VOL.2-1 ICEBREAKING.

Transcription

1 VOL.2-1 ICEBREAKING

2 Kia Italia vs. Toyota The black car is a Crown, Toyota (Photo taken in Toyota shop in Kyoto). The cars in the middle Kia Stinger and CEED (Photo copied from their HP). Those two may/ may not be comparable from the function point of view. Something to talk about: Is Kia cool? Why do you think so? Do all Italian and/or European think so? 2

3 Kawaii Kakkoii Yabai Kawaii = Cute = Carino Kakkoii = Cool = Bello Yabai = Awesome = = Eccezionale?? Pericoloso?? Rischioso?? 3

4 TOYOTA COROLLA Kawaii Kakkoii Yabai 2nd (E20) 1970~ 4th (E-KE70) 1982~ Current Model 10th (E140) 2006~ Acsio 佐藤敏明 (2018) 大企業のインハウスデザイナーから学ぶデザイン思考とその実践方法 - ど DO デザイン のススメ - を基に作成 4

5 Kawaii Kakkoii Yabai 9DFC356B535D54B99B7A4EA3F3&thid=OIP.Mm0hZrms_S3LFcaK6IgvWgHaEc&mediaurl=http% 3a%2f%2fwww.railway-enjoy.net%2fpictures%2fjr%2fshinkansen%2f0%2fimg%2ftopimage.jpg&exph=450&expw=750&q=%e6%96%b0%e5%b9%b9%e7%b7%9a+0%e7%b3%bb&si mid= &selectedindex=0 イエロードクター 925 系 (S1 編成 ) 200 系 2000 番代 (F52 編成 ) 200 系 (E? 編成 ) A8DE52E20&thid=OIP.uFv2JZcRgKboIS5aoAF3ZAHaEW&mediaurl=http%3a%2f%2fwww.asahi.com%2fand_M%2fi nterest%2fgallery%2fretire_train%2fimages%2f jpg&exph=382&expw=650&q=%e6%96%b0%e5%b9%b 9%e7%b7%9a200%e7%b3%bb&simid= &selectedIndex=392 佐藤敏明 (2018) 大企業のインハウスデザイナーから学ぶデザイン思考とその実践方法 - ど DO デザイン のススメ - を基に作成 5

6 Ferrari Kawaii Kakkoii Yabai 466BAE95228EE8AB7B6A3C0F5A&thid=OIP.BG7wxlPi6X2JAkiTW- eciahafj&mediaurl=http%3a%2f%2fwww.v12- gt.com%2fvar%2fv12gt%2fstorage%2fimages%2fpetites-annonces-gratuites-avec-photo- pour-acheter-ou-vendre-votre-voiture-de-luxe-sport-prestige-ou-de-collection%2fferrari- 275-gtb-4-berlinetta-1967%2f fre-FR%2fFERRARI-275-GTB-4-Berlinetta- 1967_zoom.jpg&exph=600&expw=800&q=ferrari275+gtb%2f4+berlinetta+(1967)&simid= &selectedIndex=3 Ferrari275 GTB/4 Berlinetta (1967) Ferrari BB Ferrari FXX K 2015 佐藤敏明 (2018) 大企業のインハウスデザイナーから学ぶデザイン思考とその実践方法 - ど DO デザイン のススメ - を基に作成 6

7 VOL.2-2 INNOVATION AND ECONOMIC GROWTH

8 Trends in innovation theories Industry trend Japanese economy Focus on innovation Trend in innovation research 1960s -70s 1980s -90s Recently Japan surging in the fields of steel/shipping/ home electronics Recovery from post war/ Technology imported from US Firms/products Technology innovation by product elements Firms/products Product innovation/ Process innovation Technology innovation and growing productivity Japanese style management as the strength in automobile/ semiconductor World s no.1 technology-oriented nation/genba-ryoku Vertical integration by Kaizen Firms/imitated products National innovation system to adjust the national and regional environment to cope with technology innovation Intel/Microsoft became champions in IT industry US surpassed Japan by final products such as PC Standard platform /horizontal specialization industry/multiple firms Open innovation to introduce interfirm technology stimulation Social value industry such as photovoltaic in Germany Advanced technologies but not industrialized domestically Government supported market creation Many industries/many firms Innovation ecosystem Sustainable growth of entire social value 8

