In the field of DX in manufacturing, many project leaders face daily obstacles and struggles.
Macnica, we have consistently supported those working hard for their organizations. Based on that experience, this series will categorize DX promotion leaders into three types and explain their common mistakes and solutions.
We hope this series will provide some helpful hints for those of you struggling with DX (Digital Transformation) initiatives, helping you to move forward again. (This is the third article in a three-part series.)
Three types of leaders promoting DX in the manufacturing industry
In the previous article, we categorized leaders promoting DX in the manufacturing industry as follows, and asked Mr. Abe, Deputy General Manager of the Digital Industry Business Division, who has been supporting DX in the manufacturing industry for many years, about "solutions to common failures and key points for providing support" for each type.
This article introduces Mendix and the 5 Ps of DX know-how, which are powerful tools for each type of leader to achieve results.
Further details about Mendix can be found below.
Mendix, a low-code development platform.
Why Mendix, a weapon for manufacturing DX, is effective for three types of leaders
The strengths of the business unit (Type A): Agile speed and secure collaboration
—So, let's get straight to the point: Could you tell us why Mendix is a good choice for Type A (leaders in cases where business units take the lead in promoting DX) to achieve results?
Abe: For Type A, there are two main advantages to introducing Mendix.
The first advantage is the ability to have an agile development system that allows even non-IT personnel on the ground to quickly release services and make corrections on the spot. Low-code not only shortens development time, but also allows for immediate incorporation of feedback from the field, thus avoiding the biggest risk in system development: "it's built, but it's not used in the field."
Furthermore, it's possible to grow the system in-house to match business changes, without the time lag associated with outsourcing.
The second advantage is that it can go beyond simply streamlining internal operations and can even be used to build production services for external use in collaboration with customers and partners. Other low-code tools are mainly suited for creating desktop applications for internal use, but they often have security and quality issues when it comes to external business use.
In this respect, Mendix's parent company, Siemens, guarantees security and SLAs (Service Level Agreements), so even in critical areas including personal information and business partner collaboration, business units can confidently proceed with service provision under their own responsibility.
In short, its greatest strength lies in the fact that it's not just a tool for improving operational efficiency, but it allows you to take the lead in creating business systems that involve customers and business partners.
The weapons of the IT department (Type B): Control and scalability to prevent shadow IT.
—Next, please explain why Mendix is a good choice for Type B (the leader in the IT/information systems department who is driving DX) to achieve results.
Abe: The advantages of Type B are enhanced control and scalability through improved governance and visibility.
First, it prevents the black Box of systems and shadow IT, which are major concerns in field-led and citizen-led development. Because who develops what and how much it is used can be centrally managed on the platform, the IT department can maintain its function as a control tower.
Because usage frequency and effectiveness (e.g., 3 minutes saved x 10,000 times = 30,000 minutes of effectiveness) can be visualized numerically, the return on investment can be clearly explained. In addition, it is easy to scrap and build unused apps, which prevents system asset bloat and helps maintain a healthy state.
The second advantage is that data integration with existing systems can be easily performed as a standard feature. There is no need to individually develop complex integration programs, and it can be securely connected to existing core systems and databases.
This offers a major advantage: it allows you to leverage existing IT assets while preventing complexity and efficiently building and maintaining a highly scalable system environment.
The DX Department (Type C)'s strengths: A common language and know-how that connects business and IT.
— Please explain why Mendix is a good choice for Type C (leaders in cases where the DX Promotion Department/Management Planning Department is driving DX) to achieve results.
Abe: The advantage of Type C is that it can be a powerful tool for bridging the gap between the business and IT departments.
One of the distinguishing features of Mendix is that it's not just a development tool, but rather a collaborative process designed to help both departments work together to achieve results.
The role of Type C is to involve both departments, but Mendix can reconcile the demands of the business side, which prioritizes speed, and the IT side, which prioritizes control, on a single platform. This allows it to function as a common language that connects the two often conflicting parties, enabling smooth collaboration.
Another advantage is that it comes with the know-how necessary to ensure project success (however, this service is exclusive to Macnica). It 's not just a simple "you can build it with low code" feature; it includes guidelines for promoting DX projects, such as "what kind of team structure is appropriate" and "what should be considered and when in preparation for DX."
In other words, the fact that simply by introducing the tool, you can simultaneously acquire the"best practices for success"that consultants would normally provide is of great value to project leaders.
Macnica unique approach to Mendix implementation and development support.
The biggest difference is the "purpose" being aimed for.
