restructuring japanese business models in global...

Restructuring Japanese Business Models in Global ArenaModels in Global Arena

Kiyoshi KobayashiKiyoshi KobayashiGraduate School of Management

Kyoto University

USJI WorkshopMarch 20 2013March 20, 2013

Economic GrowthEconomic Growth

• OECD 1 68% twice in 2050OECD 1.68% twice in 2050• Non-OECD 2.47% five times in

20502050

• 185 countries will become middle class co ntries among 224 co ntries andcountries among 224 countries and regions

• 20th century world economic regimepolarization : few developed countries andpo a at o e de e oped cou t es a d

many developing countries

• 21st century world economic regimey ga large number of middle class counties competing each other to transformcompeting each other to transform toward developed countries

• 20th century regime• 20th century regimecomparative advantage of developed countries:

knowledge production, product cycle theory

• 21st century regimeglobalization of knowledge workers marketsdiminishing comparative advantage in knowledge production

between developed countries and developing countriesp p g

What is the comparative advantage of developed countries?What is the comparative advantage of developed countries?

Business ModelBusiness Model

• Middle income population of developing countries will be 1.2billionby 2030. Larger y gthan the total population of US, EU, and JapanJapan

• Model a: one-size-fits-all standard

• Model b: one-finds-own-size standard

Commoditization

GalapagosizationGalapagosization

ArchitectureArchitecture

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 d tfeatures 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 aseparately in advance, it is a product worthy as a whole.

• integral architecture• integral architecture• The delicate balance between the parts as a result

of a number of inter-granular design parametersof a number of inter granular design parameters were adjusted to provide the product as a total system.

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

titicompetitiveness.• Standardization by modular competition,

commoditization of product technology willcommoditization of product technology will continue.

• Integral Architecture based on the module. gcustomization based on the local context of the local

Two sided marketsTwo-sided marketsmarkets 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 marketsStandardization (dialog innovation)

• Dialectic innovative markets (Moe model)many creators, deep specializationsmall-sized markets

Creative class (by R Florida)Creative class (by R.Florida)Talent

M " fi d dtechnology tolerance

Moe means "a rarefied pseudo-love for certain fictional characters (in anime, manga, and the like) and their relatedtolerance and the like) and their related embodiments.

Silicon valley/Hollywood model–tolerance for getting new talents g g

Moe modelMoe model - tolerance for getting reputation

copy-tolerant models (open, quick evolution)

3D figureDeformationOriginal

CoslpayCoslpay

MikuHatsuneHatsune

2D character image

Cosplay and Racing team

3D figure

Original Animation

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%

Time Space ManagementTime-Space Management

Advanced Long tail modelContents marketsMarket 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 JapaneseMajor Comics Magazine

The break-even point of self-published comic book

variety/diversity

cook-one's-own-food market

P d l• Producer=consumer complex

• Comiket (self-published comic book fair)fair)

• Comiket 76, 2009, 560,000 attendees The sales of a self-published comic bookThe sales of a self-published comic bookare over 10 billion yen(100 millions euros).

KAIYODO (海洋堂)• Japanese company dedicated to figurines

and garage kitsand garage kits.– Revoltech is a portmanteau for "Revolver Technology," in

reference to the unique "Revolver Joint" articulation which all ofreference 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 posesand varied poses.

Asura(God of a battle of ancient India)

Figure overall height: 140 mmMovable part: All the 33 places3800 (38 )3800 yen (38 euro)

• Participants are 40,000 or more people, and sales are 3 billion yen (30 millionand sales are 3 billion yen (30 million euro) or more in one day.

Dialectic creative processp

innovation knowing

customerssuppliers

evaluationCommon knowledge

Shinise FoodArt and Culture Public

(Ryokan, Gion,)

(Sushi, Kaiseki) (entertain.,

tea, flower)services

文化・伝統・歴史

Traditional Diningg

High context type serviceHigh context type service• Ｇｅｎｅｔｉｃ inheritance of 「core concept」

Common structure Japanese service

Iemoto（meta model）

Duplication of standardized

HQ

（meta model）Asymmetric

relationsHQ

servicesInheritance of core

competence

service

Front office

service

Front office

customers customers

communicationstatic

Context free service

static

Context free serviceCustoms, norms

standardizationHigh context Low context

Globally common consensus

Tacit rulesCoherent values Japanese

scalability

efficiency

gcommunications communications

consensusCoherent 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

dynamicdynamic

omonpakari Modelomonpakari Model

S i CInteraction(Ad‐hoc)

