Foreword
You try hard everyday, but your work doesn’t go well. Your sales
figures are stagnant. Relationships with those around you are
strained. You’re wondering whether you should change jobs. You’d
like to launch collaborations with other companies or other new
projects, but things just don’t go as planned. Perhaps you’re
struggling with anxieties such as these.
After working at The Industrial Bank of Japan (IBJ), the leading
investment bank at that time, for 13 years, these were the sort of
worries that I had to face up to when, 35-years-old and hopelessly
out-of-touch with information technology, I arrived at NTT DoCoMo,
the leading mobile operator in Japan.
But mastering one certain skill enabled me to realize the massive
project of launching the
Osaifu-Keitai
(“mobile wallet”)
credit service, which was hitherto unchartered territory. Moreover,
during the four years of the venture investment over 10 companies
were able to gain a listing on the Tokyo Stock Exchange, and the
company earn profits of over 10 billion yen. Now I’m Professor at
BBT University teaching Corporate Strategy, Platform Strategy and
also most of my six books were ranked in No1 in Amazon Japan
bestselling ranking as bestsellers. The method that enables these
formidable achievements and the subject of this case is what I
call “Platform way of thinking and business alliance skills.”
As I moved from financial institution, the idea hit me. What will
happen if DoCoMo as Carrier entered Credit Card (not card)
business?
When we buy something at a convenience store, we take the money out
of our wallets and pay for it. If our wallets are empty we use our
cash cards to take some out of the ATM. We use a membership card
when we rent a DVD, and various store cards when we shop at a
department store. The same goes for restaurants, fast food joints,
clothes shops, music stores and so on. If you think about it, our
wallets are crammed full with cards of every description.
Now these are all merged into a single mobile phone, enabling easy
payment in every store and on every train. Don’t you think that
sounds rather handy?
It was the
Osaifu-Keitai
service that actually made this possible.
note: Osaifu-Keitai is trade mark by NTTDoCoMo
Osaifu-Keitai service is widely used as e-money, train ticket,
point reward card, credit card, key etc. of many compaies such as
drag stores, convenience stores etc which you can download to your
mobile terminal by air.
I was in charge of promoting Osaifu-Keitai service at NTTDoCoMo as
the head of i-mode Alliance at i-mode Strategy Department
then.
Osaifu-Keitai Credit service is one of applications of
Osaifu-Keitai services and it is Credit card service by NTTDoCoMo
itself which you can use by download to your mobile terminal and
what I made its original idea but many people were involved and
help me to the nowadays success in four years.
I subsequently went teaching at University, and accepted several
positions as an external director or advisor to various companies.
I'm currently Professor at BBT University hosted by Ohmae
Kennichi, worldwide famous ex-consultant and also invited lecture
at Harvard Business School, Okinawa Graduate School, and am
involved in a wide range of activities including giving speeches
and consulting. Also I’m President of strategic consulting firm,
NetStrategy,Inc. and Senior Advisor at Market Platform Dynamics.
The mass media outside of Japan have described me as the mastermind
of credit service by NTTDoCoMo using mobile terminal, and
introduced me as an internationally renowned figure.
But as I’ve just stated, when I started out at DoCoMo I had
virtually no knowledge about information technology, let alone
mobile phones. Needless to say, I brushed up my basic knowledge
upon joining DoCoMo, but I can assure you that when I entered the
company I was a complete and utter novice. Since I managed to
create the credit card services by Telecommunication Carrier using
mobile, that is, Osaifu-Keitai
credit service, perhaps you imagine that I
happened to excel at coming up with ideas.
No, neither was that the case. In fact, imagining how nice it would
be to be able to pay for everything with just one mobile phone is
the sort of idea that anybody could have come up with.
So how come it was me that turned this idea into a reality?
I think that in the final analysis it was because
I involved lots of other people in the idea or
put them on my Platform and got them to help me.
It is the same thoughts that have helped me throughout my entire
career. The core philosophy that flows through the business
alliance skills that I want to explain in this book is:
if you don’t know, become the sort of person who
those that
do
know will help and for that, you be have your own
Platform.
However, I don’t believe that those around you will rally to your
rescue if you just sit there creating a fuss about what you’re
going to do. Becoming the sort of person that others will help
requires a degree of know-how and a shift in your thinking; it’s
not just a simple question of networking or improving your
character. There’s no need to slavishly network, no need to work
flat out on your self-development.
All you
will have to do is change the way that you think, and carry out the
methods I will tell you about in this book.
If you actually listen to the story of those who have achieved
success, you will often find that these people, far from being
fountains of ideas, are in fact quite ordinary. But without
exception, one of the major factors behind their success is always
that they gained the help of others.
Until now, perhaps you have feverishly sought to sharpen skills
that you don’t possess because you want to be a capable worker, to
realize your ambitions, or be successful. But I’d like you to try
to discard all these thoughts while you read this book.
All you have to do is become the
sort of person who others help. If you can do so, somebody who
wants to help you will solve all the problems that you
cannot.
Then you’ll suddenly realize that
all your ambitions have been fulfilled. Wouldn’t that be marvelous?
But that’s exactly what happened to me, so it ought to possible for
anybody. Now read on, and let me tell you about this method in
detail.
Carl Atsushi HIRANO, Professor at Business Breakthrough
University
Chapter 1 Make your own Platform and Alliances will dramatically change your work and your life
What exactly is an alliance?
An alliance can also be
described as a union or a federation; as it suggests the joining of
forces and mutual collaboration of people or groups with differing
positions, it is often used in the business world in the sense of
corporate tie-ups or merger and acquisitions.
Now I’d like you to think about what
forming an alliance between individuals means. Let’s say your
company is disinterested in environmental issues. If you can bring
together, for example, senior colleagues from other departments or
people who have just joined the company and who think that it
should take environmental issues more seriously, then you can
create an “alliance relationship.” Involving large numbers of
people to tell the company’s management that they should take
environmental issues seriously and make a company that is respected
by society rather than just pursuing profit, will have a far
greater effect than just ranting about it on your
own.
Business alliance skills are the art
of cleverly controlling the relationships of people—some who are
business-like, some who are more intimate—while taking into
consideration all their ulterior motives, and using this to get
people to make the most of you for the sake of your own
self-realization and growth. The alliance
relationship will fluctuate and change according to the degree of
success you achieve in this.
For example, perhaps your success in
making your company more environmentally aware will earn some words
of praise from your boss, and your subordinates set you up as a
leadership figure. The size of the alliance may grow as a result,
and it is quite possible that it will go on to attach itself to
another alliance.
Let’s say that the online shopping
alliance proved to be a huge hit as a business, and you end up
launching a company. Naturally the alliance relationship evolves
into something else at this point.
Business alliance skills cultivate the success of all those
involved while developing an inherent win-win relationship.
This is why it is possible for somebody with just
a modicum of talent to become a huge success.
An alliance triggered the birth of the Osaifu-Keitai credit service
I was able to achieve
success with the
Osaifu-Keitai
credit service because I used the power of the
alliance to its optimum.
The
Osaifu-Keitai
credit service was
something that I wanted to do for four years, right since I joined
NTT DoCoMo. Our wallets are overflowing with point cards, and the
stamp cards they hand out at restaurants et cetera, I thought.
Digging them out everyday is a pain, and eventually you lose track
of them….
This was the basis for my thoughts,
but it would be rather dubious of me to claim that I was the very
first person to make such a suggestion. Right from the start of the
popularization of the Internet and mobile phone contents, there was
talk of the “IT revolution” and the idea of this sort of mobile
credit was being mentioned in every quarter. Even that Bill Gates
apparently said that he wanted to make computers smaller and turn
them into wallets. But I was working at DoCoMo—the very best place
to actually make this happen.
I therefore made some suggestions
within the company, but unfortunately, since it is a very large
organization, I made little progress. Everyone dismissed the idea
as being unfeasible, or said that credit wasn’t really the business
of a telecoms company. I think the reason for these negative
attitudes is that, since nearly all the company’s staff were from
NTT, they weren’t really interested in things like credit services
and finance. Perhaps another reason was the fact that the
competitive environment was not as fierce then as it is now. And
the i-mode, launched in 1999, was gaining a degree of success that
drew attention from around the world.
What I used at this point was the
alliance method. Of course I wasn’t thinking in terms of alliances
at the time; the idea was “if this can’t be done within the
company, I’ll try to discuss it with people outside.” Ever since
i-mode was launched, we always talked over the formulation of
strategies with The Boston Consulting Group, so I took my idea to
some skillful consultants.
I was also invited to a great many
study groups at the time, and sometimes spoke myself, so I decided
to consult a certain analyst too. “It’s just my idea, but what do
you think about a telecoms company offering a credit service?” I
asked. “That sounds interesting! Let me think about it,” came the
reply—the alliance was formed.
Amazingly, he immediately compiled a
report on the theme of what would happen if a telecoms company
entered the credit sector. I must say that this completely took me
aback. However, what surprised me even more, was the result that
this had. Once I had the advice of The Boston Consulting Group and
the report of the external analyst, the mobile phone credit service
concept suddenly started to move with a sense of realism. Of
course, the process leading up to realization was long and
demanding.
Surmounting such difficulties
required more than just bringing together a handful of people—I
needed to involve more people, and build a large
alliance.
DoCoMo, Sony and Mitsui Sumitomo—how the power of an individual moved mammoth companies
Before I joined NTT DoCoMo,
I used to work for the Industrial Bank of Japan (IBJ), which is now
part of the Mizuho Financial Group.
