By James Santagata
Principal Consultant, SiliconEdge

The Sun Also Rises (陽はまた昇る ||  Yō wa mata noboru), starring Ken Watanabe (foreigners will know him from his appearances in The Last Samurai and Inception) is a riveting drama that captures the development in Japan of the nascent and soon to be ubiquitous VHS video format.

Starting as a stealth or more accurately, an unapproved Skunk Works projects within JVC (Nihon Victor Corporation) it culminated in 
the development and release of the new VHS standard to the industry.

On top of that, JVC's new format was royalty-free and competed directly against Akio Morita and his uber-powerful Sony Corporation (when you think of Akio Morita, think  about Steve Jobs before  Steve Jobs was even on the scene) and their Betamax.

Lots to takeways from this movie in terms of government pressure and cronyism in the form of MITI (Ministry of International Trade and Industry / 通商産業省 / Tsūshō-sangyō-shō) officials who had backed Betamax and, therefore, wanted JVC to deep-six their VHS format. 

Other key takeways:
- Intrapreneurship
- No Box Thinking
- Technical Innovation 
- Market-Focused Feedback Loops to ferret out new Use Cases
- Tenacity / Being Relentless
- True Leadership
- New Business Models (royalty-free industry standard)

In summation, this docu-drama really demonstrates Japanese business ethics, working styles, attention to detail and cultural expectations.

By James Santagata
Principal Consultant, SiliconEdge


This is a quick update to an earlier post I made: 
(So Where's The Next WhatsApp & How Did The Tech Cheerleader Press Miss It?)

As the Silicon Valley Cheerleader Tech Press continues to desparately look for the next WhatsApp, it's apparently been found....in China....and it's called Alibaba.

But China is apparently too far away from Sand Hill Road.  

And most Valley VCs don't do China....sure they dabble, but they don't do China...

http://www.businessinsider.com/american-investors-missed-out-on-alibaba-2014-5

By James Santagata
Principal Consultant, SiliconEdge


After Facebook's massive $19 billion USD acquisition of WhatsApp,  two question have arisen.

The first is my question. How exactly did the Tech Cheerleader Press miss out on WhatsApp? That is, after countless posts over the years pimping Quora as "it", Twitter and others, where was the love for WhatsApp? This is actually a rhetorical question so no reason to answer it.

The second question is now coming from the Tech and even Business Cheerleader Press.

"Where's The Next WhatsApp", they ask.

Take a couple seconds now and do a quick search on that phrase and you'll be greeted by almost a dozen recent articles that are predicting or searching for the next WhatsApp. 

You'll also find that these articles specifically target audiences ranging from the tech community to business folk, ad agencies and the general public.

That is to be expected, of course, when such large amounts of money such as $19 billion USD are thrown around. I can live with that. In fact, I expect that from the Cheerleader Press. It's just par for the course.

But here's the part that no one or at least very few will tell you.

The next WhatsApp is already out there and it's running fine. It may even be LINE for all I know.

But it doesn't matter, because whatever it is, the Cheerleader Press probably won't find them until they make it and even if they did, they wouldn't understand them due factors such as trait ascription bias.

Further, just like WhatsApp, the future WhatsApp may be running their operation out of a moldy warehouse and they probably aren't or won't be at Launch or Disrupt or any other events.

Why? 

First because many of these startups have very little capital reserves and they are more concerned about eating and keeping the lights on. It's prioritizing capital outlays vs expected returns.

Second, even if they have the funds, they are most likely focused on building and refining their product while engaged in customer acquisition, retention and growth, perhaps employing Lifetime Value analysis or a traditional RFM model.  Going to conferences takes not only time but energy. It's draining. And what again, is the ROI?

That's just the way it is.

And that's why people are or were like, "Hey, who the hell are the WhatsApp guys?"

Where did you guys come from? How did you build this thing? Why haven't we heard about you?

And now, suddenly they are treated like rock stars, as they should be.

And yet the Cheerleader Press will never get it,because they are victims of drinking the Kool-aid cocktail of social proof, the halo effect and various cognitive biases while subscribing to the standard Myths and Memes.

By James Santagata
Principal Consultant, SiliconEdge


That Japan like any country, be it developing or developed, has her share of problems is not in the least bit surprising or at least it shouldn't be.

