VG2020 - Omron

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30 [Special Feature 2] Interview with the Heads of Business Segments in lifestyle-related diseases, such as high blood pressure and diabetes. In light of this trend, our growth strategy focuses on broadening sales coverage. At present, we supply products to 260,000 large chainstore and drugstore outlets around the world. Our aim is to increase this number to 400,000 by the year ending March 2021. Most of the increase will come from emerging markets. In China, our products are currently sold in 20,000 stores, and we plan to elevate this to 30,000 stores by next year. In India too, we will raise the number of stores handling our products to 10,000 in the current fiscal year by increasing distributors from a handful to more than 30. One initiative to widen coverage is to restrict the number of categories controlled from Japan to four: blood pressure monitors, blood glucose monitors, thermometers, and nebulizers. Meanwhile, we are implementing a policy that transforms area sales companies into business companies responsible for planning in their respective areas. This is because some areas have major health needs for specific conditions. One example is chronic obstructive pulmonary disease (COPD), which is connected to asthma and high smoking rates. We are considering accelerating the shift from sales companies to business companies so that in areas where this disease is prevalent, we can broaden coverage by getting local companies to engage in planning and be responsible for selling all of their stock. Store in Bangalore, India ——— What product strategies have you devised for emerging markets? Miyata (HCB): We will seek to deliver products with cost and quality that surpass local value standards. Bringing Japanese standards to emerging markets won’t work. We will target these markets by offering inexpensive models with simple functions. To capture the top market share in emerging economies, of course, we must manufacture products at the lowest cost in the world. For example, in China, not Japan, we are developing a ventilator that meets local demand through an alliance with a local manufacturer. However, this does not apply to mainstay products. For these, collaboration with the Omron Group’ s horizontal (head office) divisions in conjunction with the Global Process Innovation Headquarters will become increasingly important. Top Runner of Team Omron to Raise the Profile of the Omron Brand HCB Current position: Executive Officer CEO & President, Omron Healthcare Co., Ltd. Date of Birth: July 24, 1960 (age 51) Words to live by: Innovation as a way of life KIICHIRO MIYATA ——— What are HCB’s brand strategies? Miyata (HCB): In the case of consumer products, the most effective method is to secure shelf space in retail outlets and capture a sizable market with a full product lineup first, and then invest in a broad strategy. You can’t afford to be too quick or too slow off the mark. In India, we are approaching the stage in which we should invest in a brand strategy. First we will enhance recognition of Omron as a medical equipment and healthcare product manufacturer, then enhance brand recognition amongst medical practitioners. Then we will roll out a mass-marketing brand strategy. More than anything else, the healthcare business has the important mission of leading Team Omron’s campaign of raising the Omron brand profile among consumers. Under “Value Generation 2020,” we will strive to spread the Omron brand as widely as possible on a global scale while collaborating closely with the head office.
Focus on the Environmental Solutions Business 31 Ando: The third task for growth is to focus on the environmental solutions business. I would like to ask the president of SSB and the senior general manager of the Environmental Solutions Business HQ about this topic. Optimum Control of Energy ——— Please tell us about initiatives being undertaken by the Environmental Solutions Business HQ. Teshigahara (Environment): The Environmental Solutions Business HQ focuses on the optimal control of energy. Its specific objectives are to expand the energy-saving business by selling packages to the manufacturing industry, globally advance the energy-creation business centered on solar power conditioners, and meet future needs through an integrated energy solutions business that blends energy saving and energy creation. With a three-tier structure, the energy-saving business consists of (1) a component business for sensing the energy and the environment in which it is used, (2) a remote monitoring system business that sends sensed energy data to customers via application service providers, and (3) a solutions business that offers consulting and engineering services based on energy data and helps businesses reduce energy consumption and carbon dioxide emissions. The energy-creation business will enhance its lineup by adding solar power conditioners and peripheral equipment for industrial applications to its existing range of offerings for the home. In addition to global expansion centered on Europe and China, it will also develop core products used in energy control as well as power storage. The integrated energy solutions business will incorporate the creation, storage, and wise use of energy into energy flow control with the primary objective of developing a mini grid business mainly targeting corporations. Instead of merely measuring and visualizing the status of energy usage, in true Omron Group style, the business will provide solutions that “sense” whether or not the excess energy can be used for economic activities. [Special Feature 2] Interview with the Heads of Business Segments MASAKI TESHIGAHARA Integrated Energy Solution ENVIRON MENTAL Current position: Executive Officer Senior General Manager, Environmental Solutions Business HQ Date of birth: August 7, 1958 (age 53) Words to live by: Stake all or nothing Energy Saving Energy Creation Group-wide Efforts to Meet Eco-related Demand (components, devices, etc.) FA equipment, relays and more
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