Digital Servitization by Oyanagi Construction as Cutting-Edge DX for the Construction Industry:

Abstract

A case study was performed to examine the new digital service developed by Oyanagi Construction in collaboration with Microsoft Corporation using Mixed Reality technology. With this technology, the contractor, buyer, engineer and other related parties can meet remotely and safely “walk around” and communicate with each other within full-scale (human-scale) models of construction projects, from the beginnings of the design process through to the completed construction. Digital servitization is normally used in response to customer needs, in order to better adapt and survive in a competitive marketplace. However, in this case, digital servitization was a natural outgrowth of the management philosophy of the company through its internal customer orientation (i.e., attempts to maximize employees’ satisfaction and safety). The president came across the DX technology by accident and became convinced that it was perfect for the company’s internal customer needs. The decision was then made to introduce the technology immediately, despite the potential economic risks involved. Thereafter, the company was also able to overcome the paradox of service digitalization thanks to their organizational structure, which was sufficiently sensitive to customer resistance, and flexibly adapt its strategic priorities within the context of customer communication. The management team has positioned DX as one of the means to realize its management philosophy. The team is taking on the challenge of improving the customer experience and the long working hours that have been the norm in the industry, thereby erasing the “3D” (Dirty, Dangerous and Demanding; Japanese: “3K”) image.

Keywords

• internal customer orientation
• management philosophy
• managerial decision making