JOURNAL
THE AMERICAN CHAMBER OF COMMERCE IN JAPANVol. 58 • No. 4 • April 2021 • ¥1,000

THE VOICE OF GLOBAL BUSINESS IN JAPANGOVERNMENT TECHHR

Government and business must
digitize to move Japan forward

How three big moves could transform
Japan’s educational and business systems

HEALTHCARE

LAW

MediFrame aims to streamline anddigitize Japan’s drug data

Will pandemic and digital agenda end
the hanko?

Firmware Update

Pharmacy in the Cloud

Developing Digital Talent

Sunset Seal

Japan Digital
Agenda 2030

Big moves to restore digital competitiveness and productivity

The ACCJ
Is Working for You
During these challenging times, it’s more important

ACCJ members benefit from a virtual ecosystemthan ever to make sure you and your employeesthat helps member companies stay informed andstay connected, informed, and engaged, especiallyconnected, at a fraction of the cost of travel andwhen other professional development activities areconference fees. This invaluable resource includes

less accessible.

the following beneﬁts:
 Connect with more than 70 special interest committees
 Engage with over 30 virtual meetings and Webinars in an
average month Access subject matter experts, government representatives,
industry colleagues, and a variety of guest speakers
 Influence advocacy efforts that reach regulators andlawmakers with the voices of more than 3,000 members

If you would like to explore membership opportunities, including extending
these beneﬁts to an unlimited number of employees, contact join@accj.or.jp
for more details or call your ACCJ membership representative.

PRESIDENT

Jenifer Rogers

5

Asurion Japan Holdings G.K.
CHAIR

PUBLISHER

It’s Only aPaper Moon

7

D&I

Might the dream of a digital society finallybe hanging over Japan?

Eriko AsaiPRESIDENT

A key driver ofdigital transformation

GE Japan
TREASURER

8

Ryann Thomas
PwC Tax JapanADVOCACY

Japan Digital
Agenda 2030

14

Chief of Staff

Big moves to restore digital competitivenessand productivity

VICE PRESIDENTS

Yoko Furuyama (Kansai) P&G Japan G.K.

MANAGEMENT

A strategic partner for yourorganization and boost for D&I

Deborah Hayden Finsbury
Amy Jackson Pharmaceutical Research and Manufacturersof America (PhRMA)
Robert W. Roche (Chubu) Oak Lawn Marketing, Inc.
Eric W. Sedlak K&L Gates Gaikokuho Joint Enterprise
Yoshitaka Sugihara Netflix G.K.
Dave West Cisco Systems G.K.
GOVERNORS

Andrew J. Conrad Aflac
James C. Feliciano AbbVie
Harry A. Hill Better-U, Inc.
Mark Hosang (Chubu) Randstad K.K.
Douglas L. Hymas Fusion Systems Group
Tad Johnson Pratt & Whitney Aftermarket Japan KK
Saori Kanno REVLON K.K.
Mari Matthews Google Japan G.K.
Nancy L. Ngou EY Strategy & Consulting Co., Ltd.
Victor Osumi Delta Air Lines, Inc.
Frank Packard Synnovate Capital Partners
William J. Swinton Temple University, Japan Campus
Simone Thomsen (Kansai) Eli Lilly Japan K.K.
Megumi Tsukamoto Caterpillar Japan LLC

36

Firmware Update

SPECIAL ADVISOR

Christopher J. LaFleur
McLarty Associates

Government and business must digitize
to move Japan forward

PRESIDENTS EMERITI

Debbie Howard (2004–05)
Charles D. Lake II (2006–07)
Allan D. Smith (2008)
Thomas W. Whitson (2009–10)
Michael J. Alfant (2011–12)

16

CHAIRMAN EMERITUS

Kumi Sato

EVENT

Hitting the Ballout of the Park

24

Women in the businessof sports

Cosmo Public Relations Corporation

HEALTHCARE

Beat Breast Cancer
Like a Boss

Looking ahead to a special ACCJ
event with Kathy Matsui and Ali Rogin

ACCJ EXECUTIVE STAFF

Laura Younger
Executive Director

25

THE ACCJ JOURNAL

Christopher Bryan Jones

The American Chamber of Commerce in Japan

30

Masonic 39 MT Bldg. 10F, 2-4-5 Azabudai
Minato-ku, Tokyo, Japan 106-0041

Disclaimer: The ACCJ will not accept liability for any damages caused by thecontents of The ACCJ Journal, including, but not limited to, any omissions, errors,
facts, or false statements. Opinions or advice expressed in the The ACCJ Journal
are not necessarily those of the ACCJ.

HR

Developing
Digital Talent

How three big moves could transform
Japan’s educational and business systems

Tel: 03-3433-5381 n Fax: 03-3433-8454 n www.accj.or.jp
The ACCJ is an independent membership organization not affiliated with any
government or other chamber of commerce. The ACCJ is a member of the Asia–
Pacific Council of American Chambers and values its relationships with Japanese,
American, and other nations’ business organizations.

Innovating
through Adversity

26

Three fundamental concepts forstrengthening Japan’s medical system

Publisher and Editor-in-Chief
To advertise or subscribe: comms@accj.or.jp

HEALTHCARE

46

TECH

Classroom
Disconnect

The true reason for Japan’s criticaldeveloper shortage

HEALTHCARE

Pharmacy in
the CloudMediFrame aims to streamline anddigitize Japan’s drug data

42

LAW

Sunset Seal

Will pandemic and digital agenda
end the hanko?

Still out there making surepeople have enough food.

Thank you.
SECOND HARVEST JAPANwww.2hj.org

PUBLISHER

By C Bryan Jones

It’s Only aPaper Moon

5

Might the dream of a digital society finally be hanging over Japan?

I’ve been a proponent of paperless for a long time.
Going back some 20 years, I was already looking forways to shift to an all-digital workflow and to rid mystudio of the piles of paper that inevitably cluttered
my workspace. I was probably ahead of the curve inthis respect, but it prepared me well for today’s world—at least the world outside Japan. Here at home, a life
without paper sometimes seems make-believe. I was
reminded of this as I was editing and designing thisissue—but more on that later.
A shift is clearly underway—as someone who has
lived in Japan for 25 years, I can feel it even if progress
can be hard to see—and efforts to digitize the nation
are gaining support. This issue of The ACCJ Journal is
all about this needed transformation and the attempts

We were inspired by the broad reach of the 10-yearplan to craft an entire issue of The ACCJ Journal aroundthe theme. On the following pages you will find deep
dives into a range of topics, including: Delivering government services digitally Eliminating the use of paper and hanko
 Leveraging the cloud for healthcare

C Bryan Jones
Publisher andeditor-in-chief Developing a digital-savvy workforce

to make it happen. With support from the top, in theform of Japanese Prime Minister Yoshihide Suga’s
establishment of a Digital Agency and Minister for
Administrative Reform and Regulatory Reform Taro
Kono’s push to eliminate hanko and faxes, it feels likeour journey over the cardboard sea has begun.

The last of these is especially interesting to me asa parent and as someone who, thanks to lucky chanceand forward-thinking great grandparents, beganlearning to use a computer and write programs at theage of 10. (That was almost four decades ago, but who’s
counting?) Given the ubiquity of computers today, I’m
sometimes surprised at how few people know how
to fully utilize them. But that largely comes down to
education and what we teach our children. Making
hands-on instruction with technology and programming part of the core curriculum really is necessary
if we are to prosper in what will no doubt be a digital
future, and I’m very happy that the Japanese government is doing just that through a three-year rollout(2020–22) that requires programming courses to betaught at all levels of primary and secondary school.

Change across the BoardMy Paper, I Mean Number

But the transformation is about much more than justgetting rid of paper. Education, healthcare, manufacturing, financial services, and infrastructure are
all areas that will need to evolve for Japan to remain
vibrant and competitive in the decades to come.
Last summer, the American Chamber of Commercein Japan (ACCJ) set out to create a road map to help
guide the government and businesses as they embark
on digital transformation. The ACCJ New Digital
Task Force, led by Chair James Miller, head of public
policy at Amazon Web Services Japan, and Senior
Advisor Jim Foster, who provides an overview of the
project starting on page 8, worked with McKinsey &Company to produce the Japan Digital Agenda 2030.
The 140-page report, published in February, outlines
11 big moves that Japan should make to restore digitalcompetitiveness and productivity.

