Restructuring Japanese Business

(1)

Restructuring Japanese Business

Models in Global Arena

Kiyoshi Kobayashi

Graduate School of Management

Kyoto University

USJI Workshop

March 20 2013

March 20, 2013

(2)

Economic Growth

• OECD

OECD

1 68%

1.68%

twice in 2050

• Non-OECD

2.47%

five times in

2050

• 185 countries will become middle class

co ntries among 224 co ntries and

countries among 224 countries and

regions

(3)

• 20

th

century world economic regime

polarization : few developed countries and

po a

at o

e

de e oped cou t es a d

many developing countries

• 21

st

century world economic regime

y

g

a large number of middle class counties

competing each other to transform

toward developed countries

(4)

•

20

th

century regime

•

20

th

century regime

comparative advantage of developed countries:

knowledge production, product cycle theory

•

21

st

century regime

globalization of knowledge workers markets

diminishing comparative advantage in knowledge production

between developed countries and developing countries

p

p g

What is the comparative advantage of developed countries?

(5)

Business Model

• Middle income population of developing

countries will be 1.2billionby 2030. Larger

y

g

than the total population of US, EU, and

Japan

• Model a: one-size-fits-all standard

(6)

Commoditization

Galapagosization

(7)

Architecture

M d l

f

hit

t

• Modular form architecture

• Because the module that is part of each has

f

t

lf

t i

d b t l

f

d

t

features a self-contained, but also formed a product

gather a posteriori the parts that had been designed

separately in advance it is a product worthy as a

separately in advance, it is a product worthy as a

whole.

• integral architecture

• The delicate balance between the parts as a result

of a number of inter-granular design parameters

of a number of inter granular design parameters

were adjusted to provide the product as a total

system.

(8)

T d

t t th t

h

l

ith fi

t

i

• To demonstrate the technology with fine tuning

Japanese companies, has created the world's

preeminent Integral product.

p

g

p

• In standardization competition based upon

modularity Japanese companies lost their

titi

competitiveness.

• Standardization by modular competition,

commoditization of product technology will

continue.

• Integral Architecture based on the module.

g

customization based on the local context of the

local

(9)

Two sided markets

Two-sided markets

markets where platforms enable interactions between

d

d t t

t th t

(

lti l ) id

“

end-users, and try to get the two (or multiple) sides “on

board” by appropriately pricing each side (Rochet and

Tirole, 2003))

• System competition (Silicon Valley/Hollywood model)

Self-destruction process of markets

Standardization (dialog innovation)

• Dialectic innovative markets (Moe model)

many creators, deep specialization

(10)

Creative class (by R Florida)

Creative class (by R.Florida)

Talent

M " fi d d

technology

tolerance

Moe means "a rarefied pseudo-love for certain fictional

characters (in anime, manga, and the like) and their related

tolerance

and the like) and their related embodiments.

Silicon valley/Hollywood model

–tolerance for getting new talents

g

Moe model

- tolerance for getting reputation

(11)

(12)

3D figure Deformation Original Coslpay Coslpay Miku Hatsune Hatsune 2D character image

(13)

Cosplay and Racing team

3D figure

(14)

C

t St

t

(U i l )

Cost Structure (Uni clo)

Shop revenue 34% Profits 8% Loss 20% Manuf.cost 20% H.Q cost 10% Loss 20% Transportation cost 5%

(15)

(16)

(17)

Time Space Management

Time-Space Management

(18)

Advanced Long tail model

Contents markets

Market size

Positive/

greatest

profits are obtained from a success work.

Therefore, intellectual property management is also important., p p y g p -> Hollywood model do not have variety.

The break-even point of Hollywood

The break-even point of Japanese Major Comics Magazine

The break-even point of self-published comic book

(19)

cook-one's-own-food market

P d

l

• Producer=consumer complex

• Comiket (self-published comic book

fair)

• Comiket 76, 2009, 560,000 attendees

The sales of a self-published comic book

are over 10 billion yen(100 millions euros).

(20)

(21)

KAIYODO (

海洋堂

)

• Japanese company dedicated to figurines

and garage kits

and garage kits.

– Revoltech is a portmanteau for "Revolver Technology," in

reference to the unique "Revolver Joint" articulation which all of

reference to the unique Revolver Joint articulation which all of

the figures in this particular series utilize. This gives the figures a

wide range of motion and stability, allowing for many dynamic

and varied poses

and varied poses.

Asura(God of a battle of ancient India)

Figure overall height: 140 mm Movable part: All the 33 places

3800 (38 )

(22)

• Participants are 40,000 or more people,

and sales are 3 billion yen (30 million

euro) or more in one day.

