CSV 2.

0
Takashi Nawa
Professor
International Corporate Strategy
Hitotsubashi University

2017.04.12

©2014 Graduate School of International Corporate Strategy Hitotsubashi University All Rights Reserved.
 Michael Porter`s CSV Concept

Ⓒ 2008.Toro Hitotsubashi 2
 Positioning “Old Capitalism”, “CSR” and “CSV”

Strong

CSR CSV
Societal Value

PPP
X (Pure
Compliance Pursuit
of Profit)
Weak
Weak Strong
Economic Value 3
Ⓒ 2008.Toro Hitotsubashi
 4 Missing Links to be Further Explored
Today`s topic

1. Redefining Governance Model

to Capture Dual Values
2. Redesigning Business Model to 4.Building J-
Capture S⁴* CSV Model
3. Architecting Organization
Model to Drive CSV

* Economies of Scale, Scope, Skill and Speed

4
Ⓒ 2008.Toro Hitotsubashi
 1. Redefining Governance Model
Q. How do we measure these two axes?
Strong

CSR CSV
Societal Value

X PPP
Weak

Weak Strong

Economic Value

5
Ⓒ 2008.Toro Hitotsubashi
Source:McKinsey
 CSV and Corporate Value @Nestle
1 Innovations: New product line and business models
Value dimension* Value drivers
2 Premium pricing for sustainable goods & services

Pricing 3 Demand driven by awareness of social, environmental ort health benefits

4 Distribution effectiveness / market reach

5 Macro-conditions for demand

Revenue Volume 6 Security of supply

7 Distribution costs

8 Costs of surplus/ price volatility

Operating 9 Resource and materials usage
expenditure
10 Process and systems efficiency

11 Research & development

HR costs
Value from 12 Staff recruiting and retention
Costs Costs of
CSV 13 Avoidance of fines and compensation
compliance
14 Access to capital markets
Costs of
capital 15 Forward looking political regulatory alignment

16 Community goodwill
Stakeholder
goodwill 17 Civil society goodwill
Intangibles/ (L to O)
18 Employee motivation & talent attraction
reputation
Consumer 19 Customer loyalty and trust
branding 20 Competitive differentiation
*Note: Risks are not represented as an individual branch to the tree, but instead are considered as a potential impact-relationship with all branches
Source: Accenture
Ⓒ 2008.Toro Hitotsubashi 6
 3BL and Corporate Value @Novo

Triple Bottom Lines

Ⓒ 2008.Toro Hitotsubashi 7
Translating SV to EV@Ajinomoto
H : Healthy Living

How Business Activities and Social/Economic Value Connect F : Food resources

E : GlobalSustainability
Integrated
(e.g.) Business activities Social value Economic value Value
*Numbers = FY20 target
H
1
Health & well-being through good and healthy food
Produce good and healthy Better nutritional balance by ea
food menus with proteins ting more proteins and vegetab Umami seaso
and vegetables centered les with umami nings
+100K tons ROE
on Umami 10% or more
H Flavor seaso (+2% or more)
nings
2 Strong social bonds, More eating together +90K tons Total
diversity of lifestyle sales
s ¥1,350 bil.
Provide food products that Frozen foods (+¥260 bil.)
enable smart and deliciou Smart and delicious +30 mil. pkg 1)
cooking Soup Business
s cooking +100 mil. servings 2) profit
¥137.0 bil.
Provide products supported People's comfortable Amino acids (+¥44.2 bil.)
by our amino acid technol lifestyle
ogies
+80k tons Business
profit rati
o 10%
F E (+1.6%)
3 Living with the society and the earth
Construct a value chain Resolution of Cost reduction
that optimizes the u 1,500
se of resources environmental issues ▲¥10 bil.3) mil.USD
or more
H F E EPS +850
4 Co-creation with our diverse human resources
Higher specialty ratio t growth rate mil. USD
Improve working hrough innovation (double digit a or more
environments su Improved employee nnual growth)
engagement Higher work efficiency
pported by ICT supported by ICT
Copyright © 2017 Ajinomoto Co.,▲Inc.¥ All
2.5 bil.reserved.
rights
1. Counting only products for household consumers in Japan; 2. Counting only the "Cup Soup" brand products in Japan; 3. Comparison between FY16 and FY19;
4. Measured by Interbrand, "Japan's Best Global Brands 2016" (based on FY15 results)
Notes: The numbers for Umami seasonings, Flavor seasonings, Frozen foods, Soup, Amino acids = FY15-20 comparisons; for financial KPIs = FY16-20 comparisons 7
Ⓒ 2008.Toro Hitotsubashi
 Roadmap to a "Genuine Global Specialty Company":

