How Japan Can Compete: - Executing the Ambidexterity Strategy and Managing

Finally, “5G” is the new communication technology base needed to accommodate this vast amount of data exchange at tremendous speed, and the “cloud” is the equipment that can store, scrape and analyze all the information that can now be gathered through the new sensors and connected systems. [...] Industry 4.0: The Disruption of the Production Automation Pyramid The question for Japan’s leading manufacturing companies is how to be players in the Industry 4.0 manufacturing process technologies, and how to transition to the “digital monozukuri” world. [...] The goal is to create the industry standard in edge-computing manufacturing platforms, by being first to market and creating network effects: the more users, the higher the utility. [...] The Framework: Managing 3 Business Horizons at Once Ambidexterity is now a very popular framework in Japan, because it addresses precisely this challenge of preparing for the future while maintaining to run the current core business.10 In the ambidexterity model, the different life cycles of the businesses in the 4 boxes are referred to as three “horizons”. [...] As we will see below, the reason is that the execution of the dual strategy means changing the corporate culture of the entire company, toward more openness for coexistence and co-creation.