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3 Model C: An Small Size Electric Full-Flat Bus (The Front Door - The Middle Door, an Amount to Be Borne by a Bus Company Is...

3 Model C: An Small Size Electric Full-Flat Bus (The Front Door - The Middle Door, an Amount to Be Borne by a Bus Company Is...

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Research of the Social New Transportation Service on Electric Full Flat. . .



91



Fig. 15 The exterior design

of a grand-up style

community bus designed by

Seijiro NODA



Fig. 16 The interior design

of a grand-up style

community bus designed by

Seijiro NODA



hand, middle-size buses will cease to be used from now on because of halfway

transportation. So we visualized a small-size electric full-flat bus which elderly

people and physically challenged people can take easily in order to any places with

poor access, as represented Figs. 15 and 16. Moreover the bus can be loaded

with wheelchairs. This community bus can contribute to combining eco-design

with universal design.

To others, although there was also expectation for an interurban coach (Fig. 17)

and a long-distance night high speed bus (Fig. 18), many bus companies wanted to

introduce when development of a battery with many high-density are done [5].



92



T. Nishiyama



Fig. 17 Image of

interurban coach on

integrated platform

designed by Kikuo EMOTO



Fig. 18 Image of a longdistance night high speed

bus on integrated platform

designed by Kikuo EMOTO



6 New Social Service Based on ELFB

ELFB does not emit an exhaust gas, noise, and carbon dioxide. So, ELFB is put in

public buildings. If ELFB goes into the station and airport, and a harbour especially,

the burden and resistance of citizens’ change can be reduced. If ELFB rides into a

hospital and a supermarket, resistance of movement of citizen like elderly people or

physically challenged people can be reduced greatly 80 % of 380 monitors want

ELFB to ride into a station, a hospital, and a shopping center, and it also turned out

that increase of 60 Japanese yen is permitted on the bus fare per time towards the

environmental improvement in a station, a hospital and a shopping center. In the car

of ELFB, the floor is a full flat. Moreover, since ELFB can also cut an exhaust gas

and sound, the public service of the universal design of a high level and ecological

design can be provided for citizens (Figs. 19 and 20).

The technology of ELFB is applicable also to an ambulance or an inspection car

like an X-ray car which puts much medical equipment in the car. The technology of

ELFB has the application possibility to large-sized vehicles other than a bus

(Figs. 21 and 22).



Research of the Social New Transportation Service on Electric Full Flat. . .

Fig. 19 The image which

an electric bus rides into a

shopping center designed by

Kikuo EMOTO



Fig. 20 The image which

an electric bus rides into a

city park designed by Kikuo

EMOTO



Fig. 21 The appearance

image of the electric

ambulance using an

in-wheel motor designed by

Atsushi MATSUDA



93



94



T. Nishiyama



Fig. 22 The practical use

image of the electric

ambulance using an

in-wheel motor designed by

Atsushi MATSUDA



Fig. 23 The image to

which the patient is turning

around the hospital with the

small electric vehicle with

an automatic operation

function



In particular, the monitor urged it strongly to apply the technology of ELFB to an

ambulance by the free answer column. If an electric ambulance rides in into a

hospital, time of a patient’s emergency step can be shortened on the whole.

Furthermore, if a patient enables it to turn around the inside of a hospital freely

by the small electric vehicle of automatic operation, level of the universal design

and an ecological design will go up markedly in a hospital. The demand of the



Research of the Social New Transportation Service on Electric Full Flat. . .



95



Fig. 24 The service robot

for hospitals which operate

automatically a author,

Nishiyama, has developed

(Securement of citizen’s

mobility service in the

hospital by an electric car

will be important from now

on)



service which raises the level of a universal design and an ecological design with

the technology of such an electric vehicle increases from now on.

A writer names this MOBITALITY SERVICE and is trying hard towards the

spread (Figs. 23 and 24).



7 Conclusion

It is urgently necessary to enhance further practical utility of EVs through research

by evaluating the prototype vehicles. One of the reasons why EVs are being

spotlighted in recent years is that they can be driven right to the inside of a building.

