Initiatives for Medium-term Targets
In April 2017, DOCOMO formulated its new medium-term strategy, "Declaration beyond." And in October 2018, initiatives and mid-term objectives for the implementation of "Declaration beyond" were announced as a "Medium-Term Management Strategy."
Medium-Term Strategy 2020 "Declaration beyond"
With an eye to 2020 and beyond, we strive to exceed the expectations of customers with the cooperation of business partners, aiming to amaze and inspire our customers and the realization of new value and co-creation with our partners. For this purpose, DOCOMO will endeavor for its own corporate change and the creation of an enriched era of 5G, all of which is inspired in this meaning of beyond.
Giving value and excitement to customers with benefits and convenience as well as fun, surprise, satisfaction, and peace of mind, while together with partners we strive to realize new value co-creation through +d initiative for contributing to the industry, finding solutions to social issues, and expansion of partner's business.
Declaration beyond is the initiative determined for this realization.
The underlying objectives of Declaration beyond are 3 declarations to customers (declaration 1-3) and 3 declarations to partners (declaration 4-6).
Declaration 1 Market leader
DOCOMO aims to take the lead as market leader for customer value and convenience, by further integrating and evolving its service, billing plans, and point programs.
Declaration 2 Style innovation
Leveraging the strengths of 5G and applying technologies such as virtual reality (VR), artificial intelligence (AI), and Internet of Things (IoT) technologies, DOCOMO will create innovative, fun, and exciting services to meet the needs of a variety of customer lifestyles.
"empower+d challenge" (empowered challenge) is a company-wide project which promotes 9 challenges.
- Experience innovation: New entertainment, Next-generation mobility and Sharing
- Life style innovation: AI agent, FinTech and Total healthcare
- Work style innovation: Drone robotics, Work innovation and Work matching
Declaration 3 Peace of mind and comfort support
AI will be used to evolve contact points for providing support for customers to feel satisfied and peace of mind.
Declaration 4 Industry creation
Through the application of 5G network which will enable high speed, large capacity, low latency, and massive device connectivity, DOCOMO will widen the business possibilities of partners and aim for progress across a wide range of industries throughout Japan.
Declaration 5 Solution co-creation
Aiming to contribute to further growth and prosperity in Japan, +d initiatives will continue to be developed toward solutions of social issues.
Declaration 6 Partner business expansion
We will promote initiatives to support the business of partners and expand transaction flows by enabling further growth and progress of the business platform utilizing DOCOMO assets.
Declaration beyond will be implemented for the innovation of business structure and while strengthening the business platform by passing on value to customers and investing in further growth, DOCOMO will continue to grow by integrating and evolving a wide-range of added value through 5G.
Medium-Term Management Strategy
We will shift towards the basic policies of "Transformation into business management pivoted on membership base" and "5G rollout and business creation" for our medium-term management strategy for sustainable growth in 2020s.
Revenue opportunity creation centered on customer base
By focusing our efforts on increasing the numbers of d POINT CLUB members and enterprise partners, we aim to amass 78 million members and 5,000 partners. Additionally, by connecting our member base with our enterprise partners using DOCOMO assets, we will provide new value, creating revenue opportunities for Smart Life Business and Enterprise Business.
With regards to Finance/Payment business of Smart Life Business, we will expand the number of locations where d POINT, d Payment, and iD can be used from 900 thousand to 2 million. With the added convenience to our users, we aim to increase our transaction volume to 6 trillion yen.
With regards to Enterprise Business, we will create solutions and aim for enterprise solution revenues of 120 billion yen by employing "Top Gun," a small team that is composed of our clients, DOCOMO's Corporate Marketing and R&D teams, and also leveraging the initiatives undertaken in the "5G Open Partner Program."
Growth driven by 5G
In order to buildout a 5G network, we will invest a total of 1 trillion yen from FY2019 to FY2023. We will begin a pre-commercial service in September 2019 and a commercial service in Spring 2020.
With regards to services and solutions that utilize 5G, we will provide stadium solutions and new sensory experience services such as VR, AR, and MR to general users, and for our enterprise users, we will implement disaster prevention and remote medicine through a wide range of partners, thereby contributing to society and industry.
Execution of customer returns and evolution of customer touchpoints
In response to customer voices, we will execute customer returns through simple rate plans that offer great value.
Furthermore, for customer's comfortable experience, we will strive to simplify the rate plans, expand use of shop visit reservation, review explanation method and reinforce web page, so that we will cut wait time and attendance time at docomo Shop roughly by half of the current average of over two hours before the end of FY2019.
Medium-term operational indices
By expanding our members and partners, we will create new opportunities for use and implementation in business, thereby realizing growth in every DOCOMO's businesses. Envisaging the future, we will make active investments for 5G and realize a sustainable growth.
For customers, we will continue to offer greater benefits and comfort to garner their long-term usage.
|Revenue opportunity creation centered on customer base (FY2021 target)|
|d POINT CLUB members||78 million|
|Locations where payment/point service can be used||2 million|
|Transactions handled by Finance/Payment business||¥6 trillion|
|Enterprise solution revenues||¥120 billion|
|Growth driven by 5G|
|Cumulative investment for 5G infrastructure build-out, etc. (FY2019-FY2023)||¥1 trillion|
|Evolution of customer touchpoints|
|Wait time + attendance time (Within FY2019)||Roughly half the current level|
We will archive 5 trillion yen in operating revenues in FY2021, recover our operating profit to 990 billion yen for FY2023 to a level comparable to FY2017 and realize sustained growth in the 2020s.
Video Message from CEO
Video Message from CEO: Medium-Term Strategy 2020 "Declaration beyond"
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