OMRON Corporation has shared its new long-term vision for fiscal 2030, and the three-year medium-term management plan in a press conference held today.
With an objective to strengthen the pace & expanse of worldwide sustainable development, the vision strives to solve more & diverse social issues through OMRON’s Sensing & Control + think technologies, as explained by its President and CEO Yoshihito Yamada.
Named as “Shaping the Future 2030 (SF2030)”, the vision is an extension of the organization’s renowned corporate principles-based management philosophy that underscores OMRON’s sincere desire to shape a sustainable society through the continuous creation of social as well as corporate value via integration of business growth and sustainability.
Keeping in sync with the dynamic nature of the socio-economic environment, over the last 89 years of its inception (since 1933), OMRON has been flourishing and sustaining its growth by living up to its vision of contributing towards creation of a better society via solving social issues through industrial automation, healthcare and social systems solutions.
Envisioning that the upcoming decade is going to indicate the advent of ‘autonomous society’ and unfold many more diverse & complex social issues, OMRON’s long term vision, SF2030, enumerates the ways to maximize human capabilities through people-oriented automation technologies. This encompasses creation of more harmonious & stronger relationships between humans and machines. The company believes that this harmony is the key to bring out the best in people helping them to solve the issues and lead more fulfilling and better lives. This will in turn drive OMRON create newer corporate and social values enabling it to sustain & strengthen its purpose of existence.
“Though we have been able to bolster our profitability, our responsive to change, implementation of sustainability management and our corporate value through reinforced corporate governance and risk management, the socioeconomic system remains dynamic and continues to undergo major changes. We aim to create a strong autonomous growth model and further evolve our corporate management to ensure a sustainable business growth,” says Yoshihito Yamada, President and CEO, OMRON Corporation.
Recognizing the imminent transition in the economic systems – from mass consumption & production to pursuit of global sustainability as one of the major transformations in the Autonomous society, Yamada further explains, “The transition will be accompanied with disruptions in the social systems led by many factors such as climate change, aging population, and growing economic disparity among individuals to name just a few. This scenario will give rise to new and complex social issues which will need newer tech-enabled and sustainable solutions. And this is where we aim to enhance our contribution. If we do so, we will not only create more social value but will also maximize our corporate value automatically.”
The three social issues that OMRON has identified as relevant opportunities and aims to address through its businesses in SF2030 are achievement of carbon neutrality, realization of a digital society, and extension of healthy life expectancies.
The company aims to clock in net sales of 930.0 billion yen and operating income of 120.0 billion yen (FY2022-FY2024) – the 1st phase of SF2030 three-year medium-term management plan – by pursuing the following business directions for the identified social issues:
- Industrial automation: The business will catalyze advancement of manufacturing that is well prepared to support a sustainable society. Continuing with its focus on easing labor shortages, and enhancing productivity in various industries, OMRON will evolve its innovative Automation approach with the aim of building a production floor that shapes a sustainable future where both harmony with the global environment and worker satisfaction are achieved.
- Healthcare : Buoyed with the great progress of its ongoing “Zero Events” direction (the efforts to reduce events of cardiovascular disease to zero) OMRON will intensify its focus in preventive & remote healthcare monitoring domain while continuing to advocate the adoption of home-use medical devices and data-based hypertension management ensuring more accessible healthcare and healthier lives for people across the globe.
- Social Solutions : Contributing to the adoption and efficient use of renewable energy, OMRON will help to create a sustainable infrastructure to support the digital sustenance of the upcoming autonomous society. OMRON will use its advanced energy control technology for energy harvesting, conservation & optimization.
- Device & module solution domain: OMRON will make more contributions to the spread of new energy and high-speed communication via enabling the creation of sturdier, advanced, and more efficient devices making lives of people easier and better.
Along with financial milestones, the company has also enlisted 10+1 non-financial targets as part of its management goal. These non-financial targets have a relevant connect with many Sustainable Development Goals (SDGs) & needs of local communities underlining the alignment of the company’s commitment to society.
In order to support these ambitious directions, OMRON aims to bring in strong transformations in its corporate management and organizational capabilities too. Here is a lowdown of the key initiatives :
- Making a shift from product to essential value perspective: The organization is going to work towards shifting its perspective from just creating performance and quality-based value to creating essential value that will provide users with much more proposition than solving just immediate operational issues. It will help them to be a part of the development of the solutions answering larger social and industrial issues.
- Evolution of business models: The company aims to upscale the expanse of its collaborations and networking with like-minded organizations, and business associates to come up with better & newer solutions.
- More attention towards “diversity & inclusion”: Believing that its human resources are the key to bringing SF2030 to success, this includes investment in talent development and nurturing a psychologically safe and inclusive organizational work culture encouraging diverse individuals to manifest their talents, and abilities to create innovations.
- Improving supply chain resilience: to help endure rapid changes in the business environment, such as natural disasters and geopolitical risks. It also includes endeavors to increase operational efficiency, improvement in design development prowess and decentralization of production sites.
- Strengthening sustainability initiatives: To make businesses achieve carbon neutrality, reduce their environmental impact via targeted greenhouse gas emission reduction, and respect human rights on a global scale. By prioritizing these mandates, OMRON will not only fulfill its corporate social responsibilities, but also sharpen its competitive edge by adding “environmental & human value”.
- Accelerating “data-driven corporate operations through DX”: to support business transformation and empower its people with a robust, safe, and progressive workstyle based on digitalization.
“With SF2030, our aim is to shape a better society and while doing so become a corporate group that people can always depend on. An organization that continues to live up to the high expectations of people from around the world,” sums up Yamada.