New Businesses Initiatives

We utilize our core technologies in solving social challenges and expanding into growth markets. We are also strengthening PPP and concession initiatives. We will also combine technology seeds (the technological strengths) of Obayashi Group's four businesses (domestic construction, overseas construction, real estate development, and green energy) with new business models aiming for commercialization.

Business Strategy

Pursue breakthroughs for exponential growth with exploration and launch of new businesses

  • The following four areas are positioned as growth market areas leading to the solution of social issues. We will leverage our core technologies and focus on establishing new business models
    (i) Carbon neutrality, (ii) Well-being, (iii) Transformation of existing industries brought about by digitization and innovative technologies, and (iv) New market growth triggered by potential deregulation and diverse ordering methods
  • Search and implement revenue models (consider entry into order methods such as PPP/concessions, etc. and test various revenue models such as the subscription platform business)

Background Leading to Formulation of the Business Strategy

  • Uncertain and complex times with big changes in existing values
  • Addressing trends such as carbon neutrality and well-being has become a global social issue regardless of region, with recognition that committing to initiatives toward these issues is assumed for corporate survival
  • Transformation of current businesses and creation of new business models are important management challenges toward solving sustainability issues that aim for the Group's sustainable growth

Specific Initiatives

  • Combine technology and know-how gained through the Construction Business with digital technology for (i) improvement and reform of value provided for customers, (ii) new value creation, (iii) profitability other than through construction contracts
  • Utilize synergy with existing businesses (Construction Business, Real Estate Development Business, and Green Energy Business), find business seeds in markets gaining attention such as construction DX and city platforms, agriculture & biotechnology, space, and focus on designing business models
  • Assign management resources appropriately and decisively based on establishment, operation and management of new business development based on ISO56002 Innovation Management System
  • Optimize management resource utilization that is not limited by in-house reliance
    (i)Promote collaboration among entities such as head offices, branches, divisions, and Group companies (including Obayashi SVVL*), (ii)Develop ecosystems with research organizations, venture capitals, startups, and others for creating new businesses, and other means
  • Carefully analyze risks of each project and returns to the Group, then work for concessions or development + PFI method

* Obayashi Silicon Valley Ventures & Laboratory. Obayashi's base in the U.S. for research and activities

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