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  • Ludwig Boltzmann – 100 Years

    Founded 10 years ago here in Tokyo, our company continues a great tradition of European excellence combined with Japan’s great traditions, Japan’s creativity & vitality & excellence.

    Ludwig Boltzmann (February 20, 1844 – September 5, 1906) is our company’s founder’s great grandfather – and one of our company’s great inspiration. We are working hard to continue his tradition of innovation and excellence and diligent work.

    Ludwig Boltzmann died exactly 100 years ago today, on September 5, 1906.

    Ludwig Boltzmann worked in many different areas and found the first explanations for many phenomena. He did not just create one single invention, but he created very many.

    Boltzmann is best known for his work in gas theory: using complex mathematical tools, many of which he had developed himself, Boltbmann linked the macroscopic “Entropy” of gases with the microscopic forces between atoms and molecules in gases. “Entropy” was initially just a useful macroscopic concept similar to temperature and pressure of a gas developed during the early days of industrialization in England to optimize steam engines. Boltzmann showed that Entropy is a much much deeper fundamental concept, and showed how Entropy is related to the collissions between atoms and molecules in a gas and that Entropy expresses the probability that a body is found in a certain state.

    In Boltzmann’s days, it was not generally accepted that atoms and molecules exist. Actually, in Vienna in those days, in order to survive socially, Boltzmann had to use very careful words: he usually did not say directly that he is convinced that atoms and molecules exist: he said that they are just a useful concept, whether they exist or not.

    Ludwig Boltzmann was the last great classical physicist. He knew of several unexplained puzzles: Brown’s motion, the discrete spectra of atoms, curvature of space, but he could not explain them with the classical methods he mastered. Today Boltzmann’s methods, the Boltzmann constant, the Boltzmann Equation and much of his work is used every day in telecoms, information technology, electronics, chemical industry and many other areas.

    Read more about Ludwig Boltzmann…

    Copyright·©2013 ·Eurotechnology Japan KK·All Rights Reserved·

  • SoftBank’s flagship store

    SoftBank’s flagship store

    Yesterday (August 26, 2006) SoftBank opened the new Roppongi flagship store. SoftBank’s white/silver/grey colorscheme replaces Vodafone’s bright red:

    Rebranding Vodafone KK's former Roppongi flagship store to the SoftBank brand, after acquisition of Vodafone KK by SoftBank
    Rebranding Vodafone KK’s former Roppongi flagship store to the SoftBank brand, after acquisition of Vodafone KK by SoftBank
    SoftBank rebrands the former Vodafone KK flagship store in Roppongi
    SoftBank rebrands the former Vodafone KK flagship store in Roppongi

    Copyright·©2013 ·Eurotechnology Japan KK·All Rights Reserved·

  • YAHOO and Google’s mobile strategies

    Japan is a couple of years ahead of Europe and US in mobile communications by most measures.

    What are GOOGLE and YAHOO doing in Japan’s mobile sector?

    GOOGLE partnered with KDDI (Japan’s No. 2 mobile operator with about 25 million mobile subscribers) to develop mobile search.

    YAHOO-Japan made a large step forward when SoftBank acquired Vodafone’s Japan operations in March this year.

    SoftBank’s latest mobile phones include a “Y” = YAHOO button:

    SoftBank's Yahoo button
    SoftBank’s Yahoo button

    Yesterday, August 26, 2006, SoftBank opened it’s new flagship store in Tokyo-Roppongi including a YAHOO-Spot:

    SoftBank opens Yahoo-spots within the SoftBank stores
    SoftBank opens Yahoo-spots within the SoftBank stores

    Copyright·©2013 ·Eurotechnology Japan KK·All Rights Reserved·

  • iPhone? iTunes/iPod phones?

