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What's New  Sep./Oct. 2003

Market Snapshot - Japan
RFID- leading the way to ubiquitous computing

Each month the Japanalyzer takes you inside one of Japan’s IT industries- showing you who’s who and where the market is heading. This month we focus on the recent spate of RFID activity in Japan whereby new research organizations are forming and inspiring trials aimed at creating ubiquitous computing environments. Radio Frequency Identification (RFID) is a method of identifying unique items using radio waves. “RFID tags” are small devices; often in labels that can transmit information over a short range for identification purposes- a big advantage over bar code technology, which requires a laser to be in sight of a bar code to read it. Radio waves do not require a line of sight and can pass through materials such as cardboard and plastic. The big promise of RFID is in its ability to make logistics “aware” as each physical item in the supply chain can be tracked in real-time. For several Japanese companies and organizations, this promise extends to pervasive computing and the ability to bring network computing even further into everyday life.

Leading the RFID movement on an international level, and most recently Japan, is the Auto-ID Center, founded at MIT in 1999 with the aim of creating a global system for tracking goods using a single numbering system called the Electronic Product Code. After establishing labs at Cambridge (UK) in 2000 and the Univ. of Adelaide (Australia) in 2002, the Center opened a lab at Keio University in January of this year. Prof. Jun Murai, who leads the Keio lab, is professor of environmental information at Keio University, president of the Japan Network Information Center, and general chairperson of the WIDE Project (a Japanese Internet research consortium). A pioneer in building the Internet in Japan in the early 1980s, Prof. Murai is expected to lead the Center in continuing its innovations. Several companies in Japan are involved in leveraging the Auto-ID Center’s specifications to pilot new applications based on RFID. Last month, a system for tracking shoppers as they browse for books was demonstrated at the Tokyo International Book Fair by Sun Microsystems (who worked on database component of the project), Dai Nippon Printing, NTT, and Dutch chipmaker Philips Semiconductor (who provided the RFID chips.) By placing tag readers on the shelves of bookstores, the new system allows booksellers to receive information such as the range of books a shopper has browsed, how many times a particular title was picked up and even the length of time spent flipping through each book.

Yet the Auto-ID Center is not the only organization in Japan promoting RFID for the supply chain. In March of this year, several major Japanese companies announced that they had joined forces to back a new group called the Ubiquitous ID Center. The stated goal of the center is “to develop technologies that will enable the widespread use of RFID and other pervasive computing technologies.” Among the center's backers are Hitachi, NEC and Toppan Printing. Prof. Ken Sakamura, a professor of Information Science at the University of Tokyo and the chief architect of Japan's TRON Future Computing Project, runs the center. Unlike the Auto-ID Center, which seeks to create a single numbering system, the Ubiquitous ID Center uses a meta-code format. Meta-tags stored on the RFID chip refer to other number systems, such as the JAN Code in Japan, the Universal Product Code (UPC) in the US and the International Standard Book Number.

On an industry-level, RFID has inspired real world trials by companies realistically contemplating the technology to improve efficiency. For example, the technology consortium that represents the Japanese Airline industry, the Advanced Airport Systems Technology Research Consortium, is testing the "hands-free" delivery of luggage through the radio tagging of luggage. The consortium believes that with such a system in place, ”bags could be picked up from travelers' homes by courier, processed and then loaded into the aircraft without further involvement of the passenger.” The consortium will test the system at Singapore's Changi, Amsterdam's Schiphol and New York's John F. Kennedy International airports later this year. The Narita Airport Authority is aiming to commercially launch the system in two to three years. In the wireless communications industry, key players NTT Docomo and KDDI are doing pilots with shoppers in Tokyo’s Roppongi and Ginza shopping districts. Individuals participating in the pilot, receive an RFID device that can be attached to their mobile phone. Users can ask for promotional information via their mobile phone for whatever store they are visiting, courtesy of the RFID’s transmission of the users ID to a nearby tag reader. Once the in-store system identifies the user, an email is sent to the user via e-mail. The KDDI Ginza pilot is expected to have 500 users while the Docomo trial in Roppongi will be test on a group of 4500.

