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January 16, 1996
Tokyo -- Sony Corporation today announced a new corporate structure aimed to reinforce the headquarters, R&D and company functions, make the corporation more responsive to external changes and facilitate its ability to enter into new business areas. As a result, the current eight companies will be reorganized to create a new ten-company structure. This change will be effective April 1, 1996.
The eight-company structure, first put into effect on April 1, 1994, had the following primary goals: 1) To create a more market-driven, market-responsive company; and 2) To clarify lines of responsibility and increase autonomy.
The basic features of the new structure announced today are as follows:
- A new company structure to promote quicker, more effective operations that better reflect market changes;
- The establishment of an Executive Board to reinforce headquarters and corporate strategy and management functions;
- The appointment of new companies and groups for entering into the IT (information technology) and telecommunications businesses that represent a merging of AV and computer technologies;
- The consolidation of marketing functions;
- The establishment of the Corporate Laboratories for new business development; and
- The training and support of promising young talent to foster future top management.
Outline of the New Structure
The Consumer A&V Products Company will be reorganized to create three new companies: The Display Company, the Home AV Company and the Personal AV Company.
The Information Technology Company will be newly established to oversee Sony's businesses in the personal computer and IT areas.
In addition, the InfoCom Products Company and the Mobile Electronics Company will be merged to create the Personal & Mobile Communications Company.
The new structure will result in a total of ten companies within Sony Corporation. The other companies not mentioned above are the Components & Peripherals Company (formerly called the Components Company), the Recording Media & Energy Company, the Broadcast Products Company, the Image & Sound Communications Company (formerly called the Business & Industrial Systems Company) and the Semiconductor Company.
In addition to the new company structure, young talent will be appointed as presidents of each company. As in the past, company presidents will be given full autonomy and authority to manage their respective companies.
Consolidation of Marketing Functions
Certain marketing divisions that were part of the company organization will be spun off and consolidated to create the following:
- The Japan Marketing Group, which will handle Japanese marketing activities for the Display Company, Home AV Company, Information Technology Company, Personal AV Company and the Image & Sound Communications Company;
- The International Marketing & Operations, which will be responsible for supporting overseas marketing for the above-mentioned companies; and
- The Electronic Components & Devices Marketing Group, which will oversee worldwide marketing for the Semiconductor Company and the Components & Computer Peripherals Company.
Establishment of an Executive Board
The following new positions have been created:
- Chief Human Resources Officer, to be served by Vice Chairman and Representative Director Tsunao Hashimoto;
- Chief Production Officer, to be fulfilled by Executive Deputy President and Representative Director Yoshiyuki Kaneda;
- Chief Marketing Officer, to be assigned to Senior Managing Director Junichi Kodera; and
- Chief Communications Officer, to be held by Senior Managing Director Kenji Tamiya.
An Executive Board, chaired by President and Chief Operating Officer President Nobuyuki Idei, will be established comprised of the above-mentioned officers, in addition to the Chief Technology Officer (Executive Deputy President and Representative Director Minoru Morio), the Chief Financial Officer (Executive Deputy President and Representative Director Tamotsu Iba), Executive Deputy President and Representative Director Kozo Ohsone and Senior Managing Director Kiyoshi Yamakawa. The Executive Board will develop and execute corporate strategies of the Sony Group.
Establishment of the Corporate Laboratories
The current research and development structure, comprised of the Research Center and the R&D divisions of each company, has been reevaluated with the resulting establishment of three new laboratories:
- The Architecture Laboratory, which will be responsible for R&D of software, network and other IT-related technologies;
- The Product Development Laboratory, which will oversee R&D for product development in AV businesses; and
- The System & LSI Laboratory, which will conduct R&D for LSI and system design, the backbone of hardware products.
These laboratories, in addition to the Research Center, will be grouped as the Corporate Laboratories.
Separate from the Corporate Laboratories will be the newly established D21 Laboratory, which will conduct long-term R&D for the 21st century.
Digital Dream Kids
Sony Corporation will celebrate its 50th anniversary on May 7, 1996. Commented President and COO Nobuyuki Idei, "To secure the prosperity and further growth of Sony during its next 50 years, along with Chairman and CEO Norio Ohga, I aim to create a company that can provide consumers with new avenues of enjoyment through the effective development and utilization of hardware and software technologies. Sony Corporation pledges to strive to fulfill the dreams of the digital era as 'Digital Dream Kids.' "