Being an entity needed by society
All across the world, we have recently been seeing an increase in abnormal weather events and disasters as well as the expansion of poverty and wealth disparities. Our daily lives and business operations are being affected by growing uncertainties in society, trade frictions, unstable international relations and social divisions. We have also increasingly experienced the impacts of dramatic climate changes, including extensive damage caused by typhoons and heavy rains. In Japan, we have yet to solve various issues, including the aging of society and decreasing birth rate, regional disparities and the labor shortage. On the international front, in order to solve a broad spectrum of social issues in relation to the Sustainable Development Goals (SDGs) Note1 a greater number of countries, companies and organizations are speeding up their measures in collaboration with each other and by capitalizing on their own strengths. Under these circumstances, Fuji Xerox is making use of its document management expertise, adopting new technologies including those related to AI and IoT, and contributing to work style innovation in society. In other words, we are bringing about changes to people’s work styles to help create a society where all people can engage in fulfilling work, thereby contributing to the achievement of the SDGs. By doing so, we will remain an entity needed by society.
To survive in this age of dramatic changes, being recognized as an entity that can continue to deliver value to society, the company should be able to forecast and respond appropriately to changes in society, and even create change itself. To this end, we think it is important to have the followings in place: a sound management foundation based on which we can steadily provide value; a strategy formulated by anticipating the social environment and needs on a medium- to long-term basis and by adopting the backcasting method; and the ability to implement the formulated strategy to completion.
Returning to growth by establishing a robust management foundation
In fiscal year 2018, we enhanced our organizational structure to build a robust and sound management foundation and “sowed seeds” at a greater speed to achieve growth toward the future. We also continued implementing our compliance enhancement measures as the basis to earn even more trust from customers and society and increased the efficiency of our organizations and businesses through structural reforms. Furthermore, we rebuilt our product and service strategies and accelerated the development speed to promptly deliver the products and services that would meet our customers’ needs in collaboration with other companies.
As a result, in the previous fiscal year, we recorded a substantial increase in operating income despite posting a slight decrease in sales, which was a result of the decisions that we had made with clear intention, including the review of low-profit businesses. We plan to return to growth for both sales and profit in the near future.
In fiscal year 2019 we are concurrently implementing 13 projects in four fields as Company-wide Transformation Projects, including projects to reform business processes to enhance the management foundation and projects to build new businesses and specify growth strategies for Japan and overseas. As top management, we lead the projects, discuss with all members, make and implement decisions on the spot and adjust plans as required in a timely fashion, thereby ensuring the speedy and successful implementation of the projects. We also use the newly established system for collecting frank feedback from our employees, and will incorporate more opinions of on-site employees to foster reforms, both small and large.
Striving to solve issues of working people and contributing to the achievement of the SDGs
FUJIFILM Holdings announced its CSR plan “Sustainable Value Plan 2030” (SVP2030)Note2 two years ago. The plan outlines the long-term goal to be pursued by the entire Group for the solution of social issues through its business operations, indicating 15 important issues in a total of six fields: “environment,” “health,” “daily life,” “work style,” “supply chain” and “governance.” We have been implementing initiatives to deal with these issues. In particular, in the field of “work style,” Fuji Xerox aims to contribute to the achievement of SDG Goal 8: Decent work and economic growth by promoting its own work style innovation and making a range of work style innovation proposals to customers. Specifically, under the Smart Work Innovation Note3 concept that we announced in March 2018 as our value proposition strategy, we have been striving to deliver products and services that help increase convenience in the workplace and enhance the competitive advantages of customers, including helping them to increase their productivity, share professional knowledge, and ensure networking security based on a range of communication infrastructures. For example, we launched an AI-driven cloud-based solution, the “Accounts Payable Automation Solution,” in collaboration with French company Esker. Users of the solution are in positive response as it contributes to a substantial reduction in labor as well as to the enhancement of governance by preventing input errors and delayed payments, while also increasing convenience for users from the beginning to the end of the workflow. This solution was initiated by Fuji Xerox New Zealand and is being expanded to other operating companies in Japan, Australia, Hong Kong and Singapore. We will continue expanding the portfolio of our unique and highly reliable solutions and services, while ever enhancing their quality, to bring about changes to people’s work styles. In 2018 we celebrated the 80th anniversary of the invention of the xerography technology, which marked the start of our value proposition journey. We have experienced a range of technological changes over the years, all the while passing down from generation to generation our corporate DNA of proposing even better work styles to customers with a focus on communication among working people. We will continue to enhance our ability to work sincerely with customers, have dialogues with them, identify their issues and make a range of proposals, thereby bringing about changes to the work styles of customers and society at large.
Advancing to the next stage also in the process of value creation
We will also continue and enhance our measures to address social issues in our business processes. With regard to supply chains, which are attracting global attention in relation to measures taken to address labor issues and the infringement of human rights, Fuji Xerox last year shared with the entire Fujifilm Group the findings made by the company over more than 10 years in respect to its ethical procurement efforts. The findings were then reorganized, and a system similar to that adopted by Fuji Xerox was introduced to FUJIFILM’s manufacturing subsidiaries in China. This helps enhance the entire Fujifilm Group’s supply chain and will also help reform the work styles of employees at suppliers. We will continue to conduct these kinds of activities across the Group to deliver more positive impacts on society. The public’s interest in environmental issues, such as climate change and the circular economy, has continued to increase. In order to contribute to the solution of climate change issues, the Fujifilm Group, in January 2019, set a target for the introduction of renewable energy. Specifically, the Group aims to increase the rate of electricity generated from renewable energy sources to 50% of the total electricity the Group purchases by fiscal year 2030 and to reduce its CO2 emissions to zero for all energy sources by fiscal year 2050. Fuji Xerox will implement concrete measures to achieve these targets. As for the circular economy, we have been implementing a resource recycling system since the 1990s. We will optimize this system Reduce, Reuse and Recycle (3Rs) while ensuring compliance with enhanced “e-waste” (electrical and electronic waste)-related laws and regulations in each country. For Fuji Xerox to contribute to the work style innovation of our customers and society and to increase our social value in such process, our employees need to be passionate and able to take the lead in this effort. Accordingly, we redefined the corporate philosophy to clearly state the vision to be attained and actions to be taken by the company and employees, and reviewed the personnel system for the earlier promotion of talented individuals to higher positions. We will accelerate the measures to shift to more aggressive and innovative corporate culture that encourages employees to take on challenges without being afraid of making mistakes.
Becoming a company that can bring about changes to society: Our Promise to Stakeholders
Last year we renewed our management setup to make steady progress to become a high-profit company. Fiscal year 2019 is the final year of the Fujifilm Group’s medium-term management plan “VISION2019.” This year, in consideration of the long-term target set in SVP2030 and for the next medium-term management plan, we will set more specific milestones and targets in the work style domain to clearly show the path that we will follow to achieve our predefined goal. We will establish a foundation for the sustainable growth of customers, society, our own company and individual employees by making more proposals to provide changes to working people. Fuji Xerox is fully committed to bringing about changes for a better society in collaboration with various partners both within and outside the company.
- Note1 SDGs (Sustainable Development Goals): Goals in sustainable development adopted by the United Nations General Assembly in 2015, to be addressed as social issues by the international community until 2030. These are 17 goals and 169 targets established to address the issues of poverty, inequality and injustice, health, education, fulfillment in work, climate change and the environment, etc.
- Note2 Refer to the following URL for the details of FUJIFILM Holdings Sustainable Value Plan (SVP 2030)
Sustainable Value Plan 2030
- Note3 Refer to the following URL for the details of the concept of Smart Work Innovation.
Smart Work Innovation