Though IBJ is now defunct, it was
once known as a “King among banks,” an elite company that promised
an assured future. I’ll explain later the details of why it was
that I came to leave such a company and join NTT DoCoMo. Anyway, I
heard about the job from an acquaintance, went for an interview in
response to the advertisement, and then joined DoCoMo. I was first
assigned to the new investment project team that they were setting
up. The team was later to merge with the i-mode
project.
I suppose that when the start-up of
i-mode is mentioned most people would imagine technicians,
creators. But I didn’t really fit into any of those categories. I
think that the reason why a humdrum individual such as myself was
asked to take part was because I was one of the few people at
DoCoMo who had experience of finance. The area where that
experience is useful is business tie-ups—in other words, alliances.
DoCoMo first assigned me to the team which had just been separated
from the Business Planing Division, and dealt with managing
investee companies and making investments.
The then general manager, told
me, “There’s nothing fixed about the job, think for yourself and do
whatever you want.” I started work with the feeling that changing
jobs might have been a disastrous mistake, and that while my annual
pay had dropped by three million yen, I couldn’t very well go back
to IBJ now. I was stuck.
I was just a manager with one
subordinate, but luckily my boss was a very kind person, and
introduced me to i-mode team persons.
At the time, i-mode had only been
available for about three months. It was way off the target
subscriber number of one million, and to be perfectly honest it was
not considered to have been much of a success. But we were already
mulling over next move. As the media continued to develop, what
became necessary was know-how that DoCoMo didn’t possess. This
meant the need for alliances tying in other businesses with
DoCoMo.
This is how, after joining DoCoMo in
May 1999, I became a member of the i-mode growth strategy project
that sought to examine how to nurture the brand in the future.
Every evening, over a round of hamburgers from McDonalds, a team
composed of five or so of us held meetings late into the
night.
For example, we decided to run an
advertizing campaign once the number of subscribers reached one
million, something which would necessitate a fully-fledged
collaboration with a company that understood advertisements.
Examining the issue with person of Dentsu (a leading advertizing
agency), led to the establishment of D2 Communications, a combined
company owned by Dentsu and DoCoMo.
I subsequently had the chance to
spearhead an array of alliances. These included projects with
DoCoMo.Com, who specialize in contents advice and venture
investments; a combined company established in conjunction with
Lawson, a convenience store chain; with Coca-Cola Japan and Itochu
Corporation, a trading house, in the C-mode project that enabled
people to buy Coke with their mobile phones; a collaboration
between the Fuji Television and NTV television networks;
collaborations between all the domestic convenience store chains; a
collaboration involving Sony, Rakuten and JR East; the buyout of
Tower Records, and the huge investment in Mitsui SumitomoCredit
Card.
Through the work of negotiating with
other businesses,
I came to the conclusion
that alliances between companies are nothing more than alliances
between people.
Which company should you build an
alliance with? I realized that in actual fact, it’s rather
a question of which people at that company should
you work with
that is the most vital
factor in a successful project.
“I’m really glad we trusted you, Mr.
Hirano.” I still clearly remember the words of then general
manager at Mitsui Sumitomo Bank, the partner bank when we made the
huge investment of around 100 billion yen in Mitsui Sumitomo Card,
and launched the new iD credit brand.
There were frequent stormy scenes
during the seven-month negotiations. Being told several times by
the despondent leader of negotiations at Mitsui Sumitomo Card that
the collaboration would probably collapse, suddenly swept away all
the exhaustion that had been building up inside
me.
Now let’s return to the dawn of the
mobile phone credit service. As I have mentioned, we had advice
from outside, and forward-looking considerations were beginning to
be held within DoCoMo. At the time, my title was Head of i-mode
business alliance, and I had 10 or so people working under
me.
Osaifu-Keitai
(without Credit
service by DoCoMo at that time) sales were increasing nicely, but
the number of places where they could be used was extremely
limited. Our team was given the task of developing places where
they could be used. We eagerly entered into alliances with
companies running convenience stores—places where most people go at
least once a week and payment amount is around 3~5
US$.
I also gave over 50 talks a year in
Japan and overseas in an effort to raise awareness of the
Osaifu-Keitai. Since Edy
was the only form of e-money that could be used with the
Osaifu-Keitai
at the
time, we cooperated with Bit Wallet (the company that
operates Edy) in steadily developing new partners, company by
company. However, most retailers were extremely reluctant to invest
in reader and writer devices that would enable use of the
Osaifu-Keitai, or set
aside space in their stores for its
installation.
This is where I started to look at
the credit card terminals located in most stores. “That’s it!” I
thought—if we can configure the credit card terminals so they
accept the
Osaifu-Keitai, the phone will take
off immediately. Full of high spirits, our team embarked on a
campaign to create an alliance with a credit card
company.
The totally new and promising
business of mobile credit. I thought that if we went round all the
credit card companies telling them about the plans of DoCoMo, whose
share of the mobile phone market is over 50%, we would be sure to
attract many sponsors.
But what actually happened was
completely the opposite. I had totally miscalculated. What I had
thought would be a mouth-watering idea for the credit card
companies was met with point-blank refusals. Most of the companies
responded along the lines of, “Well, that’s certainly an
interesting idea, Mr. Hirano. Perhaps that day will come some time.
But it’s still a little early…What do the other companies
say?”
It was at this point that I turned
to an alliance from my days at IBJ. Probably the most famous former
employee of IBJ is Hiroshi Mikitani, the CEO and chairman of
Rakuten Inc. By a stroke of luck, he also happened to be a former
junior colleague of mine at IBJ, and we are a still close enough to
occasionally have a chat on the phone. Mikitani did the accounts
for the gymnastics club at his university, and always responded
graciously to any request that I, his senior, made to him. He
kindly participated twice as a panelist at a couple of large
symposiums on mobile phone-related themes. Though he is often
presented in certain quarters as being a charismatic type, having
known him for many years since we worked at IBJ, I see him as a
serious business leader who is always thinking of the growth of his
company and his employees.
Following on from this, the next person to
whom I gained an introduction was Yoshifumi Nishikawa, then head of
Mitsui Sumitomo Bank. The then Mitsui Sumitomo Bank had been
somewhat late in formulating a card strategy, and the Mitsui
Sumitomo Card had been left playing catch-up with JCB, the sector
leader.
With the bank having finally
finished disposing of the bad debts incurred during the bubble
years, it was moving towards a more aggressive set-up. This timing
paid off with the result of direct negotiations between DoCoMo’s
executive and Mitsui Sumitomo’s being the green light for the
project.
As a former banker myself, I know
that the lock-step mentality of financial institutions is
extraordinarily strong; once a highly profitable top-ranking
company like Mitsui Sumitomo makes a move it has an immediate
snowballing effect.
The end result was that the
collaborative tie-ups expanded, as one alliance led to another, and
the
Osaifu-Keitai
credit service developed with a burst of
acceleration.
Business alliance skills turn the “impossible” into the possible
“The power to imagine and to do”—this is what I call the
capacity for imagination plus the ability to get things
done. As a matter of fact, I don’t really
think that capacity for imagination, with the exception of a few
special people, varies greatly from person to person. As I explain
in the next chapter, most people have thought about more or less
the same thing at least once, and the vast majority of the ideas in
the world are rehashed or modified versions of concepts already in
existence. I think the reason that hardly anyone makes a reality of
the things that they think or hope about is due, rather, to an
insufficient ability to get things done. But there’s not really
such a difference in people’s ability to get things done either,
and there are limits to the size of the achievements that a person
can make on their own—however hard they may try.
So what constitutes this difference
in people’s ability to get things done? I think that it lies
in
the difference between those who try to
go it alone and eventually giving up because something proves to be
impossible, and those who realize that while they may not have the
individual strength to obtain their goal, they can borrow the
strength of many other people to reach their
goal.
However, don’t start of by imagining
the dream team of reliable, cooperative and talented supporters you
hope for, because you can’t create a network like that
overnight.
That’s why you have to show
your goal, and get other people with a common direction involved in
one capacity or another. Bringing together, as a matter of course,
people who will help to make something a reality is the idea of the
alliance.
It would in fact have been utterly
impossible to achieve the
Osaifu-Keitai
without involving
other people. This is not merely a question of routine business
matters such as DoCoMo’s lack of know-how or an inability to do
business without corporate tie-ups. In the first place, our idea
was no more than a vague notion that we wanted to popularize
the
Osaifu-Keitai, and that it would be handy if you could pay for things with
your mobile phone.
But the more I got people involved
the more the originally opaque idea turned into a feasible
shape.
One example of this is the FeliCa
noncontact technology developed by Sony. The origins of FeliCa lie
in a conversation about mobile phone collaborations between DoCoMo
and JR East. The fact is, services using 2D barcodes and
infrared ray technologies aimed at enabling tie-ups between mobile
phones and stores had been underway for several years, long before
the
Osaifu-Keitai
using FeliCa.
Experiments for the service were
carried out at Lawson stores,the second largest convenience store.
The C-mode project conducted in conjunction with Coca-Cola was
finally realized as a result of their vice-president’s persistent
persuasion of the US head office.
But things didn’t always go
according to plan, with the technology’s operability sometimes
being poor, and awareness of it low. I didn’t have any formula to
solve these issues, but with the help of this record of failures,
the fact is that people became accustomed to doing things with
their mobile phones and the transfer to the current FeliCa system
was carried out smoothly.
People’s behavior and lifestyles do
not change easily.
