The journey of digital transformation and operational efficiency in Japan’s manufacturing sector is being reshaped by technology. Let’s explore remarkable success stories supported by compelling statistics and uncover valuable lessons for leaders navigating this transformative path!
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Success stories: Technology driving digital transformation and efficiency in Japan’s manufacturing
Let’s dive deep into how Japanese manufacturing enterprises have leveraged the power of technology to drive their digital transformation journey, enhancing company efficiency.
Komatsu
Situation & Solution:
Komatsu, a Japanese multinational, manufactures equipment for construction, mining, forestry, and military sectors. Japan’s demographic decline and the projected shortage of 1.2 million construction workers by 2030. The company needed to enhance productivity and address labor shortages, especially within its aging workforce. Additionally, Komatsu faced the challenge of reducing carbon emissions and incorporating sustainability in construction and mining, where electrification and automation presented technical difficulties.
To overcome these challenges, Komatsu focused on automation and electrification. They introduced the Smart Construction program, integrating digital technologies to improve productivity and reduce manual labor. By partnering with companies like NTT Communications, Sony, and Nomura Research Institute, Komatsu launched EARTHBRAIN to optimize construction site management. The company also committed to carbon neutrality by 2050 through investments in electrification, automation, and hybrid technologies.
Results:
As a result, over 40% of Komatsu’s total sales now come from after-sales services, reflecting the growing value in services beyond vehicle sales. This strategy has positioned the company to meet increasing demand, particularly in Africa and Asia, where construction vehicle needs are rising.
Nissan
Situation & Solution:
Nissan Motor Corporation, a Japanese automaker, faced challenges after the COVID-19 pandemic, including labor shortages and the need for sustainable manufacturing. The industry’s shift to advanced, eco-friendly production methods required significant technological upgrades.
In response, Nissan launched its ‘Intelligent Factory’ at the Tochigi plant, using AI, IoT, and robotics to automate production, focusing on next-generation vehicles like electric models. The initiative aims for carbon neutrality by 2050, with full electrification of manufacturing by 2030, powered by renewable energy.
Results:
The intelligent factory is set to enhance Nissan’s manufacturing efficiency and flexibility, supporting its long-term sustainability goals. The initiative improves production quality and reduces recovery time by 30%, positioning Nissan as a leader in the competitive EV market and aligning with global trends in automotive manufacturing.
Lessons for digital transformation leaders in Japan’s manufacturing sector
Building on the success case above, here are key takeaways and advice for leaders to guide their businesses in Japan.
Transforming culture in leadership
In digital transformation (DX), leadership and organizational culture play a crucial role. Traditional management styles, which prioritize stability and risk avoidance, must evolve to embrace agility and collaboration. Fujitsu recommends that leaders adopt a coaching role, guiding teams through transformation by listening first and fostering open, collaborative discussions.
Duke Corporate Education advises that effective leadership in DX requires a shift from vertical to horizontal management. A horizontal management approach is toward a more collaborative and flexible style, better suited for the digital age. This transition focuses on dismantling silos and empowering cross-functional teams to work together toward shared goals. Leaders in this model act as guides and coaches, facilitating communication and collaboration across the organization.
Overcoming internal challenges
According to McKinsey, many Japanese companies continue to rely heavily on external IT vendors, which often limits their ability to drive meaningful digital transformation within their organizations. This dependence can slow down decision-making and hinder innovation, as it creates barriers to internal expertise and agility. Leaders should increasingly recognize the importance of empowering their workforce through reskilling initiatives. By investing in developing digital capabilities, companies are equipping their employees with the tools they need to lead change from within.
Technology is an overall business growth driver
Think broadly when applying new technology. It’s important to go beyond the mindset that tech will only solve a single problem, and instead recognize that it drives growth as a whole. A new study by Chief Executive Group and Amazon Web Services points out: “Digital transformation isn’t just about implementing new technology; it is also about using technology to drive growth.” Once this mindset is established, the application of technology should align with the overall goals of the business, requiring a clear and detailed understanding of these goals to make the most informed decisions.
akaBot – Your trusted digital transformation partner
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Conclusion
Digital transformation is critical for Japanese businesses to stay competitive, requiring a shift in mindset, culture, and leadership. It involves adopting new technologies, reskilling employees, and building interdisciplinary teams. Embracing these changes helps improve efficiency, reduce costs, and position companies for success in the digital age.
Contact us now to be the lead in this journey!
akaBot (FPT) is the operation optimization solution for enterprises based on the RPA (Robotic Process Automation) platform combined with Artificial Intelligence, Process Mining, OCR, Intelligent Document Processing, Machine Learning, Conversational AI, etc. Serving clients in 21+ countries, across 08 domains such as Banking & Finances, Retail, IT Services, Manufacturing, and Logistics…, akaBot is featured in “Voice of the Customer” for Robotics Process Automation” by Gartner Peer Insights, G2, and ranked as Top 6 Global RPA Platform by Software Reviews. akaBot also won the prestigious Stevie Award, The Asian Banker Award 2021, Everest Group’s RPA Products PEAK Matrix® 2023, etc.
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