Sustainable value creation as a

Genuine Global Specialty Company
¥150 bil.
Borderline for a global top
¥130 bil.
10 class food company1)
Sustained growth as a
Become a global
global top 101)
Accelerate top 10 class food
class food company
growth momentum company

FY13 FY16 Forecast FY20 Target (Organic growth)

JP GAAP (FY15 for non-financials, brand value) IFRS
JP GAAP IFRS
Operating/business profit ¥61.8 billion ¥81.5 billion ¥92.7 billion ¥137.0 billion
Operating/business profit margin 6.5% 7.4% 8.4% 10%
ROE 7.1% 7.4% 8.2% 10% or higher
EPS growth rate - +4.2% - Double-digit annual growth
Intl. sales growth rate2) - +18%4) - Double-digit annual growth
Meats: 6.6 mil. tons; 16% (7.7kg/person/yr) Meats: 8.6 mil. tons; 19% (9.7kg/person/yr)
Meats and vegetables consumption - Veg.: 3.8 mil. tons; 6% (4.5kg/person/yr) Veg.: 5.5 mil. tons; 8% (6.2kg/person/yr)

Contribution to eating together - 50 times / households / yr 70 times / households / yr

Spare time created - 31 mil. hrs / yr (4.5 hrs / households) 38 mil. hrs / yr (6 hrs / households)
Comfortable lifestyles (AminoScience) - 18 mil. people 22 mil. people
Resolution of environmental issues -
Employees with high engagement - - (To be measured from FY17) 80%
Inte-
grated Brand value 5) - 650 mil. USD 1,500 mil. USD or more
1. Global top 10 class status defined as business profit of ¥130.0 billion or higher with IFRS accounting standards.; 2. Consumer foods, local currency basis
3. Refer to Reference Materials (pp.36-40) for definitions of non-financial targets and calculation assumptions; 4. Includes Frozen foods (Ajinomoto Windsor, Inc.); 5. Measured by Interbrand
9
Ⓒ 2008.Toro Hitotsubashi
 Ajinomoto Group's FY2020 Integrated Targets:
Achieve value creation by setting integrated targets for both social and economic values

"Genuine Global Specialty Company"

To become a global top 10 class company that grows sustainably through ASV
Integrated Value Corporate Brand
Enhance brand value through creating social/economic value, which leads to further value creation FY20 brand
value target1) = 1,500 mil.USD or more
FY20 Integrated Targets

Financial targets (economic value) in IFRS Non-financial targets2) (social value) S :Social E :Environmental
G :Governance

S Meats: Vegetables:
Meats and vegetables
Business profit ¥137.0 bil. or more consumption3) (Japa 8.6 mil. ton 5.5 mil. tons/y
19% (9.7kg/person/yr)
s/yr; 8% (6.2
r; kg/person/yr)
n, Five Stars)4) vs FY15 +3% (+2.0kg) vs FY15 +2% (+1.6kg)

Contribution to eat S
Business profit margin 10% 70 times / households / year
ing together
vs FY15 +20 times
(Japan and Five St
ars)4) 38 mil. hrs / yr
Spare time created S
ROE 10% or higher (6 hrs / yr / households)
(Japan)5)
vs FY15 +7 mil. hrs

