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Wednesday, November 29, 2023

What is the difference between companies that are suited to new business creation methods and companies that are not suited to open innovation?

Open innovation, a method of creating new businesses, is a hot topic for today's companies, which are required to rapidly transform themselves in response to evolving technology and diversifying consumer needs. Compared to existing closed innovation, open innovation is a challenge that transcends the boundaries between companies, and at the same time, it has the potential to create the very value that society needs now or in the future. This sense of speed and creativity is one of the attractions of open innovation. Now that open innovation initiatives have become commonplace, what are the "companies suited to open innovation"? We interviewed Mr. Taichi Kimura of Creww Inc., the No. 1 company in the industry in terms of open innovation programs, and Mr. Takehiro Oda of the Public affairs Strategy Office, Acceleration Division, Four Startups Inc.

interpoint (interword separation)Now! Why Open Innovation?
interpoint (interword separation)What are the "good points" of open innovation?
interpoint (interword separation)What's the difference? Open Innovation with Startups
interpoint (interword separation)Do you have to be a large company to be selected? What are good resources in open innovation?
interpoint (interword separation)Tell me specifically! Is there a co-creation relationship that goes beyond ordering and receiving?
interpoint (interword separation)Mindset matters! Companies that are suited for Open Innovation and those that are not.
interpoint (interword separation)I want to be the right company for the job! How to operate?
interpoint (interword separation)Have you ever wondered what makes a company unsuitable for open innovation? What kind of company is not suited for open innovation?
interpoint (interword separation)This is a company suited for open innovation!

Now! Why Open Innovation?

long vowel mark (usually only used in katakana)Why is the "open innovation" approach so sought after today?

Oda:Yes, I agree. There was a time when open innovation itself became an objective, but recently the concept of open innovation has spread throughout the world, and more and more companies have a sense of purpose, such as "using open innovation for DX.
The most important thing in open innovation is what you do through it.I believe it is very important to work on new business creation, DX and ICT with the concept of open innovation.

What are the "good points" of open innovation?

Oda:The good thing about open innovation is that we may be able to realize things that we could not have come up with on our own by partnering with an outside party. Open innovation also changes the stance of our approach to existing businesses. What would have taken 10 years to develop under our own approach, we can take on the challenge of a new initiative and bring it to market in about 5 years if we take advantage of open innovation.Open innovation is one way to create new businesses.

What's the difference? Open Innovation with Startups

The world is moving at an extremely high speed, and open innovation is an effective way to keep up. In that sense, is it worthwhile to work with startups rather than with large companies?

It is difficult to make a general statement because the stages are different between a general company and a startup,The way startups build their businesses is basically market-in, not product-out. Many of them say, "Let's find a problem in the world and change it by solving it," and "Let's build a business with the value we solve. I believe that we have a different way of development and a different sense of speed from the way Japanese companies have built businesses in the past. In that sense, I think they can be really excellent partners when building businesses and industries together.

A large company could probably build a business like a startup on its own, but it would take time and money to build from scratch.The way to really "create good things quickly and on our own" is to work together with startups that already have good things. If we have resources that the other side does not have, we can share those resources instead of providing them,A good form of developing business together = open innovation.

You have to be a big company to be selected! What are good resources in open innovation?

We have also received the question, "Is collaboration limited to large, medium, and small businesses?" We have also received the question, "Is it possible for large, medium, and small companies to cooperate with each other?

Oda:You mean the size of the non-startup side of the company, right? Of course, from a startup's point of view, if there is no need to partner with a startup, they will not partner with a startup. Reasons for partnering include markets they do not have access to, or POC fields, etc,The key points are "whether we can maximize our growth by partnering together" and "whether we can make an impact on society."I think.

For example, if a company has the technology to make sensors and the technology to analyze AI through sensors, but does not have the technology for devices that incorporate these sensors or for mass production, a small or medium-sized company that has strengths in these areas has ample reason to be chosen as a partner for collaboration.It is very important to be able to include "value that only we can share with others," and surprisingly, I don't think the size of the project is relevant.

I handle projects for large, well-known companies as well as for regional manufacturers,Small and medium-sized companies also have resources that are as good as those of large companies, such as manufacturing facilities and technical know-how that are unique to the local area.The "new" market is a place where the technology and business models of startups are being combined. In contrast, we are seeing efforts by startups to combine their technologies and business models.

Tell me specifically! Is there a co-creation relationship that goes beyond ordering and receiving?

Oda:Yes. This is a case study of a small to medium-sized manufacturing company in Aichi Prefecture. The company has about 30 employees who make prototypes, and they wanted to collaborate with a startup through a prefectural program. At first we were concerned about the size of the company, but the startup was interested.For a startup, the industry and network of collaborators is bigger than the size of the company.
On the other hand, for manufacturing companies, there was a problem: "It is difficult to preserve the advanced skills of craftspeople as company assets. In order to solve this problem, three companies, together with a startup that handles VR glasses and VR software, created a VR system for passing on skills, which was later expanded horizontally as a service to companies with similar problems.

