Epson Corporation has announced the establishment of a new long-range corporate vision and a new mid-range business plan. The Epson 25 Corporate Vision outlines the path the company should follow over the next decade, from the 2016 fiscal year ending March 2017 to the start of the 2025 fiscal year. Meanwhile, the Epson 25 Mid-Range Business Plan (FY2016-2018) is a three-year plan for the first phase of work toward achieving the vision.
Under the SE15 Corporate Vision that began in FY2009 and the SE15 Updated Mid-Range Business Plan the company has followed since FY2013, Epson focused on its strengths and transformed its business portfolio by shifting to new business models and product lineups in existing businesses and by opening up new business domains. On the other hand, we were unable to fully advance in some new business areas. Epson identified issues in these areas that it must address to secure future growth. Specifically, we will have to acquire knowledge in these new areas. We will have to expand and upgrade our sales and support organization here and in other priority areas. On the whole, however, the actions taken under SE15 are yielding results in each business. The company is now structured to generate a steady flow of cash and, with exchange rates acting as a tailwind, Epson has achieved a solid financial turnaround.
The Epson 25 Corporate Vision, which is formulated based on considerations such as changes in the business environment and mega trends, describes how Epson wants to be in 2025. Epson 25 identifies four areas where it will drive innovation: inkjet innovation, visual innovation, wearables innovation, and robotics innovation. Microdevices are seen as supporting these areas of innovation. Epson will generate value in the form of smart technologies, the environment, and performance across these four areas of innovation. The company will also strengthen IT and business infrastructure in human resources, technology, manufacturing, sales & support and environment to support the achievement of the Epson 25 Corporate Vision.
Epson will take a three-phase approach to realizing the Epson 25 Corporate Vision. The Epson 25 Mid-Range Business Plan (FY2016-2018) is the plan for the first phase. In this first phase, we will sustain the achievements made based on the strategies executed to date, and will aggressively invest as necessary in product development and lay a solid foundation for achieving the Epson 25 vision.
Epson will look to generate steady cash flow while strategically investing in future growth in an ongoing basis, with investment primarily geared toward research and development, increased manufacturing capacity, automation, strengthening information and communications technology, alliances, and mergers and acquisitions.
