ROI Case File No.344 | 'TechVision's 60-Store Pressure'

Chapter 1: The Wave of New Machines—Weekly Production Requests

The day after resolving TechNova's knowledge management case, a consultation arrived regarding design workflow efficiency. Volume 28 "The Pursuit of Reproducibility," Story 344, is a tale of discerning competitive advantage.

"Detective, our designers are at their limit. We create new machine replacement posters for over 60 pachinko parlors with 15 staff. And new machines arrive weekly. It never ends."

TechVision's Creative Director, Kaori Yamamoto from Ikebukuro, visited 221B Baker Street completely exhausted. In her hands were new machine replacement schedules and, in stark contrast, operations analysis materials marked "Production time: Average 8 hours/poster."

"We specialize in promotional material production for pachinko parlors. Posters, POP displays, digital signage. Approximately 3,200 annual productions. However, there's a problem. Insufficient production staff."

TechVision's Operations Structure: - Established: 2012 (Promotional material production for pachinko parlors) - Clients: 60+ store pachinko parlor chain - Production staff: 15 people - Annual productions: Approximately 3,200 cases - Average production time: 8 hours/case - Problem: Small team handling many stores, continuously occurring weekly

Yamamoto's voice carried deep anxiety.

"The pachinko industry has special regulations. Act on Control and Improvement of Amusement Business, etc.—commonly called Adult Entertainment Law. And industry advertising guidelines. Design production complying with these is mandatory.

For example, prohibition of expressions stimulating gambling desire. Cannot use expressions like 'Jackpots in succession!' 'Explosive wins guaranteed!' Excessive prize emphasis also prohibited. Large display of prize amounts also restricted. And consideration for minors. Character usage also restricted."

Typical Design Production Flow:

Step 1: Receive New Machine Information (30 minutes) - Receive new machine information from pachinko manufacturer - Model name, specifications, characters, selling points

Step 2: Concept Design (1 hour) - Create concept while checking Adult Entertainment Law and guidelines - Consider "how to convey new machine's appeal"

Step 3: Design Production (5 hours) - Design with Photoshop, Illustrator - Character placement, text placement, color adjustment - Constantly check for Adult Entertainment Law and guideline violations

Step 4: Client Verification/Revision (1.5 hours) - Submit first draft to client - Receive revision instructions, readjust

Total: Average 8 hours/poster

Yamamoto sighed deeply.

"Furthermore, there's a problem. Multiple stores have new machine replacements weekly. Some weeks bring 15+ production requests simultaneously. 15 staff for 15 cases. One person per case. However, taking 8 hours means can't finish in one day. Overtime has become routine.

We're considering AI image generation system implementation. However, we have questions. Can AI-generated images comply with Adult Entertainment Law and guidelines? And if we implement AI, if other companies can do the same, won't we lose our competitive advantage?"

Chapter 2: The AI Implementation Anxiety—Meaningless If Imitated

"Ms. Yamamoto, do you think implementing an AI image generation system will solve all problems?"

My question made Yamamoto show a complex expression.

"I think efficiency would improve. But there's anxiety. If designs made by AI are also copied by other companies, what would be our strength? Design quality? But anyone can use AI."

Current Understanding (AI=Omnipotent But Imitable Type): - Expectation: Efficiency through AI - Anxiety: Other companies can do the same, competitive advantage lost

I explained the importance of discerning sustainable competitive advantage sources.

"The problem is 'what your strengths are' isn't clear. VRIO analysis—Value, Rarity, Imitability, Organization. Analyze your competitive advantage from these four perspectives. Then discern strengths that persist even after AI implementation."

⬜️ ChatGPT | Catalyst of Conception

"AI is a tool. Strength isn't the tool. Penetrate true competitive advantage with VRIO"

🟧 Claude | Alchemist of Narrative

"Adult Entertainment Law knowledge always creates 'difficult to imitate' value. Embed that knowledge in AI"

🟦 Gemini | Compass of Reason

"VRIO is strategic analysis technology. Evaluate sustainable advantage through value, rarity, imitability, organization"

The three members began analysis. Gemini deployed "VRIO Framework" on the whiteboard.