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This Month's Bridge Builder
Featuring the real voice of IT across the Pacific

Sep./Oct., 2003 

Honesty and Acceptance: the Keys to Building Intercultural Trust
Mr. Akio Orii, VP-Marketing & Business Development, KDDI Labs USA, Inc.

Differences in self-expression during Japanese and American encounters are often explained from the point of high-context and low-context cultures. Since Japan, a high-context culture, is a homogeneous country, people pretty much share similar lifestyles, cultural backgrounds and experiences. Thus, their communication activities are organically driven by understanding each other through careful awareness of context, called “sasshi” in Japanese, instead of completely stating one’s thoughts and/or feelings. Human communication in such culture requires this “sasshi” ability to reach out for greater understanding of each other. By contrast, in low-context cultures as typified by the U.S. and some European countries, diversity in religion, historical background of family, and educational environment encourage people to be unique individuals. They respect each other’s individuality and therefore tend to clearly express themselves to others. In such low-context culture, having the skill of “clear self-expression” is critical to increasing understanding levels between communicators and creating trust amongst each other. It sounds simple in theory, but the differences in these communication styles can be understood only through one’s actual experience and continuous efforts in everyday life. Mr. Akio Orii, VP of Marketing & Business Development at KDDI Labs USA, Inc. (based in Silicon Valley) is one of those people who has both “sasshi” and “clear self-expression” skills through his extensive experience and who carries these skills into business practice. His belief that “accepting each other’s abilities is the foundation of a trusting relationship” is the starting point from where people from different cultures are able to cooperate each other.

Q. Please tell us about your initial motivation to come to the U.S. and your current role at KDDI Labs USA, Inc.?

A. It was in May of 1993 that I was assigned to the SF branch of KDD America. Before that, at the former KDD, I had been involved with strategic planning for global data communications services after 4 years in the legal department there. In 1989, KDD America was established as a U.S. corporation by combining several KDD liaison offices that had been here since the 60’s. This move was in response to the market entry by many foreign carriers after the 1985 initiation of Japan’s open market policy for the telecommunications industry. KDD America did not introduce its own services in the U.S. until 4 years after establishment. I dealt with the resale-based and facilities-based license application to the U.S. government, the development of strategic alliances with UScarriers, and the introduction of telecom services to U.S. market with the cooperation of our NY Headquarters.

After some time working in NY and serving as the General Manager of SF branch office, in April of this year I transitioned to KDDI Labs USA, taking over responsibility for marketing and business development. In 1999, when KDDI Labs USA was opened here, its role was to conduct research on state-of-the-art U.S. technology, native to Silicon Valley, and report back to Japan. These days however, we are engaged in three major areas. First, a broad range of R&D activities that support research at KDDI Labs and in conjunction with local universities such as Stanford, UC Berkeley, UC Davis, UC Santa Barbara and so forth. Among our own research activities, Network Security and IPv6 in particular, have started showing successful results that are expected to add more value to KDDI’s global communications services. The second area is research on cutting-edge technology and market trends in the U.S. This ranges from research on specific topics requested by KDDI Labs and other KDDI group companies to detailed research on technologies and services that would directly increase the value of KDDI services. Finally, the third area is marketing; we promote a wide range of technologies developed at KDDI Labs at NAB, etc. in order to diffuse them into the U.S. market and not just Japan.

Q. What are the main research areas that your lab targets recently?

A. KDDI advocates itself as a ”Ubiquitous Solutions Company”- thus it provides comprehensive services ranging from wired to wireless networks as well as voice and data communications. In the light of this mission, our target research areas are: broadband, content delivery and management, IPv6, security, wireless technology and more. We’ve seen both positive and productive relationships with U.S. companies emerging and broadening through our technologies. And we’ve undertaken joint research and development with American companies that own advanced technology. For U.S. ventures seeking market entry into Japan, we work with them towards successful product introduction through: testing of their potential using our infrastructure, design proposals based on the test results, and in some cases, joint development.

