The reason why Dentsu teamed up with a strategy consultant–the key lies in building relationships with customers | Business Insider Japan

The environment surrounding brands has become more complex and diverse as the shift to an unpredictable and highly uncertain society called “VUCA” accelerates. Business transformation for sustainable growth is essential for brands, but because the future is uncertain, there are no longer any one-size-fits-all solutions or methods.

Under these circumstances, Dentsu, which is responsible for marketing and communication, and Dream Incubator (DI), which conducts strategic consulting and investment, are facing customer issues with their own strengths in order to produce business suitable for the VUCA era. )is.

The two companies, which formed a business alliance in May 2021, are currently promoting the business transformation of customer companies by running side by side with customers throughout the value chain, from problem discovery to business creation, service development and design. It is said that the two companies, who are partners, and the customer, can maximize value creation by becoming, so to speak, “friends.”

Mr. Naoki Mori, General Manager of the Dentsu BX Creative Center Experience Design Department, and Mr. Yoshihiro Nobe, Executive Officer of Dream Incubator, held a business conference hosted by DIGIDAY[Japanese version]on November 1st and 2nd, where leading domestic brands gathered. Appeared on “DIGIDAY BRAND LEADERS”. In the session titled “What is necessary for transformation in the VUCA era?”, we discussed how the two companies are combining their respective resources to create solutions for business transformation aimed at sustainable growth. Told.

What is the “consulting suitable for the VUCA era” that both companies practice? I will unravel from the session and the subsequent interview.

Factors to overcome the VUCA era

For many of our readers, Dentsu is Japan’s largest advertising agency, and one of the world’s top five mega-agency sales figures alone. In recent years, however, Dentsu’s perception has changed somewhat.

It is transforming into a company that provides solutions that grow from a multifaceted approach to issues faced by companies and customers. Dentsu’s Mori explains that the company’s current position is an “Integrated Growth Partner (IGP).”

“As a partner committed to the sustainable growth of client companies and society, Dentsu discovers essential issues from increasingly complex and sophisticated corporate issues and provides unique comprehensive solutions called ‘Integrated Growth Solutions.’ (Mr. Mori)

Currently, we support “BX (Business Experience),” which is the transformation of the entire business, “CX (Customer Experience Transformation),” which is the transformation of customer experience, and “AX (Advertise Transformation),” which is the sophistication and efficiency of advertising. ”, and “DX (Digital Transformation)” are undergoing a major transformation into an organization that leads to integrated problem-solving.

Dream Incubator is a partner that strongly supports this. Strategic consulting companies and creative agencies are sometimes said to be incompatible due to the difference in orientation between “science and art”, but “actually, Dentsu and we have similar personalities (laughs).” says Mr. Nobe of Dream Incubator.

Today, the two companies are supporting many companies that are sailing through the rough seas of VUCA. Our goal is to “commit to the sustainable growth of the Japanese economy and society through the growth of our customers.” To that end, change is essential, and Mr. Nobe says that there are three points to this change.

The first is “health and energy”. The second is the “attitude to work”. And the third is “making friends”.

“Broadly speaking, the importance of powers such as ‘humanity’ and ‘human power’ is increasing. Knowledge has already become a commodity, and the mobility of human resources is increasing. Due to the nature of my job, I have many opportunities to talk with business owners, and I often hear them complain that they have a beautiful picture but are unable to execute it successfully.

In times of uncertainty, criticism erupts from all sides, both inside and outside the company, for any challenge or decision a leader makes. As we move into an increasingly VUCA era, both society and employees will become anxious. We need healthy, positive leaders as a foundation for everything.”

Nobe said.

“And precisely because it is uncertain, uneasy, and difficult, it is important not to give up, but to turn to the side of making change and keep working on it. We need to collect them and challenge them together.” (Mr. Nobe)

In addition, Mr. Mori commented on the background of the collaboration between the two companies, saying, “We needed to gather all kinds of knowledge so that we could create more answers, because we don’t know what the best solution is.” However, he emphasized that it is possible to maximize value creation by becoming, so to speak, “comrades.”

Dentsu’s “producing power” also demonstrated in the consulting field

After the session, we invited Mr. Mori of Dentsu, Mr. Nobe of Dream Incubator, and Mr. Akihiko Fuchi of BX Director of Dentsu Business Design Square to hear more detailed stories.

Why is Dentsu expanding into the consulting field in the first place? And why does “human power” create differentiation in business in the age of VUCA?

First, Dentsu has a track record of doing business with thousands of clients. In addition, the company has a long history of serving the entire market – customer marketing.

And we have been looking at how we can increase our brand value and create a better image for our customers. It is no exaggeration to say that it is the ability to become a consumer who prefers a specific brand, immerse himself in it, and think it through. Furthermore, rather than just pandering, we question the premise “questions” from a third-party perspective.

It is precisely because of this perspective that we are able to derive the result of new “value creation” in the consulting field as well.

In fact, strategy consulting is good at upstream strategy formulation and efficiency improvement, but when it comes to “new business”, which is high on the company’s to-do list, There is a question mark,” Mori questioned.