I mentioned in the opening that I was reminded ofjust how paperful Japan still is while working on thisissue. That reminder came in the form of the noticethat the My Number card that I had applied for online
was ready. That I would need to visit city hall to receive
an official ID was expected. That the notification card
would be accompanied by six pieces of paper (every
speck of white space covered in dense type) and two
forms that still needed to be filled out was not. What
was the point of applying online, I asked myself, if somuch paperwork was still involved? It was a timely signthat even Japan’s efforts to digitize remain awash in
paper. But it is a step forward, and some of the services
that are enabled by the card will make life easier andsomewhat more paperless. We’re making progress.
I hope you find many ideas, inspiration, and hope inthis month’s focus on the Japan Digital Agenda 2030. n

A life without paper sometimes
seems make-believe.

cjones@accj.or.jp

Listen to this story:
accj.or.jp/sound

THE ACCJ JOURNAL • APRIL 2021

PRESIDENT

By Jenifer Rogers

D&I

7

A key driver of digital transformationW

hen we hear the term “digital transformation,” our minds most often jump
to technological solutions. We equate
increased adoption of technology with the promiseof greater productivity, economic growth, and competitive advantage.
But when we look at the barriers to digital transformation, it’s human and cultural attitudes to change thatmost often get in the way of realizing our goals. The factof an improved technology’s existence is no guarantee
of its success, if people and business cultures aren’t
ready to adopt it.

Making the CaseAs a community of business leaders, the American
Chamber of Commerce in Japan (ACCJ) is uniquely
positioned to promote not just the enabling technologies of change but the shift in perceptions andorganizational cultures required to embrace change.

continuous beta are the norm. They are what drive
an entire ecosystem of investment and innovation.
Risk is embedded in the business model as an essential ingredient for inventing new products, services,and entire markets. In some sense, you could saythat acceptance of risk acts like the grit in the oysterthat leads to the formation of a pearl.

Embrace Diversity
A greater appetite for change and innovation in
Japanese business culture is not only a prerequisite for
digital transformation, but also the key to the workforce challenges facing Japan. If younger employees—
especially so-called digital natives—feel more acceptance in proposing new ideas and challenging thestatus quo, change will accelerate along with productivity and growth.
Shifting corporate cultures and values is no small
task but, here again, the ACCJ has been and continues

Jenifer Rogers
ACCJ President

A greater appetite for change and innovation in Japanese businessculture is not only a prerequisite for digital transformation, but also
the key to the workforce challenges facing Japan.
Through our various committees, we can advance thedigital transformation cause from multiple perspectives: Technology
 Human resources
 Legal Investment
 Banking and finance Workplace productivity
But in Japan, where businesses tend to berelatively risk averse, it’s our actions as leaders ofbusinesses and influencers of corporate culture thatwill have the greatest impact.
As leaders, we must foster cultures that accept
the risk that comes with change. We need to create
an environment that makes it okay to try new approaches—and sometimes to learn through failure.
We need to shift the focus from recognizing andrewarding those who successfully execute a provenplan to also make room for those who step up withnew ideas for innovation and less certain outcomes.
In Silicon Valley, ideas such as pivoting a businessmidstream, launching a minimum viable product, andto be in a unique position to drive change. Because
alongside digital transformation we’re focused ondiversity and inclusion (D&I). And D&I provides aneffective engine for cultural transformation.
At its heart, D&I is about placing equal value on
all voices and actively seeking out diversity not only ingender, race, and sexual orientation, but in experience,seniority, background, and perspective.
If a company embraces and internalizes this broad
definition of D&I, it will generate a more dynamic
environment for digital transformation. By grounding
itself in hearing and valuing all voices, that company
will have laid the foundation for an innovation pipeline.
And, in turn, it will have shifted from focusing on
preserving what already exists to focusing on creating
something new.
I believe that our members are proactive in thearea of promoting D&I at a time when Japanese companies are also focusing and working on increasing
their D&I. The ACCJ will need to continue its leadership in this area to share the message that embracing
D&I is positive as a driver for the growth of not only
digitalization but of the Japanese economy and workforce as a whole. n

THE ACCJ JOURNAL • APRIL 2021

ADVOCACY

By Jim Foster

Japan Digital
Agenda 2030

8

Big moves to restore digital competitiveness and productivity

A
Jim Foster
Senior advisor
ACCJ New Digital
Agenda Task Force

Download the report:
accj.or.jp/japan-digitalagenda-2030

s the world enters a new and transformative
era—one in which companies and governments rapidly embrace digital technologies
and ways of working—Japan faces a strategic imperative: reigniting productivity and growth throughdigital transformation.
In 2009, the American Chamber of Commerce inJapan (ACCJ) published a white paper entitled Achieving the Full Potential of the Internet Economy in Japan.
The study detailed a range of recommendations acrossJapan’s still-nascent internet economy, including changes in government information and communications
technology (ICT) procurement practices, measures
to protect privacy and intellectual property, steps topromote online commerce and digital government, as
well as the digitalization and sharing of healthcare data
under appropriate safeguards.

Listen to this story:
accj.or.jp/sound

THE ACCJ JOURNAL • APRIL 2021

A decade later, many of these issues remain and areclosely tied to Japan’s declining productivity and weakgrowth in key sectors. During the same time frame,
elsewhere in the world, many of Japan’s competitors,
such as China, India, and South Korea, are moving
ahead rapidly to ramp up their digital economies. To
keep up, Japanese industry and the government needto fully embrace digitalization across the economy—
from manufacturing, healthcare, and finance to theretail sector and the delivery of government services.
In July 2020, the ACCJ leadership launched the
New Digital Agenda Task Force to oversee the researchand drafting of a successor to the 2009 study. The goal
was to lay out the issues facing Japan this decade as
the country works to digitize its economy and society.
After careful consideration of proposals from leadinginternational consulting firms with deep expertise in
the digital policy space, the task force chose McKinsey& Company as a partner in the project. The timing of
the research fortuitously coincided with the September 2020 start of a new Japanese administration, led
by Prime Minister Yoshihide Suga, which has madedigital transformation its signature initiative.

The Road Map
The new ACCJ study, published in February andentitled Japan Digital Agenda 2030, identifies the big
moves that Japan needs to take over the next 10 years,
highlighting the underlying technology-use cases andsetting out the digital transformation barriers andenablers to achieving them. The analysis details:
 How Japan’s education system and corporate
sector can do more to support the creation of abroader base of digital talent Ways in which Japanese industry and government can digitalize their operations
 The respective roles startups and existing system integrators can play in accelerating digitaltransformation
The analysis is supported by quantitative andqualitative surveys of US and Japanese business andpolicy leaders, which benchmark progress over the
past decade, as well as in-depth interviews with over
100 government, business, and technology leaders inand outside Japan. More than 200 data sources wereconsulted to gather critical inputs across a range ofindustries, topics, and technologies.

The Challenge
In 2020, Japan is the world’s third-largest economy,
underpinned by its leadership in sectors such as industrial and automotive manufacturing, high-quality
infrastructure, as well as a professional culture infusedwith a strong work ethic and deep experience in thecrafting and delivery of high-quality goods and services.
Yet, over the past decade, productivity has gonefrom stagnant to declining—a course that needs to bereversed if Japan is to remain globally competitive.
On the rise are competing nations making significant productivity gains through the development oftechnical talent and the application of proven digitaltechnologies that include cloud-based infrastructureand software, mobile devices and apps, machine learning and deep learning, and many other developments.
Japan’s relatively low digital competence is instark and unexpected contrast with its economic
strength. In 2020, the country ranked 27th in digitalcompetitiveness and 22nd in digital talent. It registered only single-digit penetration in areas such as
e-commerce, mobile banking, and digital government service usage. And of the global total, Japanhas produced just five of the more than 500 unicorn
startups—those with a private or public valuation of
more than $1 billion. These metrics fall far short ofJapan’s full potential.

Big Moves for Japan

1
2

Develop a deep bench of world-class talent literate
in cloud tools, software development, artificial
intelligence and other digital technologies andways of working.
Drive broad-scale upskilling across the workforce
by shifting from traditional to adaptive learning tobuild digitally relevant skill sets.

3

Drive end-to-end digitization of education sector
from preschool to tertiary education with solutions for school and educator efficiency, as well as
student access.

4

Industrial manufacturing to build on hardware,robotics, and automotive endowments by leapfrogging with software, machine learning anddeep learning.

5

Retail to capitalize on shifting customer trends
by delivering digital omnichannel experiences.

6

Healthcare to lead globally on next-generation personalized, remote solutions targeting elderly care.

7

Financial services providers to build mobile andbroad accessibility solutions by leveraging cloudinfrastructure and open network.

8

Government to define a vision and bold goals toprovide digital citizen and business services.

9

Government and industry collaborate to scale
smart cities, building on Japan’s public infrastructure endowment.

10

Startup ecosystem to develop a concept-to-exit
formula that produces globally scalable ventures.

11

Systems integrators and technology providers to
help their clients accelerate transformation bybuilding talent in the core and leveraging global
best practices.

