Market Environment

The Data Solution Business HQ (DSB) aims to transform the entire OMRON Group from a manufacturing-oriented company to a solution business (combination of products and services). The market environment for DSB is essentially the same as that of OMRON’s core businesses: the Industrial Automation Business, the Healthcare Business, and the Social Systems, Solutions and Service Business. As social issues such as labor shortages and the optimization of medical resources in a super-aging society become increasingly significant, there is growing demand for data- and AI-driven solutions to these social issues, and the market is expanding rapidly. DSB regards these changes as business opportunities, and it will drive its business growth by leveraging the OMRON Group’s data to develop and provide solutions. In the health big data domain of JMDC Inc., the utilization of medical data is expected to continue expanding.

Our Strengths

DSB will lead the business growth of the entire OMRON Group by integrating the strengths of JMDC Inc., which develops data-driven solution businesses, with the assets OMRON has cultivated through manufacturing centered on control devices, including its businesses, expertise, human resources, and customer base.

What OMRON has built so far as a manufacturing company is a so-called “waterfall process,” in which the steps from planning and development to manufacturing and sales are completed sequentially. On the other hand, JMDC Inc., which has achieved rapid growth in the solution business utilizing health big data, has provided its services through a so-called “agile process,” in which beta versions are released quickly and services are gradually improved. By integrating OMRON’s strength in manufacturing optimized for the waterfall process with JMDC Inc.’s strength in solution development optimized for the agile process, DSB advances the digital transformation (DX) across the OMRON Group. This capability to drive digital transformation is the core strength of DSB.

Growth Strategy to Achieve SF2030

The growth strategy of DSB is the advancement of digital transformation across the OMRON Group, namely the evolution toward a solution-oriented business model that combines products and services.
As a milestone in this evolution, the OMRON Group’s DSB aims to achieve sales of JPY 100 billion in fiscal 2027. In addition to JMDC Inc.’s businesses, which are expected to maintain strong growth, DSB is promoting six businesses that achieve “on-site DX” by combining OMRON’s strengths in hardware and customer base cultivated through its existing businesses with the data management and solution development capabilities of both DSB and JMDC Inc. Among them, the proactive health business provides a new framework for health management by utilizing household data obtained from the OMRON Group’s healthcare devices together with JMDC Inc.’s medical data, thereby visualizing health risks based on big data. In the healthcare industry, while technological advances have led to an increase in various health-related services and products, it has so far been difficult to link annual health checkups and examinations with daily health conditions, and there are still no established means to prevent serious diseases in advance. The proactive health business enhances the value of the device experience and realizes personalized approaches to health improvement by combining OMRON’s advanced technological capabilities and reliability that underpin the quality of its medical device hardware, as well as the vast scale of high-quality health data it has collected across Japan and globally, with JMDC Inc.’s data utilization capabilities.

The creation of new value through data solution approaches is not limited to the healthcare domain. There are ample opportunities in the Social Systems, Solutions and Service Business and the Industrial Automation Business as well, and new markets and domains that were previously difficult for OMRON to enter on its own are now emerging as realistic business opportunities through collaboration with JMDC Inc.

* For further details, please refer to the Proactive Health Business (Japanese Only).

The smart management & service (M&S) solutions business is an example of a business promoted in collaboration with the Social Systems, Solutions and Service Business. In the social infrastructure business, where OMRON FIELD ENGINEERING Co., Ltd. has long been providing management services, we have extensive experience and a proven track record, on-site data, and long-term relationships of trust with customers. In the smart M&S solutions business, we are driving business transformation and expansion along three pillars. The first is the digital transformation of existing field services. By promoting the automation and optimization of maintenance and engineering operations, we will enhance the productivity of service delivery and reduce dependence on human resources. In addition, by expanding service domains to include indirect business support such as business process outsourcing (BPO), we will also work to increase customer touchpoints and revenue opportunities. Furthermore, by utilizing the data accumulated through these operations, we aim to build a new service model that supports the visualization and reengineering of business processes as well as the enhancement of decision-making.

* For further details, please refer to the Smart M&S Solutions Business (Japanese Only).

In this way, DSB leverages the vast scale of data and business assets accumulated through OMRON’s long-standing manufacturing operations and evolves the business models of OMRON’s existing businesses, thereby serving as one of the key growth drivers of SF2030.

Business Highlights

Sales Composition by Business Domains

Trends in Net Sales / Operating Income / Operating Income Margin

OUTCOME: Social Value Created and Corresponding SDGs

• Evolve the OMRON Group’s overall business model through data solutions and create growth businesses that help solve social issues
• Accelerating efforts to address OMRON’s three key social issues, namely, achievement of carbon neutrality, realization of a digital society, and extension of healthy life expectancy, by focusing the OMRON Group’s value creation on solutions