For nearly a year, the position of president and chief operating officer of Omron Electronics LLC was vacant following the sudden death of Craig Bauer in June 2006. In May, Gregg Holst, 49, stepped into the role with four objectives for the company: to fill out the product portfolio, become more customer-centric, increase reliance on distributors for selling, and emphasize service.
Holst, who most recently served as executive vice president of Revere Electric Supply Co., a distribution and engineering partner to Rockwell Automation, has also held jobs at Schneider Electric's Square D unit and GE. He's not a novice when it comes to the industrial automation scene, and, therefore, has a keen sense of the next steps for a company that, while a successful global conglomerate, has stalled on some key business initiatives in the industrial space.
First and foremost, the products — which, Holst claims "are superior" — need to expand in scope. Omron has been known for its safety, sensor, and PLC products, but lacks products in areas such as power and motor control. To fill those gaps, Holst wants to establish brand label agreements with larger competitors. For example, about 20% of Rockwell Automation's product portfolio relies on Omron technology, Holst says. With that in mind, he is looking for areas where Rockwell or other competitors could provide Omron a reciprocal OEM offering.
Second, Omron's engineering and technology prowess needs to be articulated to end users, Holst says. This will be accomplished in the form of new marketing initiatives and technical resources for customers.
Third, there's been some confusion in how to buy Omron products, he says. In recent years, the company relaxed its dependence on distributors and tried to grow its business using a direct sales model. Going forward, "our primary way to market will be through distributors," Holst says. That effort will be balanced out with an e-channel Web site that distributors can access or where customers can shop online.
Fourth, Holst will consolidate service activities. Today, Omron services are scattered across three separate units managed by three different people. Those teams will be united under one big service umbrella. To that end, Omron's service offerings will go beyond the break-fix model of engineers in the field. "We'll expand the offering into preventative maintenance, asset management, and other things our customers are vying for today," Holst says.
Collectively, this effort is designed to tip Omron's North and South American industrial automation businesses — for which Holst is responsible — over the $1 billion mark. Omron does not break out financials by business region. Nevertheless, Holst has clearly stated his goal to the executive team in Japan. "I've extended my wishes to make sure this organization is well over $1 billion within the next four to five years," he says.
This article originally appeared in the October 2007 issue of Managing Automation.