‘Global Agenda Seminar’ of Professor Ishikura

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I assume that many of the visitors of my web-site know about Professor Yoko Ishikura.  We co-authored a book titled ‘Sekai kyu kyaria no tsukurikata (How to build a global career)’.  But to tell you the truth, she kindly did most of the work.  She recently published another book with a title with a strong impact ‘Senryaku Shifuto (Strategy Shift)’.

I introduced this book several times to you in this web-site, as well as her ‘blog’ URL which appears in my blogroll (at the right bottom of this page) for your reference.  I recommend that you visit her blog now and then because it is actually quite stimulating and inspiring.

Professor Ishikura has launched ‘Global Agenda Seminar’ (this web site is in Japanese) every once a month for about a year.  I was invited to help, and joined in its opening session as a speaker.

We did several preparatory discussions via e-mail.  There were about 50 or so participants.  ‘2/3’ of them were in their 20s or 30s and the ratio of male and female was ‘50=50’; which was very nice.  I decided to talk in English, and with a slight nervousness, went off to see the participants.

For details of the seminar, please visit the web-site of Professor Ishikura ( in Japanese).

Difference between ‘Manufacturing (‘Mono-zukuri’)’and ‘Story Telling (‘Mono-gatari’)’ for Customers

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What is the ‘strength’ of Japan?  When asked many people say that it is ‘Manufacturing (‘Mono-zukuri’)’, ‘Technology’, or ‘Takumi no Waza (‘the Great Craftsmanship’).  However, I would say that they are important, but may not be enough to create needs, capture the hearts of customers to make them open their wallets, or develop new markets.  Here is where ‘The Creation of New Social Values’, in other words, exactly ‘Innovation’ of the global age is urgently needed as global competition.  This is the theme which I write about frequently and repeatedly in this site as well as elsewhere. (Ref.1; in Japanese) 

In addition, as Asia continues to grow, I don’t think that it is difficult or impossible for Asian people to catch up with and become competent in the skills of ‘Mono-zukuri’ or ‘Technologies’

Then, I ask you, what is the ‘weakness’ of Japan?

From my point of view it is, most of all, the drastic shift to Global World.  The world has transformed from ‘Trilateral Japan, U.S.A., and Europe’ to Global Market Economy in the last 20 years.  In such circumstance in the face of rapidly rising Asian economies in ever flattening world, is Japan able to build a great mid to long term vision, draft core missions with strategies, negotiate, and act?

It is also the power to understand customers and deliver them ‘stories’. (Ref.1; in Japanese)  In other words,  an ability to grasp the needs of the customers, to know them well, and feel as they feel (Ref.1).

Compare Japan with western countries or Asia, or Latin Americas in this growing global society.  How good is our organizations – are Japanese ‘leaders’ capable of creating good strategies, make quick decisions and act?  We must admit that these aspects are the ‘weaknesses’ in current Japan.  You have to think why? So, let us work hard and collaborate with our partners to move forward with speed to reach our common goals.

The Asahi Shinbun sends this message out clearly in its January 8th morning edition on 1st and 3rd pages, in an article titled ‘Excellent Technologies of Japan and the Problems They Face’.  My interview also appears in page 3 at the left bottom as a column. What I am saying in this column is basically the same as what I repeatedly write in my blog postings, but to have it printed in such a major newspaper makes me happy.  Compared to my site, newspapers can reach incomparably broader readers.

Korea wins the Nuclear power plant bid at United Arab Emirates – Part3

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As a follow up of my report on the victory of Korea which I have been writing about in a series of Part 1 and Part 2, below are some interesting reactions of Korea, France and other countries

By the way, the person in charge of this project in Abu Dhabi referred to in my previous column (Part 2) is ‘Prince Mohammad’, correctly ‘The Crown Prince Mohammad’I have had the honor of seeing him twice in person sometime ago and just by listening to him I could clearly see his wisdom and intelligence.  This Crown Prince Mohammad is the person who is mentioned as the ‘top management’ in the comment #1 which I have quoted in my report Part 2.

