How the synergies, complement, and interaction are needed in global cross-border spaces

We are living in a modern world connected to the economy, society, politics, and the environment etc where we are more required to have mentality, mindsets, and insights from not just local and national, but global perspective. There is no doubt about it.

Global and cross-border cooperation and collaborations are inevitably required in various places worldwide, and it is becoming like a daily form. And, the most important factor inside is “whether that is positive synergies, complements, and interactions mutually for both sides” or not. To put it simply, how can people(who have many different parts such as culture and consciousness etc) create together and manage them wisely? It depends on that.

If it can't be done, it won't even take shape, and even if it does take shape, it will fail on the way. However, by being able to do that, the powers of both sides can be combined and complemented, and the power and value of fusion can be maximized together stronger and faster.

How can we accurately find out what there is and what there is no both in ourselves and others, and try to fill up together for it well? You have to know both yourself and the other person well.

From there, how can we respect each other, and stay intimately on the same ship boat for a long time both in good times and bad times, and live our lives together? It depends on that.

From a global perspective, many industries and markets continue to be required to fill in their holes, mutually creating synergies, complements, and interactions globally.

Some areas and cases are listed below for the good reference.

We ourselves will also keep widely and deeply exploring and digging various existing synergies, complements, and interactions globally.

by being able to do that, the powers of both sides can be combined and complemented, and the power and value of fusion can be maximized together stronger and faster.

IT professionals with biggest digital transformation market

With the acceleration of digitalization in Japan, all industries are facing the challenge of a shortage of IT human resources. According to the Information Technology Promotion Agency (IPA) "IT Human Resources White Paper 2020", there will be a shortage of up to 790,000 IT human resources in 2030. It is easy to imagine that "DX promotion" and "digitalization" will continue to be keywords that attract attention in the future. Securing advanced IT human resources will undoubtedly become a business challenge for IT companies and other industries as well.

Countries like India, Bangladesh etc, on the other hand, is in the midst of economic growth, and as its people have become more affluent, the quality of their education has improved and many of them have university degrees. However, the country faces the challenge of a lack of attractive job opportunities due to salary and employment instability etc. 

Therefore, in recent years, the number of Japanese learners has increased rapidly in Bangladesh. The number of learners increased to 4,801 (2.2 times compared to 2015) between 2015 and 2018, according to a new window that opens in a new window to the Japan Foundation's external research site (FY2018). Among South Asian countries, Bangladesh has the fourth largest number of Japanese language learners after India, Sri Lanka and Nepal, and the rate of increase is the highest in South Asia. In addition, as of 2018, the number of Japanese language learning institutions is 85 (2.3 times) and the number of Japanese teachers is 220 (2.3 times), both of which are on the increase.  

Then, at the same time, IT companies, HR services companies has been recruiting more IT professionals in India, Bangladesh etc, so that they are increasing to employ local IT personnel on a larger-scale and contribute to solving the problems of both Japan's IT human resource shortage and their employment shortage.

IT companies, HR services companies has been recruiting more IT professionals in India, Bangladesh etc, so that they are increasing to employ local IT personnel on a larger-scale and contribute to solving the problems of both Japan's IT human resource shortage and their employment shortage.

Core Key technology with highest prospective new industry

China became the world's largest new car sales market in 2009. However, their core auto parts, which consist of the accumulation of technologies and know-how such as engines and deep digging, were far from the backs of parts makers in Japan, Europe and the United States.

However, EVs, which do not have an engine and have a small number of parts, have changed the competitive ground of the automobile industry. The Tesla Shanghai plant in China has shipped nearly 500,000 units in 2021 year, about two years after its operation launch. Tesla's expanding procurement network in China is driving the rapid industrial agglomeration of EV parts. I hear that 90% of the parts used at the Shanghai factory are procured domestically. Local suppliers and manufacturers have achieved rapid growth triggered by transactions with Tesla.

The abundant and strong capital strength of Chinese companies is also a driving force for industrial agglomeration. One of a major Japanese air-conditioning parts manufacturer, which had been in a slump, became a subsidiary of a major Chinese consumer electronics company. The technology that efficiently manages the heat generated by batteries and motors is the core technology that will influence the competitiveness of EVs in the future. Apple, which is aiming to enter the EV market, had also interest to the Japanese air-conditioning parts manufacturer with the technology that has attracted attention, but no Japanese company has appeared to support it under good conditions.

The Japanese air-conditioning parts manufacturer decided to extend and expand EV parts businesses by that way, and are heading for their reconstruction term. Indeed, it is an effort to reorganize synergies with external companies according to the time being, and it is strategic and positive. And, it is good for companies like them to accelerate such efforts together even in other emerging markets such as India etc. It's a one-off huge business opportunity in most promising new industry, filling the gap with good mutual synergies, complement, and interaction.

It's a one-off huge business opportunity in most promising new industry, filling the gap with good mutual synergies, complement, and interaction.

