OMRON announces “Shaping the Future 2030” vision
Targets 930 billion yen net sales and 120 billion yen operating income in the 1st phase (FY 2024)
OMRON has announced its new long-term vision for fiscal 2030 and a three-year medium-term management plan, with the objective to strengthen the pace and extent of worldwide sustainable development. The vision strives to solve more diverse social issues through OMRON’s Sensing & Control + think technologies.
Named by OMRON President and CEO Yoshihito Yamada 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 desire to shape a sustainable society by continuously creating social and corporate value from the integration of business growth and sustainability.
Since its inception in 1933, OMRON has contributed towards the creation of a better society 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, SF2030 enumerates the ways to maximise human capabilities through people-oriented automation technologies. This encompasses creation of stronger relationships between humans and machines which is key to bring out the best in people by helping them to solve issues. This will in turn drive the company to create newer corporate and social values.
“Though we have been able to bolster our profitability, our responsiveness to change, implementation of sustainability management and our corporate value through reinforced corporate governance and risk management, the socioeconomic system remains dynamic. We aim to create strong autonomous growth and further evolve our corporate management to ensure sustainable business growth,” adds Mr Yamada.
“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 create more social value.”
The three social issues that OMRON has identified as relevant in SF2030 are carbon neutrality, realisation of a digital society, and extension of healthy life expectancies.
The company aims to see net sales of 930.0 billion yen and operating income of 120.0 billion yen in three-year medium-term from 2022-2024 in the 1st phase of SF2030 management plan – by pursuing the following business directions for the identified social issues:
- Industrial automation: The business will catalyse advancement of manufacturing prepared to support a sustainable society. The focus is on easing labour shortages, and enhancing productivity. OMRON will aim to build a production floor that shapes a sustainable future in harmony with the global environment and worker satisfaction.
- Healthcare: Buoyed by good progress of its efforts to reduce events of cardiovascular disease to zero, OMRON will intensify its focus in preventive and remote healthcare monitoring, while continuing to advocate home-use medical devices and data-based hypertension management, to ensure more accessible healthcare and healthier lives for people across the globe.
- Social Solutions: Contributing to efficient use of renewable energy, OMRON will help to create a sustainable digital infrastructure to support autonomous society. OMRON will use its advanced energy control technology for energy harvesting, conservation and optimization.
- Device & module solution domain: OMRON will contribute to the spread of new energy and high-speed communication by enabling the creation of sturdier, advanced, and more efficient devices.
Along with financial milestones, the company has also enlisted 10+1 non-financial targets as part of its management goal. To support these ambitious directions, OMRON aims to bring in strong transformations in its corporate management and organizational capabilities too. Here is a low-down of the key initiatives:
- Moving from product to an essential value perspective: Shifting company perspective from just creating performance and quality-based value to creating essential value to help users to be a part of the development of solutions.
- Evolution of business models: The company aims to upscale the expanse of its collaborations and networking with like-minded organisations, and business associates to come up with better & newer solutions.
- More attention towards "diversity & inclusion": Believing that human resources are the key to bringing SF2030 to success requires investment in talent development and nurturing an inclusive organisational work culture.
- Improving supply chain resilience: to help endure rapid changes in the business environment, such as natural disasters and geopolitical risks, as well as operational efficiency, improvement in design development and decentralised production.
- Strengthening sustainability initiatives: To achieve carbon neutrality, reduce environmental impact by greenhouse gas emission reduction targets, and respect human rights on a global scale. By prioritising these mandates, OMRON will sharpen its competitive edge.
- Accelerating "data-driven corporate operations through DX”: to support business transformation and empower its people with a robust, safe, and progressive workstyle.
“With SF2030, our aim is to shape a better society that people can always depend on. An organisation that continues to live up to the high expectations of people from around the world,” sums up Mr Yamada.
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* For more details on SF2030 & Medium-Term Management Plan, please access here.