Contribution to comfortable S 22 mil. people

lifestyles (AminoScience) vs FY15 +4 mil. people
EPS growth rate Double-digit annual growth
Resolution of en E Contribution to the global environment
through initiatives ahead of std. intl. targets
vironmental issues e.g. GHG6): 50% reduction by FY307)
Intl. sales growth rate
(consumer foods) ( Double-digit annual growth Employees with G
local currency basis) 80%
high engagement
1. Measured by Interbrand; 2. Refer to Reference Materials (p.36-40) for definitions of non-financial targets and calculation assumptions; 3. Annual total and % of annual consumption per person;
4. Calculation based on certain products in Japan and Five Stars; 5. Calculated using certain Japan Frozen Foods and Soup products.; 6. GHG = Greenhouse gases; 7. Compared to FY05 Note: std. = standar
d, intl. = international
8
Ⓒ 2008.Toro Hitotsubashi
 Brand Equity Valuation
(Global Brand Ranking 2016)

Ⓒ 2008.Toro Hitotsubashi
 Japan`s Brand Ranking 2016

Ⓒ 2008.Toro Hitotsubashi
 Co-relation between Brand and CSV

10 KPI for Brand Intensity Valuation

Internal External
Clarity Authenticity
概念明瞭度 信頼確実度

Commitment Relevance
関与浸透度 要求充足度
CSV
Governance Differentiation
統治管理度 差別特有度

Responsiveness Consistency
変化対応度 体験一貫度
CSR
Presence
存在影響度

Engagement
共感共創度

Ⓒ 2008.Toro Hitotsubashi
 3+1 Enablers to Realize CSV

Brand
Building WHY WHAT HOW

3+1 BE IT DO IT SAY IT
Enablers
to realize MEASURE IT
CSV

Ⓒ 2008.Toro Hitotsubashi
 MEASURE IT - How to Measure Brand Impact

Co-relation between SV and EV

SV through CSV
Social Value
（＝ Premium Brand Loyalty
Value
） Corporate Value
Enhancement
Economic Value Intangible Cycle
（＝ Basic Brand Loyalty ） Asset

Brand
Equity

Ⓒ 2008.Toro Hitotsubashi
 Co-relation between Brand/Social/Economic KPIs

Brand Impact KPI

Economic Impact KPI

Brand
Value
Realization of Enhance-
Awareness &
ment
Corporate
Recognition
CSV Value
Enhancement

Positive Impact on Competitive High

Social Issues Advantage Profitability

Social Impact KPI

Ⓒ 2008.Toro Hitotsubashi
 4.Building J-CSV Model
Unlike US companies, Japanese companies should enhance
more on the economic value dimension.
Japanese
companies ？ CSV 2.0 ？

Strong

CSR CSV
Societal Value

US
companies

PPP
Weak

Weak Strong
17
Ⓒ 2008.Toro Hitotsubashi
Economic Value
 Fortune “Change the World” Ranking (9/1/2015)

順位 企業名 産業 国 順位 企業名 産業 国
順位 企業名 産業 国 順位 企業名 産業 国
1 Vodafone and Safaricom Telecommunications U.K./Kenya 26 BD Medical Equipment U.S.
2 Google (Alphabet) Internet Software & Services U.S. 27 M-Kopa Semiconductors Kenya
3 Toyota Motor Vehicles Japan 28 Unilever Food Consumer Products U.K./Netherlands
4 Walmart General Merchandisers U.S. 29 Ayala Real Estate Philippines
5 Enel Utilities Italy 30 Whole Foods Food & Drug Stores U.S.
6 GSK Pharmaceuticals U.K. 31 CVS Health Food & Drug Stores U.S.
7 Jain Irrigation Systems Machinery India 32 Equity Bank Banks Kenya
8 Cisco Communications Equipment U.S. 33 Intercorp Diversified Financials Peru
9 Novartis Pharmaceuticals Switzerland 34 Philips Electronics Netherlands
10 Facebook Internet Software & Services U.S. 35 Ikea Furniture Stores Sweden
11 MasterCard Consumer Finance U.S. 36 SpaceX Aerospace & Defense U.S.
12 Grameen Bank Banks Bangladesh 37 Nike Apparel U.S.
13 Alibaba Internet Software & Services China 38 Maersk Shipping Denmark
14 Danone Food Consumer Products France 39 Intel Semiconductors U.S.
15 BYD Motor Vehicles China 40 Arup Engineering & Construction U.K.
16 Cemex Construction Materials Mexico 41 Twitter Internet Software & Services U.S.
17 Discovery Ltd. Life & Health Insurance South Africa 42 Ford Motor Motor Vehicles U.S.
18 Novo Nordisk Pharmaceuticals Denmark 43 Fitbit Consumer Electronics U.S.
19 SABMiller Beverages U.K. 44 Ecolab Specialty Chemicals U.S.
20 IBM IT Services U.S. 45 Opower Internet Software & Services U.S.
21 Roshan Telecommunications Afghanistan 46 Waste Management Waste Management U.S.
22 Vanguard Asset Management U.S. 47 Costco Specialty Retailers U.S.
23 Starbucks Restaurants U.S. 48 Kickstarter Internet Software & Services U.S.
24 Patagonia Apparel U.S. 49 Marks and Spencer Department Stores U.K.
25 Cargill Agricultural Products U.S. 50 Essilor Medical Equipment France

