Sustainable Business Models in Japan - 28 November 2024 PDF
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Osaka Metropolitan University
2024
Tamane Ozeki
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This presentation explores sustainable business models in Japan, focusing on the influence of Japanese culture and traditions. The speaker emphasizes the importance of the concept of "WA" in driving sustainable practices.
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Sustainable Business Models in Japan: -Leveraging Cultural Values and Traditions 28 November 2024 Tamane Ozeki, Professor, Ph.D. Graduate School of Urban Management Osaka Metropolitan...
Sustainable Business Models in Japan: -Leveraging Cultural Values and Traditions 28 November 2024 Tamane Ozeki, Professor, Ph.D. Graduate School of Urban Management Osaka Metropolitan University Osaka, Japan - The Center of the Kansai Region - Population Japan 127 million Kansai Region 21 million Osaka Prefecture 8.8 million Japan Kansai Region Italy 5.9 million Singapore 5.6 million Osaka Japan Israel 8.8 million Kyoto 40 km Tokyo Kobe City of Osaka 30 km Kansai Nara Osaka 30 km 1 (c) Human Hub Japan Concentration of Academic & Research Institutions ・Osaka University SPring-8 SACLA ・National Cerebral and Cardiovascular Center Kyoto City Area The ‘K’ Super Computer (A World-class Super Computer) Harima Science City Kyoto University Kobe Biomedical Northern Osaka (iPS cells research) Innovation Cluster Area Umekita District, OSAKA Hanshin Ports → Kansai Science City Kansai International Airport Joint Constant Temperature KIX Medica Storage for Pharmaceuticals Kyoto: Embedded in Nature/Culture ponto-cho toji Kyoto: Embedded in Nature/Culture National Treasures In Japan - concentrated in Kansai - Kyushu/Okinawa Hokkaido/Tohhoku Chugoku/Shikoku 2% 3% 6% Kanto 30% Kansai 54% Chubu 3% Hokuriku/Koshinetsu n=1137 2% (c) Human Hub Japan How to leverage the cultural value and traditions? Japanese learn and follow Western method of strategic management Still maintains cultural values and traditions in corporate culture “WA” ; Japan becomes ”the Land of Harmony”. Prince Shotoku -The man who made Japan's national motto, Lived 574-622 (49 years) Enactment of the "Seventeen-Article Constitution" in 604 (rule of law) Article 1: "Harmony is Precious" (respecting diverse opinions and deciding through discussion) Someone called this ”the world's oldest democratic constitution" cf. The Magna Carta in England is in 1215 ; The modern constitution is the U.S. Constitution in 1787 Article 2: Respect Buddhism (Buddhism is universal truth for The center is the crown prince individual spiritual growth to become the higher sprits; This is called “Satori”.) (c) Human Hub Japan Shintoism and Buddhism (Polytheism) Shintoism: little scriptures and precepts; All creatures are part of God; Shinto teaches respect for all other creatures. (Buddhism) “All living-things, even mountains, rivers, plants, trees have Buddha nature. Buddhism teaches a Middle Way that finds harmony from both extremes: Harmony of “WA”. “Both Shintoism and Buddhism teach based on the oneness with nature.... (c) Human Hub Japan The Symbol of WA - Harmonious coexistence of Shintoism and Buddhism- Shiten-noji Temple is the oldest national Buddhist temple in Japan. A company, called Kongo Gumi, It is the oldest long-lived company in the world.1 Shiten-noji Temple: The temple, but it has the shrine gate!, a symbole of Shitoisum The oldest national Buddhist temple in Japan. (c) Human Hub Japan Zen and Mindfulness What is your image of Zen? – Health Benefits: calm down, clear mind, enhanced immunity and concentration, positive thinking – “Mindfulness” practiced by Steve Jobs and Google etc. is derived from Zen Zen is alternative name for the mind The heart of “Hotoke” is when a person reaches a mental state of clarity or empty in thoughts Various meanings of "Mottainai Most common cases are; leftovers from meals/ when disposing of leftovers when someone wastes time or things when receiving an excessive feeling, thing, or opportunity when you lose the above three issues →The meaning can be slightly different depending on the scene Various meanings of “Mottainai" The definition becomes clearer when translating "Mottainai" in the four typical situations. - It’s wasteful. - That’s a waste of time. - It’s too good for me. - How stupid of me! Mottainai is now globally recognized and is becoming a universal language Wanga Maathai: MOTTAINAI as a Universal Word Wangari Maathai, was the first Kenyan woman to win the Nobel Peace Prize in the environmental field – 2005 came to Japan and was inspired by the word Mottainai Environmental 3R (Reduce, Reuse, Recycle) + Respect = Mottainai The