Sony 2008 Annual Report Download - page 14

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12
Further Optimization
On top of all of the above initiatives, we will continue to further
optimize our operating performance. In order to remain competitive,
we must continue to rigorously scrutinize our supply chain activities
and exit businesses that have not yielded a satisfactory return.
Network Initiatives
As a leading producer of consumer electronics—from PSP® and
Walkman® to BRAVIA TVs, VAIO PCs and phones from Sony
Ericsson—and as one of the world’s premiere holders of video,
music, and game-related entertainment content, Sony is uniquely
positioned to deliver new entertainment experiences to its
customers.
Our customers increasingly demand the ability to enjoy their
entertainment content when, how and wherever they want. Two
steps are required to make this a reality. First, on the hardware front,
products need to be connected to content seamlessly, without the
need for cables and clumsy data transfer. To this end, we have a
mid-term goal of making 90% of our product categories in the
Electronics business network-enabled and wireless-capable by
fi scal year 2010. Second, regarding content distribution, we are
launching a video service platform that will expand the delivery of
content across our devices—in the home or “on the go.”
We plan to launch a video service this summer in North America
on the PLAYSTATION®Network, which will make feature movie and
television content from Sony Pictures and other major studios
available on both PS3™ and PSP®.
By the end of fi scal year 2010, we plan to extend the availability
of our video services—fi rst to PCs and consumer electronics for
Investing for the Future
Only through continued investment can Sony continue to deploy
its innovative technologies to achieve growth and create sustained
product differentiation. Accordingly, we have allocated
approximately ¥1.8 trillion for these strategic investments over the
next three years.
In addition to entertainment- and network-related investments,
we will use half of this investment—or approximately ¥900 billion—
to strengthen core focus areas within components and
semiconductors such as image sensors, batteries, display devices
and Blu-ray Disc-related components.
Open Innovation
Consumers are demanding increasingly sophisticated and
integrated products and services, and through our R&D efforts
we can achieve innovative technology that differentiates us from
our competitors. In addition to the recent reorganization of our
R&D laboratories, we are accelerating what we call “open
innovation,” or the introduction of internal and external
technologies, to offer the most attractive products and achieve
maximum R&D effi ciency.
D
r
i
ve growt
h
t
h
roug
h
di
sc
i
p
li
ne
d
i
nvestment
A
cce
l
erate
I
nnovat
i
o
n
Sony
Corporate R&D
Commericialization Carve-out
Joint VenturesAlliances
• Invest in and build-out entertainment and network services
(e.g. Gracenote, 2waytraffi c)
• Expand and reinforce TV Business
–LCD panel production expansion
–Increase OLED panel production
• Invest aggressively into Core components
–Image Sensor, Li-ion Battery and Blu-ray Disc, etc
• Implement “Asset Light” strategy
–System LSI for Game
1.4
1.8
(Yen in trillions)
2005-2007 2008-2010
08SonyE_P1_P13_0804.indd 1208SonyE_P1_P13_0804.indd 12 08.8.7 2:17:50 PM08.8.7 2:17:50 PM