As always,The Economist or Chuo Nippo of Korea (Japanese site) provide us with some movements.  How shocking it was for the French, the top of the world, is described in the report of ‘France 24’ titled ‘UAE nuclear deal: a French flop?’.  France has already started planning the next strategy  based on the analysis of this defeat.

Chosen Nippo continues to send us vivid reports and follow ups.  Here are some titles of the articles which I have quoted from the site.  I think Japan can learn much from this kind of information

Exporting nuclear power: Reversal after reversal, behind the scene of negotiation (Part 1); in Japanese
Exporting nuclear power: Reversal after reversal, behind the scene of negotiation (Part 2); in Japanese

Exporting nuclear power: Search for target after UAE, total war in opening doors of overseas nuclear market. (Part 1); in Japanese
Exporting nuclear power: Search for target after UAE, total war in opening doors of overseas nuclear market. (Part 2); in Japanese

Exporting nuclear power: ‘This contract makes Korea brother of UAE for 70 years’; in Japanese
Exporting nuclear power: ‘Impressed by Korean spirit of “let’s try and see”.’; in Japanese

A Glowing Achievement for Korea

KEPCO Clinches Mega Nuclear Plant Deal with UAE

Then, what are the reactions of Japan?  I have written on it in my earlier reports (1 and 2).  My advice is to learn from the contents in this Part 3 or elsewhere, compare and think hard.  Winning and losing is a part of competition, so reflecting and humbly learning from the experience would be the first step to next move.

I think that difference of top management of the organization; whether the leader is a ‘winner in tournament’ (basically, one who avoid mistakes will make it through) or one who ‘won in league’ (one who learn lessons from his/her defeats will climb up the ladder) will be clear and causes effects at situations like this.  Refer to books by Kazuhiko Toyama, ‘Yubi ippon no syunen ga shyobu wo kimeru (A finger-tip of obsession decides the winner), ‘Kaishya wa atama kara kusaru (A company will rot from the head)’ or Ref.1 .  People without any personal experience of fighting hard in their young age tend to lack spirit of learning lessons from defeat, or seeing chances for growth in defeat ? in other words, these people lack adventurous sprit, spirit of entrepreneur, value of‘nails that stick out’ (Ref.1, in Japanese)

For Japan that failed to grow and now suffered ‘lost 20 years’ after the bubbles, 2010 will without doubt be the crucial year.

Korea wins the Nuclear power plant bid at United Arab Emirates – Part2

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What were the reactions to the victory of Korea in the international bidding on nuclear plant contract?  Here are some examples which I have gathered through my local sources.

1.  ‘The result was no surprise, but certainly was shocking.  Nuclear power project is accumulation of SYSTEM in every sense, and that Korea proposed a lower price by 10% and has won the trust of UAE suggests the reality of decline in competitiveness of Japanese industry.  Japanese industries stressed in their presentation only its high techs and quality of appliances, without any comments on the safety control of government or how capable Tokyo Electric Company (giant electric producing house of Japan) is in running the system, which was a sharp contrast to the overall aggressive presentation of Frenh team. The difference of their view (an ‘easy way’ of thinking based on the faith on their technologies) apparently caused a miss-match between Japan and the expectations of the customer (Japan has neglected the importance of building network of ‘personal connections’, which takes time).  This sort of difference was such that I hear some leaders of UAE have actually given advice to Japanese top leaders about it.’

2. ‘Whole Korea worked on this, by contrast.  I feel that we have to send young people to overseas and invite foreign talents to Japan ? this is, in my view, the only way for Japanese to recognize how fast the world is changing.  In fact my company also lost a competition for a mega project at Abu Dhabi to a Korean company.  We absolutely have to make people more international minded- which I believe that this is the key to the success of management in the future.’

3. ‘This success was not only good for strengthening ties between Abu Dhabi and Korean electric company but also in other fields (semiconductors, ICT, energy (Masdar), education, etc.)’

