K A ZUO NAK AMUR A

Ta l k W i t h

YA S U M A S A YA M A M O T O

The Key to Strength is inAccepting Differences andContinuing to Change
Kazuo Nakamura
CMIC HOLDINGS Co., Ltd.
Chairman and CEO

Yasumasa Yamamoto

U.S. venture capitalist
Specially Appointed Associate Professor, Graduate
School of Advanced Integrated Studies in Human
Survivability (Shishu-Kan), Kyoto University

The Key to Strength is in Accepting Differences and Continuing to Change

KAZUO NAKAMURA

The spread of the COVID-19 pandemic gave rise to an
economic crisis and revealed many issues in Japanesesociety, shedding light on Japan's waning presence in theinternational community. With the rise of digitaltransformation (DX), artiﬁcial intelligence (AI), and othernew technologies, companies must transform to survive.
How can Japanese companies overcome this obstacle?
CEO Nakamura spoke with Yasumasa Yamamoto, whoworks around the world as a venture capitalist andtechnology advisor.

Japanese companies. I was deeply

belong toalarmed to realize that nobody wasbusiness-oriented firms

interested in Japan.

like Google. They

Nakamura Right. It is important tocontinue to creatively

know what is covered in the news

make and develop

abroad, and how Japan isnew things.

perceived. Going forward,

Meanwhile, 70% of

gathering information will be anengineers in Japanessential skill. It is vital to learn

work at vendors with

about domestic and global affairs.

low wages, and they

Talk WithYASUMASA YAMAMOTO

generally perform

COVID-19 and digitaltechnologies

age-old system
maintenance or design
to match

noticed this.

media. With so much information

Vaccines are clearly the only way tomoving around, we need to think

Nakamura What do you think about

Nakamura In projects,

curb the pandemic, and I worked

for ourselves more and select which

DX in Japan during the digital age?

this creates a mindset

rapidly to help build a smooth

information to follow.

Yamamoto Companies must rapidlyof simply following

system for vaccinations. However,Nakamura I am skeptical of thetransform to face the threat oforders, so they do not

Nakamura I am currently alarmed

unscientific rumors are circulating inJapanese media as well. It is vital to

COVID-19. As a result of suchthink creatively aboutthat Japan's position in thesociety, claiming that mRNAraise the alarm about the global

efforts, it is said that worldwide

how to achieve added value.

stealing everyone's jobs.

international community isvaccines* rewrite our DNA andcrisis amidst a once-in-a-century

technological progress moved two

Yamamoto Exactly. They do not

Nakamura Unless people

worsening due to COVID-19. Iother falsehoods.

pandemic, but the media scares

years forward in the first two

take risks or tackle challenges,

understand that algorithms only

wonder how many people have

Yamamoto If you have even apeople in the name of freedom ofmonths. At the same time,

which slows down the shift toincrease in accuracy with a lot ofmoderate amount of

the press. They bring about unease,

companies that rely on external

digital.

data, they tend to assume that any

scientific knowledge,

but they do not report on thecontracts with no in-house

Nakamura I think many people

kind of AI can solve their issues. I

it is clear that mRNA

solutions. Citizens have grownengineers fell behind by two years.

misunderstand AI as well.

spoke with a data scientist thevaccines have fewnumb to the continued shocking

In this manner, many companies

Yamamoto Yes, you're right. In

other day who, in reality, was justadverse effects, butstories, and their awarenesswere left in the dust, revealing

Japan, many people assume that AI

doing office work. I wouldn't callnevertheless thisregarding COVID-19 has

Japan's weaknesses. However, thisis just a computer, so they can leave

the person an actual data scientist.

incorrect informationconsequently dulled. The issue here

also serves as an opportunity forthings up to IT companies. While IT

There is an issue with bridging thishas caught on.

is rooted in the debasement of theJapan. It has sparked efforts tocompanies can program, they havegap between concepts and reality,

Falsehoods spread

media. Of course, it is ideal for thereview old business processes, suchno experience in extracting insights

but how can we achieve this?

easier than the truth

people who receive information toas abolishing Japan's seal culture.

from data. You need to understandbecause people pay

think for themselves. I was shocked

Nakamura Without the COVID-19

programming and statistics to use

attention to media

to think that Japanese people's

pandemic, Japan's business

AI. Also, AI is just a means to anthat featuresinformation literacy has fallen socustoms would probably haveend, so you must clarify what you

sensational stories;

low.

continued forever. Japan is late inwant to achieve with it. Currently,

falsehoods are said toYamamoto It may be hard to do

shifting to digital, so this may be its

AI is able to analyze general text

travel eight times

that without experience. I first met

last chance. Why is Japan sodata as well as images, audio, andfaster than the truth.

you in New York, and I could sense

sluggish despite the acceleration ofnatural language. If people properly

Today, regularwhile I was there that Japan's

DX abroad?

