Service innovation: Towards designing new business models for aging societies

The aging of industrialized countries, led by Japan, requires firms to fundamentally rethink their business models. Firms active in Japan have to reconsider how to deal with unprecedented demographic change, which alters the resources available, to satisfy the shifting demand. Throughout the supply chain, aging of human talent and retirement requires firms to anticipate and prevent the negative effects of losing knowledge and skills. Adjusting the supply chain, developing new products, and/or augmenting products with services to target the silver market may offer short-term benefits but are not enough to sustain success. Firms need to develop and implement new business models leveraging service innovation to meet the needs in aging societies. Examples of service innovations and the case study of Seven-Eleven Japan and Yamato Transports' shared business model innovation illustrate how companies can seize the opportunities to create and capture more value in aging societies.

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