“Currently, companies have commoditized their services and products, making it difficult to differentiate them. Dentsu is good at taking the perspective of the market and customers, so we can identify current issues. can be envisioned and approached.” (Mr. Mori)

Mr. Mori raises another point about Dentsu’s strengths.

“So far, we have developed strengths in marketing, design, and creativity, but our real strength is our ability to produce.” (Mr. Mori)

Over the years, Dentsu has partnered with various creators for numerous clients, launched task force-like projects, and faced challenges. In other words, we have gathered “people with knowledge” who will lead to the solution of the problem, teamed up and provided solutions without sticking to a specific approach or framework. In other words, Dentsu’s true strength lies in its ability to produce.

Create new value and extend the top line of customers

Dentsu’s strengths lie in its customer perspective and production capabilities. On the other hand, I admit that I lack the power of a human resources network that can put in excellent board members who can solve specific issues, such as strategy consulting, in formulating strategies against the backdrop of social conditions in the VUCA era.

However, Dentsu does not think that it will attack the consulting field only with its own strengths. This is because the purpose is to provide the best solution to the customer’s problem by joining hands with the best partner. That partner is Dream Incubator. In the session, Mr. Nobe said, “The two companies are similar.” Why do you think the two companies can create synergies?

“Our strength is also in business production, creating new value and providing value to our customers by increasing their top line. What is important for both companies is that they are ‘extra’ and ‘useless’. But we’ve tried a lot and experienced a lot of failures.Dentsu and Dream Incubator have a similar culture in that they just try and move.” (Mr. Nobe)

No customer problem is always the same. In other words, the situation is such that conventional know-how and assets alone are no longer sufficient for new “value creation.” Precisely because we are in such an era, we are confident that we can respond to many customer issues by leveraging the strengths of Dentsu and Dream Incubator.

However, while standing on the same line of sight, the approach to customers is slightly different. Dentsu specializes in capturing changes in consumer attitudes and perceptions. On the other hand, Dream Incubator mainly considers how it affects companies from a meta-perspective such as social issues.

Social issues change people’s perceptions and have medium- to long-term impacts on corporate business activities. The synergy between the two companies is probably born precisely because they can formulate strategies from such different approaches and make sense of them.

What is needed for transformation in the VUCA era?

Today, both companies support the many companies that are sailing through the rough seas of VUCA. Our goal is to “commit to the sustainable growth of the Japanese economy and society through the growth of our customers.” It requires change. In the session, Mr. Nobe said that three points are necessary to overcome the wave, but I heard his true intentions again.

Mr. Nobe said, “The business environment surrounding companies, both internally and externally, has entered the most VUCA era since the beginning of this century. There is a lot of things to think about, such as confusion, rapid work style and organizational changes,” he said.

“Shareholders have a very strong presence in corporate management. For this reason, the vector tends to be directed toward strengthening existing businesses rather than new businesses. , we have to take on new challenges.” (Mr. Nobe)

said.

Dentsu’s Fuchi sees a similar picture. He has faced corporate issues so far, but he feels that the company’s vector has changed. A few years ago, the trend was to aim for “discontinuous growth”, but now we understand our own “assets” such as brands and customers, and leverage our strengths to “seep” into adjacent fields. It is said that more and more companies are growing like this.

“To paraphrase the ‘human power’ that Mr. Nobe refers to, it can also be understood as the meaning of focusing more on the perspective of consumers and customers. I feel that it is becoming more and more important to seep into the realm.It is important to support “which adjacent domain should it seep into” and “how to search and identify the domain” from the consumer’s point of view. It is the greatest synergy that the two companies have become partners, and we believe that it is our value.” (Mr. Fuchi)

The driving force of the two companies’ business transformation is sure to be a great force for companies as well.

Naoki Mori
Dentsu Inc.
BX Creative Center Experience Design Department Manager/Creative Director/Business Development Director
Joined Dentsu in 2009. He collaborates with frog, a US design consulting firm, develops business for domestic companies, and supports business and innovation through digital and technology. His books include “Mobile Shift” (ASCII Media Works, co-author). He has received awards such as ADFEST (INTERACTIVE Silver, etc.), Spikes Asia (PR Grand Prix), and Good Design Award. He is an official speaker of “ad: tech Tokyo” and many other lectures.

Yoshihiro Nobe
Dream Incubator Co., Ltd.
Operating officer
Consumer Goods/Construction/Housing/Media/Content/Electrical/Automotive/Automotive Parts/Materials/Chemicals/General Trading Company/Electricity/Oil, etc. He is also in charge of a wide range of strategic consulting projects, such as formulating re-growth strategies, assessing the business feasibility of technologies and evaluating investment decisions, reforming sales organizations, and training executive candidates. He also oversees DI’s brand marketing activities.

Akihiko Fuchi
Dentsu Inc.
Business Design Square Transformation Partners 1st Group Manager
BX Director
Engaged in business consulting and production work centered on the BX area. We provide consulting services such as designing BX architecture, formulating business strategies and execution plans, reforming the value creation process, and producing business foundations and business promotion schemes.

Text: DIGIDAY Brand STUDIO (Ryoya Kaidatsu) Photography: Sachiko Hara (Naoki Mori, Yoshihiro Nobe)

This article has been partially edited and reprinted from Digiday[Japan].

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