Sony Company free essay sample

Kazuo Hirai, President CEO Entertainment Electronics Financial Services Sony Corporation 2 Electronics Corporate Strategy 1. Current Issues 2. Key Initiatives to Transform Electronics Business 3. Management Structure to Execute Key Initiatives Sony Corporation 3 Electronics Corporate Strategy 1. Current Issues 2. Key Initiatives to Transform Electronics Business 3. Management Structure to Execute Key Initiatives Sony Corporation 4 Electronics: Issues to be Addressed Business management speed Investment focus/selection based on long-term strategies Innovative products, services and technology TV business loss-making for 8 consecutive years Sony Corporation 5 Sony’s Strengths Global reach and brand recognition Technology development in digital imaging, game etc. Content business know-how in film, music game â€Å"Sony DNA† – The will drive to generate new value Sony Corporation 6 Electronics Corporate Strategy 1. Current Issues 2. Key Initiatives to Transform Electronics Business 3. Management Structure to Execute Key Initiatives Sony Corporation 7 Key Initiatives Strengthening core businesses Digital Imaging / Game / Mobile Turning around the television business Expanding business in emerging markets Creating new businesses accelerating innovation Realigning the business portfolio and optimizing resources Sony Corporation 8 Key Initiatives Strengthening core businesses Digital Imaging / Game / Mobile Turning around the television business Expanding business in emerging markets Creating new businesses accelerating innovation Realigning the business portfolio and optimizing resources Sony Corporation 9 Electronics: Core Businesses Concentrate investment technology development in 3 focus areas Digital Imaging / Game / Mobile Within Electronics, 3 focus areas to generate 70% of Sales and 85% of operating income in FY14 (target) Digital Imaging / Game / Mobile Sales Operating Income % of Sales 60% FY11 70% FY14 % of Operating Income 85% FY14 Sony Corporation 10 Core Businesses: 1. Digital Imaging Sales (bln yen) 1,600 Operating Income Sales Operating Income (bln yen) 400 †¢EDigital Imaging Consumer Products (Digital still cameras / Digital video cameras / Interchangeable lens digital cameras, etc) 1,200 300 Broadcast and Professional Products (Professional-use cameras, etc. ) 800 200 Image Sensors (Semiconductors) 400 100 †¢EFY14 Targets. Sales: 1. 5 trillion yen double-digit Sony Corporation 11 0 0 FY11 FY14 FY11 FY14 Operating Income: Target operating income margin Core Businesses: 1. Digital Imaging Consumer-use (Digital still cameras / Digital video cameras / Interchangeable lens digital cameras, etc) Broadcast and Professional-use (Professional-use cameras, etc. ) NEX-7 ? 77 F65 Signal processing technology Sony-only technology Image sensors Lens Sony Corporation 12 Core Businesses: 2. Game Operating Income (bln yen) 300 Sales (bln yen) 1,200 †¢EGame Hardware Software Sales Operating Income 1,000 250 800 200 PlayStation ®Network etc. 600 150. Targets Sales: 200 50 1 trillion yen 8% operating income margin Sony Corporation 13 Operating Income : 0 0 FY11 FY14 FY11 FY14 Target Core Businesses: 2. Game PS3 ®/PS Vita and peripheral businesses generating steady profit Strengthen expand network services business PlayStation ®Network: PlayStation ®Plus: PlayStation ®Suite: Grow full-title game downloads Enhance subscription service Increase casual game content compatible devices Sony Corporation 14 Core Businesses: 3. Mobile Operating Income (bln yen) Sales 1,600 Operating Income (loss) 200 Sales (bln yen) †¢EMobile Smartphone / Tablet / PC, etc. Targets 800 100 Sales: 400 50 1. 8 trillion yen Operating Income: Significant improvement 0 0 FY11 FY14 FY11 FY14 FY11 Sales and operating income do not include Sony Mobile Communications However, the dotted lines show sales from Sony Ericsson Mobile Communications as an equity affiliate of Sony Corp. for Sony Corporation the purposes of comparison with FY14 . 15 Core Businesses: 3. Mobile Sony Convergence Sony-only Technology Digital Imaging Game Technology Know-How Entertainment Assets Sony Corporation 16 Key Initiatives Strengthening core businesses Digital Imaging / Game / Mobile Turning around the television business Expanding business in emerging markets Creating new businesses accelerating innovation Realigning the business portfolio and optimizing resources Sony Corporation 17 Turning around the television business Target: Profitability in FY13 Solid execution of turnaround plan 1. Fixed business cost reductions 2. Operating cost reductions 3. Enhancing product competitiveness Sony Corporation 18 Turning around the television business: Solid execution of turnaround plan Fixed business costs 1. Fixed business cost reduction target: 60% Panel JV-related Other (Reduction from FY11 levels by FY13) Allows for flexible panel procurement Target 30% reduction