MOTTAINAI campaign – developed as a global activity aimed at spreading – proposing a lifestyle that does not burden the global environment and to build a sustainable recycling-oriented society – To cope with climate change and regional contribution Wangari Maathai: MOTTAINAI and the SDGs Enlightenment activities through licensed products and events In the MOTTAINAI campaign, they have been planning and selling environmentally friendly original products based on the 3R + R concept together with supporting companies. A part of the sales is donated to the "Green Belt Movement". “MOTTAINAI” Spirits To avoid wastes/ losses ① Adequate production quantity/ price Producers Products ③ ➁ Differentiated Re-Networking Value Chain with customers Customers 甲斐 (2019) 「ほどよい量をつくる」、インプレスをもとに作成 Discussion Does your country have a similar idea? If so, how is it reflected to the environment/ daily lives/ society etc.? Case 1: System of VegiBus https://youtu.be/msVb7igsQP8?list=TLG Gib7dOD1G11wyMDExMjAyMg 17 C a s e 1: VegiBus A refrigerated vehicle named "Yasai Bus" Makes the rounds of direct sales stands, roadside stations, fruit and vegetable stores, and wholesalers' warehouses Fresh information to the buyers on behalf of the growers The farmers ship their products, and the actual consumers can receive them on the same day, leading to increased profits for both the producers and the buyers Case Study 2: 100 Shokuya Representative Nakamura: "What I consider most important is the 'right to self-determination. We set a limit for our own income." Case Study 2: 100 Shokuya Advantages 1. "Early Returning" leaving time is at 5:00 p.m. in the evening Full-time employees can decide their own working hours. People raising children, pregnant women, people who had no full-time employment experience during the “ice age”, the challenged people, and foreign students. 2. Reducing costs by "reducing food loss to almost zero” The cancellation rate is less than 0.1% by distribution by numbered tickets in person. No "freezer". The amount of food to be used is fixed, amount of food to be purchased is also fixed. Once the 100-meal target is reached, preparation can begin for the next day, so working hours can be reduced. Case Study 2: 100 Shokuya Advantages 2. The key to “Ultimate simplicity in management" is the overwhelming product appeal The signature dish, steak donburi, uses only domestic beef and domestic rice The cost ratio is approximately 50%. No advertising cost is used Only three menus Spread by word of mouth Case Study 2: 100 Shokuya Advantages 3. "Any person can be an immediate asset" No need for motivated people 4. "Liberation from Sales Supremacy" towards a gentler work style No medium to long-term goals or individual employee goals are set. Ideas to raise “customer satisfaction” rather than “making sales”. June 2018: Decision to close one of the three restaurants after selling out only about 50 meals, due to the earthquake in northern Osaka and torrential rain in western Japan. Case 3: GOOD NATURE STATION: To define new “WELL” though new business Case 3: Natural Taste Hotel The first hotel in the world to receive the WELL Building Standard (WELL Certification) A healthy breakfast that makes the best use of selected ingredients Wonderful experiences such as yoga, qigong, and farm harvesting to purify your body and soul Sustainable economic growth rooted in supporting local production, and sustainability Carefully selecting ingredients that are rooted in local production for local consumption Contributes to the realization of a recycling-oriented society Case 3: Original Products “Ba” -Place for interaction Place where people get together and create knowledge Many occasional “Ba”s in daily life – Actual virtual psychological Ba within the organization – Ba where many people interact: e.g., meeting room, presentation room and electronic conference – External Ba, where experiences are shared among clients and suppliers – Vertical Ba within social networks, for example, Facebook – Smoking room Importance of Ba Consist of two elements: – Context, cannot be known if not present at Ba – Relational-From interaction with others to interaction with yourself Importance to management – Honda “WIGAYA”= “Waiwai-gayagaya” - Intensive discussion about the new product - In two-three days, most ideas are apparent, then the team tries to acquire new knowledge or members A Natural Environment Respecting the nature that has been rooted in Kyoto since ancient times Place to realize a comfortable, enjoyable and healthy life by making use of the wisdom you incorporate in daily life The "conductor" that seamlessly connects the entire building will suggest the best selections for you Incorporating a little bit of "GOOD