Case study: Business Strategy + DX Implementation / Kitamura Industrial Painting Co., Ltd.
- Jul 15, 2022
- 6 min read
Updated: Feb 17
It all started with "We didn't know how to apply for a subsidy"...
Now, the mid- to long-term business strategy "KIP-8" has become a new strength for the company!
Client Overview
Kitamura Industrial Painting Co., Ltd.
Kitamura Industrial Painting is one of the largest industrial painting companies in the Hokuriku region. The company operates five distinctive in-house factories equipped with state-of-the-art specialized painting equipment, as well as multiple dedicated painting facilities overseas. It's expertise spans a full range of coating technologies, from solvent-based coatings to powder coating.
Director / Corporate Planning: Mr. Tonihara
Q: Why did you consult with THT?
I joined the company in April 2020 and take charge of the DX (digital transformation) project in 2021. Based on my previous experience with system implementation, I believed business systems should be introduced not only to solve short-term issues, but also with a mid- to long-term strategic perspective.
We operate five factories with nearly 200 employees. Even organizing internal challenges was a significant task, from management, general affairs, and administrative operations to understanding the various types of painting processes, detailed knowledge and specifications of factory equipment, and addressing dependency on specific individuals.
Additionally, designing and implementing a DX strategy requires specialized and broad extensive in both IT and industrial equipment. We decided to consult THT from the early stages to help us organize equipment-related issues. Trying to study and manage everything on our own would have delayed implementation and increased the risk of making incorrect decisions.
When they said, "Let's develop a strategy that leverages available subsidies and grants."
I was very encouraged and grateful to hear that.
Q: Please tell us about your short-term and medium-term challenges.
We are currently facing the following challenges:
Short-term challenges
Reducing human errors and improving operational efficiency
Minimizing the use of paper documents
Mid- to long-term challenges
Enhancing employee motivation
Developing a robust business strategy
While most system development companies tend to focus primarily on short-term solutions, what set THT apart was their ability to also support us in addressing our medium- and long-term challenges. This was the key factor in our decision to partner with THT.
Q: How did you go about solving these issues?
First, we began by conducting on-site interviews. When internal staff lead this process, employees often give safe, textbook-style answers. By involving THT, however, we were able to gather more honest and unbiased insights, which really highlighted the value of having a neutral third party.
Next, we categorized the issues into two groups: those that could be solved with IT, and those that couldn't be addressed by IT alone. We then further prioritized them based on what could be tackled immediately versus what would require more time. Naturally, budget constraints were also taken into consideration.
Since this was during the COVID-19 pandemic, we focused first on initiatives that could be implemented right away, such as digitizing paper documents and leveraging cloud-based tools.
Within about 6 months, we successfully digitized the core paper materials used in our operations. After a testing period, we were able to fully implement the system within a year.
Q: Was there anything you found particularly effective or well thought out?
At the time, we didn't have a clear mid- to long-term strategy in place. THT proposed a solution that was both cost-effective and highly versatile, allowing us to get started without delay. We greatly appreciated their practical and forward-thinking approach.
Q: How did you approach the development of your mid- to long-term strategy?
At the time, the idea of building a long-term strategy felt completely out of reach, like trying to grasp clouds. But rather than simply bringing in a systems consultant, THT introduced a true business strategy expert. They facilitated comprehensive counseling sessions involving everyone from executives to frontline employees. As someone being considered for a future executive role myself, the experience significantly broadened both my perspective and understanding of the business.
Through a series of structured workshops, we learned how to:
・Share and understand the current state of the company
・Analyze and communicate our strengths and weaknesses
・Develop a unifying vision and strategy that aligns with everyone's motivation
・Set tangible goals, such as sales targets and workforce planning
Initially, some team members, including the factory manager, were skeptical and thought, "Consulting? Really?" But as the sessions progressed, we began to see a noticeable shift in attitudes and engagement. Their eyes lit up, and real change started to take hold.
Q: How did things change?
The short-term mindset of "This will just mean more tedious work" or "It can't be helped" gradually shifted to a more hopeful perspective: "By helping shape the future of this company, we might actually create better ways of working." This change in thinking was a very positive sign. I've always believed that such a mindset is essential for effectively leading an organization.
The most disheartening situation is when people cannot see a future for themselves, become worn out, and ultimately decide to leave.
Q: What specific actions were taken?
We shared the company's assessment of its strengths and weaknesses, along with broader social and industry trends, with all employees.
In addition, we clearly communicated the process behind how our strategy was developed. Building a shared understanding and agreement was crucial for smooth implementation moving forward.
The strategy was carefully designed to cover all key areas, from sales and service design to HR and labor relations.
Based on that strategy, we then discussed the available tactical options.
At this stage, everyone understood that DX is just one of many tactics to achieve our goals, not the goal itself.
For example, the initiative to "digitize paper documents and move them to the cloud" was no longer seen as a default action. Everyone came to understand what that step truly meant within the broader strategic.
Q: What do you mean by tactics?
Our example was participating in a trade show to showcase our company's strengths and vision to prospective customers.
At first, we were unsure: "We're just a contract-based painting company... what could we possibly exhibit?" But that turned out to be no problem at all. To demonstrate our commitment to our vision for the future, everyone pitched in despite busy schedules to create the exhibit together.
Before long, this effort not only helped spread our vision internally but also naturally fostered team building.
At the trade show, employees experience "sales" firsthand at our booth, something that had previously only been done by the company president. Seeing our team speak proudly and enthusiastically about the company gave me confidence that we were truly on the path to addressing one of our key mid- to long-term challenges.
For us, and especially for our leadership team, this went far beyond incremental improvement. It felt innovative, almost revolutionary. In fact, when I gave a presentation at the exhibition to share our story, I was so moved that I found myself in tears. I never imagined the day would come when I could speak about our transformation in that way.
Q: What are your future plans and expectations for THT?
Until about a year ago, addressing management issues was something handled only by the company president and myself.
However, through the various initiatives we've undertaken, we have seen team members grow into leaders who now feel a genuine sense of excitement and ownership about the company's transformation.
Together, we are beginning to form a clearer vision of our company's future, including the talent we'll need, the equipment required, and the facilities that will support our continued growth.
IT is a powerful and indispensable tool across every aspect of our business.
As technology continues to evolve at a rapid pace, THT's deep expertise, advanced knowledge, and hands-on implementation experience have become a true strength and source of confidence for our company.
We look forward to continuing regular meetings with THT and receiving proactive proposals to help us address a wide range of operational challenges.
Q: Lastly, if you don't mind, please help promote THT to those reading this article.
When we first began, we didn't even have a clear business strategy in place. We were simply struggling to complete subsidy applications. However, after consulting with THT, we developed a solid mid- to long-term business strategy, what we now call "KIP-8." The successful execution of this strategy and the clarity of our vision have become major strengths for our company, leading to new opportunities and growth.
IT is ultimately just a tool. Of course, stability, safety and reliability are essential. But even more important is the business strategy that guides how those tools are selected and used, and how that strategy is shared across the organization.
What truly sets THT apart is that they go beyond IT. They engage with clients at the business strategy level and provide support even in areas unrelated to systems or technology. That is why THT should not be grouped together with typical system development companies!
Thank you for all your encouragement, we're almost embarrassed by how grateful we are.
We also truly appreciate the opportunity to share our story.