    There is a lot of discussions about whether Steve jobs is going to announce an iPhone or iPod-Phone at the Apple Computer Developer’s Conference in SF – according to the headline report on Saturday May 13th, 2006 in Nihon Keizai Shinbun ( the world’s largest business daily ) it’s already known since May this year that Apple and SoftBank are developing such a joint mobile phone with iPod and iTunes functions.

    On March 17 SoftBank announced the full acquisition of Vodafone’s Japan subsidiary – the former J-Phone –  jointly with YAHOO-Japan as a co-investor – so with about 15 million mobile subscribers in the world’s most advanced mobile market (Japan), SoftBank/Apple will have the firepower to make such a phone a success, provided it’s tuned to Japanese consumers’ needs and dreams – my guess is that it probably will be.

    By pure coincidence, the Apple/SoftBank headlines appeared one or two days after DoCoMo and Microsoft announced a music cooperation.

    Apple/SoftBank iPod mobile phones coupled to iTunes could have quite a lot of impact on Japan’s music industry: about 20% of Japan’s music sales are to mobile phones. Of all music downloads in Japan about 6% are fixed line internet downloads, and 94% are music downloads to mobile phones: internet music downloads are almost neglibile in comparison to mobile phone music downloads.

    Therefore even if iTunes has a huge market share in the fixed line internet world, iTunes  cannot have much impact in Japan overall if limited to fixed line  internet downloads. iTunes downloads to mobile phones will change the business models of Japan’s music industry – at the moment music downloads to mobile phones cost a lot more than iTunes downloads. An iPod/iTunes music store could reshape the mobile music market in Japan.

    Copyright·©2013 ·Eurotechnology Japan KK·All Rights Reserved·

  • M-Commerce towards US$ 100 billion

    Eurotechnology Japan KK·All Rights Reserved·

    ” title=”Eurotechnology report on mobile payments and mobile commerce” target=”_blank”>Mobile commerce (the mobile phone equivalent of mailorder) exceeded mobile content (music, weather, news, etc) first in 2004 in Japan and is on the way to reach US$ 100 billion in the not too distant future. Read more about Japan’s m-commerce sector below.

    mobile commerce and mobile content in Japan
    mobile commerce and mobile content in Japan

    US$ 0.5 Billion killer application for m-commerce?

    We estimate that m-commerce (the mobile equivalent of mail order, or instant purchase of goods and services) has reached approximately US$ 10 billion per year in Japan, and most likely exceeds this mark already. Mobile phones are used in Japan to purchase many different types of products from music, to train tickets, air tickets, event tickets, books, and even cars. In our work for our customers we analyzed in detail a “killer application” for mobile commerce, where in Japan a single mobile website achieves about US$ 0.5 billion in annual sales.

    read about mobile commerce (and the US$ 0.5 Billion/year killer m-commerce site…

    Copyright·©2013 ·Eurotechnology Japan KK·All Rights Reserved·

  • SoftBank a small fry??

    SoftBank a small fry??

    In my 20 years of business and work between US/Japan and EU/Japan, I am often surprised how Western executives underestimate economic size and strength of Japan and it’s companies – here is another example:
    BusinessWeek writes about the SoftBank/iPod phone, and writes that former Apple executives says that Apple’s CEO Steve Jobs wouldn’t normally tie up with a “small fry” like SoftBank

    Is SoftBank really a small fry? Let’s check it out:

    1. Apple vs SoftBank revenues

    Softbank + Softbank-Mobile (former Vodafone KK) combined have substantially higher revenues than Apple Computer for financial years 2005 and 2006 - so clearly Softbank is no 'small fry' at all compared to Apple Computer
    Softbank + Softbank-Mobile (former Vodafone KK) combined have substantially higher revenues than Apple Computer for financial years 2005 and 2006 – so clearly Softbank is no ‘small fry’ at all compared to Apple Computer

    Revenues of SoftBank + SoftBank Mobile (x-Vodafone KK) were on the order of YEN 2500 Billion (US$ 22 Billion) for the financial year that ended March 31, 2006.
    Revenues of Apple Computer were US$ 13.9 Billion for the year ended Sept 24, 2005. – So in terms of revenue the new SoftBank Group (including the recently acquired x-Vodafone KK) is almost twice as large as Apple Computer.

