Not long ago, Japan dominated the world with its electronic industry. Today its electronic industry is struggling to survive. Not long ago, names like Sony, Panasonic or Sharp were the most valuable brands. Today they are trying to remain competitive with Apple, Google, or Samsung. What has happened?
As technology changes, market changes, consumers’ needs changes but Japanese companies have not changed much. They continue to build the same televisions, phones, computers when their competitors are capturing the market with new and innovated products. In this fast changing world, Japanese companies are too slow to adapt new technology to develop new products. Both Sony and Panasonic missed the smart-phones and tablets when Apple, Google and Samsung captured the majority of the market. The problem is getting worst when Sony and Panasonic keep losing money and market shares. New managers were brought in but could not do much as their thinking was still remain the same. A business analyst concluded: “Japanese companies were busy focusing on their old electronic business but the market simply bypass them and move on with new devices where software is the main driver.”
Although many people believe that success breeds arrogant, Japanese companies are so successful and they do not pay attention to market trend anymore. However if you analyze the issue, you will see that the main cause is more complex than that. It has to do with their education system that is obsessed with hardware. Japan has one of the best electronic engineering trainings that has produced the best electronic engineers, the best chip design engineers, the best integrated circuit designers but do not have many software engineers. Japan’s managers from bottom to top were all hardware engineers and they have developed the highest quality devices like televisions and computers, but have no software knowledge to make these devices to work together. Without software, their products do not work in the way an iPhone connects with a Mac laptop and an iTunes music store. It is Steve Jobs’ vision of connect the dots that change everything.
Japan’s technology companies know that without change, they may not survive. But how do you change the thinking of a generation that was the product of the best hardware education? The dramatic step is very painful but it must be done. In recent years these electronic giants have taken steps of firing most of their managers from top to bottom. In a culture where lifetime employment is the key principle, this is shocking. For years, Japan’s company principle always has been: “You work hard and give everything to the company and the company will take care of you and your family.” But now it must change to adjust to the fast changing world. Competition from S. Korea who has high quality products and China who has much lower priced products has forced them to change.
Although they have always developed everything from microwaves to cameras, they are now stopping their electronics products that made them famous. Sony and Panasonic have cut most of their electronic production and moving into insurance, medical devices, solar panels etc. At the same time, its education system is undergoes completely overhauled to focus on nanotechnology and biotechnology. A professor admitted: “We missed the information technology boat; we must look for the next boat. That is why biotechnology and nanotechnology are our future and our best hope. We will harness the creativity that flows through these new training programs. We will accelerate the global market launch of our new products but that is depending on our next generation of engineers and scientist. In this fast changing world, if you do not change, you will not survive.”
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Prof. Vu
Carnegie Mellon University
source: http://www.segvn.org/forum/mvnforum/viewthread_thread,1965
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