Addressing challenges in the new era

LOOKING
AHEAD TO
NEW ERA

The new era.

Development of digital technologies and prevalence of smartphones (digital consumer “merchandise*”) brought about by “ICT*” platformer called “GAFA*”after “iiPod*” emerged into the market. Letting alone those various social phenomena, we have been kept said that needs of the time have been shifting from “Things” to “Matters”.

The same goes for the automobile industry in recent years. the concept of automobiles itself is about to change thanks to the technology innovation called “CASE*”. The automobile industry is running into the era that the response to the shift form “Things” to “Matters” is demanded rapidly.

ACTION01

Required for "Matters"
「UX (User Experience)
「CX (Customer Experience)

uxcx

The time has been shifting from "Things" to "Matters".

The worth "Living people*" seek for has been shifting from "value of things" to find the worth in the "product*" itself which is the "thing" to "utility*" of the "merchandise", and “worth of matters” to find the worth in the experience that can be obtained by purchasing the service.

That means the core of value creation has been shifting from the concept of product-oriented to living people-oriented, and the creation of “Matters production” that is called "UX (user experience)*" or "CX (customer experience)*" has been requiring.

ACTION02

“Things manufacturing" to "Matters production"

Values have been shifting from “Things manufacturing" to "Matters production".

The value shift means that manufacturing industries need “paradigm shift*Manufacturers = "Things manufacturing" was a typical "business model*" representing the 20th century. Its core was products. It was an era we were able to make out as far as manufacturing better products, as earlier as possible and as cheaper as possible. ”.

After the 21st century came, now the time digital service plays a main role has come along and the “Matters” that can be worth for living people has been the core using the technologies such as AI and IoT, which means the time manufacturers are required not only to do “Things manufacturing” but also to do “Matters production” has come.

ACTION03

“Things manufacturing to produce matters” beyond there furthermore.

Manufacturers to work on “Matters production” shifted from “Things manufacturing”.
“Things manufacturing to produce matter” beyond there furthermore.

From "things" to "matters" ...
From "things values" to "matters values" ...
From "Things manufacturing" to "Matters production" ...

Product-out (= Things manufacturing) beyond there furthermore is not what manufacturers are required to pursue from now on but “Things manufacturing to produce matters” to create merchandises by customer-in based on CX / US (= Matters production) is the one. To let “Things manufacturing” and “Matters production” compatible, that is “Things manufacturing to produce matters”.In the era of “Things manufacturing to produce matters”, what is required is not customer support but management of “customer success*” how to maintain customers and living people as well.

CUSTOMERSUCCESS

Practice of customer success

EMS+

+STEP01 Connecting the dots.
+STEP02 Start with why
+STEP03 Make a story

Things manufacturing to produce matters

Concept

3+

STEP01 Design & development
STEP02 Prototype verification
STEP03 Material & parts procurement
STEP04 Products inspection
STEP05 Shipment & transportation

Things manufacturing

Process

Shift from "Things manufacturing" to "Things manufacturing to produce matters".
One of the attempts for challenges of the new era is EMS for "Things manufacturing to produce matters”, that is EMS+ to add 3 steps for realizing “Matters production” from the conventional EMS for "Things manufacturing". It creates merchandises by customer-in based on UX / CX realizing from the ideas of consumers, and responds to speedy products developments as well incorporating agile development.

Realize smart factory adopting 3+ in the viewpoint of “Things manufacturing”.Raise the power level of "Things manufacturing" to be modernized.3+ and EMS+.
Realize the shift to “Things manufacturing to produce matters” and provide customer success.

Annotation

iPod
A portable digital music player developed and sold by Apple, which triggered "
Digital Disruption*
". Not only a music player alone, but also a gadget to provide cloud services such as Apple Music Store, iTunes and applications simultaneously. It could be a catalyst to shift from things to things to produce matters and generate the word of UX. It is also the origin of iPhone.Return to the text ↑
GAFA
General name of IT platformers indicated taking the initials from Google, Apple, Facebook, and Amazon.Return to the text ↑
ICT
Abbreviation for Information and Communication Technology. It emphasizes on communication brought about by communication technology rather than IT. Although IT is often used in Japan, ICT is much more used worldwide.Return to the text ↑
Merchandise
It represents any objects to be commercialized. It remarks “Things and matters” when it is used versus product.Return to the text ↑
CASE
A coined word indicated taking the initials from Autonomous (Automated driving), Share & Service (Car sharing & services), and Electric (Electric vehicle). It means "things to produce matters” in the process shifted from "things" to "things & matters".Return to the text ↑
Living people
Consumers that refers to persons who consumes goods including merchandises and services, are persons who can be the object of “Probusiness product-out subject to things first”. “Persons” that is used in “What people want to realize or experience” in terms of UX and CX is expressed as “Living people” versus consumers.Return to the text ↑
Product
Thing to be processed purchased materials and put out. It remarks “Things” in manufacturers when it is used versus merchandise.Return to the text ↑
Utility
Utility used in the presentation here does not mean "usability or application" in general but the basic concept of economics. When many functions are available, "What can be done" of "What can be done for living people?" is the utility.Return to the text ↑
UX (User Experience)
Abbreviation for (User Experience), which remarks "Experiences that users can obtain through using merchandises (or products or services)". It can be regarded same as "Things and matters".Return to the text ↑
CX (Customer Experience)
Abbreviation for (Customer Experience), which remarks "Experiences that customers can obtain through using merchandises (or products or services)". It can be regarded same as "Things and matters".Return to the text ↑
Paradigm shift
Way of thinking and concept of values until today to be done one-eighty.Return to the text ↑
Business model
Peter Drucker explains that business model can be the answer to questions, "Who is the customers? What is worth to them? How to offer the worth at reasonable price?".
1. Customer axis: Who are your customers?
2. Offer axis: What worth can your company offer to your customers?
3. Offering measures axis: How do you offer your company's merchandises (products and services) to your customers?
4. Revenue model axis: Why can you get profit?
He defines that the concept of business is specified with those 4 axes. Once, we often used coined words such as “Matters production” intentionally because ideas of securing profits came up in front too much and that did not give a good impression. However, recently the business model has been discussed based on the premise of idea that the basis of the all business models are centered to customers.Return to the text ↑
Customer success
Although the term of customer satisfaction was used some time in the past, it didn't prevail to mean the actual meaning but became a mere facade without the practical implementation. Now the concept of UX, CX and customer-oriented has been paid attention again, it remarks not only to satisfy customers’ needs passively but also to work on to customers actively so as to aim at the compatibility between customers’ successes and own profits.Return to the text ↑
Digital disruption
It remarks creative destruction that existing products and services are lost or destroyed by digital technologies and business models to use them. A typical example is that Walkman culture was shattered by the emergence of iPod. It is brought about by "
DX (Digital Transformation)*
".
DX (Digital Transformation)
It remarks innovation of people's lives by the penetration of the ever-developing digital technologies into the livings. It brings about not only the simple innovation but also the digital disruption to creatively destroy existing products and services.