In the context of the Fourth Industrial Revolution reshaping the way businesses operate, AI (Artificial Intelligence) and IoT (Internet of Things) have become key drivers for optimizing performance and driving sustainable growth.
However, the question is no longer “Should we adopt technology?” but “How can we implement it effectively at a reasonable cost?” The workshop “AI & IoT – How the Japanese Apply AI & IoT to Improve Productivity” provides practical lessons from Japan, where companies of all sizes have successfully executed lean digital transformations, streamlining processes and enhancing productivity sustainably.
Key Highlights of the workshop:
The workshop offers in-depth insights into how Japanese companies leverage AI and IoT to enhance operational efficiency without requiring heavy investments in complex technologies. Some of the main highlights include:
1. The KUNO Model: Lean and Efficient
Today, while many small businesses struggle to collect and manage operational data, KUNO in Japan has implemented a simple yet smart solution: using cameras to record daily production activities, combined with AI-driven data analysis to assess workers’ behavior.
Once the data is analyzed and processed, production bottlenecks that were previously only evaluated visually or subjectively become clearly identifiable. This enables KUNO to make improvement decisions based on statistical evidence and insights derived from analysis, significantly enhancing operational performance.
This model not only boosts efficiency but also demonstrates that digital transformation can be achieved at a low cost, making it suitable even for small businesses. It represents a major breakthrough in the strategic mindset of “lean digital transformation” – innovative yet cost-effective.
2. BUSYU: Optimization at nearly Zero cost
BUSYU demonstrates that simple technology can deliver significant value. By moving ahead in a production environment that lacked automation systems, BUSYU used smartphones to record production data and monitor performance in real time.
The value BUSYU gained was that there was no need to invest in expensive automation systems to improve productivity. Additionally, the approach helped the company identify errors and implement on-the-job training (OJT) by comparing performance among workers. As a result, a small change in a single production step increased productivity by up to 20%. This opens the potential to replicate the model across other processes, further boosting operational efficiency and optimizing the entire production workflow. In summary, technology does not need to be complex or costly—it just needs to be used correctly and in the right context.
3. EBIYA- Demand forecasting and elevating customer experience
EBIYA, a Japanese F&B company, faced a classic industry challenge: excess inventory and ingredient waste due to inaccurate demand forecasting. To address this, they leveraged Power BI combined with big data from public sources such as weather, tourism, and consumer behavior to build a robust demand forecasting system.
They went beyond merely integrating platforms by deploying AI-powered cameras with facial recognition technology to analyze customer experience and emotions. This system provides real-time insights into customer satisfaction, enabling continuous improvement of personalized experiences.
The results exceeded expectations: revenue and profits increased significantly, operational efficiency improved, all without additional staff or costs. This is a prime example of how businesses can innovate by continuously adopting technology, reflecting the essence of Japan’s Omotenashi culture – the art of exceptional hospitality.
Digital transformation is no longer an option but has become an essential requirement for business development. From practical models like KUNO and BUSYU, participating companies realized that digital transformation does not have to be complex or costly. With the right strategy and a lean mindset, any business, regardless of size, can achieve significant improvements in performance and growth. To fully leverage AI and IoT, businesses need to implement them systematically, based on a holistic perspective and long-term orientation, rather than chasing short-term, disconnected solutions. Identifying the right problems, choosing appropriate tools, and implementing them at the right time are key factors. Reliable data serves as a foundation – without quality data, AI systems cannot deliver their full potential. Importantly, AI and IoT are not exclusive to large corporations; small businesses, when applied correctly, can also achieve remarkable performance gains and generate practical value, contributing to sustainable development in the digital era.
AI does not replace humans, but those who know how to use AI will replace those who do not. The workshop, held on May 7, 2025, was a success, featuring invaluable insights shared by two speakers: Mr. Mitsuru Abe – Chairman of AIPA Japan, and Ms. Vuong Phi. The event’s success was also made possible by the presence of HR and leadership professionals, who contributed to creating a high-quality and engaging workshop environment.