But the larger an
alliance becomes, with the participation of people with a thorough
knowledge of each sector all sorts of problems are solved thanks to
the knowledge of those involved.
People often say that “this won’t
get through the company,” or “it may have got this far, but the
boss of such-and-such department will never approve.” This is
precisely what happened with the
Osaifu-Keitai
credit service
project.
There is, without fail, somebody in
the world who can enable the things that you can’t do on your own.
Conversely, there are also people who are yearning for your skills.
If people like these link up with each other, in a quite miraculous
manner things that have previously been impossible become feasible.
As these people have a mutual need, surely it’s easy for them to
enter into an alliance providing that they find out about each
other.
What you have to do at this point
is, first of all, to
take the initiative
and eagerly make people aware of what you want to do and what you
can do.
Why are there so many people around who say they created i-mode?
I have described the
realization of things through alliances as a “miracle.” In fact, by
gaining the involvement of a large number of people you can achieve
results beyond your imagination.
It’s possible that what began as a
little idea can turn into a massive project with a turnover of
billions of yen.
The greatest example of this is
DoCoMo’s innovative i-mode project, which laid the groundwork for
the
Osaifu-Keitai.
Even more than the current diffusion
level, what is really astonishing about i-mode is the fact that
there is a large number of people around who say “Actually it was
me that created it.” I think that this is because there are so many
people who became involved with the plan, regarding the original
suggestion as their own.
It is probable that i-mode too,
started as a little idea. The origins were a simple instruction to
my boss and the leader of the i-mode team, by the then president of
DoCoMo, to look at ways of making money other than telephone
charges.
The leader then consulted the
director of a friend’s company. He was introduced to lady of the
editor of the magazine, who in turn suggested the participation of
DoCoMo, who was still a student and working for the magazine as a
part-timer.
With experts in each field
offering to “do something” about the new idea, the idea grew larger
and larger, and this sense of wanting to help became more
pronounced.
The end result was a smash hit
product that virtually anybody now enjoys the benefits
of.
The person that makes the platform benefits the most eventually
There has been a dramatic
increase in recent years of companies and individuals who have
achieved great success through alliances.
Toyota Motors, one of Japan’s
leading companies, is a good example. They are the company at the
forefront of the motor business, and the impetus with which they
have outstripped their rivals is famous. But along with Aishin, an
affiliate, they are in fact involved in tie-ups with many of their
competitors in the sector—companies including BMW, Volkswagen and
Peugeot. Rather than resulting in eating into each other, these
alliances are in fact helping to provide their fans with high
quality products.
Another factor that has captured my
attention in
making the most of alliances
is the platform-style business model. I think that the winners in
the 21st century will probably be the businesses that are able to
achieve this model.
What the
Osaifu-Keitai
is aiming at too, is
indeed such a platform-style business. A brief look at the market
suggests companies that have proved to be winners in the Internet
sector, like Google and Microsoft, or Facebook. Elsewhere,
companies outside of the virtual world, such as Roppongi-hills, and
Aeon and Seven and I can be said to have grown after adopting this
platform philosophy.
The platform philosophy is really
the provision of a place where alliances can be
formed.
In the case of Rakuten, for example,
the company made a large online shop framework in which other
smaller shops are free to conduct business. Aeon, on the other
hand, provides large shopping centers in the suburbs, and then
invites tenant companies to locate their shops in them. Lawson, a
convenience store, has become as convenient as the name suggests by
locating post boxes within its stores.
If the rest is left to the companies
that participate in the platform provided, their ideas may change
the platform into something that the providing party never dreamed
of. Google, for example, was provided originally by companies—but
it was surely the public users who made the site evolve into what
it is now.
It’s fine just to provide a “place”
and basically leave ideas for the users and clients to develop
themselves. Even then, the person that is
going to benefit most at the end of the day is the original creator
of the platform. And these people will, quite naturally, be the big
winners of the 21st century.
How much of a “place” can you offer to people?
Now it’s not just the
corporate business model—we have already
entered a day and age in which even individuals and single projects
have created a platform and reaped success. And in actual fact, a great many of these people who have
achieved success have done so on an individual
basis.
a successful author and friend of
mine runs a website supporting women and has become a charismatic
figure among many working women.
The company that is making the most
of this format of success through alliances in terms of the way
that each of its employees works is probably Google. The company
has a rule that is known as the “20% to 80% rule,” which allows its
staff to spend 20% of their time at work on themes that they find
personally interesting. All the staff think about new projects, and
when an idea that looks interesting appears, they are free to ask
all their colleagues what they think about it. If their colleagues
also think that the idea looks interesting, or offer to do what
they can to help with it, it leads to the establishment of a
project. If the company itself thinks it’s a good idea too, then
it’s formally adopted as a part of Google’s worldwide
business.
As the example of Google shows
too,
a simple idea turns into something
that can be achieved by getting other people
involved. This is exactly why the people
who achieve success at Google are not just those who come up with
ideas, but those who have “the power to
imagine and to do.” I think it’s this
result that underpins the huge progress made by the
company.
Trust your feelings as you go forward
When you’re working within
one organization or company, your set of values becomes stiff and
fixed, and the chances you have for making new discoveries dwindle
rapidly. But
if people with various
different ways of thinking join your alliance, your own fixed
opinions will crumble and fall, and you will quickly start to have
all sorts of new ideas.
Recently, there are a great many
people who say things like “What I do is
this,” or “This
is my specialty,” people who
seek to map out their futures armed just with some plan they have
dreamed up in their head. But those who enter into alliances will
surely soon realize just how petty and restricted such thoughts
are.
Therefore levels of individual
success expand to heights previously undreamed of through the use
of business alliance skills. I hope that you, the reader, have this
unknown potential.
My current work was created by and
is still supported by alliances. I became an advisor to a company
through the introduction of a former junior colleague. My
career progressed haphazardly, but when I thought about it I
realized that my income had increased by more than ten times the
salary I earned when I first joined the company—profit was part of
the package too.
Of course, I hadn’t envisaged such a
future when I joined DoCoMo. One of the reasons I left IBJ and
joined DoCoMo in the first place was a growing feeling that you
only live once and that I wanted to keep on testing myself. IBJ’s
ranking at the time was plummeting, and I was acutely aware that
the number of projects brought to me in the office were
declining.
Even then, nobody actually
entertained the thought that this bank might actually disappear
(although I take pride in the fact that my intuitions often hit the
target). Above all, I began to want to try a job outside finance, a
job where you can actually see what you’re
doing.
It was at that moment that I
encountered the tool of the mobile phone. The catalyst for that
encounter was the death of my mother.
My mother died of cancer in 1994,
and a tense period of three months had preceded her passing away.
Despite this I was working hard at IBJ each day, my father was
lecturing at medical college and had little time, and my sister was
occupied with her small children. We were all working and had no
way to get in touch with each other in an emergency. I, my father
and my sister were all beside ourselves with worry when we thought
about my mother.
It was mobile phones that helped to
solve this anxiety. Of course, DoCoMo didn’t exist in those days,
and we had to go to NTT and hire a bulky phone at a cost of 70,000
yen. Even so, having the phone in my hand gave me a sense of
security, a feeling that the family was linked together. I thought
to myself that though the mobile phone had yet to be popularized,
it was certain to change the world.
So when I heard that NTT DoCoMo was
recruiting staff, I had an exciting feeling that maybe I would get
the chance to become involved with mobile phones. However, those
around me were dead against the idea. And naturally so, because
while the company may now be one of the companies that people most
want to work for, at the time it was regarded as no more than a
somewhat nebulous venture spinoff of NTT.
Nonetheless, I was definitely suited
to that direction. It wasn’t a case of the future potential, or
planning for the years ahead. When I look back on those days now I
think it was vital that I believed my instinct and listened to my
feelings. You shouldn’t have to entice others with overblown
phrases such as “follow me and you’ll get lucky” or “I’m going to
be big one day.”
What you have to show is
a clear vision: this is what I want to do.
What you first need to do when you make your move is to change your own perceptions
I subsequently left DoCoMo,
and after working as executive at a venture business I launched my
own company in October 2007. The reason was, again, because a
strong feeling of “I want to do this!” pulled me in that
direction.
When I left DoCoMo, i-mode had
become popularized as a perfectly everyday platform, and the
Osaifu-Keitai
credit
service had already been launched. So I didn’t really think that
there was anything left for me to do at DoCoMo even if I stayed.
But I love DoCoMo and still working for them
now.
I believe that the first step in business alliance skills is to establish
your own thoughts, a single business unit that transcends the
company. You take something that you want
to do and launch it as a business project. In response to that
project, and alliance will be formed that consists of both your
bosses and your colleagues.
As the
alliance progresses, you always play the leading
role. So if something else that you want
to do turns up, the alliance will also shift in that
direction.
Over the course of your life there
will naturally be times when a whole new alliance relationship
suddenly takes off—but this doesn’t mean that your “old” alliance
relationships are something that you can afford to cast off. Even
if its role changes, all you have to do is skillfully use the
relationships in the alliance according to your own wishes. It
doesn’t even really matter whether the alliance proves to be useful
or not.
All you should do is pursue your
alliance with a bubbling sense of anticipation that something may
be just around the corner.
Putting into practice business
alliance skills is a question of trying to portray you yourself as
a “company,” and perhaps the people who join the alliance will be
your “staff” and your “clients.” Now the important question is how
to nurture “you, the company.”
I see this
as an exciting game, not a daunting task based on competition
principles.
During my IBJ days, my boss
and a director of the bank at the time, was always saying to me: “I
think that work is a sort of game—don’t lose the forest for the
trees.”
