BreakThrough Study Idea

"Approach" that decides the outcome of surviving companies.Yoshio Tanaka<Series 1 / complete>

Study Idea

2017.09.07

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What is Open Innovation 2.0?

Entering into the 21st century, the market environment and the principle of competition have changed drastically. With the conventional business model, products and services alone, you will realize that it is becoming difficult to survive in the coming era. This phenomenon is not only faced by the Japanese enterprises, but it may be said that the situation is similar at the global level.

Therefore,the enterprises are trying to find a way to the next generation by solving problems with a form that crosses the field in a sense which is very different from corporate activities so far. However, there are many cases where such a method can not be realized merely by the technology and knowledge established in-house.

"Open innovation" is advocated to solve that fact.
This "open innovation" proposed by Professor Henry Chesbrough, who was at Harvard Business School in the beginning of 2000, is to develop and operate a business while complementing each other with insufficient knowledge and technology. In doing so, it was proposed for the purpose of newly creating and realizing customer value. Such efforts have actually begun.

After that, we have spread it more to the society and evolved toward solving big problems by using the network. We call that initiative "Open Innovation 2.0". Here, it is characterized by the involvement of wider stakeholders such as the community, individuals, enterprises and administrative offices, and developing to create big swells.

What is the "Approach" that decides the outcome of surviving companies.

Despite the situation where open innovation is required, there are many Japanese enterprises who are not good at practicing it.

In Japan, as a result of focusing on production technology and promoting "monozukuri", the whole nation has grown.

With such "monozukuri," we have evolved to the level that would threaten the United States. Trade friction over textiles, steel, automobiles and semiconductors, television and video since the 1970s is symbolic.

By having been suffering from the following countries including Japan, the United States first experienced the limit of competing in the world with "monozukuri" only. Then, we found a survival way to IT (information technology) such as computer systems and software that build up the social system and its mechanism and means for doing it.

Just like in the United States, Japan falls into a situation where it can not surpass the world simply with "monozukuri" (though price competition is a major factor), we are chased by that response. However, the fact that there are many enterprises that seems not to have compromised the attitude of "monozukuri", even though it differs greatly from the United States. Though we have to create a system that combines mono (product) and koto (service), it is being left behind due to the lack of idea.

Taking IT as an example, the Japanese enterprises seem to be not thinking about how to utilize IT only in the part of labor saving and efficiency improvement. Such a approach caused Japan to be left by the other countries in the IT field. Foreign enterprises view IT as a fighting tool and efficiency tool. When saying IT that only improves productivity, it still changes the way in which product development and management strategies are caught. That way of thinking seems to have not changed much even after 20 years. Looking at other trends in IT investment, you can see how to think about IT in Japan. In the United States, the IT field is growing constantly, but in Japan it fluctuates greatly due to economic trends. The tendency for IT investment to decrease notably in recession represents Japan's idea that views IT as an efficiency tool only.

Instead of grasping IT as mere digital utilization, the social infrastructure and information industry have developed more deeply in the United States while it has been resulted in a very different in Japan.

It is said that more than half of global innovation is occurring in the IT field, and innovations in other fields are all taking advantage of IT. You cannot say that current innovation is not involved with IT; Today’s innovation is being involved with IT very much.

Therefore, we would like Japanese small and medium enterprises to utilize IT more and more as long as the ideas exist.

In a lecture at the New Value Creation Exhibition of the year before last, we were asked by a personnel from the tire valve maker saying "My young employee told me that taking all the tire data at IoT will lead to their business, what should I do?” In such a case, we think that if you have an idea, let the employee do it immediately.

With open innovation, the first thing you need is getting ideas on the table important. For example, if you develop the example of a valve maker and think about it, you can think of it as a set with valves and data, assembling with a tire maker, using data such as failure rate, and assembling together with a repair shop. We think that there are plenty of ideas there.

When such an idea is born, it should be connected to then at the new value creation exhibition as a place to be utilized.

<Series 1 / complete>


Yoshio Tanaka

Tokyo University of Science graduate school of innovation professor
Aoyama Gakuin University Graduate School Business Lawyer Visiting Professor
Participated in the National Institute of Advanced Industrial Science and Technology

Graduated from the Department of Electrical Engineering, Faculty of Engineering, Tokyo University of Science in 1973. In the same year, he joined Sumitomo Heavy Industries, Ltd. and engaged in system development such as online system design. In 1980, he joined IBM research and development manufacturing department. Assistant to the development, management and vice president of products, services and software for the world. In 1998, IBM Corporation R&D Aisi Pacific Technical Operation in charge. In 2001, he was a director in the R & D department planning and business development. In 2005, he became Microsoft CTO. In 2007, he joined the National Institute of Advanced Industrial Science and Technology, a professor at Aoyama Gakuin University graduate business lawyer. In 2009, Professor of Tokyo University of Science graduate school. Currently, he is a senior visiting researcher at International University GLOCOM, a member of the Japan Engineering Academy.

◇Main book:Verification of MOT History (joint work)" (Maruzen) 2008

Yoshio Tanaka (2017) / "Create an ecosystem by utilizing IT rather than monozukuri"
"Nikkei Business ONLINE", January 5, 2017

Series

Series 2 It happens when we abandon the idea of "subcontracting" that is nine dramatic changes.

Series 3 "Team-nature" to elucidate from companies that have created new value.

Series 4 The key to creating new value is "open discussion".

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