- Connectivity of information
Omron’s report emphasizes the management’s focus on capital efficiency, using indicators such as Return On Invested Capital (ROIC) and Return On Equity (ROE). The report explains fully why those indicators are used for evaluating each business division in order to capture performance, regardless of its characteristic and scale.
The report introduces Omron’s approach to monitoring its profitability by using a ‘tree’ diagram which identifies the significant factors and measures which contribute to its ROIC. The company also uses these measures as key performance indicators.
The report further describes the company’s approach to increase responsiveness to changes in the operating environment through a plan-do-check-act (PDCA) cycle. This allows readers gain a good understanding of how Omron strives to enhance its performance, by systematically monitoring the interrelationship between the management indicators and the activities of each business.