Fujifilm: Localized Sustainability

Fujifilm The group was established in 1934 and consists of two business companies, Fujifilm Co., Ltd. and Fuji Xerox Co., Ltd. The business scope has expanded from the traditional film field to three fields: imaging, medical health & high-performance materials, and file processing. Founded in 2001, Fujifilm (China) Investment Co., Ltd. has inherited the glorious and long-standing historical tradition and corporate culture of the Fujifilm Group. Its main businesses include digital cameras, imaging, printing, medical systems, life sciences, and industrial materials.

Hiroshi Wu graduated from Keio University, a famous Japanese university. After graduation, he joined the Fujinomiya factory and started his 32-year career in Fujifilm. He served as the head of the global imaging product division and accumulated rich business and management experience in the field of global business. Since June 2017, Boxin Wu has served as President of Fujifilm (China) Investment Co., Ltd.

Focus on award-winning management practices

As the third largest market after Japan and the United States, Fujifilm's China business currently accounts for 12%-13% of global sales, and the value of the Chinese market in the entire group It is still improving, thanks to Fujifilm's goal of becoming an indispensable and sustainable enterprise when it is deeply cultivating development in China, based in China, discovering needs, and meeting them.

Fujifilm not only introduces overseas research and development products and services into China, but also deeply analyzes and digs into China's changes and needs, and combines the unique needs of the Chinese market with the group's technical resources and knowledge to provide high-quality products. High-quality innovative products, services and solutions, including localized research and development according to China's needs, adding more new functions and new values to products, such as self-service film printing systems developed for China's medical environment, all-electric Suspended digital medical X-ray photography system and Lingsu 7000 mobile digital X-ray photography system, silver salt printing waste liquid treatment system launched for users of professional photo studio workshops in China, which helps to achieve environmentally friendly production, etc.; in addition , Fujifilm also cooperates with the expertise of local partners to deepen the integration and contribute value to the Chinese society. For example, Fujifilm has cooperated with China Resources Pharmaceutical Group to carry out comprehensive cooperation in the fields of pharmaceuticals, medical equipment and health care products, and has cooperated with Hisun Pharmaceutical, The China-Japan Friendship Hospital and China National Emergency Prevention and Control Drug Engineering Technology Research Center signed a memorandum of cooperation to jointly promote the clinical development of anti-influenza virus drugs.

The development of localization in China also depends on Fujifilm's localized talent policy in China. At present, most of Fujifilm (China)'s management and management leaders are Chinese. By fully mobilizing and utilizing local employees The ability and knowledge to help enterprises better understand the needs of the Chinese market, develop local businesses in a more targeted manner, and become a sustainable enterprise required by the Chinese society.

Dialogue with award-winning companies

CEConlines: what was the opportunity to drive your company to implement "localized sustainable development"? What kind of internal and external environment was the company in when the practice was launched?

Boxin Wu: At present, Fujifilm has about 30 subsidiaries including about 10 factories in China, with about 13,000 employees, and China's turnover accounts for about 30% of the total turnover of Fujifilm Group. 12.2%, China is a crucial market for Fujifilm.

Currently, the Chinese market is very different from the United States, Europe and Japan. The Chinese market is still growing at a very high speed and is a huge market with great potential and vitality. In the ever-changing market environment, it is possible to succeed only by placing more priority on the Chinese market, basing itself in China, discovering needs, and meeting them.

According to the characteristics of the Chinese market, Fujifilm has formulated a localized sustainable development strategy, combining the unique needs of the Chinese market with the group's technical resources and knowledge, and working with local partners to promote new businesses, The research and development of new products and services, the use of localized talents, and the in-depth brand communication have made Fujifilm a company that is needed by the society in China and has long-term sustainable development.

CEConline: What is the relationship between localized sustainable development and your company's corporate strategy or your long-term planning in the future?

Boxin Wu: In recent years, the Fujifilm Group has been promoting the "NEVER STOP" brand activity around the world to show the world that Fujifilm has successfully transformed itself from a company centered on photographic film, and Provide new value in a wider range of fields, and contribute to solving many social issues at the same time. In fact, innovation is also the most fundamental driving force for Fujifilm's re-emergence in China.

Especially in the localization of product research and development, at present, Fujifilm has established two research and development bases in China, one in Shanghai Jinqiao and the other in Suzhou. To properly apply the research and development results for the Chinese market, it is not only to transplant the research and development results of the Japanese headquarters to China to meet the consumer demand in China.

According to the characteristics of China's market, Fujifilm's product development strategy in China is undergoing two changes: on the one hand, it discovers the needs of China, and produces corresponding products to Chinese users to meet local needs. Another aspect is to find suitable Chinese companies for cooperation.

For example, in the medical field, Fujifilm will further cooperate with medical institutions in China to integrate more medical diagnostic equipment with AI technology to help doctors make diagnoses, and put medical diagnostic information on the cloud through the Internet , these technologies will also benefit the public more.