Ⓒ 2008.Toro Hitotsubashi
 Fortune “Change the World” Ranking (9/1/2016)
1 GlaxoSmithKlinePharmaceuticals 26 Salesforce.comComputer Software
2 IDE TechnologiesIndustrial Machinery 27 UnileverPersonal Products
3 General ElectricIndustrial Machinery 28 CVS HealthFood & Drug Stores
4 Gilead SciencesPharmaceuticals 29 Accenture Information Technology
5 NestléFood Consumer Products 30 Didi ChuxingTransportation
6 NikeApparel
31 Johnson & Johnson Pharmaceuticals
7 MasterCardFinancial Data Services
32Banco de CréditoBanks
8 United TechnologiesAerospace & Defense
33 Compass GroupFood Services
9 NovozymesSpecialty Chemicals
34 mPedigree InformationTechnology
10 First SolarEnergy
11 Coca-ColaBeverages 35 LinkedInInternet Services & Retailing
12 IntelSemiconductors 36 Smart Telecommunication Services
13 Munich ReInsuranceProperty & Casualty 37 Becton DickinsonMedical Products & Equipment
14 Fibria CeluloseForest & Paper Products 38 PepsiCoFood Consumer Products
15 WalmartGeneral Merchandisers 39 Panasonic Electronics
16 Bank of AmericaBanks 40 GapSpecialty Retailers Apparel
17 Crystal Group Apparel 41 TribancoBanks
18 Ito En Beverages 42 DSMSpecialty Chemicals
19 PayPal Holdings Financial Data Services 43 HeinekenBeverages
20 SkandiaInsurance Life & Health 44 BTPNBanks
21 Siemens Industrial Machinery
45 StarbucksFood Services
22 National Australia Bank Banks
46 CiplaPharmaceuticals
23 Olam International Food Services
47 IBM Information Technology
24 Schneider Electric Electrical Equipment
48 Godrej Group Industrial Products
25 McDonald’s Food Services
49Grupo BimboFood Consumer Products
50 Tesla MotorsMotor Vehicles & Parts
Ⓒ 2008.Toro Hitotsubashi
 Japanese Best Practice① ： Itoen
「 3S 」
<Ito En Group’s CSR>

Aim to be the world tea company

Activity axis as a comprehensive beverage

manufacturer
Product development concept
Business model Group’ power
Community-based
Route sales
Supply system from Nature Health Safety Synergy among the
upstream to downstream Group
Good Good taste Creating
design shared
Key theme value
Key theme Key theme
The environment Consumer issues Community involvement
and development
Basic
Labor Fair operating CSR
Organizational governance Human rights practices practices
Ito En’s principle: “Always Putting the Customer First” Personnel
developmen
It is implemented by the team Ito En. through
ESD
Creating shared value (CSV):Solving social issues (solving customer complaints) and fostering the Ito En
Group= Implement “Still Now”
Basic CSR: Strengthening the management foundation based on the seven core subjects of
social responsibility defined in ISO 26000 20
Ⓒ 2008.Toro Hitotsubashi
 Itoen CSV2.0 Hypothesis

5 Values: physical →mental

Nature → Natural mind （素直な心）
Health →Wellness （心の健康）
Safety → Peace of mind （心の平安）
Good design → Imagined landscape （心の情景）
Quality of Taste → Quality of Life

