CANON: VISIONARY RESILIENCE
Despite the significant impact of the COVID-19 pandemic, Canon is continuing to reinvent itself into a diversified solutions provider under the leadership of Chairman and CEO Fujio Mitarai.
The year 2020 was very challenging for businesses around the world, and global manufacturers were no exception. The COVID-19 pandemic disrupted life in public spheres— from retail outlets to offices and factories— as well as supply chains and distribution. Canon, however, has been engaged in a historic transformation into a strategically diversified imaging solutions provider that is well-positioned to weather the crisis.
A steady, experienced hand can guide businesses in uncertain times. Chairman and CEO Fujio Mitarai has led Canon since 1995, navigating it through other challenges such as the Global Financial Crisis of 2007-2008. Canon’s business portfolio has adapted to enormous changes over the past few decades, not least of which has been the shrinking of the traditional camera market with the advancement of smartphones. However, Mitarai’s vision has led the company through five consecutive five-year phases of the medium-to-longterm Excellent Global Corporation Plan, with Phase V completed in 2020. Canon is now more efficient, nimble and responsive to markets, making it as close to future-proof as possible.
Weathering the Storm
“Since we are truly a global company—with 25% of sales in Europe, 29% in the U.S., 22% in Asia and Oceania, and 24% in Japan—we are greatly affected by global developments, and this pandemic has been no exception,” says Mitarai. “The global economy was already quite divided even before it began, with antiglobalization movements such as Brexit and “America First” policies. When the coronavirus spread, the whole world hit the pause button.”
With the pandemic affecting so many countries, the second quarter of 2020 saw record drops in economic output. But this was followed by the lifting of lockdowns and large-scale economic stimulus packages, leading to recoveries in employment and spending in the United States. The pandemic also had unexpected effects: Canon technicians had to quarantine for weeks when traveling overseas to install steppers— essential equipment for semiconductor production. Meanwhile, with offices locked down, companies were not using office multifunction devices, printers and consumables such as toner. But the flipside is that with so many people working from home, Canon has seen favorable sales of personal printers. Meanwhile, as global businesses resumed normal operations in the third quarter of 2020, Canon’s own business recovered.
Unlocking Vast New Markets
Despite the economic disruption, Canon has continued its long-term transformation. Mitarai follows three principles when entering a new business: it must be sustainable, it must have a vast market, and it must have affinity with Canon’s existing businesses and technologies. For example, Canon has applied optical technology cultivated by its camera business to other industries. The company entered the network camera business and expanded its presence by acquiring Sweden’s Axis Communications, a leading company in the field, in 2015. The firm’s expertise in network cameras resonates with Canon’s extensive experience in professional
and consumer cameras. Once limited mainly to these areas, cameras are now a key part of industrial businesses, with applications ranging from network cameras in smart cities to computer vision for collaborative robots. Canon has continued to innovate with developments such as the world’s first 1-megapixel single photon avalanche diode (SPAD) image sensor, which will enable cameras in vehicles and robots to capture highresolution imagery in three dimensions. By leveraging the lens, image sensor and image processor technologies developed through its camera business, Canon is expanding further into the vast market of the optical industry.
Other examples of change include Canon’s entry into commercial and industrial printing with the acquisition of Dutch printing company Océ, now Canon Production Printing, in 2010. Not only did this build on Canon’s existing home and office printer lineup, it gave the company access to the enormous market of industrial printing, including labels and packaging. Similarly, in 2016, Toshiba Medical Systems Corporation was welcomed into the Canon Group. Since renamed Canon Medical Systems Corporation, the company is a leading provider of diagnostic imaging systems such as X-ray, magnetic resonance imagery (MRI) and computed tomography (CT). Canon has been striving to make its diagnostic imaging equipment even better—one such example is the Aquilion Exceed LB CT system, which uses artificial intelligence technologies to improve the clarity of images. In the field of healthcare IT, AI can help address discrepancies in how radiologists interpret images, facilitating quick and accurate diagnosis.
In addition to these new businesses, Canon has transformed itself by continuing to build upon its traditional strengths. For instance, Canon has been a leading semiconductor lithography equipment maker for 50 years, producing reliable machines with a 99% operating rate. While it was believed that circuit miniaturization had reached its technological limit, Canon has developed nanoimprint lithography, which is considered the most advanced technology for the miniaturization of circuit patterns on semiconductor chips. With nanoimprint, circuit patterns can be produced with higher resolution and more uniform results than conventional optical lithographic approaches. In addition, nanoimprint semiconductor production equipment does not require the use of a light source or high-aperture lens elements, thus making possible simple configurations and compact designs that enable users to install a cluster of systems for increased productivity. Meanwhile, Canon plans to intensively invest in and develop OLED display manufacturing equipment for smartphones and TVs.
Powering Future Innovation
As Canon turns to the future after completing Phase V of its Excellent Global Corporation Plan, Mitarai is determined to continue going all out to transform the company’s camera and printer businesses while also expanding its medical and industrial equipment businesses. His goal is to have these businesses account for at least 50% of Canon’s total business by 2025.
“I truly believe every company has to grow by meeting the demands of society in which it operates,” says Mitarai. “The worth and capabilities of a company depend on factors such as the market, economic policy and innovation. In terms of innovation, we’ve seen great advancements in digital transformation, and we’re continuously searching for and making large investments in new technologies. But this process is really about transforming ourselves. We must continue to change, because only by transforming ourselves can we evolve and move forward.”
A native of Kyushu, Japan, Mitarai decided not to follow his father and brothers into medical school, but instead joined Canon, where his uncle served as the first president. Five years later, he was posted to Canon’s U.S. headquarters, where he stayed for 23 years, eventually becoming President of Canon U.S.A. Back in Japan, he was later appointed President of Canon Inc. before becoming Chairman and CEO. global.canon