CEConline: What measures has your company taken to promote the implementation of this management practice? What obstacles did you encounter in the process of advancing, and how did you solve them?

Boxin Wu: To implement the strategy of "localized sustainable development", for Fujifilm (China), it is not only about introducing overseas research and development products and services into China, but also in-depth analysis and mining of China's Changes and needs, combine the unique needs of the Chinese market with the group's technical resources and knowledge, and provide high-quality innovative products, services and solutions, including localized research and development according to China's needs, giving more products to products. New features and new value.

For Fujifilm itself, on the one hand, it needs to rely more on the company's localized talent policy. Local employees can best understand China's unique values, culture, and way of thinking. An efficient Chinese organization allows local employees to hold important positions, and will be independently responsible for key links such as market development, resource preparation, strategy execution and result evaluation in the future. At present, most of Fujifilm (China)'s management and management leaders are Chinese. By fully mobilizing and leveraging the capabilities and knowledge of local employees, it will be able to better help companies understand the needs of the Chinese market and develop local businesses in a more targeted manner.

Of course, Fujifilm cannot rely on its own strength. In addition to deepening local talent management and finding suitable Chinese partners, it is also very important to establish a win-win situation. Partnerships and alliances will be key to winning the future. In October 2018, we signed a memorandum of cooperation with Zhejiang Hisun Pharmaceutical Co., Ltd., China-Japan Friendship Hospital, and China National Engineering Technology Research Center for Emergency Prevention and Control Drugs to jointly promote the clinical development of anti-influenza virus drugs in China, so as to reduce the incidence of influenza virus. Minimize the risk of a pandemic. We have the core technology in this area, but not enough resources to test the market, manufacture and obtain government approval, which is why we are in alliance with the above three institutions. In China, we also invested in China Resources Pharmaceutical Group, which has a number of companies responsible for pharmaceutical and operational management.

In addition to finding good partners and achieving win-win results, joining the academic network is also one of the ways to find partners. Many Chinese medical colleges have programs to research leading technologies, such as AI medical equipment technology. We can find partners by funding projects, showcasing and introducing the company's technology. We will also present challenges in certain new areas on the company website, and then recruit partners who are willing to solve problems together.

CEConline: Up to now, what positive impact has this management practice brought to your company's business development, especially in terms of performance, and what achievements have you achieved?

Wu Yuboxin: For example, a self-service film printing system has been developed for the medical environment in China. This software is connected to the hospital information database. Patients can scan barcodes on the self-service film machine to print their own medical films and reports, effectively satisfying It can reduce the printing needs of patients, reduce the time for doctors to notify and wait for patients; Fujifilm (China) has also developed the Lingsu 7000 mobile digital X-ray photography system that can improve the work efficiency of medical institutions, making it easier for patients to take pictures directly on the hospital bed. It is possible; the advanced irradiation technology makes the exposure lower, reduces the potential safety hazards and improves the acquisition speed; the software is equipped with an advanced image workstation to optimize the image accuracy and improve the diagnostic quality in all aspects.

In addition to the medical field, in the imaging field, Fujifilm has launched a silver salt printing waste liquid treatment system for the users of professional studios in China, which can help achieve environmentally friendly production. The color display waste liquid, bleaching waste liquid and stable waste liquid are epoch-making three-in-one treatment and concentration, which can reduce waste liquid by 80% in the workshop and realize environmentally friendly production.

In addition, we also cooperate with the expertise of local partners to deepen integration and contribute value to the Chinese society. Comprehensive cooperation, and signed a memorandum of cooperation with Hisun Pharmaceutical, China-Japan Friendship Hospital, and China National Emergency Prevention and Control Drug Engineering Technology Research Center to jointly promote the clinical development of anti-influenza virus drugs.

CEConline: What is the focus of your company's management optimization and upgrading in the next stage? Faced with the current complex economic situation at home and abroad, how will your company respond?

Boxin Wu: The strategy of "localization and sustainable development" is the key and core of Fujifilm's future development in the Chinese market, and it will also be the direction of the company's future development, especially in the future of Fujifilm's development The two main areas of healthcare and high performance materials.

In terms of medical and health care, Fujifilm (China) is in line with the goal of "Healthy China 2030", which involves three main issues: 1. Improve the average life expectancy of the whole Chinese people, 2. Solve the problems caused by poor health Various diseases caused by living habits, 3. Relieve the pressure of tertiary hospitals caused by unbalanced medical resources. Fujifilm will play a role in addressing these three issues through the company's products, technologies and solutions.

In terms of high-performance materials, another key area, it is in line with the current key strategic direction of "China's intelligent manufacturing transformation", aiming to create products and services that meet the needs of the Chinese market. There are three key directions of Fujifilm's high-performance materials development in China: first, information and communication technology based on intelligent hardware; second, China vigorously advocates the environmental protection field under green development; third, China's rapidly developing new energy vehicle field . Improve the localization of products and services in China, including strengthening external exchanges and cooperation with the government, scientific research institutes and local enterprises, and continuing to optimize the cultivation of local talents, so that Fujifilm can proceed from the local situation in China, timely, Accurately providing the company's products and services to the market can not only achieve business performance growth, but also contribute to society at the same time.