Engagement
Connectivity, Sharing, Commune （霊的交感） ,Bonds （絆）
Nomad, Ordinary & Extraordinary （日常と非日常）、 Legacy of Future （未来の伝統）
Serendipity （偶然の出会い）

Make world beautiful through Tea

Cool Japan ： peace of mind （なごみ、やすらぎ）
World Tea Producer ： herb tea, mint tea, chai, etc.
Mindfulness: Yoga, Zen Meditation, Six Sense

Ⓒ 2008.Toro Hitotsubashi
 Japanese Best Practice② ： First Retailing
“Lifewear”
<Corporate Statement>

Changing Clothes, Changing Conventional Wisdom.

Change the World

Ⓒ 2008.Toro Hitotsubashi
 Grameen UNIQLO

23
Ｑ． Is FR a CSV company?
Ⓒ 2008.Toro Hitotsubashi
 Heattech resulting from Tight Collaboration

Branding as “Cool Japan”

“Mega hit” product

development skill

_______________
Open Innovation
Virtual Company

“High functionality
textile” technology
development skill

24

Ⓒ 2008.Toro Hitotsubashi
 New business model through digital
transformation
Prod/materials development/ MD+prod dev/Production/Distrib+delivery/Marketing/Stores/Guests

Put the
guest/customer at
 the
お客様を中心とし
center, solicit
て、お客様のニー
their needs. Ensure
ズをくみ上げて、物
product creation
and information
づくり、情報づくり
accumulation
のプロセスが、全 is
done in parallel
世界で同時進行
across the globe at
 the
お客様とユニクロ
same time
がダイレクトにつな
がることで、お客様
Connect the
customer
が 求める商品を directly
to Uniqlo
すぐに商品化でき to ensure
that what they want
るサプライチェーン
is immediately
is immediately
conveyed to Uniqlo
who can productize
the idea in our
supply chain
25
Ⓒ 2008.Toro Hitotsubashi
 Japanese Best Practice③ ：Ajinomoto
“ASV”
Our Philosophy
What We Aim for (Our Philosophy):
We will accomplish our Mission by engaging in businesses that embrace our ASV

Corporate Message
Eat Well, Live Well.

Ajinomoto Group Mission Our mission is to contribute to the world's food a

(Mission) nd wellness, and to better lives for the future

Our vision is to become

a genuine global food company group with speci
Ajinomoto Group Vision
alties guided by our leading-edge bioscience and
(Vision)
fine chemical technologies

ASV
(The Ajinomoto Group Creating Shared Value) ASV represents our unchanging commitment: Wi
(Value) th our stakeholders and businesses,
we help solve society's issues,
leading to the creation of economic value
Ajinomoto Group Way

Ajinomoto Group
Principles (AGP) Copyright © 2017 Ajinomoto Co., Inc. All rights reserved.

2
Ⓒ 2008.Toro Hitotsubashi
 Social Issues to Resolve and Values to Create
Contribute to resolve social issues with our businesses, leading to economic value and sustained growth
Healthy Living
Physical: Psychological:
•Nutritional inbalance wi •Eating alone & la ASV Value Creation Stories
th lack of information (u ck of spare time d
nder/over nutrition) ue to changes in li 1 We contribute to health and well-being
Health and Well-being
(all living things)
festyle by utilizing our leading-edge bioscience and fine
chemical technologies which
also leads to deliciousness technologies,
and by delivering good and healthy food
•Produce good and healthy food menus with proteins and
Seasoning vegetables centered on Umami

Strong Family and Creation of

social bonds ( Frozen Beverage
spare time 2 We contribute to the development of a society
Eating together) food (smart cooking)
that enables strong family/social bonds and
Ajinomoto
Group Wa diverse lifestyles through eating well
y
Processed Integrated Food
food Solution 3 We contribute to the sustainability of the soci
ety and the earth, with our customers
and local communities, across the value chain
from production to consumption
Food tradition Healthcare Life Support
and new adv Comfortable
enture lifestyle 4 We co-create value with each region through
Food R Global Su the perspectives of the customers, with our
esources Living with t stainability global, top-class and diverse talents
he society a
• Depletion of f nd the Earth • Global warming
ood resources • Depletion of water Social issues that Values that we
• Food waste • Increase in waste we aim to resolv aim to create
e
6
Ⓒ 2008.Toro Hitotsubashi
An Example of ASV: Value Co-creation with Local Communities
(Vietnam)
Achieved further value creation through co-creation