— I believe one of Macnica 's strengths is that it can provide not only Mendix, a powerful tool for DX promotion leaders, but also "best practices for successful DX." Could you please explain again why Macnica is a good choice for Mendix implementation and development support?
Abe: I think there are two main points.
The first point is that our goal is not simply to deliver the system, but to ensure that the customer can use it effectively themselves, in other words, to enable them to develop it in-house.
Generally, tool implementation and development support tends to focus solely on "delivering" the product. However, our true objective is to empower our clients to acquire the ability to transform their businesses with speed and flexibility, even after we are no longer involved—in other words, to develop "dynamic capabilities" (the ability to transform businesses).
Of course, we don't hand everything over to you from the start. We provide flexible support, taking the lead in development initially and gradually transferring skills, depending on your resources.
In short, its greatest feature is a support style that is based on the premise of fostering self-reliance rather than dependence.
The second advantage is that we can provide not only development technology, but also support for setting up organizations that implement IT, including installing the organization's operating system, which serves as a criterion for deciding on IT utilization.
Mendix is merely one tool among many. What's truly important is that customers have criteria for selecting technologies, such as "which tasks should use Mendix, and where should SaaS or custom development be applied?"
For example, in the development process, instead of taking an extreme stance like "making everything agile," we also formulate procedures such as "how to use a solid waterfall model in conjunction with agile development."
Furthermore, in order to continue advancing DX, it is essential to build an organization with the necessary mechanisms. We offer a service called Digital Execution Factory, which provides "CoE (Center of Excellence) organizations" and "the establishment of the system itself."
These know-hows are methodologies practiced by Siemens, Mendix, and other successful overseas DX companies, which we ourselves have tried and optimized for the Japanese market. Our ability to provide this know-how and knowledge is a major strength.
You can find more detailed information about Digital Execution Factory in this article.
The world has tested it, and Macnica has refined it: "What is the Japanese-style manufacturing DX that transforms organizations?" ~A system that overcomes division, conflict, and instability, and makes DX a part of the culture~
Filling the gaps in leaders' understanding with the "5Ps," best practices for manufacturing DX.
The Digital Execution Factory service mentioned earlier is based on the 5P framework, which systematizes best practices for manufacturing DX.
This chapter will detail the 5Ps and explain how they can support each leader.
The 5Ps are essentially a systematization of the essential elements for successful digital transformation (DX).
— First of all, could you please explain what 5P stands for?
Abe: 5P is a framework for promoting DX in the manufacturing industry, which systematizes the five essential elements for successful DX.
Originally based on global standard methodologies advocated by Siemens and Mendix, we have optimized them to suit the culture and business practices of Japanese companies through our own practical experience.
The 5Ps define five elements—People, Portfolio, Process, Platform, and Promotion—that, if even one is missing, will make it difficult to achieve results in digital transformation (DX). The acronym "5P" comes from the first letter of each element.
| 5P elements | Overview |
|---|---|
| People | The necessary personnel profile and team structure for executing agile projects that integrate business and IT. |
| Portfolio | Clearly define what you want to do and why, and list and prioritize your application ideas. |
| Process | Business and development processes and governance for rapidly releasing ideas and updating them while using them. |
| Platform | A common IT platform for collaboratively developing new services between business and IT departments. |
| Promotion | Maintaining team motivation and promoting cultural change through internal and external communication and education |
One of the values of the 5Ps is the visualization and navigation of the current position in DX promotion. In DX projects, there are many cases where projects proceed without a standard of "what level we are at now" or "what we should do next," and end up getting lost.
Furthermore, these five elements are interconnected, and the project will fail if even one of them is missing.
Therefore, we use these five axes to objectively diagnose the maturity level of an organization, and as a navigator, we present the"correct current position"and the"next goal to aim for,"and as a partner to our clients, we walk alongside them in their DX (Digital Transformation) journey.
Type A includes "Process/Platform"
—So, specifically, how will each of the 5Ps support each of the leaders?
Abe: First, Type A companies have an abundance of business ideas, or "Portfolios," but they lack the "Processes"—the procedures for turning those ideas into systems—and the "Platforms"—the foundations for ensuring security.
Therefore, we provide a standardized development process and a foundation that allows them to continue developing apps, ensuring their passion doesn't end up being just a simple tool.
This allows you to transform your ideas into business services that can be fully utilized both inside and outside the company.
Type B is "Portfolio"
—So, what about Type B?
Abe: Type B excels at establishing operational rules ("Process") and infrastructure ("Platform"), but they need support in planning their "Portfolio"—what they can create on that solid foundation to contribute to the business.