Think about it. The personal growth
that you can obtain through alliances is unlimited. But you will be
stimulated with every alliance, and become able to create ever more
interesting ideas. The results will be the sort of progress that
you never expected, a progress that will lead to your future
success story.
You will find the sort of success
that you cannot imagine now. What do you
reckon? Sounds exciting, doesn’t it. In the following chapters I
will explain the five points about business alliance skills that
will enable you to make your own Platform and this shift:
alliance thinking; information collection and sorting; networking;
learning methods; and career enhancement.
Information collection using
alliances will bring you huge volumes of precious information that
you could never have gained access to before. The networking skills
covered in this book concentrate on how you should go about
creating alliance relationships; through alliances you will become
able to exchange opinions with experts in all sorts of
fields—people who you’ve never had the chance to speak
to.
With my learning methods, the
alliance will expand vastly what you are able to find out and what
you can learn. This will enable you to make your own platform and
enhance your career and reach a position that is unimaginable to
you now.
But the starting point for this
future has to be “what should I do now?” What you have to do is
change the way you think. And this means, first of all,
acting with courage.
Chapter 2 Platform Way of Thinking
Don’t become “prominent”—become somebody who others help
Turn your thoughts into everybody’s thoughts
Usually, when there is
something that you want to do you decide upon a rough outline, draw
up a plan or proposal, and submit it to your superior. But when we
were trying to launch the
Osaifu-Keitai
credit service
,
I tried to get other people involved from the concept
stage, before there were any concrete
ideas.
In
the first place, the idea of the
Osaifu-Keitai
credit service is the
simple concept of using a mobile phone instead of a credit card.
However, when it comes to the concrete plan there are technical
questions, systematic problems of the finance sector and so on—in
other words, a stream of negative factors. The idea of a telecoms
company entering the credit sector was unheard of, and was in a way
a world-first.
In general, the larger that a company becomes, the more
reluctant it is to get involved in matters that it doesn’t
understand. I thought that
my idea would
stand a better chance of being realized if I spread awareness about
it to such an extent that everybody would understand and want to do
it.
In concrete terms, what I did
was to exhaustively seek the opinions of Managing Director of
Morgan Stanley, who I had known since my IBJ days, external
consultants and other acquaintances, all of whom I asked: “I’ve got
an idea that nobody in the company take seriously, something that
I’m wondering could be done—what do you think of this? Is it really
out of the question?” Of course, I didn’t take any written plans or
proposals.
These inquiries earned me all sorts of information about
overseas strategies and case studies concerning card companies and
telecoms companies. In those days I had acquaintances at Mitsui
Sumitomo Card, so I tried bouncing my idea off to one of their
directors. A professional among professionals, he courteously
explained all the mechanisms and actual methods used in the credit
card sector. I never imagined at the time that this conversation
would prove to be the prototype of DoCoMo’s iD credit
brand.
In
the office, I thought that it would be rather difficult for our
little i-mode team to move the vast organization that DoCoMo is.
It’s the same at any company, but naturally enough, responses from
other departments bubble to the surface—people pointed out the
risks and listed reasons why such-and-such couldn’t be done, or
just said they hadn’t heard anything about it. At this point, one
of the directors of DoCoMo suggested that we wiped the slate clean
and convene a study group on the
Osaifu-Keitai
credit service
composed of the representatives of each department. I must confess
that when I heard the phrase “wipe the slate clean” I thought that
that was the end of the project, that it would never become a
reality. The shock made me quite ill.
However, after examining the
issue for seven months the conclusions of the study group were that
the
Osaifu-Keitai
credit service should be supported. This meant that, with an
ongoing exchange of opinions between all the departments, the
project would go ahead as a cross-company project upon which the
fate of DoCoMo was riding. Once the impetus for promoting the
project was in place, we quickly gained the know-how of talented
people from every part of DoCoMo, and the problems that our team
had struggled with were solved in rapid
succession.
If the project had been conducted by the i-mode team alone I
don’t think it would have been possible for us to pull off such a
massive task. The launch of the study group led in the end to the
greatest effect.
As you can see,
the methodology of
the “Platform and alliance thinking” idea is to turn your own ideas
into something that belongs to everybody.
The chain reaction of ideas is the fine line between success and failure
If it’s your idea, why on earth do you have to change it into
something that belongs to everybody? Perhaps some readers will
think that this could do nothing but harm. You often hear things
like “This is patented,” or “I can’t tell you because we don’t want
any know-how leaks,” particularly in sectors such as venture
businesses.
But if you stick to this “my idea” attitude, will your
proposal actually lead to significant results? If you keep all the profits of a project that will yield one
million yen to yourself, all you will get is one million yen. But
what if that project can be turned into one that creates 10 billion
yen in profits? Even if you gained just 1% of that sum, it would
represent 100 million yen—100 times your one million yen
profit.
I think that this way of thinking
is the difference between the success or the failure of a large
enterprise.
Whether it’s a new product, a sales plan, or a proposal for
improving business, in the final analysis no progress will be made
unless the participation of a large number of people is obtained.
Moreover, the participants are not working for the sake of the
person who has made the proposal—they are working for the good of
the company, and above all,
for their own
sakes.
Which is why it is clearly
more of a motivation for people to work towards something they feel
they have played a part in thinking up, rather than something that
is somebody else’s idea.
Still more in my
case, this was true at the stage before the idea was realized. If I
had kept it as “my idea” then very few people would have helped me
try to turn it into a reality. But when an idea becomes
“everybody’s idea” then
all those involved
become linked together by a fervor to make a reality of this common
idea, which in turn creates a huge power.
This fervor is an utterly essential part of successful business
alliance skills.
What’s mine is yours, what’s yours is mine
If the wonderful idea that
you thought up all by yourself becomes “everybody’s idea,” perhaps
you won’t gain the recognition you deserve within the company; or
perhaps your achievements will be usurped by somebody else—I
suppose some people may harbor such thoughts. In the previous
chapter I mentioned the large number of people around who claim to
have “created” i-mode. Apparently there is a similar situation
surrounding Nintendo’s
Pokemon
(Pocket Monsters) characters, and I believe that
such problems are now called the “Pokemon
Phenomenon.” In the case of
the
Osaifu-Keitai
too, there are indeed a great many people who claim to have
created it. But surely
this just proves
how successful the product was.
Apparently at some companies
the success of the
Osaifu-Keitai
led to some people receiving special two-stage
promotion or bonuses, but nothing of the sort happened at DoCoMo.
Of course, we didn’t even expect such treatment. What really
pleased me were the words of DoCoMo’s president then: “I’m very
grateful,” and : “Your name will go down in history, Mr.
Hirano.”
Somebody is always watching properly.
Some readers are perhaps
worried that discussing things with their colleagues may lead to
their ideas being stolen. However, regardless of how good an idea
is, 99% of people are unable to put it into practice. An idea that
can be stolen so easily is not much of an idea.
Aside from the question of
praise, the fact that I was able to realize such a large project
was, in the first place, because I was working for the huge
“platform” of DoCoMo. And what was much more important to me than
praise, was that I learnt through the project how to move an
organization and acquired business alliance skills to move other
people—an invaluable experience that I
would not exchange for anything else.
Manipulating people from both inside and outside the organization
enabled me to realize a project that it would have been quite
impossible complete on my own.
The project was realized by
forcing a chemical reaction between the ideas of various
individuals, and
achieving a shift in
perspectives—from the perspective of my own job to the perspective
of soliciting like-minded people, and finally to the perspective of
the “organization,” in other words, the company. This sort of “managerial aesthetic” of looking at things
from the company’s perspective is a vital part of “Platform and
alliance thinking.”
Your real job is to turn the impossible into the possible
Now let’s turn our thoughts
towards the significance of making an alliance for making your
platform. The reason that ideas, proposals, wishes and dreams go
unfulfilled is
the existence of certain
obstacles. There is always a bottleneck
somewhere.
The factors behind such bottlenecks are varied—they may
include questions of ability or time, personal relationships or
money. Since all of these are beyond your control, ideas and wishes
end up as “impossibilities.” But how about making a prerequisite of
getting other people involved from the outset?
Taking an extreme example,
even somebody who wanted to move to Mars would have a better than
zero chance if they could get NASA or other space development
agencies involved. My point is that a “bottleneck” is little more
than a case of “I can’t do it,” and
if you
can just move the “I” from the equation then almost anything will
change from impossible to possible.
The
i-mode service was made a reality by successively turning the
“impossible” parts into the “possible” through the use of
alliances. For example, the ringtone service was a massive hit. It
arose from conversations between DoCoMo and persons of
Fuetrek and Faith. DoCoMo, however, lacked the technology to
realize the idea, and since they didn’t have the musical software
in the first place, the absence of the technology meant of course
that the ringtone idea was “impossible.”
But if we got a company that had the technology and a company
that had the sound source to join the alliance, the impossible
would become the possible. What actually
happened was that we solved the technical issue by getting the
phone makers to fit a sound source chip called “MIDI” on the
mobiles, while a karaoke company provided the music for the
ringtones.
The idea was the same with the
Osaifu-Keitai. If, for example, you
want people to be able to buy things from a vending machine using
their mobile phones,
rather than racking
your brains with for possible solutions the quickest route would be
to talk to somebody who could make this happen.