KnowledgeService Consumer

Interaction

Runtimel l Duality between serviceRole Model Duality between service

provider and consumer

Service ProviderHigh‐Context Information(Culture, History, Lifestyle)

Proactive AnticipationProactive Anticipation

Value creation of high context serviceValue creation of high context service

Dialectic value creation

客 A h P i d客 Approach Orientation

FeedbackPerceived

QualitySatisfaction Loyalty

Hi h Ch f B店

High Context

Change for Better

Better Quality

Sales

Longevity

Multi context modelー

Context-dependent model: Edomae-sushi Context-type: High maturity level

CommonKnowledgeBaseConsumer

Role Model

Menu 1Enter

High maturity

Menu 2

Menu 3

Men 4Orderwithout menu

Eat Check Exit

Menu 5

Menu 4without menuRole Model

Shift to “low maturity level” if the consumer can not recognize High

maturity

Role Model

Provider(Chef)

High maturity

CommonKnowledge Base:

Provider(waiter)maturity Knowledge Base:

Edomae-sushi

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&Dp p

• In the new creative society, the whole quality is enhanced by very variousquality is enhanced by very various participants creating contents and criticizing(Reputation) with each other.

Learning through interaction

Asia Business LeaderAsia Business Leader Training Projectg j

March 2013March, 2013

GSM-KU will develop efficient human network with top business Objectivesschools 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 VietnamIndia, Philippines, Thailand, China, Vietnam, Indonesia, Malaysia, Japan

1

Countries

1 year

Half year lecture / practice … GSM-KUC t t

Training Term

y pLectures 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

Contents

organizations in Asian region. Optional business oriented English training will be given in Makati, Philippines.

Half year Field Research (Internship) … KBRCCCollaborating with business schools and government organizations in Asian region.

Qualification for Asian Business LeaderQualification for Asian Business Leader

Module1<Strengthen Core Competency>

Cross cultural Business Ethics

Module1

communications CSR, Environment

Human Resource Basic Knowledge and Development (HRD),

Rebuilding an Organization Structure and Promotion

gExpertise 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 Business Writing

Major companies Government Organizations

Research Institutes

Asian Business Schools & Government

Organizations Network

IndiaIIMCMajor

companiesMajor

companies

g(2013)

ThailandCBS

ChinaCEC

Government Organization

s

Research


s

Research

JapanKyoto

Research Institutes

Research Institutes

MalaysiaIIUM

PhilippinesUP / Ateneo

Kyoto UniversityMajor

companies

Government

Major companies

Government UP / AteneoUniversityOrganization

s

Research Institutes

Organizations

Research Institutes

VietnamUTC / Hanoi

University of Foreign

IndonesiaUI / ITB

Major companies

Government

Major companies

Government y gTrade

UI / ITBOrganization

s

Research Institutes

Organizations

Research Institutes

Major Companies

Government Organizations

Research Institutes

Asian Business Schools & Government Organizations Network

(2014 )Japan

GSM-KU

I diPhilippines

Major Companies

Government

Major Companies

Government

(2014~)

IndiaIIMC

PhilippinesUP / AteneoUniversity


s

Research Institutes


s

Research Institutes

ThailandVietnam

UTC / H i

Asian Business School /

Government

Institutes

Major Companies

Institutes

Major CompaniesThailand

CBSUTC / Hanoi University of

Foreign Trade

Government Organization Consortium

Companies


s

Companies


s

ChinaCEC

Indonesia

Research Institutes

Major

Research Institutes

Major CEC

MalaysiaIIUM

UI / ITBCompanies


s

jCompanies


sResearch Institutes

s

Research InstitutesMajor

Companies


s

Research Institutes

Asia Business Leader Training Project

S International NetworkStudy Environment

CBS

IIMC

Language Training (English & Local

Module 0 (optional)(Business English)

(Makati, Manila) KBRCIIMC

Module 1(Tokyo) GSM‐KU UTC

language)

Logistics Support

CECCollabora

n

Module 2(Makati, Manila) GSM‐KUS

uppo

rton

Site

Advice on Field Research

(China EnterpriseConfederation)

ITB

IIUM

UI

atio

Field Research(Internship) KBRC・

・・

(University of Indonesia)

(International Islamic University Malaysia)

Module 3(Kyoto) GSM‐KU

University Malaysia)

UAT

UP (University of Philippines)

・・・

Grow up Asian Business Leaders active and respected in Asian countries

UAT

Human Resource Development Network to Strengthen Japanese and Asian Companies

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