Scaling Strategies for SaaS Startups in Low Margin Industries

Japanese business loves paper. From fax machines, to business cards, to massive project binders. Paper processes are slow to die in Japan, especially in industrial facilities. Today we talk with Jumpei Yoshida of Kaminashi who explains why that's finally changing and how foreign workers are driving the transformation. It's a great conversation, and I think you'll enjoy it. Show Notes What is Kaminashi, and who is using it? Why it took Kaminashi four years to  to gain traction The biggest challenge in digitizing blue-collar industries Advice for selling software  to Japanese companies How foreign workers are driving digital transformation in Japan How to reach analog customers The sales cycle for SMB and enterprise software Why enterprise sales in Japan is fundamentally different from in the West Kaminashi’s global expansion plans Real innovation comes next Links from our Guest Everything you ever wanted to know about Kaminashi ... and about their products Connect with Jumpei on LinkedIn Transcript Welcome to Disrupting Japan, Straight Talk from Japan's most innovative founders and VCs. I'm Tim Romero and thanks for joining me. Japan is unquestionably one of the most advanced nations in the world, and yet corporate Japan's love of paper processes and its resistance to going digital has become kind of a running joke even within Japan. At the more traditional industries all over Japan, at corporate headquarters, regional offices and frontline facilities you'll still see people rushing about carrying thick three ring binders to prove to the rest of the office that they are busy and productive. It seems some things never change. So, why? Explaining this kind of thing is a cultural difference is a cop out. It doesn't actually explain anything. It ignores potentially valuable business opportunities. And more important, it overlooks the startups that are finally beginning to change things. And so today we sit down with Jumpei Yoshida of Kaminashi - a name that literally means paperless - and he explains how Kaminashi is pulling factories, food processing, and other critical industrial processes into the digital age. We talk frankly about why it's taken Japan so long to begin this transition and the recent trigger that has really kicked open the market. Jumpei also shares some great advice about how to sell innovation to conservative Japanese companies, the importance of foreign workforce to Japan's future prosperity and what to expect if you're a startup selling to SMBs in Japan. But, you know, Jumpei tells that story much better than I can. So let's get right to the interview. Interview Tim: So, I'm sitting here with Jumpei Yoshida, the CFO of Kaminashi, who's digitizing frontline and field service work. So, thanks for sitting down. Jumpei: Thank you for inviting me. Tim: It's a pleasure to have you on. Now I gave a really high level explanation of what Kaminashi does, but I think you can explain it much better than I can. Jumpei: Sure. Kaminashi is a company focused on providing SaaS solutions to empower frontline workers. Our main offering include tools that digitize and streamline paper-based workflows. Tim: What is the primary focus? Is it mostly just checklists? Is it inspection comments, like approval, workflow? What kind of things does it cover? Jumpei: The application itself is checklist, but there are so many variety of usage. Tim: And what about the hardware runs on, is it iOS, Android, is it onsite terminals? Jumpei: Initially it was only for iOS and iPad, but now our products can use any devices like Windows or Android. Now it's on the web-based software. Tim: Now a bit later I want to get into more detail about the business model and the value you're providing beyond just the checklists. But tell me about your customers. Jumpei: Regarding our flagship product Kaminashi report,