* * * * * * * * * T E R R I E 'S T A K E * * * * * * *<br>A weekly roundup of news & information from Terrie Lloyd.<br>(<a href="http://www.terrie.com">http://www.terrie.com</a>)<br><br>General Edition Sunday, September 30, 2012, Issue No. 680<br>
<br>+++ INDEX<br><br>- What's New -- Is Sony Turning into a Medical Company?<br>- News -- Signs of a pending recession?<br>- Upcoming Events<br>- Corrections/Feedback -- Fujitsu service problems<br>- Travel Picks -- Kinosaki, Hyogo and Canal City, Hakata<br>
- News Credits<br><br>SUBSCRIBE to, UNSUBSCRIBE from Terrie's Take at:<br><a href="http://mailman.japaninc.com/mailman/listinfo/terrie">http://mailman.japaninc.com/mailman/listinfo/terrie</a><br><br>BACK ISSUES<br><a href="http://www.japaninc.com/terries_take">http://www.japaninc.com/terries_take</a>, or,<br>
<a href="http://mailman.japaninc.com/pipermail/terrie/">http://mailman.japaninc.com/pipermail/terrie/</a><br><br><br>-=-=-=-=-=-=-=-=-PBXL Managed Cisco Services-=-=-=-=-=-=--=<br><br>After delivering the first hosted Cisco PBX offering in <br>
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PBXL Managed Cisco Voice--because PBXL is Business <br>Communications<br>-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-<br><br>+++ WHAT'S NEW<br><br>Did anybody else notice that just as Sony did their JPY50bn<br>
buy-in to Olympus, and which was plastered all over the <br>papers, they quietly sold off their chemicals business to <br>the Development Bank of Japan (DBJ) at the same time? And <br>that coincidentally, the chemicals assets were worth <br>
JPY57.2bn? The conclusions we draw from this remarkable <br>timing and similarity of valuations of the two transactions<br>is that firstly Sony doesn't have an extra JPY50bn in the <br>coffers to spare on an act of largesse with Olympus, and <br>
secondly, probably Sony's involvement with Olympus is not <br>Sony's choice alone. Rather, we think that the nation's <br>erstwhile bureaucrats are cooking up an asset shell game to<br>keep Japan's tech companies Japanese.<br>
<br>The chemicals business that Sony sold is not critical to <br>their operation, and so the sale wasn't unreasonable in and<br>of itself. Apparently the subsidiary makes optical film and<br>adhesive materials. However, one wonders why the DBJ is <br>
buying the asset, and not the INCJ or one of the other <br>organs the government might usually use for such an <br>investment? Our guess is that using the bank means that <br>there is no need for the same level of due diligence that <br>
would normally come from using a regular investment <br>vehicle, and thus the deal could get done quickly and <br>quietly. <br><br>[Continued below...]<br><br><br>---------------- Bilingual Web Marketing ----------------<br>
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-----------------------------------------------------------<br><br><br>[...Article continues]<br><br>Actually, it's fun to speculate what the DBJ will do with <br>its new asset. Our guess is that it will either be <br>
repackaged and sold off to one of the leading plastics <br>producing firms in a few months, after the dust has <br>settled, or, more likely it will simply continue serving <br>Sony, with the DBJ holding on to it for 5 years or so <br>
until Sony can buy it back again. You can do that kind of<br>thing with a bank when it is government controlled and <br>doesn't have any oversight from the FSA... Nothing <br>particularly wrong with this, just interesting to see <br>
Japan Inc. at work at such an obvious level.<br><br>Going back to Sony, they have been making a few <br>organizational realignments recently which make us think <br>that finally the senior management are making some <br>meaningful decisions. For a start, the company has taken <br>
over control of its publicly listed subsidiary So-Net and <br>thereby So-Net's own collection of blooming and profitable <br>investments. Amongst the two that stand out are an 11.75% <br>stake in games company DeNA, where the investment is now <br>
worth about JPY32bn, and a 55.9% stake in online medical <br>business M3, which is now worth JPY120bn to Sony. Once you <br>see the value of these two firms' shares, plus the <br>operating assets of So-Net itself, you can see that for <br>
