Presentation1short

• 1. Innovative mind and business environment
  Yusuke Morikawa
  COSY Inc.
  

2. Today's topics
Innovation = Totally new idea? New invention?
What makes people innovative?
Importance of mentality and business environment
Japan as No.1?
Speed of economics
3. OECD Definition of innovation 1
4. OECD Definition of innovation 2
5. Are Japanese companies NOT innovative?
Walkman
VHS, Beta VCRs
High performance motor cycles
Excellent Motor vehicles
High speed railways
Electronic Musical instlments
Hi Speed ships, JetSki
Photos from Yamaha, JR, IHI, Kawasaki Web sites
6. What happened????
2000
20XX
1979
?
Japan as No. 50?
7. New combination
Engine + bicycle = Motor Cycle
Boat + Jet Engine = Jet foil, Jet SKI
Box+ electricity + CPU = Computer
Optics + printer +CPU = Digital copier
Tape recorder record + headset = Walkman
Telephone wire code = Cell phone
Surfboad + Sail = Windsurfing sail board
Display + CPU + User experience + Service = iPad
It was not difficult to get those ideas, but difficult to make them
8. Many people says
Japanese technology is no longer competitive.
Digitization makes no differentiation among products
Japanese can not make innovative products like iPhone.
Each individual Japanese are not so smart
9. My experience in Silicone Valley
Totally different from other US areas?
Outside looking -> Just one of a country area
San Jose Down Town -> full of homeless in 1992
More cultural diversity
Indian, Chinese, Russian, Vietnamese, and lots more
When we started engineering team, the country origin was more than 10 countries.
Silicone valley fever when I moved in 1996.
Paradise for engineers
They worked hard and long hours
House rent was getting higher and higher then people started to focus on more to money and lugsually life style.
10. Printer Development
Laser Beam Printers are combination of Software and hardware technology
Engine: Minolta, JAPAN
Engine Firmware: Minolta, JAPAN
OS: Vx Works, WindRiver Corp., San Jose, USA
Printer Controller Firmaware: Peerless Systems Corp., Los Angeles, USA
Printer Controller hardware: IBM and Peerless Systems
Printer Driver: Xenographics, Irvine, USA
QA test suite: Genoa Technology, Los Angeles, USA
QA test: Minolta Systems Lab. SunnyVale, USA
Production: XEROX Corp., Los Angeles, USA
11. Typical life of engineers in SV
Managing position or startup business
Skill level
Specialist
Scientist
MBA
As they change job, they keep building
Human networks in the industry
New Job
As senior Engineer
Happy engineers
New Job
As a Junior Engineer
Intern
Training
QA test engineer
This position is
no longer safe.
Back to school
Student
Drop out
Year
12. Carrier pass of workers in JPBefore 2007
Top
management
Life level
Engineers are also the same
Middle management
Multi-national company
Top
management
Middle management
Large domestic
company
Top
management
Middle management
Small company
Student
Drop out
Year
13. Silicone valley
Business environment
It is common to start a company at their garage.
Even large company deal with small companies
Thick business support system by investors and professionals
People can move companies easily
They have a skill pool in the area
Broadly constructed human networks
Cultural diversity makes easy to go abroad
Mentality
Challenging and open mind
Good thing is good
Speed is important
Born to be worldwide
Big is not important. Excellence is important
14. Japanese Engineers and US Engineers Comparison
Royalty for research group
Is high
Local
Royalty for the
company is high
Low
Cosmopolitan
Low
Source: International technology development strategy
Saito, Itami
15. Typical Japanese Large Company model
University
Research Society
f
Market Information
Your COMPANY
You
Overseas Sales Companies
e
Industry Group
g
16. Human Network
Medical industry
COMPANY B
University
COMPANY A
b
f
a
IT industry
You
Independent
Contractor
COMPANY C
d
Your COMPANY
c
e
g
Professional
17. Idea to integration
Technology pool
Marketing
Production
Money
Sponsor
Sales channel
Mr. Engineer:
Ive got a great idea!
Human network
18. Network networknetwork!
SV has hole set of incubation functionalities
Human resources pool
UP
Knows who is important!
SV
Marketing network
Legal professionals
SV
R&D function
SV
VC and Financial professionals
19. Sometimes when you innovate, you make mistakes. It is best to admit them quickly, and get on with improving your other innovations. Steve Jobs
20. Why Japanese companies are not successful these days?
Slow decision
Lack of investment
Too much stock holder consciousness
Balance sheet oriented top management
Too many salary man president -> low skill, slow decision
Wasting engineers resources
Less training since bubble economy is exploded.
21. Japanese business environment
Keiretsu a group network is getting weaker, but it still exist.
To avoid risks, large companies do not work with start ups and small companies directory.
B to C business is getting better, but B to B business is still difficult. It takes time to increase the credibility.
COSY Inc. took four years to increase the credibility.
22. Economics of speed
Condition:
Product 800k
Purchase 500k
Fixed cost 250k
Sep.1 Sep.30Oct.31 Nov.30 Dec.31
Oct.5
JPN Net 85 days
Start
First sales
Of 800
Payment
Of 800
1000
Cash
750
Purchase -500
Then cash 250
Cash
550
Cash
0
Cash
-250
Purchase -500
US Net 30 days
Oct.5
Purchase -500
Then cash 250
Start
Cash
50
First sales
Of 800
Payment
Of 800
1000
2nd. Sales
Of 800
Cash1850
Then purchase -500
Then cash 1350
Cash1300
Then purchase -500
Then cash 800
Cash
750
Unit: Thousand yen
23. Long payment term affects company mentality
If payment cycle is long, management tend to try to reduce the fixed cost.
Salary for workers are also fixed cost in Japan.
Japanese companies are know as life time employment policy.
When the sales amount goes down, it suddenly affect the cash flow.
As a result, management start thinking of reducing total salary and related cost, but how?
Use off shore subcontractors
Use temporary workers to make fixed cost to variable cost.
Try to reduce R&D and other cost.
It makes products poor and reduce the mind of innovation!
24. Japanese companies from 2008
Multinational corporations will shift to get more skillful workers from overseas.
Domestic companies has to have only one skill or technology.
Working well with non-Japanese is indispensable skill for Japanese workers
25. World wide business is getting easier for small companies
Before (1988)
Communication cost was high: 200/min
Internet connection: not available most of cities.
Telex was still used for document transfer
Facsimile was getting popular
Only limited people can do business with abroad.
Now (2010)
Telephone cost is almost free
Video conference cost is low
E-mail, chat, skyp, Slide share, You tube, Web page,
Low advertisement cost by using Adwords, Twitter, Facebook
English: Speak or die
26. Be ambitious!
No need to work with Japanese companies if they are arrogant or slow. But they maybe change in the near future.
Word wide market is waiting for start-ups.
Operation cost is getting lower
Speaking languages and understanding foreign culture is essential for future success.
Protect your reputation and expand human network.