Fourth Industrial Revolution, Challenge Accepted a Guide to Understanding Why Japan Is Set to Re-Own International Leadership in the ‘Era of Acceleration’
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J APAN Fourth Industrial Revolution, challenge accepted A guide to understanding why Japan is set to re-own international leadership in the ‘era of acceleration’ As the dominant force in global manufacturing in the 1970s and early 1980s, particularly in the consumer electronics industry, Japan became an economic juggernaut and a poster boy for technological innovation. However, what followed has since become commonly known Like any revolution, there will is already a pioneer – is expected to as the “Lost Decades”: a period of be winners and losers, so Japan, it grow at an annual rate of 12% to “Japan’s forte is in economic decline characterized by seems, couldn’t have timed its manu- reach $79.5bn by 2022. creating high-quality a loss of ground to manufacturing facturing comeback much better. On Yoshiharu Inaba, Chairman and authentic products” rivals in the Asian region and further the back of Prime Minister Shinzo CEO of FANUC – Japan’s leading exasperated by the global fnancial Abe’s eponymous ‘Abenomics’ strate- robotics company – believes the Kazuhiro Kashio, crisis in 2008. gy and Japanese industry’s great glo- signifcance of such growth will be President, CASIO The pendulum though has swung balization push, the country shipped historically monumental. once again, and this period in the run $645.2 billion worth of goods inter- “With the invention of steam en- up to 2020 – the year Japan will host nationally last year, up by 11.1% since gines, Britain’s industrial revolution ucts were synonymous with quality the Olympics – is being marked as 2009 when the economic recession boosted the effciency of manufac- and reliability, and the world knew the country’s great comeback to kicked in, and up 3.2% from 2015. turing processes,” he says. “In to- them as such.” manufacturing competition, while Yuji Kaneko, President of one day’s revolution, the steam engine If Japan is indeed to undergo a the nation itself is tipped to become of the world’s leaders in electri- has been replaced with Internet of similar transformation during 4IR, a new leader in the so-called Fourth cal discharge machinery, Sodick, Things and robotics, but the out- cementing its status as a manu- Industrial Revolution. believes that such fgures show come will be the same: greater ef- facturing and economic giant once The Fourth Industrial Revolution, that international appreciation for fciency and greater speed.” again, then the focus now must be or 4IR, is best described as a range Japan’s renowned innovative spirit Shozo Kawanishi, President and on how to carry its recent progress of new technologies – artifcial intel- is fnally returning. CEO of Yamato Scale, a pioneer in frmly into the future. That means ed- ligence, robotics and nanotechnol- “China has been winning in terms multihead weighing technology, puts ucation, stresses Takashi Matsuoka, ogy, for instance – that are fusing of cost effciency, but Japan has been the new technological revolution into President at Doshisha University. the physical, digital and biological regaining its strength as the techno- greater historical perspective, com- “AI will have a tremendous role in worlds, and impacting all disci- logical leader,” he says. “For Japan, paring the changes afoot to the monu- society in the future,” he says. “There- plines, economies and industries. optimization of products makes our mental economic transformation the fore, it is important that universities If there is one sector that will be strength, and it is the reason behind country went through in 1940s. diversify and create courses from transformed more than any other, our latest sales increase.” “After World War II, the Japa- the perspective of humanities while it is manufacturing, especially as There are certain sub-sectors di- nese economy and industry devel- involving AI technology. I do believe demand for better products at a rectly linked to the 4IR where Japan oped incredibly rapidly,” he recalls. Japanese universities are ready to better cost in a market defned by is particularly in prime position to “The reason for this soaring growth educate students who can lead the constant innovation exponentially prosper. The global industrial robotics was due to the reputation of the fourth industrial revolution in the increases. market for example – in which Japan ‘Made in Japan’ products. Our prod- coming years.” Japan Inc. leverages monozukuri philosophy The art of excellence still drives Japanese competitiveness Japan’s acclaimed monozokuri phi- losophy – that trademark creativity and craftsmanship responsible for the country becoming synonymous with innovation – has been put on trial over the past few years as its manufactur- “Our competitors make “Because we operate “Manufacturing plays ing industry faltered. generic products, and globally, our sales struc- an essential role for the Some Western observers in par- then let their clients ture