Provided good and healthy food Contributed to the global environ

•e.g.: Provided menus centered on uma
mi that enable children to eat protein &
vegetables
(School Meal Projects)
ment through utilization of co-pr
oducts
• Supported wide range of fruits and
vegetables, such as gum trees, s
ugar cane, pineapple, and coffee

Schools and Co-creation with local communities Consumers

companies
Shared channels
Constructed sustainability cycle
•Reached to schools and oth
Government and •Provided co-products to suppliers (rub
er public facilities by collabor Local suppliers
municipalities ber cultivation, coffee beans, etc.)
ating with the Ministry of Edu
cation and local govt.

Develop social infrastructure

(raising awareness of the importance of nutritional balance)
•Launched the licensing system for nutritionist with the govt.
•Found Vietnam’s first Bachelor of Nutrition Science through an initiative
with Hanoi Medical University and the National Institute of Nutrition

41
Ⓒ 2008.Toro Hitotsubashi
ICT / Digital Transformation :
Reengineer value chains to be powered by R&D leadership

Value offering
Value chain re-engineering
enhancement

Digitalization of Customer relationships

Health & Well-being
production enhancement

Re-examine current channels

Consumer behavior Improve efficiencies of
Advanced customer segmentation and develop new channels
fermentation processes
(e-commerce, etc.)

Consumer psychology Co-creation with processed fo

Automate production plants
Reveal drivers of happiness od manufacturers and food se
on a global scale
& deliciousness rvice companies

Drive initiatives with company-wide cross-functional teams c

ollaboratively with external partners

30
Ⓒ 2008.Toro Hitotsubashi
 Japanese Best Practice④ ： Mitsubishi Chemical
“KAITEKI”

Ⓒ 2008.Toro Hitotsubashi 30
Japanse Best Practice⑤ ： Mitsui & Co
“Yoishigoto (Good Quality Work)

Shoei
Utsuda,
Chairman
Yoishigoto

Business Society

HR

Compliance

Q. How to define Yoi-Shigoto? Q. Yoi-Shigoto=CSV?

Ⓒ 2008.Toro Hitotsubashi
31
 Turning Social Issues into New Values

Ⓒ 2008.Toro Hitotsubashi 32
 Japanese Best Practice ⑥ : Nikko Asset

A difference between general SRI funds and CSV funds

- CSV is not an advanced form of SRI -

 General SRI fund  CSV fund

• Has a strong theme •Has a new profit-driven model
• Focuses on a corporate’s •Focuses on a corporate’s primary
CSR value value
• Evaluates a CSR report •Evaluates intangible value that will
• generate profit in the future
Evaluated by an external
specialized agency •Evaluated by an internal analyst

Source: Nikko am @ CSV Forum

33
Ⓒ 2008.Toro Hitotsubashi
 Value chain of key issue
Environm
ental
Widely load-
spread e- reducing
commerc technolog Measurin
e Efficie y g
technolog
nt y
Trans-
portation logisti
infra-
structure cs

Altern
Social efficiency ative Environment
Convenient ads Function
Social infrastructure energ al
Stable
financial y Energy saving material
system

Contributi
Eco-car
Eco city
Efficie on to Nursi
nt Smart city ng
emerging Streamlin
agricu home
countries’ ing
lture hospital
advancem manage Measures
ent ment to address
the
Medical
declining care for
birth rate the
Convenience store and the elderly
Employment
Drug store Energy aging
Diversity saving population
time-
shortenin Preve
g home
electronic ntativ
s e care Amus
Efficie ement
Organ
ic Prom nt Travel
oting trainin
materi g
sports
al Obesity

Support
Safety of
Living
and Poor
Fitness Spiritual Characte
space
nutriti
Healthcare women's r

security welfare business

on social
advance
ment

Support
Crash prevention Quality Resort of
Rear view camera Securit manag Proactive facility hobbies
Minimally Efficient
y ement invasive Nursery items househol
employm
Medical
technol ent of
treatment Aging d duties women
tourism
ogy