JPY61.1bn Sony got a pretty sweet deal buying up So-Net's <br>shares and taking the company private again. Wonder what <br>the other shareholders thought about this? They don't seem <br>to have put up much of a fight over it...<br>
<br>So is Sony re-inventing itself as a medical technology <br>company as is being suggested in the media? It wouldn't be <br>such a stretch of the imagination, especially after seeing <br>the successful turn-around of Fujifilm which headed down a<br>
similar path (but with pharmaceuticals). Both companies <br>appear to have come to the conclusion that there is a <br>future in the old and sick. In getting its hands on M3, <br>Sony now has access to 220,000 doctors in Japan, and thanks<br>
to M3's own mini-M&A program over the last 18 months, <br>access to about 1m doctors and other medical personnel in <br>the UK, Russia, and the USA. Indeed, M3 says that it now <br>has one of the largest medical subscriber bases in the <br>
world.<br><br>The way things are going, if Sony does focus its ambitions <br>in medical then it will once again be confronted by the <br>fundamental clash in its corporate culture: hardware <br>versus software. In the past, apart from games, it has <br>
struggled to bring synergy from its otherwise strategically<br>sound acquisitions. Maybe with medical equipment and <br>services, the company will be able to make a breakthrough <br>and realize the real potential of its investments. For <br>
example, one of M3's assets is an outsourced clinical <br>trial services business, the acquisition of which we <br>reported back in July (<a href="http://bit.ly/SWCcWJ">http://bit.ly/SWCcWJ</a>). We can<br>see how combining diagnostics based on endoscopic imaging <br>
with online services might create a radical improvement in<br>medical skills allocation and cost control. It's also a <br>service that could be delivered internationally, especially<br>to third world countries, since surgical techniques tend to<br>
be more standardized that some other areas of medical <br>practice. <br><br>Then of course, thinking even further ahead, what if they <br>try to gamify online medical services...?<br><br>The Sony investment in Olympus has been good for Olympus, <br>
even though back in July they appeared to baulk when Sony <br>demanded a board seat and a joint venture in surgical <br>endoscopes. Olympus' capital ratio will lift from a low of <br>2.2% in June to 10% after the Sony investment and this fact<br>
has caused a number of foreign investment funds to up their<br>stakes in the company again. But perhaps most importantly <br>for Japan Inc., Olympus has escaped the clutches of TPG and<br>several other foreign funds, and so as far as the <br>
bureaucrats are concerned it's a case of "mission <br>accomplished" -- Japanese high-tech remains Japanese.<br><br><br><br>...The information janitors/<br><br>***------------------------****-------------------------***<br>
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<br>Please visit <a href="http://delta.com">delta.com</a> for more details.<br>-----------------------------------------------------------<br><br>+++ NEWS<br><br>- Signs of a pending recession?<br>- Recruit buys major US jobs site network<br>
- Indian generic drugs firm on a roll<br>- Maybe Hon Hai doesn't need Sharp so badly after all<br>- Japan Inc. helps out Mitsubishi<br><br><br>=> Signs of a pending recession?<br><br>A joint Dow Jones Nikkei survey of economists has found <br>
that industrial production fell by a much higher rate than <br>expected in August. The fall was 1.3%, versus the 0.4% <br>predicted earlier. Coming on top of a 0.3% fall in consumer<br>prices, it appears that deflation is still alive and well <br>
in Japan, and the country is probably on the verge of a <br>recession. On seeing the fall in industrial production, <br>METI issued a downgrade on its own assessment for Japan <br>for the second time this year. The dispute with China is <br>
considered to be partly to blame for the industrial <br>production fall, and economists are saying that if the spat<br>is not resolved soon, the Japanese economy will take an <br>even bigger hit in coming months. (Source: TT commentary <br>
from <a href="http://marketwatch.com">marketwatch.com</a>, Sep 28, 2012)<br><br><a href="http://on.mktw.net/P3vYsJ">http://on.mktw.net/P3vYsJ</a><br><br>=> Recruit buys major US jobs site network<br><br>Recruit has acquired the US' largest job site network, <br>
