Organizational Capabilities for Innovation
The Kirin Group’s Value Creation Model
Throughout its management, the Kirin Group has integrated the model of creating shared value (CSV), a business concept first introduced by Michael E. Porter.
Accordingly, it is driving innovations through its marketing expertise, leading-edge technologies, advanced information and communications technology (ICT), diverse human resources and motivated workplaces. By leveraging these competitive advantages, the Group is expanding its alcoholic and non-alcoholic beverages businesses, pharmaceuticals businesses, and businesses bridging pharmaceuticals and food & beverages. Through products and services offered by each of these businesses, the Group is bringing economic and social value to people around the world. Looking ahead toward its next stage of growth, the Group plans to bolster its innovation drivers even more so that it can continue creating value and growing sustainably into the future.
Innovation for sustainable growth
The Kirin Group sees innovation as the key to sustainable growth and seeks to generate innovation by strengthening its four fundamental organizational capabilities (INPUT) of “consumer-centric marketing expertise,” “technology creating trusted value,” “ICT accelerating value creation,” and “diversity and inclusion, culture for innovation.”
1. Consumer centric marketing
Leveraging the competitive advantage of in-depth understanding of society and consumers
Brand is one of the most important value connecting products and services to consumers. In order to enable sustainable growth, it is necessary to maintain and improve brand equity.
By carrying out operations from the marketing department and all departments with a marketing perspective, the Kirin Group will enhance marketing expertise throughout the company.
Initiatives of Kirin Brewery
One of the strategy pillars of Kirin Brewery is “Build a strong brand portfolio in the existing business.”
By narrowing down the brands for investment and maximizing the marketing effectiveness, Kirin Brewery fosters existing brands from a long-term perspective so that consumers will support the brands in 10 years or more without relying only on launch of new brands.
2. Technology creating trusted value
Strengthening the Group’s R&D capability that bridges pharmaceuticals and food & beverages
The Kirin Group will continue working to strengthen R&D, which is the basis of manufacturing. To create new products and services the Kirin Group has embraced open innovation from outside the Group in addition to knowledge and technology it has accumulated by itself.
Utilizing technology in “businesses bridging pharmaceuticals and food & beverages”
In “businesses bridging pharmaceuticals and food & beverages,” which shall be the growth drivers for future, Kirin will combine its unique evidence-backed ingredients and competitive technological capabilities with open innovation.
In the fields of Plant “smart cells” leveraging plant bio technology, for example, Kirin will work on developing and manufacturing pharmaceutical related materials by partnering with universities and venture companies.0
3. ICT accelerating value creation
Strengthening digital platforms that will lead to competitive advantages
To achieve one to one communication, Kirin has started such initiatives as ROI analysis by brand, cross-media communication, and e-commerce infrastructure for new businesses, etc.
Also, by evolving our common data platform linked with external data sources, Kirin continues improving the quality of marketing data and accelerating establishment of data analysis system and advanced security measures, etc.
Introduction of AI at sales sites
In addition to strengthening digital platforms, Kirin has begun to introduce the latest AI to sales and manufacturing sites.
Kirin Brewery has tried to enhance the quality of sales operations and reduce working time by using AI for analysis of in-store merchandising.
4. Diversity and inclusion, culture for innovation
Realizing innovations through the combination of diversed values, ways of thinking, skills and experience
The Group is confident that diversity will be a driver of its efforts to create value in business domains spanning from food and beverages to pharmaceuticals, and to become a global leader in CSV. The Group aims to generate new value and innovations by encouraging open dialogue while accepting internal differences like one’s values, sensitivities, and experience, as well as external characteristics such as gender, nationality, and whether one is abled or disabled.
Training program to promote an understanding of diverse working style
Five female employees who did not have children conducted a demonstration experiment that they worked as if they had had children and coped with sudden situations such as time constraints and children's fever, etc. to improve productivity. Not only did it show that women can have the confidence to continue working even when they actually come to life events, but also the measures changed mindsets of surrounding management and lead to improved organizational culture that is needed for employees to work while achieving high performance.
The Kirin Group started the program company-wide, and at the same time it expanded the scope to men (fathers) and to nursing care. It is also attracting attention from outside as an initiative to raise labor productivity through experience of time-limited work styles and foster an organizational culture in which diverse human resources can work more effectively.