However, what has surprised me over the years is how many foreign "Japan watchers" and "Japan pundits" always seem to miss the crux of what's really going on on the ground in Japan and more importantly what's going on in the mind of the Japanese.

When articles are written or comments made about the supposed dearth of Japanese startups, the author or speaker almost always boils this down to several factors such as Japan's Shima-guni mentality (Island Nation / 島国), the so-called Galapagos Effect (which as I've continually pointed out is really just a misnomer for an industry or marketplace rife with ossified, rent-seeking incumbents and regulatory capture), Japan's supposed lack of talent, Japan's supposed lack of diversity and Japan supposed lack of creativity.

In the past, I've written about and either fully debunked these myths and memes or I've put them into a context in which they are far better understood.

With that said,  there is another popular myth and meme that comes up regarding the lack of Japanese startups and that is the idea that the Japanese have an almost in-born fear of failure.

I'm not here to argue that Japanese don't have a fear of failure because they do. We all do. Just as most other peoples around the world do, including those in the US and even including those working in Silicon Valley.

People fear failure. 

But to hear the pundits tell it, "Japanese need to get over failure and embrace it". These pundits act like the fear of failure in Japan is simple a psychological construct* like it is in parts of the West like in the US.

(*For the record, even in the US failure is more than just a psychological construct, there are still real financial, social and psychological penalties, set backs and damage that can and do come with it. But this is so much less than what is faced in Japan)

Now I am here to tell you, that in Japan this "fear of failure" is not simply psychological but real. Depending on the failure level there are material penalties that can accrue or hit one hard and if you are to strike out on your own or with a small group of friends, launch a company and it fails it is not like Silicon Valley where you can walk down the street and pickup a paycheck at a top firm while your lick your wounds, get on your feet and start again or even just resume your pre-startup career.

In Japan, the damage and risks include and span the following:

• Career risks
  
• Social risks (personal and romantic relationships and prospects; access/membership to business clubs, etc.)
  
• Psychological risks (depression, self-hate, loathing)
  
• Financial risks (immediate and long term)
  

There are huge differences in how societies views failures and how you move on in terms of romantic prospects and relationships, platonic relationships and friendships, how your family views you, the support groups you have and, most importantly, the career risks which translate, in the end,  to money - to financial issues.

Although much has changed in Japan over the last 8 years, especially in the last 4 years or so, it is still no where near the levels of what we see in the West regarding some issues such as Mid-career hires.

Now let's step back in time, to say 1995. In the US, for instance, much of the economy was still coming out a bad recession from a couple years earlier where housing prices were pummeled - in fact, I remember many saying they wouldn't buy a home again.

As one specific example, I'll pick Silicon Valley as just one example, even in that economy, a person could have a massive failure and if they learned something and could present themselves well, they could easily land a similar or even better job by leveraging it. Even if they were fired.

Conversely, even if they didn't learn anything, they still could land a similar job. Even if they were fired.

People hired with a very open mind based on what the candidate could produce.

In Japan, the idea of mid-career hires, although changing now, was really non-existent unless you had super skills, super connections or worked at a foreign firm (gaishikei), like Microsoft, Oracle, etc. who needed talent and hired among themselves.

I can tell you, as just one example, when I met with Fuji-Xerox HR group back in mid-2008 to discuss their domestic hiring needs, although they were very polite and professional, it was made extremely clear they wanted new grads only and that they weren't set up to recruit mid-career hires.

Did that mean that mid-career hires didn't happen at Fuji-Xerox?

Of course not. 

But it did mean and it does mean that mid-career hires (a)  were rare and (b) a special case.

Which again leads to this risk factor of damage to one's career and so on.

Coupled with this was a employee/candidate ethos that often considered working for a direct competitor "dishonorable" while on the company side, such a candidate applying for a position from a direct competitor would be seen as "suspect" or "suspicious". 

Again, I want to emphasize this has been changing for the better over the last 8 years and specifically the last 4 years or so but this hiring mentality exists and so does the economic and career damage fear among workers.

I can also share with you some examples where I took top talent from various gaishikei firms (in this case, in the network & information security industry) and introduced the persons to other top companies, both domestic and gaishikei.

