The new business is determined by the "incubation strategy" --lelic Kitajima and Mr. Daimaru.

　Many companies are challenging new business development and open innovation initiatives to adapt to a changing business environment.There would have been many successes, and some failures could not be compared.So, is there any commonality for successful new business development?

　Relic, which develops a business specializing in new business development, may have the answer.CEO, CEO Kitajima, who has supported various companies, from startups to large companies, covers the entire territory of new business development, such as creating ideas, business planning, hypothesis, and engineering, and COO of COO.We asked Tetsuya Daimaru what the idea of the success of the new business development and the points to be aware of.

"Incubation strategy" to think from two axes

——In the support of new business development of companies, Relic seems to value “incubation strategy”. What exactly is it?

Mr. Daimaru: There are three concepts proposed by the Company, as a company needs to increase the reproducibility of new business development and increase the probability of success.One is the "incubation strategy" explained this time.The other two are "IRM (Innovator Relationship Management)" and "Incubation Tech".

　When developing a new business, many companies often imitate the way they work somewhere, but they take optimal resources by taking strategies according to their characteristics, strengths and weaknesses.Let's go, the idea of incubation strategy.

　The incubation strategy consists of two axes.The new business is the "purpose / significance" and "eyes / definition".The axis of "purpose and significance" depends on what kind of perspective you should determine the incubation strategy, more specifically, a "business perspective" or an "organized perspective".

——Do a business point of view is sales -oriented, and an organizational perspective is a focus on growth as a company?

Daimaru: That's right.From a business point of view, for example, when there are two pillars of two revenue in the original existing business, we want to make a third pillar and create a business of 10 billion yen by three years.Is the most important thing about business results?Or, whether you want to nurture human resources suitable for new business development processes, or to emphasize organizational perspectives for "human resource development" and "brewing corporate culture", such as wanting such voices to rise from the company.Divide.

The axis of "eyes and definitions" is divided into two, but one is an asset that can be a source of competitive advantage of the business, and the creation of a business by utilizing and expanding it.It is the axis of whether it is possible.Asset is, for example, with unique patents and skills, strong sales networks and customer bases nationwide, and products that are almost monopolized in the market.If this is possible, it is classified as "closed duration".

　On the other hand, while using your own asset, if you incorporate the assets of other companies, such as outside venture companies and large companies, to create a new business, to create a new business in recent years.It is classified as "open innovation".

——It is divided into closed duration, which is promoting new business development alone, and open innovation that involves other companies.

Mr. Daimaru: The other is the nature and time axis of the market for the market and the customer issues that are trying to solve.In this axis, we will enlighten the market and customers in the medium to long term, aiming for a kind of business that is easy to produce in a short period of time, aiming at the needs of customers that have already become apparent, and for potential customer needs that have not yet become apparent.Is classified into a business that needs to be issued.

　In a short -term approach to solving the clarified customer issues in a close duration, the risk is not large, but the return may be difficult.On the other hand, in the case of an approach that uses its own asset to solve potential needs in conjunction with future market trends and social issues over 3 to 5 years or over a long period of time, although it is a high risk.The return of success is likely to increase, and it can be said that it is easy to create a business that has a large scale and social impact.

——What happens to open innovation?

大丸氏：基本的には、対応する市場や顧客ニーズ・時間軸における考え方はクローズドイノベーションの場合と同様ですが、オープンイノベーションの場合は社外のステークホルダーが増えるので、それによって生まれるリスクを考慮する必要があります。例えば、オープンイノベーションで顕在化ニーズに対して短期的に対応していく場合はM&Aやマジョリティ投資が適したアプローチになりますが、その場合は買収先を適切にマネジメントしていく必要性が出てきたり、仮に買収先の事業成長が伴わなかった場合に減損などが発生する可能性もあります。一方で、潜在ニーズに対して中長期で対応していく場合においては、協業・提携先との共同プロジェクトを推進する中で、事業進捗のスピードが鈍ってしまったり、他社と収益を分け合う形になるため、利益率が低下する可能性が高いと言えます。

　What time axis the business needs are solved with the business we planned, and how much can our asset use in that business?From that idea, I think we will choose which is more appropriate, closed or open.In this way, our proposal is to formulate the optimal incubation strategy by combining the axis of "purpose and significance" and the axis of "eyes / definition".

—— For example, what kind of pattern will you choose and what kind of pattern can you give me an example?

Mr. Daimaru: Employees already have the ability to develop business, and there are cultures and cultures that recommend it, and if you are a company that can nurture ideas in the appropriate evaluation process, it is a business.I think that you can develop a new business with a bottom -up type that emphasizes the perspective.