In the case of electric route buses, they can be driven right up to the front of the

ticket gate of a station, medical treatment facilities, or shopping malls, which can

reduce the moving distance for the elderly or persons with disabilities. In the future,

the research would like to take the moving distance into consideration while

studying scenarios of low-carbon town development that utilizes EVs. The research

also intends to continue studies on the construction of future environments that are

created through a fusion of eco design and universal design. In addition, the plan to

embark on the development of electric trucks by making the most of the integrated

platform structure is underway as well. Furthermore, we put in a building the

electric buses which an exhaust gas and noise do not come, and also advance

research to reduce resistance of the change by traffic environments. If it puts in

the station of a railroad, or the building of an airport, resistance of a change will

decrease and be pleased with elderly people. ELFB is useful in the field of city

planning.



96



T. Nishiyama



References

1. Ballabio E (1998) The European Commission R&D initiatives to promote design for all. In:

Proceedings of international workshop on universal design, building research institute, Ministry

of Construction and Japan International Science and Technology Exchange Center, Tokyo,

Japan (CD-ROM)

2. Benkzton M (1993) Designing for our future selves: the Swedish experience. Appl Ergon

24:19–27

3. Bicknell J, McQuiston L (eds) (1997) Design for need: the social contribution of design. In:

Conference proceedings, Pergamon Press & Royal College of Art, London, UK (CD-ROM)

4. Kahneman D, Knetsch JL (1992) Contingent valuation and the value of public goods: reply.

J Environ Econ Manag 22:90–94

5. Nishiyama T, Noda S, Ishikawa M, Shimizu H (2012) Electric Full Flat Floor bus’s trial

production and research of the spread strategy in a public transportation system. In: Proceedings

of the third international engineering systems symposium, on Internet



Analysis of Business Process Innovation

Using Outsourcing

Takeshi Takenaka, Naoki Tomotake, Rui Suzuki, Masumi Yoshida,

Taiki Yamada, and Shigeaki Shiraishi



Abstract Innovative change of business processes is an important concern for both

service and manufacturing industries to achieve more sustainable businesses

corresponding to rapid changes and globalization of the world economy. This

paper presents a discussion of how companies can use outsourcing for business

process innovation. We conducted a questionnaire survey targeting business managers in Japan and the U.S. It also analyzes best practices and challenges related to

this issue through interviews with BPO vendor companies and user companies in

both countries. Finally, the classification of business process innovation using

outsourcing it discussed from the viewpoint of a value creation model.

Keywords Business model • Innovation • Outsourcing • Value creation model



1 Introduction

In an increasingly globalized and rapidly changing world economy, worldwide

competition compels companies not only to dominate an existing market but also to

expand their businesses by creating new value for customers. Actually, the boundaries of business sectors such as manufacturing and service industries have become

more blurred in terms of value creation in society. Therefore mutual learning and

cooperation among industries has become increasingly important for sustainable

growth at an industry level. At the firm level, the manner in which a company can

incorporate external knowledge and expertise is important.

In recent years, some global companies have grown rapidly through increased

merger and acquisition (M&A) activities. In Japan, for instance, the total transaction value of M&A acquisitions of foreign companies surpassed that of domestic

M&A in 2006 [1]. This phenomenon suggests that Japanese markets are highly

T. Takenaka (*)

National Institute of Advanced Industrial Science and Technology, 135-0064 Tokyo, Japan

Ministry of Economy, Trade and Industry, Tokyo, Japan

e-mail: Takenaka-t@aist.go.jp

N. Tomotake • R. Suzuki • M. Yoshida • T. Yamada • S. Shiraishi

Ministry of Economy, Trade and Industry, Tokyo, Japan

© Springer Japan 2016

T. Maeno et al. (eds.), Serviceology for Designing the Future,

DOI 10.1007/978-4-431-55861-3_7



97



98



T. Takenaka et al.



mature and saturated. Those companies that implemented international M&A might

require external sources of new knowledge and business functions to enhance their

respective competitive positions domestically and abroad. Nevertheless, it is not

always easy for an acquiring company to achieve desirable results through M&A,

even if they are in the same industry, because both the acquiring and acquired

companies have their own distinct business cultures or implicit processes. Therefore, companies that require business restructuring should marshal their business

model or operational processes in advance of M&A.

