The sources of corporate value for the Fujifilm Group are our technological capabilities, corporate culture, human resources, brand strength, and global network. These factors are indispensable if we are to meet the expectations and needs of our stakeholders and earn their trust.
Our technological capabilities underpin the broad range of businesses in the Fujifilm Group. The products related to silver halide photographyーa long-established business of the Groupーcomprise various technologies we have cultivated over the journey. Photographic film currently only accounts for less than 1% of Group-wide sales, but by combining the base technologies the Fujifilm Group have honed in the field of halide photography, which underpin our operations, with the core technologies that drive our sustained competitive advantage, we continue to bring various products and services to market.
The Fujifilm Group listens to and openly exchanges opinions with all its stakeholders, complies with rules in a fair manner, takes responsibility for its decisions and actions, and ensures transparency in all sincerity. Based on this open, fair, and transparent corporate culture, we boldly embrace challenges in the course of our business activities.
Backed by this corporate culture, we will further hone our leading-edge, proprietary technologies to remain a dynamic corporation always ahead of the pack as a pioneer constantly generating new value.
Skilled human resources are essential if we are to generate and develop growth businesses and accelerate our global expansion. From a long-term perspective, the Fujifilm Group focuses on nurturing global and managerial human resources capable of sparking innovation on their own accord in response to changes in society and we are working to create an environment in which our diverse workforce can fully maximize the abilities.
We have hitherto enhanced the value of the FUJIFILM brand by constantly creating revolutionary products and services through innovation based on the advanced proprietary technologies we have cultivated in photography. We are running a global branding campaign in multiple countries featuring the key message of “NEVER STOP.” We are determined to further enhance the brand power of FUJIFILM in order to deliver fresh value with our own cutting-edge technology and contribute to solving the various issues of society, as well as accurately communicate our stance on ceaselessly making improvements and progress so that we always remain a growth company.
Shortly after its founding, Fujifilm took proactive steps to expand overseas, setting up its first overseas base in 1937. We have grown to become a global corporation with 279 consolidated subsidiaries and an overseas consolidated sales weighting of about 59% （overseas sales of JPY 1,425.0 billion） in fiscal 2018. In recent years we have identified the BRICs and the emerging markets of mainly Turkey, the Middle East, and Southeast Asia as key regions in which we are aggressively establishing local subsidiaries and strengthening our sales structures.
The Fujifilm Group’s technological capabilities are one source of corporate value. Here we discuss the Group’s approach and initiatives for improving our know-howーso that we can constantly leverage our cutting-edge, proprietary technology to create innovative products and services and deliver value to societyーand efforts with regard to open innovation, which is a cross between inhouse and external technologies.
Under five research policies, we aim to develop bold new businesses that can contribute to improving quality of life and sustain growth in existing business fields with innovative new products by fusing together our business strategies and R&D strategies.
- Deepening and broadening Fujifilm Group’s fundamental technologies
- Creating new value by integrating multiple technologies in various fields
- Enhancing group synergies
- Accelerating developments
- Improving the fundamental R&D capability of each researcher and organization
At Fujifilm, we have set up so-called Divisional Laboratories engage in R&D directly linked to each business and Corporate Laboratories conduct research into the base technologies we have thus far honed in the photographic business, such as advanced material chemistry, imaging, analysis, and production systems. The R&D Management Headquarters centrally manages these laboratories, which in turn promotes the speedy development of new products and creates new businesses to drive growth. Meanwhile, Fuji Xerox collaborates with universities, research institutes, corporations, and other partners in aiming to realize synergies with the goal of solving not only its own problems, but those of regional communities. And through collaboration of R&D centers in Japan and overseas, we have established structure to respond to global market demand quickly.
Approach to intellectual property
The Fujifilm Group engages in intellectual property activities to ensure that the value of our business undertakings created in various settings always gives us a competitive edge. The extent of our activities is quite broad ranging; for example, in addition to hitherto typical activities like assisting the creation of inventions, submitting patent applications, and acquiring right, we conduct strategic analyses of competitors and address industry standards for the purpose of achieving business superiority. By collaborating with business departments and R&D departments to create and harness strong intellectual property, we can contribute to business growth, mitigate business risks, and seek to enhance corporate value.
Open innovation initiatives to create new value through “co-creation”
We have established three Open Innovation Hubs in Japan, the US, and Europe as places to facilitate the co-creation of new value and where we can demonstrate to external business partners our base/core technologiesーthe source of the Fujifilm Group’s competitivenessーalong with the materials, products, and services that incorporate them. Since they were opened, a total of about 15,000 people from 3,000 companies (as of end-Aug. 2019) have visited and collaboration is proceeding in a number of ways. Furthermore, Fuji Xerox established “Smart Work Innovation Laboratory”ー where visitors can experience for themselves products and services related to“ Smart Work Innovation” and technologies undergoing demonstrationーand opened its “Future Edge” hub that specializes in the production field and can be utilized for tasks ranging from searching for issues to conducting verification activities. Incorporating the latest AI and IoT technologies, we will propose solutions that respond to the diversifying issues in the rapidly changing business environment and resolve our customers’ business challenges together with them.
In the fields of diagnostic imaging and general photography, Fujifilm has thus far developed technologies capable of reading information from images. Based on this knowledge, we intend to accelerate the development of AI-based technology capable of supporting those in the healthcare industry through comprehensive analysis and decision-making by using the various data collected from our business activities, for example, by combining biological information from medical testing with diagnostic imaging data. In addition, Fujifilm will also work together with academic institutions to develop next-generation AI technology capable of resolving various issues facing society by linking its proprietary technology with documented knowledge such as diagnostic reports, medical literature, and human knowledge from experience.
Sources of Corporate ValueーTechnological Capabilities
Proprietary technologies underpinning growth and expansion into various fields
Since its founding, the Fujifilm Group has been accumulating the base technologies that have supported the Company’s business, including organic and inorganic materials chemistry, optical technologies, and analytical technologies. Based on these technologies, we have honed our proprietary core technologies, which are central to continuously building up our competitive advantage. By combining these technologies, we have provided a wide range of products and services to create new value that will open the way to the future. Going forward, we will make continuous efforts to create new value by applying these technologies in a wide range of industries.
New value generated by the Fujifilm Group
Highlights of our initiatives
We develop highly functional films essential for the manufacturing of LCDs used in devices such as televisions, computer monitors and smartphones. Going forward, we intend to develop and offer a broad-range of high value-added materials utilizing our know-how for film-formation to meet the demands of technology that is constantly evolving.
In addition to providing office equipment, we build communication environments best suited to our customers by turning multi-function devices into portals and connecting them to their own, or other companies’, cloud services. By improving office productivity and streamlining operations, we aim to support initiatives for work-style reforms at companies.
We offer a broad range of diagnostic equipment built on our proprietary technologies, including X-ray diagnostic equipment, endoscopes, ultrasound equipment, and in-vitro diagnostic (IVD) systems. We will also provide diagnostic support to physicians by, for example, providing medical-use picture archiving and communications systems (PACS) and a platform comprising our image processing technology combined with AI technology.
We have the optical technology to manufacture lenses with nano-level precision. In addition to 8K broadcasting lenses that are useful at filming locations, we aim to provide high value-added lenses to meet varied needs, such as lenses for high-performance surveillance cameras amid the growing awareness about security issues, and high-resolution performance machine vision lenses.