background

In addition to existing, create new businesses to serve as a step toward realizing the management goal of creating a trillion-yen proprietary economic zone.

Activities were initiated with the aim of creating the business plan for the 2024 Mid-Term and beyond. It was management’s intention to create a vision of market acceptance and development of new businesses utilizing digital technology, and to take the first step toward the realization of a unique economic zone of 1 trillion yen.

The strategic investment fund was 10 billion yen per year. It was necessary to select the businesses in which to invest, to determine the decision to terminate the investment, and to sort out new and existing businesses. The company also intended to refine the businesses to be invested in, and to create and promote businesses that transcended the boundaries of business divisions.

issue

We must take stock of existing and new businesses in order to focus on where to invest the 10 billion yen budgeted.

Inventory of existing and new businesses had not been conducted. As of FY19, 20 businesses were underway. Toward FY20, the company was seeking new business proposals internally and needed to conduct a preliminary review and analysis of the submissions. The 15 newly proposed businesses were to be analyzed to provide material for investment decisions.

In addition, it was necessary to identify existing businesses that were unprofitable or had no future and clarify the situation so that decisions could be made to terminate the investment.

monitoring a total of 35 existing and new businesses on a monthly and quarterly basis.

activity

Through the monitoring of 35 existing and new businesses, we identified issues and proposed solutions, providing material for management decisions.

The project performed the following three tasks.

– Selection of key themes After solicitation and compilation of new business proposals, we analyzed the proposal materials and developed hypothetical issues. Then, we conducted an assessment evaluation and selected key themes.

– Scale scenario development We identified factors that would prevent the project from moving forward and proposed solutions. In implementing the solutions, we kept them on track by monitoring the status and confirming the results of implementation. Thus, while digging into and resolving issues, we prepared materials that allowed us to determine the continuity and future potential of the project.

– Monitoring Monthly reports and quarterly performance reports were made and facilitated reporting meetings. Finally, recommendations were made to the Steering Committee for items to be discussed.

Based on these results, management made investment decisions on important themes and terminated investments.

consequence

Supported management decision of selecting investment targets of 10 billion yen per year, with an estimated business scale of 1 trillion yen to create new businesses.

One consultant (and one from another company) supported the decision making of a company with an annual investment of approximately 10 billion yen and an expected future business scale of 1 trillion yen.

We supported the management decision by optimizing the investment and recovery of strategic investment funds, selecting the business for investment, preparing materials leading to decision making on discontinuation, and facilitating the meetings.

After the completion of this project, a new business structure was created across Business Units and those new businesses will be put into implementation. The results of the project will also be used as the basis for the development of the 2024 Mid-Term Management Plan.