Case study | Panasonic’s Strategic Adoption of the ITIL 4 Framework
Panasonic has been a leader in manufacturing excellence for decades. But as the digital era reshapes industries, Panasonic Connect is driving a bold shift—moving from product-focused operations to service-driven solutions. Dive into our case study to discover how ITIL 4 has empowered Panasonic to redefine its approach to service management.
1. Introduction
For nearly a century, Panasonic has been synonymous with manufacturing excellence, pioneering technologies and products that have defined generations. However, the growth of service-oriented digital enterprises has necessitated a bold shift from its traditional manufacturing roots.
This initiative has been led by Panasonic Connect, which plays a central role in the growth of the Panasonic Group’s B2B solutions business and provides new value to its customers by working with them on the ground, facing their challenges alongside them. Panasonic partnered with HP Japan to offer flexible ITIL 4 modular training sessions through HPE Education Services.
When Panasonic Connect’s CEO announced a policy of shifting from manufacturing goods to providing services, the organization was operating a well-established manufacturing system, based on a waterfall-type, development-centered and vertically-divided organization with an emphasis on quality.
As the company shifted from “Monozukuri” (making goods) to “Kotozukuri” (providing services), there were many discussions about what needed to change in both the quality department and the management system to promote a service-focused business.
Company executives had commented that while other companies were solidifying their recurring business models, Panasonic was still maintaining the image of a 20th century manufacturer. They acknowledged that creating and selling goods is completely different from understanding customers’ management issues and proposing service solutions. This requires the ability to organize services but – at the time – Panasonic did not have significant experience with the delivery of recurring services.
Consequently, the company saw the need to make changes at both the management level and the “genba” (the frontline of operation).
This case study explores Panasonic’s strategic adoption of the ITIL 4 framework, highlighting the company’s innovative leap forward in aligning with contemporary service management best practices.
2. Challenges
PANASONIC FACED A MULTITUDE OF CHALLENGES IN ITS TRANSFORMATIVE JOURNEY:
CULTURAL SHIFT
Transitioning from a globally-renowned and well-established manufacturing mindset to a service and digital-focused culture required a change in processes and a significant shift in organizational thinking.
This involved seeing differences in business models, job and quota allocation between selling and servicing, monetization and the need for agile development in a high-velocity environment. It became important to embrace a variety of knowledge and best practices to promote the service business.
KNOWLEDGE GAPS:
Despite its global presence, Panasonic recognized the need for a uniform understanding of service management. There was a crucial requirement to educate its workforce in ITIL 4 concepts across various geographies.
STRATEGIC IMPLEMENTATION
Integrating ITIL 4 into the existing Panasonic business model posed significant challenges, requiring a strategic approach to align the new framework with the company’s legacy systems and processes.
This required organizations and employees with knowledge of ITIL best practice and an understanding of IT services, along with the ability to expand the use of high-velocity development mechanisms, infrastructure, and modern tools to design digital services.
“The ITIL framework sets a common goal between individuals, teams and the organization. It has been very meaningful for us to learn about the service value system in order to create value together.”
Masao Sekimoto – Compliance, CTO strategic planning, Technology Strategies – Panasonic Connect
3. Solution
IN RESPONSE TO THESE CHALLENGES, PANASONIC UNDERTOOK A MULTI-FACETED APPROACH:
OBTAINING EXECUTIVE BUY-IN
The initiative began with gaining robust support from top-tier management, securing the necessary leadership endorsement to drive change.
This included explaining to management the need for people who understand ITIL and service management practices. As a result, the CEO supported ITIL learning as part of continued employee development.
EMPLOYEE EDUCATION
Panasonic initiated training in ITIL 4 Foundation certification for its workforce, fostering a common language and a foundational understanding of service management practices.
COMMUNICATION STRATEGY
To ensure the ITIL 4 message resonated throughout the company, Panasonic developed a comprehensive communication plan. This included information cascades from senior leadership through the ranks, ensuring all employees understood the value and purpose of the change.
For instance, using examples of service configuration and processes from other industries, such as banking, fostered discussions about how ITIL is a driver of service stability and value. This ensured that more people joined the circle of knowledge, generated interest in ITIL and started independent conversations about the framework.
MODULAR TRAINING
Panasonic partnered with HPE Education Services – Japan to offer flexible ITIL 4 training sessions. These were customized to cater to individual needs and schedules, ensuring maximum accessibility and uptake.
