Ricoh CEO reports on future plans
Akira Oyama, CEO, published progress report on “Improvement Project”
- Goal is to increase “Digital Services” revenue to 60% of total revenue
- Grow profit in office services
- Generate cash in maturing print hardware market to fund investment
- Reduce costs with venture with Toshiba named “ETRIA”
- Reduce spend on research & development from 107.7 billion yen in FY22 to 80 billion yen in FY25
- Plan to withdraw from low profit businesses:
- 6 businesses are in final phase of exit process out of 10 targeted businesses:
- divested optical business in 10/2023
- divested eDiscovery Services business in 4/2024
- 6 businesses are in final phase of exit process out of 10 targeted businesses:
- will be expanding business review for further impact
- Plan to optimize human capital
- Implement reskilling programs
- Develop digital professionals
- AI specialists
- Systems engineers
- Process digitalization experts
- Claims to have 1.4 billion companies as customers currently worldwide
- Only 35% of current customers have Office Services contracts
- 10% sales growth rate of recurring business offerings