THE ACCJ JOURNAL • APRIL 2021

9

Standing in the way of digitization are some self-imposedconstraints:

10 A high-context culture with a risk-averse mindset
 Senior leaders focused on company longevity rather
than productivity
 Limited exposure of some industries domestically to
global competitors
 Continuing gridlock between a private sector waiting for
digital endorsement by government, and a government
waiting for the private sector to forge ahead A deficit of more than half a million software-related engineers, who are needed to build the software applications
that will take the country forward
This situation is confounding, because the technologies tobuild a digital future are available in the cloud today, accessible
with a few clicks. It has never been simpler to hire talent fromaround the globe or to grow talent locally by leveraging the large
number of online courses available.
But meaningful change will not occur unless Japan’s government and business leadership make a definitive and far-reachingcommitment to digitization over the coming 10 years. Absent
such a change, current gross domestic product (GDP) growthand productivity-rate trajectories suggest that economies such as
India and Germany will overtake Japan in the 2030s.

Industry Transformation: The Japan Digital Agenda 2030 calls
for leapfrog moves by the four core industry sectors that account fornearly 50 percent of Japan’s GDP: industrial and automotive manufacturing, wholesale and retail, healthcare, and financial services.
These sectors have single-digit digital penetration metrics
in areas such as the number of advanced digital manufacturing
facilities and the percentage of e-commerce penetration. The
Japan Digital Agenda 2030 draws on examples from more than
100 proven-use cases to illustrate how Japanese firms can leverage cloud-based applications, machine learning, deep learning,
e-commerce technologies, the Internet of Things, 5G, cybersecurity, and other digital technologies to drive an increase inrevenues and a reduction in costs and expenses. With strong
policy leadership and targeted investments, by 2030 Japanesebusiness could deliver: An artificial intelligence-enabled industrial sector
 Digital healthcare at scale for the elderly population
 Truly omnichannel retail experiences A modern, streamlined mobile banking system facilitated by
globally interoperable frictionless payment processes
Digital Government and Infrastructure: But the private sector
cannot do this alone. Sustainable progress in economy-wide digitalization requires a strategic commitment by central and local
governments to drive connectivity, cybersecurity, and the avail-Meaningful change will not occur unless Japan’s government and businessleadership make a definitive and far-reaching commitment to digitization
over the coming 10 years.
The Opportunity
The data and analysis presented in Japan Digital Agenda 2030
confirms that incremental changes will not close the digitalcompetitiveness gap. Japan must undertake a transformative
set of reforms that we call big moves—concerted efforts bymajor industries and stakeholders to reinvent their businesses,
capitalize on emerging trends, and utilize digital technology
across the value chain. The 11 big moves identified in the paper
are built around four themes.
Digital Talent: Japan needs a bold plan to more than triple thebench of digital talent, focusing disproportionately on softwaredevelopers, data engineers, data scientists, machine learning
engineers, and other types of new jobs.
This would take Japan in a different direction from the continued deepening of hardware talent, which is Japan’s acknowledged forte and has underpinned its economy to date. Instead,what is required is a mindset shift that values software expertiseas highly as traditionally prized hardware or non-software
engineering disciplines.
Other areas requiring attention are the upskilling of the current
workforce and the digitization of the education sector, throughgreater investment in teachers and technology.

THE ACCJ JOURNAL • APRIL 2021

ability of cloud resources to support the new wave of applications.
The starting point—and an opportunity for an early harvest—
is the rapid deployment of digital applications in the public sector
to digitize the services it provides to citizens and businesses, doing
away with lengthy processes that require physical visits, paper,
seals, faxes, and other analog methods.
Longer term, Japan needs to take its already world-beating
infrastructure to the next level through private–public partnerships to roll out smart-city technologies, such as 3D-printing
for home and business construction, cloud-based systems for
integrated traffic management, and state-of-the-art disaster
preparedness and management systems.
Economic Renewal: Japan can take pride in having more than halfof the world’s oldest companies. But it also needs to find a way to drive
greater economic renewal and innovation in the corporate area.
The answer is greater investment and focus on its stillsmall startup sector. Japan needs to grow a new generation ofdigital entrepreneurs ready to boldly address global customer
problems with software, and to move decisively beyond its currently inward, hardware-centric focus. Reforms are needed toencourage founders, attract talent, and enable startups to scale
globally. A related key to economic renewal involves the trans-

Estimated Impact of Big Moves on Japan’s FDP till 2030 1
GDP

Value at stakeIndustry-wide gross domestic product (GDP) and economic value at stake from digitalization
Trillions of Japanese yen, 2018

Industrial
manufacturing

47

39

Healthcare

Financialservices

Other

23

7–13

5–10

75

Government
and education

9–15

11–17

114

Retail% increase overcurrent base GDP

2

4–5 2

4–6

11–15

2–4

10–19

25–39

219

1. Contigent on timeline for use case execution and resource mobilization.

Source: Cabinet Office of Japan,

2. Refers to direct effect on GDP; indirect effect is not included in government and education value at stake.

formation, from a problem to a solution, of existing Japanesesystems integrators.
These large but often complacent IT giants account for
more than 60 percent of Japanese IT spend and 70 percent of
IT talent. They need to be encouraged to actively update andexpand their technology offerings, and to assist their clients inmoving rapidly to the cloud, from their present expensive-tooperate and vulnerable legacy on-premises systems.
These giants also must provide their clients with tailoredbusiness solutions, not just a menu of technology options.

US–Japan Partnership on the Digital Economy
The final recommendation in the 2009 white paper calls for thecreation of a process through which the US and Japanese governments, and their respective private sectors, might work together
in driving the many proposals found in the white paper.
It is proposed that this be done through a US–Japan Dialogue
on the Future of the Internet Economy, with government, private
sector, and academic participation. The recommendation wasdeveloped with the express intention of avoiding, in the internet
space, much of the friction that has characterized the US–Japaneconomic and trade relationship since the early 1970s.
As is stated in the 2009 ACCJ Internet Economy White Paper:“Collaboration on the internet economy escapes the zero-sum
dynamic of many trade talks and can help nurture the innovationthat is essential to the future of our economies. This dialogue

10–16

McKinsey Global Institutewould break new ground for the United States and Japan, since
the emphasis would be on mutual learning, exploring areasof convergence, and transferring agreement between the twocountries into a broader regional and global consensus.”
The proposal has struck a responsive chord in governmentand business circles in both countries, resulting in the November 10, 2010, formal launch of the US–Japan Policy Cooperation
Dialogue on the Internet Economy.
Both governments participated and were led by the US Department of State and the Japanese Ministry of Internal Affairs andCommunications. The business communities were represented by
the ACCJ and Keidanren (the Japan Business Federation). Over the
past decade, the Cooperation Dialogue has been convened 11 times,
most recently on September 25, 2020.
The habits of cooperation nurtured by the Cooperation Dialogue
over the years resulted in the announcement on October 7, 2019, of
the US–Japan Digital Trade Agreement. The agreement includes:
 Inter alia provisions prohibiting custom duties and discriminatory taxes on digital products
 A commitment to ensuring the bilateral free flow of data,
including financial services
 Mutual recognition of digital signatures
 Prohibition of localization limiting where data can be stored Protection against forced disclosure of proprietary sourcecode algorithms

THE ACCJ JOURNAL • APRIL 2021

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13

Literature title

As the Dialogue continues to mature, discussions
increasingly are likely move from bilateral concerns
to developing shared positions in international fora,
such as the Organisation for Economic Co-operation
and Development, and in coordinating positions visà-vis third parties, such as the European Union (EU)and China.
For example, the Statement on Innovation and
Digitalization, released at the Osaka G-20 meeting in
2019, highlighted philosophical differences between
the US/Japan and EU positions with respect to rulemaking for the digital economy.
Europeans favor a larger government role ininternet governance, while the US and Japan support
more market-driven solutions.
This partnership between the two countries onshared international concerns is vitally important
to ensuring the future growth and innovation of a
global digital economy from which both countries
can benefit.
Leveraging the cooperation and progress thathave been spurred on by the Cooperation Dialogue—
and with reference to the data and analysis foundin the Japan Digital Agenda 2030—government andbusiness must set the goal of digital transformation
during this decade as a top national priority.

