After the arrival of the Internet, what is called “X as a Service” (X represents software, platform, infrastructure, mobility, healthcare, for example) becomes very popular. Let us imagine that we […]
After the arrival of the Internet, what is called “X as a Service” (X represents software, platform, infrastructure, mobility, healthcare, for example) becomes very popular. Let us imagine that we enjoyed “Mass production, mass consumption” from 1950s to 1980s. At that time, the reasons why people purchased products were that they were cheaper, more functions, higher quality for example. However, thanks to the Internet, we are able to receive benefits from not only products themselves but also “X as a Service”. For instance, when we lived in 1980s, we were satisfied with buying and riding vehicles made by Toyota, General Motors and Volkswagen. However, when we purchased electric vehicles such as Tesla and BYD in present, we can enjoy update of their products. Therefore, our criteria for purchase becomes more complicated than before so that the game of manufacturing industry is disrupted. As a result, market capitalization of Tesla is bigger than that of Toyota, Volkswagen or BYD. Of course, some experts say that monetary easing policy affects this outcome and it is possibly bubble, but we have to pay attention to the game changers. It also means that manufacturing companies take the fact that production itself can be less valuable into consideration and it better for them to try to find other products or earn money by services for survival.
In fact, collaboration and partnership become more critical and important to innovate products or services. For example, Chinese IT giant, Alibaba group, collaborates SAIC motor. Another example is that most Japanese valuable company, Toyota, makes a partnership with Singaporean unicorn, Garb. Big automobile companies like Toyota and SAIC motor understands As-a-Service model has already changed the industry, but is it true for small medium automobile suppliers? The answer might be “No” so that these companies should keep eye on how the industry is changed and disrupted drastically and rapidly.