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Innovation at Kao Corporation

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Mirza Nikhil

on 19 September 2014

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Transcript of Innovation at Kao Corporation

Major Innovations
1. Biodegradable fabric softener;
2. Quickle Wiper hosehold cleaning tool;
3. Pore Pack (pore dirt removal)
4. Hair Color Foam, a new concept that uses foam to dye gray hair
5. Natural Glow Body Moisturizers
The Kao Way
Ensure customers’ wholehearted satisfaction worldwide
Create innovative products based on original ideas and technologies
Sustain profitable growth and respond to the trust of stakeholders
Leverage the abilities of individuals into a powerful corporate force
Encourage close harmony with the environment and the community
Innovation at Kao Corporation
Managing Global Innovation
Range of Products
570 branded package- consumer products
A wide range of chemicals for industrial and institutional uses
Consumer Products
Kitchen detergents, bleach, laundry detergents in liquid and powder forms, cleaners for windows, floors, gas range, toilet room bathtubs, Toilet soap, hair shampoo and conditioners, body and facial cleansers, skin care products and hair care items such as hair color treatment agents, hair styling agents and spray.

Chemical Products
Surfactants, polymers, and fat and oil-based chemicals, fragrance, flavors and edible oils.
"excellent manufacturing of products"
Profit for R&D in its Widest Sense

Corporate Innovation Strategy
"It is my belief that such profit should be regarded is something like alms from customers, and should be returned to them by the company"
-Dr. Maruta, Chairman (2007)
Extensive Fundamental and Interdisciplinary Research and Study
Corporate studies and research include not only natural science and technology, but also socio-psychological studies.
Corporate Creativity
Creativity should permeate all of Kao’s activities, and not just be restricted to the development of new products or to artistic design.
Example: "Staff and management at Kao strove to raise productivity to fund Kao's business expansion during an inter-company management campaign "Total Creative Revolution" (TCR)"
More widely "Seeds of R&D are sown, the more productively they will grow to meet the "needs"
Flat and Dynamic Organizational Structure
Flat with the knob in the center
Cluster of top management at orchestrating center
Others at flat extension
Information is shared horizontally
Monthly conferences and daily meetings between researchers across different laboratories
Average of 457 Million USD (3.8% of sales) spent in R&D since past 6 years
Localizing R&D Resources
Kao strives to globalize its business by localizing management resources such as personnel, finance and materials to be supplied, while sharing management, administrative know-how, business experience and technology throughout the global group of companies.
Kao products are developed locally to meet the needs of each market, strengthening its internationally-oriented R&D laboratories to adapt them for globalize market
Major Drivers for Globalization
1. Business strategy
2. Breakthrough technology
3. Product development to meet the needs of local markets
4. Localize management resources
Lack of international experience & knowledge
Limited Human resource assets
International operations driven primarily along product division
Local R&D laboratories are strongly connected to product headquarters
Develop products for local needs
Local needs integration to product development process for global market
Effective Corporate Philosophy
Lessons Learned
1. Introduction of local culture and know-how;
2. Flat, flexible organization;
3. Localize management resources.
"Cleanliness, Beauty, and Health Every Day"
Full transcript