4. ‘People say that Korea was outstanding in following 3 ways on this bidding of nuclear plant agreement, that in fact the proposal was the State of Art; 1) Competitive price, 2) Shortest construction period, 3) Offer of support for education and human resource development in nuclear energy field at UAE ‘

5. The President of Korea, worried about the situation, sent a large mission to UAE, including the President of KAIST as the core member. KUSTAR (Ref.1), was designated as the only university in UAE to offer courses in nuclear energy.  This opened the way for Korean Professors on nuclear energy to visit UAE, and students from UAE to study at KAIST.’

6. ‘Korea was trying to see things as Abu Dhabi would see: it perceived the needs of Abu Dhabi, what kind of cooperation it was looking for.  Korea understood that human resource development was the key to survival for Abu Dhabi.  This is why Korea won the heart of the Crown Prince.  I understand that the Crown Prince and the Korean President became close enough to have direct conversation by cell phone (reference is available on Chosun online, as I have introduced to you in my column, part1)’

7. ‘Also, responding to a remark that ‘Korea is unable to produce all necessary parts or components of the nuclear power plants, so it must order them to other countries’, Dr. Myung Seung Yang, President of Korea Atomic Energy Research Institute (KAERI) commented that ‘In shipbuilding and semiconductors also, we don’t make them 100% domestically, but import necessary technologies from overseas.  What is important is the fact that Korea possesses the ability to design, run, and maintain those systems as a whole and export them’.’

8. ‘In contrast, Japan was dwelling too much on the special performance of parts, praising self as the ‘excellence in manufacturing (‘monozukuri’) giant.’

9. ‘I see clearly how Korea attacked Abu Dhabi as one nation.  Korea, confident after winning this bid in UAE, is now moving forward to other markets such as Turkey or Southeast Asia.  President Lee has experience of working for a construction company, so he seems to have giving advices in makings of the plan presentation to be submitted to Abu Dhabi and helping staffs to polish it.’

In contrast, the leaders of Japan was busy with the domestic issues following the Administration change to new political party, so there may have been a huge difference in the level of support by the government.  You can use this as an excuse, if you would….PM Hatoyama visited India at the end of the year and announced that ‘Japan will support nuclear plants in India’ (who advised to say so?), but obviously it was a bit late to notice the trend.  I wonder what sort of outcomes this comment is going to produce in the future

In India also, Korean business people (in Japanese) (Ref.1 in English) are known for their hard work, so even if we do have some technologies on clean energies, this does not necessarily allow us to feel safe.

To share this experience at UAE among government and industries, analyze the reason for defeat (Dr. Ikujiro Nonaka is also point this out repeatedly,learning from failures…), make good plans for the next step, and act ? this is most important.  I am writing this column precisely for this reason.

Basically, current age is not of ‘just manufacturing ability (‘monozukuri’)’, but of‘the entire story telling (‘monogatari’)’. (in Japanese).  Also, the time has changed to ‘Demand ? driven’ innovation.

Korea wins the Nuclear power plant bid at United Arab Emirates – Part1

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In the end of last year, news that surprised the world came in.  There were some reports on newspapers about this international call for building and operating 4 nuclear reactors for the United Arab Emirates (UAE), and this had been quite a topic of the time.  Japan, France, U.S.A., and Korea raised hand.  Two joint teams of Japan and the United States; ToshibaWestinghouse and Hitachi - GE.  From France, Areva, the strongest  in the world (I think Mitsubishi Heavy Industries is in collaboration).  Korea was a new member in this Big Business.  Toshiba team retired early so there remained only 3 for competition.

And Korea won.

I wonder how shocking this was for Japanese industries.  France must have had strong confidence since President Sarkozy was involved actively in campaigning.  Naturally the result must have been quite a shock to France.  Some articles said that there is a chance for Korea because ‘Korea offers lower price’.  But this was not the only reason as you will see in sites which I quote to you below.

In Japanese:
Nikkei, Mainichi,Sankei, Reuter,


Asahi writes about Hitachi on its New Year issue.

On the other hand, let us see what is going on at the field, and how things are reported in Korea.  After all  it is a big news that calls for attention.

