Customer-first service of global company will remain unchanged

The birth of the Trump administration in the United States, the United Kingdom's withdrawal from the European Union (Brexit), immigration restrictions in Europe and the United States ... . Thirty years after the fall of the Berlin Wall in 1989, these recent events make us wonder whether the accelerating globalization of the world economy is entering a new phase. However, globalization has completely transformed the way that companies operating across borders conduct business, and there is now no going back.

Today, literally the entire globe is connected as a single market. Nevertheless, different regions have strong ties with different languages, cultures, religions and so forth, and the extent of their economic development is by no means equal. For this reason, companies operating in the global market have been expected to build systems that would be able respond to more diverse needs. Product preferences also differ in individual countries or regions. And when it comes to service, what consumers attach importance to varies even more.

Under these circumstances, it is necessary to devise various ways of achieving customer satisfaction globally and without bias. The current fruits of technological innovation, called the Fourth Industrial Revolution, can be applied everywhere. First, within the so-called digitization movement, information regarding products and services supplied such as what, when, where, and how, can be quickly grasped. The accumulation of such data will enable us to make more accurate future projections using artificial intelligence (AI). We have already developed infrastructure that enables the smooth physical movement of products and personnel, so we can further improve customer satisfaction based on those forecasts, at the same time optimizing the cost of transportation and inventory.

Further, populations are aging, especially in developed countries, and for some types of work the shortage of labor is gradually becoming more acute. In contrast, the practical application of robotic technology has not only made automation possible but is also enabling humans and robots to work together. On the other hand, with rising income levels, the needs of customers have changed from simply purchasing products to services offered through those products. However, there are many cases where it is not necessarily easy for those needs to be met by one company. In such cases, multiple global companies can collaborate to respond to those needs, both geographically and in terms of content. The development of information and communications technologies has greatly reduced the cost of such collaboration.

Recently, I had the opportunity to attend the global conference of executives responsible for internal supply chain management. It was very informative concerning the application of these new technologies and various initiatives being taken in the diversifying global market. Of course, globalization may slow down for a time. However, Japanese companies that have already opened the door to globalization have no choice but to be informed about the diversity of the global market, learn from each other, and deliver customer-first service globally. That will not change.