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Wednesday, December 6, 2023

What is the role of startups in achieving digital transformation of the manufacturing industry?

Digital transformation in Japan is lagging behind, and its promotion is urgently needed.
Especially in the field of manufacturing, where new products and services are being created through technological advancements, it is imperative to incorporate digital technology. One way to achieve digital transformation in the manufacturing industry is to consider collaborating with startups that can create new value.
This article discusses what role startups can play in realizing the digital transformation of the manufacturing industry. We will also present examples of collaboration with startups.

What is Digital Transformation?

To begin with, what is digital transformation? Let us briefly review it here.

Reinventing business models through the use of digital technology

Digital transformation refers to the transformation of business and society through digital technology.Digital transformation is a measure to reduce costs by developing new businesses, and to reform the way we work and society itself.

Digital transformation is changing people's lives for the better,Innovative innovations that fundamentally overturn existing values and frameworksThis brings us to the following.

Current Status of Digital Transformation

What is the digital transformation of Japanese companies?Currently lagging far behind foreign countriesIt is reported that 80% of IT investment by Japanese companies is directed toward the maintenance of existing systems. It is reported that 80% of IT investments by Japanese companies are directed toward the maintenance of existing systems, and they are reluctant to develop new systems.

While recognizing the importance of introducing digital technologyLack of a clear vision and insufficient human resources to promote it in the fieldThe company is Among other things.Many companies in the manufacturing industry are not adapting to the changing environment and are facing many challengesThis is the reality.

The Ministry of Economy, Trade, and Industry (METI) has been working on a 2018Guidelines for Promoting Digital Transformation."summarizes the need for digital transformation.

The guidelines point out that a game change is taking place, with new entrants in all industries deploying business models using new digital technologies.Companies face the challenge of fast-tracking digital transformation to maintain or enhance competitivenessThe company states that it is.

Renewal by 2025 is the challenge.

METI further emphasized the need for government support to achieve a cross-industry digital transformation mechanism.

Further,Failure to renew the system in 2025 will result in high system maintenance costs and technical debtHe warns that there are many risks, including So-called.The Cliffs of 2025."This is what is said to be the case.

Startups driving digital transformation

How to break out of the current situation where we are lagging behind in digitalization but cannot change the old system,Need to actively incorporate reforms from outsideThere are

Creating new valueCollaboration with startups is an opportunity to accelerate digital transformationwill be.

Case studies of startups engaged in digital transformation

There are many startups working on the digital transformation of companies, and many have been successfully digitized. Let's take a look at some examples of their efforts.

Collaboration with Manufacturing

Manufacturing companies can work with startups to streamline operations and create new value from their own technologyIt is.

There are many startups working on the digital transformation of the manufacturing industry, and there are many examples of successful digitalization through collaboration.

Manufacturing with Challenges

In recent years, IoT (Internet of Things) and AI (Artificial Intelligence)Technology is evolving and the competitive environment for manufacturing is changingThe company is doing so.

It is imperative to introduce digital technology to improve productivity, but the reality is that it is not spreading as fast as expected.

Old systems are entrenched at manufacturing sites and cannot cope with rapid changeThis is one of the main reasons. Small and medium-sized companies, in particular, are reluctant to introduce costly new systems.

Examples of startups working with the manufacturing industry


TRINUSis a startup that digitally transforms manufacturing and product development.
Publish resources on the company's website, including technologies, materials, intellectual property, and other resources that lie dormant in the company.The new design studio will collect unconventional designs from more than 4,000 creators registered around the world, and will be the first of its kind in the world to do so.Analog product development processes can be digitally driven.The following is a list of the most important factors that will help you to make the most of your time in the future.

In the case of the collaboration with a company that has technology in which waste paper is the main raw material, the project was solicited and ideas were collected,Flower Colored PencilsThe product is a unique product with the colors and shapes of typical Japanese flowers such as cherry blossoms, Chinese bellflowers, and dandelions. It is a unique product that has the color and shape of flowers such as cherry blossoms, bellflowers, and dandelions, which are representative of Japan, and when sharpened, they become petals of flowers. It is now a hit product sold all over the world.


Caddy is a startup that promotes DX in the manufacturing industry from the field of parts procurement, where innovation has been slow to take off.Developed Japan's first order-receipt service that uses technology to connect custom-fabricated goods clients with processing plants across the country.The system is capable of analyzing drawing data held by manufacturers and providing instantaneous quotations.

Many companies have successfully partnered with us to achieve digital transformation. Higashiyama Inc. has improved profits by more than 9 million yen per year through system reform. MA Corporation has achieved an ideal portfolio by diversifying its transactions across multiple industries.

Collaborate with startups to drive digital transformation!

METI warns.The Cliffs of 2025."With time limited, digital transformation is urgently needed to keep pace with the rapidly changing society. The time is limited to the end of the 21st century, and the need for digital transformation is urgent,Successful digital transformation while also exploring partnerships with startupsLet's let them do it.

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