Teijin unveils medium-term management plan for 2017–2019
Japan’s technology firm, Teijin, has announced its new medium-term management plan for 2017–2019, named “Always Evolving,” to create value needed by society, by utilising its workforce diversity for enhanced competitiveness, improving core earnings through growth strategies, and establishing new core businesses through transformation strategies.
The long term vision of the plan includes evolving for future society as an enterprise that delivers new value, that helps solve social issues, that achieves continuous transformation by anticipating changes in the external environment, and that continues to create new value at all times.
The plan also includes transforming business portfolio to maximise business opportunities. Teijin will pursue its visions by ceaseless evolution and a determined ambition to create innovations that support tomorrow’s society by utilising its workforce diversity for enhanced competitiveness, and grow sustainably by maximising business opportunities group-wide and transform its overall business portfolio.
Teijin will implement both growth and transformation strategies focusing on the materials and healthcare business fields as the pillars of its operations and develop new businesses that are not yet contributing to profits at present into its core earnings sources, without merely relying on the continuation of existing businesses.
The company also has plans for growth strategies for materials business fields, with focus on aircraft and automobile businesses and addressing infrastructure needs and growth strategies for healthcare business filed to strengthen solutions in high-growth domains (demographic change and increased health consciousness solutions).
With plans to strengthen the management system platform, Teijin will pursue inter-business integration by integrating materials-related businesses into one materials business field. The new business development business unit will be split into units for materials and healthcare business to deepen group-wide collaboration with and absorption of these individual businesses. A newly established global strategy officer will develop cross-business regional strategies and a newly established information strategy representative will pursue smart projects on a group-wide basis.
Teijin will leverage IT to create new businesses and enhance group-wide business styles. In the medium-term, this will involve healthcare services development, smart plantations and innovation in business operating processes.
By fiscal 2019, Teijin aims to reduce total costs by JPY 20 billion from the fiscal 2016 level. This will be realised by completing measures in the revised medium-term management plan in 2014 and strengthening product cost competitiveness centred on growth businesses (JPY 11 billion), and restructuring into a small head office commensurate with business scale after the implementation of restructuring initiatives (JPY 9 billion).
New key performance indicators (KPI) will be established with an emphasis on both investment efficiency and earnings power. Other KPI including non-financial information will be established, such as net sales from transformation strategy projects and degree of diversity promotion, to visualise and measure business portfolio transformation. (GK)
Fibre2Fashion News Desk – India