing the mind-set of employ-
ees. In addition, when we talk about innovation, we have to remember that Toshiba is a
manufacturer, and innovation has to be connected
to the value that our customers want to see from
us in the near future.
In assuring that our innovation is connected to
customer value, the most important thing is speed.
We must thoroughly implement Toshiba’s “i-cube”
program to assure the multiplier effect of simulta-
neous innovations in our three key process areas of
R&D, manufacturing and sales and marketing, and
create the value our customers want in the short-
est possible timeframe.
You have often talked about the importance of risk management. What are your
thoughts regarding risk management in innovation?
Innovation involves changing things by means of the introduction of new ideas and
methods. Naturally, in such cases risks will surface. What is important is not how to avoid
risks, but how to make management decisions on the basis of calculated risk. For exam-
ple, when we develop a new world-leading technology, we have to decide whether or
not to apply for a patent. In such a case, we have to consider what strategy will lead to
more beneficial results for the Company. Should we decide not to apply for a patent and
avoid the potential risk from disclosure, or should we obtain a patent and run the risk
involved in disclosing its contents? We have to use our best judgment, and sometimes
the better strategy is to keep the details of the invention within the Company.
What we should never forget is that innovation is also a hedge against risk. NAND
Flash memory is a typical case: We are a world leader in miniaturization and multi-level
cell technologies, and if we continue to innovate and lead the market, we will minimize
the risk from competitors.
Toshiba has acquired the Westinghouse Group as an affiliate and sold Toshiba
Ceramics and Toshiba EMI. It looks as if you are accelerating the process of selec-
tion and concentration in your businesses.
We are very clear about the direction in which we want to go. We are intensively chan-
AN INTERVIEW WITH THE PRESIDENT (CONT.)