excluding panel JV-related fixed business costs FY11 FY13 Operating costs 2. Operating cost reduction target: 30% (Reduction from FY11 levels by FY13) Model count reduction Target 40% reduction vs. FY11 levels by FY12 Operational improvement (supply chain, one-time charges, disposal costs etc. ) FY11 FY13 Sony Corporation 19 Turning around television business: Enhancing product competitiveness Differentiation through Sony-unique technologies LCD TV Evolution High resolution high sound quality Addressing regional needs Next-Gen Display OLED Sony Convergence Mobile Connectivity Simplified connection operation Crystal LED Display Outstanding resolution suited for large-sized screens Enhanced network services Sony Corporation 20 Key Initiatives Strengthening core businesses Digital Imaging / Game / Mobile Turning around the television business Expanding business in emerging markets Creating new businesses accelerating innovation Realigning the business portfolio and optimizing resources Sony Corporation 21 Expanding business in emerging markets Further expansion in rapidly growing emerging markets Emerging Market Sales Target (Electronics – All) Growth in Emerging Markets Deploy total Sony Group-wide operational strengths in emerging markets India: Strong consumer product sales operations 270 stores nationwide (Sony Centers, etc. ) No. 1 consumer AV/IT share made possible through stable supply chain management Leading the industry through high-quality content creation Promoting HD/3D content production through the Media Technology Center in Mumbai Brand enhancement through Entertainment Sony Pictures Television operates multiple highlyviewed television channels, including one of the most watched general entertainment channels, and targets a leading industry position. Sony Corporation 24 Key Initiatives Strengthening core businesses Digital Imaging / Game / Mobile Turning around the television business Expanding business in emerging markets Creating new businesses accelerating innovation Realigning the business portfolio and optimizing resources Sony Corporation 25 New Businesses: Medical †¢EMedical peripherals: FY14 sales target: 50 billion yen Printer Camera Monitor Recorder Current Businesses Medical Equipment B2B Business †¢EGrow medical equipment business (endoscopes, etc. ) By leveraging image sensor, lens, image processing and other Sony technologies Life Sciences . EEnter medical diagnostics business Acquired iCyt, maker of cellular analysis equipment Acquired Micronics, maker of medical and diagnostics equipment Sony Corporation 26 Accelerating Innovation: 4K 4K-related technology LSI 8K-CMOS Image sensor 4K signal processing image compression High-speed optical transmission module 4K ultra high resolution processing LSI SXRD: world’s smallest 4K display device CineAlta F65 World’s first 4K home theater projector VPL-VW1000ES Digital cinema projector SRX-R320 Expand lineup of professional-use and high-end consumer-use products Sony Corporation 27 Key Initiatives Strengthening core businesses Digital Imaging / Game / Mobile Turning around the television business Expanding business in emerging markets Creating new businesses accelerating innovation Realigning the business portfolio and optimizing resources Sony Corporation 28 Realigning the business portfolio Invest in core and new businesses through stringent selection and focus Invest in core and new businesses Realignment in other business areas Core Businesses Digital Imaging Game Mobile Small mid-sized LCDs Business spun off into JV Chemical products businesses Business transfer negotiations New Businesses Medical E-vehicle batteries energy storage Exploring alliances Others Sony Corporation 29 Realigning the business portfolio and optimizing resources 1. Modify the business portfolio 2. Restructure headquarters, subsidiaries, sales groups etc. Estimated headcount reductions of approx. 10,000 in FY12 Restructuring charges: 75 billion yen in FY12 Sony Corporation 30 Electronics Corporate Strategy 1. Current Issues 2. Key Initiatives to Transform Electronics Business 3. Management Structure to Execute Key Initiatives Sony Corporation 31 One Sony Sony Corporation 32 One Management Sony Corporation 33 New Management Structure CEO CFO CSO Entertainment Electronics Financial Services Sony Corporation 34 New Management Structure CEO: K. Hirai CFO : M. Kato CSO : T. Saito Technology: S. Nemoto Product Strategy: K. Suzuki S. Nemoto K. Suzuki Direct to CEO T. Suzuki H. Yoshioka Digital Imaging Professional Solutions VAIO Mobile Sony Mobile Communications Sony Computer Entertainment Home Entertainment Sound Sony Network Entertainment Semiconductors Device Solutions Medical Headquarters Global Sales Marketing Corporate RD, System and Software Technology, Advanced Device Technology UX / Product Strategy / Creative Manufacturing, Logistics, Procurement and Quality Sony Corporation.