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March 29, 2001
A New Group Structure for the Next Stage of Integrated, Decentralized
Management
-Transforming Sony into a"Personal Broadband Network Solutions Company"-
(Tokyo, Japan)
Sony Corporation today announced its intention to transform itself into
a Personal Broadband Network Solutions Company for the coming
broadband network society which is forecast to arrive around the year
2005. As an integrated entertainment company, Sony is making organizational
changes aimed at deepening its interactive relationship with millions
of customers worldwide, offering a variety of products and services
optimized for the broadband society.
As the broadband network era approaches, Sony will capitalize on its
unique combination of hardware and content assets. Sony has already
moved positively in this direction with AV/IT convergence, the "4
network gateway" strategy, the strengthening of semiconductor/device
development and the creation of a network compatible content business
model. "Building on these achievements", said Nobuyuki Idei,
Chairman and CEO, "Sony will continue to focus on and consolidate
its unique resources in brand recognition, electronics hardware expertise,
entertainment business knowhow and venture business development both
within and outside the company. In enhancing group corporate value,
we will pursue "soft alliances" with outside companies that
will complement our existing internal resources, and accelerate the
pace of change."
Sony's plans for change in the five pillars of its global business (electronics,
entertainment, games, internet/communication services and financial
services) are as follows:
1. New Group Headquarters to Function as Hub for Group Strategy
HQ will now be reorganized around three major functions to effectively
coordinate the main pillars of Sony's business. The new Global Hub (GH)
will focus on overall management strategy and will provide a unified
global vision.
2. Electronics Businesses Strengthened: Pursuing a Ubiquitous Value
Network
Sony intends to heighten the profitability of its electronics-related
businesses by enhancing product development and expanding the network
connectivity of its electronics devices. Management's intention is to
create a powerful business model that links hardware, contents and services
through the agency of the network. "This will be based on an ubiquitous
value network that is always connected, on demand and interactive",
said Kunitake Ando, President and COO, "It will be a strengthened
form of our 4 network gateway strategy, integrating the electronics,
games and internet/communications service businesses."
3. Network-Based Content Distribution: Key for Entertainment Business
and Financial Services
Sony will also energetically pursue a network-compatible business model
for both its entertainment and financial services, largely focused on
content distribution. Strategy formulation functions for the US-based
entertainment business will now be integrated into the Global Hub, thus
accelerating the pace of business development.
Action Plan for FY 2001
- 1. New Group Headquarters to Function as Hub for Group Strategy
- 1) Global Hub (GH) as Sony Group HQ
The new Global Hub (GH) will be led by Sony's top management team
consisting of Nobuyuki Idei, Kunitake Ando and Teruhisa Tokunaka (Executive
Deputy President and CFO). The GH will work to enhance Sony's total
corporate value by strategically unifying the Group's resources and
activities for the five key business pillars. In creating value for
the entire group, the GH will manage strategic proposals and far-reaching
"think tank" initiatives. This will include the newly created
Strategy Platform and its Strategy Institute (headed by Corporate
Senior Executive Vice President Akiyoshi Kawashima). The strategic
functions for Sony's financial service business as well as its US
entertainment business (directed by Howard Stringer, Chairman and
CEO of Sony Corporation of America) will be key parts of the GH.
- 2) Management Platform for Global Staff Support
The new Management Platform is a horizontal organization consisting
of critical corporate staff functions including accounting, finance,
legal, intellectual copyright, human resources, information systems,
public relations, external affairs, design etc. This platform will
offer consistent support services throughout the Sony Group. The intention
is to utilize information technology and new work processes to help
the Group realize "speedy management" on a global scale.
A new position of Chief Administration Officer (CAO) will be created
in the GH to lead this activity (Corporate Senior Executive Vice President,
Akira Kondoh).
- 3) Electronics HQ for Related Businesses
- Sony's core electronics business has made rapid progress in the
area of AV/IT convergence and in developing network-compatible products.
In order to advance this trend for the broadband era, Sony will now
unify all of its electronics-related business under the new Electronics
HQ. Headed by Kunitake Ando, the following initiatives are announced:
- Integrating electronics, games, internet/communication services
Sony anticipates that game and internet/communication services
will be deeply integrated with electronics hardware business in
the broadband era. Thus, all three of these business sectors will
come under Mr. Ando's supervision.
- Reorganizing Network Companies (NCs) for the broadband era
The five present NCs, currently organized along product categories
will be restructured into seven "solution-oriented"
NCs. Resources will thus be directed into growth areas and authority
further devolved to companies within the NCs in accordance with
the "integrated, decentralized" management system.
