Page 55 - Forbes - USA (February 2018)

SPECIAL ADVERTISTING SECTION

CANON:

STRUCTURAL CHANGES SPUR STRONG GROWTH

AT FUTURE-DRIVEN IMAGING TECH LEADER

Innovation and developing new areas of business are at the heart of Canon’s Excellent Global Corporation Plan,
as the company’s Chairman, Fujio Mitarai, explains.

One could be forgiven for thinking that Fujio from making analog products to digital. We Pivoting and Accelerating
Mitarai has discovered some secret energy also increased manufacturing efficiency Fortunately, the firm had both the resources
source all of his own. Whatever force powers tremendously through automation. Both and the strategic vision to execute this pivotal
the dynamic Chairman and CEO of Canon of these were smart moves, and they led to shift. In less than a decade, Mitarai oversaw
Inc., it must be both potent and inexhaust- increased growth for several years. However, a major transformation in the Canon Group’s
ible, because he is always in motion. Even it also became clear to me that our mainstay business portfolio, resulting in new busi-
after decades at the top at Canon, he never product lines were maturing. When I looked nesses that are already turning into powerful
seems to tire or slow down, and he remains at our cameras, printers and copiers, I knew growth engines for the company.
the firm’s most knowledgeable and articulate that they would continue to grow, but never For example, Canon is known worldwide
spokesperson. as strongly as they did in the past.” for its cameras and lenses, but concentrating
“Companies all talk about innovation these The inescapable conclusion was that only on individual consumers was not leading
days,” he says forcefully. “For Canon, it is a life- wringing more profitability from mature to strong growth. The obvious answer was
or-death issue. We must keep innovating if markets would be difficult. The answer, Mita- to shift more towards B2B solutions, selling
we want to grow.” rai felt, was twofold: the company must con- more professional-use products to corporate
Mitarai notes that all consumer product tinue to be innovative with its old product clients such as film studios. The company was
firms feel constant pressure to innovate by lines and create state-of-the-art products, able to do that with ease, and Canon prod-
developing new products, but for Canon, the but it must also rethink its business portfolio. ucts are now widely used by professional cin-
bigger challenge was to transform the very Canon needed to expand in areas where it ematographers. But Mitarai wasn’t satisfied.
structure of its business. already had expertise and look for new areas He was still looking to the future.
“Towards the end of the 20th century, we where it could leverage its existing technolo- “The world is steadily becoming more
saw the digital boom coming, and we shifted gies in higher growth business fields. crowded and more interconnected,” he

Fujio Mitarai, Chairman and CEO, Canon Inc. Axis's network cameras provide surveillance over urban areas.

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