Startups × Dentsu Inc.: Challenging New Value Creation

Joined forces with Dentsu Inc. to "defeat Dentsu Inc."

Asai: NEW STANDARD originally launched as TABILABO, operating the millennial-focused web media " TABI LABO." In May 2019, it underwent a rebranding that included a name change. I joined the team at that time. What was the deciding factor in accepting Dentsu Inc. as a partner?

Hisashi: Well, first, we had a goal since our founding in 2014: "Defeat Dentsu Inc." (laughs). As new media platforms centered around smartphones kept emerging, we pondered how to build a new advertising business model and become the "next-generation Dentsu Inc.". To achieve that, we pursued a vertically integrated model combining media and advertising.

But obviously, we realized it would be tough to take down Dentsu Inc. on our own (laughs). So, we decided to combine Dentsu Inc.'s long-standing client relationships and the capabilities of its employees with our own distinct capabilities to create a business model centered around communication.

Our primary business areas now are Media, Product, and Business Design & Brand Studio. We convert the know-how cultivated through media operations into tools and frameworks to provide to our clients.

Hisashi: What impression do you have of NEW STANDARD as a company, Mr. Asai?

Asai: Everyone, starting with Hisashi, cherishes a culture of "creating what we want with our own hands." They often use the word "groove," emphasizing how important it is for team members' thoughts to resonate. Even for me, joining from outside, it was an environment where I could easily and actively share my opinions.

What particularly stands out is when I first joined the team. Mr. Hisashi told me, "Don't see us as 'clients.' Become a 'partner' who thinks about how to make this business succeed."

Hisashi: The reason our collaboration with Dentsu Inc. is working so well is precisely because Asai-san approaches it as a "partner." You see, startups often face more challenges than successes. Roughly 80% of what happens is bad news (laughs). Only the successful 20% gets covered by the media, shaping the public's perception of startups. In typical client relationships, it's hard to share more than that "successful 20%."

But with Mr. Asai, we shared the full 80% of the tough information and got him deeply involved. Dentsu Inc. isn't just a company that handles advertising and communications for that 20% of success; it has the capability to "solve problems and grow businesses." We've had Mr. Asai fully leverage that power of Dentsu Inc. within the company.

Asai: I've always believed that Dentsu Inc.'s contribution shouldn't be limited to simple promotion, as that might not necessarily benefit clients in the medium to long term. I constantly pondered what kind of contribution could be left as a lasting asset for the company. Things like changing internal mindsets, clarifying where our value truly lies, establishing a model that can reliably generate revenue, and figuring out how to make the company's value proposition something owned by the organization, not just individuals. I've been entrusted with work focused on these areas.

The "OMO and CX Era" arrived abruptly with the pandemic

Mr. Hisashi

Asai: We can't avoid touching on this now. The impact of COVID-19 has completely transformed what was previously "normal," and society is demanding a NEW STANDARD, a new set of values. Can you share something positive that emerged from collaborating with Dentsu Inc. under these circumstances?

Hisashi: First, even before the pandemic, we were advocating that the era of "OMO" (※1) and "CX" (※2), centered around SDGs-like values and standards, was coming! A major theme of our collaboration with Dentsu Inc. was pioneering the "market of the OMO and CX era" using new smartphone-centric communication and creative approaches as our weapons.

※1 OMO (Online Merges with Offline)
A marketing concept meaning the fusion of online and offline—breaking down barriers between the internet and physical stores (online and offline)—to design customer journeys from the customer's perspective.
 

※2　CX (Customer Experience)
Customer Experience. A concept emphasizing the "emotional value" throughout the entire process—not just the value of the product or service itself, but also the journey from purchase to use and post-purchase support. NEW STANDARD positions not just the product or service, but the entire CX as the "product."
 

Just as we were ready to implement this, the COVID-19 pandemic struck. Unexpectedly, the concepts of OMO and CX spread with tremendous force throughout society. We ourselves have accelerated everything, reorganizing our workstyle reforms to fully leverage online tools—including releasing an entire office floor and restructuring based on telework.

