Kaz Hirai Announces 'One Sony,' A New 3 Pillar Restructuring Strategy

It’s no secret that Sony has been having financial problems as they’ve fallen behind many of their competitors like Apple and Samsung. The once world-renowned electronic giant has been playing catch up in many markets for nearly the last decade, despite many strong assets like their PlayStation and camera divisions which have continued to grow and surpass rivals such as Nikon and Canon who’ve failed to innovate. Even the PlayStation division was in jeopardy 5 years ago when Sony misjudged competition with a horrible PlayStation 3 launch which offered few games and even less inventory for months to consumers. With such an expensive misstep, it was Kaz Hirai who was appointed head of the PlayStation division and has been mostly credited to turning around the division.

Despite not officially taking the reigns of Sony till April, the bilingual and bicultural Hirai has already begun working on a restructuring plan for the company that he’s been a part of for over 20 years. Called ‘One Sony,’ this new business restructuring is intended to establish rapid and optimized decision-making processes which emphasizes three electronic pillars for Sony: digital imaging, games, and mobile. Arguably the most healthy parts of Sony, these three departments will see continued support and resources invested to further strenghten and expand them. Kaz will not be alone on this venture as Sony’s Corporate Executive Officers Masaru Kato, EVP and CFO, and Tadashi Saito, EVP and CSO (Chief Strategy Officer) will be part of this inner circle to personally oversee the products, managements, and engineers who deal with each division.

From there, Kaz plans to personally oversee the troubled Home Entertainment Business, which includes the TV business which has accumulated losses of $10 billion. No specifics were given but Sony just recently sold their remaining stake of their Samsung S-LCD venture back to Samsung who is also rumored to be looking for a buyer. Sony has also been proactive about simplifying their television line, down to 12 at this year’s CES. In years past, Sony had a staggering 20+ TVs in their model line, which lead to inventory problems and customer confusion.

Meanwhile, Corporate Executive Officer and EVP Tomoyuki Suzuki will oversee “Sony’s core device technologies, to create new businesses and enhance the R&D operations that are the foundations for Sony’s next generation of technological innovation.” Despite its low profile, one of Sony’s saving graces has been their R&D into the medical field where Sony’s camera imaging sensors are used. Hiroshi Yoshioka, Corporate Executive Officer and Executive Deputy President, will now lead Sony’s medical-related businesses.

The only person who might have been able to properly appreciate Kaz Hirai position is the late Apple CEO, Steve Jobs who came back to the fledgeling company he loved in the mid 1990’s and was able to transform it back into the now world’s-most-valued company. Kaz Hirai, now 51, was born in Japan and spent about 20 years in the United States, some of that as a child when his father, a banker, worked there. Kaz, who’s been a child of two worlds, is better poised than anyone else to bring the once-marveled electronics company back into the lead with his ability to understand and control the Japanese culture and its engineers while also marry the western, software philosophy which has been leading consumer electronics for the past decade.

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Tokyo, March 27, 2012 – Sony Corporation (“Sony” or “the Company”) today announced the establishment of a new management structure.

Led by President and CEO Kazuo Hirai, these changes are intended to drive revitalization and growth across Sony’s core electronics businesses, and deliver compelling user experiences through convergence of the unique assets in place throughout the Sony Group.

With Mr. Hirai at the center of a management team that will work together with the heads of each business group and platform, this new business structure is intended to establish rapid and optimized decision making processes as “One Sony,” that significantly reinforce and accelerate Sony’s overall business management. The changes are effective April 1, 2012.

Under the leadership of Mr. Hirai, Corporate Executive Officers Masaru Kato, EVP and CFO, and Tadashi Saito, EVP and CSO (Chief Strategy Officer) will oversee the Sony Group’s overall financial management, corporate and business strategies. With respect to the electronics businesses, in addition to Mr. Kato and Mr. Saito, Shoji Nemoto, Corporate Executive Officer and EVP who will oversee technology strategy, and Kunimasa Suzuki, Corporate Executive Officer and EVP, who will oversee product strategy, will take key roles in the management team that will support Mr. Hirai and work together with the heads of each business group, platform and headquarters function to quickly engage in the revitalization of Sony’s electronics operations.

Sony is positioning digital imaging, game and mobile as the three core pillars of its electronics business, and going forward aims to concentrate its resources in these areas to further reinforce the businesses. Sony also plans to accelerate its efforts to drive innovation and new business creation. Mr. Nemoto will be assigned overall responsibility for technology strategies, and will work together with Tomoyuki Suzuki, Corporate Executive Officer and EVP, who will oversee Sony’s core device technologies, to create new businesses and enhance the R&D operations that are the foundations for Sony’s next generation of technological innovation.

Mr. Nemoto will also implement a process of stringent selection and focus in the area of R&D, to enable the Company to optimize resource allocation.

As Officer in charge of the User Experience (“UX”) & Product Strategy and Creative Platform, Kunimasa Suzuki will assume responsibility for planning and design in relation to all consumer related products and services, with the aim of strengthening horizontal integration and enhancing the user experience across Sony’s entire product and network service lineup. He will also oversee the mobile business that Sony has identified as one of its core electronics business areas, including smart phones, tablets and PCs.

The Home Entertainment Business, including the TV business (which is continuing to address the challenge of enhancing profitability), will be overseen directly by the CEO, Mr. Hirai, who will also be Corporate Executive Officer in charge of these businesses. The device and semiconductor businesses, an area where Sony is excelling with its industry-leading image sensors and other device technologies, and the core device R&D activities which support these businesses, will now be led by Tomoyuki Suzuki.

The area of medical technology is also expected to grow significantly in the future, and Sony’s medical-related businesses that had been dispersed across multiple units will now be integrated into a dedicated medical business unit to be overseen by Hiroshi Yoshioka, Corporate Executive Officer and Executive Deputy President.

In the area of sales and marketing, Haruyasu Nagata, currently President of Sony (China) Co., Ltd will be appointed SVP and head of the Global Sales and Marketing Platform, with the aim of strengthening Sony’s global sales and marketing activities, particularly within emerging markets where significant market growth is anticipated.

Nobuki Kurita, currently President, Sony Marketing (Japan) Inc. will be appointed President, Sony (China) Co., Ltd. Hiroshi Kawano will be appointed President, Sony Marketing (Japan) Inc., while continuing his current role as President, Sony Computer Entertainment Japan*.

*A division of Sony Computer Entertainment Inc., overseeing the business in Japan

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