Tomoatsu Shibata

Strategy transformation through strategic innovation capability – a case study of Fanuc

This paper presents a theoretical framework under which large companies should be able to bring about strategy transformation. First, we present the concept of ‘strategic innovation capability’, a corporate system capability to achieve corporate strategy transformation by strategic innovation. Then, we consider strategic innovation capability by comparing it with previous theories (dynamic capability, major innovation, dynamic capability, breakthrough innovation capability). Second, we present the case example of strategy transformation at Fanuc, a company that holds the top global share in the numerical control (NC) market. In this case study research, we consider and analyze historically how the company aimed for new creativity in the NC market, developed innovative NC technology for the machine tool market, and used that technology energetically for commercialized products. From the strategic innovation capability framework, the core theory of this paper, we also analyze and consider how top management made conscious efforts to form a new development organization within the company, and the processes involved in achieving strategy transformation to establish competitive superiority in this field. Finally, we discuss the implications drawn from this case analysis, and the issues for future research.

Research into ambidextrous R&D in product development – new product development at a precision device maker: a case study

Through research into new product development processes at a precision device maker, this paper discusses the skilful management of knowledge boundaries that lie between various organisations, and between specialised human skills and functions that make up a project organisation, and presents the ways in which new organisational capabilities are brought about for the development of new products as exploratory activities that dynamically merge and integrated the various knowledge within a company. This paper describes some of the implications derived from analysis and observations of the new organisational forms of the companys ambidextrous R&D management which the company uses to engage in both ‘uncertainty management (exploration)’ and ‘existing product management (exploitation)’, through the partnering of its existing formal organisations and dynamic structuring of diverse multifunctional teams formed as projects spanning different specialisations and capabilities.

Unveiling the successful process of technological transition: a case study of Matsushita Electric

Changing technological strategies requires serious management decisions because it essentially means withdrawing from an existing technology, in which the company has been successful, and shifting management resources to a new technology with a high degree of uncertainty. Most of existing research has focused on examples of failure, to shed light on the causes of failure. However, we will analyze in detail an example of a successful transition to a new technology. The subject of our analysis is the transition in technological strategies made by Matsushita Electric Group (MEG), a large corporate group representative of Japanese companies, at the time of its commercialization of plasma TVs. The purpose of this paper is to analyze in detail this transition process and to discover findings and insights for successful transition process from accumulated technology to new technology. Our analysis yields key conceptual contributions about technological transition from old to new technology as follows. Old and new technology can differ in their knowledge base. According to existing literature, when the knowledge base is radically different, incumbent firms have a difficulty adapting to the technological change. On the other hand, when the knowledge base is very similar, incumbent firms have no trouble adapting to the change. Beyond these established existing understandings, this paper argues that when the knowledge base is moderately different, managers can increase the likelihood of successful transition by implementing a set of organizational strategies. Among these strategies, a particularly insightful one is that through the parallel development process of both existing and new technologies, managers can eventually integrate the advantages of both technologies by implementing a flexible resource allocation mechanism to overcome the dichotomy between old and new.

Managing parallel development towards technological transitions

Companies are faced with the challenge of responding to the emergence of new technologies. To reduce uncertainties, there is an incentive for companies to get involved in a new technology while continuing to use their existing technology until final decisions can be made, a strategy called ‘parallel development’. Parallel development is good for companies because it provides more options and defers the need for decision making until uncertainties about the new technology are sufficiently reduced. However, parallel development does not just simply consist of developing new technologies alongside existing ones. Moreover, to date there has not been sufficient research into the management of parallel development. This paper will describe a framework of parallel development for successful technological transition, and then illustrate the effectiveness of parallel development through the successful examples of Fanuc, Ltd., and Matsushita Electric Industrial Corporation.

Managing the change of strategy from customisation to product platform: case of Mabuchi Motors, a leading DC motor manufacturer

This paper analyses how component manufacturers can change from a customisation to a product platform strategy. This change requires component manufacturers to deal with issues related to the product architecture of the component itself and to the product development process required to sustain the platform strategy. This paper presents an in–depth analysis of the change in product strategy of Mabuchi Motors, a specialised DC motor manufacturer that sells DC motors for an average of 50 yen and that has enjoyed long–term stability and high profitability. The process involved in changing product strategy is analysed from two perspectives, the design concept (product architecture) of the DC motor, and its product development process. Academically, this study may contribute to enhancing the quality of product platform strategies by expanding these strategies from end product manufacturers to component manufacturers.

Managing The Change Of Architecture Knowledge

With the advent of new technologies, one successful case of technological transition is Fanuc Ltd., a company that successfully introduced Intel MPUs (Microprocessor Units) to NC (Numerical Control) machines in 1975 and has since continued to achieve sustained growth. This adoption of MPU caused a change in NC architecture.Through an in-depth case study of Fanuc, we show how adopting MPU to an NC system destroys the usefulness of accumulated hard-wired architectural knowledge in that firm due to changes in architecture. We also show how Fanuc developed the new architectural knowledge necessary for MPU-based soft-wired NC systems. This study is not an analysis of the causes of failure, but rather focuses on the aspects of successful management of architectural change. By analyzing and studying a successful case, we can gain valuable insights into managing architectural knowledge.

Cultural Mythology and Global Leadership in Japan

Certain conditions which characterized Japan as a nation as well as its climate contributed to the formation of an inherent Japanese culture and consciousness. There are views and analyses from two research streams used to explain the backbone of Japanese consciousness. The first is Shinto as described in the Kojiki and Nihonshoki. Prior to its establishment as a nation state (predating the period of Shotoku Taishi), Japan had hardly ever been exposed to outside influences due to its geographical isolation as an island nation. In that environment, a localized religion which celebrated the worship of ancestral gods and which eventually developed into Shinto was establishing solid foundations. The second stream was Buddhism which was officially introduced to Japan in 538. Shotoku Taishi (574–622) embraced Buddhism at a young age and after becoming regent, incorporated the teachings of Buddha into a constitution (Seventeen Article Constitution) as a framework for governing the state, thereby establishing for the first time a basic foundation for a Japanese state. This milestone had a significant influence in the establishment of the inherent consciousness and culture of the Japanese people thereafter. This initiative was interpreted by some as an effort by Shotoku Taishi to integrate Shinto and Buddhism (the syncretization of Shinto with Buddhism) to maintain the stability of the Japanese state. In the next section, the authors will present general observations on the relevance of Shinto and Buddhism and the Japanese consciousness.