VRIO's 4 Elements: 1. Value: Does it provide value to customers 2. Rarity: Is that capability rare 3. Imitability: Is it difficult for other companies to imitate 4. Organization: Is there organizational structure to leverage that capability

"Ms. Yamamoto, let's first analyze TechVision's current strengths with VRIO."

Chapter 3: Discovery Through Analysis—The Difficult-to-Imitate Strength is "Knowledge"

Phase 1: VRIO Analysis of Current Strengths (2 weeks)

Strength 1: Design Skills

Value: ★★★☆☆ - Customers: Evaluate "TechVision's designs are appealing" - However, design superiority is subjective

Rarity: ★★☆☆☆ - Many designers exist in market - TechVision's designs not one-of-a-kind

Imitability: ★☆☆☆☆ - Designs can be imitated - Other companies can compete by hiring excellent designers

Organization: ★★★☆☆ - 15 designers collaborate on production - Workflow is organized

Conclusion: Temporary competitive advantage

Strength 2: Adult Entertainment Law & Advertising Guideline Knowledge

Value: ★★★★★ - Customers: Trust "If we leave it to TechVision, no violation concerns" - Violations risk business suspension → Extremely high value

Rarity: ★★★★★ - Pachinko industry-specific regulations - Few production companies possess this knowledge

Imitability: ★★★★☆ - Knowledge itself can be learned - However, practical judgment know-how requires 10+ years accumulation - Subtle judgments like "Is this character placement acceptable?" "Does this expression stimulate gambling desire?" require experience

Organization: ★★★★☆ - All designers attend Adult Entertainment Law training - Internal checklist and guideline database

Conclusion: Source of sustainable competitive advantage

Strength 3: Long-term Trading Relationships with 60+ Stores

Value: ★★★★☆ - Customers: "Long-standing trust relationship" - Stable orders

Rarity: ★★★★☆ - Trading with 60+ store chains is rare

Imitability: ★★★★★ - Building trust relationships takes years - Even if other companies enter, cannot immediately seize

Organization: ★★★☆☆ - Sales staff make regular visits - However, personalized

Conclusion: Sustainable competitive advantage

Phase 2: Post-AI Implementation Competitive Advantage Analysis (1 week)

If AI Image Generation System Implemented:

AI Itself: - Value: ★★★★☆ (Contributes to efficiency) - Rarity: ★☆☆☆☆ (Anyone can use) - Imitability: ★☆☆☆☆ (Other companies can also implement) - Organization: Needs construction

Conclusion: AI alone doesn't create competitive advantage

AI + Adult Entertainment Law & Guideline Knowledge: - Value: ★★★★★ (Efficiency + Legal compliance) - Rarity: ★★★★★ (Companies with this combination are rare) - Imitability: ★★★★☆ (Knowledge embedding is difficult to imitate) - Organization: Needs construction

Conclusion: Can realize sustainable competitive advantage

Strategic Direction: "Embed Adult Entertainment Law and guideline knowledge into AI, building a system other companies cannot imitate"

Chapter 4: Embedding as Strategy—Results After 6 Months

Phase 3: AI Image Generation System Development (5 months)

Development Policy: "Not generic AI image generation tool, but proprietary system with embedded Adult Entertainment Law and guideline compliance"

System Specifications:

Foundation: Certain AI Image Generation API - Utilize existing technologies like Stable Diffusion, DALL-E

Proprietary Development Parts:

1. Adult Entertainment Law & Guideline Compliance Checker - Automatically analyze generated images - Prohibited expression detection: NG words like "jackpot," "explosive" - Excessive prize emphasis check: NG if prize amount text size exceeds X% of screen - Character usage restriction check: NG for characters reminiscent of minors

2. Prompt Optimization Engine - Designer inputs "Poster conveying new machine XX's appeal" - System automatically converts to Adult Entertainment Law and guideline-compliant prompts - Before: "Jackpots in succession! Get rich quick with XX!" - After: "New machine XX finally arrives. Please enjoy new gaming experience"

3. Past Design Database Integration - Store 3,200 designs produced over past 10 years in database - AI learns from past successful patterns - "This character is effective in this placement" "This color tone popular with customers"

