2021_1q_omron_e

30/37 - Station Services: Migrate to Remote, Reduce Labor Intensity

We describe the evolution of railway station remote monitoring services on this slide. Currently, OMRON offers railway station-use remote monitoring systems as a part of its social solutions business and commands a high market share. As shown on the left hand side of the slide, the current remote monitoring system business consists of OMRON selling station service equipment and systems to railway companies. The railway companies operate the equipment and monitoring systems themselves. However, the current remote monitoring service only covers a subset of station operations, limiting the contribution to reducing labor. Going forward, OMRON will focus on tapping into the outsourcing needs of the railway companies. As shown on the right hand side of the slide, OMRON proposes to not only offer station service equipment but also offer a station operation service in which an OMRON service center takes on station operations including onsite customer service and security. Through this service, we aim to both aid our customers in reducing labor and contribute to safe, secure and pleasant station experiences. We have already started to offer this service to some railway operators. In future, we aim to provide remote station operation services to all of our railway customers. We aim to transform our business structure. Our objective is to achieve sales growth by moving away from simply selling products outright to accelerating our focus on service businesses. This completes my discussion of the 3 specific post-COVID-19 initiatives for OMRON.