Even for client projects we've secured in recent months, everything from proposals to communication has been completed entirely online without a single in-person meeting. Ultimately, we recognize that the new worldview we predicted is advancing.

Asai: Originally, we developed our own business and client work using the "NEW STANDARD Framework" (a framework for re-evaluating traditional values based on new values and standards emerging worldwide). It feels like the times have suddenly caught up with us.

Hisashi: I believe OMO has permeated not just the marketing domain, but all values and realities. For NEW STANDARD, this represents an extremely positive change.

In parallel, with support from Asai and others, we also worked to clarify our company's capabilities.

Why does NEW STANDARD do it?
Why can only NEW STANDARD do it?

We thoroughly articulated and systematized these questions, ultimately establishing our frameworks, proposal materials, and media assets in a highly reproducible format. Having Dentsu Inc. accompany us ensured objectivity while articulating and formalizing these elements.

Asai: I'm very glad to hear you say that. What benefits do you see in "clarifying our strengths through an external perspective"?

Hisashi: While we believed "the era of OMO and CX is coming," we couldn't see exactly when or how it would arrive. Many startups face the same challenge—they don't fully understand how the new future they believe in will actually permeate society.

In other words, it's difficult to link what we believe in with the actual movements in the real world. This is precisely where communication planning knowledge comes into play, right? By constantly receiving feedback from our partner, Dentsu Inc., and driving the PDCA cycle, I believe we were able to give shape to our convictions.

Over this past year, defining "NEW STANDARD's capabilities" has made everything reproducible. I'm confident we can grow as a company, and honestly, I believe we're in the best state we've ever been in since founding the company.

The Potential of "Ecosystem-Based Collaboration" Where Large Corporations and Startups Intermingle

Mr. Asai

Asai: Recently, NEW STANDARD and Dentsu Digital Inc. launched "BDX (Brand Digital Transformation)," a service that provides one-stop support for D2C Inc. businesses—covering everything from domestic and international market research, product and brand development, business design, sales channel construction and operation, to business growth.

How to leverage NEW STANDARD's assets? BDX emerged after nearly a year of deliberation. It's precisely the kind of service that could only come from NEW STANDARD—a company that started with media, expanded its business, and has been deeply involved in branding and D2C Inc. ventures.

Hisashi: We've been in the media business, so we have user insights and core communities, making it easier to get feedback for product improvements. We've also been running our own D2C Inc. business. This service combines our know-how with Dentsu Digital Inc.'s expertise.

Regarding this service, we define it as:

"digitally transforming corporate brands."

It means re-creating brand value by leveraging digital power to transform brands in various ways through D2C Inc., not just selling products directly online. That's why it's called "BDX."

Asai: As the Dentsu Group, we can leverage our accumulated experience collaborating with NEW STANDARD to create new value for society. I'm incredibly excited about what lies ahead.

Dentsu Digital Inc. PR Release
https://dentsudigital.co.jp/release/2020/0910-000612/

Hisashi: I agree. Since we started with media, when we explain what Dentsu Inc. and NEW STANDARD have built to companies with media businesses, like major publishers, they often say, "We want that capability too!" (laughs). Over this past year, I've really felt the significance of what both companies have been trying and the social need for it.

Asai: What we've been doing together could be called "Media DX," right? If we define DX as visualizing the value of our assets in a measurable form to create new value, then I think the journey both companies have taken so far is precisely this: continuously trying to create new value from media companies' assets through Media DX.

That said, a "brand DX solution" like this one might be something a media company alone or an advertising agency alone could achieve. Where do you think the strengths and uniqueness that came from deliberately collaborating lie?

Hisashi: There are several. But the biggest factor is undoubtedly the sheer volume and proven track record of data held by the Dentsu Group, which is among the world's best, both domestically and internationally. And right now, the most effective way to maximize the value of this formidable asset is to combine it with the ultra-sharp capabilities of startups that truly capture the spirit of the times. Conversely, you could say that startups alone can achieve relatively little (laughs). By multiplying startups like ours with Dentsu Inc., we can create what's truly needed in today's era.