In English:
Reuters, Wall Street Journal, Korea Times

Japanese translation of Korean Newspapers:
The Chosen Nippo  (English version is The Chosun Ilbo)  offers a lively report in ‘Part1 and Part 2’ (both in Japanese.  For Japanese text in PDF, please refer to Japanese site of this posting.)
  

Chuo Nippo (English version is JoongAng Daily ) has several (Ref.1, 2)  (in Japanese) (Ref.3 ) (in English)

Editorial shows that Korea is not just rejoicing over the victory (in Japanese)  (Ref.1) (in English)

The point is how to handle and move this kind of National-level highly competitive projects.  There is much to learn from Korea.

A Happy New Year

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After 50 years, the new Administration emerged for change, yet the issues to face are countless, and the world is going through a drastic change.
 
My wish for this year is that greater number of individuals will emerge in government offices, political arenas, business and industry, journalism, universities, science community, NPO, etc., etc. ? people with vision and action.

It is also important to step aside for a moment at times and try to see things from different perspectives, and see yourself.  As I have been pointing out every now and then, trying to see Japan from‘outside point of view’ (Ref.1), from the world or from Asia, is equally necessary.

With high spirits and firm vision of ‘Japan in the global world’, let us start year 2010, the year of great change, making it a year of hope in which each one of us will seek a bright future.

Khalifa University, Abu Dhabi

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From Washington DC I took a flight to Dubai.  I was on the same flight 6 weeks ago, and flew to Dubai 3 weeks ago as well.  In total I flew to Dubai airport 3 times, once to visit Dubai and  twice to visit Abu Dhabi in the past 6 weeks.  Two of the return flights were from Dubai to Kansai Airport and another was to Singapore.

The purpose of visit is the same as my some previous ones; to support Khalifa UniversityDr. Elias Zerhouni, the former director of the National Institutes of Health joined our team starting from this meeting and his participation stimulated the discussion.  Dr. Zerhouni, originally from Algeria, moved to the United States after graduating from Medical School, worked at Johns Hopkins Univesity, then was appointed to the Directorship of NIH, the most distinguished and responsible position in medical research of US government.  I have had the privilege of knowing him for these years (in Japanese) and am quite impressed by his wonderful personality.

Khalifa University, which I have been helping, is one of important Projects of the government of Abu Dhabi. I have contacted Dr Zerhouni for his support since I thought that advice from a person at higher position, a person with distinguished and international reputation, who understands Arabic civilization and culture personally, would be very helpful.  It was a great joy when I received his immediate affirmative answer.

The meeting itself took place for only one day, but the discussion was very active and fruitful.  I firmly believe that participation of someone who is familiar with both Western values and Arabic values, who knows how to communicate with both sides is so very important and necessary for this kind of project.

IMG_1982
Photo; At the lobby of the Emirate Palace, with Dr Zerhouni. 

Recently, The U.S. Department of State announced the appointment of Science Envoy for Middle East, and Dr Zerhouni was among the three, with Dr. Bruce Alberts, Editor-in-Chief of ‘Science’ and Dr. Zuweil, a Nobel Prize laureate in Chemistry, originally from Egypt.  This is another significant step forward of US Science Diplomacy.

Such rich variety of human resource (Ref.1) without doubt serves as one of the strong core assets of a nation in this global era.  I met Dr. Zuweil several times in the past, and deepened relationship with Dr. Alberts during these 10 years, since he was the President of the National Academy of Science of USA, through many international scientific community works or events, often related to SCJ (Science Council of Japan).

Toyota Cup (FIFA Club World Cup 2009) was being held at Abu Dhabi during my visit.  As I watched in TV later in Tokyo, it was again Lionel Messi (Ref.1) that brought triumph to his team, as you all may know.

Nobel Peace Prize Speech by President Obama, My concerns about Japan

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The whole world was watching and paying attention to President Obama’s speech on his Nobel Peace Award ceremony ? what he will say.  After all, there were great controversies about awarding him the Nobel, and USA has just decided to send troops of 30,000 to Afghanistan.

Unlike the days when television was the only live visual media, now we have tools to see the lecture on our computer screen (Ref.1), repeat it as we like, read the text, examine how it is treated on variety of major newspapers of the world, or editorials.

