Page 80 - Forbes - USA (March 2020)

SPECIAL ADVERTISING SECTION
FUJIO MITARAI AIMING TO POSITION
CANON FOR FURTHER GROWTH
INTO THE MID-21 CENTURY
Fujio Mitarai is looking to position Canon Inc.
for future growth into the middle of the 21st
century by building on the transformation of
his company’s business portfolio to make the
switch from a B2C to a B2B company and stay
abreast of global market developments.
The year 2020 marks the end of Phase V of
this business portfolio transformation, and the
multinational company that is listed on both
the Tokyo and New York stock exchanges con-
tinues to advance steadily toward the targets the Medical Field
set by Mitarai.
“We are transforming our business
portfolio to stay in sync with the
changing times,” Mitarai says.
2 Japan
ST
The transformation of Canon’s business
portfolio includes seeking synergies in new
business areas that leverage its existing
assets, including both technology and human
resources, while also continuing to pursue a
strategy of merger and acquisitions. “We are
transforming our business portfolio to stay in
sync with the changing times,” Mitarai says. expected to see annual growth in excess of
Canon at the Cutting Edge in
Mitarai has earmarked the medical field as an
area for potential growth and in December
2016, Canon acquired Toshiba Medical Sys-
tems Corporation.
Over the short term, Canon is looking
to expand its lineup of diagnostic imaging
equipment, such as CT, MRI and ultrasound,
while also boosting their competitive
capabilities.
Mid- to long-term growth includes a focus
on regenerative medicine, which could have
far-reaching applications, especially in an
aging society. Since August 2019, the com-
pany has engaged in joint research with Nobel
Prize winner Professor Shinya Yamanaka of
Kyoto University into induced pluripotent
stem (iPS) cells, and how they could be used
to replicate injured tissue, test drug efficacy
and develop new medicines. Canon is con-
tributing advanced optical, measuring and
diagnostic imaging technologies to the proj-
ect. Together with Yamanaka and his research
group, Canon is confident they can make a
contribution to the further development and
adoption of regenerative medicine. It’s still
in the early stages, according to Mitarai, but
there is huge growth potential.
M&A: Mitarai Adopts
Two-Pronged Strategy
Canon's network camera business boasts
annual growth of more than 15% outpac-
ing the market, and Mitarai aims for further
dominance in this area with a two-pronged
strategy of acquiring various hardware and
software businesses.
In 2015, Canon acquired Axis Communica-
tions, a global leader in network video equip-
ment, less than a year after the acquisition of
Milestone Systems, a leader in video manage-
ment software for such equipment. In addi-
tion, in 2018, Canon acquired leading video
analysis solution provider BriefCam.
The global network camera market is
10% over the mid- to long-term, with such
fields as security and law enforcement mak-
ing up a major share.
Mitarai explains, “Using a camera equipped
with the ultra-high-resolution 250-megapixel
CMOS sensor and 800mm telephoto lens, it is
possible to identify the lettering on the side of
an aircraft from a distance of about 18km. This
can help security patrols view objects that