- Introducing horizontal platform concept
Sony's NC system will be horizontally supported by three newly established Technology Centers, the Engineering, Manufacturing and Customer Services (EMCS) Platform, and a Sales Platform (comprising regional sales companies and region by region-based net direct marketing). The result will be enhanced total competitiveness and speedier, more efficient business practice.
2. Electronics Businesses Strengthened: Pursuing a Ubiquitous Value
Network
Through its "4 network gateway" strategy, Sony has already laid
the foundations for connecting its electronics hardware to the network.
For Sony, the key broadband gateways will include Digital TVs and Set-Top
Boxes, mobile phones and PDAs, advanced VAIO PCs and PlayStation.
The next goal is to realize hardware which will exploit the benefits of
a ubiquitous network which is constantly connected, on-demand with interactive
communication. The aim is to have an array of electronics devices which
are seamlessly connected to each other and the network. Sony believes
this will be the engine for further profitability in the electronics business.
By integrating hardware further with content and services, adding Sony's
unique value and creating a ubiquitous value network, appealing entertainment
can be delivered to our customers.
- 1) Developing Hardware for the Ubiquitous Value Network
-
- Creating user-friendly hardware which fuses AV/IT and communications
technology Moving forward, Sony will focus on developing mobile
devices and home network products that add communications technology
to existing AV/IT convergence technology so customers can easily
access and enjoy the services available over the broadband network.
For mobile products, PCs will be made wireless compatible, PDAs
will be upgraded and the connectivity of electronics products
enhanced. For home products, Information Technology will be applied
to promote broadband network gateways centering on TVs. By energetically
introducing IPv6 technology into hardware products, an almost
limitless number of network addresses can be created, and we will
work toward the creation of a new business model based on this.
-
- Strengthening the device business to develop semiconductor,
display hardware
Since semiconductors increasingly determine not only the functionality
and quality of hardware but the competitiveness of an entire business
model, Sony will strengthen its capacities for System LSI development.
The S&S Architecture Center will facilitate this activity.
Superior display technology is vital in creating user-friendly
interfaces and Sony will work aggressively in this field, integrating
its existing CRT business with the creation of flat panel displays
such as organic EL displays.
- 2) Constructing a Network Platform
-
- Establishing a center to promote a common network platform
for the entire group
Sony Finance International in Japan currently operates the network
settlement system Direct e-SCOTT which is speedy, secure and highly
reliable. It is now intended to standardize the network platform
elements of billing, settlement, authentication and copyright
protection on a global basis. This will heighten customer convenience,
facilitate tieups with related businesses and assist with the
creation of an integrated business model within the Ubiquitous
Value Network. The section responsible for promoting this activity
(the Broadband Network Center) will be one of the Group's key
Technology Centers.
- 3) Strengthening Internet/Communication Services
-
- Accelerating network services
Sony Communication Network Corporation (SCN) started Sony's internet
service provider business, So-net in 1996. So-net currently has
over 1.6 million subscribers and has developed a unique range
of services and content while solidifying the Sony group's network
platform business. SCN will continue to enhance its content and
services for the broadband era, connecting to Sony's network-compatible
hardware.
In July 2000, Sony launched its corporate broadband communications
service "bit-drive". This wireless communication service targets companies
developing business on the net and provides a range of application
services.
For the CATV broadband infrastructure, AII Inc. was formed by Sony
Corporation, Tokyu Corporation, Kansai Electric Power and Itochu Corporation.
This company commenced digital video distribution in January 2001
for the Japanese market. At present this service is handled by 33
cable stations and reaches 200, 000 households. Through fiscal 2001,
it is planned to increase these figures to 100 stations and one million
households.
Sony continues to explore various business opportunities with regard
to Fiber To The Home (FTTH).
-
- Enhancing broadcast media businesses
Sony Broadcast Media Co., Ltd. will manage Sony's CS 110
satellite broadcasting business in Japan which is due to start
next Spring. A decision has been reached to invest in 10 companies
including InteracTV Co., Ltd. For CS 110 broadcasting as well,
Sony will concentrate on interactive services which highlight
close communication with the user. Not only entertainment content
but financial service content will be included in the provision
of new services.
