STABILITY OVERVIEW

Cost of Ownership Stability

With close to 5 Billion dollars in sales and
over 30,000 different industrial automation
products, Omron is respected as an Manufacturing
automation leader around the globe. For
over 70 years, Omron’s reputation of
leading edge manufacturing processes,
high technology products, and extreme SENSING
quality standards have provided customers and
with the most advanced sensing and CONTROLS
control systems available in the market.
Through Omron’s long-term history and Technology Quality
dedication to core competencies, Omron
provides customers with a stable
partnership and peace of mind that is
required in doing business today and
tomorrow.

• Founded in 1933 by Dr. Kazuma Tateisi • Developed worlds first proximity sensor

• First product was X-Ray timer relay
• Global HQ located in Kyoto Japan
• Over 25,000 Employees
• Company Policy: “Quality First”
• Company motto: At work for a better life,
a better world for all.
• Direct support in over 65 countries
• Core Competencies are Sensing and
Controls
st
• 1 PLC developed in 1973
• Over 60% of business comes from
Industrial Automation related products
• #1 Global Market Share in Sensors,
Relays, Temperature Controllers, and
Device Net I/O
• #2 Global Market Share in Digital Timers
and Counters
• #3 Global Market Share in PLCs and
Vision inspection equipment
• Ranked 410th largest global
manufacturing company
• Ranked 78th largest electronics company
in world by…..

OMRON ELECTRONICS INC. Confidential Total Cost of Ownership Stability Overview

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Selling Strategies Stability
General tips
When talking to a customer regarding Omron’s
organizational stability, there are several areas that
must be covered. In general, most customers when
evaluating a company for a partnership or for
purchase of key items will focus on three main
areas. In the automation world, these three areas are:
1. Core Competencies – It is very important to
stress to your customer that Omron has
consistently focused on Controls and Sensing
technologies for many years and that we have
plans in place to continue to focus on these areas
for years to come. Core Competencies stress
what your company does best. In the automation
world, no other company makes sensing and
control systems as well as Omron.
2. Size – How large your company is may seem trivial, but in an age where companies are being bought
out, or going out of business at every turn, an organizations size can make all the difference in the world.
Dramatic data such as number of employees, sales revenue, and size in comparison to other organizations
your customer is familiar with will help convey this point and let them know you have a 5 Billion dollar
organization backing their decision.
3. Presence – Customers generally have a hard time purchasing products or systems from a company that
isn’t a leader. This holds especially true for Automation equipment. Showing a customer that Omron leads
competitors globally in multiple areas will give them peace of mind that Omron isn’t learning about this
business at their expense. In addition, explain to customers that we are a market leader in multiple product
categories and if a customer happens to ask the dreaded question, “What about Rockwell”? Smile politely
and inform them that Omron is larger than Rockwell Automation and that according to most global market
studies, Omron sells over 100,000 more PLCs annually than Rockwell.

When telling Omron’s Stability story, you are setting the stage and building credibility with your customer that
will last the entire relationship. In most cases, credibility is just as important if not more important than any
product feature or specification that you can show.
In closing, make sure your customer not only understands who Omron is, but make sure they understand the
value of dealing with a stable company. Asking your customer questions about how they view vendor
relationships is always a great starting point for a conversation on this topic.

OMRON ELECTRONICS INC. Confidential Total Cost of Ownership Stability Overview

One Commerce Drive For Internal
Schaumburg, IL 60173 Use Only
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Cost Of Ownership Presentation Stability

When presenting to a potential new customer, the Stability

section of the presentation should be first. It sets the stage
and establishes credibility for other areas of the
presentation as you go along.
Normally, the best way to introduce this portion of the
presentation is to ask customers what they know about
Omron. Be interactive and ask them to participate.
(Use the hyper link button to go directly to the stability
section)

When talking about a company’s stability, there are

usually three main areas to discuss. These include core
competencies or what an organizations focus is, the
company’s size, and finally market presence. With
companies being bought, merged, or even going out of
business, these days, partnering with a company that has a
stable background is very critical and holds a major place
in any major automation decision.

Omron is not new to the automation industry. We have

been in business for over 70 years and with close to 5
billion dollars in sales per year, (depending on the yen
rate) we are one of the largest automation companies in
the world.

OMRON ELECTRONICS INC. Confidential Total Cost of Ownership Stability Overview

One Commerce Drive For Internal
Schaumburg, IL 60173 Use Only
1-800-55-OMRON
Cost Of Ownership Presentation Stability

Omron actually manufactures over 300,000 products. One

thing that you will notice right away is that Omron
manufactures approximately 98% of these products. This
is an important thing to note as we go forward and
something we will mention quite often.