34
34
Ⓒ 2008.Toro Hitotsubashi
 Maslow`s Hierarchy

Economy Lever

Maturing Mind

Growing Geed

Emerging Fear

Ⓒ 2008.Toro Hitotsubashi 35
 How should Japanese companies make a big pivot
toward J-CSV?
— Toyota’s case —

1. Search for the next-generation (post-singularity) value proposition:

What is true abundance?
• Safety/Security  Peace of Mind
• Health  Wellness
• Connected Car  Connected People

2. Toyota n.0: What is the continuously renewing Toyota?

• Car-manufacturing (the previous market)
 Building a car-owning lifestyle and society (the actual market)
• Product Quality  Management Quality
• A car company (TMC)
 A company beyond a car (Toyota Corporation or Toyota Next)

3. TSV Declaration: What is the Toyota version CSV?

• Tangible assets  Intangible assets (skills, brand, network, human resources)
• Pyramid-style ecosystem (10%)  Rhizome-style ecosystem (100%)
• Agenda 2030 process sheet  Agenda 2050 (Next SDGs) setting

Ⓒ 2008.Toro Hitotsubashi 36
 Basic Structure of X-Management Model

• Driving power for organic and inorganic growths: for example,

MA&A and PMI.
• Ability to have everyone go ahead toward the same goal and
Management create value that surpasses the total power of each individual
• Ability to adapt to changing conditions, seeing “crisis” as “an
Transformation
opportunity” and continuing to evolve the management model

Market • Ability to build a platform that amplifies “S4 economies”

Business
Building X Develop-
ment
• Ability to build an eco system that amplifies network externalities
• Branding and marketing power that amplifies customer franchise

• On-site power in technology, production and sales

• Perpetual drive for improving QCD
Operation
• Ability to amplify intangible asset s such as “skillfulness” and
Excellence “craftsmanship”

* Economics of Scale, Scope, Skill, Speed

Ⓒ 2008.Toro Hitotsubashi
 Four types of management models
Major management models for Management models for during
during time of constant growth time of structural change
Type J Type W Type X Type Z

X X X X

12. Aisin Seiki 1. Nidec 5. Keyence

39. Daikin
Manufacturing business 20. Honda Motor Corporation Corporation
Industries
26. Shin-Etsu 8. Hoya 6. Unicharm
78. Komatsu
Chemical 17. Eisai Corporation
82. Toyota Motor
30. Canon 23. Takeda 10. Nitto Denko
Corporation
31. Daihatsu Motor Pharmaceutical Corporation
32. Calsonic Kansei Company 25. Fanuc
Corporation 45. Kyocera Corporation
42. Suzuki Motor Corporation 74. Bridgestone
Corporation 55. Nissan Motor 77. Ajinomoto
56. Nikon 68. Ricoh Company 83. Kikkoman
Corporation (Out of top 100 list) Corporation
58. Denso JT 96. Toray Industries
59. Kao 99. Yakult Honsha
(Others) 100. Shimano
7. Mitsubishi UFJ
34. Rinnai 19. Secom 27. Aeon
Non-manufacturing business Lease & Finance
Corporation 31. Yamato (Out of top 100 list)
Company
60. JGC Corporation Transport Fast Retailing
23. Toyota Tsusho
89. Tokyo Gas (Out of top 100 list)
Corporation
Ryohin Keikaku 等
71. SCSK
等
The best practices conducted in the companies
等 written in red will be introduced.

Ⓒ 2008.Toro Hitotsubashi
 X management and J-CSV
(4) CSV and corporate value
(5) CSV and sustainable
management
(6) CSV and corporate brand
Management (7) CSV and global management
Transformation (8) CSV and governance
(9) CSV and company-wide reform

(10) CSV and human resource

development
Market (3) CSV and innovation
Business
Building X Develop
-ment
(11) CSV and communication
(12) Japanese style CSV

(2) CSV and marketing

Operation (1) CSV and operational

Excellence excellence

Ⓒ 2008.Toro Hitotsubashi