Dynamic Growth Through 3 Digital Transformations

Yamaha Motor Co., Ltd.

Yamaha Motor Co. aims to be a “Kando*-creating company,” and provides people around the world with new excitement and richer lives in areas such as land mobility, marine craft and robotics. Recently, its core business of mobility has been undergoing a major transformation as it pushes toward carbon neutrality and vehicle electrification to serve customers with more diverse values. Against this backdrop, Yamaha has undertaken digital transformation through three initiatives: “Reform Management Platforms,” “Strengthen the Present” to be more competitive and “Create the Future” by connecting with new customers.

*Kando is a Japanese word for the simultaneous feeling of deep satisfaction and intense excitement that people experience when they encounter something of exceptional value.

Mission-critical priority

Yamaha Motor, a company positioned in a fast-changing business environment, is engaged in digital transformation (DX) in the following three areas:  

• Y-DX1. Reform Management Platforms: Strengthening its management platform by building a globally connected database and through ERP innovation, and achieving predictive management through visualization and data utilization. At the same time, by standardizing and streamlining mission-critical operations, shifting human resources to differentiated areas.

• Y-DX2. Strengthen the Present: Strengthening existing business models by building up digital marketing, releasing connected products, realizing smart manufacturing, improving data analytics, etc.

• Y-DX3. Create the Future: Achieving sustained growth through innovations, including connecting with new customers through nonconventional channels and collaboration with customers.

How Gartner helped

Gartner provided the following insights and guidance:

  • Regular meetings with Executive Partners to share issues and discuss solutions
  • Concepts and frameworks like bimodal IT, pace layering and the Nexus of Forces
  • Insights and guidance on specific issues through inquiries with Gartner experts
  • Opinion exchanges and networking with other members of Gartner Executive Programs, including discussion of experiences with those in a similar position

Business impact

With Gartner support, Motor has achieved the following results since launching its digital transformation during its current three DX initiatives:

  • Shift from a bottom-up digital strategy to more full-fledged, top-down, companywide DX activities.
  • The company is in the process of creating globally connected database for production operation. Also, in ERP innovation, Yamaha is developing a global template to be rolled out globally soon.
  • Launch of connected motorcycles with the aim to sell over four million units by the end of 2024.
  • Offering value personalized in terms of both physical and digital aspects by launching virtual dealerships and e-commerce sites in order to connect with customers.

Industry:
Manufacturing

Revenue:
US$13.4 billion (Consolidated, in FY ending December 2020)

Employees:
52,437 (Consolidated, as of December 31, 2020)

Achieve your mission-critical priorities with Gartner for IT Leaders

I have high praise for the level of global research of Gartner experts. Also, they are trustworthy as a source of neutral information, including on benchmarks, and their insights and guidance are very useful in areas in which our company has little experience. Their consistently forward-looking analysis includes abundant suggestions and provides a helpful perspective when updating our business strategy.

Norio Yamada

Executive Officer and Chief General Manager, IT Center, Yamaha Motor Co., Ltd.

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