Panasonic Automotive Systems President Nagayasu × dentsu BX The Future of Mobility Envisioned by the "Mobility Experience Design" Company

This series delves into the essence of leadership by interviewing top executives who are breaking all biases and driving business transformation within their companies as architects.

In Part 1, Mr. Masashi Nagayasu, President and Representative Director of Panasonic Automotive Systems, shared the background and process behind formulating their vision to become the world's leading "mobility experience design" company. In Part 2, Mr. Nagayasu continues the conversation with Dentsu Inc.'s Yuichiro Tashuku and Marie Kobayashi, discussing the future of mobility and business transformation following the vision formulation.

Part 1: Panasonic Automotive Systems President Nagai × dentsu BX: Transformation from an Automotive Business Company to a "Mobility Experience Design" Company

(From left) Mr. Yuichiro Tashuku and Ms. Marie Kobayashi of Dentsu Inc., President Masashi Nagayasu of Panasonic Automotive Systems

What is "Mobility Experience Design" in the era of automotive "Intelligence × Diversification"?

Kobayashi: Alongside our vision to become the world's leading "Travel Comfort Design" company, we also created a statement. President Nagai particularly appreciated the opening line: "We want to create a world where 'travel comfort' is as natural and comfortable as 'living comfort,' 'dressing comfort,' or 'sleeping comfort.'" His comment, "We want to deliver value of this magnitude to society," was very memorable.

Takou: It's impactful for a B2B company to champion language that represents end-users like this. I think it also signals our intent to lead the future of mobility alongside car manufacturers, to build that future together.

Nagae: For several years now, we've viewed ourselves as B2B, but also B2B2C. If we don't strive to understand the C—the end user—we can't create new value. We realized it's not enough to simply respond faithfully to manufacturers' requests. Amid remarkable technological innovation in vehicles like EVs and SDVs (Software Defined Vehicles), carmakers themselves are grappling with how to create original value and differentiate themselves. Going forward, unless we build relationships as "co-creation partners" with carmakers, finding answers together, we won't survive in this industry.

Takou: I feel this ties into the mobility industry's current topics of "vehicle intelligence and diversification." Within this context of intelligence × diversification, how does your company plan to design the "experience of mobility"?

Nagae: I believe software and AI technologies will be central to creating the "mobility experience" going forward. At the heart of intelligence lies the SDV—a vehicle that evolves its functions through software updates, much like a smartphone. And essential to realizing the SDV is HPC (High Performance Computing). This technology serves as the brain, supporting advanced judgment and control—processing vast amounts of information in real time, analyzing user states, and automatically adjusting the environment.

Our company boasts numerous engineers with experience developing products like televisions and mobile phones, giving us significant strength in software development. We will leverage this exceptional expertise to further focus on our HPC business. We must become the entity that realizes the ideal SDV, and I believe we can achieve that.

Another aspect tied to diversification is our innovation: "Cabin UX." We have developed sensors that read human states and devices that adjust the environment. Moving forward, we aim to connect these more intelligently, evolving them into technologies that respond to a person's feelings and state. For example, reading emotions from facial expressions or blood flow, then automatically adjusting lighting, sound, and climate control accordingly. This will enable us to deliver a comfortable "travel experience" tailored to each individual.

In other words, we are advancing the "intelligence" of the car through software and AI while also realizing "diversification" that adapts to the individual. We are confident we have already honed the technology to support both of these aspects and intend to continue strengthening it.

Streamlining Management and Advancing DEI: President Nagayasu's Transformation Initiatives

Takako: This ties into the topic of diversity, doesn't it? President Nagai personally oversees the promotion of DEI (Diversity, Equity, and Inclusion), correct?

Nagae: That's correct. Upon becoming president, I took on the responsibility for DEI myself. I wanted to start by transforming my own mindset first, creating a catalyst for change within the company and the industry. Looking around the company, perhaps due to the nature of our industry, I still see a predominance of men, and I feel that ways of thinking and values remain rather uniform. I believe that companies filled with people who think alike cannot generate new value. An environment where people with diverse backgrounds—gender, nationality, career paths, lifestyles—can gather and challenge themselves is precisely what leads to new ideas and business opportunities.

Kobayashi: Recently, we held a visual session with Mr. Nagayasu on the theme of "Deep Diving into Comfort." During that session, we discussed how "comfort" might be perceived completely differently depending on generation, gender, and individual values. We also conducted a session on "comfort" with younger employees, didn't we? And indeed, the differences were striking. Some find moderate tension comfortable, others prefer the lively buzz of a festival, while some value alone time. There were as many definitions of comfort as there were people. It really struck me when you mentioned that the "comfort of moving" your company creates shouldn't be based on a uniform value system; diversity is ideal. This perspective of valuing employee diversity seems closely connected to what you mentioned earlier, Nagayasu-san: "providing a 'comfort of moving' tailored to each individual."