understood what AI can and cannot

people can spreadpresence had declined. The Wall

Yamamoto One huge difference isdo, there would be noinformation via social

Street Journal hardly covers

that 70% of engineers overseas

misunderstandings about AI

The pandemic revealed
the weakness ofindividuals

KAZUO NAKAMURA* mRNA vaccine: A type of vaccine that uses a synthetic replica of a natural chemical substance called messenger RNA to cause an immune reaction.

specifications.
YASUMASA YAMAMOTO

The Key to Strength is in Accepting Differences and Continuing to Change

KAZUO NAKAMURA

is most important. The company
must change itself, or have astructure that can accommodate
differences. Companies need aTake a step forward
to expand yourhorizons

culture of collecting external

Talk WithYASUMASA YAMAMOTO

Nakamura I agree. For example,

wide up when I went to New York.

this year at CMIC, we completely

You don't normally meet dazzlingchanged the flow for training new

and awe-inspiring people in yourrecruits. Generally, training for new

daily life, but by taking a new step

recruits involved getting themforward, I came to encounter new

opinions, holding internal

Nakamura What should we doready for the workplace, but thisnetworks and values. Having

discussions, and accepting what isgoing forward?

idea of only treating them asacquaintances with sharp insights isdifferent.

Yamamoto When I hold lectures

worthy once they were

the greatest way to attain success.

Nakamura Do you have any ideas

on innovation, people often ask me“workplace-ready” is odd. Fresh

Nakamura By listening to the expert

about how to do that?

if I know of any useful case studies

students may have more creativeknowledge of successful fieldYamamoto You need multiple field

for their industry. They are trying tosensibilities, so perhaps we should

specialists, you have more

specialists serving as directors.

simply memorize the correct

try to learn from them instead. It is

opportunities to be exposed to new

The role of director should notanswer. I find it unnerving that they

crucial to develop your human spirit

ideas and perspectives, and yourjust be “the next rung above

try to get the quickest answer

and vitality, not just business

whole world opens up. I feel that

executive officer.” For example,

rather than developing the thoughtmanners and etiquette, right?

we need to send out morealmost all people who have theprocess to reach a solution. The

Yamamoto That is a fresh

information like this. Japan can still

Yamamoto Today, a great variety offear of being called out for powerlatest knowledge in digital fields

best option for stability in a rapidly

perspective. We are

make a comeback, but it only has auniversity lectures are available onharassment. You cannot simply

are under 50, but few companies

changing society is to keepbusinesspeople, but we are also

tiny window of time to do so. I wantYouTube. Some videos haveorder people to discuss things,

select directors in that age

changing, if not the evolutional

human beings first and foremost, soto inform people about this and get

subtitles and translations, and you

but ideally, leaders should make itbracket.

theory. There is no silver bullet, sovitality is crucial. I feel thatyounger people involved to change

can fit the learning into youreasy to speak up and allow people

Nakamura That's true. There areyou have to think independently

successful people excel in thisJapan. Thank you for taking theschedule. C-level executives abroad

to share their honest opinions

still few companies with a board

and continuously consider how you

aspect. In truth, I never used to betime to talk with me today.

study in executive programs atregardless of their positions.

of directors who can adeptly

can evolve.

very social, but my horizons opened

Harvard, Stanford, and otherYamamoto You cannot engage indiscuss technology.

leading colleges, but shockingly,

healthy discussions if you are

Yamamoto It also helps to doalmost no executives from Japanafraid of your evaluation suffering.

more M&As and continue gaining

are enrolled in these programs.

You cannot expect to get an

new insights. Eight out of ten

Nakamura It is perilous to think thatanswer immediately, but you may

acquisitions may fail, but that’s

they have no will to study despite

find one good idea if everyone

not a problem.

so many opportunities. You cannot

chips in. You can only find

You can't have a 1.000 batting

do business in the modern age withsomething great by continuing toaverage in baseball, either. You

old knowledge, but executives at

debate things. It sounds

need to keep trying to succeed.

Japanese companies are notinefficient, but this is a vitalThis is a challenge in the true

sufficiently aware of this fact. It is

process over the long term.

sense of the word. The mostvital to continue learning new

Nakamura Things will obviously

important thing is to have a firm

things regardless of your age.

not go well if people neglect tovision of what you want tobuild a culture for having

become, and then put that into a

discussions, or if companies only

pitch for the other company togrow through acquisitions.

join you.

Yamamoto More companies are

Nakamura I aim to have a sharedmaking corporate venture capitalvision with employees, with(CVC) for new businesses and theneveryone thinking hard about

Nakamura There is a recent trendacquiring such new ventures, butwhat they can do to achieve it.

of avoiding discussions due to athe road after acquisition is what

Do not fear
discussion and accept
differences

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