Reviews from reviewers

Liu Shaoxuan

Vice Dean of Shanghai Jiaotong University Antai College of Economics and Management

Fujifilm's localization practice in China , which fully reflects the enterprise's self-breakthrough and continuous growth in the VUCA era. By integrating localized talents, partners and professional network, Fujifilm has successfully created a sustainable development path that not only utilizes its own advantages but also meets the needs of the local market, which is worthy of reference for companies expanding overseas markets.

Gao Jingxin

Director of Executive Education Center, Antai College of Economics and Management, Shanghai Jiaotong University

China's localization development is actually an internationalization process for Fujifilm itself. Seeking innovation and breakthrough in the market of the world's second largest economy is a new proposition for the Group's international development. This approach is very worthy of reference and thinking, and fully considers the strategic positioning and management practices in the changing environment.

Zhang Yulai

Deputy Dean of the Japan Research Institute of Nankai University

Fujifilm has grasped the pulse of the times and established "localized sustainable development". As an excellent company in the world, Fujifilm obviously has many competitive advantages, but in the Chinese market, whether it can overcome "acclimatization" is the key. In recent years, "China's demand-driven innovation" has become a new development model for some multinational companies. It is believed that "open localization" will help Fujifilm to stand firm in the Chinese market.

Wang Sai

Partner of Kotler Consulting China and a well-known growth strategy expert

For a long-term business, it is in line with the tide of the times Timely transformation and launching products and service solutions that adapt to new technologies and new trends under new demands are the core elements for an enterprise to keep its vitality.

For an international enterprise, meeting local needs, leveraging local strength, and inspiring local wisdom are the only rules for an enterprise to improve its operational efficiency. Fujifilm's "localized sustainable development" strategy is a measure to inject new vitality and impetus into the enterprise under such a large environment, which can be regarded as a model of strategic transformation in the industry.

Zhang Zhenghua

Founder of Best Consulting Group, Chinese Enterprise Transformation Expert

Fujifilm's successful transformation and transformation has become a classic case of business. The transformation and development of film to cosmetics, medical treatment, and the development of new materials now also allows us to see the technical depth of Fuji Group and the brand spirit of "never stop". From Japan to China, Fujifilm's step-by-step development, from business, product, to talent layout, all demonstrate the importance of regional localization strategies. The real customer-centricity is not simply to meet product specifications and sales. The price itself, but really from the localized customer base, to discover the culture, demand background and development trends, and truly serve localized customers!

Duan Lei

Chairman of Hanzhe Consulting Group and President of Hanzhe Investment

The practical highlight of Fujifilm (China) participating in the evaluation is "localized sustainable development" ” This conclusion also points out the direction for all foreign-funded enterprises in China to make breakthroughs and upgrades in the new era. At the beginning of the reform and opening up, there was a shortage of domestic products and technologies. Foreign-funded enterprises quickly entered China with mature products, technologies and management methods, which were generally recognized by consumers. In recent years, with the rapid development of China's economy, the technology and management level of local enterprises have rapidly improved, consumers' disposable income has grown rapidly, and the trend of consumption upgrading is very obvious. More and more, the way of “acclimatization” and unsustainability is reflected in Fujifilm’s practice. Fujifilm’s practice has given these companies at least three inspirations: first, adjust the priority of resource allocation and put more resources into the Chinese market; second, Study the Chinese market, dig deep into demand, actively promote localized research and development, and respond quickly to the market; third, establish long-term and stable cooperative relations with various local enterprises, research institutions, and social organizations to seek common development.

Xie Zhaohui

Founder of Zhixue Consulting and Founder of Balanced Scorecard

In-depth interpretation of local national strategy of Chinese partner, focusing on "Healthy China 2030" , "Intelligent Manufacturing", in the fields of conquering cancer, health examination, graded treatment, high-performance materials, etc., implement business-related diversified layout, integrate local talents, enterprises, government, scientific research and other resources, gain in-depth market insight, and create local sustainable products and service innovation capabilities, Fujifilm is a model for building the core competitiveness of an enterprise's global operation.

Ye Xiaosong

India Group-Chairman of Xiamen Hill Enterprise Management Consulting Co., Ltd.

Based on the judgment of the growth of the Chinese market, Fujifilm continues to deepen its business Localization strategy for the Chinese market. And the most important localization is talent localization. On the basis of talent localization, the localization strategy of the whole value chain of R&D, production, sales and service has been carried out, which has realized the comprehensive building of organizational capabilities and better realized the service of greater value for Chinese local customers. The company has won a firm foundation for sustainable development.

Photo/Fujifilm