Publications
Publications
- February 2024
- HBS Case Collection
More than Optics: Olympus's Vision to Become a Leading Global MedTech Company
By: David J. Collis and Haisley Wert
Abstract
In August 2022, CEO Yasuo Takeuchi reflected on Olympus Corporation’s recent transformation from being known as a Japanese consumer camera company to becoming a leading global medical technology (MedTech) company. Over the past dozen years, Takeuchi and prior leadership had recovered from a major scandal and reinvented Olympus’s purpose, governance, portfolio, organization structure and operating model.
When asked if he could have done any better, he laughed with a humble smile. "There's no 'perfect' in the world—but we are doing almost perfectly. I am not a very optimistic type of person. But we are certainly advancing [the transformation] in the right direction. I have to say, it is working very well.'"
Despite being on course, the journey was ongoing. Strategically, the evolving medical technology landscape demanded new capabilities—notably building an integrated digital solutions ecosystem. Organizationally, Takeuchi was at the helm of a matrix organization in which product divisions did not necessarily have full authority for all their activities; corporate functions were learning how to establish their global roles; and regional companies still drove local sales. And personnel issues remained a concern. Senior executive positions were staffed with “two in a box”—one Japanese and one non-Japanese manager—while Japanese employees were adapting to a job-based rather than a seniority system and the widespread use of the English language in meetings. How should Olympus navigate these challenges to deliver on its aspiration to be a leading global MedTech player?
When asked if he could have done any better, he laughed with a humble smile. "There's no 'perfect' in the world—but we are doing almost perfectly. I am not a very optimistic type of person. But we are certainly advancing [the transformation] in the right direction. I have to say, it is working very well.'"
Despite being on course, the journey was ongoing. Strategically, the evolving medical technology landscape demanded new capabilities—notably building an integrated digital solutions ecosystem. Organizationally, Takeuchi was at the helm of a matrix organization in which product divisions did not necessarily have full authority for all their activities; corporate functions were learning how to establish their global roles; and regional companies still drove local sales. And personnel issues remained a concern. Senior executive positions were staffed with “two in a box”—one Japanese and one non-Japanese manager—while Japanese employees were adapting to a job-based rather than a seniority system and the widespread use of the English language in meetings. How should Olympus navigate these challenges to deliver on its aspiration to be a leading global MedTech player?
Keywords
Global Human Resource Management; Medical Technology; Corporate Strategy; Transformation; Globalization; Business Model; Leading Change; Organizational Structure; Organizational Change and Adaptation; Medical Devices and Supplies Industry; Japan; United States
Citation
Collis, David J., and Haisley Wert. "More than Optics: Olympus's Vision to Become a Leading Global MedTech Company." Harvard Business School Case 724-426, February 2024.