NATURE" into your daily life Enjoy only what you believe in! “GOOD NATURE MARKET” A stylish market, with a wide selection of organic vegetables and environmentally friendly products filled with stories of the producers. A display of earth-friendly foods made in Kyoto ⇁products that are both earth-friendly and good for your body. Experience cooking methods that maximizes the potential of ingredients and seasonal delicious ways to eat seasonal foods. Discussion What is the merit of this business model? – Think of advantage of the “Ba” and “Wa” among the stakeholders related to this facility. How do you deepen or expand these concept by promoting new business? – Think of new business using their resources How can we develop social businesses? -Responsible Innovation towards the inclusive society Università di Padova 29th November 2024 Tamane Ozeki Graduate School of Urban Management Osaka Metropolitan University How can we promote inclusive society? -By designing inclusive organisations 32 Case 4: Senshu Agri Sell the products without ever stating that they were made by NEETs or the challenged people. Target to become business methods to solve original social issues, At the time of its establishment, all directors were former NEET members. 33 Case 4: Agriculture and Welfare ”Nou-Fuku” collaboration Since the company was originally born out of employment assistance, it also works with the challenged people, “Nou-Fuku”, 34 Case 4: NPO to Shareholding Company Community・Business → Social・ Business NPO Welfare Community Senshu Agri Co. Development Practice (Social Enterprise) Organization Developing private organizations that NPO Osaka Youth aim to solve regional issues, not Employment starting from companies, but from the Support Organization Town limits of the public sector. development NPO Welfare Community committee Development Practice Organization Area: Nishinari, Osaka City (Solving regional issues) Ota, CEO of Senshu Agri Co., Ltd. is active in the fields of social business, community and district development, and support for the elderly through agricultural welfare cooperation. 35 Case 5: Making Weakness into Value: "album" The employment support office "album", operated by Takuya Kojima. This office welcomes the challenged people, helping them discover their specific capabilities in a warm, gentle, and comfortable environment. They offer services such as board game sales, photography and video production, and web design. Guided by Social Worker and YouTuber Ryo Izumi 36 Case 5: Gentle Interaction with the community The office is located on the 4th floor of the Ueda Corporation building, which specializes in workplace design. A co-working space for women is on the 3rd floor for shorter work hours. New ideas and collaborations are born from the interactions between Ueda employees and the staff at album. 37 Case 5: UMLAB (Umu Labo) by Album Each creator and each piece of work carries a unique story. gently places the "story" of each creator and each work of art, which "fluctuates" between society and welfare, between "able" and "unable", into a form. diversity social inclusion 38 How can we create Business Model to bring the world sustainable? In collaboration with Masaaki Yoshikawa Human Hub Japan - Even though Japanese are not religious, we are surrounded by nature and influenced by history of Shintoism and Buddhism. - We, particularly in Kansai, have been very keen on the sustainability by nature. Business Model and Net Zero Recently, discussions about transforming companies’ business models to achieve decarbonization have intensified. The potential of business model concepts in understanding and driving sustainable innovation has also been debated (Boons et al., 2013). Business models provide insight into how an organisation delivers outcomes for stakeholders and impacts the natural environment and society (Luedeke-Freund & Rosati, 2020). Function of Business Model Business Model acts as market devices (Callon et al., 2007) and intermediaries between companies, financial institutions, and different innovation actors and networks, such as research institutions (Doganova & Eyquem-Renault, 2009). The relationship between business models for decarbonization and economic performance is now under heightened scrutiny (Alfonso-Martinez, 2021; Brennnan & Tennant, 2018). Net Zero and Nature Positive G7 leaders called for the world to become net zero and nature positive. Nature positive means enhancing the resilience of our planet and societies to halt and reverse nature loss. It has become a movement, with leaders from governments, businesses and civil society committing to action. What is 'nature positive' and why is it the key to our future? | World Economic Forum (weforum.org)