    2. Apple vs SoftBank market capitalization

    On May 19, 2006, market cap of SoftBank and SoftBank Mobile combined was about 20% less than Apple's market cap
    On May 19, 2006, market cap of SoftBank and SoftBank Mobile combined was about 20% less than Apple’s market cap

    Market capitalization of Apple Computer was US$ 54.9 Billion on May 19, 2006. Market capitalization of SoftBank (US$ 28 Billion) plus SoftBank Mobile Corp (US$ 15 Billion) was on the order of US$ 43 Billion.

    BusinessWeek took note of my letter and published a correction on May 21, 2006, which you can find here and here.

    More about Japan’s telecom industry sector in our JCOMM-Report
    More about Softbank in our Softbank report

    Note added on August 13, 2008:

    When the iPhone was actually introduced to Japan by SoftBank in 2008, Mr Tetsuzo Matsumoto, CTO and Board Member of SoftBank-Mobile and myself were invited by the Foreign Correspondents Club to hold a Press Conference to comment on the iPhone introduction to Japan – you can find the records here.

    Copyright·©2013 ·Eurotechnology Japan KK·All Rights Reserved·

  • Panel Discussion to 200 Japanese Executives at the Industrial Club of Japan

    May 30, 2006: at the Industrial Club of Japan

    Panel discussion for about 200 Japanese CEOs and high level managers about the challenges of international business management.

    The five panelists were:

    • James C Abbeglen
      Allen Miner (CEO of Sunbridge Venture Habitat, and founder of Oracle Japan)
    • Kong Jian (China – Japan Economic Federation)
    • Koshiro Kitazato (Chairman of BT Japan)
    • Gerhard Fasol (CEO Eurotechnology Japan KK)
    Industrial Club of Japan
    Industrial Club of Japan

    By the way – several years earlier Hitachi Board Member Takeda had invited me for lunch at the same Industrial Club of Japan – before the reconstruction of the building – to persuade me to leave my tenured position at Cambridge University, and to become Manager of the Hitachi Cambridge Laboratory.

    Copyright·©2013 ·Eurotechnology Japan KK·All Rights Reserved·

  • Wallstreet Journal "Leadership Question of the Week"

    Wallstreet Journal "Leadership Question of the Week"

    Wallstreet Journal, in the section “Leadership Question of the Week”, on Monday June 12, 2006 on page 31, published an article I wrote about a very extraordinary experience I had several years ago at the German Embassy here in Tokyo, with Dr. Tachikawa – then CEO of NTT-DoCoMo (Dr. Tachikawa has sine then moved on to become the head of Japan’s Space Agency).

    Please find the unedited manuscript here (the actual published version was shortened a bit).

    Leading in Asia:

    What was the best business advice you received and who gave it to you?

    The best business advice I received in Japan was from the former CEO of NTT-DoCoMo, Dr. Tachikawa – he taught me that when two parties do business, both parties have to profit/benefit – not just one party. He also taught me to go straight to the point, not waste time with irrelevant things.

    Here the story in more details:

    I had met Dr. Tachikawa at a reception at the German Embassy – purpose of the reception was to bring together German and Japanese leaders in telecommunications and mobile phones.

    I noticed that Dr. Tachikawa, then CEO of DoCoMo, was standing for quite some time at the window, looking out into the beautiful garden of the Embassy with no one to talk to.

    Why was Dr Tachikawa standing alone with no-one to talk to? My explanation was that the Japanese CEOs at this reception were mainly from DoCoMo’s suppliers, and therefore probably too shy to talk to Dr Tachikawa since Japanese business customs places these suppliers on a lower social ranking than their major customer DoCoMo. On the other hand, the German CEOs who had come from Germany, probably did not know who it was who was standing lonely at the window.