9 Started from Loom Kiichiro Toyoda was the founder of Toyota Motor Corporation and its group. His father, Sakichi Toyoda, engaged in developing loom, expanded into the automotive business. The patent application for this wooden hand loom was awarded patent No. 1195, "Loom", in The Great Kanto Earthquake of September 1, 1923 Ten years later, on September 1, 1933, the Automotive Production was established within Toyoda Automatic Loom Works, Ltd. After the Koromo Plant was built in 1938, the following measures were implemented; -incorporating quality within processes -controlling through statistical techniques -quality checking on respective production lines. /text/taking_on_the_automotive_business/chap ter2/section7/images/l01_02_07_06_img01.jpg 9

10 First car line-off at Motomachi Plant (1959) Toyota's production capacity doubled overnight, an important first step for the mass production of passenger car. Anew conveyor system linking the three processes of body assembly, painting, and final assembly. Construction of the plant was a big gamble that would either payoff handsomely or ruin us. Toyota suddenly became the top among its domestic competitors. 10

11 The Origins of Just-in-Time Body Assembly Line at Koromo Plant There is no waste and there is no excess. Just make what is needed in time, but don't make too much. Kanban system, having subsequent processes take what they need from the earlier processes. 11

12 Financial Data ( ) Net Revenues Net Income and ROE (Return on Equity) 12

13 Organizational Capability Capability that organizations possess Collective knowledge constitutes a source of organizational capability. Collective knowledge is: Stored in rules, procedures, routines, and shared norms, as either a stockpile of knowledge as a form of data or a flow emerging from interaction. Lam.A CH.5 of Fagerberg, Mowery and Nelson (2005) 13

14 Japanese-style Management Portable shrine management, middle management supports top management Lifetime employment Seniority system Recruitment of new graduates Preset job training Respect for human harmony/integrity Ringi : proposals prepared by staff; approval by management Group responsibility system Authoritarian, as well as democratic Paternalistic management However, this management style does not function as effectively as before Odaka, K (1984)

15 Genba-ryoku Genba means manufacturing site and/or branches where employees are interacting with the customers Genba-ryoku means: Knowledge shared at site, transferred at site Accumulated knowledge through activities and human relationship at site Includes know-how and/or capability which can only be observed by a third party Great Genba-ryoku was observed immediately after the East Japan Earthquake and Fukushima Nuclear Plant accident

16 Myths and reality Myths generated fictions and exaggeration, deviated from the reality Lifetime employment existed in other countries, and is not the only factor of the myths Employment system, not only supported economic growth; so did industrial policies, shareholding structures, etc., but it is a huge social issue Reputation overseas produced excessive Japanese-pride Generated undue admiration for Japanese-style management Japanese traditionally suffered from an inferiority complex, but changed into superior attitude Odaka, K (1984)

17 Alliance between TOYOTA and SOFTBANK Toyota declared in January 2018, that it aims to shift from "a company building a car" to "mobility company. Investment ratio of MONET Technologies, their J/V is Toyota 49.75%, Softbank 50.25%. President Son who has emphasized that the car of the future will be "a lump of semiconductors." 20

18 21 Case study- Softbank Enterprise value as of October, 19, (EURO mil.) 1 Toyota 165,083 2 NTT Docomo 84,738 3 Softbank 80,687 4 NTT 74,940 5 Mitsubishi UFJ 73,031 6 SONY 61,943 7 KDDI 58,080 8 Keyence 52,888 9 Mitsui Sumitomo 47, Japan Postal 47,042

19 Softbank (1981-) Founded in 1981, envisioned to be a global company with an enterprise value of over 1 trillion Yen in 2011 (10 trillion Yen in 2018) Established US branch in 1994 to enter into internet business Acquired COMDEX and Giff Davis (IT publishing company) for a combined over 300 billion Yen Soon after, started Yahoo! Japan whole enterprise value fell to 1/100 due to the crash of the IT bubble Softbank (2010)

20 Softbank (2001-) Started Yahoo! BB in 2001; 1 million people called to reserve the new service Acquired Japan Telecom in 2004 for the 340 billion Yen Suffered from many claims and a huge deficit, accumulating debt in the amount of 300 billion Yen Mobile phone license approved for three new companies (Softbank, emobile, and IP Mobile), in addition to two large carriers (DoCoMo, au),softbank (2010)