Indeed Company, for an undisclosed amount but which is <br>rumored to be up to US$1bn. In buying Indeed, Recruit gets <br>550 more employees, a network of job sites in 50 countries,<br>and a subsidiary whose sales have been reportedly doubling <br>
every year for the last 3 years. ***Ed: Indeed is an <br>amazing story, with the site being launched in 2004 with <br>funding of just US$5m, and surpassing Monster.com for <br>traffic last year. The company's business model has been to<br>
offer compelling tools and prices to partner media firms <br>all over the world, and aggregate and redistribute jobs <br>over its network. Simple formula, hard to do, brilliantly <br>executed.** (Source: TT commentary from <a href="http://reuters.com">reuters.com</a>, Sep <br>
28, 2012)<br><br><a href="http://reut.rs/W2fYqz">http://reut.rs/W2fYqz</a><br><br>=> Indian generic drugs firm on a roll<br><br>Mumbai-based generic drugs maker Lupin is reportedly <br>seeking to double its current US$250m sales of generic <br>
drugs in Japan over the next five years. The company <br>reckons that there are at least US$10bn of patented drugs <br>where the patents are expiring during the same period, and <br>where it can snag a significant share of the resulting <br>
generics sales. Lupin earns about 12% of its revenue in <br>Japan, its third largest market after the USA and India. <br>The company sells through two 100%-owned subsidiaries: <br>Kyowa Pharmaceutical Industry and I'rom Pharmaceuticals. <br>
(Source: TT commentary from <a href="http://indiatimes.com">indiatimes.com</a>, Sep 30, <br>2012)<br><br><a href="http://bit.ly/Sc2ny8">http://bit.ly/Sc2ny8</a><br><br>=> Maybe Hon Hai doesn't need Sharp so badly after all<br>
<br>In a move that might spell more trouble for Sharp in the <br>next couple of years, Hon Hai (Foxconn) has purchased NEC's<br>portfolio of LCD panel patents for JPY9.45bn. Although the <br>patents are not manufacturing know-how, they could indicate<br>
that Chairman Terry Gou is planning to exert more influence<br>on the tech world through enforcement of the patents. <br>***Ed: Gou's strategy so far seems to be to align himself <br>with Japanese firms for the missing know-how, countering <br>
Korean dominance in the LCD and general electronic <br>components field, so perhaps the patents will become a <br>stick to go with the carrot? He's a sharp businessman, so <br>there must be something amongst this patent portfolio that <br>
caught his attention.** (Source: TT commentary from <br><a href="http://wsj.com">wsj.com</a>, Sep 28, 2012)<br><br><a href="http://online.wsj.com/article/BT-CO-20120928-704843.html">http://online.wsj.com/article/BT-CO-20120928-704843.html</a><br>
<br>=> Japan Inc. helps out Mitsubishi<br><br>In what appears to be an act of government favoritism, the <br>Japan Aerospace Exploration Agency (JAXA) has passed the <br>commercial rights to launch its H-2B rocket to Mitsubishi <br>
Heavy Industries (MHI). What this means is that not only is<br>MHI now able to recruit its own customers globally but it <br>can also bill JAXA for JAXA's own launch services from the <br>next mission. The powerful H-2B rocket can lift up to 8 <br>
tons into orbit and is considered quite reliable. If MHI <br>can get launch costs down it may become a viable contender <br>for international customers -- something the Japanese <br>government would dearly like to see after the nation's <br>
biggest commercial satellite operator, SkyPerfect JSat, <br>signed multiple launch agreements with the Arianespace <br>consortium in Europe earlier this month. (Source: TT <br>commentary from <a href="http://spacenews.com">spacenews.com</a>, Sep 28, 2012)<br>
<br><a href="http://www.spacenews.com/launch/120928-japan-privatizes-h2b.html">http://www.spacenews.com/launch/120928-japan-privatizes-h2b.html</a><br><br><br><br>NOTE: Broken links<br>Many online news sources remove their articles after just a<br>
few days of posting them, thus breaking our links -- we<br>apologize for the inconvenience.<br><br>***------------------------****-------------------------***<br><br>-------- BIOS – Bilingual IT Systems and Support ----------<br>