4. Results
CULTURAL CHANGE
Panasonic employees embracing continuous improvement and service management philosophies indicates a shifting organizational mindset. This means the company is both getting closer to customers and focusing on speed more than ever before.
In addition, there is now more agility in product development, therefore moving to market more quickly. Meanwhile, ITIL processes are creating greater agility in incident management. Customers are seeing a difference in delivery speed and Panasonic employees recognize the value in making these improvements.
ITIL 4 FOUNDATION UPTAKE
A notable milestone was reached with 2,000 employees obtaining their ITIL 4 certification, indicating successful initial adoption among the workforce.
ITIL 4 ADVANCED MODULES UPTAKE
The introduction of more advanced ITIL 4 courses in Japanese is anticipated to deepen the understanding and implementation of the framework.
As of now, 10 employees have attained the ITIL 4 Managing Professional designation and numerous others have completed advanced ITIL courses:
- ITIL 4 Specialist: Create, Deliver and Support
- ITIL 4 Strategist: Direct, Plan and Improve
- ITIL 4 Specialist: Drive Stakeholder Value
- ITIL 4 Specialist: High-velocity IT
- ITIL 4 Leader: Digital and IT Strategy
- ENGAGEMENT INDICATORS
Active participation in ITIL 4-dedicated channels on Microsoft Teams demonstrated a growing engagement and interest in service management concepts.
EMPLOYEE FEEDBACK
The training program was well-received, shown by a high Net Promoter Score of plus 15, with 40% of Panasonic respondents expressing strong support for the ITIL courses. Except for in-house training on management philosophy, the support rate for ITIL 4 training is among the highest at Panasonic.
CULTURAL CHANGE
Panasonic employees embracing continuous improvement and service management philosophies indicates a shifting organizational mindset. This means the company is both getting closer to customers and focusing on speed more than ever before.
In addition, there is now more agility in product development, therefore moving to market more quickly. Meanwhile, ITIL processes are creating greater agility in incident management. Customers are seeing a difference in delivery speed and Panasonic employees recognize the value in making these improvements.
ITIL 4 FOUNDATION UPTAKE
A notable milestone was reached with 2,000 employees obtaining their ITIL 4 certification, indicating successful initial adoption among the workforce.
ITIL 4 ADVANCED MODULES UPTAKE
The introduction of more advanced ITIL 4 courses in Japanese is anticipated to deepen the understanding and implementation of the framework.
As of now, 10 employees have attained the ITIL 4 Managing Professional designation and numerous others have completed advanced ITIL courses:
- ITIL 4 Specialist: Create, Deliver and Support
- ITIL 4 Strategist: Direct, Plan and Improve
- ITIL 4 Specialist: Drive Stakeholder Value
- ITIL 4 Specialist: High-velocity IT
- ITIL 4 Leader: Digital and IT Strategy
- ENGAGEMENT INDICATORS
Active participation in ITIL 4-dedicated channels on Microsoft Teams demonstrated a growing engagement and interest in service management concepts.
EMPLOYEE FEEDBACK
The training program was well-received, shown by a high Net Promoter Score of plus 15, with 40% of Panasonic respondents expressing strong support for the ITIL courses. Except for in-house training on management philosophy, the support rate for ITIL 4 training is among the highest at Panasonic.
5. Next Steps
SCALING EDUCATION:
Panasonic plans to increase the number of ITIL 4 Foundation-certified employees, with a focus on managerial staff to reinforce service management practices at the leadership level.
INTEGRATION OF PRACTICES:
Panasonic aims to align ITIL 4 practices more closely with its business operations, ensuring that value creation is consistently informed by service management best practices.
CONTINUOUS IMPROVEMENT:
Regular reviews of the adoption process are undertaken, allowing Panasonic to refine its approach based on feedback and performance insights.
Panasonic’s ITIL 4 adoption narrative is more than a step towards transformation. It is a testament to its commitment to remaining at the forefront of business innovation. One current example is an entry and exit system that uses facial recognition technology.
By embracing ITIL 4, Panasonic is not just adapting to the modern service economy but is actively shaping it, ensuring the company’s longevity and relevance in the rapidly-evolving global marketplace.
“We need to continue to create and provide value together with our customers. And where – in the past – there was pressure not to fail, I think that there is now psychological safety that says it is okay to fail.”
Masao Sekimoto – Compliance, CTO strategic planning, Technology Strategies – Panasonic Connect