Type B employees, who are busy with daily operations and adjustments, find it difficult to take proactive steps towards DX (Digital Transformation). Therefore, we create opportunities for dialogue by presenting success stories from other companies and facilitating workshops with business departments.
We support IT departments in leveraging their inherent high level of technical expertise not just for passive management, but also to propose development themes with high ROI.
Type C has "Promotion"
—So, what about Type C?
Abe: For Type C, the most important thing is "Promotion."
Without the sales figures of a business unit or the system authority of an IT department, they are constantly questioned within the company about the legitimacy of their leadership roles.
Therefore, it is essential to go beyond mere public relations activities and gain acceptance within the organization through message dissemination involving management and visualization of results, thereby increasing the cohesive force that breaks down departmental barriers.
We support this internal marketing with "Promotion," which allows for systematic implementation.
"People" is lacking in all types.
— Is there a "P" that is missing from all types?
Abe:What is absolutely lacking in all types of companies is "People," or human resources.
No matter how excellent the strategy or foundation, it is ultimately people who keep it running. To move beyond relying on external vendors and empower your own employees to drive change, this approach to people—that is, development—is crucial.
At Macnica, we support our customers' people not only through services to cultivate personnel capable of driving DX within their companies, but also by generously sharing our expertise and providing emotional support as a partner.
"Promotion" is important, but often overlooked.
— In practical support, are there any "P"s that leaders tend to overlook but are actually very effective?
Abe:It's a promotion.
The four areas of People, Portfolio, Process, and Platform receive more budget and time because their necessity is easier to understand logically.
However, promotions are often viewed as mere internal communications or announcements, and are given a lower priority. But no matter how excellent a system is, if it doesn't resonate with the people who use it or are involved, the project will not take hold and will end in failure.
To move people's hearts, we will carry out activities such as the following:
| Promotional measures | Overview |
|---|---|
| Clarifying the vision | The "why" behind the action should be articulated and linked to the business objectives. |
| Quantifying Value (ROI) | Instead of reporting on features like "We created 10 apps," they speak in terms of business value, such as "We reduced man-hours by 120 hours per year." |
| Stakeholder management | Draw a map of internal politics, identify supporters (champions) and opponents (detractors), and approach them individually. |
| Community building | Create opportunities for on-site staff to boast about their achievements, fostering trust through horizontal connections (word-of-mouth) rather than top-down directives. |
| Celebrating success | Even small successes (quick wins) are celebrated enthusiastically to foster a sense of team unity. |
To create an effective promotion campaign, it's necessary to design it from a broad perspective, including the measures mentioned above, to resonate with both employees and management, and to consider the ripple effects on media outreach and recruitment.
Macnica has a 50-year history as a marketing company that has successfully introduced unknown overseas products into the Japanese market and earned trust. Leveraging the know-how cultivated here to move people's hearts, we act as a strategic partner to foster and spread the momentum for our clients' digital transformation, working together with them to plan and support the execution of promotions.
To the leaders fighting in the manufacturing DX
Avoiding failure is important, but so is accepting of failure.
In this article, we have introduced examples of failures and solutions for each type of leader.
Finally, Abe says that even if things go wrong, "accepting failure" is also a very important mindset for a DX promotion leader.
Abe:For DX promotion leaders, it's important to have a mindset of "moving forward while accepting failure" rather than trying to completely eliminate risks.
Globally, the trend is that in the highly uncertain world of digital transformation (DX), an approach that involves making adjustments through small failures during the execution phase, rather than spending too much time on planning, is considered closer to the right answer. Furthermore, it is through experiencing numerous failures that one develops the ability to discern the essence of things.
Preparing for failure is, of course, important. However, it's equally important to "accept failure and learn from it." I believe these two aspects are the key to successfully navigating long and challenging DX projects.
solution
Digital Execution Factory: Making DX a part of organizational culture in the manufacturing industry
At Macnica, we provide manufacturing DX support services that work as a partner, helping each leader overcome setbacks by tailoring our services to their individual strengths and weaknesses.
Specifically, we provide "Digital Execution Factory," which helps to make DX a part of your organizational culture, through the following support:
- Strengthening governance systems that involve the entire company
- Accompanying the CoE, which spans business and IT departments, from concept design to launch and establishment
- A training program for specialists who can lead DX promotion on-site
- Development support using Mendix, a low-code development platform that allows you to gain small successes through agile development
Such
"Digital Execution Factory" is a know-how that only Macnica can provide in Japan, which has been optimized for the Japanese manufacturing industry based on practical knowledge established in Europe and the United States, where DX is advanced. We will accompany our customers, aiming to create a state in which the optimal DX for each customer is "spontaneously and continuously created."