Value Generation 2020
Restoring OMRON’s growing capability in order to meet the needs of society
During the past decade, OMRON has enjoyed stable business performance. But to put the company back on the high-growth path, it was necessary to implement structural reforms that improve both sales and profitability.
In the VG2020 strategy, we are focusing on the industrial automation business in emerging markets centered on Asia. This approach is aimed at restoring OMRON’s growing capability by going back to our roots. By contrast, in developed markets and on a global scale, we will accelerate the creation of new businesses.
To help bring upcoming plans to fruition, we are promoting profit structure reform and the global human resources strategy. Particularly with the global human resources strategy, we are committed to appointing local employees to management positions at overseas operating sites, which is essential to ensuring the globalization of business operations.
In overseas operating sites, management positions filled by local employees accounted for about 30% of such positions in fiscal 2011. By fiscal 2014, this percentage had increased to 42%, and our goal is to increase it to 66% by 2020.
The “Globe” perspective
This perspective will be taken as we pursue global growth opportunities in our current business fields. Population growth and expanding middle and higher socioeconomic groups are expected to bring about explosive economic growth to emerging markets. Increased consumption in emerging markets will spur demand for the global manufacturing industry, so the markets of our industrial automation-related businesses are projected to expand globally. With the rise in demand for control devices for factory automation, as well as consumer healthcare products, our growth opportunities will also expand significantly.
The “Earth” perspective
As the transition to the “Optimization Society” gains momentum, social needs will also reflect increasing concern for the Earth. This will create unprecedented demand for solutions for resource depletion, energy issues, and other environmental problems at the global level. In other words, we will see a growing need for environmentally conscious business. OMRON set up the Environmental Business HQ in fiscal 2008 to anticipate and meet increasing environment-related needs. The future will offer us a great opportunity to bring our environmental solutions business to fruition.