Most times when a history slide is shown, it is meant to

show highlights or key moments in a company’s
development. This slide does that as well, but more
importantly, it shows something else.
This slide not only demonstrates that Omron has been a
consistent leader in the development of sensing and
control systems, but it also shows that Omron’s
leadership in these areas have been so significant, they
have changed society.

What we are trying to point out is that many companies

make sensing and control products, but what makes
Omron different is how we make these products. Not only
do we specialize in sensing and control products, we
specialize in manufacturing the highest quality leading
edge technology sensing and control systems in the
industry. This is what Omron does best or what is called
our Core Competencies.

OMRON ELECTRONICS INC. Confidential Total Cost of Ownership Stability Overview

One Commerce Drive For Internal
Schaumburg, IL 60173 Use Only
1-800-55-OMRON
Cost Of Ownership Presentation Stability

Now there are several divisions within Omron. The

division that we represent is the Industrial
Automation division. This includes PLCs, Sensors,
Motion products, Temperature Controls and many
others.
(Mention products that your know your customer is
interested in)

Another differentiating factor from many of our

competitors is our global presence. We have direct
support in over 65 countries around the globe and
more than 1500 sales offices.
In most cases, customers in different regions of the
world have different needs. We have created
autonomous groups or what we call “World
Partners” to address this issue.
Here in North America, we have our own R&D,
distribution network, and even manufacturing
capabilities allowing us to support our customers
however they require.

For those of you who are concerned how much of

Omron’s business is dedicated to industrial
automation, this slide shows that over 60% of our
revenue comes directly from Industrial Automation
and components business. (Relay division and I/A)
Another fact to point out that most people find
interesting is that with over 25,000 employees
world wide, a majority of these employees are
located outside of Japan.

OMRON ELECTRONICS INC. Confidential Total Cost of Ownership Stability Overview

One Commerce Drive For Internal
Schaumburg, IL 60173 Use Only
1-800-55-OMRON
Cost Of Ownership Presentation Stability

If you remember in our earlier slides, we talked

about market presence being a key factor in
understanding a vendor’s credibility.
Omron actually has #1 global share in Relays,
Sensors, Temperature Controllers, and Device Net.
We also rank 2nd in Digital Timers and Counters,
and 3rd in vision inspection equipment and PLCs.
No other manufacturer is a leader in more
categories than Omron

For some reason, people seem to look at the PLC

ranking as more important than others. This graph
represents global market share in “Dollars” not
units. This is very important when you consider
that Rockwell and Siemens both have CPUs that
cost over $20,000. (Large category, PLC5)
Although Rockwell has strong market share in
Large and Micro categories, these are older
technologies. The categories that most people are
now using when going forward are the “Mid/Small”
which would be Slicks or our CS1s and the Nano
which is categorized as 32 I/O or less. In both of
these categories, Siemens, Mitsubishi and Omron
have larger market share than Rockwell.

This can be shown directly when looking at units

sold. Omron ranks a strong 3rd globally selling over
100,000 units more per year than Rockwell.

OMRON ELECTRONICS INC. Confidential Total Cost of Ownership Stability Overview

One Commerce Drive For Internal
Schaumburg, IL 60173 Use Only
1-800-55-OMRON
Cost Of Ownership Presentation Stability

The point we are trying to make is that Omron is a

larger company than Rockwell. This is not
according to us, this is according to business
journals, trade associations, and market studies.
If you look at how Rockwell’s automation business
has been declining over recent years, it is clear to
see that they are hanging onto legacy technologies.

The last item to show in this section is Omron’s

customer base. As you can see, we have a very wide
mix ranging from Automotive companies such as
General Motors, Honda, Nissan and Toyota, to food
companies such as Frito Lay, Sara Lee, and
Unilever. All of the customers listed here purchase
automation products such as PLCs, drives, or
motion products. (They aren’t customers who have
bought 3 sensors and we added them to the list)

It is hoped that we have showed that Omron is not

only a leader in the automation industry, but that we
are also an organization with a long-term history
and many things to offer.
Automation suppliers are many times more than just
a vendor, they are a partner. And when evaluating a
partner, understanding their business and having
peace of mind play a very important part in cost of
ownership.
(Click on either the top right corner or the bottom
left corner of the slide to return to the main menu.)

OMRON ELECTRONICS INC. Confidential Total Cost of Ownership Stability Overview

One Commerce Drive For Internal
Schaumburg, IL 60173 Use Only
1-800-55-OMRON