If it worked in the past, why not try it again, right? That’s the theme, anyway, from corporate Sony, as the company contemplates spinning off its Imaging Products and Solutions business.
Sony Corporation (“Sony” or the Company”) has been engaged in the sequential splitting out of business units across the Sony Group, in order to reinforce the competitiveness of each business, and ensure clearly attributable accountability and responsibility.
As the company points out, they’ve already done this to quite a few of their divisions.
In addition to Game & Network Services, Mobile Communications, Pictures, Music and certain other Sony Group businesses that were already operating autonomously as subsidiaries, in July 2014 Sony split out its TV business, followed by its Video & Sound business in October 2015. The Company also plans to split out and establish its semiconductor business as a wholly owned subsidiary in April 2016.
And now it’s time to try that on another division.
Sony is also exploring the split out of its Imaging Products and Solutions Sector.
So what does all of this entail? Details after the jump.
According to Sony, the company is:
proceeding to realign the platform functions that support each of its business units in order to enhance the effectiveness and efficiency of these operations.
As previously announced, operations that until now have resided within Sony Corporation, including the Consumer AV Sales Platform, the Manufacturing, Logistics, Procurement, Quality and Environmental Platform for Sony’s electronics business, as well as certain cloud-based platforms and service-related businesses, will each be transferred to the related Sony Group companies. This transition is scheduled to be made sequentially from April 1 2016.
Once the splitting out of these functions has been completed, Sony Corporation will focus on the following Group headquarters functions:
- Headquarters: Responsibility for the Sony Group’s overall strategy and governance, and oversight of their execution
- R&D: Leadership of Sony’s differentiation and creativity through technological innovation
- New Business: Incubation of new businesses in areas beyond Sony’s current business domains
- Brand Design: To enhance Sony’s brand value and implement horizontal Group-wide initiatives
- Professional Services: To support the operations of the Sony Group following the completion of the splitting out process
In conjunction with this structural realignment, certain changes will also be made to Sony’s executive assignments and system effective April 1, 2016, in order to further clarify lines of responsibility and assignments within each business and the headquarters organization.
The Company will newly appoint four executives, currently in charge of four of the Sony Group’s business segments, as “Corporate Executive Officers” of Sony Corporation. They, together with the six existing Corporate Executive Officers, will assume ultimate responsibility for the Sony Group’s management within the scope assigned to them by the Company’s Board of Directors. Sony will also re-classify its other executives. The executives responsible for executing their assigned business operations under the oversight of the relevant Corporate Executive Officers will be named “Business Executives” of Sony Corporation, while the executives responsible for the headquarters functions assigned to them under the oversight of relevant Corporate Executive Officers will be named “Corporate Executives” of Sony Corporation.
Many thought Sony could never turn their TV business and mobile business profitable but the company in recent years has done just that with mobile, arguably being one of the strongest players in the Android market. With the imaging products division already profitable and in high demand, this could allow for further nimbleness and market gains. It’s clear that in the past, Sony has suffered from slow actions in part due to a complicated management/corporate structure. These spinoffs allow each division to act more as a self-contained silo with the purchasing power of a larger corporation behind them. It’s a good move.
Discuss:
Do you think it’s wise for Sony to spin off their Imaging Products and Solutions business?
[Via Sony]
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