extends all around economy, and we want ticular suggest that Japan’s suppos- choose which one suits the world, and we have a to offer our manufactur- edly extreme conservative corporate them best. Our company material presence in al- ing clients IT products culture is to blame for hampering its innovative output and claim the coun- adapts its products to the most all of the countries and services to boost try has lost its crown as the king of needs of its customers” in which we operate” effciency of production electronics. More specifcally, critics procedures” say, the Japanese have focused too Koichi Ogata, President, Nitta Yuji Kaneko, much on developing products and less Gelatin Inc. President, Sodick Fujio Tahara, President, CEC on adapting to customer needs. However, with manufacturing page 5), on the other hand, Japa- make their customers as happy “We tailor-make our solutions to exports from the archipelago hav- nese companies are also refocusing as possible,” says Jun Yamaguchi, satisfy our client’s demand,” adds Mr. ing bounced back strongly recently, on the unique strength that saw the President of Tokuriki Honten. Ogata. “While this creates many dif- Japan is proving its critics wrong. nation become a creative power- Japan Inc.’s entrenched commit- fculties, it allows us to create a bond While this is happening on one house in the frst place: monozokuri. ment to quality and precision has in- with our partners, making sure that hand through switching to more “People engaged in the manu- deed led the country to be reputed for they do not switch to the competition.” of a business-to-business (B2B) facturing sector thrive to produce its technical infallibility, and in the era Such an increased emphasis on approach to manufacturing (see high-quality products in order to of increased technological complexity, adapting to the differing prefer- reliability is a golden attribute. Along ences of customers is linked closely with this reliability that Japanese to the globalization of commerce – a manufacturers provide, in response concept welcomed more so now in to the criticism they have received, Japan than ever before in its history. corporations are now putting greater Yuji Kaneko, President of Sodick, emphasis on customization to cater identifes this trend as especially sig- for the needs of clients’ demands. nifcant in how Japanese companies “If the forte of Japanese compa- are now approaching doing business. nies is in making high quality prod- “Our philosophy of client care is ucts, their weakness is in launching pursued thanks to our international their products into the market,” bases,” he says. “Because we oper- admits Kazuhiro Kashio, President ate globally, our sales structure ex- of CASIO. “Our future objective is tends all around the world, and we to make new products, while also have a material presence in almost enhancing the user value, usability all of the countries in which we oper- and usefulness of existing devices. ate. This global presence allows us to “Today, the best-selling smart actively solve our clients’ problems.” watches are made by Apple. How- As for smaller, independent ever, our focus is not on making the Japanese frms such as Computer best-selling smart watch, but instead Engineering & Consulting Ltd. on making something that will offer (CEC) which hasn’t yet become fully value and usefulness for the users.” international, then embracing this This is a way of thinking today new, more outward-looking and being shared across the board in Ja- customer-driven strategy is quite pan, from watchmaking to gelatin clearly the objective. production. “My personal goal is for this “Our competitors make generic company to create ‘Made in Japan’ products, and then let their clients software products that can be used choose which one suits them best. worldwide,” says CEC president, Fu- Our company adapts its products to jio Tahara. “Manufacturing plays an the needs of its customers,” explains essential role for the economy, and Koichi Ogata, President of Nitta we want to offer our manufactur- Gelatin Inc. -- a world leader in the ing clients IT products and services manufacture of food, pharmaceuti- to boost effciency of production cal and technical gelatins. procedures.” Riken drives performance with its cutting-edge and cultivated technology The autoparts maker, employees, which has allowed for efforts on the development of whose advanced piston global competitiveness and ex- high-performance PCU systems pansion. With piston rings as one technology. In 2015, it entered rings can be found in of its core businesses, Riken has into a partnership with major cars around the world, evolved into a leading manufactur- German piston maker, KS Kol- has developed a diverse er of high-performing automotive benschmidt GmbH, in order to portfolio of groundbreaking and other functional components. enhance the PCU systems capa- technologies that According to the company, bilities of both companies, and to half of Japanese cars around provide advanced PCU solutions will promote further the globe are equipped with its to their customers.