An Investigation into Refining Accuracy of Business Quote Estimation by Digitalization in Small and Medium Manufacturing Enterprises in Japan

EasyChair Preprint no. 11393

Abstract

Many of Japan's small and medium manufacturing enterprises (SMMEs) are referred to as "subcontractors", meaning that they are contracted by certain prime contractors to process parts or manufacture a portion of their output. These SMMEs are in a difficult business situation because they have little bargaining power with prime contractors and unable to raise the fees charged to them. Under these circumstances, Digital Transformation (DX) for business sustainability is attracting attention. In this paper, we analyzed each of process leading to the creation of new value, focusing on factors such as human resources, data, business functions, and inter-business information linkage in four companies that are advanced in the use of DX. As a result, we found that all the cases had one thing in common: they were all working to improve the accuracy of their estimates. Based on these results, we will discuss how the DX process should be implemented for many SMMEs with weak price negotiation capabilities.

Keyphrases: DX, G-RD, Price negotiation capabilities

@Booklet{EasyChair:11393,
  author = {Yuri Nagase and Testu Saito},
  title = {An Investigation into Refining Accuracy of Business Quote Estimation by Digitalization in Small and Medium Manufacturing Enterprises in Japan},
  howpublished = {EasyChair Preprint no. 11393},

  year = {EasyChair, 2023}}