The
reason that we actually managed to make this idea a reality arose
from a query about the possibility of tying up mobiles and vending
machines, made by Coca-Cola and Itochu Corporation. This eventually
turned into the C-mode service, a one million-member service that
was the first in the world to connect mobile phones with vending
machines; its roots were no more than a series of muddled trial and
error experiments conducted by junior staff at the three companies.
They started from scratch, and progressed after gradual
experimentation and repeated success and failure. And over this
process, the originally diverse ideas of what DoCoMo wanted to do
and what Coca-Cola wanted to do somehow expanded into one big idea
that both parties wanted to do.
This circle of people rapidly
grew into a fearsome entity, but what always lay at the heart of it
was Coca-Cola’s and my teams’ strong sense of wanting to do
something, and to mutually move each other’s company. This sense
gradually turned into a deep relationship of trust, which permeated
through to every member of the teams.
A
burning wish to break the mold of the company and make a certain
project succeed led, one by one, to the solving of all the
bottlenecks caused by technical obstacles.
How to involve in the alliance the people you don’t get on with
I have covered how to
overcome the technical obstructions, but possibly the biggest
bottleneck when you try to do something at a company is not the
physical question of technology but the obstacle of human
relationships. But all you have to do is use “Platform and alliance
thinking” to reverse your thoughts on this
matter.
This
is not a matter of “persuading” those who are against you, more a
case of getting them into your platform by alliance, in other
words, of making them your partners. And
how do you that? Instead of telling your clients or subordinates
that “This is the situation, so just get on with it!” and merely
seeking to force through your own opinions, you have to appeal to
them—”Do you think I could possibly ask you to think with me about
such-and-such,” or “I’d really like to have your input, and want to
think about this with you.” It is important that this should not be
done in a way that suggests you are negotiating;
these people should be made to feel that they
are, in a small way, participating: “I’d be most grateful to
discuss this with you,” “I’d like you to come and join us,” et
cetera.
This may well be the same
principle as the concept that negotiations go better when the two
parties are sitting next to or diagonally opposite each other
rather than head-on.
Instead of saying something
like: “I’m thinking of doing things this way from now on, I’m sure
it will lead to better sales so please let me have a go,” an
exchange with your manager such as this would be preferable: “I’m
thinking of trying this way of doing things next time. I’m sure it
will lead to better sales, but I was wondering what you
thought…”
“Yes, I suppose that would be alright. But why don’t you just
change this part?”
“Thank you very much. I’ll be
sure to keep you posted about how things
progress.”
“OK!”
Strange as it might seem, just this little effort makes the
other person feel as though he or she is participating, and pulls
them round to your side. I myself gained a great many precious
opinions by building up alliances in exactly this
way.
Winning over those you want to persuade through consultative alliances
I think that people want to
help if they are consulted. Perhaps you have found that people can
oppose you merely on the grounds that they were not consulted about
something. When you keep hearing this excuse despite repeatedly
trying to explain yourself, there is a temptation to say something
like: “But I’m telling you about it now!”—but let’s not lose our
heads. A reply like that will lead to the very worst outcome.
Regardless of specious logic, any sort of opinion is likely
encounter opposition somewhere.
But if you can bring such
people into your alliance from the outset, then they will end up
eagerly supporting you, and if all goes well they will doubtless
provide your project with plenty of publicity by boasting about
their input. And when a senior staff member involves his juniors in
an alliance, you can be sure that the juniors will look as if they
have been given a whole new lease of life.
This is not “wheel-greasing,”
which in Japan consists of preparing for meetings by going round
all the participants and asking them not to oppose this or that;
it’s a question of
getting people involved
right from the stage of creating the framework.
What you must take care to do
here is
to set up a clear basic policy and
way of thinking for yourself.
You must
make sure that the axle of the wheel is firmly in place. Otherwise
all you will end up with is a copious stream of opinions that
descend into chaos.
The big strategy—Devote yourself first and never give up
You may sometimes find that
the other people in the alliance are not on the same wavelength as
you, or that you don’t get on with them. You might also find that
your boss is irritated at first, and expects you to get on with the
thinking.
However hard you try to involve other people in the alliance,
they all have their own considerations and are not usually going to
devote a huge amount of thought to the project.
In order to get these people into the alliance it is vital
that you yourself first of all study and store the information,
knowledge and know-how that they are likely to
require. In my case, this was knowledge
and know-who about finance. Above all, you need an enthusiasm to
stay the course and turn the project into a reality at all
costs.
There
is a tendency to give up if things don’t go well the first or even
the second time. I never once gave up over the four years of
the
Osaifu-Keitai
credit service project, despite the fact that on several
occasions it looked as if it may go off the
rails.
On
the subject of enthusiasm, now I am in a senior position, when a
junior colleague wants to talk to me about something I always ask
myself: “How seriously is this person
thinking about doing this?” To phrase it
rather extremely, what the boss takes most seriously is whether or
not a person is so enthusiastic that they are willing to do pursue
a project even if it means forgetting to eat and
sleep.
Although business models are an important part of success,
particularly in venture business investments, it is generally
thought that everything hinges on the enthusiasm of the
management.
If you pursue your goals with
determination and enthusiasm, your are likely to achieve
them.
Even in situations in which
you expect to encounter the utmost difficulties, you can be certain
of winning people over to your side if you are enthusiastic and pay
them gratitude and respect for the time that they give
you.
Alliances with other companies stand or fall in the first three months
What I have covered so far
in this chapter concerns alliances within the company; the story is
a little different when you are dealing with another company. There
is a tendency for things to go badly when you are on a different
wavelength or feel uncomfortable with the person in charge at the
other company.
My intuitive feeling is that if a project doesn’t proceed
after
three months
of exploratory work on it, it is likely to run aground even
if it is eventually launched. An alliance means going forward with
a win-win attitude.
You must proceed after
having considered the merits to the other party. The alliance will not hold water if all you do is expound
your own benefits. Moreover, as any project proceeds it is bound to
come up against problems at some stage—leading to the further
problem of what should be done about the situation in each company.
You will need to go beyond the framework of the company and, for
the sake of the project’s success, work on solutions with the
person in charge at the other company. You work on solutions within
your company, he within his, and between you measures to respond
are drawn up. If you are not on the same wavelength or don’t feel
comfortable with each other at this stage, there is a great danger
that you will be unable to surmount any difficulties that you may
encounter.
So when no progress is made even after three months, either
you have to change the person you are negotiating with or,
possibly, there is simply no hope of you doing business with that
company in the first place, so it’s probably best to move on to an
alliance with another company.
Before you
do so, however, there is one thing that you must remember to do.
You must explain to the company that, since there doesn’t appear to
be any mutual benefit in the project, you wish to withdraw, and
convince them of your reasons before going on to find a new
partner. This is because we live in a small world, and one day in
the future you may need to call upon that company
again.
Success stories are the biggest enemy
As your team of eager
members assembles and the project proceeds, there is another
bottleneck that may appear: preconceived notions. There are
preconceived notions such as “this is not possible” and others,
but
I think the one that is the greatest
threat to the project is probably the person who has a success
story. They think that since they achieved
success with such-and-such a method in the past, everything will be
alright if they continue to pursue that method. They are reluctant
to step outside their little world even when the times are
changing.
This is the often cited “boiling frog syndrome.” If the water
in the pond suddenly gets hot, the frog jumps out. But it is the
water heats up gradually the frog doesn’t notice, and is boiled
alive, or so the story goes.
Companies are like boats
trying to sail up a fast-flowing river; they drift back downstream
the moment they stop.
Doing things in the
same way is the biggest risk, but humans
have a homeostasis that makes them want to stay as they are; we are
creatures who want to be left in peace.
However, history is full of
companies that have vanished because they wouldn’t change. The
companies making styluses for record players had been doing so for
year after year apparently without ever imagining that vinyl would
disappear. They didn’t realize what was going on because they were
too wrapped-up in their old successes, and never set foot outside
their own world. If they had been in alliance with any other
business sectors I am sure that they would have been told time
after time that not so many people listen to records these
days.
The
alliance thinking philosophy lives on in the sense of creating a
wide open world around you.
The self-imposed walls of a closed world, springing up before you realize it
An open world is of huge
significance, not only for companies, but for people who come up
with ideas as well. While you may think you want to do this or
that, or such-and-such an idea looks good, you are in fact often
restricted by your own rigid set of preconceived
notions.
One
often seen example is the company that bulldozes its technologies
and products into the creation of new services. “We’ve got some
wonderful technology, so why don’t we use it to do this?” a company
asks itself, and the idea grows out of hand like a bull in a china
shop.
When
you’re thinking about an idea
it is vital
that you keep asking yourself “Who is going to use it, when, where,
for how much and in what way?” and consult with the people who are
going to be the target users. For example,
I have heard of a person working in the development department of a
food company who makes a point of trying out new products on his
family and friends—people outside of his workplace. People at his
company are used to eating new foods; they are “specialists” in the
wrong sense, and apparently products that earn a consensus in his
workplace are often quite unpalatable to members of the
public.
Managing Directori of DoCoMo told me that he always asks his
wife and children for their opinions about new services released by
the company. There’s also a story that he told a board meeting
where he received a barrage of negative opinions: “The service is
aimed at people who, unlike you, are still
young.”
The
merit of alliances is that,
by involving
people with different sets of values, your own preconceived notions
start to collapse, and you become freed from your own
thoughts. Such people include those from
other sectors, people who work with a different perspective,
sometimes foreigners, people from the other sex and other walks of
life et cetera.
