Mitsubishi Chemical HoldingsTHE KAITEKI COMPANY

Message from the CIO

We will strengthen our innovation capability by introducing new perspectives, embracing risk, and deepening our global connections.

In April 2017, the MCHC Group implemented two major changes that increase our innovation power in complementary ways. First, the merger of MCC, MPI, and MRC included the integration of R&D resources and capability across these three companies. The resulting shared knowledge and efficiency gains will enable us to better develop adjacent markets, reduce costs, and identify future business strategies.

The second change within the MCHC Group reflects the rapidly evolving nature of corporate innovation worldwide. In this new environment, we must consider not only incremental technology development, but also disruptive innovation, which can completely redefine the winners and losers in an industry. Because such developments generally emerge from beyond the incumbents’ traditional point of view, they represent a persistent threat even to companies that have provided stable earnings for many years. Indeed, such innovations are often rejected at an early stage precisely because they conflict with the established thinking and processes that were successful in the past. Yet this natural bias interferes both with finding new avenues for business growth and with seeing disruptive threats in time to avoid disaster.

The MCHC Group therefore created the new position of CIO (Chief Innovation Officer), and I was privileged to join the company in April 2017 to serve in this role. Our new Emerging Technology and Business Development Office (ETBDO) aims to significantly extend the innovation capabilities of the MCHC Group by intensifying our engagement with global leaders from both market and technology perspectives. A major difference from the past is the addition of several senior executives from outside the MCHC Group, outside the traditional chemical industry, and even outside of Japan. These changes are designed to expand our world view and our presence as a global innovator.

For example, reflecting the increasing share of disruptive innovation emanating from Information Technology, we created the new role of CDO (Chief Digital Officer) to lead the digital transformation of our company. We are adding data scientists not only to enhance current business operations, but also to conceive new ways of using the vast trove of data from our operations and business transactions. In the area of venturing, the company will set aside resources for strategic investment and partnerships, allowing ETBDO to operate in a risk-tolerant “start-up mode” in potentially disruptive areas.

For large companies in this era of rapid change, simply doing “more of the same” is no longer sufficient to ensure consistent growth, or even survival. By aggressively connecting with global centers of innovation and broadening our approaches to new business development, we aim to create the seeds of a new culture of global innovation within the MCHC Group.

Larry Meixner
Managing Corporate Executive Officer,
Chief Innovation Officer

Extending the Innovation Capabilities of the MCHC Group