High Compatibility of Standardization with Shimadzu Group Businesses
Standardization is a process already very familiar to the Analytical & Measuring Instruments segment, Shimadzu’s strongest business segment, because measuring and analysis cannot proceed until corresponding rules are specified. Many existing standardized analytical techniques were developed through cooperation with one of the analytical and measuring instrument manufacturers. If we cooperate in developing an analytical technique, the analytical technique will be more easily usable with Shimadzu Group instruments, whereas if a competitor controls the process, it would obviously result in a tougher fight for winning business. Until recently, the Shimadzu Group tended to view standards, regulations, and other rules as something created by the national government for companies to comply with, but that view has changed significantly over the last several years.
When the new medium-term management plan started in April 2023, it specified “strategize international standardization /reinforce regulatory response” as one of seven management foundations to be reinforced. In the Shimadzu Group’s long history, it was the first time “standardization” was explicitly included as a strategy. Moreover, a new International Standardization Group was established in the Research & Development Management Department, coinciding with the start of the medium-term management plan, in order to promote standardization.
Review of the First Year of the Medium-Term Management Plan
There were three main accomplishments during the first year. The first was the establishment of several JIS and ISO standards for analytical techniques, a result of several years of proactive cooperation by the Shimadzu Group in standardization activities. Standardization cannot be achieved within a single fiscal year but rather requires 3 to 5 years. Success in this area can create a positive feedback loop, increasing motivation and leading to engagement in a wider variety of activities. Therefore, we intend to continue accumulating such success cases one at a time in the future.
The second accomplishment was building the framework within the Shimadzu Group for promoting standardization globally. This involves conducting discussions among the five regions —Japan, North America, Europe, Southeast Asia, and China— to decide a theme each year for promoting international standardization.
These discussions are held regularly, but due to the extremely passionate participants, each discussion has been very fruitful. In FY 2023, we initiated measures for establishing standards for PFAS analytical techniques and in FY 2024, we also started working on a separate theme. Our aim is to establish a system for continuously achieving international standardizations within a certain period by simultaneously working on multiple international standardization themes globally.
In addition, we are also working with the Analytical & Measuring Instruments Division to establish business development capabilities based on using standards. After selecting 9 key themes in April 2023 and establishing a system for quarterly reporting to the Division General Manager and the CSO starting in June, it has become easier to understand the progress of standardization activities in concrete terms.
The third accomplishment was penetration of the standardization strategy. With the inclusion of the standardization strategy in the medium-term management plan, it has gained significant importance within the company and is being actively implemented in various situations. As the CSO, I see this as a major change.
However, there are also some challenges. It may be the consequence of our success, but the increase in measures being implemented has revealed some resource shortages. Standardizing an analytical technique requires acquiring massive amounts of analytical data, but we have encountered a shortage of resources available for that purpose. On the other hand, I interpret the shortage as a positive consequence of more people within Shimadzu actively pursuing standardization. Resource shortages can be a frustrating problem, but we will overcome this by working more closely with other departments or outsourcing work to outside companies.
Measures for the Second Year of the Medium-Term Management Plan
As mentioned, standardization activities cannot be completed within 1 or 2 years. Therefore, the measures discussed as first-year accomplishments will continue this year. Of those, we intend to focus particular efforts on the following three activities.
The first is human resource development. We will engage in training young and mid-level employees to implement future standardization strategies. Simply instructing employees to "acquire ISO certification" is insufficient if they do not know how to achieve it. The International Standardization Group has been conducting workshops to teach the basics of various expertise areas, such as collaborating with outside organizations and proper etiquette for attending international meetings. The second focus is on establishing capabilities for acquiring large amounts of analytical data used to resolve the resource shortage mentioned earlier. The third focus is on collaboration between standardization and intellectual property efforts. First, we will create a standardization/regulation database in coordination with intellectual property strategies. The basic foundation for this database is nearly complete and will include systems for identifying internationally relevant standards in respective fields and determining how the Shimadzu Group has responded to or prepared for those standards.
Moreover, standardization is closely associated with what is referred to as “open” or “closed” strategies. Though standardization is considered an open strategy, of course, that does not mean everything should be open. Rather, we need to strategically decide which things should be carefully protected as intellectual property and which things should be allowed to be open. Therefore, the Intellectual Property Department has been consulting with business division personnel involved in development from early product planning and design stages. This consultation helps determine the best intellectual property strategies, such as when to submit patent applications for specific technologies. Standardization strategies will be integrated with these intellectual property strategies. Initially, we will implement measures for coordinating the intellectual property and standardization strategies in presumably one or two cases per year, starting from the early stages of development.
Four Steps of International Standardization Strategies
This year’s report includes a summary of the 4 steps involved in implementing the Shimadzu Group international standardization strategy and regulatory compliance. Each step is classified by level from 0 to 3, where the Shimadzu Group level at the current stage is probably between 1 and 2. Level 0 indicates compliance measures for existing standards and regulations that companies which include “measurement” as part of routine operations perform as a matter of course. Considering the Shimadzu Group began active involvement in creating standards only recently, it will take a while longer before we reach our goal of level 3. Within the context of steadily implementing the measures mentioned above, first we need to achieve level 2, where standardization strategies are considered a normal part of business strategies.
Transitioning to a Comprehensive Business Strategy
From now on, a major strategy for differentiating Shimadzu products from competitors will be increasing our participation in standardization processes. For example, the governments of Japan, the U.S., Europe, and China are investing the equivalent of tens of trillions of yen in green transformation measures and have adopted national strategies for achieving international standardization. The Shimadzu Group is also implementing strategies in cooperation with government agencies, academic institutions, and private companies to achieve broad adoption of technologies in society and establishing standards. However, competitors are also engaged in similar measures. Nevertheless, I am not very worried. The Shimadzu Group has an extensive pool of talented human resources and has been preparing corresponding systems.
In the future, we will elevate international standardization strategies and regulatory compliance to a global comprehensive business strategy in coordination with intellectual property and market strategies. Therefore, expect great things from Shimadzu in the future.
Biography of Fuminori Inagaki,
Senior Managing Executive Officer
In Charge of Standardization Strategy (CSO) and Medical Regulatory Policy
Deputy in Charge of Corporate Strategy Planning and Global Environmental Management (GX)
| Apr. 1982 | Joined Ministry of International Trade and Industry | |
| Nov. 2006 | Director, Trade Policy Division, Trade Policy Bureau, Ministry of Economy, Trade and Industry (METI) | |
| Jul. 2010 | Deputy Director General for Policy Evaluation, Minister’s Secretariat, METI | |
| Apr. 2011 | Director, Nippon Export and Investment Insurance (NEXI) | |
| Jun. 2015 | Joined Shimadzu Corporation, Managing Executive Officer and Deputy in Charge of Corporate Strategy Planning and Corporate Marketing | |
| Jun. 2017 | Managing Executive Officer in Charge of Global Environmental Management and Deputy in Charge of Corporate Strategy Planning and Corporate Marketing | |
| Apr. 2021 | Managing Executive Officer in Charge of Standardization Strategy (CSO), Global Environmental Management, and Medical Regulatory Policy, and Deputy in Charge of Corporate Strategy Planning | |
| Apr. 2023 | Senior Managing Executive Officer in Charge of Standardization Strategy (CSO) and Medical Regulatory Policy, and Deputy in Charge of Corporate Strategy Planning and Global Environmental Management (GX) (current) |
