Hideyuki Hongo, President and Group CEO, Startia Holdings, Inc.

Evolving our services with the times

■ Profile

Born in Kumamoto Prefecture, he founded Telecom Net Ltd. (now Startia Holdings Inc.) at the age of 29.
Currently, the company is actively developing its digital marketing business, centered around Cloud CIRCUS, a digital marketing tool that is familiar from Rino Sashihara's TV commercials.
The company also provides office IT infrastructure services and digital transformation support for small and medium-sized enterprises.

Startia Holdings Inc. aims to increase the productivity of Japanese companies through the power of IT. Last time, we spoke with President Hongo Hideyuki about the circumstances that led to the founding of the company and his management mindset, but this time we spoke to him about more specific details, such as his approach to building business models, which he values.

■Concept of building a business model

I'm often asked how to create a business model. However, looking back on my own experience, I think it would be more accurate to say that rather than "creating a business model," I arrived at my current business model as a result of responding to trends in society. In other words, I think it's important to provide what people want and need, rather than deciding for yourself that "this model should be good."

Of course, it is the management that decides "what business should this company pursue and what business should be discontinued." There are two elements necessary for making a decision: external and internal factors. Internal factors are within the company's control, such as the strengths of its internal organization and services. However, this decision cannot be made too early or too late. Times may seem to be changing suddenly, but in fact they are changing gradually. In order not to overlook these changes, I think it is important to regularly monitor IT magazines and media.

On the other hand, external factors, such as social trends and institutional changes, are difficult to change through one's own judgment. However, no matter how talented a manager is, they cannot perform to their full potential unless they understand external factors. For example, the emergence of the Internet is a prime example of an external factor. With the emergence of the Internet, an unprecedented service that did not exist before, and as the world continues to move forward, if we continue to provide services as before, we will be left behind. This is why it is necessary to understand these external factors and gradually evolve our service menu.

Management decisions must be made with these two factors in mind. However, one thing we must not forget is that in business, one win and nine losses are the norm. Even if the probability of failure is high, doing nothing is also a risk. The key to a company's success is to retain as much of the venture spirit as possible, taking on challenges while minimizing the risk of fatal failure.

■How to acquire new customers and follow up with existing customers

In our case, visualizing new customers is not that difficult, because customers view our website and leave a history. However, what happens after that is important. If you suddenly call someone who has viewed your website, they will take a step back and are more likely to leave. Therefore, by waiting a little while and then responding via chat rather than by phone, you can ease the other person's sense of discomfort. We value the idea of ​​maintaining a sense of distance and providing courteous service to nurture our customers.

Furthermore, considering the external factors mentioned earlier, it is highly likely that Japan's population and economy will shrink in the future. This is why, while in the past it was acceptable to only look at immediate customers and, if that didn't work, approach the next customer, going forward it will be important to value communication with customers and get them to like products. Rather than relying on influencers to spread the word, I think it is more important to see how much each customer likes a product and how they themselves spread the word about its merits.

In addition, to follow up with existing customers, we analyze data on how many people access the site in a month, and on what days and at what times access is most common, and we target those timings to make phone calls or respond via chat. We are in frequent contact with heavy users, but try not to contact customers who use the site less frequently. We take an approach that suits the needs of our customers. In other words, we are conscious of communicating with our customers "fairly" rather than "equally."

In Japan, there is a belief that "the customer is god" and that everyone should be treated equally, but I don't think that's a good idea. Frequent customers should be contacted frequently, and occasional customers should be approached occasionally. I think that differentiating between customers based on how often they use the service reduces the burden on them and makes more sense.

■ Future business model expected

Japan is still 99.8% small and medium-sized enterprises, and its productivity is low even among the OECD (Organization for Economic Cooperation and Development) countries. One of the reasons for this is the very low IT literacy of Japanese people and the aging of managers. Another problem is the excessive number of small and medium-sized enterprises that have not made progress in digital transformation.

I think that in the future, it will be tough if we cannot invest in IT equipment to increase sales. However, we are working with the vision of contributing to society by somehow increasing the productivity of Japanese companies.

■ massage

I think it's a good idea to go abroad while you're young. And by going abroad, you'll be able to get a good understanding of the current situation in Japan from the outside. For example, do you understand how a weak yen affects our lives? Ultimately, a weak yen directly affects our lives. That's why it's important to keep your ears open to what's happening in the world right now and to be fully aware of it.

There are over 10,000 century-old companies in Japan. However, there are very few remaining in the United States. At first glance, this may seem like a bad result, but the American economy is growing thanks to its high turnover.

Japan has many companies with poor productivity, no future, and potential bankruptcy. As a result, the number of years that existing business and revenue models remain valid is getting shorter every year. I would like to see companies that are popular with talented university students today reconsider whether they will still be in Japan in 30 or 40 years' time.

Unlike your parents' generation, it will no longer be possible to join a major company, stay there, and work until retirement age. In the society of the future, the only person you can rely on is yourself. The company won't do anything for you. If you do go to a major company, aim for one with a corporate culture that allows you to change direction at any time. I would also encourage you to consider the option of working for a venture company or starting your own business.

Interviewed by Student Newspaper Online on August 22, 2022 by Koji Ishida, a third-year student at Nihon University