Toward one global Yokogawa Industrial Automation

A message from Satoru Kurosu - Managing Director of YEI - March 2009

As you might already know, I am leaving the Industrial Automation Business Headquarters at the end of March. Though it was for such a short period of two years, it has been a privilege working with you and I appreciate your dedicated support.

The time flew by quickly. When I was first appointed to this position, the Industrial Automation Business Headquarters was facing a major issue that impacted its ability to meet extensive customer needs in our fast-growing international business: a shortage of Research & Development personnel. We took various measures over the two years such as increasing our Research & Development staff by approximately 280 (including new recruits and the hiring of 140 developers outside Japan), establishing new organizations for Research & Development management and standardization, and fostering Research & Development leaders through educational programs. These initiatives were only the beginning. We still need to shorten our time to market. We also need to verify the results of our activities and take further measures. It is unfortunate that I will not be able to see these efforts through to their conclusion. I know that you will continue these activities under Mr. Minaki, the new head of the Industrial Automation Business Headquarters.

In April, I will take charge of the Global Business Headquarters. For the first time in ten years, I will be in a sales management position. This new sales organization is different. This is a first for Yokogawa, a unified force that brings together sales, engineering, after-sales service, and value-added consultation services, and which includes personnel from all the YEI Group companies as well as the world headquarters. With 12,000 staff working together, we aim to provide our customers around the world comprehensive value-added services that will include sales, engineering, and maintenance.

With the increasing digitalization of plant data, customers look to suppliers for integrated solutions that get more value from data and improve productivity. This also leads to more requests for support throughout the plant lifecycle, which really is a big opportunity for us. To capitalize on this, it is necessary to maintain close coordination between our Research & Development unit that develops core products and organizations such as sales, engineering, and service that supply those products as integrated solutions. In this context, it is significant that a Global Business Headquarters is being established and I am being appointed as its head after being the development director.

In closing, I would like to mention my lunch meetings with the Industrial Automation staff. Though I did not meet everyone, I was able to talk with 825 people in total. Through these conversations, I heard many engineers saying, “I am not sure if the product I developed is really useful for customers.” When development projects become too large, the division of labor tends to go to extremes. They probably feel this way because there is then less chance to have direct contact with customers. Last month I accompanied President Kaihori to a meeting and had a chance to talk with the chairman of Saudi Aramco, a fully integrated international petroleum company that has the world’s largest oil reserves. Having coffee together, we heard this person at the top of the world’s energy business say gratefully, “We can take time and enjoy coffee here because of Yokogawa’s highly reliable systems and products.” This is solid proof that the products you develop are actually helping our customers and are an essential part of an energy infrastructure that people all over the world depend on. As our business expands, people’s expectations and the pressure on us will increase. Please take this as a proof of your success and continue to make highly reliable quality products with full confidence.

We are in the middle of our voyage toward becoming the Global No.1. As One Global YOKOGAWA Industrial Automation, I will continue working with you in the global marketplace. I would appreciate your continued support.

Satoru Kurosu