Now that digitalization is advancing rapidly, we are in an era where traditional business models do not work. The important point is how to keep up with the rapidly changing times.
The end of Japanese companies
Entering the full-scale digital era, new services and companies utilizing IT are being born one after another. Typical players are IT companies such as Apple, Google, and Uber, which are also called digital disruptors because they bring new business models to existing industries and have a devastating impact.
The influence of digitalization has already reached Japanese companies, and the home appliance industry, which was said to be the "kingdom," has fallen into a state of destruction. The strongest automobile industry has also been challenged by IT companies, and it is becoming less of a rock in the future. The future of large existing companies is bleak unless they digitize and transform their businesses. Explain the problems of Japanese companies that cannot cope with digitalization.
With the progress of digital technology, the choices of business strategies in companies have increased dramatically. On the other hand, misreading the timing of digitization and how to deal with it will come at a great price.
For new products and services that utilize digital technology, the possibilities must always be considered. Regarding the development of new services, it is difficult to decide when and how to shift from existing businesses. Companies that have a high market share in existing business areas and have succeeded will hesitate to disrupt the current business. As a result, the start of new things is delayed.
If the response is delayed, the existing business that was performing well will be hit hard by an external disruptor (destroyer). This is what the Japanese manufacturing industry, especially high-tech manufacturers, has experienced. Focusing on those who hone their strengths so far, they will delay responding to new technologies. It can be said that it is in a state of "innovation dilemma".
Even in an industry that had nothing to do with digitalization, there are cases where the appearance of disruptors will hit you at once. US IT companies Amazon.com, Uber Technologies, and Airbnb are representative of such disruptors.
When these companies first appeared, it was thought that there would not be much room for the development of new businesses through digitalization because of the existence of regulations and business practices. However, its growth far exceeded most expectations. Disruptors are promoting their businesses without owning assets such as equipment and cars owned by existing companies. The technology I'm using isn't really difficult either.
What they have in common is the idea of a new business model that pierces the gaps of existing industries. On top of that, what is amazing is the speed of business promotion. Originally it started its business in the United States, but it is also making a big impact on the existing industry by aggressively attacking other countries with different business customs.