Difficult issues lead to high value-added manufacturing-JMC Co., Ltd.

Where did the managers of the next-generation growth companies find business opportunities and how did they confront them in an era of major changes in which pinch and opportunities coexist? In this special feature, ZUU online general editor-in-chief Hiroaki Ono will hold a dialogue with the managers of growing companies, and will deliver a special dialogue that approaches the management stance, attractiveness and growth factors of the company from the same viewpoint as the manager.

This time, we invited Mr. Daichi Watanabe, President and CEO of JMC Corporation. He started working on the 3D printer business from early on, and is currently developing the business with three pillars: casting and industrial CT. Here, we asked Mr. Watanabe about the company's core competencies and the future vision he envisioned. (Interview / writing / composition = Shigeharu Taishoya)

(Image = JMC Co., Ltd.) Daichi Watanabe President and CEO of JMC Co., Ltd. Born in Yamanashi Prefecture in 1974 Currently 46 years old 1992 Graduated from Kofu Daiichi High School 1993 Professional boxing debut 1999 Professional boxing retired, our company Joined the company 2004 Appointed as CEO of the Company 2014 Member of the "New Manufacturing Study Group" Attended the "Virtuous Circular Social gathering of the economy" at the Prime Minister's residence 2020 Member of the "Intellectual Property Transaction Study Group" of the Small and Medium Enterprise Agency Kazunari Tomita (Tomita Kazumasa) ) Representative Director of ZUU Co., Ltd. Born in Kanagawa Prefecture. He graduated from the Faculty of Economics, Hitotsubashi University. He started a business in the IT field while attending college. In 2006 he joined Nomura Securities Co., Ltd. Together with domestic and foreign listed company owners and listed reserve army to small and medium-sized company owners, he handles a number of listing preparation and business succession projects from the equity story strategy after listing. In April 2013, he established ZUU Co., Ltd. and became the representative director. He won top prizes in multiple technology company awards and was listed on the Tokyo Stock Exchange Mothers in June 2018, five years after the company was founded. Currently, he consults on pre-finance, builds equity stories for listed managers, and provides a lot of advice on individual and corporate finance strategies.

Not only introducing advanced technology, but also strength in proposal ability and parallel running to master

Tomita: Thank you for your time today. I heard that JMC was originally developing a different business. First of all, please tell us from that area.

Watanabe: Our company was founded by my father and was in the insurance business, but when I joined the company in 1999, I introduced a stereolithography machine and started the output business of 3D printers. After that, he was appointed as the representative director in 2004, and in 2006, he started a casting business by sand casting method in collaboration with SKE Co., Ltd., which conducts casting business for the purpose of expanding the contract range of prototypes.17 In 2014, we cut out the inspection process by industrial CT, which was carried out in the casting business, and turned it into a service as a CT business. In short, the business of the company that absorbed it was the main business, and I think this was a major turning point.

Tomita: Regarding 3D printers, former President Obama mentioned it in a State of the Union address showing the government's policy in 2013, and it attracted a lot of attention.

Watanabe: As we entered in 1999, 3D printers have been around for a long time, and what former President Obama said was the third boom. Therefore, although there was a section that we, the people concerned, thought, "Is it now?", It was a big thing that many people became aware of it due to that boom, and it brought about a change in the business. The technology and know-how related to 3D data that we have cultivated so far are the foundation and assets that support our business. On the other hand, in the general market, the expected value was high, so there are not many places to play an active part, and it seems that we are now in the adjustment phase.

Tomita: It was in 1987 that 3D Systems, Inc. of the United States released a 3D printer, and it seems that many people from Japan also invested in the company at each boom. The company's stock price, which was less than $ 5 before the third boom, soared to $ 96 in 2014, but at one point it fell below $ 10 again due to its demise. It's just funny, like Gartner's "hype cycle", new technologies have high expectations from the dawn, and after excessive expectations, they enter a disillusionment period, an enlightenment period, and a stable period of productivity. Expected value will rise again when it reaches the practical stage. In fact, 3D Systems' stock price has also emerged from a temporary slump. AI has been booming many times and the situation is similar, but in the case of your company, you have focused on advanced technology from a very early stage and have cultivated a competitive advantage despite twists and turns.

Watanabe: The balance between the 3D printer output business, the casting business, and the CT business is that, after all, there are some parts that cannot be helped by 3D printers alone. It's certainly good, but it also has its drawbacks, such as not knowing how to use it. In that case, comparison with the conventional method and the ability to make proposals for practical use are required.

Even around me, there are people in the manufacturing industry who have bought a 3D printer but have left over, and there is a valley between having it and putting it to practical use. If you have various construction methods like us, you can see the needs between them and the story will spread.

For example, CT is effective for how to create 3D data, casting is the best way to make metal, and by flexibly combining each technology, we can meet a wide range of customer orders. In addition to responding, we can pave the way for technological application to new areas that were not possible with existing manufacturing. By properly using traditional casting technology, advanced 3D printing technology, and data analysis using industrial CT, it is possible to realize processes such as "prototyping," "manufacturing," and "quality improvement" at a high level.

In addition, we have products that use 3D printers, such as "HEARTROID," a training / verification system for doctors and device manufacturers involved in cardiac catheterization. It is an appeal that it is a 3D printer.