The more that “different
cultures” become mixed up in the alliance, the more that you will
realize that you have hitherto been hemmed in by the values of a
narrow little world. Having worked for
three companies so far, I have strongly felt that “the company’s
common sense is nonsense to society.” When there are preconceived
notions, it is vital that fresh blood is introduced to the project
at its earliest stages.
Blue ocean strategy created by alliances
“Blue
ocean strategy” has recently become a buzzword in corporate
strategy circles. The strategy was put forward in the book of the
same name by INSEAD professors W. Chan Kim and Renee Mauborgne. The
“blue ocean” is a market where there are no rivals, enabling you to
freely swim. The idea is that,
instead of heading into familiar markets and the accompanying
bloodbath of price strategy versus differentiation strategy, you
aim at pristine new areas.
Budget airlines
and the first eco car that Toyota put on the market would be good
examples of this. Incidentally, i-mode is mentioned in the book as
a successful example of a blue ocean strategy. I think that
the
Osaifu-Keitai
credit service also deserves the blue ocean appellation too,
because, in addition to using a mobile phone like a credit card,
the idea of being billed later for very small transactions was
something that even the credit card sector itself had yet to
introduce. Until then, nobody had ever thought of paying for a 120
yen can of Coke or a 160 yen train ticket with a credit
card.
The
reason that the credit card companies had never offered such a
service was the prohibitive costs involved. And users would have
been unlikely to accept the time spans involved in paying for this,
that, and everything with a credit card. Moreover, if you buy
something for 10,000 yen with a credit card, the commission is only
around 100 yen, but the credit card company has to pay for the
costs of posting statements and running its system. The figures
just didn’t add up. However, in the case of a telecoms company like
DoCoMo, all that needs to be done is add an extra line for the
expenses incurred on the user’s monthly phone
bill.
The
background of this situation is the relatively low rate of credit
card use in Japan, which is around 7% to 8% compared to 25% in
Europe and America. We thought that if people become accustomed to
buying small items by credit then perhaps some of the younger ones
will go on to buy expensive items by credit, which would boost the
size of the Japanese credit card companies’ market. For their part,
the credit companies were deeply interested in the question of how
they could get young people to carry and use credit cards—our idea
dovetailed perfectly with their needs. And the results are still
evolving before our very eyes.
Gathering information from people, and thinking for yourself causes a chemical reaction
I think that the best way
of getting ideas and gathering information is to actually listen to
people. I asked many people for their opinions when I was working
on the
Osaifu-Keitai
project.
Those days were a case of overcoming a hurdle only to find
another one standing in our way; the path of a telecoms company
like DoCoMo, as it sought to enter the credit sector, was littered
with obstacles. The biggest of these was the problem of know-how
about credit. While we were struggling with this issue, one day a
sign outside a certain shop caught my attention: “Credit cards
accepted.” Hoping that I might learn something useful, I had a chat
with the person working in the shop, who told me that people rarely
paid with credit cards.
Learning that users were few
and far between may have suggested that we were at the end of the
road. But reminded of the words of the person in the shop, I
thought: “If there aren’t many users, why don’t we make the
Osaifu-Keitai
compatible
with credit cards.” The
Osaifu-Keitai, which originated from
the idea that carrying round a bundle of plastic cards was a
nuisance, actually represented a threat to the credit card
companies. But my new idea was a piece of lateral thinking—to merge
the credit cards and the phone. With this idea, a system could be
developed in which the credit companies—which felt threatened by
the entry into their sector of a telecoms company—would actually
end up making money with us. The idea eventually led to the concept
mooted by then director of Mitsui Sumitomo Card, who said, “It
might just make some headway in the small payment sector—let’s make
a new brand.”
Elsewhere, by seeking the opinions of retail professionals
like director of am/pm Japan and director of Family Mart,
many potential bottlenecks became apparent. Proceeding step-by-step
by listening to people, enriching ideas, and making alliances—this
was the concept of the
Osaifu-Keitai.
Matching the alliance with latent needs
If you know from the start
that there is an untapped market, a “blue ocean” somewhere out
there, and work towards that, anybody can be successful. If you run
a company, it is probably worth investing in such blue ocean areas,
and individuals too can flourish by doing something nobody else had
one and harnessing the attractions of their
originality.
But if these blue oceans were so easy to find then nobody
would have any trouble. It’s hardly likely that any one can both
visualize and realize a blue ocean on their own.
As I have already mentioned,
there isn’t really such a thing as a completely new idea. Virtually
every “new” service and product and all the “new” ideas that appear
are in fact modifications, combinations or the splitting up of
something that already exists. However,
I
think that the reason that some of these become hits is not just
that they were in some way modified or combined, but that they
discovered a way of responding to some latent need in
society.
This latency is a vital
point.
People’s dissatisfaction and sense
of inconvenience offer hints for finding these latent
needs. They are to be uncovered behind
phrases such as: “Why don’t they make something like this….” and
“If only they made this…”
You cannot discover latent
needs by, for example, conducting a questionnaire. Because at the
time of the questionnaire, these needs have yet to materialize.
While you can evaluate an existing product with a questionnaire,
you cannot really understand anything about products or services
whose users are not yet visible.
The
Osaifu-Keitai
was a match of latent
needs and an alliance. You may be under the impression that its
development was achieved through massive negotiations like
corporate alliances, but I think that the major factor was the
sharing of latent needs. I suspect that around seven or eight
people out of ten think that the profusion of cards in their
wallets is a nuisance, and it is therefore likely that a great many
of them have thought how useful it would be if they could all be
combined into a single common card.
However, once the latent needs
for a common credit are discovered, even a company that is big
enough to make that a reality is not going to find the
implementation of such a plan to be an easy task. It’s like having
to go around all the card, distribution, and railway companies and
asking them to gather under your umbrella from square one. However
interesting the idea may seem, people at your own company and
outside companies may well ask whether it merits such an arduous
task, and it is possible that nobody will take you seriously. But
if a group of people from telecoms, convenience stores and credit
card companies pulls together and draws in more supporters with a
shared vision of “wouldn’t this be good,” before you know it you
will have a plan that can please everyone. If you yourself lack the
knowledge and skills to do this, then be humble enough to rope in
some people or companies that do have the knowledge and skills, and
get them to think together with you.
By
acting as the producer who draws all these threads together, you
will be able to realize the most successful things
possible. This is how to think about
building things up through alliances.
Managing a company is in many
ways like this. The owner of a restaurant chain can achieve success
without being able to cook. Success will depend on his ability to
blend excellent chefs, interior coordinators who can create a
pleasant restaurant, and an accounting staff that can rigorously
calculate basic costs. Skillful coordination and production is
vital in both the management of companies and the realization of
projects. In other words, there is a better chance of something
being realized
if you involve other people
and think together with them, rather than racking your brains on
your own.
The difference between brainstorming and alliance: is there feedback?
Some readers may feel that
since they both involve the exchanging of opinions, alliances are
like brainstorming sessions. In the latter, people try to suggest
various opinions (without rejecting those of others) in an attempt
to come up with “some good ideas.” They tend to consist mainly of
people from planning departments, and are conducted with an
extraordinarily positive air of producing these wonderful ideas.
While I certainly agree that this is one good method of producing
ideas, the basis of the alliance-style idea creation concept is
quite different.
The basis of alliance-style idea creation begins with this
question: “How can I make this concept of mine go well?” It’s a
question of assessing what you should do to get the other company
interested, and to whom it would be beneficial to speak
to.
The
alliance isn’t about gathering ideas from each and every direction;
it’s a case of repeatedly polishing a single idea.
It requires you to steadfastly maintain the
concept and sense of direction that form the axis of the
alliance.
The fact is that while there
are plenty of “proposals” at brainstorming sessions, there is
rarely much room for “feelings.” Yet it is these “feelings” that
are more important to the process of idea creation. Because, as I
have explained with regard to “blue oceans,” it is not the positive
ideas—the sense of wanting to do something—that leads to blue
oceans; rather, it is the negative, dissatisfied idea of “why don’t
they make this?”
Mobile phones were a response to people’s dissatisfaction at
not being able to make calls unless they were near a public phone;
convenience stores a response to their dissatisfaction with
everything being shut at night; the
Osaifu-Keitai
a response to their
dissatisfaction with the ridiculous amount of cards in their
wallets. However, despite all these being considered unsatisfying,
there is absolutely no proof that “if we make this it’s going to
sell.” When business projects are planned they usually involve
market research, data analysis and forecasts et cetera. They are
formulated logically and then proposed.
Platform and Alliance thinking
begins with the arguments of “why don’t they make this? This would
be useful,” not a sense of “I want to do this.” If you gain a
consensus at this point, the process will snowball and plans to
make a reality of the idea will start to take
shape.
New,
unheard of businesses, are a question of predictions about the
future, and since no prerequisites exist, a way of thinking that is
born out of emotion will become necessary.
Platform and Alliance thinking needs somebody who can become “the leader”
If you use the platform and
alliance thinking method when you are looking at things, ideas that
may at first seem hackneyed or vague can rapidly become more
feasible by getting other people involved. But you must maintain a
strong passion and impetus, a sense that you are going to carry
through your project come what may. You may be given some negative
opinions about your idea, but you have to go out and find comments
that will help to point you in the right direction.
Steering the project is your role, and leadership
is essential for making your own platform and the
alliance. Promoting the alliance is a
little like being a bus driver, with everybody else as your
passengers.
So what should you do in order to reach your destination?
First, commitment is vital. In other words, you must pluck up the
courage to decide that this is what you want to do, that it is good
for the company, and then make sure that everybody knows about it.