Japan Digital
Agenda 2030
Big moves to restore digital competitiveness and productivity

February 2021

Next Steps
The ACCJ’s objective in researching and drafting theJapan Digital Agenda 2030 is to contribute positively,
as a partner with Japan, in introducing and promoting
the greater utilization of new digital technologies andbusiness models. Over the past decade, our companies
have become an increasingly important part of Japan’s
digital economy—and with that comes responsibility.
We plan to use the data and analysis presented inthis study as a platform and road map for a series of
ACCJ policy papers that outline changes in government regulations and corporate practices that we see
as essential to unlocking the full benefits of digitally
driven innovation in key economic sectors coveredin the Japan Digital Agenda 2030, such as manufacturing, healthcare, retail, financial services, and theprovision of government services.
We also take seriously the responsibility of ourcompanies to support the development of the digital
economy in Japan by considering ways to help develop
digital talent locally, engage proactively with Japan’s
startup community, and better cooperate with Japanese
corporate counterparts and the public on sharedcybersecurity and data privacy concerns. n

Read more about big moves in this issue:
Developing digital talent—pages 30–35
Digital government—pages 36–41
Hanko and digital signatures—pages 42–43

The ACCJ would like to thank the 16 member
companies that provided financial support forthis project: Adobe KK
 Aflac Amazon Japan G.K.
 Amazon Web Services
 Apple Inc.
 AT&T Cisco Systems G.K.
 Eli Lilly Japan K.K.
 Facebook Japan Google Japan G.K.
 Intel Corporation
 IBM Japan, Ltd.
 Microsoft Japan Company, Ltd.
 salesforce.com Co., Ltd.
 Palo Alto Networks
 Verizon
Not surprisingly, they are all companies that are on the
cutting edge of development in the digital economy in Japanand globally. We also extend special thanks to our partner inthis important project, McKinsey & Company, Inc. Japan.
Their deep knowledge and connections in Japan, international
network of experts, strong grasp of digital trends and technology, and very generous in-kind contribution to the staffing and management of this project made it all possible.

THE ACCJ JOURNAL • APRIL 2021

MANAGEMENTBy Tyler Parris

Chief of Staff

14

A strategic partner for your organization and boost for D&I

W
Tyler Parris
Founder
Tyler Parris,
Coaching LLC

Nuala Anne Connolly
Former chief of staff,
AIG Japan Holdings KK

Wendy Cheong
Former chief of staff tothe president, Moody’s
Investors Service

hile the chief executive officer (CEO) may
be the guiding hand of a company—andthe first to receive praise or blame—they
can’t do it all alone. The demands of today’s businessworld are more than any one person can handle, given
the massive flows of information, complex intersocial
dynamics, and diverse skill sets required for a company
to succeed. That’s why many are turning to the servicesof a chief of staff (CoS).
A CoS is a business generalist, usually with somedepth in one or more areas of expertise, who helps a
CEO and leadership team (the “staff ” in chief of staff): Set and achieve strategic objectives
 Make the highest and best use of their time
 Make and execute great decisions
 Execute and oversee work that has no clear
departmental owner Develop and retain good people

What makes a good CoS is highly contextual,
though, and usually means a lot more than just being abusiness generalist. An Internet of Things (IoT) startup,
for example, might require someone who can bridge
software, hardware, and science teams with businessteams such as marketing, sales, and finance to facilitate
complex, cross-functional discussions about go-to-market decisions, or the best way to structure the organization to achieve goals. A private equity or venture capital
firm is much more likely to look for deep financial andbusiness acumen.
Often confused with an executive assistant and achief operating officer (COO), almost all chiefs of staff
fall somewhere in between, and might carry out partsof those other roles while also leading or supporting: Strategy and planning Operations or execution
 Communications
 Human capital Finance Special projects

chiefofstaff.expert
Let’s take a closer look at the role a chief of staff
can play in each of these areas.

Strategy and Planning
Listen to this story:
accj.or.jp/sound

A CoS proactively brings together the right stakeholders to have the right conversations about where thecompany is headed, assess organizational readiness,

THE ACCJ JOURNAL • APRIL 2021

generate solutions where there are gaps, develop anditerate plans, and help drive execution. Currently, chiefsof staff are leading their teams through the transition,
remotely, of these processes.

Operations or Execution
In some organizations, a CoS is a de facto chief operating officer. They concentrate on the internallyfocused people, processes, and technology issues thatenable the organization to balance speed, agility, andefficiency. In organizations that have a COO, the CoS
parachutes into problem areas to fix broken processes,
people, or technology issues in support of the COO, or
where the COO doesn’t specifically own them. A CoS
also is more likely to work on outward-facing matters,such as investor, press, or regulatory relations.

Communications
Whether on their own or in partnership with acommunications team, a CoS helps the CEO andleadership team deliver consistent messaging across avariety of audiences, such as media, investors, donors,
boards, and employees.
They do this through different types of communications, such as crisis and reputation management,social media and community engagement, all-hands
meetings and emails, and departmental town halls.
A CoS might even manage an executive’s leadershipbrand beyond the company, coordinating their philanthropic or civic engagement.

Human Capital
Whether on their own or in conjunction with a headof human resources, a CoS evaluates and addresses
needs, strategies, and solutions related to people
gaps, organization design and structure, and talentbrand.

FinanceA CoS will contribute to business reviews, strategy,
budgets, and operational planning. They might evenoversee budgets or profit-and-loss statements themselves, although this is less common.

Special Projects
Does a merger, acquisition, spinoff, or office move
pencil out? What would a strategic shift in X direction look like for us?
Questions such as these require inputs fromfinance, legal, and other business teams that are15heads-down delivering on today’s priorities but might not cleanly
fit under the purview of one of those departments. Nor might
the CEO want them distracted with such questions more than isnecessary, because they would be kept from fulfilling their highest priorities.

er that meant putting diversity goals into hiring for every role or
making sure restrooms have period-care products, or otherwise
making the organization a welcoming place for as many people
as possible. If the leadership does not value these things, it canbe tough for a CoS to make much of a difference in these areas.

Diversity, Equity, and Inclusion

Path to the Top

If the leadership at the top of an organization values diversity,
equity, and inclusion, the CoS can be a great conduit for driving it.
First, a CoS can encourage diversity of thought by being asafeguard against groupthink for the senior leadership team.
They have the relationships and political capital in the organization that enable them serve as an information broker. That’s
important because it enables the CoS to bridge all the agendas
in the room—both spoken and unspoken—and, at the appropriate times, the sources of resistance that may surface with dissenting points of view. This could mean calling on someone whowants to give what might be an unpopular viewpoint, or it might
be raising that view­point onbehalf of others if it could
be politically inexpedientfor them to do so.
The CoS can use skillsof facilitative leadership toshut down dominators andelicit input from quieter contributors in the room. They can also
make sure that underrepresented groups are invited to the meeting and present at the discussion. All this ensures that issues aredealt with thoughtfully. In these ways, the CoS plays an important role in diversity and inclusion.
As Wendy Cheong, former chief of staff to the president at
Moody’s Investors Service, explained: “People from diverse backgrounds often have experience in, and sensitivity to, communicating with people of varied ethnic and social groups, which makes
them particularly suitable to the CoS role. Organizations shouldtake advantage of this by putting such people in a CoS role to help
promote the benefits of diversity of perspectives at the executive
leadership level.”A CoS can also drive culture change by first defining andarticulating the values for the company—if they haven’t alreadybeen defined and articulated—and then backing them up withconcrete action. A CoS in New York City real estate recently did
just that, helping her leader articulate the organization’s corevalues and then holding people at all levels accountable, wheth-

It has become a poorly kept secret that the CoS role can be a fast
track to the executive ranks. Some companies use the role as aleadership development program for those with high potential.
Anecdotally, the role is one way for people underrepresented in
C-suite positions, namely women and minorities, to gain accessto those top roles. While stories abound, I launched a researchstream on this question in 2019 to find out if the stories were supported by data. I have not yet proven or disproven the premise.
Nuala Anne Connolly, former chief of staff at AIG Japan
Holdings KK, explained: “What is clear is that a person will not be
successful without the right skills, regardless of any dimensionof diversity they represent.
More importantly, talent
who demonstrate in an organization that they can get
things done should be considered for this role. And when
they can get things done, andeffectively manage a host of relationships at all levels of the organization, then a CEO can feel confident they will deliver success.”
If you’re a mid-career professional seeking a CoS position,
earning this role involves translating your current and past experience to the specific needs of the company you want to work for.
In other words, don’t just read the above areas and say, yes, I havedone some of those, so I’m a CoS. Study your target organization.
If they’re an IoT startup, you might want to think about—andbe ready to talk about—how you’ll not just coordinate crossfunctional work but also keep up in technical conversations, andhow you’ll bridge technical and business teams as well as manage
complex supply chain issues. If you can’t, don’t apply for the role.
To have the best chance of finding a position, understand
why there is so much variety in the chief of staff role from one
instance to the next. Look up McKinsey’s CoS archetypes or Dan
Ciampa’s three levels of CoS. Know which type of CoS role you’reseeking and target your search around that one.
If you’re not ready to make the leap yet, think about—and ask
for—the kinds of experiences or projects that can get you ready. n“People from diverse backgrounds often
have experience … which makes them
particularly suitable to the CoS role.”