Recently, business services such as outsourcing play more important roles for

companies to make their business processes more efficient and effective. Although

the salient purpose of introducing outsourcing for companies is cost reduction, it

can also be beneficial for the reconstitution of their business models or operational

processes for future growth. However, companies cannot always use outsourcing

effectively. For effective outsourcing, both outsourcing vendors and user companies need mutual understanding to co-create greater value.

This paper presents a discussion of how companies can use outsourcing for the

innovative restructuring of their business processes. First, this discussion presents

overviews of recent trends prevailing in outsourcing industries. Then, it presents

results of a questionnaire survey that aims to clarify business managers’ motivation

or attitudes for introducing outsourcing in Japan and the U.S. Then it introduces

best practices for introducing outsourcing for innovative change of business processes. Finally, it proposes a classification of business process innovation using

outsourcing from the viewpoint of a value creation model.



2 Outsourcing Industry

Although many definitions of outsourcing have been presented in the literature,

Gereff and Fernandez-Stark [2], for example, classified outsourcing into ITO, KPO,

BPO, and other industry-specific outsourcings from the viewpoint of their global

value chain framework (see Fig. 1). They refer to knowledge process outsourcing

(KPO) as higher value services across all industries, such as market intelligence,

business analytics, and legal services. However, business process outsourcing

(BPO), which includes enterprise resource management (ERP), human resource

management (HRM), and customer relationship management (CRM) are positioned

lower than KPO in terms of value added.

In practice, BPO and KPO are often inseparable for the improvement of business

processes, although KPO usually includes professional services provided by consultants with public qualification. Moreover, information technology outsourcing

(ITO) is playing a crucial role in KPO and BPO. Because of this situation, this paper

mainly specifically examines BPO as outsourcing including descriptions of some

functions of KPO and ITO.

HfS Research [3] estimated the global market size for both ITO and BPO, which

are gradually expanding, as presented in Fig. 2. Table 1 presents the estimated



Analysis of Business Process Innovation Using Outsourcing



High



ITO



KPO



(Information

Technology

Outsourcing)



(Knowledge Process

Outsourcing)

Business consulting

Business analytics

Market Intelligence



Value added



Software R&D



Software



(Application Mgt.,

Network Mgt.,

Infrastructure

Mgt.)



Telecommunic

ations



HRM



CRM



Energy



•Training,

• Talent

mgt,



•Marketi

ng &

sales,



Travel and

Transportation



•Payroll



•Contact

center



Pharmaceutical



ERM

•Finance

Accounting,

•Supply

chain,

•Document

&

Contents



Banking,

Financial,

Insurance

Manufacturing



(Business Process Outsourcing)

(ERP, Application

development,

App.

Integration, )



Industry

specific

Outsourcing



Legal

services



BPO



IT consulting



Infrastructure



Low



99



•Recruiting



Healthcare,

Retail

others



Fig. 1 Types of outsourcing (Based on Gereffi and Fernandez-Stark [2])



Fig. 2 Estimated world

ITO and BPO markets (Ref.

[3])



(Billion dollars)



BPO



ITO



1200

1000

800

600



623.5



710.5



748.2



648.2



675.5



304.1



321.2



340.1



361.5



2013



2014



2015



2016



784.8



400

200

288.1



0



2012



384.6



2017



Table 1 Estimated market size of BPO and ITO in the U.S. and Japan, expressed as percentages

of those countries’ GDPa

BPO

ITO

a



Country

US

JP

US

JP



2012 (%)

0.75

0.14

1.18

1.40



2013 (%)

0.76

0.17

1.18

1.76



2014 (%)

0.77

0.17

1.18

1.74



2015 (%)

0.77

0.18

1.20

1.73



Based on HfS Research “State of the Outsourcing Industry 2013” and IMF “World Economic

Outlook Database, October 2013”



