Fujio Mitarai
The first time we visited Canon, back at the beginning of this century, the company was excited about the second five-year installment of its Excellent Global Corporation Plan. CEO Fujio Mitarai explained that the plan was designed to evolve Canon from a
He explains how the company’s various five-year plans, called Phases, have carried it and why the newest plan is the culmination of Canon’s strategy. “During Phase IV of the plan (2011–2015), a global recession impacted all areas of our business,” he says. “In response, we focused our energies on further strengthening our financial structure so that we could emerge stronger and better positioned.”
Mitarai says he is determined to see the company rise to even greater heights through Phase V, which began last year.
“I want the Canon of 2020 to look completely different from the way it looks today,” he says. “Two key strategies are driving that transformation: First, we are strengthening our manufacturing capabilities by reinforcing our commitments to robotics and automation; secondly, we are expanding all our current business lines while at the same time pursuing M& A in areas such as commercial printing, network cameras and advanced medical equipment. All of that is aimed at maximizing new growth opportunities.”
A Shift Toward B2B
Mitarai explains that Canon has three major business groupings— cameras, office equipment and industrial equipment—and all of them are currently working to boost their B2B offerings.
“Cameras have always been a consumer business,” he says. “But now we are looking beyond the consumer market and developing more equipment for professionals, particularly for filmmaking.
“Our Cinema EOS System lineup of digital cinema cameras and lenses is already a hit in the film industry. Cinematographers around the world like getting such exceptional image quality in a compact, lightweight system that is extremely durable and so maneuverable that they can shoot in incredibly tight locations and even in lowlight conditions.
“Our of f ice equipment l ines— printers, copiers, projectors and more— are already well known, and we will continue striving to create state- of- the- art multifunction office- automation equipment. We are also moving into commercial printing,” Mitarai adds. “There is a strong and growing market for corporate in-house printing solutions that offer accurate color reproduction and highquality output. Thanks to our acquisition of Océ, a Dutch maker of printing equipment, our lineup now delivers all of this plus excellent productivity.
“As for industrial products, IC (integrated circuit) chips keep getting smaller. Desktop PCS have given way to tablets and cell phones, which means increased demand for extremely high- precision ICS. Our excellent semiconductor lithography equipment can meet the challenge of ultrafine nanometer-level patterning,” he explains.
Network Video Systems
Canon always has so many new technologies. What is the biggest story of the moment?
Mitarai responds, “That would be network surveillance systems. They’re already becoming a hot growth area worldwide, and we are confident they will keep on growing for the foreseeable future. One of the keys to that business is having outstanding cameras in place, and that is our specialty.
“For example, our new ME20F- SH ultrahigh-sensitivity multipurpose camera makes use of Canon’s most advanced image- sensor technology. As a result, it can operate in extreme low-light situations, capturing clear color images with minimal noise in as little as 0.0005 lux of ambient light (roughly equivalent to an ISO of 4,000,000), which means it can use starlight to take photos that look as though they were shot in broad daylight. This is a truly amazing camera, and it is already beginning to revolutionize network video surveillance.
“To grow this business, Canon has acquired some of the top players in the field, such as Axis Communications of Sweden, which is the leading company in network video solutions and is well known for its outstanding image-processing technology. We also acquired a Danish company, Milestone Systems, which is the market leader in video-management software. Each of these companies is outstanding by itself, but combining them synergistically with Canon’s own technical expertise produces something greater than the sum of the parts. For one thing, Axis connects us to roughly 75,000 partner firms including system integrators. By combining our state-of-the-art imaging technology with Axis’s network image-processing technology and Milestone’s video-management technology, we can offer a broad spectrum of innovative network video solutions.
“In the first quarter of this year Axis will release an interchangeable-lens network camera, the AXIS Q1659, that can use a range of standard Canon EF lenses. By combining our various areas of technical know-how, we can create new value for this growing field. This will reinforce our position as the market leader for some time to come.”
So, this technology is all aimed at security surveillance, crime prevention and the like?
“Of course, security is a major concern around the world today. But these systems are just as valuable for monitoring the manufacturing process in a factory, for example, or doing market research in a department store. Any situation that benef its from having high- def inition color video and outstanding imagemanagement technology will showcase these new systems,” Mitarai explains.
Imagining Better Health Care
Is there any other area of which the Chairman is especially proud?
“That’s a difficult question,” Mitarai says with a smile. “But the answer is yes: medical equipment. Canon has a very long history with medical equipment. We even made an X- ray camera back in 1940. Since then, we have developed many new technologies, from portable X- ray devices to retinal cameras and optical coherence tomography (OCT) equipment that can scan high-resolution 3-D images inside the eyeball, such as the blood vessels in the retina, to help diagnose ophthalmic disorders.
“We plan to continue making advances in the field of medical equipment and aim to be a major player worldwide. We have already begun a program of both internal development and M& A to achieve that goal.”
Mitarai sits back for a moment, looking pleased with something. Perhaps his coming profit forecasts?
“To be honest,” he says, “nothing makes me happier than to see Canon products being used to support global health care and to save lives. That has long been one of our missions, and it is one we have never forgotten. Our health care operations are not yet the biggest contributors to our sales and profit numbers, but they are among the operations of which we are most proud.”
Mitarai’s dream of completely transforming the company now seems close to realization. Will Phase V be the final step, the culmination of his efforts?
“No, there is no such thing. There is always more to do,” says Mitarai. “Canon is all about undertaking challenges, not simply growing for the sake of getting bigger. We are happy that while both the parent company and the group are growing sustainably, we are also making a meaningful contribution to global society. That’s why Canon exists.”
“I want the Canon of 2020 to look completely different from the way it looks today.” — Fujio Mitarai, Chairman and CEO, Canon Inc.