Although the awarding committee’s decision was controversial, and the timing of the award speech was very challenging, I think that the script was very good, very much effort was put in.  I can well imagine the difficulty and effort the President and his staffs made for this.  Especially, President Obama has been pressed particularly hard with issues such as sending additional troops to Afghanistan, its poor economy with high unemployment rates, handling of financial institutions, healthcare policy reform, etc…so challenging that the polls were indicating declines in the support of the President.  In such circumstance, the words of the Leader matters so much.

I happened to be in Washington DC at the occasion. In the Washington Post in its December 11th issue, the President speech in Oslo was well received (Ref.1, 2), as the ‘President of America in wartime’ and the role of USA in these several decades, in accord with the philosophy and ways of thinking of President Obama.  In our age, many people express their opinions through new tools such as blogs, but the weight of the words of the leader of a nation is incomparably heavy.

Articles on the New York Times (Ref.1) can be taken also as good references.

Comments before the ceremony by ‘experts’ on what they thought President Obama should say at Oslo just was also an interesting collection. 

By the way, I found another interesting article on the same day’s Washington Post titled ‘Does Japan still matter?’ .  The message was to ask readers not to forget Japan, a country which is forgotten now.  It ends by saying ‘So far, Japan’s new government has not defined policies that could restore economic growth and lift the country out of its funk. But America should be hoping that it can. And if it wants to regain some confidence, it makes sense to treat Japan as though it matters. Because it does.’

On the other hand, the New York Times of the same day has a column with a title  ‘Obama’s Japan Headache

I am sad – no, worried about a series of unsteady messages from the leaders of Japanese government.  They continue to be insular minded and lack enthusiasm or energy to send out messages to the outside world. However, the fact is that the words of Prime minister or ministers even in many seemingly insignificant occasions are followed and read by the rest of the world, even when they are addressed to domestic audience.  But the problem is that many abroad (or even in Japan) cannot see what Japanese policy makers are actually thinking.  It is dangerous to under-evaluate the impact of the spoken words of the leaders.  You cannot take back what you have said.

The problem lies not only in government.  The other day, a team of guests from a well known ‘Think tank’ in Washington DC visited me and during our discussion they asked me, “Why did Keidanren close their Washington office early this year?”  Does everyone in Japan know this?  I imagine so.  I knew it, too, but was so embarrassed in answering.

Anyway, the age of Internet is convenient but also provides you risks.  Your ability, words, actions, or thoughts will be known to the world often in seconds, and be mindful it is hard to convince people abroad with reasons that work just for Japanese people.  The leaders of this global age, admitting that each has their own situations and problems to face, carry very, very heavy responsibilities.

Conference at the World Bank ? and ‘Let’s work at the World Bank’

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On December 10th and to 11th, I joined a conference organized by the World Bank in Washington DC, ‘2009 Global Forum: Building Science, Technology and Innovation Partnership for Building Capacity’

I have been helping plan this meeting since last year (Ref.1)through this year. Dr Peter McPherson (we met this April ) and we wrapped up the session with several recommendations about the role of World Bank in the future.

From Japan, senior councilor Mr Iwasaki of the cabinet administration office and Dr. Ko Ito at JICA gave nice presentations.

The outline of my recommendation was: 1) As is clear from the presentations of two days, each developing country that receives support embrace different priorities (not only poverty, but conditions like primary education, etc), and from variety of stake holders that work on variety of activities for developments, many new model activities to be models could be discussed as emerging successes; Science Academies, Universities, or research centers are implementing their networks, collaborations with embracing developing countries; in the face of the world that is increasingly becoming flat (for instance, cell phones), consider  how to take advantage of this new advances; and the importance of taking into consideration the differences and overlapping of ODA policies of each recipient and donor countries. 2) The great advantage of the World Bank is that it has routes of direct communication to every government thus is able to make mid-long term and focused recommendations. 3) These new kinds of successes presented at the conference may not fit neatly to such public institution as a Bank, but Bank could consider it as its policy to spread this sort of projects. 4) Bank could invite people who carried out these successful projects, or its leaders, to serve as 'World Bank Science Envoys or Ambassadors’. 5) Introduce innovative activities, recognize them as World Bank 'Flag-ship’ model projects, post them on web sites, search for possibilities of applying them at local communities.  By doing so encourage local communities to adapt policies that are practical so as to, in the end, enhance the possibilities of national policies being put into action..

