Toshiba today announced that it will establish a new company in its Digital Products Group, the Digital Products & Service Company, that will integrate two current in-house companies: the Visual Products Company, which handles LCD TVs, HD recorders and other products, and the Digital Products & Network Company, which handles PCs and related products.
Digital Products & Service Company will start operation on April 1, the first day of Toshiba's fiscal year 2011.
This aim of the reorganization is to secure an optimum business structure in digital products and the speed and responsiveness necessary to accelerate businesses in high growth emerging economies. Toshiba added that the new company will leave behind the product-based structure of the companies it replaces to introduce a regionally based, cross-product organization. This approach will secure the ability to meet market needs in each region in a more prompt and timely manner.
The Digital Products & Service Company will undertake business and product planning and development, procurement, manufacturing and sales and marketing of LCD TVs, HD recorders, PCs, slate-type terminals, and other related digital products, taking advantage of Toshiba's current strengths in the visual product business and PC business on a global basis. The company will particularly emphasize cultivation of fast growth emerging markets and optimize its sales force and brand strengths in such markets, with the aim of boosting unit sales in emerging countries to approximately 50% of all sales by fiscal year 2013.
Toshiba will also use the momentum of the reorganization to proactively promote internet-based services, including "Toshiba Places" and "Regza Apps Connect", which allow users to enjoy a wide variety of content on TVs, PCs and slate-type terminals, and also to enhance linkage between products in expanding business in Japan, Europe and North America.
In order to reinforce the network service solution businesses for its corporate customers, the reorganization will also see the establishment of a Network & Solution Control Center. The current Digital Products & Network Company's IP Network & Solution Division, which handles servers, business communication systems and IP networks, and the corporate Network Services Division, which promotes internet service businesses, will be integrated into a single organization and become a new member of the Digital Products Group.
Toshiba will also establish another in-house company, the Social Infrastructure Systems Company, that will integrate two in-house companies engaged in infrastructure businesses, with a corporate-level division. The new company will reinforce Toshiba's ability to offer integrated solutions across power transmission and distribution, a broad range of social infrastructure, and automotive systems.
The Social Infrastructure Systems Company will start operation on April 1, the first day of Toshiba's fiscal year 2011.
Toshiba's new Social Infrastructure System Company will bring together two of its current in-house companies ? the Transmission Distribution & Industrial Systems Company which handles infrastructure for electric grids, the transportation business, rechargeable batteries, industrial motors and inverters, and the Social Infrastructure Company, which handles water and sewage treatment and environmental systems and road traffic systems ? with the Automotive Systems Division, which handles all aspects of Toshiba's auto-industry related business.
With this reorganization Toshiba will enhance its smart community related business by securing faster decision making, directing more personnel resources to promoting global business, and enhancing collaboration with Toshiba Group companies' operations outside of Japan, initially through business projects in the United States, China, Brazil and Vietnam.
Toshiba's Social Infrastructure Systems Company will target raising sales outside Japan from the current level of approximately 20% to some 50% by fiscal year 2013.