ASEAN-Japan Business Week 2022 Day2
Short Summary:
The ASEAN-Japan Business Week 2022, Day 2, focused on the future direction of Japanese businesses amidst deepening Southeast Asia-China economic ties and corporate transformation strategies. Key points included the need for Japanese companies to adapt to a changing geopolitical landscape, invest in "invisible" aspects of the market (demand, partnerships, locations), and embrace innovation, particularly in cutting-edge technologies like quantum computing and bioinformatics. Specific examples discussed included Asahi's success with the Wonder coffee brand in Malaysia, Sojitsu's integrated cattle business in Vietnam, and J-League's expansion in Southeast Asia. The overall implication is that Japanese companies must move beyond viewing ASEAN as a mere production base and instead engage in co-creation with local partners, fostering innovation and adapting to the region's rapid economic and technological growth. Detailed processes for organizational transformation and new business development in ASEAN were presented and discussed.
Detailed Summary:
The transcript covers two main sessions: "Future Direction of Japanese Businesses Amidst Deepening Southeast Asia-China Economic Ties" and "Corporate Transformation of Japanese Companies: Critical Strategies to Thriving in Global Competition."
Session 1: Future Direction of Japanese Businesses
This session began with Mr. Wada introducing Mr. Kosiva (KSIW), who highlighted a sense of crisis for Japanese companies due to shifting geopolitical realities and the need for economic security. Kosiva emphasized the importance of considering geopolitical factors in business decisions and the need for Japanese companies to strengthen ties with ASEAN given the current international situation. Mr. Hayami (Deloitte) followed, presenting research on the strengthening economic relations between China and ASEAN. He stressed the importance of "realism" in understanding the situation and focusing on "invisible" aspects of the China-ASEAN economic sphere, including investment in unseen locations and partnerships. He used the examples of the battery separator and cement industries to illustrate how Chinese companies are strategically investing and expanding their influence. A panel discussion followed, with Mr. Kosiva, Mr. Hayami, and Professor Jimbo offering their perspectives on the challenges and opportunities for Japanese companies in the region. Key takeaways included the need for Japanese companies to differentiate themselves, focus on specific niches, and engage in deeper dialogue with governments and the public sector to navigate the complex geopolitical landscape. Professor Jimbo highlighted the growing economic and military power of ASEAN, emphasizing the need for Japan to view ASEAN as an equal partner.
Session 2: Corporate Transformation of Japanese Companies
Professor Idiyama (Waseda University) delivered a keynote address on corporate transformation, emphasizing the need for Japanese companies to create new value through innovation and overcome "competency traps" that hinder exploration and adaptation. He argued that the pandemic has created an opportune moment for change. He highlighted the rapid growth and innovative capabilities of Southeast Asian companies, emphasizing the need for Japanese companies to view the region as a market and investment destination, rather than just a production base. He warned that Southeast Asian companies, with their younger populations and lack of path dependency, are poised to overtake Japanese businesses in many sectors. Mr. Sakata (IGPI Singapore) presented the results of a survey on key factors for developing new businesses in Southeast Asia. The eight key factors identified were: mission/vision/value/strategy co-creation; local leadership; resource allocation; effective monitoring; knowledge creation and sharing; diverse corporate management; HR system transformation; and long-term view. Case studies from Asahi, Sojitsu, J-League, Unicharm, and Lixil illustrated these factors in practice. The panel discussion emphasized the importance of top management commitment, local autonomy, and co-creation with local partners. The panelists highlighted the need for Japanese companies to adapt their management styles, embrace local expertise, and foster a culture of innovation and risk-taking. Mr. Nakamura (Cross Capital) emphasized the importance of speed and agility in the dynamic Southeast Asian market. The session concluded with a reiteration of the need for Japanese companies to transform their approach to the ASEAN market, moving beyond traditional models and embracing innovation and co-creation with local partners.