    So I approached Dr Tachikawa and we talked quite a while – all in Japanese.

    His first question after the initial introduction was very surprising – Dr Tachikawa asked me, how our company makes money, where our income comes from.

    Having been CEO of our Tokyo based company for the last 10 years, I am very often asked where our company’s offices are located, how big our office is, how many people we employ and other irrelevant conversational detail., Dr. Tachikawa did not ask any of these irrelevant things – he went straight to the point: how do we make money. In my almost 10 years as CEO in 1000s of conversations, Dr Tachikawa was almost the only manager (Western and Japanese) who went straight to the point not losing time over irrelevant details.

    A few days later I received an email from Dr Tachikawa inviting me to his office at DoCoMo’s headquarters to discuss possibilities of cooperation between NTT-DoCoMo and our very small company Eurotechnology Japan KK which I had founded about 10 years ago here in Tokyo.

    I was amazed by Dr Tachikawa’s kindness. A few days later I spent about one hour in his office at the top floor of Sanno-Tower at DoCoMo’s headquarters, right next to the Prime Minister’s Office.

    I had prepared four proposals and towards the end of our conversation I showed these four proposals to Dr. Tachikawa. He rejected three of them, and decided that DoCoMo was interested in one of my proposal.

    I learn a lot from his way of action – he immediately took three decisions about the one proposal he was interested in:

    1. he said that we must now find a way that both our company profit from this plan
    2. he decided who within DoCoMo would be responsible to carry this project out with our company, and
    3. he decided where the source of the budget for this project should be

    I have been working 20 years with Japan now – and Dr. Tachikawa is certainly the Japanese manager I learnt most from, in the meetings I was lucky enough to have with him.

    Best regards

    Gerhard Fasol PhD
    Eurotechnology Japan KK
    http://fasol.com/

    Copyright·©2013 ·Eurotechnology Japan KK·All Rights Reserved·

  • Blackberry comes to Japan (interview for Red Herring)

    On June 8, 2006, DoCoMo and Research in Motion (RiM) announced that DoCoMo will start marketing RiM’s BlackBerry to corporate customers from autumn 2006.

    DoCoMo will offer a version of BlackBerry which will use wCDMA (FOMA) 3G network connection in Japan, and will also be able to operate on legacy GSM/GPRS networks which are still in common use in other parts of the world (there is no and there has never been any GSM network in Japan).

    Read an article in Red Herring about BlackBerry coming to Japan,

    and read our “eurotechnology.japan.blog” about BlackBerry coming to Japan.

    Copyright·©1997-2013 ·Eurotechnology Japan KK·All Rights Reserved·

  • Briefing 30 Swedish Controllers / CFO’s of Investor AB’s portfolio companies on Japan’s telecom markets

    by Gerhard Fasol

    April 24, 2006 was my Swedish Day: for breakfast I was invited to IKEA’s opening party for their new store in Funabashi (I met even with the global Chairman of IKEA – that he attended the opening in Funabashi shows how seriously IKEA is taken the market entry to Japan) – we had done some IT work for IKEA.

    Lunch and afternoon I spent with about 30 Swedish CFO’s / controllers of some of the largest Swedish corporations, who had come to Japan on a study tour. These CFO’s/Controllers were all working at companies in Investor AB’s portfolio.

    The Swedish controllers had asked for a briefing on Japan’s telecom industry. Some of their companies are considering to start, re-start, or grow faster in Japan, so there were many detailed questions about business in Japan, what can go wrong, personell issues, experience of other multinationals, and of course a lot of questions about IKEA and Vodafone.

    My presentation was similar to the presentation I had given on March 23, 2006 to the Technology Attaches of the Embassies of the 25 European Union countries, which lead the European Union to award our company a project contract about EU vs Japan benchmarking issues in telecoms and key technology areas.

    Copyright 1997-2013 Eurotechnology Japan KK All Rights Reserved