Nagai: I believe valuing diversity is something we must continue no matter how management changes. It's not good for culture to change just because the top leadership changes, right?

Takou: Although you've been carved out from the Panasonic Group, I sensed that the employees still hold onto the pride of having the same founder. Valuing what remains constant while changing what needs to be changed. It truly feels like your company is in a period of transformation.

What impressed me most about President Nagae's reforms was abolishing the divisional structure under the keyword "streamlining management." Changing a structure cultivated by the headquarters group for nearly 100 years must have been a significant decision. What was the background?

Nagae: Our business inherently requires regionally focused, customer-specific delivery, so we've expanded globally along regional lines. However, it's also true that a "Japan-centric" structure persisted for many years.

Our previous "global business division-based management" had the advantage of enabling business division heads to make decisions at the business unit level, facilitating end-to-end operations. However, operationally, it tended to create silos, leading to inefficiencies, particularly in supply chain coordination and productivity. Furthermore, for customers, the differences between internal departments are irrelevant; what matters is "how the company as a whole responds." We felt the organization needed to return to a customer-centric perspective, leading us to make a significant shift toward a regional management structure. While it's still early days and there are certainly unknowns, I believe this marks a major turning point for us.

Takou: That's exactly the same mindset as "designing the experience of moving." I realized Mr. Nagayasu approaches things from a "user perspective" and drives transformation.

Creating a future where everyone moves stress-free and QOL improves through mobility

Kobayashi: I'd like to ask about the future of mobility that President Nagayasu envisions. You've mentioned that "each individual 'mobility experience' is closely intertwined with societal challenges." What specific mobility-related social challenges do you particularly consider important?

Nagai: The future of mobility I envision is creating a society where everyone can move stress-free. To achieve this, I particularly focus on how to support "mobility-disadvantaged individuals," especially those affected by aging. When mobility becomes difficult, life satisfaction and happiness decline. "Being able to move stress-free to wherever you want, whenever you want" is crucial, and that's the world I aim for.

Furthermore, the currently prominent "regional revitalization" initiative is deeply intertwined with enhancing mobility. The introduction of autonomous driving and mobility support in depopulated areas are key to this effort. However, significant hurdles exist, such as legal frameworks and safety concerns. Overcoming these barriers is crucial. Solving these challenges alone is difficult, so I want to tackle them by collaborating with diverse companies.

While many challenges exist, I also feel mobility has the power to create "joy." For example, the value of transportation in supporting extraordinary experiences like sports events or sightseeing. Another recent focus is "fan activities." Could we connect travel with events like concerts held in regional areas? I believe this could contribute to regional revitalization and is a new business challenge I want to pursue. I aim to contribute both to solving social issues and to creating experiences that move people's hearts.

Takou: This is an essential initiative as the aging population accelerates further. What does your company prioritize, and what do you communicate to employees to realize the future of mobility you envision?

Nagae: Our greatest strength is our people. I can say that with confidence. If each employee can challenge themselves more, we will become an even stronger company. In other words, our evolution hinges on whether we can create a culture where employees feel empowered to take on challenges.

To achieve this, we emphasize "thinking from scratch." We believe this mindset allows us to break free from past methods. By questioning whether current actions are truly necessary, it fosters new decision-making criteria.

We also place great importance on fostering a "culture that tolerates failure." We repeatedly emphasize that when failure occurs, we absolutely must not ask "why." Instead, we aim to build a culture where people constructively consider "how to prevent this failure in the future." We want to cultivate an environment where employees can try things without fear of failure, feeling secure. On top of that, we tell our employees to maintain a "healthy sense of urgency." While stoking fear alone can make people shrink back, maintaining a healthy sense of urgency should be a crucial foundation for taking on challenges.

Kobayashi: On a personal note, I find your company's people to be very humble, and I get the impression you don't overly emphasize your own value. Yet, when I actually hear about your work, it's all about highly unique ventures, meticulous insights, and distinctive solutions – the kind of stories you just want to share with someone. I'm also frequently impressed by the professionalism and character of your employees.

That's precisely why I believe we can help draw out the value your company already possesses from an external perspective, articulate it, and communicate it to the world.

Takou: Your company is currently in the midst of significant transformation. We believe we can contribute by driving that transformation through the power of communication and creativity – the ability to truly connect with people. We want to be the force that visualizes your vision and determination as "strategy" and "action plans." By permeating this vision to diverse stakeholders, we aim to generate anticipation, heighten enthusiasm, and create the driving force for change.

Nagae: Thank you. Looking back on our work together, I can only express gratitude for your creation of the term "Transition Experience Design." Through workshops and various other processes, we have gained a strong sense of truly "creating value together." That is precisely why we would find it reassuring to continue having you as our unwavering co-creation partner, supporting our transformation from multiple angles and lending your strength.