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-----------------------------------------------------------<br><br>+++ CANDIDATE ROUND UP/VACANCIES<br><br>=> BiOS, a Division of the LINC Media group, is actively<br>marketing the following positions for customers setting up<br>
or expanding in Japan, as well as other employers of<br>bilinguals.<br><br>** HIGHLIGHTED POSITION<br><br>BiOS is urgently looking for a Network Engineer to join a <br>global data center services provider in Tokyo. In this <br>
position, you will be responsible for designing and <br>architecting network systems for both domestic and <br>international clients within data centers, leading 24/7 <br>system monitoring teams, overseeing external IT vendors, <br>
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vacancies, with each entry featuring a short job<br>description and a direct link to the main entry on the BiOS<br>home page. Regardless of whether you are unemployed and<br>searching, thinking about a career change, or just curious<br>
to know if there is something out there that might suit you<br>better, the BiOS Job Mail newsletter is an easy and<br>convenient way for you to stay informed. If you would like<br>to register for the BiOS Job Mail, or to find out more,<br>
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for other jobs: <a href="http://www.biosjp.com/positions.php">http://www.biosjp.com/positions.php</a><br>-----------------------------------------------------------<br><br>***------------------------****-------------------------***<br>
<br>+++ UPCOMING EVENTS/ANNOUNCEMENTS<br><br>No events this week.<br><br>***------------------------****-------------------------***<br><br>+++ CORRECTIONS/FEEDBACK<br><br>In this section we run comments and corrections submitted<br>
by readers. We encourage you to spot our mistakes and<br>amplify our points, by email, to <a href="mailto:editors@terrie.com">editors@terrie.com</a>.<br><br>=> In TT-679 we highlighted a new global outsourcing <br>service by Fujitsu. Although the service itself seems just<br>
what the doctor ordered for Japanese companies looking to<br>expand abroad, perhaps as our reader suggests, Fujitsu<br>needs to have its delivery team catch up with the <br>Marketing one.<br><br>*** Reader Comments:<br><br>
As part of my international business development and <br>operations work I do quite a bit of customization of CRM <br>software (SalesForce.com) for clients. I see Fujitsu email <br>addresses on many tech support responses at the standard <br>
service level. Whereas a few years ago SalesForce had great<br>support in email and on the phone, it has recently become <br>completely worthless. It seems the service contract is <br>delivered by Fujitsu staff based somewhere in Central <br>
America. <br><br>Are they bilingual? Well, I often couldn't understand what <br>they were saying, so I asked them to email the answer to <br>me. That didn't help much, and in the end they didn't know <br>much. As an example, it took three escalations to get to a <br>
decent answer, and weeks went by in a world where immediate<br>service counts. Notably, in Q1 this year, SalesForce <br>stopped inbound phone support. So now the situation is that<br>if I log a case they will call me back in a few days… but <br>
unfortunately the knowledge and language problems are just <br>as serious as ever. <br><br>So, I'd say if this is any example, Fujitsu is not <br>providing a service of value. <br><br>The upside is that everyone else has noticed the same <br>
thing, and it's driven users to the forum boards on the <br>web. As a result, SalesForce's quality and response times <br>are better, but Fujitsu doesn't seem to be involved. The <br>answers are quite good, and often quite fast. <br>
<br>Fujitsu would do better to invest in automated response AI <br>systems. <br><br>***------------------------****-------------------------***<br><br>+++ TRAVEL DESTINATIONS PICKS<br><br>=> Kinosaki Hot Springs, Hyogo<br>
<br>The idea of ambling around in your birthday suit in front <br>of friends might not be your cup of tea, but indulge me for<br>a second please. It is autumn, and on a cold clear night <br>you’re sitting in a luxuriously comfortable 40+ degree <br>
bath, staring dreamily at the stars. A couple of old blokes<br>chattering away in the corner, cheery-eyed and relaxed. <br>Surrounded by rocks, greenery, and a colorful blanket of <br>illuminated autumn leaves. A faint trickle of a waterfall <br>