　Under the instructions of the founding president who can make a clear director, top -down new business development is suitable for the goal of achieving results in new businesses five years later.I think it is easier to lead to business results than gathering ideas from employees, evaluating and selecting.

　However, this is not a choice.There is also a method of collecting internal climate in the new business development program, but also incorporating external ventures with M & A to lead to business results.Not only the extreme idea of going through just one point, but also 5: 3: 2 in multiple approaches, creating the optimal portfolio, investing in appropriate human resources and money to invest in each.Sometimes we make proposals such as creating them.

——What was the case that has been supported so far?

Mr. Kitajima: A lot of new business development programs, in -house venture systems, acceleration programs, followed by top -down type and minority investment.Venture companies tend to have many top -down types.There are a lot of consultations that we want to create a mechanism to create new business development structurally as a whole company, and that we want to help because the system design is not successful.I started the acceleration program once during the open innovation boom, but I often talked to consult because it did not work.

There aren't many consultations from companies saying, "I haven't decided anything yet, but I have to do it ...".From now on, the direction is fixed in promoting new business development, but the business domain has been decided by the great order from the top, but it does not know what to do after this.I think there are many.

Mr. Daimaru: Recently, the number of projects in the company venture system has increased.Until now, the internal venture system has been implemented, but the number of applications is decreasing, or there are few projects that are progressing to commercialization and expansion, so I want to do a leverage or renewal.Many companies want to start a company venture system.I want to do it, but I don't know how to do it.

Differences in thinking about "success" between major and startups

——Please tell us how to support the actual support.

Mr. Kitajima: In some cases, if you are a company, you should start such a new business, and somehow the area and direction of the business are fixed, and we will verify the concrete, feasibility and business nature.I may have it.In some cases, we can help you from discussions to create a new business with this technology and patent.

　There are many cases that help mentoring, consulting, and product development itself for individual businesses.We do not make many fixed types of support, and provide the optimal solution according to the goals and issues of the company.

　By the way, many companies that provide support have never experienced new business development.In many cases, people who have never developed new businesses are assessed by instructing members who have never developed new business development.Therefore, we will systematize what criteria to look at the business and how to proceed with the hypothesis of the business so that we do not become individuals, and install them in the company.We create a mechanism that allows you to accumulate knowledge and experience as the know -how of the entire organization as a whole.

Mr. Daimaru: I hear that a general consulting company thinks about design and settlement, but the actual action is often divided as a role, such as leaving the customer.However, it is characterized by the fact that we can run and implement the phase of execution and implementation, just like customers.Test each other with a channel you have, and bring the results a week later and analyze them.I think it is our characteristic point that we do not separate consultants and business -owners.

—— I think many competitors support new business development.I think that the strength of Relic compared to such companies is to "sweat together with the supporting company", but are there any other differentiations?

Mr. Daimaru: First of all, we, Relic itself, has been expanding its growth since the launch of its business as a party in the development of new business.In addition, it is a point that can be differentiated from the competition, which has a compound viewer, which is an objective research, and provides advice and mentering based on it.I think.

　In addition, half of the employees are composed of engineers and creators, and our businesses are all developed and operated.I often hear that planning and service design are proceeded within the company, but I often hear that there are many companies that outsource the engineering part, but we can also run them all in the company, so we can do so in the first place how much new business is feasible in the first place.You can roughly determine the idea stage.I believe that it is great to be able to evaluate it in the company, such as how much cost and the risks are, and how much technical difficulty and advantage are.

　Even if you want to test marketing on a prototype development or a simple website, you usually make a contract for one month with a quote for multiple system development companies, and it will be developed for three months.One of our advantages is that you can make a quick and test in about two weeks.

Mr. Kitajima: There are many support companies that are in charge of only strategies, system design, product development only.However, as an organization with a certain scale like us, we provide SaaS specialized in creating innovation while covers the entire new business area at a speedy and low cost, and directly from our company B/S.I think that there is probably no other company that implements investment.

Mr. Daimaru: In the development of a new business, it was unlikely that it would sell at all if we conducted a strategy and implemented marketing, so we would return to the strategy, a competition appeared during development and returned to the strategy, and went back and forth.You must to do something before you go on.So, if the support company is divided for each phase and part, it is very difficult to do it because it means "Mr. XX, re -strategy again," or "The project is going on but we will stop ordering".If it is a company that can do one -stop new business development like us, that area will be flexible.

