Dentsu Consulting Inc. and GIX Inc. have formed a business alliance to support growth strategies based on diverse corporate data. In Part 1, using the railway industry as an example, Masataka Sugimoto, Managing Executive Officer at Dentsu Consulting Inc., and Hiroshi Yamada, Executive Officer and Deputy Head of the Data-Informed Business Division at GIX, discussed the significance and potential of data utilization based on topics relevant to this sector.
During the discussion, the potential emerged for creating new businesses and services closely aligned with consumers' lives by combining the diverse data held by railway groups. Part 2 will explore more concretely the urban development and regional revitalization achievable by railway company groups, as well as growth strategies evolving through DI (Data-Informed).
Combining railway group data with timely local information to create new mobility and consumption demand
Sugimoto: As briefly touched upon in Part 1, for railway companies, how to create attractive cities in this upcoming Well-being era will become an increasingly significant mission, and expectations from the surrounding community will also grow. How can we transform the lives of people spending much of their time along our lines into "our town" – one that brings diverse meaning and richness? Moving beyond traditional market share competition as individual companies or groups, how can we increase the "mindshare" – the feeling that "it's great to live along this line"? That, I believe, will become the very foundation of railway group management going forward.
Yamada: To achieve this, the key point remains how we can become a presence that truly supports residents, while thoroughly protecting personal information and acquiring/utilizing resident data.
Sugimoto: That goes without saying. In this regard, the benefits of integrating IC transit cards with credit cards offered by the railway group are significant. By seamlessly designing the customer experience (CX) that connects travel purposes like shopping and tourism along the line with transportation modes like rail and bus, we can stimulate residents' mobility and consumption needs, greatly contributing to regional economic revitalization.
Yamada: Especially now with smartphones being so widespread, we can instantly link transportation usage data with smartphones. This means we can deliver location-based information based on transportation data in a timely manner. Consequently, it's also possible to naturally deliver the most suitable information to users right where they are at any given moment.
Mr. Hiroshi Yamada, Executive Officer, Deputy Head of Data-Informed Business Division, and Design & Science Division Leader, GIX Corporation
Sugimoto: Essentially, since information is now aggregated on smartphones, we can trigger new behaviors through recommendations and expand consumption by promoting purchases. Beyond the railway group companies that already have various services and customer touchpoints along the lines, we believe that by promptly delivering information generated and distributed within local communities and media to each individual, we can stimulate mobility and consumption demand through hyperlocal information.
Railway companies, capable of designing CX based on local data, can collaborate with various regional organizations and communities to connect local residents with local businesses. We are also watching closely how major railway groups will deepen engagement with residents, as exemplified by the music festival they held in the metaverse this past March—an advanced initiative emerging during the pandemic. Business opportunities are now emerging for railway groups to leverage their accumulated real assets and cutting-edge digital technologies to create new mobility and consumption demand.
Leveraging information gathered from tourism campaigns for subsequent initiatives, driving the PDCA cycle
Yamada: While our discussion has focused on railway companies so far, the practice of integrating diverse data to drive urban development and regional revitalization is already happening nationwide in Japan. Dentsu Consulting Inc. also provides various forms of support across different regions, right?
Sugimoto: One project I've been involved with recently is in Fukui Prefecture, looking ahead to the extension of the Hokuriku Shinkansen in spring 2024. Fukui Bank and Fukui Shimbun established "Fukui Digital Co., Ltd." to advance regional DX. They operate the "Fuku App," which delivers local news, tourism information, disaster prevention alerts, and provides regional currency and coupons. The app incorporates various features tailored to local residents and tourists. Plans include collaborating with local urban development, commerce, tourism organizations, as well as transportation and commercial businesses to launch new services.
Mr. Masataka Sugimoto, Senior Partner and Managing Executive Officer, Dentsu Consulting Inc.
Yamada: When advancing DX like this, combining and analyzing existing data would be ideal, but in reality, combining existing data isn't simple. Therefore, I believe it's equally important to adopt the perspective of accumulating and utilizing data collaboratively as initiatives progress.
For example, GIX's "MyGle" app enables personalized digital stamp rallies tailored to individual interests and preferences. It also includes functions to analyze and utilize data post-campaign for informing future initiatives. In DX and data utilization, this kind of mechanism for driving the PDCA cycle of initiatives is crucial.
