Accomplishments and Open Issues from the Previous Medium-Term Management Plan
Many research and development projects were implemented during the previous medium-term management plan. One major accomplishment from such projects is the Autonomous Lab being developed in joint research with Kobe University. Due to enthusiastic interest from a company that saw the prototype, a system was delivered to that customer on a special-order basis, and Shimadzu has been developing applications and making improvements based on feedback from that customer. That project is a perfect example of the “agile” type of development Shimadzu has been trying to implement and expand. New product development requires making product refinements based on feedback from a customer that actually tries the product, but waiting until product specifications are solidly defined makes it difficult to make changes quickly. It feels like we achieved a successful accomplishment from efforts to promote agile development.
In terms of laying the foundation for research and development, we successfully completed the “SHIMADZU Future Collaboratory,” “Shimadzu Tokyo Innovation Plaza,” and “KYOLABS” facilities to provide locations for open innovation. Now our mission will be to somehow generate open innovation results from utilizing those facilities. We also were able to sign comprehensive partnership agreements with many outside organizations. For example, with academic institutions such as Kyoto University, Nagasaki University, and Osaka University, we were able to lay the groundwork for not only technical cooperation but also cooperation in training human resources.
Meanwhile, one challenge has been development delays. Though the COVID-19 pandemic was a significant factor, we experienced frequent delays in bringing new products to market. Another issue is that the scope of R&D projects has been skewed toward the healthcare domain. Therefore, we feel development needs to be strengthened for non-healthcare applications specified in the new medium-term management plan, such as “green” innovation, materials, and industry. Furthermore, we feel partnerships with organizations outside Japan should have been promoted more.
Vision for the New Medium-Term Management Plan
Essentially, the vision is to “create a new platform for researching and developing technology.” First, the plan will build a platform for agile development to address development delays, which have been a problem. The new medium-term management plan will also deploy DX measures, such as digital twin and metaverse technologies, in research and development, in an effort to create a foundation for streamlining operations, ensuring the succession of technical skills, and accumulating data. We will promote automating the typically manual processes involved in prototype design verification to eliminate waste.
We will also establish development capabilities globally. Rather than sending someone from Japan to investigate market needs outside Japan for development in Japan, we will establish local development centers that can quickly commercialize products based on local needs. In terms of regions, we will first establish an R&D center in North America. In India, we will strengthen operations for finding pharmaceutical needs in particular and developing hardware, software applications, and other products designed to satisfy those needs.
Creating New Businesses in Partnership with Startup Companies
During the previous medium-term management plan, the Startup Incubation Center was established in October 2020. Three products were released, but two of those involved medical device regulations, so in fact we struggled to apply the agile development approach. The new medium-term management plan will address the development delay problems during the previous medium-term management plan by using the agile model for basic development and the waterfall* model thereafter, for example.
In terms of corporate venture capital investments, we work in cooperation with Global Brain, an independent venture capital firm, to support startup ventures and obtain strategic returns that lead to growth of Shimadzu products/services or starting new Shimadzu businesses. In addition to businesses, we also aim to develop human resources and future management personnel that can lead innovation. Investing in startups is often considered challenging to achieve success, but we believe that by creating a well-balanced investment portfolio, we can achieve overall positive returns.
- * Development approach that completes each development step, one at a time, before moving on to the next step.
Long-Term Vision
In the long term, we intend to create solutions that use AI to combine a variety of data analysis modalities, rather than analyze samples separately for different analytical instruments, such as LC, MS, UV, or GC systems. If that can be achieved, we will be able to offer the ultimate in “End-to-End solutions.” It may take time to realize, but we intend to implement a variety of measures aimed at achieving that vision. First, we will achieve and start offering Autonomous Lab systems that use AI and robotics technologies to increase laboratory efficiency and reproducibility.
Of course, we will also continue research for the five target fields (advanced analysis, AI, innovative manufacturing, innovative biotechnology, and the brain/five senses) and offer products and services that solve challenges in society.
Nurturing a Culture of Innovation
As the CTO, what I sense are the changes occurring at Shimadzu. Though we are making some progress in terms of creating new businesses and agile development, we have not reached the point where innovation is taken for granted. Hopefully, we can foster a culture of innovation where taking on risks in order to generate innovation is a routine matter.
For existing businesses, the product development process must be implemented based on reliable plans for each phase from product planning to development, manufacturing, sales, and service. For new businesses, however, I want to change that to a completely different product development process by boldly taking on a large number of challenges with a sense of adventure and willingness to fail. Therefore, we will introduce a new innovation management system (IMS) that will serve as the foundation for fostering a culture of innovation. The IMS is designed to enable even large companies to do what startup companies do normally. By actively using this type of platform, we intend to build the foundation for promoting the development of new businesses and new technologies.
I also intend to change the way we train personnel. For example, I want to create an environment where employees proactively propose projects, rather than simply working on projects assigned to them by a supervising manager, or where strong-willed employees can gather to exchange views. That may result in various friction between participants, but hopefully it will encourage people to boldly try projects that will lead to future businesses, rather than keeping their ideas suppressed.
Becoming the CTO has increased my opportunities to talk with other CTOs. It seems they are all worried about the same things, such as “How can we promote innovation” and “How should we train human resources, increase the motivation of younger employees, and ensure the succession of technical skills.” However, some issues have already been solved by advanced companies. Consequently, I say "look outside the company for solutions.” I think proactively maintaining many contacts outside the company, rather than being cooped up, will lead to the first step toward fostering a culture of innovation.
Right now, Shimadzu is definitely changing. Ensuring the changes take hold is the function of the new medium-term management plan and my job. You can count on Shimadzu to continue contributing to society through science, technology, and innovation in the future as well.
Biography of Hiroto Itoi, Managing Executive Officer, CTO
| Apr. 1984 | Joined Shimadzu Corporation | |
| Jun. 1996 | Research & Development Department, Analytical Instruments Division | |
| Apr. 2001 | General Manager, MS/GC Business Unit, Analytical Instruments Division | |
| Jun. 2011 | General Manager, MS Business Unit, Life Science Business Department, Analytical & Measuring Instruments Division | |
| Jun. 2017 | Deputy General Manager, Analytical & Measuring Instruments Division and concurrently General Manager, Life Science Business Department | |
| Apr. 2018 | Corporate Officer, Deputy General Manager, Analytical & Measuring Instruments Division and concurrently General Manager, Life Science Business Department | |
| Apr. 2020 | Corporate Officer, General Manager, Technology Research Laboratory | |
| Apr. 2022 | Managing Executive Officer, CTO (current) |
