Company Announcements

- Gaining strategic benefits from leading global technologies by becoming a startup customer -

TOKYO--(BUSINESS WIRE)--Oct. 10, 2024-- OKI (TOKYO: 6703) is adopting the venture client model (“VCM”), which is currently gaining traction in Europe and the US, to promptly provide solutions to increasingly complex social issues—an approach taken as part of OKI’s efforts to rapidly incorporate leading global technologies into its business operations. Having established processes and an internal organization to implement VCM, the company has now begun working with 27pilots Deloitte GmbH (Head office: Munich, Germany; CEO: Gregor Gimmy).

Engaged in global open innovation initiatives since May 2024 (Note 1), OKI recently launched a venture client unit (Note 2) in collaboration with 27pilots to promote the use of VCM with the goal of accelerating these activities and achieving sustainable growth.

Traditional models of working with startups—investment and acceleration—have faced various challenges, including the low rate of success of such collaborations with startups. VCM addresses these issues by allowing a company to become a customer of the startup, and to be directly involved in strategic problem-solving, in order to gain strategic benefits. Directly purchasing and evaluating the products of startups minimizes the risks and costs associated with intellectual property negotiations, which are often obstacles in such endeavors, and accelerates decision-making. VCM uses standardized processes to eliminate factors that typically hinder joint efforts with startups, enabling rapid processing of large-volume transactions.

Adopting VCM to implement a range of leading technologies strategically, directly, and rapidly will allow OKI to quickly test, effectively evaluate, and integrate leading global technologies into its operations. This makes it possible for OKI to conduct open innovation activities efficiently, and rapidly and reliably obtain broad-based strategic benefits from limited resources.

In its Technology Strategy announced in November 2023, OKI proposed the Edge Platform (Note 3) as a technology concept for swiftly providing solutions to address social issues, and the acceleration of open innovation activities via VCM is vital to the realization of this concept. According to Executive Officer Kurato Maeno, who also serves as Chief Technology Officer and Head of Technology Division: “By continuously and efficiently incorporating global technological innovations into its business through VCM, OKI aims to provide rapid solutions to increasingly complex social issues.”

OKI plans to provide stage programs, seminars, and exhibitions related to VCM at OKI WORLD 2024, scheduled for October 23 and 24, 2024.

VCM implementing organization

• VCM operational functions will be based at the Technology Division, which forms a horizontal technical division spanning across OKI.
• Based on the strategies and technical challenges identified by the business divisions, this function will then determine which technical challenges need to be resolved through external collaboration, and thereafter draw up lists of startups capable of resolving them.
• In collaboration with business divisions, it will promptly advance the evaluation and procurement of startup products, the development of peripheral technologies and systems, and on-site verifications based on usage cases, with the goal of achieving business outcomes using startup technologies at an early stage.
• The goal of these activities is to achieve rapid growth by actively incorporating global technological innovations into the Edge Platform concept outlined in its Technology Strategy.

What is VCM?

The venture client model is a method that involves becoming a customer of leading global startups and systematically using their technologies and services for various strategic benefits, including revenue enhancement and cost reduction. It was launched as a reproducible model by Gregor Gimmy, the CEO of 27pilots, a Deloitte Germany group company, when he was working for BMW through an initiative with BMW Startup Garage. In Japan, 27pilots has offered services since December 2023 in collaboration with Deloitte Tohmatsu Venture Support Co., Ltd., with COO Masayuki Kimura serving as 27pilots Japan Country Head and Lead Partner.
https://www.27pilots.com/27pilots-japan/

About Oki Electric Industry Co., Ltd. (OKI)

Founded in 1881, OKI is Japan's leading information and telecommunication manufacturer. Headquartered in Tokyo, Japan, OKI provides top-quality products, technologies, and solutions to customers through its Public Solutions, Enterprise Solutions, Component Products, and Electronics Manufacturing Services businesses. Its various business divisions function synergistically to bring to market exciting new products and technologies that meet a wide range of customer needs in various sectors. Visit OKI's global website at https://www.oki.com/.

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Press contact:
Oki Electric Industry Co., Ltd.
Public Relations
E-mail: press@oki.com

Customer contact:
Oki Electric Industry Co., Ltd.
Technology Planning & Management Division, Technology Division
Contact Form: https://www.oki.com/cgi-bin/inquiryForm.cgi?p=019e

Source: Oki Electric Industry Co., Ltd.