Innovative Creative technology startups with biggest practical market

There are many countries and regions in the world that are said to be one of the world's leading startup powers, both geopolitically and politically and economically, and that has changed with the times. For example, in the olden days, even if the economy was in the middle of an entrepreneurial kingdom, it is normal for the number and proportion to decrease as the economy matures. (Of course, there are exception countries though)

In modern times, for example, collaborations and corperations between Japanese companies and technology start-up companies have been attracting attention for many years, and many achievements have been accumulated mainly in large companies, and even now, they are various proceeding every day. It's a situation where there are new movements upcoming in each day.

However, in terms of their actual potential, the reality is that their cooperation and collaboration are still lacking from a global perspective. There are quite huge number’s start-up companies (new and additional) that want to collaborate and cooperate with Japanese companies all over the world. And in fact, their Japanese side want to have more contact with such start-up companies and seek cooperation and collaboration. It can be seen that there are many Japanese companies (including not only large companies but also medium-sized companies) to think about. In other words, there is a gap that is difficult to see.

Occasionally, huge business investment projects of super-large companies are taken up by the mass media, and it is easy to get the illusion that most of the possible collaborations and cooperation are already in progress, but the reality is still far away...

There are still not enough good potential synergies, complementary relationships and interactions.

Why do you think that collaboration and cooperation between start-up companies and Japanese companies will be required both nationally and globally now and in the future? Why do you feel its significance?

In our own way, we are taking up some of the following elements from the perspective of synergies and complementary relationships.

1.   Spirit, Mentality, Consciousness

At the root of a start-up company, they have spirit that has a positive meaning, such as "the courage to dare to do something that cannot be done normally." They are always with optimistic powers who are determined to face difficulties and consider everything achievable.

On the other hand, for example, after many years of glory, many Japanese companies are obsessed with the fact that many companies that are big and fat have supported Japanese office workers (salaryman culture) represented by old traditions, common sense, shackles, and systems.

There are still many situations there where too much old spirit, mentality, and consciousness are strongly clinging to each other. The courage to dare to do things that cannot be done normally and the spirit of taking on challenges have rapidly diminished, and now it seems that some companies are desperately trying to recover.

However, in the present and future where rapid changes and deeper and broader insights, thoughts, and knowledge are required globally for all things, the old spirit, mentality, and consciousness cannot survive, and reforms can’t easily made only internally. On the contrary, Japanese companies that have such updated things continue to be growing steadily.

in the present and future where rapid changes and deeper and broader insights, thoughts, and knowledge are required globally for all things, the old spirit, mentality, and consciousness cannot survive, and reforms can’t easily made only internally.

2. Creativity, Novelty, Feasibility, Independence, Originality, Sustainability

All of the above are the forces that are required by the present and future times. And nowadays, companies that lack them need to fill their weaknesses in some way.

In order to create innovations such as taking new initiatives, improving issues with new approaches, and solving them, it is indispensable to combine technologies and business models inside and outside. You can strategically build a system that can be put into practice more densely and faster by creating win-win synergies and complementary relationships with startups that have innovative technologies, ideas, and the most important sense of speed.

Also, about the maximum utilization of in-house technology and know-how. The technology that we have cultivated over the years in-house is often a great treasure that is still comparable to advanced technology. In fact, it should be possible to develop new business models from in-house technology by digging deeper or thinking from a new perspective, but businesses can’t  be easily found in closed spaces or internal communities within the company or in related industries. Such cases that have not been transformed well are occurring inside many Japanese companies.

On the other hand, in terms of further nurturing what has grown to some extent and sustainably managing it, Japanese companies have good deep and wide experience that they are good at the team play. It can be said that this is an indispensable element to be learned that startup companies should adopt.  

it should be possible to develop new business models from in-house technology by digging deeper or thinking from a new perspective, but businesses can’t be easily found in closed spaces or internal communities within the company or in related industries.

3. Global strategy, marketability

There are many small countries that are said to be a startup powerhouse. Therefore, their domestic demand is small and limited, so most of their start-up companies will draw up and execute strategies and business models aimed at the global market from Day 1 when they started their business.

Therefore, they are strongly demanding cooperation and collaboration with the huge market and companies, which have huge and advanced domestic demand in the top class globally. For example, many Japanese companies produce goods and have a customer base all over Japan and globally, which is a great strength. Especially in small countries, not only their markets small, but they also do not have a manufacturing base. The fact that Japanese companies have a market in Japan and globally and produce it must be a big attraction for start-up companies. Of course, almost all industries other than the manufacturing industry are mature, digging deep and expanding.

It can also be an opportunity for Japanese companies to further globalize the company, create new businesses at the global level, and make improvements, triggered by collaboration and collaboration with start-up companies.

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*In order to more drive and enforce player’s necessary discussion, brainstorming, mixed insights, knowledge, and experiences etc(not only one way communication, but both ways), “Collaborated Articles” in my newsletter with global businesses executives, professionals, and experts would be considered in later stage, so looking forward to hearing any topic and person’s idea from you to be considered if you have any. Please kindly message me or put it in here’s comment for our reference and subscribers !

*We will also start introducing our close friends in here's upcoming “Global Leaders of the Week”, as the person leading and producing values on global fields.

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Best warm regards and have a wonderful week, Hiroyuki Itoh