This is the translation version of https://nazolab-japan.com/?p=259.
In my previous post, I suggested that many Japanese companies are focused more on solving immediate, localized operational issues than on pursuing long-term business growth through value creation. While that discussion falls under what I call the “Second Mystery,” this article explores why the “Third Mystery” — how Japanese businesses engage with the global market — is so critical.
In fact, I believe this third issue intersects deeply with both the First Mystery (the structural challenges of IT departments in Japan) and the Second. What follows is a rough working hypothesis based on more than two decades of research, observation, and direct experience in the field:
🧩 Working Hypothesis
- Japanese companies tend to treat IT not as a strategic growth enabler but as a basic utility — like a calculator. (Closely tied to the First Mystery)
- As a result, their willingness to use IT for value creation is significantly lower than that of global counterparts. (Linked to the Second Mystery)
- This leads to a persistent disconnect between global vendors (particularly from the US and Europe), who see business potential in Japan, and the Japanese enterprises they hope to serve.
Cultural and organizational misalignment creates friction and wasted opportunity — for both sides.
The Outsider’s View vs. the Insider’s Blind Spot
Of course, cultural and historical differences play a role in failed implementations. But like the Japanese proverb “Okame Hachimoku” (The onlooker sees more than the players), external perspectives can offer valuable insight — especially for companies facing stagnation or transformation fatigue.
In recent years, we’ve seen more Japanese companies hiring Western executives or MBA graduates to gain a global edge. However, many of these initiatives fail to deliver expected outcomes.
Why?
From my experience, one major reason is that most corporate leaders, managers, and employees remain domestically focused, and since short-term performance doesn’t immediately suffer, there’s little incentive to change.
Real-World Gaps I’ve Observed
Over the years, I’ve worked extensively with Western software vendors — especially those offering CRM and customer-centric solutions — and also with the Japanese companies evaluating their products. I’ve observed several recurring patterns of misunderstanding:
🔹 1. Solving surface-level problems only
Many Japanese companies try to deploy packaged software to address only the visible pain points (e.g., eliminating complex manual spreadsheet work), while ignoring upstream process inefficiencies. As a result, they often bypass the full potential of the system — and fall into the “customization trap.”
Example: A company focuses solely on replacing outdated manual workflows, without addressing the root causes in their upstream processes — even when the software offers capabilities to improve them.
🔹 2. Indecisiveness in leadership
Even after compelling presentations and proposals, decision-makers often delay or avoid giving a clear answer.
A Western vendor once asked me, “Do you think this product will sell in Japan?”
I genuinely believed it was a great solution, but said, “It’s hard to say — success depends on who will take ownership of the necessary cross-functional change.”
He laughed and replied in Japanese, “So… is the problem the oyaji?” (a slang term for traditional older male managers).
I couldn’t help but smile — because he wasn’t wrong.
🔹 3. Excessive obsession with “quality”
While quality is of course important, Japanese companies sometimes reject solutions for minor usability issues, even when the overall end-to-end impact is negligible.
I’ve even heard cases where companies reverted to old systems because performance appeared worse — only to discover the bottleneck was actually in their legacy core systems, not the new software.
🔹 4. Overemphasis on cost reduction
Global software is often more expensive than domestic alternatives. But that’s partly because it includes functionality built for a global scope.
Japanese buyers tend to view the extra functions as “unnecessary,” but they could actually be valuable tools for learning global standards — or systematizing previously human dependent sales or marketing practices.
These long-term benefits are often overlooked due to a narrow focus on short-term IT cost ceilings.
Why This Matters
These are just a few examples, but they point to a deeper issue: the way Japan evaluates, adopts, and integrates external solutions is misaligned with global practices.
That doesn’t mean global vendors are always right. But unless we acknowledge and address these gaps, Japanese businesses may continue to miss valuable growth opportunities.
What This Blog Will Explore
In this category, I aim to explore the structural and cultural disconnects between how global companies view Japan — and how Japan views itself. My hope is that by shining a light on these “third mystery” dynamics, we can foster more productive, mutually beneficial engagement between Japan and the rest of the world.
If you’re a global executive wondering, “Why is Japan so difficult to crack?”
Or a Japanese professional asking, “Why don’t global approaches work here?”
This is the conversation I hope to build.
As always, your questions, thoughts, and feedback are welcome — feel free to leave a comment or reach out through the contact form.