Maybe this side of my personality helped, but I have always—without
breaching confidentiality—been open in telling people what I am
thinking about, regardless of whether they are within or outside
the company, clients, bosses or junior staff. This is why I have
always found alliances growing up around me before I even
realized.
Of
course, I am not trying to tell you that as long as you have
commitment you’re dreams will come true. But getting the right sort
of people involved will greatly enhance the chances of an idea
turning into a reality. It’s good to provide plenty of information
about yourself, even if it’s not directly linked to work—the fact
that you are interested in cars, or World Heritage, or trying out
restaurants and so on. It’s quite possible that this will lead to
all sorts of common topics, which may in turn broaden the horizons
of the alliance.
By building up lots of alliances around you to formulate your
own Platform and gaining the trust of other people by providing
them with information, people will help you as a matter of
course.
The concept of “give, give, give and take”
Though you might think that
this is a contradiction of what I have just described, you are not
going to find that a helpful alliance is created straight away just
by distributing information. Because in order to gain people’s
help,
you will need to be considerate
enough to maintain, manage and improve that
information.
An alliance is not just a
group of friends. No progress will be made if you limit its
membership according to whether you like or dislike somebody. But
if it’s not based merely on amicable relationships then what else
is there? The answer is probably a shared purpose and some sort of
benefit or interest. If you want to use an alliance, you must
continuously provide the other people with merit. What exactly do I
mean by “merit?” You don’t have to think about this too
deeply.
Just imagine what the anxieties
and dreams of the other person or his company are, and create a
relationship where you can think about them together.
By patiently making other people aware of what
you have to offer in this way, you can earn their
trust.
This
will require that you make them aware of the fact that you are
moving perseveringly towards that goal, and show them that your
ideas are always under progress. If you allow yourself to be
discouraged by others or suggest that perhaps your idea isn’t going
to work after all, all the ideas, trust and expectation that have
built up around you with expectation will be eroded in an
instant.
The
other people in the alliance may still be dismissive of your idea,
or not yet convinced of your ability. But if you show them that you
are working towards realizing a project, they will understand that
you are “thinking with them” and are therefore more likely to
cooperate with you. When I was working on the
Osaifu-Keitai
project, I always
tried to get across to those around me the message that the project
would be of benefit to their company. Though you will naturally
have your own underlying hopes, you must always adhere to the
concept of bringing benefits to the other party.
The philosophy is one of “give, give, give and
take,” in other words, for every merit you gain for yourself try to
give three more to your partners. Quite
naturally, the other party will also start to seek their own
benefits, and when these merge, the benefits for you will be
considerable.
Chapter 3 Alliance information sorting skills
Change yourself into a magnet for information
Become a magnet for information!
With the idea of the
alliance, the meaning of collecting information and sorting
information makes a 180° shift.
I would suggest that the
reason why the work of collecting and sorting information causes
you so much trouble is that finding “good information” is a
somewhat difficult task. The world is overflowing with information,
but perhaps you can’t take out and use the information that ties in
with your work or ideas whenever you want or in an effective
way.
In this
chapter on alliance information sorting skills, all these problems
will be swept away. Because once you’ve acquired the know-how, the
meaning of the need to collect or sort information will basically
disappear.
First, with alliance information sorting skills, information
is something that collects around you, not something that you
actively collect.
Because you transmit information first, the people in your
alliance will automatically bring you information without you
having to go out and look for it.
In my case, by transmitting
information about the
Osaifu-Keitai
and mobile phones people from the credit world
brought me information about credit, and people from the
convenience store world brought me information about convenience
stores, quite naturally. Since this was live information from
people who are the cream of their profession, it was a great deal
fresher and reliable than anything I could have found by browsing
on the Internet or searching through bookstores.
And rather than trying to sort
or process this information on my own, I then modified and blended
it, and transmitted it to other people.
For example, when I was given
some documents about a particular field, having glanced over and
gained the gist of them, I might think, “Mr. A would be interested
in this issue, so I’ll put him in charge; I’d like him to become an
expert on the matter,” and pass the information on to Mr. A, a
junior colleague. Of course, if there is a Mr. B who is desperately
keen to the work, you give the documents to Mr.
B.
In other
words,
once I have gained the information
and briefly chewed it over, I decide which part of the alliance
should keep or store the information, rather than sorting it on my
own.
In this
way the stream of new information ends up going through the Mr. As
and the Mr. Bs of the world, and is stored up field-by-field,
client-by-client. What you have to do is play a role like a hub
airport. And if you don’t have any subordinates yourself, it’s
worth trying to form an alliance with colleagues in departments
outside of your own.
The value of information increases dramatically when it is sent to people who need it rather than just collected
This may not have come to
the surface yet, but at most companies sales opportunities are
being lost and trouble is frequently occurring because information
is not being shared by people in different departments and
sections.
They are all sitting on their information. I often hear
phrases like, “The matter has ground to a halt at that manager’s
place.” It’s not just that the information has stopped; the problem
is that the manager himself has turned into a
bottleneck.
At first glance alliance information skills may look like a
somewhat irresponsible process of fobbing off work onto other
people, but this is not all the case. By relaying information as
swiftly as possible, the location of the information is clarified
into human units. In doing so, if for example you obtain some
information about convenience stores and there is an awareness that
such information should be passed on to Mr. B, then everyone else
is sure to pass on information of that nature to Mr. B. Mr. B
accumulates a vast amount of the latest information on convenience
stores and becomes a professional in that field. If that happens,
then everybody turns to him for advice on convenience store
matters, and he in turn passes on information about convenience
stores to other members of the alliance.
One piece of information is thus sorted and processed, its
value increased several times, and then brought back to you.
This is the effect of alliance information
sorting skills.
Incidentally, if you take a look at actual hub airports such
as Amsterdam’s Schiphol and Singapore’ s Changi, you will see that
they become jam-packed with airplanes, cargo and people. Likewise,
when you become the information hub of your alliance, there is a
chance that you may become overcrowded with information. In order
to deal smoothly with this you have to play a role similar to the
airport’s control tower.
It is therefore
vital that you learn how to transmit the information you gain as
quickly as possible.
One more point. The
art of information “traffic control” is to
carefully classify it, pass it on to the alliance and get rid
of it. Any information that you are in two minds about should be
chucked out.
In factory and store operations, the process of gaining
information and immediately passing it on is managed to the extent
that the task is expected to be completed within five seconds. But
relaying information at these speeds is something that isn’t even
on the agenda in the white collar sector.
Lunchtime is the optimal information-gathering skill
Of course it is “people”
who are the bedrock of alliance information sorting skills. In my
own case, it is lunchtime that is the most effective core aspect of
my information-gathering skills using other people. Why is
lunchtime the most effective tool? First of all, I want the reader
to understand that however many meetings with people in other
sectors or seminars you attend, information isn’t going to fall
into your lap. That’s not enough to make your alliance expand.
Presumably your friends do not constantly phone you with exclusive
pieces of hot news. Because even if they had that hot news, the
likelihood is that they would keep it under their
hat.
So
in order to gain the information
you need from the people around you, you must first make it clear
to them what sort of person you are, what you can do, and what
information you need.
If you continue to make others
aware of these facts, eventually they will start to think, “Ah,
so-and-so knows all about this, I’ll introduce him to you,” or,
conversely, “I’ve got the same problem as you,” thus naturally
leading you to the information you want.
And you will often find
that
the information that is useful to
your idea actually lies in the emotions or true feelings hidden
behind that information.
Creating a chance
for an informal chat is a much more effective way of gathering
information than ceremoniously asking questions in the company
meeting room.
So where is the easiest place to create a chance for this
informal chat? Inviting someone out for a drink is one answer, but
this ends up using two or three hours of that other person’s time,
and while alcohol may be effective in loosening tongues, it also
tends to put any talk of work on the back burner. You might be able
to ask your friends out for an “idle chat,” but this is hardly a
proposal that you can out to a client, particularly if they are of
a higher station and age than yourself.
But an invitation to lunch is
often surprisingly effective. While there are many ways in which
people spend their dinnertime and afterwards, and some people go
home to eat with their families, virtually everybody goes for
lunch.
Unlike dinnertime, lunch is taken during working hours, time
is limited, and the other person feels that you are not placing too
much of a demand on their time. This also makes it easier for you
to ask out women or your senior colleagues. The other person is
unlikely to feel badly if you make a rule of paying for their
lunch. While they are expensive in the evening, high class
restaurants usually offer a reasonably priced lunch menu. Moreover,
since time is at a premium during lunch it is easier to get
straight to the point. If you allow around one hour for lunch, and
limit your conversation to what you really want to know about
instead of showering the other person with questions, you will find
you are able to obtain valuable information.
I make a point of asking
things like: “What sort of person is so-and-so?” “What interests
you lately?” and “What are your views on the way I think about
this?” If I can ask these things, the fine details of the work and
the concrete matters can be dealt with later by e-mail or further
meetings.
Even when you don’t have any burning questions or matters
that you are anxious to discuss, I thoroughly recommend taking
lunch in order to find out what the other person has been up to
recently and what they are interested in. As long as you are
prepared to do the questioning, all sorts of information can be
gleaned from even the most rambling chatter. This information is
infinitely more useful than the answers to questionnaires or what
you find out from business interviews.
In addition to the gathering
of information,
what is really important
about lunch is that it gives you an opportunity to assess at first
hand whether or not the other person is reliable and whether or not
there appears to be any chance of doing some fun work with them in
the future.
