Toshiba focuses on e-business for growth

Toshiba has unveiled its three-year business plan to achieve high growth and profitability by concentrating on the fast-growing mobile applications and networking, while preserving its core products.

The company is now fusing its market-defining IT products – portable PCs, cellular phones, and mobile AV equipment, and semiconductors and LCDs – with customer-driven solutions as a means to offer breakthrough products and services.

In April 1999, Toshiba introduced an in-house company system. The eight companies it established – now nine with the recently announced iValue Creation Company – were given the autonomy to put in place business systems and procedures that would make them winners in the global marketplace. The new mid-term plan is the first under this system.

In the next three years Toshiba will concentrate resources on system solutions and Internet services. In-house companies will initially concentrate capabilities in six core business areas: mobile applications; network consumer products; media cards; digital broadcasting; Internet services; and Intelligent Transport Systems (ITS) and automotive electronics.

In Internet business, the iValue Creation Company will lead the way in developing consumer-oriented mobile Internet services. Toshiba will initially focus on exploitation of B2C Internet business in Japan, reinforcing its “Eki-mae Tanken Club” portal and promoting Fresh Eye, one of Japan’s most popular search engines.

In content, Toshiba will seek to further its partnership with AOL-Time Warner, Warner-EMI, Kadokawa Publishing, and Nippon Television Network.

In the B2B field, the Information and Industrial Systems & Services Company will set up the e-Net Division on April 1 to promote full fledged outsourcing and ASP services to Toshiba customers.

In digital data broadcasting, Toshiba will exploit the new business area of e-commerce over broadcasting, using the Media Serve Company Ltd. to take the lead in developing a new business model utilising the Internet.

Toshiba is targeting expansion of its system solutions and services businesses as the key to growth in the information systems field. The company will seek to become a leading source of e-system solutions for government, and to utilise advanced capabilities in front-end processing technology to provide sophisticated system solutions for the retail, manufacturing and financial sectors as well as ITS.

The company is also reinforcing its capabilities as a system solution provider of full-support services, across the range of consultation, system construction, operation and maintenance of information systems and e-commerce platforms.

Although Toshiba will allocate additional human resources to growth business fields, when necessary, the number of employees of Toshiba and Toshiba Group in Japan will be reduced by 8,500 by the end of March 2003. The number of Group employees in overseas operations is expected to increase in line with expansion of international business.


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