ToyodaTo answer that question, we need to look at how industry has changed over the decades. In the 1980s, Japanese manufacturers were world leaders, but as we moved into the 1990s, developers of large portal sites and other information platform providers started coming onto the scene. After that, we witnessed the rise of new platform businesses that also developed and sold their own products, and in more recent years, the ability to gather and analyze data from products has enabled businesses to use vehicles, buildings and other existing equipment or infrastructure much more efficiently and profitably. Nowadays, your family car can also serve as a taxi, or your home as a hotel, but in the future, this trend of multi-purposing in the sharing economy will likely evolve to encompass more than just the taxi and hotel industries. The concept of a platform that connects the real and digital worlds in a high-dimension, high-resolution space is the very essence of a smart city.

ToyodaI think that today's smart cities fall into one of two categories. The first are those that fit the American or Chinese models, namely the ones whose development has been led by a deep-pocketed tech giant who has invested huge amounts of capital and technologies. The second are those that fit the European model, namely the ones employing open-development systems that are run by federal or municipal governments and conscious of social restoration. Both of those models have their good points and bad points; however, the Japanese model would be neither of them, and if it can be realized, then I think it can be sufficiently competitive the world over. It would be defined by collaborations between different Japanese enterprises, companies who possess advanced technologies in a variety of businesses or industries and are willing to cross those borders.

SogaIt is true that companies are partnering outside their customary businesses or expertise in a manner that we have not seen before. The key for smart cities will be to consolidate all that those different players have to offer.

ToyodaThe know-how possessed by Japanese manufacturers is a great strength, but their inability to translate their products into data has always been a problem when it comes to connecting the two. If its manufacturers and other companies can share and supplement their technological know-how and data, then Japan could evolve into one of the world's best platform creators engaged in the development of smart cities. That evolution will require new cross-industry moves, so I think that because they also provide analytical functions, the sogo shosha will be involved.

SogaOur company's smart-city projects in Southeast Asia and Japan span many businesses, including real-estate developments, mobility, energy, retail and so on. Our sole objectives in all of those projects are to solve societal problems and address the needs of local residents, and those objectives are the source of our cross-industry efforts. We take both those efforts and the appropriate role divisions therein very seriously.

ToyodaSome of the companies involved in today's smart-city developments are taking part in the projects in order to sell their devices or technologies. In such cases, even if those companies win over the competition in their respective industries, their contributions may prove incompatible and of little use when the smart city actually goes online. For smart cities to be possible, their development process must encourage players to first break free from their traditional practices and then rebuild and share their business models. I would like to see companies like Mitsubishi Corporation, which are connected to so many different industries, function as intelligent mediums. I think that the sogo shosha are the companies best equipped to engage in pilot projects aimed at building society-wide ecosystems.

SogaOne of our strengths is our broad and diverse industry footprint. In recent years, we have been collaborating with more and more startups, particularly those specializing in IT and information services. Our operations can bridge different enterprises, businesses and business models and serve as arenas for them to congregate, so we are keen to take advantage of those possibilities as we tackle more smart-city developments in the months and years to come.