Tomita: Your advantage is that you have technologies that you haven't mastered and can propose that you can create them in some form.

Watanabe: That's right, I think the strength is the part that adjusts the reality with 3D printers. 3D printers have the image of alternative construction methods in the world, but making conventional products can increase costs. Instead of such a vector, we are appealing to the area unique to 3D printers. Many people imagine that they can only do it with 3D printers, but I can't take a step forward, and I think it is our role to help them and to run in parallel with the needs and issues of our customers. increase.

Tomita: We are developing multiple financial media, and we receive 19 million monthly access. On the flip side, this means collecting data on the interests of 19 million people in finance, and we are trying to analyze and score the accumulated data. No matter how you use it, the more ideas you have, the more it will eventually become customer value, and the fact that it becomes customer value will also lead to business expansion. On the other hand, there are companies that have data but cannot find a way to utilize it, and I think the current president Watanabe's story is close to this situation. Even if you have great technology, you need to have a company with knowledge in between because you do not know how to combine it to find value, and that is JMC.

Watanabe: IT-related people are good at collecting data, but there are companies that can make good use of it and those that do not, not only in the amount of data, but also in how to handle it. The same is true for 3D printers, and if one mistake is made, it tends to be a matter of equipment industry. To prevent this from happening, high technical capabilities are required to have quality and proposal capabilities.

High added value due to quick delivery and high quality, aiming at convenience stores in the manufacturing industry

Tomita: In an interview, President Watanabe said, "We aim to be a convenience store in the manufacturing industry."

Watanabe: I often mention that if you go to a certain destination, you can pay 200 to 300 yen and aim slowly by bus, or if you hurry, you can pay 1000 to 2000 yen to take a taxi. It's an analogy. The same is true for the manufacturing industry, and I wanted to show the possibility of responding to short delivery times if I paid a lot of money. Until now, the manufacturing industry has tended to grow in size and estimate as the number of man-hours increases, and the concept of time saving has not been adopted. Rather, it is said that early delivery is cheap. However, the short delivery time should be realized because there are various values ​​such as sparing sleep and eating and fully automating, and we have to think about that.

I used to work part-time, so I often compare it to convenience stores, but the reason why convenience stores sell at a fixed price is that they are open 24 hours a day and have proven quality such as temperature control. Consumers come to see their value. Then, it should be the same if we keep the attitude of selling to customers in a hurry at a fixed price. Even when comparing buses and taxis, it is not "fast and expensive" but "early to expensive", and "fast to cheap" is clearly a contradiction. This is a real appeal because I'm not originally from the manufacturing industry.

Tomita: That's right about convenience stores, where business hours and quality are guaranteed, and the location is good. Businesses must have stores in easy-to-access locations to make them more convenient for consumers. In the case of your company as well, not only the ability to make proposals and ideas, but also time and quality are clearly stated as values.

Watanabe: There is always the theory that it is nonsense to make things in Japan, but I have a feeling that I would like to say a few words. Many manufacturing industries, like this new coronavirus, have a rebound in stable procurement in Japan when country risk increases or the supply chain collapses, and when it stabilizes again, they return to overseas, and so on.

On the other hand, we think that it is meaningful and meaningful to do it in Japan, and I would like to bring out the presence of being able to procure high-quality products in small quantities at hand.

Tomita: Your company has three pillars of business, and when it was listed, it had a strong image of an automobile, but now it has expanded into the medical field. How about the characteristics and commitment of such management decisions?

Watanabe: Manufacturing tends to be an equipment industry, but instead, I want to make it a know-how industry and try to make decisions. In the know-how industry, there is no discussion about whether it is expensive or cheap because it is handled by Japanese people. In addition, we also emphasize the value of time, and we would like to combine it with know-how to create added value. If so, the context of making something of higher quality faster than others and therefore high is established.

I also try to work on universal things. As with castings, we process materials into products, which has been going on since the days of the Mesopotamian civilization. It will never disappear, and it is important to create modern value in it. As with medical care, needs are uninterrupted because heart problems are not universal. Businesses that are dismissed by money cannot survive, and I would like to make the most of the edge.

Tomita: With this kind of technical strength and know-how, it makes me want to hit the surrounding area, and if there is a theme, I want to jump in, but I feel the belief that I dare not choose.

Watanabe: It's a different story whether or not there is continuity even if the trend is a short-term sales. If you just happen to hit it, you may be worried whether you can convey your superiority or verbalize it. Rather, sitting down should help you reach your goal faster.

Tomita: Lastly, please tell us about your company's future plans.

Watanabe: The corporate culture that likes difficult things hasn't changed since long ago, and it will not change in the future. On the other hand, some people point out that the color of automobiles at the time of listing and EVs will become darker after a few years, and some will "change". However, the world is constantly changing, so it is natural to respond to changes. We are particular about core technologies such as casting, but our goal is to face a wide range of industries, and we would like to focus on the market we are heading to. I would like to continue to take on difficult challenges and value them.

Tomita: In recent years, the wave of DX has begun to rush into real areas such as factory automation. Your company starts with 3D printers and utilizes core technologies to provide solutions, so even if an IT or DX bubble occurs in earnest, it seems that you will be able to enter in the meantime. I'm convinced that your company will be in the middle as the main player is a company that can multiply technology to create value. Thank you for today.