Sugimoto: The stamp rally Gix conducted with a major railway company and a local government is a perfect example of that, right?
Yamada: Yes. For the local government, the goal was to promote tourism through the stamp rally while also gaining data and know-how for future initiative planning. For the major railway company, creating new reasons for travel ultimately leads to expanding their transportation business. We believe similar initiatives are possible not just in tourism, but in everyday areas as well.
Sugimoto: Until now, transportation services provided by rail companies were purely a means to reach a destination. Moving forward, however, by adopting a resident-centric approach, rail groups can integrate with tourist facilities and individual shops. Using data as a starting point, they can create new purposes and behaviors. Fundamentally, "MyGuru" is a service where the act of moving itself is the purpose. Furthermore, using that to connect to and expand new initiatives represents a true shift in thinking and is a very unique approach.
Yamada: Thank you. Information gathered by people actually exploring the city through stamp rallies—like "That shop has crazy lines" or "Weekday afternoons on this day are quiet, so that's the best time to go"—is incredibly valuable information not found online. I believe making such insights accessible not just to tourists but also to locals in their daily lives could further revitalize the entire city.
Sugimoto: Yes, that seems like something we could implement fairly quickly.
Yamada: Yes. In B2C business, you rarely get immediate answers from data. It's crucial to collect data through mechanisms like "MyGuru," verify the results of initiatives, and cycle through trial and error. Even more important is what insights you gain from the data.
This is precisely where we look to Dentsu Consulting Inc., as marketing and creative professionals. We believe that working with Dentsu Consulting Inc. to drive the cycle of "value creation" and "gaining support"—a concept also discussed in our first dialogue —represents the most significant contribution GIX can make to B2C businesses.
Sugimoto: As a growth-focused integrated consulting firm leveraging "right brain × left brain × unique talents," we have primarily supported consumer-centric business model transformation and new venture creation. By multiplying our growth domain expertise with GIX's data-informed insights and skills, we can create new synergies and generate new services. We will drive businesses toward success by implementing data-driven PDCA cycles. We aim to advance these initiatives by pooling the collective wisdom of diverse stakeholders, working together to build sustainable, well-being-focused local communities.
This time, we focused on the railway industry and discussed B2C growth strategies evolving through DI. With the right perspective, data can provide unprecedented insights by integrating and analyzing various dimensions and domains—such as movement, facilities, individual stores, areas, and time. Our ultimate goal is to realize UX, CX, and a well-being society that closely aligns with each individual in our increasingly diverse society. Dentsu Consulting Inc. and GIX are here to provide optimal support and help build the necessary frameworks to achieve this.
To overcome the pandemic and succeed with future growth strategies, it is crucial to create new businesses and services based on a comprehensive understanding of consumers and their surrounding environments. Mr. Sugimoto of Dentsu Consulting Inc., who leads "Growth Consulting," has been involved in launching numerous new businesses through his experience working at major railway companies and global consulting firms. By combining Dentsu Consulting Inc.'s "Growth Consulting" with GIX's "DI," we will deliver even greater value.
The information published at this time is as follows.
Completed the Doctoral Program (Postgraduate Course) at Nagoya University Graduate School of Science. During the doctoral program, concurrently served as a JSPS Research Fellow. After gaining experience as a researcher in organic chemistry at a business corporation, joined GIX Corporation in 2015. In his current role, he drives clients' data-informed decision-making through DI consulting services. These services integrate two key elements: "Design"—the process of designing effective data utilization methods through trial and error—and "Science"—the analysis of data, including building machine learning models, to uncover the mechanisms behind phenomena.
Masataka Sugimoto
Dentsu Inc. Consulting Inc.
An intrapreneur, new business consultant, and entrepreneurship educator. Worked for a major railway company for 10 years, creating multiple new businesses. Spent 10 years at Deloitte/PwC, serving as head of customer strategy, new business, regional revitalization teams, and regional office launches. Joined in 2019. Graduated from Keio University's Faculty of Policy Management and Kyushu University's Graduate School of Business. Visiting Professor at Kyushu University and Lecturer at Asia University Graduate School of Business. Holds a Master of Business Administration (MBA).