I gather that the question of “Do you think that you would
like to work with this person?” is the most carefully examined part
of the entrance examination at Google; likewise it is the lunchtime
alliance that deepens the bonds between trustworthy
people.
People’s self-defense mechanism leads them to instinctively
pull away when suddenly approached. Studying that person as much as
you can at first and then building up an intricate relationship
will lead to a more successful and long-lasting friendship. Of
course, you can sometimes hit it off and make friends straight
away, but in terms of business alliances it is more effective to
spend some time getting the person to know you, getting to know
them, and giving them some breathing space.
Though lunch is going to cost
you some money, look at it as though you were buying a few
books—just having lunch several times a week will bring you much
precious information. I myself have often found that an apparently
directionless lunch appointment has led to conversations such as,
“So-and-so knows all about that, why don’t the three of us have
lunch together some time?” which have tied in with business and
helped to expand the alliance much more than mere information
gathering.
The alliance lunch is a place for natural business communication
While the idea of meeting
people for lunch is fine, when the question of where to eat and the
fact that people may be working at the time are considered, you may
well think that there are restrictions on the sort of people who
can be invited out at that time of day. But this is just another
stereotyped view of lunch. Whether they are in the office or
outside, the timing with which it occurs to people to have lunch
usually coincides, and the meal is probably taken as a natural
matter of course.
However,
I regard lunchtime as a
clear opportunity for gathering information, and look forward to
it.
First of all I configure a schedule
that includes lunch, so I sometimes have “lunch in Ginza” marked in
my diary up to two months beforehand. I also make an effort to
ensure that lunchtime is never left blank. This enables me to
conscientiously plan the schedule for my alliances through lunch.
For example, if I know that I have an appointment in Shibuya in a
couple of weeks time, I start to ask myself who I know in the
vicinity. Reminded of somebody who I haven’t met lately, I might
send an e-mail telling them I shall be near their office and
suggesting lunch. If you fill up your lunchtimes in this manner,
your connections with other people will continue to
grow.
The
most important feature of alliance-forming lunches is to remember
to be grateful to the other person for sparing their valuable
time.
This is why I make a point of going
to restaurants near that person’s place of work where possible. If
you get the chance to see where the person works, go and take a
look. Understanding the atmosphere in his or her company is
surprisingly useful to the alliance.
Rather than merely obtaining
information, one of the great pleasures of these lunchtimes is
letting the power of successful people rub off on me, and coming in
to touch with his aesthetics. When I make
an appointment for lunch, I do so with a sense that it is worth
more than ten or twenty business books, that it is a chance to get
close to “living” business, even if it may be no more than an
incidental meal for the other person. I am flexible about the time
and place, and try to fit in with my acquaintances’ plans
regardless of whether they are a junior colleague or a student.
Lunching with young people is stimulating, and is something I value
greatly.
I
think my lunchtime methods are somewhat similar to the European and
American idea of the “Power breakfast.” The Japanese, however, are
not accustomed to meeting each other early in the morning, and most
people would be reluctant to force someone to get up early for the
sake of a meeting. So let’s make the most of our lunchtimes. Please
do not eat lunch alone anymore.
Don’t shy away from “inefficiency” when making an alliance with people
I have just mentioned the
gathering of information at lunchtimes, but it seems that, having
met a great many people, there is a tendency for “efficiency” to be
emphasized in order to obtain information. However,
with alliance information sorting skills, the
idea of meeting people even if it comes to nothing is very
important. In doing so, the volume of
information that ends at your door is often considerable. The idea
is rather like preparing a cabinet full of drawers for future use,
rather than just concentrating on the information in front of
you.
When
you’ve gained a piece of information from somebody, probably the
most time-efficient ways of relaying it are e-mail, followed by
phone calls, and finally, actually telling somebody face-to-face.
There is no doubt that if you relay the information by an e-mail or
phone you will be able to do so in a concrete and pinpoint manner,
which improves efficiency.
When I try to get somebody
involved in an alliance, I think that the best way is to meet them
in person, in small numbers—ideally just myself and one other. This
is because when you meet and speak with somebody, you will often
find that what they want to talk about at that time contains
information that you wouldn’t have obtained from the questions you
had thought up beforehand.
By constantly
maintaining an awareness of alliances, unexpected new ideas
sometimes open up at the prompting of even the most innocent piece
of conversation.
Of course, you will often have
meetings that fail to lead to any direct benefits. But you just
don’t know what sort of information and abilities you are going to
need in a few months’ or a few years’ time.
So instead of taking a short-term “is it useful?” attitude,
surely it is better to listen to the views of as many people as
possible and learn from them.
If you adopt this “one of
these days” perspective, there is a much better chance of you
encountering in the future a person who is unexpectedly helpful.
Either way, things will change if you yourself transmit information
and remain active. If you spend all your time making judgments
about your actions you will not make any
progress.
Not restricting your circle of acquaintances should also
apply to contacts from previous days. I left NTT DoCoMo more than
five years ago, but those of us who worked together there have
formed a little club, which we call “The Chickling Club,” and still
meet up regularly. (The naming of the club is not particularly
profound—there is a really delicious fried food shop called “The
Chickling” near DoCoMo’s head office in Tameike Sannou, and our
club was formed with no greater motive than going there to eat.)
The club consists of many people who you used to work under me and
others who have now move on to different jobs.
Many people may who change
jobs may not wish to continue to see the people who they used to
work with, but I have a strong sense of gratitude to my former
colleagues, and believe it is thanks to them that I have made it to
where I am now. My former junior colleagues and associate are the
comrades-in-arms who fought with me; their ongoing growth is a
source of great joy to me, and their anxieties and struggles still
cause me a great deal of concern. Now my former junior colleagues
don’t have to address me as “Mr. Hirano,” their manager, they
afford me with a valuable opportunity for hearing the real truth
about what’s going on in all sorts of different
businesses.
I would suggest that the amount of information reaching a
person varies by several degrees depending on whether or not they
are making the most of their former business connections, rather
than merely seeking new connections and information. For one reason
or another I often find myself being consulted by people who want
to change jobs or are in a state of anxiety about their work.
Obviously, I don’t regard these occasions as an opportunity to make
an alliance or get something in return from that person. However,
in the end it often leads to these people giving me a vital piece
of information or introducing me to somebody a few years down the
line.
I
think that people who try too hard to network are overly obsessed
with the question of “Is there any merit in getting to know this
person?” This limits the range of people they can become
acquaintances with, and makes relationships a dull
affair.
You
don’t know where you’re going to get your next piece of information
from. So try to be useful to as large as possible a number of
people, and make an effort to respond where possible to their
needs. It is more important to try to make an impression on people,
so that your identity will be stored away in some part of their
memory.
The melting pot theory—buried treasure in the most unexpected places
Why does New York produce
so many success stories? Some people say that it’s because the city
is a cultural melting pot.
I think there is a similarity
between information and the reason that New York produces so many
successes.
The interaction of different
information arising from people with different outlooks makes it
easy for new concepts to be born, which is
why I call this idea the “melting pot theory.”
The other day, on the
introduction of a friend, I went to hear the Liberal Democratic
Party’s Taro Aso speak. The meeting was attended also former
IBJ colleague who has become an Senator of Japan, as well as
several other friends from the finance world. The fact that
politicians from both of these parties were discussing things
together in the same room was interesting, and with the addition of
perspectives from the finance sector, I learnt a great deal from
the various opinions offered at the meeting.
What fascinated me even more,
however, was the way that somebody like myself—a person with no
interest in politics hitherto—suddenly felt an awareness of the
problems being discussed. The views of the two parties expressed in
words may differ, but their starting point is the same: a wish to
improve the nation through politics. This may appear obvious, but
it made me think. The experience is not going to immediately lead
to useful answers, but it provided me with plenty of food for
thought.
I
would now like to turn to information that you catch directly with
your own eyes and ears. If you want to find out for example what
sorts of things are likely to catch on in the convenience store
sector, you can obtain this information to a certain degree from
magazines or searching on the Internet. But what you find will have
been doctored by the interpretation of the specialist or journalist
relaying the information, and you cannot really be sure about how
accurate it is.
My point is that the affairs of the world are often strongly
colored by various preconceived notions. In the case of the
Osaifu-Keitai
too, many
of the articles about DoCoMo that were leaked to the press were
along way from the truth.
But most people think that
this sort of information is accurate coverage, and blindly rush
ahead according to these criteria. What this experience suggested
to me is that
in order to come across
accurate and fresh information, you have to encounter it first
hand. Thinking for yourself is a vital
part of the information-gathering process.
For example, let’s say that
somebody makes an exhaustive search of the Internet for information
about the distribution industry. He will, no doubt, have become a
very well-informed person. Now let’s suppose that there is another
person who meticulously walks around various department stores and
shopping malls, eagerly listening to the people working there. Some
people may regard this as an “inefficient” exercise, but in terms
of looking, listening and thinking, that person will have been
rewarded with a hands-on experience, a valuable awareness that
clearly outweighs that of the Internet searcher. What decides the
success or failure of work is not the question of how much
information you can amass; what matters are the unique ideas that
you are able to draw out of all the information you have obtained.
Surely it is crystal clear which of the two examples above is the
more effective display of information-gathering
skills.
Perhaps knowing all sorts of information will turn you into a
“walking library.”
Unless you ask yourself
what you feel about the information you have obtained and how you
should make the most if it, it will not lead to the important
results of creating new value.
It is not what you know that is vital, it is what
you think about based on that information, and how you execute what
you have thought up.
Chapter 4 Alliance networking skills