Innovation of Small- and Medium-Sized Manufacturers in the Digital Age

Abstract

Due to recent technology progress in areas such as IoT, AI, big data and robotics, Japanese industry is heading towards the Fourth Industrial Revolution. The industrial system is shifting from manufacturing worksite superiority to intelligence or software superiority in manufacturing. The government promotes these trends through its Society 5.0 initiative. Software superiority in manufacturing facilitates front loading; the conversion of skills to explicit knowledge makes progress in manufacturing processes through the use of IT and craftsmanship. This research deals with three cases. The first case is a company-developed system that’s scalable from customized products to standard products and that realizes diversified products via microscale production. The second case, focusing on the introduction of robots and a robot system integrator (SIer), is the keystone company within the SIer community; its business consists of robot engineering projects and FA educational system projects. The third case, metal 3D printing manufacturing, is invigorating. The company is the first service bureau in Japan that is capable of providing comprehensive services in the field of metal additive manufacturing (AM), handling everything from powder development and manufacture to prototyping and mass production needs. Clearly, IoT and the servitization of industry are the two wheels of a cart in industry, significantly transforming not only manufacturing sites but also business models. Although each case represents a different field of industry, each meets a unique and remarkable challenge in standardization, platform and ecosystem. In the digital age, IoT is an enabler and provides a background for transformation of business models. Through servitization, businesses can be the field for co-creation by feeding back the experience of learning-by-doing and reorganizing it. It is a powerful option for company to meet the challenge of service platform building.