21 Softbank (2006-) Acquired Vodafone for 2 trillion Yen in 2006 Largest M&A transaction ever in Japan Many believed that it would not rival DoCoMo, or au Needed overall transformation strategies, to cope with the quality conscious customers of Japan Strengthened 3G network, 3G machines, contents, and sales promotion/branding Survival game for sales activities Sold the phone in installments,softbank (2010)

22 Softbank (2008-) iphone introduced in 2008 Provided no information on product specifications from Apple before the alliance contract New Slogan Phone and internet in one, established Softbank s brand image A smartphone without Osaifu Keitai and 1 SEG (Japanese terrestrial digital broadcasting service for mobile devices) Price decreased (from 60,000 Yen to less than half that) Soon after, started iphone 4 ipad Licensed only for Softbank in 2010 Reservations available only at the Softbank counter (when there was no Apple Shop) 13% increase in sales, 57.3% increase in profit in 2009,Softbank (2010)

23 Softbank (2010-) New 30-year vision in 2010 To share intelligence and knowledge through an IT digital revolution To be happy To see continuous growth for 300 years How Softbank will be in 30 years Importance of human emotion Comfort/Satisfying wants Intelligence/love Computers in 30 years Development of the cloud system Changes in education, medical, and work environments,softbank (2010)

24 Softbank (vision in 2010 ±300 years) The world 300 years before The average span of life was 33 years We co-existed with machines only after the industrial revolution, and later, the information revolution The world 300 years from now Calculation capability of computers will surpass that of humans Capability of machines will exceed human brains, and machines will be intelligent Paradigm shift in human society Human clones, gene therapy, artificial intelligence Importance of partnership strategies Sharing objectives, cooperating, collaborating Gaining deep insight into technology Understanding finances Having leadership Softbank (2010)

25 Softbank from 2014 Jun. 14 Jun. 15 Feb. 16 Apr. 16 Jul-16 Jul-17 Nov. '17 Announced Pepper, the world's first personal robot that reads emotions, jointly developed with ALDEBARAN Robotics SAS. (currently SoftBank Robotics Europe) Pepper, the world's first robot that reads emotions, goes on sale in Japan. Began offering IBM Watson for Japan with IBM Japan, Ltd. Established SB Drive Corp. to commercialize smart mobility services that utilize self-driving technologies. Began joint research project with Honda Motor Co., Ltd. in the area of AI. Established WeWork Japan, a joint venture with USbased WeWork and SoftBank Group Corp. Began joint research with Honda R&D Co., Ltd. on connected car technologies that utilize 5G mobile communication system standards. 28

26 Total sales Financial Data ( ) Speech by Son Masayoshi at the annual shareholders meeting on Jun 21, 2013 I was/am a boaster. Total Asset Net Profit Alibaba IPO on NY Stock Exchange in 2015 Softbank owns 32.4% of shares in Alibaba Its investment of 2 billion Yen in 2000, resulted in 500 billion Yen of capital gain 2 9

27 VOL.2-2 WHAT IS THE RATIONAL FOR THE ALLIANCE

28 Alliance between TOYOTA and SOFTBANK Toyota declared in January 2018, that it aims to shift from "a company building a car" to "mobility company. Young staffs at both companies constantly had discussion for the alliance for half a year. The two companies have a common vision for the future, "to make a traffic accident zero." Investment ratio of MONET Technologies, their J/V is Toyota 49.75%, Softbank 50.25%. President Son who has emphasized that the car of the future will be "a lump of semiconductors." 31

29 A Car of Love or Mere commodity? President of Softbank, Mr. Son says that a car is just one part, rather the platform has greater value, and the car will be "commodity (mere commodity)" President of Toyota, Mr. Toyoda, calls it "a car of love" and sticks to its value. Only car "is attached to" love, being an emotional presence, among a number of industrial products even if any AI (artificial intelligence) is loaded. Two companies, regarded as "water and oil", entered into alliance, based on Mr. Toyoda s risk awareness of changing automobile industry. 32

30 Discussion Do you think that the will be a car of love or a mere commodity? Why? 33

31 Investment and alliances Toyota invested in Uber in 2016, and in January this year, in collaboration with Uber, even in the development of e- pallets of commercial electric vehicles (EV) However, SOFTBANK is the largest shareholder of each affiliated company The reality that Toyota was unlikely to draw its own future map without compromise with Softbank was standing in front of Toyota. In May this year, Softbank invested in General Motors, finally holding about 20% of the shares. For Softbank, Toyota is just one of a number of partners in the service field, keeping the alliance with Honda in AI field. 34