2024.08.02
Talking with Group CEO Kusumi
Making Group-wide Efforts to Stay Close to Customers and Promote Technological Innovations That Solve Their Problems: Yuki Kusumi, Group CEO, Panasonic Holdings Corporation
Series:
- Group CEO
- Konosuke Matsushita
- Business Policy
How has the Panasonic Group contributed to customers and society through its technology? We spoke with Yuki Kusumi, Group CEO, about the progress the Group has made and his hopes for the future.
Recover speed that is unrivaled by any competitor and commit to a customer perspective
Technology is a key source of competitiveness for the Panasonic Group. I think technology can be roughly classified into two types. One is technology that makes possible what was not possible before. An iconic example of this type is the Pepper ultra-thin radio, which was the first to use surface-mount technology in its circuitry and was put on the market in 1977. Although I say it myself, I think another exemplar is the DIGA Blu-ray Disc recorder I worked on, released in 2007, since it enabled long hours of digital high-definition recording ahead of our competitors through the adoption of a 45-nm process system LSI.
The other type is technology that makes products and services more widely available at unprecedentedly low prices. A classic example of this is the Super Electric Iron, which was launched with a strong commitment to achieving both high quality and a low price. It was designated an outstanding Japanese-made product through repeated efforts to reduce costs. Recently, we have been working to increase cost competitiveness by leveraging our technological strengths in consumer electronics, electronic components, and automotive devices in China, which I will discuss in more detail later.
Historically and still today, businesses that have achieved unmatched market share, that is, businesses that help customers live their best, have harnessed highly competitive technologies that enable functions, performance, and prices that satisfy their customers. In particular, businesses that are overwhelmingly competitive have advanced their technologies by anticipating their customers' future problems and potential challenges. Panasonic Avionics Corporation's Astrova is a prime example. I believe the key to developing such technology is to stay close to customers' problems while working patiently and not giving up in the long run.
Meanwhile, some of the strengths that our predecessors demonstrated in developing these technologies are not being exerted today—we need to regain those strengths. In the past, we were strong enough to excel in every aspect—from R&D, design, procurement, and manufacturing to marketing—with an overwhelming speed that outpaced our competitors, even when entering the market as a latecomer. Many years have passed since then, and Chinese companies are now taking innovative initiatives. In response to these developments, Panasonic views China's cost competitiveness as a global standard and has recently been working to transform product planning and development based on customer value and lessons learned from the competition. This initiative began with our consumer electronics business in China and is now being implemented globally. We must advance these efforts through collaboration among design, procurement, and manufacturing to regain unrivaled competitiveness, including the lower costs that will enable us to compete in the global marketplace.
Another key is to focus on the customer perspective. In mature areas, we are likely to develop new features with a product-oriented approach, even while we try to anticipate our customers' needs. Instead, it is most important to stay very close to our customers and create products that really satisfy them, even if this means deciding to remove features that few users consider necessary.
Accelerate the development and use of new technologies by unlocking everyone's potential without being bound by conventional ideas, while upholding what must be upheld
Recent technological development and its spread is taking place rapidly in new areas, such as generative AI, rather than in hardware. However, technologies in these new areas sometimes entail significant risks. For example, the use of AI can raise ethical, copyright, and other compliance risks. To make our technology contribute to the well-being of society and our customers, we must identify what must be upheld, what practices, methods, and ideas are obsolete, and what systems should be broken. And then implement reforms without being bound by outdated legacies.
Throwing away preconceived ideas, unlocking the potential of each and every employee, and leveraging creativity and ingenuity to continually try and improve—this is what "Unlock," the theme of the previous issue of this Group Magazine, is all about. I believe we can truly contribute to our customers through our commitment to speed that surpasses our competitors and taking the customer perspective I discussed earlier, and by unlocking each individual's potential, as I just mentioned.
Break out of the shell that surrounds you, while understanding basic principles, and become world-leading engineers
Message of encouragement to all young engineers, including those in the Panasonic Group
As an engineer myself, I would like to make two key points.
First, I want those of you, young engineers, to understand the principles, or the foundation and essence, of the field in which you work. For example, when using AI, as I mentioned earlier, if you do not understand the basics of software and programming—such as how programs are constructed, how they are coded, or what kind of processing is going on—you will not be able to identify the cause of a problem or explain what's going on. If you ignore these principles and do not have a deep understanding of the technology you're using, your ability to solve your customers' problems will be weak. If you do not know the basics, you will not be able to apply the technology to a specific purpose or know how to adapt to new technologies. I hope you gain a deep understanding of the principles of your field while you are young, master the technology of your field, and become a world-class or even world-leading engineer.
The other key point is to look outward. Most technological innovations result from the combination of different existing technologies or the adoption of a technological approach from another field. The Panasonic Group, which is over 100 years old, has accumulated a variety of technologies that are constantly evolving. At the same time, many of our business partners are also advancing their technologies. This means that the possibilities for innovation are unlimited when we combine these technologies. Nevertheless, you must always objectively and rigorously evaluate your technology, question whether it is truly world-leading, and keep an eye out for emerging technologies that could potentially replace yours.
Therefore, I would like all of you engineers to break out of your shells and eagerly look at your surroundings and the outside world, instead of confining yourself to your own R&D activities. That said, it is obviously important to put the customers first, those who will choose the products and solutions that use your technology.
By encouraging our engineers to perform to their fullest, I hope to make the Panasonic Group a company that can create many innovations that bring smiles to our customers.
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