July, 2004 |
 |
|
Market Snapshot - Japan
Stories across Borders
A large part of our business here at
Kanabo Consulting involves the facilitation of relationships between
Japanese enterprises and US startups. We’ve been involved with all
types of interaction from contract negotiations to investment
discussions to talks of partnership. This puts us in the unique
position of being able to make observations about the state of
today’s US/Japan business relations based on real world examples. We
think these observations are worth sharing and so for this edition
of market snapshot we present a few of these cross border stories.
We hope you find them of interest.
The Lost in Translation effect
Bill Murray and Sofia Coppola have no idea
how much their film “Lost in Translation” has done to decrease the
US/Japan culture gap. For one thing, it seems that most Silicon
Valley VPs of Business Development have seen the film and through
the humor of it, now express more interest in exploring the Japanese
market. The film shows so much of the lighter side of working with
the Japanese that viewers probably can’t help but be put at ease.
These days, the most popular comment we get from American executives
is that they want to stay at the Lost in Translation hotel (Shinjuku
Park Hyatt
http://www.tokyo.park.hyatt.com/tyoph/index.shtml ) next time
they are in Tokyo. Talk of the film is also a great ice-breaker: we
find that most Japanese executives know the film and are able to
express some insight even sympathy with the homesick foreigner
trying to adjust to the peculiarities of Japanese culture.
Going it alone in Japan
While it is true that “partnering” in
Japan, is typically the best approach to establishing a presence in
Japan, it is not the only option. Many of the executives we talk to
seem to instantly discount the “go it alone” option so we need to
remind them that success stories do exist. Oracle Japan, for
example, was started by Japan venture capitalist Allen Miner (now of
Sunbridge -
http://www.sunbridge.com/en/ ) without the benefit of such local
partnerships. Oracle Japan is today a public entity in Japan and
highly respected within the industry. IBM Japan, now one of Japan’s
leading IT product and service companies, is the other major IT
vendor that has its origins in independence. Other “solo” success
stories abound: JETRO even goes far as to maintain a list at
http://www.jetro.go.jp/ec/e/articles/successful/it_all.html
Tokyo on a shoestring
We tell out clients all the time that
setting up a presence in Japan these days should not cost that much
more or take much more time than anywhere else, if done properly.
The Japanese government recently streamlined the process of creating
a Corporation (Kabushiki Kaisha) by requiring just 1 Yen in minimum
capital with nominal fees
www.jref.com/practical/company.shtml You can even get
reasonably priced instant office space and administrative support at
any number of "executive suite" locations if you need to start right
away. And if you're on a really tight budget, Japan's External Trade
Relations organization (JETRO) has a foreign business incubator that
offers FREE temporary office space and business consulting support.
www.jetro.go.jp/ip/e/bsc/index.html.
|
|
|
Archive
View content
from past editions of our monthly Japanalyzer newsletter!
|
This
Month's Bridge Builder
Featuring
the real voice of IT across the Pacific
|
|
|
|
July, 2004
|
|
Mobile
Phone Musings
Mr. Takashi Yamanaka, Deputy Managing Director,
Mobile Research Institute, NTT DoCoMo
As the former Executive Director of the i-mode
business division of NTT DoCoMo, and one-time CEO of the
DoCoMo AOL joint venture, Mr. Takashi Yamanaka is a true
veteran of the mobile phone industry. In his current role as
Deputy Managing Director of NTT DoCoMo’s Mobile Research
Institute, Mr. Yamanaka plays the role of thought leader,
focusing on how to envision the mobile society. His research
and analysis of trends and opportunities in the mobile phone
industry are not only insightful but practical, given his
decades-long career in networking in Japan. We recently had
the opportunity to hear his words of wisdom at a Japan
Society panel discussion entitled “Digital Networks in Asia:
Trends and Opportunities”. Mr. Yamanaka’s presentation
entitled “Competition in 3G Services in Japan”, was followed
by extensive questioning which brought forth several unique
analyses relevant to mobile phone usage both in Japan and
worldwide. This month’s Bridge Builder features key
highlights from Mr.Yamanaka’s comments.
Mr. Yamanaka’s speech began by outlining
some of the more important developments in the 3G mobile
phone business, namely the introduction of flat rate data
service instead of the traditional pay per packet business
model. The flat rate for data is expected to be a welcome
feature for by high-end users, especially those with 3G. au
started its flat rate service in November of 2003 while
DoCoMo followed suit only recently (June 2004). Mr. Yamanaka
then focused on the unique features of Japan’s market. Of
interest is the fact that while most users send/receive
messages using the Internet, many of them do not have clear
recognition that they are connected to the Internet through
their mobile phone. Also of importance is how much of a
content platform services such as i-mode have become: DoCoMo
currently has 4,118 i-mode menu sites.
But it was Mr. Yamanaka’s comments on the
differences in mobile phone usage between the US, Europe,
and Japan that really caught the audience’s attention. For
example, when talking about the way mobile phones are
actually used, he emphasized that there are major
differences. Americans use mobile phones primarily for voice
calls while the Japanese use a mix of voice, data, and
messaging. Americans use their mobile phones by holding the
phone to their ears like an ordinary phone. The Japanese
meanwhile treat the mobile as an information access device
and hold the phone screen out in front of them for viewing.
Europeans are apparently somewhere in the middle of these
extremes.
One highly active discussion of the evening
centered on mobile phone design, and phone etiquette. Mr.
Yamanaka pointed out that Japanese users do not use headsets
or ear microphones in order to use their phones because it
is considering confusing to others. Others in the audience
and panel added that it is generally considered rude to use
mobile phones on trains and in public places. As a result,
many Japanese, especially those on trains, use the messaging
and information retrieval features of the mobile phones. All
of these cultural nuances have an effect on design making
the Japanese mobile phone look different than those in other
countries. But Mr. Yamanaka commented that a global
universal design, acceptable to all cultures, may one day be
possible with the right US-Japan cooperative efforts.
Imagine a day when one phone can finally be sold worldwide-
that kind of ubiquity would truly bring us close to the
mobile society Mr. Yamanaka is researching.
For more information on the Japan Society,
please visit them on the web at
www.usajapan.org .
|
|
,

WPC EXPO 2004
October 20-23, 2004, Tokyo
Big Sight (Tokyo International Exhibition Center)
Exhibits feature all manner of next generation
computer and digital interface technologies.
International Broadcast Equipment Exhibition 2004
November 17-19, 2004,Makuhari
Messe (Nippon Convention Center)
Broadcasting equipment of the highest level will be
gathered under one roof, allowing the Inter BEE to serve as an
exceptional occasion for the international exchange of technology and
the extensive stimulation of market demand, and to thereby help create
new business opporunities.
Call Center CRM Conference
November 18-19, 2004,
Sunshine City Convention Center Tokyo
An exhibition of CALLCENTER and CRM products and
services on site.
Advertise
Use the Japanalyzer newsletter to reach a technology savvy, high profile
Japanese audience. Send inquiries for advertising in the Japanalyzer to
advertise@kanaboconsulting.com!
|