From making things to making things. Manufacturing is a hierarchical organization for developing products. Creating something requires a support system based on a network-based organization centered on people. In other words, we will become an “autonomous society” where the growth of employees will lead to the company’s development.
On December 4th, the 26th IT media Executive Seminar was held on the theme of mobile work style and management innovation to make a comeback. For the keynote speech, Mr. Hideki Kurashige, Chairman and Representative Director of Sigmaxis, appeared and gave a lecture entitled “Considerations on the Koto-zukuri Model.”
Progress in IT and transition to solution business
There is a clear relationship between IT advances and business model changes. Tracing the history of information technology, which started with paper and pencil, the postal system was born in 1516, the telegraph appeared in 1844, the telephone appeared in 1876, the radio appeared in 1900, and the television appeared in 1925. Since then, faxes, digital cameras, video conferencing, mobile phones, etc., have been developed, and the data generated by these devices has ushered in the era of big data.
As for back-end technology, since the world’s first general-purpose computer, the IBM S/360, was introduced in 1964, computers have improved business operations by automating human tasks. Around 2000, a trend also emerged to aim for overall system optimization by submitting applications such as ERP and SCM.
Sigmasis Chairman Kurashige
Today, it is more important than reducing costs to create new business models, strengthen customer relationships, or increase knowledge. The emphasis is on creating new value, such as through management.” (Mr. Kurashige)
To create new value, an optimal business model is required. One of the traditional business models is the “product business model.” This business model manufactures products in response to everyday needs in the market. Currently, the relationship between the customer and the provider is a simple transactional relationship; the acquisition of market shore is a key performance indicator (KPI), and the expansion of product competitiveness and sales coverage is the key success factor (Critical Success). Factors: CSF).
The value emphasized in this model is “added value.” Competition has revolved around developing and providing new products or adding new functions at the lowest cost.. This is where the idea of ”problem-solving value” emerged.
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While added value is a “creator’s value concept,” problem-solving value is a “buyer’s value concept.” This is a value concept in which buyers decide whether to buy a product or not based on how well the product solves their problems.
The model that corresponds to this problem-solving value is the “solution business model.”
“It is not possible to satisfy all customers with one product. Therefore, the solution business is to improve customer satisfaction by providing ‘services’ that can meet the unique needs of customers.” (Mr. Kurashige)
In the solution business, customer relationships become long-term; the required KPI is client share, and the CSF is the ability to understand and solve those issues.
The business model of “manufacturing” and “creating things.”
Product business is about “manufacturing”, and solution business is about “creating things.” Manufacturing is profit-oriented because it only makes things that will sell, and there are algorithms for making things. It emphasizes process and pursues efficiency. Manufacturing requires human resources (costs) who faithfully follow the process.
“Manufacturing is often compared to a factory, but the main focus is on the system for developing products, and expanding profits based on business management and labor management in a hierarchical organization leads to company growth.” “On the other hand, in creating things, the main purpose is to solve problems; unless the purpose is clear, it cannot be achieved.” (Mr. Kurashige)
Mr Kurashige also said, “There is no algorithm in creating things, and a heuristic approach that derives the answer through repeated trial and error is effective. Therefore, the pursuit of creativity, not efficiency, is emphasized, and the results What is important is whether we have reached this point. Not everyone can achieve this, and it depends on specific people, so we need human resources (assets).”
Creating things is centered around people and requires a support system based on a network-type organization. In other words, we will become an “autonomous society” where the growth of employees will lead to the company’s growth.
Mr. Kurashige has the following about the business environment that will make the world of Kozukuri a reality. “We are transitioning from an industrial society to a knowledge society. Peter Drucker defined a knowledge society as one in which knowledge is the most important asset and resource.
Our society is undergoing rapid digitalization, globalization, and solutions. Particularly in the face of globalization, we must compete against the rest of the world and secure a competitive advantage. Furthermore, it is necessary to remember terrorism, natural disasters, and G0 (depolarization).
Mr Kurashige said, “Companies must grow sustainably, even in the unprecedented world of globalization and in unpredictable situations such as terrorism and natural disasters. To do this, it is necessary to promote innovation constantly.” To tell. In dictionaries, innovation is translated as “renovation” or “new innovation.” Still, Schumpeter meant not only the creation of production technology but also the introduction of new products, the development of new markets and resources, and the implementation of new management organizations.
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