The Casio business model ...
Posted: Mon Nov 03, 2008 12:08 am
Some examples:
http://money.cnn.com/magazines/business ... /index.htm
- "If you just focus on consumer needs", Kazuo says now, "you can't make great products".
- Failure is reversible. "You can lose a battle", Kazuo says, "and still win the war".
- Kazuo has built an organization that shuns consumer research the way real men once avoided quiche. "To keep competitors from grabbing our profits", he says, "we have to make things that are uniquely Casio".
- Kazuo has instilled that attitude throughout his ranks. Jin Nakayama, manager of Casio's digital camera unit, [...] did no market research before embarking on the project to build an ultrathin camera. "We don't usually base new products on consumer surveys", he says. "We draw on technology to show the market what's possible".
- When he introduced the Exilim S1 in June 2002, Nakayama skimped on the features that consumers generally deem most important in a digital camera. But without surveys or focus groups, Nakayama had decided that if he could make a camera thin enough, people might switch from thinking about digicams as family items to thinking about them as personal gear.
- Still, Nakayama acknowledges the downside to Casio's approach. "We sure do fail a lot", he says, almost with an air of pride. Often that means bringing products to market before their time, which is what happened with Casio's first foray into digital cameras.
- But at Casio, avoiding screwups isn't a high priority. The Japanese expression kishikaisei means finding a way to thrive in the face of almost certain death. At every Casio operation I visit, there's a kishikaisei story in which success rises from the ashes of some failed attempt to innovate.
- I ask Yuichi Masuda, general manager of Casio's watch division, if a few old-fashioned focus groups might have prevented not only the QV-10 digital camera disaster, but also his own area's recent (2003) duds, like the digital camera watch, the MP3 watch, and the GPS watch. He reacts as if I've suggested dipping sushi into ketchup.
- At the leading edge, he (Masuda) says, consumers can't provide much guidance. "If you asked people 10 years ago if they needed e-mail, would they have said yes?"
- Nobody likes to mess up. But at Casio --and everywhere else-- what looks like failure can sometimes be a step in the right direction.
http://money.cnn.com/magazines/business ... /index.htm