in the background.<br><br>Kinosaki is famous for its invigorating hot springs <br>(onsen), and has seven sotoyu (public hot spring bath <br>facilities). Most folk put on a yukata (a casual cotton <br>kimono) and geta (wooden sandals) and meander around town <br>
visiting the different baths. There is a ticket called <br>Yumepa that allows you to enjoy the seven sotoyu baths <br>unlimited times between 2pm and 10am the next day. What I <br>like most is that Kinosaki looks and feels very different <br>
to the more modern cities, and that’s its main allure. You <br>really feel like you have gone back in time to see some of <br>the old Japan. The town itself has a very nostalgic and <br>ambient atmosphere. Wonderful traditional Japanese <br>
architecture is ever-present in the design of the hot <br>springs, souvenir shops and restaurants. Cherry blossom <br>trees and weeping willows also adorn the Otani-gawa river, <br>adding to the charm.<br><br><a href="http://japantourist.jp/view/kinosaki-hot-springs">http://japantourist.jp/view/kinosaki-hot-springs</a><br>
<br>=> Canal City, Hakata<br>Much more than just another shopping centre<br><br>Fukuoka's Canal City is a large shopping complex <br>conveniently situated between Tenjin (downtown area), <br>Nakasu (entertainment district) and Hakata (originally a <br>
port city). There are around 250 shops and restaurants, a <br>cinema, a theatre, amusement facilities, a game centre and <br>2 high-class hotels. A city within a city.<br><br>The first time I strolled around Canal City, I couldn't <br>
really grasp what it was all about. The futuristic design <br>of the buildings make them look almost as if they come out <br>of a Star Wars film. Though initially seeming painted in a <br>somewhat bizarre mix of colors, the choice of color is <br>
actually that traditionally used for kimonos. Apparently, <br>the concept of Canal City is a "city theater", with the <br>"people" as the actors. The Sun Plaza Stage located in the <br>center juts out onto the canal, flanked by a vibrant wall <br>
of balconies. The 5 main areas (Sea Court, Earth Walk, Sun <br>Plaza Stage, Moon Walk, Star Court) along the canal are set<br>out in order, traditional to modern themes. The Sun Plaza <br>Stage even has a range of performances and music shows on <br>
most days.<br><br><a href="http://japantourist.jp/view/canal-city">http://japantourist.jp/view/canal-city</a><br><br><br>***------------------------****-------------------------***<br><br>***********************************************************<br>
END<br><br>SUBSCRIBERS: 7,836 members as of September 30, 2012<br>(We purge our list regularly.)<br><br>+++ ABOUT US<br><br>STAFF<br>Written by: Terrie Lloyd (<a href="mailto:terrie.lloyd@japaninc.com">terrie.lloyd@japaninc.com</a>)<br>
<br>HELP: E-mail <a href="mailto:Terrie-request@mailman.japaninc.com">Terrie-request@mailman.japaninc.com</a><br>with the word 'help' in the subject or body (don't include<br>the quotes), and you will get back a message with<br>
instructions.<br><br>FEEDBACK<br>Send letters (Feedback, Inquiries & Information) to the<br>editor to <a href="mailto:terrie.lloyd@japaninc.com">terrie.lloyd@japaninc.com</a>.<br><br>ADVERTISING INFORMATION<br>For more information on advertising in this newsletter,<br>
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straight to Mailman at:<br><a href="http://mailman.japaninc.com/mailman/listinfo/terrie">http://mailman.japaninc.com/mailman/listinfo/terrie</a><br><br>BACK ISSUES<br><a href="http://www.japaninc.com/terries_take">http://www.japaninc.com/terries_take</a><br>
or, <a href="http://mailman.japaninc.com/pipermail/terrie/">http://mailman.japaninc.com/pipermail/terrie/</a><br><br>Copyright 2012 Japan Inc. Communications Inc.<br><br>----------------- Japan Inc opens up Japan ----------------<br>
<br>J@pan Inc authoritatively chronicles business trends in <br>Japan. Each posting brings you in-depth analysis of <br>business, people and technology in the world's third <br>largest economy.<br><br>Visit <a href="http://www.japaninc.com">www.japaninc.com</a> for the best business insight on<br>
Japan available.<br>-----------------------------------------------------------<br><br><br><br><br><br>