Business model

  • The capitals
  • Conciseness
  • Connectivity of information
  • Stakeholder relationships

Key observations:

Showa Denki’s integrated report provides a unique diagram featuring the flow of capitals that represents the key business activities and strengths vital to the company. This diagram is designed to illustrate how the company creates value for customers.

Capitals are classified into six types, mainly focusing on the intellectual, manufacturing and human capitals. Each type of capital is distinguished by a different colour to enable easy identification with explanations that follow the diagram. Furthermore, it is insightful to see how the different capitals are combined to form processes which enhance capabilities necessary for the company to achieve their resolution of “knowing customers well”. This helps the readers understand how the company allocates their financial and human resources, as well as gaining an insight into which stakeholder relationships are critical for their success.

On the following page which describes the business model, it explains that in order for value creation to be sustainable, it involves a cycle process. Through interactive communications with key stakeholders such as customers, partners and employees, Showa Denki demonstrates a systematic approach to enhance the corporate brand by fully leveraging the capitals that they think are material.