Business Model Innovation: A Japanese SME Driven to Full Digitalization by Corporate Philosophy

Abstract

This chapter investigates the transformation of a conventional manufacturing company into a knowledge-based, digitally focused firm and the process of its next transformation into a fully digital company. The company at the focus of this case study is developing its third main business model as it prepares for a future in which it maintains existing strengths and learns to exploits new market niches and the capabilities of digital platforms. The company's innovation of its business model is driven primarily by the realization of its philosophy regarding work, customers, and employees as well as more conventional factors such as profits and technology. The roles of the key actors, redirection of resources, and decision-making processes are considered in this case.