Though the headline might first appear shocking, it’s technically not news. In 2015, Sony had announced plans to spin off their camera division, much like they’ve spun off their home entertainment and sound business. The reason for the spinoffs? Efficiency.

 The reorganization is meant in part to speed up the decision-making process and clarify accountability. The parent company will effectively become a holding company that focuses on such functions as formulating strategies for the entire group and creating new businesses. 

The time for massive companies (in tech anyways) where they participate in every possible market category has long past. In the last decade, and really starting with IBM when they sold off their PC business, we’ve begun to see a shift towards more focused companies. For Sony, by spinning off their different mega divisions, they can have their cake and eat it too.

 Some 3,500 employees work in Sony’s imaging products and solutions business, which includes consumer cameras, broadcast- and professional-use equipment and medical devices. Functions handled by this segment, including research and development, business management and marketing of those products, will be transferred to the new unit.

Sony has already spun off such highly profitable operations as financial services, movies and music. In its three-year business plan released in February 2015, it unveiled a plan to detach the imaging products and solutions business by the fiscal year ending March 2018, completing the splitting out of all businesses in the struggling electronics segment. 

Under this new management style, the camera division can focus on what it does best, creating cameras and camcorders without worrying about a direct need to tie their product roadmap and strategy with that of another division. This means being held accountable for their products and performance – and no more of one division floating another in hopes of them eventually being profitable.

Now Sony Imaging Products & Solutions must act as if it were a separate company and if things go well, Sony Corp. reaps the benefits. If they’re unable to stay competitive and profitable, they’ll ‘simply’ be shuttered or closed down without repercussions to other parts of Sony that are doing well, like PlayStation.

Discuss:

Do you think it’s wise for Sony to spin off their different divisions like they’ve been doing?

[Via Nikkei]