“Better Systems, Better World.”
1. “Better Systems, Better World.”
Since the first day of the company’s establishment, I have consistently followed the vision that says “Better Systems, Better World”. This statement was set by me just as I stepped in, and has remained unchanged ever since.
Reflecting back to the time of my first encounter in the elementary school, internet and I have always been together. After I made my way to a career, working with different companies made me realize that there was still a major chunk of society that relied on inefficient ways to function.
I grew up having internet as a major part of my life. I personally believe that with the introduction of the internet to the old economy and with the creation of new business habits, our lives will become much more convenient and the society will become much more productive. This belief was turned into what I now call the vision for my business.
2. Convergence of Legacy Industry and the Internet
Our key industries have the characteristics which include “BtoB”, “Oligopolistic” and “Fragmented small players”. As compared to the BtoC, there are a number of inefficiencies in the BtoB service model such as the multi-layered subcontracting structure and the analog ways of communication and management.
On the other hand, due to the complex structure of the industry, the barriers to entry are high and this results in stagnate industry due to lack of innovation. We aim to reach to such industries and create value for both the demand and the supply side via a “legacy industry × internet” model.
3. Demand Reform
With the help of our printing EC business, we were able to make small-lot printing orders possible. The average value per each order is about 10,000 JPY. The left-out customer by the model of traditional sales-oriented printing business is crucial to us. By bringing internet to the printing industry, we are now able to provide well-equipped printing services to business ranging from small to medium, who were deprived of the benefits of using commercial printing until now.
Moving on, the recent challenge that we are encountering is to turn the on-demand logistics into a living reality. Hacobell enables the drivers to reach an online platform through their smartphones, where we can have access to the real-time availability of the drivers. Orders details can be shared even at the eleventh hour or the last minute delivery orders with all the drivers, and with the drivers who are available at that moment to respond quickly. As for the customers, they can order the exact volume at the exact time to fulfill their delivery needs and reducing unnecessary waste.
4. Supply Reform
Breakdown of subcontract structure- Making use of idle time
With respect to the legacy industries, service providers who receive customer orders are not always able to provide services in a direct manner and hence, they outsource these tasks to the subcontractors who may also be dependent on the succeeding layers of the subcontractors. We divide this multi-layered structure by developing an internet platform where customers can reach out the service providers. This reduces the number of layers that have no value.
When services are provided efficiently through the platform, idle capacity can be used effectively by these service providers. Even though, the profitability of the equipment industry is determined by the rate of utilization, the utilization rate in the market which is oversupplied is not high. The transportation industry also faces the same issue of not having sufficient drivers, and the demand for the services may vary according to the seasons. Also, there may be time slots during the day when the drivers seem to be idle. Nevertheless, by making use of our online platform, we can increase the overall utilization rate by allocating work to the capacity that is left idle.
5. Endless Opportunities
Many industries are still following the old traditional methods of doing a business. However, I strongly believe that soon, large industries will experience revolutionary changes, having their services and value chain revamp by the internet.
By merging the industries of the 20th century to the ones of the 21st century, we can significantly improve their productivity. The convenience provided by new services and innovation will strengthen the economy. We want to remain active in bringing a social change and contributing to the revolution of the legacy industries in Japan and across the rest of the world.
Founder & CEO