Asai: Thank you for your encouraging comments. What kind of challenges do you hope to take on through collaboration with Dentsu Inc. going forward?

Hisashi: Japan, despite everything, has a large market base, so rapid change wasn't demanded. However, the pandemic has made even previously rock-solid companies feel the need to shift to new values, the so-called "NEW STANDARD." Collaboration between Japanese companies and startups still has high hurdles, but by partnering with Dentsu Inc., we've lowered those hurdles. I believe many new possibilities will emerge from here.

Asai: For us, this represents a major opportunity for an advertising agency to venture into new business domains. My personal goal, collaborating with NEW STANDARD, is to challenge myself not just to sell products, but to create new value that truly benefits people.

Hisashi: Together with Dentsu Inc., we've built various capabilities and assets like the "NEW STANDARD Framework" and "BDX." Our goal is simple: to create new markets. To achieve this, we want to continuously generate new seeds and value propositions alongside Dentsu Inc., our clients, and partners.

Through our efforts this past year, we've come to understand how crucial ecosystems and collaborations with large corporations are for startups. Collaboration with Dentsu Inc. isn't just simple client work in many ways. For example, right now, Mr. Asai is lecturing at NEW STANDARD's company-wide study sessions, sharing the know-how he acquired at Dentsu Inc. Conversely, we also speak at study sessions and internal seminars for Dentsu Inc. planners. We feel this kind of "ecosystem-based" exchange, where we mix the blood of both companies and it's not just about sales, is extremely important.

Asai: That's precisely what I strongly feel too. By joining NEW STANDARD and seeing Dentsu Inc. "from the outside," I've gained fresh insight into the strengths and weaknesses of Dentsu Inc.'s planners. I truly believe we need to increase the number of members working like me. This will absolutely contribute to Dentsu Inc.'s future strength. I also want to be more proactive in promoting this working style internally – "going to a startup while remaining a Dentsu Inc. employee."

That said, I still have a lot left to accomplish at NEW STANDARD, so I want to try various things with everyone. I hope to contribute to NEW STANDARD's growth with a long-term perspective while also growing myself.

Hisashi: If we could get two or three more people like Asai-san coming over from Dentsu Inc., it would be incredible (laughs). Looking forward to continuing to work with you!

*This two-shot photo was taken in 2019.

NEW STANDARD sends out a weekly newsletter every Tuesday packed with trends on SDGs and the global millennial generation. Please register here if you're interested.

To learn more about NEW STANDARD's framework, please see here.

As the startup ecosystem expands, the Dentsu Group has launched numerous initiatives to support startups.

 

These include "growing alongside startups" through investment and business development, "boosting momentum with startups" by hosting accelerator events, and proposing optimal marketing solutions "for startups."

 

For details on individual services, please see the links below.

<Investment & Business Development>

■Dentsu Ventures Website | Web Dentsu News Series
……A corporate venture capital fund that invests globally in ventures, primarily overseas companies.

&nbsp;

＜Accelerator＞

■SPORTS TECH TOKYO　&nbsp; HP　Web Dentsu Inc. News Series
……An acceleration program focused on the theme of Sports × Technology. It creates various business opportunities in collaboration with companies and sports-related organizations.

&nbsp;

■GRASSHOPPER 　HP
……An acceleration program that provides multifaceted support to startups creating services and products that astonish the world.

&nbsp;

<Solution Consulting>

■TANTEKI HPWeb Dentsu Inc. News Serialization
……We transform startups' cutting-edge technologies and ideas into "communicable" forms through the power of copywriting and design.

&nbsp;

■Dentsu Inc. Growth Design Unit Release:Web Dentsu News Series
……We invest skilled "people" into each stage of a startup's journey, supporting growth through hands-on consulting.