- 4) Creating New Forms of Entertainment to Integrate Hardware,
Content and Services
-
- Accelerating the development of a new integrated business
model
Sony has already developed a range of network services which
augment the attractiveness of hardware. These include PercasTV
in Japan, which relays live broadcasts over the Internet - the
images are taken by a video camera embedded in the notebook PC
VAIO-GT. In Japan and the USA, Sony has worked with partner companies
to develop the new Image Station service. This provides new ways
on the Internet to enjoy still images and video taken by digital
still cameras and camcorders. And in Japan, a Personal IT TV called
Airboard allows supremely easy access to the net in a "home mobile"
environment. Sony will continue to integrate hardware, contents
and services in a new business model to create new forms of entertainment
and convenience.
-
- Providing hardware, content and services over the Internet
With the introduction of Sony Style.com Japan Inc. and PlayStation.com,
Sony has already expanded its direct sales offerings in Japan.
In the U.S. and Europe, Sony Style.com and Sony Style.com Europe
were also launched in 2000, with significant growth expected in
the year ahead.
-
- Developing a PlayStation Network
Sony Computer Entertainment (SCE) has moved decisively to
create new forms of computer entertainment through the development
of network business. An agreement with NTT DoCoMo in Japan will
link PlayStation with the i-mode mobile phone and this summer
a broadband-compatible HDD unit will be introduced. SCE is also
giving strong support to software creators in order to develop
attractive content for the broadband era. As part of this effort,
PS.com, SFI and SCN are cooperating to provide solutions for network
business.
- 3. Network-Based Content Distribution: Key for Entertainment
Business and Financial Services
While retaining their existing strengths, Sony's entertainment
and financial service businesses will be developed in a network compatible
manner with electronic content distribution.
- 1)Broadband Entertainment Content
Music and film video content will be digitally distributed over the
broadband network in addition to the more conventional forms of distribution
(e.g. location based movie theaters or packaged media such as CD/DVD
etc.) In constructing this distribution business model, Sony has asserted
that the copyrights of content owners and artists will be fully protected.
- Digital distribution of films
In the U.S. Sony Pictures Entertainment (SPE) is already testing
a system for the future distribution of digital film contents.
It is planned to launch this business later this year in cooperation
with other content providers. SPE's on-line game division is also
working on joint projects within the film business. In Japan,
the AII Inc. platform is being developed for digital film distribution.
- Digital distribution of music
In May 2000, Sony Music Entertainment Inc. reached an agreement
with Universal Music, a division of Vivendi in France, to establish
a joint venture company dedicated to the digital distribution
of music. Work is continuing on the development of a business
model. In Japan, Sony Music Entertainment (Japan) has established
bitmusic, where customers can pay for music downloads (over 500
songs now available). In April 2000, SCN set up LabelGate, a music
distribution platform with joint investments from Japan's leading
music companies. LabelGate's music distribution is now being conducted
on a wide scale.
- 2) Development of Network Compatible Financial Services
Sony is developing one-to-one personalized financial services for
its customers as exemplified by the "Life Planner" Consultant system
of Sony Life Insurance in Japan. With the coming of the broadband
network era, Sony Assurance has started direct sales through the internet.
And Sony's net bank in Japan, Sony Bank Inc is scheduled to start
in June 2001. In addition to these core financial services, Sony aims
to establish network settlement systems globally which utilize its
non-contact IC card technology.
- Establishing a net bank
On March 23, 2001, Sony was granted a provisional license for
its planned internet bank in Japan which is targeted at personal
customers. It is planned to establish Sony Bank Inc on April 2,
2001 with a view to obtaining a full banking license and starting
operations in June 2001.
- Electronic money service
In cooperation with SFI, NTT DoCoMo, Toyota Motor Corporation,
Sakura Bank and others Sony has established "bitwallet Inc." This
company will utilize Sony's non-contact IC card technology called
FeliCa, which guarantees high levels of security and high-speed
data transmission to provide the prepaid electronic money service
"Edy". Full service in Japan will start from October 2001.
