Page 54 - MYM 2015

For a corporation, and especially a manufacturer like the YKK Group, to continuously grow its businesses,
it must pursue market creation and business model innovation through product and technology capabilities that generate new value. The YKK Group engages in more than just technological development. At the YKK Group, the philosophy of “technology oriented value creation,” which is not merely the development of technology, but a vow to provide useful technology to the world, is the basis of the activities of the Fastening and Architectural Products divisions. This paper looks at the value creation initiatives underpinned by the technologies of both businesses.
Value Creation in the Architectural Products Business
As aforementioned, one of the YKK Group’s core businesses is the Architectural Products business. The “AP” (architectural products) in YKK AP embodies our commitment to continue to produce industrial products that combine the elements of art and technology that are the foundation of architectural culture. Windows and doors, although just one part of a building, largely determine the performance and aesthetic qualities
of the structure as a whole. These elements play
a particularly large role in determining the energy ef ciency of a living space because much of the heat that ows into or out of a building passes through the windows and doors. Windows help maintain a healthy indoor temperature for the people living there. Cold temperatures inside a home can seriously affect a person’s health. Windows play an important role in ensuring a home is neither too cold nor too hot.
is dif cult to suf ciently guarantee quality and to deliver windows tailored to speci c environments.
The conventional sash business uses knock-down production and ships semi- nished products to construction material distributors. This supply system involves the construction material distributor completing the nished window by assembling the glass and sash together and then delivering this to the construction site. Using this approach, however, the manufacturer cannot guarantee suf cient quality assurance nor can it create windows compliant
with each particular application. Accountability for window defects also becomes an issue when the sash manufacturer and window nisher are different entities. Additionally, advanced technologies that involve welding (to melt and join the corner edges) are needed in order to assemble the vinyl frame into a single window structure. It is also impossible to demand all construction material distributors master the specialized silicon sealant sealing technology needed for effectively joining the vinyl frame and glass to improve insulation ef ciency. Therefore,
YKK AP determined that the only way to get the best functionality and performance from the windows was to act as an integrated manufacturer spanning up to window completion.
As a result, in 2005 YKK AP announced that it would launch its window business. However,
this announcement caused a misunderstanding among some vendors. They interpreted YKK AP’s announcement to mean that it would take value- added glass and sash assembly work away from construction material distributors. Because the window business would be carried out alongside the sash business, YKK AP explained that it would continue to supply sash products as before in an effort to allay any fears and misunderstanding. At the time, when I was President of YKK AP, I said the following with regard to YKK AP’s vision for windows
The sash business is extremely important in Japan, and YKK AP will continue to engage in
this business going forward. However, the word “sash” is unique to Japan. As a global corporation that is part of the YKK Group, we recognize this business is known commonly around the world
as “windows and doors” and not “sashes.” In recent years, customers have come to demand various specifications for windows in Japan. To fulfill these specifications, we must now look in a new direction, where we create the entire window, difficult as that may be. In other words, we will
Creating New Value through Business Model Innovation and Market
Sash business Frame
Sash
Assembled by fabricator
Window
Manufacture and deliver to construction site
The window business is one example of business model innovation creating new value at YKK AP. Unlike the sash business, in which sash products are supplied as a window component, the window business requires that YKK AP maintain integrated operations that span up to the completed window being delivered to the construction site. Our reason for engaging in the window business is because within the sash business it
54 I October 2015