Comments by the participants of this meeting are posted on YouTube for your reference.  I will inform you once reports or websites are ready.

During my stay in Washington DC, I had opportunities to see people such as Ms Izumi Kobayashi, the Executive Vice President at MIGA of World Bank Groups、one of the shining Japanese women (she is hopping all over the world)、His Excellency Fujisaki, Ambassador to the United States of America, and science attache of the embassy, Dr. Inutsuka, Dr. Hitoshi Murayama who is active at University of California at Berkeley and University of Tokyo,Dr. Calestous Juma (Ref.1) of Harvard University, Dr. Ohde of Hitachi Washington DC, and some of senior executives and officials of the National Academy, senior scientists of National Cancer Institute.

Thus, I have been invited for dinner three nights each in DC, by these friends with their friends, thus plenty of time for lively discussions.

The President of the World Bank Dr. Zoelick recently visited Japan.  World Bank wants to hire more Japanese staffs and senior staffs.  I think even working there just as a transfer for a few years provides you a great chance of learning of developing and widening human network.  Also many nice things can happen such as understanding the world movement or advancing your own career and vision for future business opportunities.  If you are interested in research careers, World Bank has a history of nurturing so many experts; Dr. Stieglitz of Nobel Prize on Economic or Dr. Nicholaz Stern of the ’Stern Report’- to name just a few.  How about thinking big, drawing a larger picture about yourself, your company or even your country?  I think this is a very good opportunity.

Thank you so much to everyone who were so kind to me during my stay in Washington DC.

‘Cartels of the Mind’ part 2

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By the way, why is it that I did not notice this book ‘Cartels of the Mind: Japan’s Intellectual Closed Shop’ and its Japanese translation until recently?  This concerns me a bit because I have been repeatedly pointing this (closed system of Japan) out to public in my writings, lecturings, and in this blog postings for quite a long time.

Number of people working for universities expressed support for my opinion or at least showed concerns about the problem I have pointed out, but of course I assume that there were also many of those who thought that I was a ‘big mouth’ that annoy them.  I know that quite a number of officials at the MEXT (Ministry of Education, Culture, Sports, Science and Technology) were also aware of my discussion.

Perhaps there were very few book reviews and no ads were on the newspapers on this book translated in Japanese.  Mainichi Shinbun, the publisher, might have issued some advertisement on their newspapers, though (I am not a subscriber to it).  It could be that since this book also clearly criticizes the closed system of Japanese journalism, the Japanese newspapers did not have much willingness for book review or advertisement of this book to public.  Does anyone know what really happened?  Well, it could be that I merely overlooked those book reviews or ads.

It seems that Professor Kobayashi at Princeton University was also concerned about this.  He sent me 5 book reviews from USA as below, but said that he could not find any in Japanese.

a. Japan Review.net: Interview of Ivan Hall by Victor Fic, January 26,
2002.

b. “Apartheid Japan-Style,” Reviewer: J. Marshall Unger, Professor of
Japanese, University of Maryland, in THE (Times Higher Education), July
17. 1998.

c. “The ‘Keep Out’ Signs on Japan’s Professions,” Reviewer: Robert Neff,
Nov. 20, 1997, Business Week.

d.Review by Raymond Lamont-Brown in Contemporary Review. Oct, 1998.

e. Review by J. Mark Ramseyer (Harvard University) , Journal of Japanese
Studies, Vol. 25, No. 2 (Summer, 1999), pp. 365-368

‘Cartels of the Mind: Japan’s Intellectual Closed Shop’ is without doubt another book that I strongly recommend to you.

Do we still need ‘Kurofune’ to open up our nation to the outside world?  The chances are that ‘Kurofune will not come any more’ ……  It’s so sad.