100



T. Takenaka et al.



shares of GDP of BPO and ITO in the U.S. and Japan. The major difference

between the U.S. and Japan is that the BPO market in Japan is much smaller than

that in the U.S. in terms of GDP. The authors’ fundamental research question is why

Japanese companies can use BPOs less than foreign companies can. Lower productivity of Japanese service industries has remained a key issue in Japan [4]. Moreover, we are interested in how BPO is useful for the creation of added value and for

cost reduction. Japanese service industries exhibit higher ratios of small and

medium-sized enterprises (SME’s). Therefore, the benefit of BPO cost reductions

cannot be anticipated to be high for SMEs. Additionally, cheaper offshore

outsourcing presents limited opportunities for Japanese companies because Japan

is a non-English-speaking country. The following section introduces the results of a

questionnaire survey that was administered to clarify companies’ current situations

and problems for introducing outsourcing in Japan and the U.S.



3 Questionnaire Survey of BPO in the U.S. and Japan

The Japanese Ministry of Economy, Trade and Industry (METI) [4] created a study

group for the creation of higher value-added service industries, which was

established to assess new policies for increasing high added value in the service

industry, a key sector for Japan’s successful economic growth in January 2014. The

major topics to be discussed were the following.

1. Fostering human resources to lead approaches to increasing high added value in

businesses

2. Shifting to a new approach called “Proactive Investment in IT,” including the

acquisition of new customers and the development of new services

3. Stimulating business-supporting service industries and using such services

4. Innovation of a business model aimed at increasing high added value in service

industries, etc.

A web-based questionnaire was administered during February 27 – March 14 in

2014 to clarify current problems of the third topic above, comparing the U.S and

Japan, and also comparing manufacturing and service industries. The survey

targeted executives and managers in the four industries presented in Table 2.

Table 2 Number of questionnaire survey respondents

Nation

Japan

U.S.

a



Co. size (Number of

emps.)

>500 employees

500 employees

>500 employees

500 employees



Retail,

Whlsale.

50

50

50

50



Only 25 respondents answered with data for the decade



Restnt.,

Hotel

25a

50

50

50



Finance,

Insur.

50

50

50

50



Mfg.

50

50

50

50



Analysis of Business Process Innovation Using Outsourcing

Fig. 3 Currently used

outsourcing services in the

U.S. and Japan



0



Procurement

& sourcing



101



10



20



40



50



60



18.5%

8.4%



Human

Resources



23.8%

14.0%



Finance &

accounting



25.9%

11.0%

20.1%



Marketing



14.0%



CRM (call

center, etc)



17.0%

17.1%

21.6%

19.1%



Data Analytics

Document

& print



30



31.8%

55.6%



5.7%



Legal process

16.1%

46.3%



Tax accounting

Others



15.7%

8.0%

12.7%



U.S (n=324)



Japan (n=299)



Figure 3 presents responses to question No. 4 comparing U.S. and Japan (Q4:

Which kind of outsourcing has your company used?). In many operations,

U.S. companies use outsourcing more than Japanese companies do.

Japanese companies use outsourcing much less in the fields of human resource

management, finance and accounting, document and print operations, legal processes, and tax accounting. Additional investigations reveal that 23.2 % of large

companies (>500 employees) in service industries use data analysis outsourcing,

although only 16.4 % of smaller companies offering services (500 employees) use

such outsourcing. However, small service companies in the service sector use

customer relationship management (CRM) including call-centre services and marketing outsourcing more often than large service companies and manufacturing

companies do.

Figure 4 portrays companies’ expected results for outsourcing (Q8: Which

effects did you expect for outsourcing when you decided to introduce it?). Many

companies reported expecting the effects of reduced operational costs and process

efficiencies in both Japan and the U.S. because those effects were expected to be the

first or direct expected effects of outsourcing. Further investigation reveals that

those tendencies are more apparent in large companies irrespective of service or

manufacturing industries. However, there are apparently interesting differences that

prevail between U.S. and Japanese companies in other expected effects.

U.S. companies apparently expect outsourcing to make their business processes

more robust against changes in business environment such as business expansion,

globalization, and satisfaction of compliance requirements. Moreover, they expect



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