Ricoh reports on strategy
- overall goal is to transform its earnings structure and enhance its profitability by becoming a company based on providing digital services
- focus on converting paper-based business processes into more efficient digital ones, with data and documents stored in the cloud and not in filing cabinets
- includes Ricoh’s DocuWare, which provides cloud-based document-management solutions and business workflow-automation software.
- Claims that one of its big advantages is that it already has a global customer base of print customers, as well as a global sales and services structure to serve them
- For instance, in Europe, Ricoh has a customer base in more than 60 countries at 180,000 mainly mid-size and large companies
- has 3,200 direct salespeople and 4,800 field engineers in Europe
- In North America, Ricoh has a client base of approximately 1,800 on-site managed service locations, mainly in major and very large companies.
- In Japan, Ricoh serves around 1 million business customers that are primarily small and mid-size enterprises.
- For instance, in Europe, Ricoh has a customer base in more than 60 countries at 180,000 mainly mid-size and large companies
- For its fiscal-year 2022, office digital services and front-line digital services together made up 40% of Ricoh’s total sales.
- By fiscal-year 2025, Ricoh forecasts that they will make up over 60% of total sales.
- Office MFPs and production print will still be an important revenue source for Ricoh, but the company forecasts that these segments will contribute less revenue in the future.
- expand its proprietary software revenue and strengthen peripheral areas
- for its DocuWare and Axon Ivy businesses, that will entail expanding their direct-sales forces.
- expanding Kintone (database/process-management/communication platform) overseas after deploying it in Japan and United States
o open to acquisitions related to workflow digitization.
- maintaining manufacturing flexibly for its key edge devices, which include MFPs, document scanners, video and audio equipment, and white boards.
- digital printing market should experience compound annual growth rate of 8%
- rising costs for raw materials, energy, and labor costs in offset printing should propel a shift to digital
production printing.