THE ACCJ JOURNAL • APRIL 2021

EVENT

By Andy Hughes

Hitting the Ballout of the Park

16

Women in the business of sports

W

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Photo: Christopher Penler/123RF.COM

accj.or.jp/soundith recent examples of women achieving
high-profile positions in Major League
Baseball (MLB), notably Kim Ng as generalmanager of the Miami Marlins and Alyssa Nakken
as a full-time assistant coach with the San Francisco
Giants, there is hope that more women will have theopportunity to take on leadership roles in sports thathave traditionally been dominated by men.
On February 24, the American Chamber of Commerce (ACCJ) Women in Business Committee, together
with the Olympics and Sports Business Committee,
hosted a candid conversation with Sami Kawakami,
Jean Afterman, and Raquel Ferreira, three of thehighest-ranking women in the MLB and trailblazers
in their own right. Kawakami is managing directorof MLB Japan, Afterman is senior vice president andassistant manager of the New York Yankees, andFerreira is executive vice president and assistantgeneral manager of the Boston Red Sox.

THE ACCJ JOURNAL • APRIL 2021

During the discussion, they addressed the advancement of gender parity in the business of sports
and shared how they broke through and made their
voices heard.

Perception Is Key
Not so long ago, having women in leadership rolesin the industry was almost unheard of. In such a maledominated business, how do women push aside the
obstacles and consolidate themselves as equals, judged
solely on their ability to do their jobs rather than on
their gender?
“I think the biggest barrier is that there are still alot of people who have gender stereotypes, or have theperception that men are superior to women—especially in the baseball industry in Asia,” Kawakami said.
“However, I have seen some progress over this pastseven or eight years. When I first started to work in
baseball, about 17 years ago, there were no womenSami Kawakami
Managing director, MLB Japan
Having worked for the MLB in Tokyo since 2004, Kawakami became managing director of Japan in 2019.
She has succeeded in creating partnerships with more than 50 companies, establishing experimental
marketing programs that have brought an MLB experience to more than 285,000 participants in Japan.
She has also taken a lead role in the execution of more than 30 World Baseball Classic games played in
the country since 2006, as well as MLB games such as Opening Series and Japan All-Star Series games.

in either the front-office side or game-operations side of baseballin Asia, as far as I know—except for the one female delegation in
China. All other women I met were either secretaries for a maleexecutive or in an office administration role.”
What helped her get over the barrier, Ferreira said, was having
a support system in place at the Red Sox. “Afterman and I haveboth spoken on the fact that our two organizations, the Red Sox
and the Yankees, are the only two in the league that have had two
female assistant general managers. They provided that support
system and believed in us. You need a support system aroundyou, with people who believe in you, because not everyone will.
You have to believe in yourself. You have to surround yourself
with people whose opinions you trust.”

whether I’m a man or a woman and Japanese or not. Since then,everyone’s attitude towards me changed. I think trying to change
people’s perception is the key.”

Profile Raised
The number of women in baseball is growing, and with thatcomes increased visibility in the public eye. When the cameras
capture Allysa Nakken in the dugout for the San Francisco Giants,
it projects a message to the viewers—one that signifies to young
girls that it is not impossible for a woman to be in that position.
And why should it be?
But it’s not only the women in front of the camera who aremaking a difference for MLB teams. It’s also those behind the“You need a support system around you, with people who believe
in you, because not everyone will. You have to believe in yourself.”
Afterman explained: “It’s still a man’s world in the United States.
You must be bigger, better, faster, stronger—to do the same job as a
man—to be paid 72 cents for every dollar a man gets paid. You still
have to have that something extra, and you have to break throughthat brick wall and just kick down the door and do the work.”
Kawakami recalled the event that was a turning point in her
rise to managing director of MLB Japan.
“In 2006, I was assigned to work for some Asian national
teams for the first World Baseball Classic as a team coordinator.
However, one of the teams was not happy about working with me,
because I am a woman, and maybe in part because I am Japanese,”she explained. “I decided to arrange a private meeting with thehead of the delegation and address all the issues. I made it clear to
him that I was just trying to do my job. It doesn’t make any difference

scenes, such as strength and conditioning coaches and development
coordinators. “There are people working in baseball operations who
might not be in visible baseball operations roles. They’re not scouts,
they’re not coaches, they’re not managers, but they still add valueand have impact on a team. Baseball doesn’t end between the whitelines,” Ferreira said.
Although their numbers are growing, women still accountfor a minute percentage of MLB staff. With very few women
working in the industry, they pride themselves on supporting
each other and providing mentorship. It’s something Kawakami,
Afterman, and Ferreira have carried with them growing up, as
all three said they are especially thankful to their parents forbeing supportive and reminding them to identify and embrace
their unique strengths as women.

Raquel Ferreira
Executive vice president and assistant general manager, Boston Red Sox
Ferreira marked her 22nd year with the Boston Red Sox in 2020 and is only the fourth woman to holdthe title of assistant general manager in a Major League Baseball operations department. In 2019, she
was honored with the Special Achievement Award from the Boston chapter of the Baseball Writers’
Association of America. She was also one of only seven nominees for the WISE 2020 Women of theYear Award, which is presented for the ongoing commitment to the professional development andadvancement of women.

THE ACCJ JOURNAL • APRIL 2021

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Jean Afterman
Senior vice president and assistant general manager, New York Yankees
Growing up a keen San Francisco Giants fan, Afterman was named one of 2019’s Most Notable Womenin the Business of Sports by Crain’s New York Business and received Baseball America magazine’s 2019
Trailblazer of the Year Award. With a business and legal background, Afterman was instrumental inrevising the rules that restricted Japanese players from moving to the MLB. She has handled businessand legal affairs for international baseball clients, including Hideo Nomo, Hideki Irabu, Masato Yoshii,
Alfonso Soriano, and more than 30 Major and Minor League players.

“You need that support system. People aren’t islands. We’revery social creatures and nobody likes to feel alone, like they are
the only one. We have all had the experience of walking into a
meeting and you’re the only woman in the room. You have to support each other through those things. Otherwise, it can wear you
down; it can really kind of destroy your spirit,” Afterman said.

Falling into a Role
Ferreira got her start at the Red Sox as an administrative assistant.
It wasn’t her dream job, but she knew that she wanted to work in
sports. Her parents taught her to pursue a career in a field that she
would want to stick with and to work hard. Eventually, they said,
that hard work would surely be noticed.
“Everybody defines success differently. Sometimes it meansreaching a goal, accomplishing a task, or accomplishing what you
set out to do in a particular year,” she said. “Whether it’s success

Afterman’s path was less direct. Even though she grew up anavid baseball fan, she fell into the role after being involved in a
vastly different business.
Initially, she had worked in feature film production, in the
1980s. But when she became aware of the glass ceiling for womenin that industry at the time, she opted to elevate her game, went tolaw school, and then moved into civil litigation. There, she met acolleague who took her to a baseball game while they were working on a case together in Tokyo. Given the high level of baseballin Japan, she was surprised that there weren’t more Japaneseplayers on MLB teams.
Then she found out why and, being a newly minted lawyer,
she knew she had some work to do. She learned that there wererules written in 1967 that restricted Japanese players from moving to the MLB, and she made it her mission to open the doors
and to bring more Japanese talent to the United States.

“It’s what you bring to the game, and baseball is all about problem
solving, and how women and men approach things differently …
the more an organization embraces that and respects it, the betteroff they’re going to be.”in your minor league system or success with your major league
team, I think everybody defines it differently. Every Major League
team starts the season with one goal in mind, and that is to play
as deep into October as you possibly can and, hopefully, to end up
celebrating on your field.”
For Kawakami, it was sports-related injuries suffered when
she was a teenager that helped guide her path. She grew up playing
sports and had dreams of becoming a professional golfer or skier.
But after discussing her future with her parents, she decided topursue the games themselves as hobbies and concentrated on
studying sports medicine abroad. If she couldn’t be a professional
athlete, she was determined to support those who could.
“I know there are a lot of women who see that sports businessis very male dominated, and they feel that they won’t be able towork in baseball unless they know a lot about it,” she said. “I believe
the doors are open for anyone, regardless of gender, regardless of
if they know or played baseball. I’m actually a good example. I love
sports in general, respect our brand, and I like what I do. But I
really cannot call myself a baseball person. I just want us to keep
the doors open for anyone.”