<Attachment>
<Sony Group Organization as of April 1, 2001
>
- <Global Hub>Managed by CEO,COO,CFO
- Strategy Platform
| -Supervised by: |
Akiyoshi Kawashima
(Corporate Senior Executive Vice President) |
| Strategy Research
Institute |
| President: |
Nobuyuki Idei(Chairman
and CEO) |
| Co-President: |
Akiyoshi Kawashima(Corporate
Senior Executive Vice President) |
| Deputy President: |
Tetsujiro Kondo(Corporate
Vice President) |
-
| Chief Administration Officer |
Akira Kondoh(Corporate
Senior Executive Vice President) |
| Corporate Planning
& Control |
| -Supervised by: |
Teruhisa Tokunaka(Executive
Deputy President & CFO) |
| Senior General Manager: |
Takao Yuhara |
-
- <Management Platform>
-
- IS Solutions Center
-
| Supervised by: |
Teruaki Aoki(Corporate Executive
Vice President) |
- Creative Center
-
| Supervised by: |
Kunitake Ando(President and
COO) |
- Corporate Human Resources
-
| Supervised
by: |
Kenichiro Yonezawa
(Corporate Executive Vice President) |
- Corporate General Affairs
-
| Supervised
by: |
Kenichiro Yonezawa
(Corporate Executive Vice President) |
- Corporate Legal & Intellectual Property
-
| Supervised by: |
Teruo Masaki
(Corporate Senior Executive Vice President) |
- Corporate Accounting & Finance
-
| Supervised by: |
Akira Kondoh
(Corporate Senior Executive Vice President) |
- Public Relations
-
| Supervised by: |
Mitsuru Ohki(Corporate Senior
Vice President) |
- Corporate External Relations
-
| Supervised by: |
Mitsuru Ohki(Corporate Senior
Vice President) |
- Corporate Environmental Affairs
-
| Supervised by: |
Sumio Sano(Corporate Executive
Vice President) |
- <Electronics HQ>Managed by COO
-
- CFO,Corporate Strategy Division
-
| Senior General Manager: |
Tadashi Saito |
- Corporate Planning & Control Division
-
| Senior General Manager |
Keiji Nakazawa |
<Network Company>
- Broadband Solution Network Company(BSNC)
-
| -Supervised
by: |
Shizuo
Takashino(Corporate Senior Executive Vice President) |
| NC
President: |
Shizuo
Takashino(Corporate Senior Executive Vice President) |
| Co-President: |
Masayuki
Nozoe(Corporate Senior Vice President) |
| Deputy
President: |
Kozo
Kaminaga(Corporate Vice President) |
| <Business> |
Products
and solutions creating a value chain from [B to B](Business
to Business) to the home |
-
| B & P Co. |
[Broadcast equipment] |
President: Kozo Kaminaga
(Corporate Vice President) |
| Server Solution Co. |
[Server equipment] |
President: Takao Hiramoto |
| Home Video Co. |
[Video,DVD] |
President: Masakazu
Sonoda |
| Home Audio Co. |
[Audio] |
President: Yoshinori
Yamamoto |
- Mobile Network Company(MNC)
-
| -Supervised
by: |
Shizuo
Takashino (Corporate Senior Executive Vice President) |
| NC
President: |
Keiji
Kimura (Corporate Vice President) |
| <Business> |
Products,
applications, services combining AV/IT, wireless, network technologies
for mobile entertainment |
-
| VAIO Notebook
Computer Co. |
[Notebook PC] |
President: Keiichiro
Shimada |
| Handheld Computer Co. |
[PDA] |
President:Masanobu
Yoshida |
| Personal Audio Co. |
[Personal Audio] |
President: Takashi
Fukushima |
| e Vehicle Co. |
[Vehicle Devices] |
President: Toru Yamamoto |
| Personal Video Co. |
[Video Cameras] |
President: Shoji Nemoto |
| Personal Imaging Co. |
[Digital Still Cameras]
|
President: Shigeki
Ishizuka |
- Digital Telecommunications Network Company(DTNC)
-
| NC
President: |
Katsumi
Ihara (Corporate Executive Vice President) |
| Deputy
President: |
Yoshiro
Kido |
| <Business> |
Mobile
phone handsets |
- Home Network Company(HNC)
-
| -Supervised
by: |
Suehiro
Nakamura (Executive Deputy President) |
| NC
President: |
Tsutomu
Yamashita (Corporate Vice President) |
| <Business> |
Products,
applications, services focusing on TVs and PCs as home network
gateways |
-
| Home Visual
Co. |
[TVs] |
President: Tsutomu
Yamashita
(Corporate Vice President) |
| Network Terminal Solutions
Co. |
[STBs] |
President: Koichiro
Tsujino |
| VAIO Desktop Computer
Co. |
[Desktop PC] |
President: Yoshihisa
Ishida |
| e-Print Co. |
[Printers] |
President: Takeo Eguchi
(Corporate Senior Vice President) |
- Display Network Company(DNC)
-
| -Supervised
by: |
Suehiro
