Accelerating Digitalization
Various business transformations are taking place due to the evolution of digital technology and networks. The digitization of business will become a trend of the future as technology evolves, and will change our society significantly. The Internet is a huge network that connects distributed databases, connecting content and people globally. The latest technology is rapidly changing issues that were difficult to solve offline alone. Advanced technologies such as "social," "smartphone," "cloud," and "web communication" are deepening their cooperation and dependence in discussing next-generation business strategies in all industries, just like the smart city concept that makes urban and regional functions more efficient. increase. Not only conventional businesses, but even web businesses that have emerged in recent years are constantly in need of innovation that responds to evolution.
Introduction
The world is filled with complex matters. Assuming the principles of the universe, various situations and people coexist while time flows incessantly. Grasping the essence of things in business involves classifying and conceptualizing these intricately interwoven elements. Our livelihood relies on reevaluating the allocation of resources and goods, relative to the total energy of the target, to promote innovation and minimize waste. The term "Bido" refers to the path of understanding the essence of things and creating a "beautiful future" based on insightful perspectives. To comprehend the essence of things, one needs the ability to abstractly grasp and categorize the primary characteristics of the subject. Moreover, the "conceptualization ability" is necessary to refine and systematically organize abstracted elements. When complexity is overcome, and a pursuit of simplicity ensues, "optimization" emerges. In essence, it represents the 'pursuit of optimization' within economic activities. This content defines "Bido" as a unique concept within the perspective of Optimizer, elucidating its approach.
What Beauty Is
When we are faced with "creations," we tend to think that we have only seen the surface and have overlooked the essentials. Whether it's art, business, or academics, if you don't have your own way of looking at things and thinking, will you really be able to accomplish what you're doing? We must face the “truth” that those who can do that have the power to create, produce something, and leave results. Artist Joseph Beuys understands the roots of this and advocated that "Every human being can contribute to the well-being of society through his or her own creativity." He left us with the belief that art is the only possibility for evolution, the only possibility for changing the possibilities of the world.
This is not referring to the conventional "art," but an expanded concept of art that nurtures the invisible essence into tangible form and further develops and expands the ways of seeing and perceiving things. It made us realize that everyone involved in the process of "creation" is an artist. Since work is an act of production, there is room for creation, and we are expected to be artists. There is a synergy between creativity and productivity, where higher creativity leads to greater productivity. It can be said that all activities, including business projects and sales activities, are involved in the creation of works. Each of us is an artist who collectively participates in social sculpture towards a single theme of vision.
Based on these assumptions, creations, whether tangible or intangible, have a way of thinking and a thought process when they are created. It's called art thinking, and it's not a systemic ability with a known "answer", but an aesthetic sense as a competency that demonstrates unique creativity. We pursue an ideal society every day and work on social sculptures. Although the sense of "beautiful" differs from person to person, it can generally be said that it is "ideal" as a creation. It can be said that it is "beautiful" to realize a more prosperous society through innovation.
Data-driven Business
In a digitalized society, the economy and businesses are rapidly quantified, and companies with strong PDCA capabilities that can adapt to changes emerge. To achieve data-driven marketing, it is essential to accurately analyze the market, create hypotheses based on past events to predict the future, and develop an execution plan to collect validation data with minimum costs. However, while being cautious and cost-conscious, one should not neglect the timeline. A day's delay can result in missed opportunities. It is desirable to design the confirmation process concurrently with the hypothesis. The execution plan itself may encounter losses due to checkpoint frequency. Be cautious not to make "execution" the sole focus, as neglecting this process can lead to missing the goal. Interventions by multidimensional hypothesis validation management and advertising partners can also be beneficial. Anticipating validation results in advance enables preparation of action plans one step ahead. The speed of the next strategy can be determined by whether the same hypothesis validation is conducted over three months in a competitive process with rivals or achieved within one month. Needless to say, optimization power that extends beyond internal organizational strategies to encompass the entire industry and economy becomes the driving force of management.
“Optimization Five Theory” of Marketing Advocated by Optimizer
When breaking down the elements that constitute sales from a marketing perspective, the Optimizer attempts to analyze them using five unique indicators as variables.
Reach
It becomes the population of people living. It defines buyers who should be targeted, taking into account language, region, customs, attributes, behavior, etc. It is necessary to derive the optimal value of customer attraction cost from setting considering both product out and market in and interlocking with other indicators.
Average sale amount
The average amount a customer pays for a single purchase. It is possible to encourage changes such as combination purchases and bulk purchases not only by product prices but also by services and promotions.
Purchase rate (CVR)
It is the probability that the product will be sold for the number of visits by the customer. It varies greatly depending on not only product promotion and presentation skills for visitors, but also the degree of matching with the target, the lead to the visit, the length of stay, and the purchase steps.
Number of repeats (Repeat)
The point of view is how many times a customer who visits once will visit and make a purchase. It is important to design and manage customer relationships to maximize lifetime value.
Speed/Turnover
The speed of consumption per customer. Not only improving location and time constraints, but also increasing customer satisfaction early at the same time increases turnover.
Equations of Optimization Five Theory
If all indicators are doubled, the theoretical sales will change to 32 times. The optimization approach will vary depending on which indicators are controlled, and it is essential to design the verification considering the interdependence with other indicators. 2 × 2 × 2 × 2 × 2 = 32 times.
Optimization area
"Optimize" is an approach to improve the efficiency of economic activities and reduce costs in the diversifying information society. We are working on this theme centering on "optimization by marketing". Leveraging our core competencies, we have pursued advanced performance marketing, accumulated vertical achievements, and expanded our business domains to include alliances, distribution, assets, and energy. In the future, we will strengthen our business areas and take on challenges in new fields in order to move to a further stage.