——The story changes, but there are many parts that have different ways of thinking about new businesses between major companies and startup companies.

Mr. Kitajima: Especially when major companies work on new business development, it is important to think that good things are born from various challenges, but we are fighting for home runs in one at bat.There are many companies.Conversely, it may not be easy for major companies to imitate the approach of new business development, which is easy to start up.

　Both startups and major companies have a completely different definition of "success" of the business.For example, in the case of a startup company, if you can increase the valuation anyway, list or sell in the red, you may be succeeded in the short term.

　However, it is meaningless for a major company for a business of 500 million yen or 1 billion yen, and even if the top line (sales) increases and valuations, the new business succeeded if the profit does not increase.It is often not considered.For the first time for the first time for over 10 billion yen to 10 billion yen, the new business has been successful.There is a great gap in the way of thinking from those who are looking at that perspective and startups.

——What are many cases where new business development doesn't work?

Mr. Kitajima: While we support various companies, there are cases where it is easy to work and not.In some cases, some of the cases are not good in the first place, while the incubation strategies are not defined in the management and the entire company in front of them.The gap between the management's eyes and standards and the on -site efforts became intense, and the management said, "It's not advanced at all," "I'm not in the result," and it's just a short since I started.In the period, it will be a story that "Let's quit new business development".

　First of all, in order to continue to develop new business development, it is necessary to set a strategy for the company what kind of position we are working on, why we are working on this business, why we are doing this.I'm thinking about it now that we are systematizing it.

Daimaru: In major companies, management people who approve incubation programs and new business development are regularly replaced.If the incubation strategy has been set in this way of thinking that it is not recorded, the moment the management is replaced, it is said, "I thought it was meaningless from the beginning."You should have to look at it, but there are quite a few things that will be reviewed the following year.With the fact that such a crisis has been visited, we are getting more and more supported.

What is the "evaluation" method for new businesses?

——In the case of new businesses that are often not expected to achieve long -term results, we often hear that it is difficult to evaluate the person in charge.How should the company be evaluated?

Mr. Daimaru: A common business development program is that it is recognized as an extracurricular activity, and even if you give a business idea with your soul and make a hypothesis verification, the budget for the hypothesis verification is small and it itself.Is not included in the assessment item.In a sense, I think that many companies are common in many companies, even though they are working hard with the sense of task and mission of saying, "I have to do something with this company."

　We also propose "Let's change it", but for the new business development program that is hard to produce short -term needs, "Is there any merit in business?"Sometimes it is said.In the first place, I do it to foster a corporate climate, but I think that is a place where the understanding of management and the suffering of the field are not compatible.

Mr. Kitajima: Some companies are gradually appearing in the normal personnel evaluation of new business development.But recently, I think that the immediate effect is to spin out the business as another company.It means that it will be cut out separately from the headquarters personnel evaluation system.It takes time to change the personnel evaluation system of the headquarters, so it's a way to create a special zone in the short term while discussing it.

Mr. Daimaru: In an example where the evaluation system is progressing well, a company that created a new product has been tested and sold by sales and branch staff nationwide.Normally, as a sales staff, selling a lot of existing products that are easy to make sales results will be higher.Therefore, it is common for test sales of new products that do not affect the evaluation.

　Therefore, the company set up a point system for test sales actions.For example, if you take an appointment with a customer for new products, it is one point, 5 points if you make a business talk and propose, and 10 points if you go to the test.By giving an incentive to the test sales of new products, the hypothesis verification in new business development has been meaningful so that it can be evaluated.

—— If you give an incentive that is directly linked to your salary, you may be worried that you will concentrate on the sale of new products only.

Mr. Daimaru: I think there are various ways of giving, not just salaries.That is, even if you are recognized as a business to try a new idea, it will be incentive.

Kitajima: The important thing is the type of incentive and the specific gravity.There are some people who can make various incentives the overall evaluation, and if they are too large, some people will be aiming for it, but if such activities themselves are enough to be positive, incentive purposes.I think it can be prevented from concentrating on people.This is a subtle balance.

　There are absolutely some parts that need to be tuned while doing it.Since the system has been renewed, there is no need for such restrictions to operate for three years.I think it's important to have a design that leaves room for adjustment to change while doing it.

——It's difficult for people who are busy with their main business to look at new businesses.

Mr. Daimaru: For new businesses, we should secure 20 % of time, but those who are following the numerical goals cannot stop their main business with 80 % operation.After doing up to 100 %, twisting more time and creating a new business.Even though I'm working so hard, I can only evaluate only 100 % of my main business.That's a hurdle.