Stronger Together
Men and women bring different views and experiences, and it isto the advantage of any organization to combine these differences
to create a sum that is greater than its parts—whether in sports
or any industry. Kawakami, Afterman, and Ferreira have shown
that, in the MLB, women can be looked at for ability, to be known
not as a great female executive but simply as a great executive.
And if at first your voice isn’t heard, make it heard. “I always
tell people, if somebody doesn’t give you a seat at the table, bringa folding chair,” said Ferreira.
“You don’t necessarily have to play baseball to add value toan [MLB] organization. You bring a different perspective. I didn’t
play baseball. I didn’t even play softball,” she added. “But I grew
up watching my brother, who was 14 months older than me, inLittle League in high school. That fueled my love and passion for
the game.
“It’s what you bring to the game, and baseball is all about problem solving, and how women and men approach things differently,”
she added. “And I think that the more an organization embraces
that and respects it, the better off they’re going to be.” n

THE ACCJ JOURNAL • APRIL 2021

19

SPORTSTokyo 2020

20

Three months to go until the biggest sporting event of 2021—are you ready?

Presented inpartnership withT

he last time we had to wait for a postponed
Olympic Games, the world was in turmoil.
The 1944 Winter Olympics were to take placein Cortina d’Ampezzo, Italy, but with World War II
raging the event had to be put on hold. Eventually,
those Winter Games were held—four years later—in
St. Moritz, Switzerland.
Seventy-six years later, turmoil once again addedcomplexity to the world’s greatest sporting event as
the coronavirus pandemic put the brakes on the Tokyo
2020 Olympic and Paralympic Games. The extraordinary build-up is sure to make it feel even more special,
and Tokyo 2020 in 2021 will be an unprecedented
celebration of unity and solidarity: an opportunity
to celebrate humanity’s triumph over adversity. The
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Watching the Games with official hospitality will
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Prime Experience
As well as providing the best view of the Games,
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With a lack of opportunities for athletes to compete in2020, and an additional year to train, it’s likely we will
see sports at its very best this year. So why not celebrate
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Japanese culture is renowned for its hospitality,
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THE ACCJ JOURNAL • APRIL 2021

For those looking for a more casual option, ourPremium package offers a VIP supporters pack,including food and drinks that you can enjoy at yourtop category seat, so you don’t miss a moment of the
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Watching the Games in Tokyo 2020 Olympic
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21

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A Rugby Experience of a Lifetime at#France2023
STH Japan will provide Japanese rugby fans with another experience of a lifetime through their appointment as an official travel provider for the Rugby World
Cup 2023, France, in the Japan region. Following the
success of operating the official hospitality program at
the Rugby World Cup 2019, STH Japan is delighted tocontinue their partnership with the tournament.
STH Japan will be designing an innovative rangeof travel package options and price points. All pack-ages will include an element of travel, accommodation, and tickets to the biggest matches. Following
the popularity of the Rugby World Cup 2019 and a99-percent ticket sellout rate*—the highest ticket
sellout rate in the history of the tournament—it isadvised that customers purchase as early as possible
to avoid disappointment.
The year 2023 will be an historic one, marking the10th time the Rugby World Cup has taken place andhonoring 200 years since the invention of the game in1823. The celebration will last for 45 days, kicking off
from September 8 and running through October 21.
The Rugby World Cup 2023 will take place in 10 hostcities, creating a festive atmosphere across the country. Currently, there are 12 teams confirmed to play,with Japan already qualifying, leaving teams including
the United States, Samoa, and Tonga fighting for the
final eight spots.
The previous Rugby World Cup will be one to remember after the Japanese Brave Blossoms delivereda record-breaking tournament. Not only did theyfinish top of their group after historic victories overIreland and Scotland, but they also played in theirfirst quarter-final at a Rugby World Cup. Following
their performance in front of home fans, the pressure
will certainly be on as the Japanese national teamprepares for France 2023.
STH Japan President and Representative Director
Brendan Delahunty said: “We are thrilled with the appointment as an Official Travel Agent for Rugby World
Cup France 2023. This reflects STH Japan’s dedication
to providing experiences that make the memorable
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Cup 2023, France will be an incredible tournamentthat will provide Japanese rugby fans a unique experience that will enhance the tournament.” n* Source:
EY, The Economic Impact
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Location,
Location,
Location

22

Photo: Nacasa & Partners Inc.

LIFESTYLE

Tokyo American Club Nihonbashi is a match made in heaven

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Listen to this story:
accj.or.jp/soundA

rthur Mitchell doesn’t have much time to waste
these days. When the longtime American
Chamber of Commerce in Japan member
and former governor does manage to get away fromhis law office near Tokyo Station, anything fromlunch to exercise needs to happen according to his
demanding schedule.
When Tokyo American Club Nihonbashi opened
its doors last month, it was as close to a match madein heaven as Mitchell could find.
“I can walk to the Nihonbashi Club in less than 15
minutes,” Mitchell said. “Anything that saves me time
is valuable to me.”Opened on March 31 as the first satellite club inTokyo American Club’s 93-year history, Tokyo American
Club Nihonbashi packs a wide range of upscale facilities
and amenities into a compact footprint—all situatedsquarely in the city’s busiest commercial district.
For Mitchell and other professionals with tightschedules to keep, the ability to pop into a world-classprivate membership club for an afternoon workout oran expertly prepared meal and drinks with clients is
an unparalleled upgrade to his Tokyo work life.

“I went over there the first day it opened,” said
Mitchell. “In the following week, I had three lunches
there with clients.”
An inaugural Member who joined the Tokyo
American Club community under a Nihonbashi Clubonly membership, Mitchell is already making full useof the latest and most exclusive option to the Club’s
membership lineup.
Situated on the sixth floor of the stunning Nihonbashi Muromachi Mitsui Tower, just steps away from
Mitsukoshimae Station, the Nihonbashi Club offers
the same incredible service, unbeatable amenities andinternational atmosphere Mitchell associates with theTokyo American Club name—all in a location tailormade for his professional life.
“The center of my activity is the office,” he said,“and the Club is so close.”In the few short weeks since the Club’s unveiling,
Mitchell has already put the brand-new fitness center
through its paces and sampled the American Room’s
signature burger with authentic British cheddar from
Wykes Farm. He’s also eyeing the Club’s private dining
room and adjacent conference space (available byadvance reservation) for possible use.
As the Nihonbashi Club’s membership grows,
only time will tell what’s in store for its international
community of members. But if first impressions mean
anything, Mitchell is sure there’s a bright future ahead.
“I think very highly of the staff, the atmosphere,
and, of course, the location,” he said. “It’s just terrific.” nPhoto: Nacasa & Partners Inc.

Photo: Kohji Shiiki

THE ACCJ JOURNAL • APRIL 2021

CHARITY

VirtualGolf fora Cause23

Take to the links safely and help children in needIn 2018, Jarman International started a monthly
charity golf cup in partnership with EastWood
Country Club, in Utsunomiya, Tochigi Prefecture,
to support Mirai no Mori, a non-profit organizationthat creates life-changing outdoor programs forabused, neglected, and orphaned youth in Japan.
Last April, when Covid-19 restrictions started to
drastically reshape the world’s definition of normal,
Chief Executive Officer Ruth Marie Jarman wanted
to continue supporting Mirai no Mori and find a way
to keep hosting the fun and friendly golf competition
while following social distancing guidelines and keeping participants safe.
It would be easy to simply put charity support on
hold in turbulent times, but for Jarman that wasn’t
an option. “I knew that Mirai no Mori needed us morethan ever, and people needed a way to exercise, interact
with others, and relieve stress safely,” she said. “In trying times, playing golf under a bright blue sky—witha bit of laughter—can be such a wonderful remedy.
We also noticed that golf was becoming increasingly
popular around the world because of its inherent social
distancing, so we knew there was a way. All we had to
do was think creatively.”
After much thought, Jarman came up with aninnovative idea: a virtual monthly competition in which
golfers can participate by playing a round any time
during the month at EastWood Country Club. They
then send their score cards to Jarman by the end of themonth and are entered for a chance to win a trophy andcash prize of ¥100,000.

Just by enjoying a fun round of golf, all participants
help Jarman continue to support Mirai no Mori. We
hope you will join in and help make a difference in the
lives of marginalized youth in Japan, one swing at a time.

