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Toshiba to Reorganize Headquarters Corporate Staff toward Realization of Toshiba Next Plan

Promote Transformation to a Cyber- Physical Systems Technology Company
31 Jan, 2019

TOKYO—Toshiba Corporation (TOKYO: 6502) will reorganize its headquarters corporate staff functions, toward advancing its transformation to become a cyber-physical systems (CPS) technology company, the vision for the company’s future detailed in the Toshiba Next Plan.

Toshiba announced the reorganization of its battery and building solutions businesses on December 26, 2018, and the reorganization and consolidation of business units in key group companies on January 10, 2019. Along with these moves, Toshiba Group will steadily execute the Toshiba Next Plan, starting from fiscal year 2019.

1. Establishment of Cyber-Physical System Promotion Division
Toshiba Group is promoting a shift to a profitable business model, focusing on the provision of services and solutions that maximize customer value by combining the strengths of existing businesses with AI and IoT technologies.

The Digital Transformation Strategy Acceleration Division, established in April 2018, is the driving force behind the Group’s efforts to put in place organizational structures and human resources. On April 1, 2019, the division will merge with the Design Center, currently a part of the Marketing Division, to become the Cyber-Physical System Promotion Division.

As customer needs diversify and deepen, the definition of design is evolving. Toshiba’s Design Center has promoted design work not limited to the narrow sense of industrial design grounded in color and shape, but a broader perspective that contributes to the creation of new businesses and products. Its transfer to the Cyber-Physical System Promotion Division will accelerate design and the creation of new businesses using digital technologies and spur Toshiba Group’s transformation to a CPS technology company.

The new division will manage the Group’s digital transformation strategies, and Taro Shimada, Toshiba Group’s Corporate Digital Business Chief Strategy Officer, will head the division and its support for the Group’s business expansion.

2. Establishment of Digital Innovation Technology Center
The Digital Innovation Technology Center will be established as a new division on April 1, 2019. It will develop digital technologies, and standardize and use them as standard parts to advance the swift provision of SPINEX™, Toshiba’s family of digital service for BtoB businesses. The new division will build a technology base for creating businesses that utilizes digital technologies and accelerate business creation.

Hiroshi Yamamoto, Toshiba Group’s Corporate Digitization Chief Technology Officer, will head the new division and oversee technologies related to the Group’s digital transformation.

3. Establishment of Business Process Re-engineering Division
The Toshiba Next Plan specifies comprehensive process transformation as a key for improving core earning power, and over the five years from fiscal year 2019 to 2023, Toshiba plans to invest 110 billion yen in IT systems that will enhance operational efficiency.

On February 16, 2019, Toshiba will establish a Business Process Re-engineering Division responsible for group-wide operating processes and their overall optimization, which will promote standardized operating processes and next-generation core systems. The division will lead IT system reform to establish an IT base that sustains Toshiba Group’s transformation to become a CPS technology company.

Keiichi Yumita, Toshiba’s Chief Information Officer, responsible for promoting operation standardization and digitization and IT system reform, will oversee the new division.

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Information in the news releases, including product prices and specifications, content of services and contact information, is current on the date of the press announcement, but is subject to change without prior notice.

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