The culture of R&D will change from fibona.
The project owner talks about the progress of the project over the past two years and its future.
2021.08.12
This year marks the third year of the fibona open innovation program from the Shiseido Research Institute, after the project launched in July 2019.
“Co-creation with Startups,” in which we engage with startups to create innovation; "Co-Creation with Consumers," in which researchers and consumers communicate directly with each other to develop products and solutions; "Speedy trial," in which products utilizing technology developed through research are quickly introduced to the market as beta versions; and "Cultivation," in which researchers' enthusiasm and ideas are stimulated through interaction with people from different industries, have been aimed at realizing beauty innovation.
What has fibona gained from its efforts over the past two years? What kind of efforts has fibona made to get rid of its position as a "long-established company that is slow in decision-making and speed of change? Hidefumi Araki, Project Owner and Vice President of the R&D Strategy Department, looks back on fibona's progress and talks its future prospects.
Sense of crisis felt by Shiseido's R&D sites
──Once again, please tell us about the background of the establishment of fibona.
Araki:
Since 2014, when the current CEO, Masahiko Uotani, took office, the company has implemented a variety of measures in response to a clear direction: "Let's change from a Japanese cosmetics manufacturer to a global beauty company.” As part of this transformation, in 2019, the R&D base will be relocated to Minato Mirai. Shiseido Global Innovation Center, commonly known as S/PARK, was established as an urban open laboratory.
Until then, Shiseido's research style was to start with basic research, spend about two to four years gaining new technical knowledge, and then go through applied research to product development. In other words, it took a total of five to ten years to develop a product.
However, the accelerating pace of change in the world has made it impossible to keep up with market trends using only the conventional research style.
──As the trend has accelerated, have you also seen the disadvantages of the unique development approach of large companies?
Araki:
Yes, I have. In the past, product development based on solid research results was Shiseido's strength. However, since entering the 2010s, it has become difficult for this to become a strength. Of course, we were aware of this within the company, and so we gradually began to hear people saying, "We should seek a value development model that is different from the conventional one.”
Furthermore, as we expanded the definition of the company's business domain from "cosmetics" to "general beauty," there was a sense of crisis that the proprietary technologies we had accumulated up to this point would no longer be sufficient.
If this is the case, then we should not follow the conventional research-driven model, but rather seek a new way of research and development, starting close to the market and consumers, in partnership and collaboration with new technologies outside the company. fibona was born from this process as an open innovation program.
A "new form of R&D" shown to researchers
──The Open Innovation Program was a big change for the researchers, wasn't it?
Araki:
Actually, one of our goals in launching fibona was to change the mindset of our researchers.
Many of Shiseido's researchers are what you might call "honor student types.” Of course, they are excellent researchers, and they are good at having a task and working diligently on it. On the other hand, I felt that there are very few types of researchers who are willing to take on the challenges of projects with a high degree of uncertainty about the future.
Under such circumstances, it is difficult to suddenly say, "Let's collaborate with outside parties.” That is why we thought it would be better to show a new form of research and development through the Open Innovation Program, and tell people that they can try this approach as well.
──How did the researchers react?
Araki:
At first, the reaction was still very wait-and-see. However, over the past two years, we have visibly presented measures such as crowdfunding launches, co-creation with startup companies, and sessions with outside parties, and I feel that we have conveyed the image of collaboration with outside parties. The fact that the number of people wishing to participate in fibona has increased dramatically in recent years is proof of this.
The number of applicants, especially from the younger generation, is remarkable. The number of researchers who express a specific vision of wanting to use this technology for manufacturing has also increased. I think they are now able to envision how they can use fibona in this way.
The core of fibona is "the fusion of diverse knowledge and people”
──It has been two years since the start of fibona. What do you still value and what do you want to change?
Araki:
First, the one thing that has not changed consistently is our stance of aiming to "integrate diverse knowledge and people". This is the main concept that we dare not change and will continue to adhere to. This concept is the core of fibona, and S/PARK, which integrates research facilities and communication space with customers, is also designed based on this concept.