Don't assume that you are taking orders, but rather "have them look at your value once from a different angle. Even if commercialization is difficult, if you take the stance of conducting small tests, you should be able to find a company that is a good match for your business and approach you with an offer to collaborate.It is important to have a mindset of creating together.

Mindset matters! Companies that are suited for Open Innovation and those that are not.

What kind of organization do you consider to be a "company suited for open innovation"?

Oda:I believe that the company has a firm guideline and direction as a company.It is fine if the mindset is just not in place, but we cannot have open innovation with companies that are not willing to change. However, we cannot have open innovation with companies that are not willing to change, because it would be a waste of time for both parties to spend time without a clear way out.

On the other hand, for those who do not have a system in place but have the "desire" to try open innovation, we may provide advice on how to present it to upper management, or, if you are in a higher position, how to organize a team under you. If you are in a more senior position, we may also introduce you to how to form a team below you. Even if a company is not suited for open innovation at the moment, there may be a time when it is.I believe it is important to create an organizational climate that facilitates open innovation.

-It seems to me that the company's enthusiasm, organizational structure, and the scope of what kind of world it wants to realize are the elements of a company that is suited to open innovation.

I want to be the right company for the job! How to operate?

-We have also received questions such as, "How should we actually involve our employees in the process? What are your thoughts on "building a team" to increase the enthusiasm of the organization?

Oda:It is not easy to get things done even if all you have is enthusiasm. However, since enthusiasm should propagate, I think it is important for those who have enthusiasm to first involve others who seem to share it, build a team, and obtain the company's approval.

I also think it is important for a company to have a level of "tolerance" that allows for mistakes, even if they appear at first glance to be failures.Getting it done = success.Since it is impossible to know if it is really a good idea until the project is completed, I think one way is for management to show a deep sense of nostalgia by saying, "We will not talk about it until we let them complete the project.

-Some companies have progressed to the POC, but have stumbled at the stage where they need internal resources due to a lack of empathy and understanding across departments.

Gaining understanding within the companyIn order for the demonstration experiment to proceed smoothly, we encourage you to communicate the details and significance of your efforts in the pre-selection process to the company as needed.Some companies also solicit applicants to turn in programs from all employees.

Oda:Yes, that's right. It seems that those who are planning new business projects are also seen as "doing something" by the existing business divisions. However, in the end, it should be related to our own business, and there must be people who think, "Oh, that's nice," among those who think, "They are doing something.It may be important to raise internal momentum by putting information out in the open, looking beyond the POc to capital alliances, etc., rather than just asking for the lending of resources for the sole purpose of conducting the POC.

Have you ever wondered what makes a company unsuitable for open innovation? What kind of company is not suited for open innovation?

Kimura:We sometimes feel that it is a waste when companies that set KPIs for short-term profit generation and end their Open Innovation Programs without achieving results, while they remain vague in setting goals for what kind of society they want to realize in the future.

Oda:I'll tell you one thing., ,I thought, "Ultimately, success or failure is tied to the person."No matter how motivated the top management is, if the atmosphere is too different from the people on the ground who actually implement open innovation, it will not work.I think that is a good thing. If the people in the field do not understand why the work is being done in the first place, they will feel "forced" to do it, and they will not make decisions on their own.

This is a company suited for open innovation!

Oda:If it is a program,I think it is important for the top management and the secretariat to see eye to eye.If we can get that right, we will follow up with them to make sure they can achieve some results. As long as that is done well, we will follow up to achieve a certain level of results, so I think "eye contact" is very important in order to make the company suitable.

Thank you very much. I am sure this was a valuable talk for everyone who watched it.
Thank you very much for your time today, Mr. Oda!

Guest Speaker
Mr. Takehiro Oda Public affairs Strategy Office, Acceleration Division, Four Startups, Inc.
As a sales and producer for a web production company, a film company, and an advertising agency, he was in charge of content planning and production and advertising promotion in Japan and Shanghai. 2016, after joining creww K.K., he joined the Accelerator Program as a director, where he was involved in new business creation and matching between startups and major companies. From FY2019, as a project commissioned by Aichi Prefecture, he has been involved in the creation of numerous open innovation businesses through "Aichi Matching," a business matching program for open innovation between companies and startups in Aichi Prefecture. In FY2020, as the general manager of Station Ai Early Support Center, he will support startups in Aichi Prefecture and promote open innovation of companies in Aichi Prefecture through incubation programs, business plan contests, and community building. Joined For Startups in April 2021. In April 2021, he joined ForStartups, where he works with government, municipalities, and business companies on startup support, entrepreneurship support, and open innovation promotion.
Mr. Taichi Kimura CS Team Manager, Open Innovation Dept.
After working for a trading company and a general consulting firm, he joined Creww in 2020 because he shared Creww's vision of supporting challengers. He teaches them the mindset for dealing with startups and the key points for creating new businesses, and contributes to improving the success rate of co-creation programs.
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ai taniuchi
She has been working as a freelance writer at PORT by Creww since 2020.
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