Our core team consists of two PhD holders, our President and CTO, who are practicing experts in Application and Network technology, respectively. I round out the team with over 10-years of business experience in the U.S. telecommunications industry. Each of us brings our knowledge and experience together to accomplish our mission. We have been involved with many deals with research institutions, companies, and universities and going forward we wish to cultivate new collaborations with other companies.

Q. Through your over 10-year business experience here in the U.S., how do you perceive the similarities and/or differences between Japanese and American cultures?

A. Let me start with the cultural differences. As many people would say, it is often necessary for Americans to make a clear line between “Yes” and “No” in any given case. In the U.S. culture, saying “No” is appropriate as long as there is an existing trusting relationship, where each person’s ability, knowledge and performance are mutually recognized. I don’t think honesty-(saying “no”) would make a relationship go sour. Rather it’s out of genuine consideration that we try to avoid wasting other people’s precious time and resources. Once I was an employee on loan to an American carrier where KDD had invested then, I was the only Japanese person there back then dealing with the company’s new business plan and the introduction of their new products to the market. The company, although small, allowed me to learn how to do business in America, and understand the American decision-making process and how fast it can be. This was the real time when I truly experienced cultural differences.

On the other hand, the bottom line is that we are all people no matter where we come from. It all comes down to one’s own personality that is the foundation of personal and business relationships. I often hear that “relatively speaking, English does not require a linguistics system as complex as that in Japanese”. However, factors such as one’s position and negotiating power can affect one’s speech style even in English. In addition, linguistics characteristics vary even between East and West coasts. So it is very important for us to fully understand the business culture and customs by region as well.

Q. Through your own experience here, what do you think are the key points of successful business in the U.S.?

A. As I mentioned earlier, trust lies beneath both community and business in building a solid relationship. It is not like a “back-scratching” relationship, but one that is based on acceptance. The logical approach is indeed important, but that has to be persuasive to the other party. I believe that “honesty” is the crucial point in every human relationship: for example, learning how to ask people about things you don’t know or sometimes listening to expert opinions. It really adds up and before you know it, a positive relationship is formed. What’s more, in order to keep the ideal “give” and “ take” business relationship, it is important to always work on having something to “give”. As long as you’re doing business in America, English skill is a basic requirement. However, English is really just a tool to carry information, one’s will, and ideas to others. In that sense, building up accurate information well articulated in one’s native language, Japanese, is much more important. And I believe that in the end, this contributes to establishing a reciprocal relationship both socially and personally.

Thank you Mr. Orii. For more information regarding KDDI Labs USA, Inc. and their research activities, please visit their website at http://www.kddilabs.com .


Previous Interviews

Upcoming Events,

Global Venture Forum 2003
October 20-21, 2003, Mydome Osaka
This forum offers a meeting place for high-tech venture businesses with advanced technology and products in and outside Japan. Individual presentations of approx. 30 min. are given by each company, followed by business negotiations and information exchange by interested companies on sales, technological tie-ups, joint venture, license production, fundraising, etc. (See our interview with Mr. Ryoichi Nakano, Osaka Chamber of Commerce and Industry, Manager, GVF Secretariat).

Internet and Mobile 2003
October 29-30, 2003, Mydome Osaka
An exhibition of Internet technology and products, mobile phone technology and products, information appliance technology and products, security, e-learning, and broadband. This program runs concurrent with the Intermedia Forum.

Database Tokyo 2003
October 29-31, 2003, Tokyo International Forum (Exhibition Hall)
Sponsored by the Japan Database Promotion Center, DPC, which reports on Japanese Databases, Electronic information services in Japan and others.

Storage Networking World 2003
November 11-13, 2003, Tokyo BigSight
This conference and expo will tackle key issues and feature case studies on such topics as the latest storage networking technologies and its future, storage outsourcing, SAN interoperability, managing storage and server assets, the role of storage systems within the Internet infrastructure and integrating diverse environments, and storage network implementation.

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