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What's New  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.

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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  .


Previous Interviews

Upcoming Events,

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.

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