Nakamura (Executive Deputy President) |
| NC
President: |
Yoshinori
Onoue |
| <Business> |
Display
products and applications for the broadband era |
-
| Projector &
Display Systems Co. |
[Projector] |
President:Makoto Kogure
|
| Computer Display Co. |
[Computer display]
|
President:Akio Taki |
- Core Technology & Network Company(CNC)
-
| -Supervised
by: |
Suehiro
Nakamura (Executive Deputy President) |
| NC
President: |
Suehiro
Nakamura (Executive Deputy President) |
| Deputy
President: |
Katsuaki
Tsurushima (Corporate Executive Vice President),Yutaka Nakagawa
(Corporate Senior Vice President) |
| <Business> |
Media
device related business |
-
| Storage & Device
Co. |
[Storage Devices] |
President: Yutaka Nakagawa
(Corporate Senior Vice President) |
| Energy Co. |
[Batteries] |
President: Takeo Kaji
(Corporate Vice President) |
| Recording Media Co. |
[Recording Media] |
President: Ryoji Chubachi
(Corporate Vice President) |
| Display Device Co. |
[CRT] |
President: Kazumasa
Nomura |
| Core Technology Development
Center |
|
President: Katsuaki
Tsurushima
(Corporate Executive Vice President) |
| Electronic Device Marketing
Group |
|
President: Mitsuyuki
Watanabe
(Corporate Executive Vice President)
Deputy President: Hideki Komiyama |
- Semiconductor Network Company(SNC)
-
| NC
President: |
Takeo
Minomiya (Corporate Senior Vice President) |
|
Deputy President: |
Tsutomu
Niimura (Corporate Vice President) |
| CTO |
Tsugio
Makimoto (Corporate Research Fellow)
(Corporate Senior Executive Vice President) |
| <Business> |
Semiconductors |
-
| Imaging Device
Co. |
[CCD-LCD] |
President: Hiroyuki
Matsumoto |
| Mixed Signal & Device
Co. |
[Bipolar-IC] |
President: Kazuo Yamagiwa |
| System Device Co. |
[System LSI] |
President: Shuuichi
Ohtsuka |
<Technology Center>
- S&S Architecture Center(SSAC)
-
| President: |
Tsutomu
Niimura (Corporate Vice President) |
| Deputy
President: |
Masaaki
Tsuruta |
| <Responsibility> |
LSI
System Architecture,SOC development/design, coding algorithm
development |
- Network & Software Technology Center(NSC)
-
| President: |
Mario
Tokoro (Corporate Executive Vice President) |
| <Responsibility> |
Common
technology for internet connection, development and standardization
of inter-device network technology, development of common software
technology |
- Broadband Network Center(BNC)
-
| -Supervised
by: |
Michiaki
Tsurumi (Corporate Vice President) |
|
President: |
Hiromasa
Ohtsuka |
| <Responsibility> |
Global
ePlatform for business model that combines hardware, content
and services |
- <Company/Center>
- Telecom & Service Co.
| -Supervised
by: |
Michiaki
Tsurumi(Corporate Vice President) |
|
President: |
Sunobu
Horigome (Corporate Executive Vice President) |
| <Business> |
Domestic
broadband application service provider |
- Entertainment Robot Company(ERC)
| President: |
Satoshi
Amagai |
|
Deputy President: |
Tadashi
Ohtsuki |
| <Business> |
Entertainment
Robot Business |
- AV/IT Development Group
| -Supervised
by: |
Shizuo
Takashino (Corporate Senior Executive Vice President) |
|
President: |
Kiyoshi
Nishitani (Corporate Vice President) |
- Consumer Procurement Center
| -Supervised
by: |
Shizuo
Takashino (Corporate Senior Executive Vice President) |
|
President: |
Yoshiyuki
Kamon (Corporate Vice President) |
- <Corporate Laboratories>
-
| Internet Laboratories |
President: |
Mario Tokoro (Corporate Executive Vice President) |
| Frontier Science Laboratories |
President: |
Seiichi Watanabe (Corporate Executive
Vice President)
|
| A3 Research Center |
President: |
Tetsujiro Kondo (Corporate Vice President) |
| Digital Creatures Laboratory |
Senior General Manager: |
Toshitada Doi (Corporate Executive Vice President) |
| Wireless Telecommunications Laboratory |
Senior General Manager: |
Masakatsu Toyoshima |
| Fusion Domain Laboratory |
President: |
Jiro Kasahara |
- <Professional Services>
-
| Technical Support Center |
Supervised by: |
Teruaki Aoki(Corporate Executive Vice President) |
| Procurement Center |
Supervised by: |
Teruaki Aoki(Corporate Executive Vice President) |
| Customer Satisfaction Center |
Supervised by: |
Tadasu Kawai(Corporate Senior Vice
President) |
|