Presented inpartnership with

How to Participate
1. Play a round of 18 holes at EastWood Country Clubany time during the month. If you would like Jarman
International to make the reservation for you, pleasecontact nina@jarman-international.com. (There is
no extra fee to participate in the Cup.)
2. Submit a photograph or PDF of your scorecard tonina@jarman-international.com by the end of themonth. Please make sure it is signed by someone who
played with you and clearly legible.
3. All Cup participants’ scores will be calculated at theend of the month, and the winner will be announced
during the first week of the following month. Scores
are calculated based on the New ‘Shin’ Peoria system(double par plus one rule with the upper limit), a
popular format in Japan in which secret handicaps
vary by hole and essentially create a flat playing fieldthat gives everyone a chance to win!
Finally, the winner will be invited to a celebratory lunch in Tokyo at Jarman International’s partner
restaurant, Coconoma Season Dining, and presented
with the Charity Cup Trophy as well as a cash prizeof ¥100,000! neastwoodgolfcountryclub.com/
events/Standard Rates
Weekdays: ¥7,500
Saturdays: ¥14,900
Sundays/Holidays: ¥3,900
Tomonokai Member Rates
Weekdays: ¥3,600
Saturdays: ¥8,600
Sundays/Holidays: ¥7,600
Rates include: cart fees, shuttle
service from Utsunomiya Station,
and access to the locker room
showers and hot bath. Lunch
available for ¥1,500 extra.

Listen to this story:
accj.or.jp/sound

THE ACCJ JOURNAL • APRIL 2021

HEALTHCARE

By Ali Rogin

Beat Breast Cancer
Like a Boss

24

Looking ahead to a special ACCJ May event

T
Ali Rogin
Producer
PBS NewsHour
foreign teamBreast Cancer andCareers: A Conversation
with Kathy Matsui
and Ali RoginMay 26, 2021
Hosted by the
Independent Business,
Healthcare, and Women in
Business Committees

Register:accj.or.jp/accj-events

oday, I am a seasoned television producer
and reporter with a decade of covering theWhite House, the US Department of State,
and Capitol Hill under my belt. I’ve been in plenty ofhigh-stakes situations where it pays to be cool, calm,and collected, whether it’s writing a scoop on deadline, chasing senators through the basement of theCapitol building, or grilling the White House press
secretary in the briefing room.
But 10 years ago, I was a scared-out-of-my-mindcollege senior who had just found out I had a genetic
mutation that made it likely—about 80 percent likely—that I would develop breast cancer at some point, having tested positive for the BRCA1 genetic mutation.
I was in a panic and had no idea where to turn.
I was just a college kid—I wasn’t supposed to be
thinking about breast cancer! Besides a few words
about having children before the age of 35, my genetic
counselor didn’t give me a lot of advice. So, I met witha few doctors, one of whom told me she was seeing
more and more young women opt for a prophylactic
bilateral mastectomy and reconstructive surgery.

Making Choices
It didn’t take long for me to realize that this was theright choice for me. I no longer viewed my breasts asassets; they were ticking time bombs.
But I had all sorts of questions that the doctors
couldn’t really answer. What was the best time in
my life to take two weeks off to have life-changing
surgery? Should I do it while in college, or should I
wait until I was out in the real world? Would I missmy natural breasts? What about dating? When was
the right time to disclose to potential boyfriends that
I was in various stages of chest renovation?
And when I did decide to have the surgery while
in college, I got so many questions about why I wasdoing this at such a young age. Didn’t I want to keep
my breasts until I snagged a husband? What aboutlosing out on the joys of breastfeeding?
Overall, I was lucky. I went through that whole
period quite bravely and defiantly. Besides thoseinitial few days of panic, I never looked back andended up answering many of those questions myself.
Nevertheless, I often felt as though I was travelingthis road alone.

THE ACCJ JOURNAL • APRIL 2021

Helping Others
My experience has led me to appreciate that, when
you’re going through a trial, community matters.
That’s why I decided to write Beat Breast Cancer Likea Boss. It helps to hear from and connect with otherpeople who have been through similar experiences—
not just to seek advice, but simply to commiserate.
Kathy Matsui is a perfect exemplar. The former
Goldman Sachs Japan vice-chair also faced breast
cancer. And like every individual navigating a new,life-changing health challenge, she had to chart a
course of action that she was comfortable with. In
Kathy’s case, that included the difficult decision totake a leave of absence from work and travel fromJapan to the United States for care.

Our challenges all take different
forms, but, at their core, they
are the same—they force us tomake hard decisions and ask
ourselves difficult questions.
Following her treatment, she was at a crossroads.
Did she want to return to her career full time or wasbreast cancer a signal that she should dial back worka bit? Her health crisis afforded her invaluable clarity:
she loved her job and looked forward to returning to it.
There was nothing she’d rather be doing with her time.
My hope in writing Beat Breast Cancer Like a Bossis that it will help you relate to aspects of each woman’sbreast cancer battle, and that you can apply some of
the messages in the book to whatever it is you’re going
through—whether it’s breast cancer, a different type ofcancer, or a challenge that has nothing at all to do withyour physical health.
Our challenges all take different forms, but, attheir core, they are the same—they force us to makehard decisions and ask ourselves difficult questions.
The book can serve as one mallet in the toolbox that
can help you take on any of life’s challenges.
Continuing along this journey, in late May, Kathy
and I will be having a conversation about these challenges, decisions, and what we’ve learned from themat a special ACCJ virtual event. I hope you will join us. n

HEALTHCARE

By Ichiro Umeda

Innovating
through Adversity

25

Three fundamental concepts for strengthening Japan’s medical systemCovid-19 has completely changed our way of life.
It has also made us aware that we have been
taking many things for granted, assuming thatthey were one way when, in reality, they were not.
Japan’s healthcare and health insurance systems
are great examples. We believed them to be among thebest in the world, and that we are enjoying long andhealthy lives thanks to them. While it is true that we
can enjoy a high quality of life, nutrition, and publichealth in Japan, the coronavirus pandemic has shownthat there are areas of these systems that can be improved. Access to vaccines and medicines in Japan, forexample, may not be among the best in the world.

Communication Matters
Through our discussions with patient groups, we havelearned that many patients are still suffering from rareand difficult diseases for which a treatment is hard,or no treatment exists at all. Even a test or diagnosis
can be challenging. We believed the situation in Japan
was the same as in other countries, but we are now
starting to think that this may not be the case. Perhaps
the situation is not the same everywhere, and access toinnovative healthcare in Japan is not on par with thatin other leading countries.
As economic growth has remained stagnant fora long time, the financial burden on the national
government to maintain the social security system
has become a big problem that must be solved. We, as
the whole nation, need to find a solution and promote
innovation in the development of new medical treatments as soon as possible.

Three Fundamental Concepts
To achieve such a goal, the voices of patients should beheard by policymakers and the general public. It is important that patient-centric healthcare achieves theoutcome of curing more diseases as a result of what islearned from those in need of, or receiving, treatment.
We believe in three fundamental concepts as abasis for the future of Japan’s social security system:
1. Maintain protection from financial risk as thefunction of the public insurance system, in
keeping with the philosophy that large risks
should be covered with assistance and smallrisks by the individual.

Ichiro Umeda
ChairmanInstitute for New Era
Strategy (INES)

2. Divide the insurance (risk dispersion) and tax(redistribution) functions of the social security
system and concentrate the use of public funds
on those who are genuinely in need.
3. Share a vision of what Japan should achieve inthe era of longevity, promoting innovation in
health using information and communications
technology, artificial intelligence, Big Data,and other technologies, stimulating nationalawareness of system-wide innovation.
The Institute for New Era Strategy (INES) is not
only taking these ideas to the government but working
hard to bring together the private and public sectors tocatalyze discussion to promote healthcare innovationand new approaches to more sustainable financing ofhealth and retirement in Japan. n

About The Institute for New Era Strategy (INES)
In 1997, INES was founded as a company by Tetsuo Kondo, former Liberal Democratic Party member of the House ofRepresentatives, after his retirement from politics. Kondo began his career at the Ministry of Finance, and as a Diet
member he held the posts of Minister of Labor and Minister of Economic Planning.
Throughout the years, INES has undertaken research from a private sector standpoint with the aim of making
policy proposals with fundamental solutions for urgent issues in areas such as economics, finance, politics, and foreign
affairs, and has continually provided a forum for learning through the arrangement of breakfast study sessions. INES
restarted its operations as a general incorporated association in July 2018 and will continue to provide a venue forpeople to gather and deepen discussions on the issues that Japan faces now and in the future.

Listen to this story:
accj.or.jp/sound

THE ACCJ JOURNAL • APRIL 2021

HEALTHCARE

26

By Malcolm Foster

PHARMACY
IN THE CLOUD

MEDIFRAME AIMS TO STREAMLINE AND DIGITIZE JAPAN’S DRUG DATAA

s a former pharmacist at a university hospital,
MediFrame, Inc. Chief Executive Officer
Atsushi Wada was familiar with the pressuresand challenges faced by Japanese doctors:
increasingly complicated and personalized medications, alack of time to read up on and learn about these new treatments, and a growing number of elderly patients.
“Some of these drugs have been created as a result ofadvanced, Nobel Prize-worthy scientific breakthroughs.
But many medical professionals have their hands full justcaring for their patients and don’t have the time to learn
about these medicines,” Wada said.
Compared with other major economies, Japan has
fewer doctors per capita—2.4 per 1,000 people—while theaverage is 3.5 for members of the Organisation for Economic
Co-operation and Development. Pharmaceutical companies have plenty of information about each drug, including
possible side effects, but that information wasn’t reaching
doctors simply because they didn’t have time, or it was ahassle, to look it up.