Mr. Kitajima: However, it is impossible to start a new business by 20 % of the operation (laughs).During the new business development program, some companies are designed to lose 50 % at the moment the program ends, even if good ideas come up and about 50 % is applied to hypotheses and brushing up.There are so many.Even if you win as a contest, there are many things that the system suddenly weakens when you try to commercialize it.Rather, it's hard from now on (laughs).There are so many things like this, so let's stop such a design.

——I'm would like an ace -class human resources who can turn new businesses to further expand their main business.

Mr. Kitajima: Depending on the definition of the ace class, it is not always the case that the ace -class human resources of the existing business are ace human resources even in new businesses.Speaking of the number of replacement human resources, there are probably more people who can improve existing businesses well.

Mr. Daimaru: It is a bottleneck that people who are working on new businesses tend to be doing their own earnings from a department that is working in existing businesses.Because it is a launch phase, you don't have to follow the numbers, and it's enviable that you can be allowed in the red.How do the management follow it?Since this new business development is important, it is important that the president, officer, and backing shields are well known, as they should be betting in the red, even if they are in the red.

Mr. Kitajima: However, the officers in charge of the new business and the person in charge of the site may be changed regularly due to their terms and job rotation.If the policy seems to change suddenly when the system moves, there is no reproducibility, so if it is going well, I think that there is a way to continue the system and leave it fixed.Or, even if the top changes, it seems necessary to create a system that has been launched before, the mechanism that is properly operated.

Consultation is not the timing that cannot be drawn later, but in the "initial stage"

—— By the way, it is a good idea to consider the best timing to consult with Relic for companies that are considering new business development.

Mr. Daimaru: In the sense that it is highly flexible, I think it is better to call out in the early phase as much as possible.For example, there is already a product, it has been decided to release it, and we will talk at the stage of what to do, but in this case there is no option to "stop".

　Also, for example, if we judge that we need to reconsider from the concept, and we have to make a product for millions and tens of millions of yen, it will be difficult to move.Rather than that, it is better to say in the early phase that you have 5 ideas and which one to do, or want to give the sixth or seventh idea but do not come out.hey.

　Companies that have a lot of money and money often make prototypes immediately.Before making it, it is important how everyone can feel the "cool feeling in this business".There is a real feeling that there are many companies that can make more and more because there is no "cool feeling".

Mr. Kitajima: I got a budget and I couldn't make a big direction anymore, or I was committed to the management of what I did, but it would be better not to do it because the verification was insufficient if I looked objectively.There are businesses, so it's good to be as good as possible.I think it would be better for customers to enter from around, such as deciding the policy before giving ideas.

—— In the case of open innovation, there are stakeholders other than companies that have directly requested Relic to support, so if you join them, it will be a more complicated relationship.How do you help in such cases?

Mr. Kitajima: In the combination of a major company and a startup company, the eyes that I mentioned earlier did not match, and there were various gaps in the sense of speed, communication methods and use tools, so I entered during that time.I sometimes control it so that the whole project can proceed well.

　Among multiple companies, someone often becomes our partner or primary client, but it is not good to get too close to them.Open innovation will not go well unless all the related companies become Win-win, so there may be many ways to manage the entire project while balancing.

——There aren't many open innovations that everyone can become Win-win.If anything, I feel that there are many frameworks that major companies can get.

Mr. Kitajima: I think that a major company may start under advantageous conditions in the short term, but in the long run, there are many cases where it can not be continued unless it is balanced.Because the startup company will not be able to endure.The first scheme and negotiations are very important.We sometimes have a generous support for that.

　In the open innovation, it is ideal to enter from the phase of the concept of the entire business in the first place and where it is best to assemble based on that.It is not the choice of choosing from the elimination method, or the choice from the application, but the venture that has a firm business concept and has the necessary advantage and asset.It is better to select that there is only here and go to the persuasion.

　Even in the same area, it is often the case that a more technical venture has been found in a broad perspective.If you don't start with a solid business concept and have a solid business concept, I feel that open innovation is likely to break down.

—— I understand that there are many things to think about when starting a new business.Among them, what are the best points that major companies and startup companies are thinking about new businesses?

Kitajima: I think that is to define this incubation strategy as a company.So I put this at the first entrance.There are various specific people, but if this is not solidified or it does not penetrate throughout the company, it will not last long even if you do your best each time.

　The significance of working on new business development, how to position new businesses in the company's company strategy, and how do you build a portfolio?This is still important, so I value this incubation strategy.