(23)

Dialectic creative process

p

innovation knowing

customers

suppliers

evaluation Common knowledge

Shinise Food Art and _Culture _Public

(Ryokan, Gion,) (Sushi, Kaiseki) (entertain., tea, flower) services

文化・伝統・歴史

(24)

(25)

(26)

(27)

(28)

High context type service

•

Ｇｅｎｅｔｉｃ

inheritance of

「

core concept

」

Common structure Japanese service Iemoto （meta model） Duplication of standardized HQ （meta model） Asymmetric relations HQ services Inheritance of core competence service Front office service Front office customers _customers

(29)

communication

static

Context free service

static

Context free service Customs, norms

standardization

High context

Low context

Globally common consensus Tacit rules

Coherent values _Japanese

scalability efficiency

g

communications

consensus Coherent values ＰＯＳ・ＣＲＭ Japanese services efficiency コヒーレントな価値観持続的で毀損しにくい価値の源泉価値観

dynamic

(30)

o

monpakari Model

o

monpakari

Model

S

i

C

Interaction

(Ad‐hoc)

Knowledge

Service Consumer

Interaction

Runtime

l

Duality between service

Role Model

Duality between service

provider and consumer

Service Provider

High‐Context Information

(Culture, History, Lifestyle)

Proactive Anticipation

(31)

Value creation of high context service

Dialectic value creation

客

A

h

P

i d

客

Approach

Orientation

Feedback

Perceived

Quality

Satisfaction

Loyalty

Hi h

Ch

f

B

店

Context

High

Change for

Better

Quality

Better

Sales

(32)

Multi context model

ー

Context-dependent model:

Edomae-sushi

Context-type:

High maturity level

Common Knowledge Base Consumer Role Model Menu 1 Enter High maturity Menu 2 Menu 3 Men 4 Order without menu

Eat Check Exit

Menu 5 Menu 4

without menu

Role Model

Shift to “low maturity level” if the consumer

can not recognize High

maturity

Role Model

Provider(Chef)

High

maturity Common_{Knowledge Base:}

Provider(waiter)

maturity _{Knowledge Base:}

(33)

New creative society

(cook one's o n food econom )

(cook-one's-own-food economy)

• Creation & Reputation (C&R)

– The new concept replaced with R&D

p

• In the new creative society, the whole

quality is enhanced by very various

participants creating contents and

criticizing(Reputation) with each other.

Learning through interaction

(34)

Asia Business Leader

Training Project

g

j

March 2013

March, 2013

(35)

GSM-KU will develop efficient human network with top business

Objectives

schools and government organizations in Asian region.

Taking advantage of the human network, GSM-KU gives quick training for potential Asia business leaders who can conduct

Objectives

business effectively in Asia, and develop educational curriculum and materials for the training.

India Philippines Thailand China Vietnam

India, Philippines, Thailand, China, Vietnam,

Indonesia, Malaysia, Japan

1

Countries

1 year

Half year lecture / practice … GSM-KU

C

t

Training Term

y p

Lectures will be given at Tokyo or Kyoto, by the overseas invited lecturers from partner business schools and government

organizations in Asian region. Optional business-oriented English

<Strengthen Core Competency>

 Cross cultural  Business Ethics

Module1

communications CSR, Environment

 Human Resource

 Basic Knowledge and

Development (HRD),

Rebuilding an Organization

Structure and Promotion g

Expertise for Global Business

(Local conditions, Social institutions, Strategy building, Innovation, Case analysis)

 Public Relations

 Business Identity

<Training Advanced Competency>

Module2 3

 Insight for the

Module2-3

 Insight for the future Society and

Vision Creation

 Communication and

Negotiation Skills

(37)

Major companies Government

Organizations

Research Institutes Asian Business Schools

& Government Organizations Network India IIMC Major companies Major companies g (2013) Thailand CBS China CEC Government Organization s Research Government Organization s Research

Japan

Kyoto

Research Institutes Research Institutes Malaysia IIUM Philippines UP / Ateneo

Kyoto

University

Major companies Government Major companies Government UP / Ateneo University Organization s Research Institutes Organization s Research Institutes Vietnam UTC / Hanoi University of Foreign Indonesia UI / ITB Major companies Government Major companies Government y g Trade UI / ITB Organization s Research Institutes Organization s Research Institutes

(38)

Major Companies Government Organizations Research Institutes Asian Business

Schools & Government Organizations Network (2014 ) Japan GSM-KU I di Philippines Major Companies Government Major Companies Government (2014~) India IIMC Philippines UP / Ateneo University Government Organization s Research Institutes Government Organization s Research Institutes Thailand Vietnam UTC / H i Asian Business School / Government Institutes Major Companies Institutes Major Companies Thailand CBS UTC / Hanoi University of Foreign Trade Government Organization Consortium Companies Government Organization s Companies Government Organization s China CEC Indonesia Research Institutes Major Research Institutes Major CEC Malaysia IIUM UI / ITB Companies Government Organization s j Companies Government Organization s Research Institutes s Research Institutes Major Companies Government Organization s Research Institutes

(39)

Asia Business Leader Training Project S International Network Study Environment CBS IIMC Language Training (English & Local

Module 0 (optional) (Business English) (Makati, Manila) KBRC IIMC Module 1 (Tokyo) GSM‐KU UTC language) Logistics Support CEC Collabor a n Module 2 (Makati, Manila) GSM‐KU Support on Site Advice on Field Research (China Enterprise Confederation) ITB IIUM UI a tio Field Research (Internship) KBRC ・・・ (University of Indonesia) (International Islamic University Malaysia) Module 3 (Kyoto) GSM‐KU University Malaysia) UAT UP (University_Philippines) of ・・・

Grow up Asian Business Leaders active and respected in Asian countries

UAT

Restructuring Japanese Business