Development Period: 5 months Development Cost: 28 million yen

Phase 4: Operations Launch (Month 5-11)

New Production Flow:

Step 1: Input New Machine Information (5 minutes) - Input new machine basic information into system - Model name, specifications, characters, selling points

Step 2: AI Image Generation (10 minutes) - System automatically generates multiple options (3-5 options) - Adult Entertainment Law & guideline compliance checker automatically verified

Step 3: Designer Fine-Tuning (2 hours) - Select optimal option from generated options - Adjust details (color, placement, text)

Step 4: Client Verification/Revision (1 hour) - Submit to client - If revisions needed, regenerate with system

Total: Approximately 3 hours/poster (Before: 8 hours, 62.5% reduction)

Results After 6 Months:

Production Time Reduction: - Before: 8 hours/case × 3,200 cases/year = 25,600 hours/year - After: 3 hours/case × 3,200 cases/year = 9,600 hours/year - Reduction: 16,000 hours/year (62.5% reduction)

Overtime Hours Reduction: - Before: Monthly average 45 hours/person (15 people total: 675 hours/month) - After: Monthly average 12 hours/person (15 people total: 180 hours/month) - Reduction: 495 hours/month (73% reduction)

Annual Cost Reduction: - Overtime pay reduction: 495 hours/month × 12 months × 4,000 yen (hourly wage × 1.25) = 23.76 million yen/year

Investment Recovery: - Initial investment: 28 million yen - Annual reduction effect: 23.76 million yen - Investment recovery period: 1.18 years (approximately 14 months)

Maintaining Competitive Advantage:

Competitor Movement Survey (After 6 months): - Competitor A: Implemented generic AI image generation tool - Result: Succeeded in efficiency but 2 Adult Entertainment Law violations occurred → Warning from customer - Competitor B: Considering AI implementation but unclear how to handle Adult Entertainment Law, implementation postponed

TechVision's Advantage: - Proprietary system with embedded Adult Entertainment Law and guideline compliance - For other companies to imitate requires equivalent knowledge and development period (estimated 2+ years) - Customers: Trust that "TechVision is safe" further strengthened

New Order Increase: - Inquiries from other chains: 8 cases in 6 months - Reason: Reputation that "TechVision utilizes AI but also thoroughly complies with laws" - New orders: 480 annual cases added (+15%)

Sales Increase: - Existing: Annual 3,200 cases × average 80,000 yen = 256 million yen - New: Annual 480 cases × average 80,000 yen = 38.4 million yen - Total: 294.4 million yen (+15%)

Organizational Changes:

Designer A's Voice: "Previously, I worked overtime daily. Spent 8 hours making posters, anxiously submitting while wondering 'Is Adult Entertainment Law okay?' But since AI system implementation, completes in 3 hours. Moreover, system does legal checks, so it's reassuring.

Overtime decreased, personal time increased. And with freed time, can now consider ideas for new designs."

Yamamoto's Voice: "Until conducting VRIO analysis, we worried 'if we implement AI, competitive advantage will be lost.' However, analyzing with VRIO revealed our true strength is 'Adult Entertainment Law and guideline knowledge.'

Embedding that knowledge in AI created a system other companies cannot imitate. Achieved both efficiency and competitive advantage. Overtime reduced 73%, new orders increased 15%."

Chapter 5: Detective's Diagnosis—Sustainable Advantage Lies in Knowledge Embedding

That evening, I contemplated the essence of competitive advantage.

TechVision had anxiety that "if we implement AI, other companies will imitate." However, analyzing with VRIO revealed the true strength is "Adult Entertainment Law and guideline knowledge."

Embedding that knowledge in AI created a system difficult for other companies to imitate. Achieved both efficiency and sustainable competitive advantage, realizing 73% overtime reduction and 15% new order increase.

"AI is a tool. Strength isn't the tool. Evaluate value, rarity, imitability, organization with VRIO. Then embed true strength in AI. That creates sustainable advantage."

The next case will also depict the moment of discerning competitive advantage.

"Value, Rarity, Imitability, Organization. Evaluate competitive advantage through value, rarity, imitability, organization. AI is a tool. When true strength is embedded, sustainable advantage emerges"—From the Detective's Notes

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