Sony reorganizes major business lines, seeks greater interoperability

Posted on February 27, 2009 - 09:21 by Rick C. Hodgin

Tokyo (Japan) - Today, Sony announced a major reorganization and restructures of its electronics and game businesses. In addition, Sony will receive an entirely new management structure, along with new management teams and divisions which operate across the company. Sony claims the reorg will "improve profitability and strengthen competitiveness in the midst of the continued global economic crisis," though the real benefits to consumers may be the networking and open-standards compliance Sony is now committed to.





Sony is looking to modify the way their devices operate by introducing fully networked, multi-functional, open technologies across all of their product lines. This means single devices will be able to do more than their base abilities by operating in a shared, networked manner via protocols and interfaces that other non-Sony systems will also use, even including PCs. Sony is also looking to become a greener company.



Said Howard Stringer, new management team lead, "This reorganization is designed to transform Sony into a more innovative, integrated and agile global company with its next generation of leadership firmly in place. The changes we're announcing today will accelerate the transformation of the Company that began four years ago. They will now make it possible for all of Sony's parts to work together to assume a position of worldwide leadership and, together, achieve great things."



Two new business groups will be created: The Networked Products & Services Group (NPSG) and The New Consumer Products Group (The New CPG).

The NPSG will be absorb Sony's current Computer Entertainment (SCE) division, which includes personal computers (like Sony Vaio), personal electronics products like Sony's media players, as well as their related software and services division. Kazuro Hirai will become executive VP and lead the NPSG, though he will also retain his current role as President and Group CEO of SCE. Kunimasa Suzuki, currently president of the Consumer of America Group in the US, will become senior VP of Sony Corporation and Deputy President of this group. Mr. Suzuki will lead the new home and mobile business incubation project within this group, designed to create new products that utilize the best technologies from across the Company, as well as the VAIO Business Group.



The New CPG will include its larger home entertainment technologies, including television, digital imaging (mobile cameras, video) as well as home audio and video. This new group's primary goal will be to return to "profitability and sustained growth". Hiroshi Yoshioka will become executive deputy president of Sony Corporation, and president of the New CPG. The Semiconductor and Component Business Group (SCBG) will also report to him to coordinate with Sony's other products. Yoshihisa Ishida, currently senior VP and president of the Vaio Business Group, will head the TV Business Group.



In addition, two "cross-company units" will be created which oversee operations in all areas to ensure communal interoperability, and also idea sharing to take advancements in one area and see how they could be employed in other areas.



These changes will take effect April 1, 2009. See Sony's press release, or download PDF.




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