This ties in with the trend discussion, but it used to be that customers would come to a cosmetics counter, have their skin analyzed, and a beauty consultant would recommend products. It was the manufacturer's role to know the right answer and to tell them. However, now that anyone can obtain as much information as they want thanks to the internet, the asymmetry of information is no longer the case. In fact, it is not unusual for customers to have more diverse information than we do. In this case, we, as manufacturers, must change our style of value creation by referring to the words of our customers based on their real-life experiences.
On the other hand, what I am consciously trying to change is "the impression of Shiseido from the outside.” Because Shiseido is a long-established company, the public still has a strong impression of Shiseido as a large company that is slow in decision-making and project implementation. I would like to do something to dispel this image through fibona.
Why fibona is holding a Pitch Contest
──One of the activities of fibona is "Co-Creation with Startups".
Araki:
“Co-Creation with Startups" has been searching for startups to co-create with through a pitch contest
We chose the pitch contest format because we wanted to promote collaboration not only through technology, but also through getting to know each other's passions and visions in depth.
Other manufacturers have similar projects, but fibona's commitment is to collaborate with Shiseido's researchers, who are firmly in the forefront, facing each other as partners. We do not simply want new technologies. It takes time to discover new knowledge, so we want to produce results while taking advantage of each other's strengths.
In that sense, I believe that we are in an equal position to be judged by startups in the serious competition of a pitch event.
──For startup companies, what are the benefits of partnering with Shiseido?
Araki:
First of all, we believe that the research facilities at S/PARK, located in Minato Mirai, will be more than sufficient for the project. The startups that become co-creation partners can move into a room in the collaboration lab on the fourth floor of S/PARK to conduct joint research, and when prototypes are developed, they can use the first and second floors of the facility to try them out on the general public. We believe that the ability to obtain feedback from ordinary consumers will also be attractive.
Another major advantage will be that we will be able to offer the knowledge of dermatology research that we have developed over the years, which is one of our strengths.Currently, we have projects underway with each of the three startups selected for the 2019 Pitch Contest.
I was surprised to see applications from fields that I had not expected to co-create with before the contest began, and all three companies had unique and special skills that made me think, "With these people, I might be able to do something new.”
──Is the selection process all done by Shiseido researchers?
Araki:
All the documents are read through by our researchers from the document screening stage. One of Shiseido's strengths is that we have many researchers who have completed master's and doctoral degrees in science. In other words, researchers with a keen eye in each field are able to make firm judgments on the potential of new technologies.
Of course, the results obtained through joint development will be shared by both companies through joint patent applications. All three companies are still in the process of developing the product, but we plan to continue to work closely with them until the final innovation leads to a product.
The Co-Creation Program is scheduled to be held again this year, and we look forward to receiving applications from startup companies that are confident in their technology, even if it is not directly related to cosmetics or beauty.
fibona will change Shiseido's R&D culture
──It can be seen that the activities of fibona over the past two years have stimulated and influenced Shiseido's research and development in various ways. Finally, please tell us about the future prospects of fibona.
Araki:
Through fibona, I would like to establish a new way of research and development with people around the world who have wonderful technologies. I would like to sublimate fibona to an open innovation program for the entire Shiseido company, not just the activities of the research institute.
A decade ago, it was common for research styles to have no contact with the market or customers. Indeed, some researchers are motivated by repeated discussions and thoughts among themselves and by exploring their own specialized fields in depth.
However, I directly face the consumers, listen to their voices saying, "This is what I want," and materialize it with my technical skills. I feel joy when I see someone's smile. It is this process that motivates many researchers.I personally feel that the younger generation of researchers is more motivated by a desire to make a positive impact on society.
No matter how large a company is, it has limited resources of its own, so it has no choice but to connect more and more with people and knowledge from outside the company. There are essentially no "walls" between inside and outside the company, and we have access to data, technology, and researchers from all over the world.
We want to make society happy through innovative inventions. I am sure that many of our employees have realized this through fibona.
As fibona enters its third year, proposals for new projects are coming in one after another from our researchers. Frankly speaking, I am impressed by their enthusiasm, and I would like to somehow connect it to something. In terms of contribution to the business and brand, we are not there yet, but I believe that the impact of fibona in terms of changing the R&D culture that forms the foundation of Shiseido is not small at all.