Often what I heard was, "They are a job hopper".

My thought: "Are you insane" or "What an idiot, can you not see how talented this person is to fill the position you've had open for the last 4 months...."

My reply, "Uh, no. They aren't a job hopper. And regarding their changes, the last company they worked for went bankrupt and the other two companies before that, that the candidate worked for got acquired by huge multinationals. They left because they preferred a smaller work environment."

The reply?

"Well, that shows bad choices on their part."

A bad choice? To know the firm would go bankrupt? To work at a startup or a company working in emerging markets or developing nascent technologies?

This actual conversation took place in 2008. And I've had numerous conversations like this, from the mid 1990's, skipping through the dot com boom of 1999 to 2001 (in the US, the dot com bomb died out with the 2000 Nasdaq crash but Japan trailed about a year) to around early 2009. Then it thawed a bit. 

I should note that in the dot com bomb, Japanese firms were so scared by the hype and activity happening online that they did hire mid-hires and they did bring in foreigners, even non-Japanese speaking. Fear of the firm failure, spurned positive changes. In other words, competition is good.

I should also add that this was within the fast moving, dynamic tech industry. I've also done work in very static sectors like industrial chemicals, and as late as 2008, it was not uncommon to have a HR manager or even the hiring authority (even the country manager) characterize a person who had stayed at each job less than 5 to 10 years was seen as a job hopper and also undesirable.

Wrapping this up, it's not so much that Japanese have a greater fear of failure than, say, Americans, it is simply that the economic cost of a failure in Japan is much higher - financially, socially, psychologically.

Once you understand, all the pieces begin to fall into place.

By James Santagata
Managing Director, Career OverDrive! / SiliconEdge

I dug up and finally got around to putting up a presentation I gave on cloud computing entitled, "Cloud Computing": What It Is, What It Isn't, Why It Matters" for Tokyo 2.0 which was held at Super Deluxe in Nishi-Azabu. 

We had a great turnout for the event with over 200 people attending.

It was almost 5 years ago yet a number of the main themes and issues I addressed have come to pass.

You can watch the video,  link to the original or see the full presentation PDF by clicking on the button below.

By James Santagata
Principal Consultant, SiliconEdge

Growth Hacking.

Depending on who you listen to, it's either the fastest growing "new" field of marketing or one of the most over inflated of buzz words.

My take as a "classically-trained marketer" is this:

It ain't nothing new. 

It's just a form or better yet an updated framework for direct response advertising. That being said, I do think that term can be / could be useful as a short hand term for:

"A super-focused, super-aggressive form of Direct Response Advertising where your ass, your paycheck and your company's survival is on the line everyday, and whereby the marketing campaigns that you develop and run must be done so on a compressed time scale with a limited to non-existent budget."  

Other than that, Growth Hacking can be said to be the same "stuff", different pile.

By James Santagata
Principal Consultant, SiliconEdge

Over the last twenty years, and accelerating in the last 7 years, not only Japan but the entire world has begun to question Japan's ability to innovate and create as companies such as Apple and Samsung rule Japan's former stomping grounds and gleefully gorge themselves on Japanese companies' bento boxes on a daily basis.

Meanwhile, once mighty and innovative Japanese firms like Sony and Panasonic bleed red and constantly try to slough off workers while peddling a staid if uninspiring set of "me-too" and "also-ran" product lines.

How far has Sony fallen? Well, it's gotten to be so bad that if Sony founder, Akio Morita, were to magically re-appear today and venture over to the front entrance of Sony Japan, he wouldn't  recognize the place.  Worse, if he then decided to apply for a position, not only wouldn't they hire him, they'd most likely call security and have him escorted off the premises.

But all is not lost. 

In our No Box Thinking™ (Volume 3), entitled "How Struggling Japanese Companies Can Beat Silicon Valley's Fast-moving Startups At Their Own Game" we go through exactly what has happened, what has changed and how, in a short time and by using some talent management adjustments, Japanese firms can again perform at our above that of their competitors.

Fun night at Mitsubishi Estate's EGG/T21C New Year's Kickoff Party (Shin-nen-kai). Had great presentations from the Japan Country managers of Pinterest, Box, Splunk and Millennial Media.