Abstract
Due to recent technology progress in areas such as IoT, AI, big data and robotics, Japanese industry is heading towards the Fourth Industrial Revolution. The industrial system is shifting from manufacturing worksite superiority to intelligence or software superiority in manufacturing. The government promotes these trends through its Society 5.0 initiative. Software superiority in manufacturing facilitates front loading; the conversion of skills to explicit knowledge makes progress in manufacturing processes through the use of IT and craftsmanship. This research deals with three cases. The first case is a company-developed system that’s scalable from customized products to standard products and that realizes diversified products via microscale production. The second case, focusing on the introduction of robots and a robot system integrator (SIer), is the keystone company within the SIer community; its business consists of robot engineering projects and FA educational system projects. The third case, metal 3D printing manufacturing, is invigorating. The company is the first service bureau in Japan that is capable of providing comprehensive services in the field of metal additive manufacturing (AM), handling everything from powder development and manufacture to prototyping and mass production needs. Clearly, IoT and the servitization of industry are the two wheels of a cart in industry, significantly transforming not only manufacturing sites but also business models. Although each case represents a different field of industry, each meets a unique and remarkable challenge in standardization, platform and ecosystem. In the digital age, IoT is an enabler and provides a background for transformation of business models. Through servitization, businesses can be the field for co-creation by feeding back the experience of learning-by-doing and reorganizing it. It is a powerful option for company to meet the challenge of service platform building.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
References
Baines, T. S., Lightfoot, H. W., Benedettini, O., & Kay, J. M. (2009). The servitization of manufacturing: A review of literature and reflection on future challenges. Journal of manufacturing technology management, 20(5), 547–567.
Chesbrough, H. W. (2011). Open services innovation: Rethinking your business to grow and compete in a new era. San Francisco: Jossey-Bass.
Hashiguchi, N., Kodama, K., & Mitsufuji, T. (2017). Innovation on 3D printer in mass production process, Japan Society for Research Policy and Innovation Management, Annual Academic Conference 32 summary, 82–85 (in Japanese).
Iansiti, M., & Levin, R. (2004, March 1–11). Strategy as ecology. Harvard Business Review
Onishi, K. (2015). Trend of the Less wiring and Wireless Technology in the Robot System. Journal of the Robotics Society of Japan, 33(5), 334–337. (in Japanese).
Piore, M., & Sabel, C. (1984). The second industrial divide: Possibilities for prosperity. New York: Basic Books.
Salais, R., & Storper, M. (1992). The four ‘world’ of contemporary industry. Cambridge Journal of Economics, 16, 169–193.
Segawa, Y. (2015). An introduction to industrial trends robot system integration in overseas. Journal of the Robotics Society of Japan, 33(5), 306–309. (in Japanese).
Tatsumoto, H., Ogawa, K., & Shintaku, J. (2010). The essence of platform business through open innovation: Intuitional condition, strategic mechanism and the impact of the international division of labor. Japan Society for Research Policy and Innovation Management, 25(1), 78–91. (in Japanese).
Tatsumoto, H., Ogawa, K., & Shintaku, J. (2011). Strategic standardization: Platform business and the effect on international division of labor. Annals of Business Administrative Science, 10, 13–26.
Teece, D. (2007). Explicating dynamic capabilities: The nature and microfoundations of (sustainable) enterprise performance. Strategic Management Journal, 28, 1319–1350.
Rayna, T., & Striukova, L. (2016). From rapid prototyping to home fabrication: How 3D printing is changing business model innovation. Technological Forecasting & Social Change, 102, 214–224.
Tomita, K. (2017). Activities for new industrial production system of Yasukawa. Journal of the Robotics Society of Japan, 35(2), 14–117 (in Japanese).
Watanabe, W. (2018, July) The role of robot system integrator. Robot, 243, 14–18 (in Japanese).
Vargo, S. L., & Lusch, R. F. (2004). Evolving to a new dominant logic for marketing. Journal of Marketing, 68(1), 1–17.
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2020 Springer Nature Singapore Pte Ltd.
About this chapter
Cite this chapter
Odake, N. (2020). Innovation of Small- and Medium-Sized Manufacturers in the Digital Age. In: Khare, A., Ishikura, H., Baber, W. (eds) Transforming Japanese Business. Future of Business and Finance. Springer, Singapore. https://doi.org/10.1007/978-981-15-0327-6_10
Download citation
DOI: https://doi.org/10.1007/978-981-15-0327-6_10
Published:
Publisher Name: Springer, Singapore
Print ISBN: 978-981-15-0326-9
Online ISBN: 978-981-15-0327-6
eBook Packages: Business and ManagementBusiness and Management (R0)