Embracing Digital Transformation in a Shrinking Population
In today's rapidly evolving business landscape, the struggle for survival among industries is evident, particularly in regions facing significant population decline. One remarkable case of innovation comes from Shikoku Kako Co., Ltd., a prominent manufacturer located in Higashi Kagawa City, Kagawa Prefecture, Japan. Together with Frontier Inc., which operates the business matching service Ready Crew, Shikoku Kako has successfully implemented a comprehensive digital transformation (DX) project that has redefined its operational framework.
The Challenge of Population Decline
Over the past two decades, Higashi Kagawa has seen its population shrink by nearly 40%. Compounding this issue, approximately 30% of Shikoku Kako's workforce is set to retire within the next ten years. The leadership at Shikoku Kako felt a pressing urgency: if they did not adapt to these changes, the future of the company itself was at serious risk. With no personnel equipped with the necessary IT or AI expertise, the company was at a loss regarding how to begin the transformation process.
Ready Crew’s Strategic Support
Enter Ready Crew, a service that not only identifies potential partnerships but also seeks to deeply understand the aspirations and challenges of its clients. Frontier chose Macnica Co., Ltd., known for its expertise in DX within the manufacturing sector, to partner with Shikoku Kako. The selection process was driven by a mutual alignment of values rather than solely cost considerations, which led to a fruitful collaboration starting from their very first consultation.
Remarkable Outcomes Achieved
In just a year and a half, the collaboration led to the complete integration of generative AI and the visualization of business processes. Shikoku Kako has navigated a transformative path, moving away from traditional practices in favor of a more data-driven management approach.
1. AI Utilization Across the Organization
With training programs for management in place, the use of tools like Google Workspace and Gemini has become commonplace. Employees, ranging from young professionals to seasoned veterans, are now equipped to leverage AI in their everyday tasks, fostering a culture of innovation.
2. Moving Away from Paper
The transition towards a paperless environment is underway, with plans to reach complete digitalization by 2026. Traditional paper processes are being eradicated in favor of tablet-based data entry, marking a significant cultural shift in Shikoku Kako's operations.
3. Launching a Global Strategy Based on Data
The company has started to capitalize on its manufacturing and sales data, laying the groundwork for new business ventures that aim to position Shikoku Kako not just as a regional player, but as a leader in the packaging sector.
Voices from the Project Leaders
As a testament to the success of this partnership, Kanjo Nakanishi, head of the Business Planning Department at Shikoku Kako stated, "I’d recommend Ready Crew to leaders facing resource constraints while hoping to effect change. Our meeting with Macnica, which could be considered the optimal solution for us, was made possible by the understanding and support from our concierge. We are transitioning from a 'hidden management' style to openly showcasing our transformation through DX, attracting a younger audience to our business."
Yuma Murazawa from Macnica similarly reflected, "The encounter with Shikoku Kako was compelling. I could see their leadership's genuine commitment toward their future. Ready Crew's role in clarifying client challenges before discussions began is invaluable. We’re dedicated to supporting Shikoku Kako’s DX journey and new business endeavors using AI technology."
Conclusion
The experience of Shikoku Kako serves as a powerful illustration of how companies can pivot dramatically in response to challenges, especially in areas facing demographic changes. Thanks to the collaboration facilitated by Ready Crew, traditional manufacturing can not only adjust but thrive in this new digital era.
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About Ready Crew
Ready Crew connects companies through a business matching platform, leveraging a vast network and deep listening capabilities. Its consultants address a range of client needs, ensuring optimal partnerships while maintaining zero service fees for the client side.
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