Lean Startups in Japanese companies

1. Lean Startup @Enterprise in Japan
LEAN STARTUP CONFERENCE 2015
TAKASHI TSUTSUMI
MASATO IINO

2. We talk about our story to introduce
Lean Startup into Japan enterprise

3. Characteristics of Japan Enterprises
Technology
Centric
Quality
Obsession
Weak
Leadership
NOTE: The photos here are NOT related to our views described in this presentation.

4. Japan = Mother of Lean Manufacturing
Conventional Assembly Line
Single Skilled Workers
→ Efficient in Mass-Production
Conveyor Belt
Just-In-Time Manufacturing
(a.k.a. Lean Manufacturing)
A Group of Multi-Skilled Workers
→ Flexible in Small Lot Production
Production Cell

5. Conventional Assembly Line
Conveyor Belt
Just-In-Time Manufacturing
(a.k.a. Lean Manufacturing)
Production Cell
Lean Manufacturing to Lean Startup
Conventional Execution Lean Startup
Vertically Divided
Organization
Lean Acceleration
Cell
Manufacturing
New Business Creation

6. Lean Manufacturing to Lean Startup
Conventional Assembly Line
Conveyor Belt
Just-In-Time Manufacturing
(a.k.a. Lean Manufacturing)
Production Cell
Conventional Execution
Vertically Divided
Organization
Not Quite
There!

7. Challenge for Lean Startup @Enterprise
Technology
Centric
Quality
Obsession
Weak
Leadership
Mother of Lean Manufacturing is NOT necessarily good at
eliminating a waste of new business creation ;-(
Neglecting
Customers
Silo Mentality
Reluctance for
Change
Procedure Maniac
No Customer
Interviews
Lack of Total
Optimization
Lean Startup
Non-forcible
Lack of Flexibility
Innovation
Accounting
Cell Production
Special District
Approach
Trait Phenomena Challenge Solution

8. Enterprise Bottleneck = MVP
sales
Quality
Lega
l
Brands
Never touch the
sensitive relationship!
Don’t even think about
selling products without
quality tests!
Compliance. Product
Liability. Recall. What
can U do???
No way to sell stuff
potentially damaging
our brands!!
Design
Soft-
ware
Produ
ction
HR
Need enough time to
scrutinize the design
and UI, say, 1 year?
We’ll need enough detail
to allocate resource.
Agile? No!
Cost/Quality/Delivery
management with mass
production is our rule.
You can’t allocate more
than 20% of your time
for new Business
Creation.

9. Spilling Out from HQ to Divisions
Top
management
sponsored
LEANzone
withinHQ
Change entire organization by
strong top-down leadership
Setup a limited LEAN Special
District in an organization
VS.

10. Step1: Start from Lean Special District
Lean Startup Accelerator Department
reporting to CEO committing to ship MVP
LSAD to be detached from existing BU’s
– “New Product ☓ New Market” in Ansof Matrix
Introduced for Innovation Accounting
Lean Startup
Non-Forcible

11. Innovation Accounting
 How many customers did you talk to?
 Who are your early adaptors?
 What did you learn? Any validated learning?
 Did you build & test business model?
 Scalable?
 Do you have entry barriers incorporated into business model?
 Did you figure out the metrics that matters?
No Customer
Interviews

12. Early Success in Cloud Funding happened

13. Step2: Involve Early Adaptors from
“Defense Departments”
 LSAD’s small success case attracts early
adaptors in “Defense Departments”
– Quality Assurance, Branding, Legal, Accounting
 Train them on Lean Startup Training Program
– The professionals from defense departments
were forced to talk to early adaptors(EA) and then
understood how EA think and behave.

14. LSAD and Early adaptors in defense
department created “Lean Enterprise Cell”
for Lean Startup”
Step3: Lean Enterprise Cell
Delegated Small Unit in LSAD
supported by Lean Defense Team
No Total Optimization No Flexibility
Quality Legal
Account
-ing
LSAD

15. Lean
Enterprise
Cell
Minimum
Viable
Legal/Acco
unting
Minimum
Viable
Branding
Minimu
m Viable
Quality
More Success Cases
Lean Enterprise Cell
for Minimum Viable Philosophy

16. Step4: Spill Over to Existing BU
Some more success attracted Existing BU
for Lean
Train them by Lean Startup Training
Expecting More New Business Creations
On Lean Manner At Many Existing BU’s

17. Top
management
sponsored
LEANzone
withinHQ
Change entire organization by
strong top-down leadership
Setup a limited LEAN District
with in an organization
VS.
Step4: Spill Over to Existing BU

18. Lean Intra-preneurs
Potential Lean Intra-preneurs
Reserve Intra-preneurs
©youthdebates.org
Elementary Training
on Lean Startup
• BMC only
• Lean Number Planning
• Pitch Training
Step4: Spill Over to Existing BU

19. End of Presentation
Help us improving our program!
Join us by the bar where we offer a very
good Japanese Sake! ;-)
Contact:
Learning Entrepreneur’s Lab
TAKASHI TSUTSUMI
MASATO IINO
email: info@le-lab.jp
Web: http://le-lab.jp