THE ACCJ JOURNAL • APRIL 2021

Noticing this, Wada saw a need—and an opportunity.
He quit his job and has spent the past three years creatinga platform that makes it easier for doctors to readily accessinformation about the myriad drugs on the market.
The result is MediFrame, a startup that won theBest Value Proposition prize at the American Chamberof Commerce in Japan (ACCJ) Healthcare x Digital competition on December 1.
The event was driven by a group of ACCJ committees—Healthcare; Alternative Investment; Information,
Communications and Technology; and Secure Digital
Infrastructure—and led by ACCJ Corporate Sustaining
Members AstraZeneca K.K., Bayer Yakuhin, Ltd., andDeloitte Touche Tohmatsu LLC, as well as President’s
Circle Member Eli Lilly Japan K.K. The ACCJ-Kansai
Chapter played a key role in organizing the competition.
The ACCJ Journal caught up with Wada to learn more
about his experience pitching his business concept, andthe challenges he has faced.

What problems are you addressing?
Japan is facing a shortage of medical staff—doctors,
nurses, even pharmacists—as the elderly population
grows. At the same time, medication is becoming
increasingly personalized. That means the numberof drugs medical staff need to know about is expanding dramatically.
MediFrame is a cloud-based system that links topharmacy systems and allows doctors to quickly get
information about the many drugs available. Because
MediFrame provides personal information necessary
for treatment linked to a patient’s prescription data,
pharmacies sign a contract with us to set up an accountthat protects personal information in compliance withprivacy laws and other guidance.
Who are you mainly trying to help?
Japan has a shortage of doctors—there is more demandthan supply—so that’s one thing we’re trying to do, tohelp make doctors’ jobs easier. But, through them, ofcourse we’re also trying to help patients.
In many cases, with today’s advanced drugs, simply
taking medicine isn’t enough; the treatment needs tobe carefully controlled. For a drug to be truly effective,

process. I also saw that they lacked tools to maketheir jobs easier and streamline interactions within
the system.
So, I realized that to really have a broader impact
myself—and to help others do the same—I was in aunique position to start a company that could benefit
wider society. As a pharmacist, I had experience insetting up various projects, so I thought that, too,might be used to launch a business. And that was thestart of MediFrame.
When did you launch the business?
We really began last spring. The company was formedin October 2017, but it took about two and a half years
to gather information and input from many people
and, through trial and error, to develop the platform.
We’re still small and I’m the only full-time employee.
I formed this company by myself, although I havereceived help from a number of people.
The system is still in development and isn’t being
used yet. I’m looking for a partner with whom I cantest the product, and also for investors who can support this project. I hope to have people actually using
it within this year.

27

Atsushi WadaCEOMediFrame, Inc.

MEDICATION IS BECOMING INCREASINGLY PERSONALIZED.
THAT MEANS THE NUMBER OF DRUGS MEDICAL STAFF NEED TO
KNOW ABOUT IS EXPANDING DRAMATICALLY.
doctors need to have knowledge of its effectiveness andpossible side effects, and then relay specific instructions to their patients.
Tell us about your background and how you got tothis point and started MediFrame.
I was a pharmacist at Kobe University Hospital, andI gained experience helping launch various new
operations. I helped set up satellite pharmacies indepartments such as the intensive care unit.
I’m an oncology specialist, so I also helped set up
an oncology team at the hospital. When the university
hospital established an affiliated hospital, I assisted
by becoming a member of the staff and helping set up
clinical trials. I also played a role in inaugurating an academic society that has grown to about 4,000 members.
I also had gained a lot of experience early on
working with people outside the hospital, throughactivities such as conferences and training sessions,so I was able to think about both the hospital and thehealthcare system as a whole.
But I found that a lot of my colleagues acrossthe industry kind of lacked a bird’s-eye view of theentire healthcare system and thought only in termsof improving their specific situation, not the overall

Japan is mostly risk averse. Are attitudes changing?
A little. But people like me are still definitely in theminority. When I started this, some of my colleagues
were really surprised about the venture. So, I believe
even now there aren’t many people who are willingto take risks.
How has Covid-19 impacted your plans?
Because of the pandemic, I couldn’t meet key people.
We were able to connect online but, because wedidn’t meet in person, the decision-making stalled.
However, I did get support from a lot of people,
including friends and former colleagues, who gaveme advice. A lot of them told me my project was important and necessary, and that encouraged me.
Has the coronavirus pandemic drawn attention to
Japan’s doctor shortage?
Yes, it has. What we’re trying to create is a systemfor distributing drug information online, and online
doctor’s visits and treatment have expanded during
the pandemic. Information that was, until now,
printed on paper or in a book is being transferred
digitally. So, I think the pandemic has helped people
realize the value of this.

Listen to this story:
accj.or.jp/sound

THE ACCJ JOURNAL • APRIL 2021

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Have agreat idea?
Want to have it reviewed by top
executives from leading international
healthcare and technology companies?
Sign-ups for the 2021 Healthcare x Digital
pitch event will open this summer, withsubmissions by those selected due in fall.
Don’t miss your chance to win prizes and makekey industry connections: accj.or.jp/hxd

The Global Use of Medicine in 2019 and Outlook to 2023

29

Average Number of Global New Active Substance (NAS) Launches
Annually per Period, and Percentage of Launch Types

38%

50%

61%

65%

34%

37%

44%

45%

25%

25%

29%

35%

17%

23%

25%

30%

36

33

2004–08

2009–13

Average annual NAS launches

54

46

2014–18

Oncology

Biologic

2019–23

OrphanSpecialty

Source: IQVIA Institute, December 2018
Note: Percentages do not sum as segments and are not mutually exclusive.

Does MediFrame help the Japanese medical system save timeand money?
Not directly. But it can raise the quality of phone and online treatment. Now there are various online systems, and a single patient
often uses multiple clinics, each of which uses a different system.
We hope that our platform will help streamline these systems andbenefit patients.
Also, at the end of 2019, the law concerning pharmacists
changed. One new requirement is that pharmacists must callpatients between doctor visits to check whether they are taking
their meds properly, and whether there are side effects. Thatcame into force last September.
Pharmacists were not accustomed to doing this, so it was
hard to know the best time to contact patients based on factors
such as when the drugs might have side effects. We are trying toprovide this kind of information through the service that we aresetting up, so that patients can receive the best follow-up care.
How as your Healthcare x Digital competition experience?
It was a good experience for me. I was really nervous. The othertwo companies that won prizes were excellent businesses withlonger track records. My company didn’t even have a producton the market yet. So, I was surprised; but I was also very happy
that my concept was recognized.
AstraZeneca, Bayer, and Lilly were the main sponsors. Forthem to see the potential in my company made me feel very
pleased and encouraged. I thought my company was benefitting
pharmaceutical companies.
How will your Healthcare x Digital win benefit you?
One part of receiving this award is that I get to meet withexecutives from each of the three big firms, so I’m really looking forward to that valuable experience. I hope I can get theircooperation and support, and when we meet I should also beable to hear what sort of topics they are dealing with, so that will
be very valuable.
What advice do you have for those considering entering thisyear’s Healthcare x Digital competition?
The focus is on healthcare, so thinking about how to help patients is key. Focusing on the end goal of what will be delivered
to patients is important. n

THE ACCJ JOURNAL • APRIL 2021

HR

30

By Malcolm Foster

DEVELOPING
DIGITAL TALENTAs Japan embarks on the digital transformation ofits society and business world, hiring and developing tech talent is probably its biggest—and mostformidable—task. It has never been simpler tohire people with technological expertise from around the globe
or to grow talent locally by leveraging the many online courses
and large amount of code available.
And yet this appears to be a tall order for Japan, stymied
by barriers in its education system, hiring practices, corporate
structure, and overall culture—from its reliance on paper to a
general risk-aversion that hinders innovation.

In contrast to its economic might, Japan remains wellbehind other advanced economies when it comes to digitalcompetence. It has a shortage of technology professionals,
with the country ranking 27th in digital competitiveness globally, and seventh in Asia behind Singapore, Hong Kong, andSouth Korea.
Prime Minister Yoshihide Suga has made digital transformation a key priority, even setting up a new digital agency.
But how far and fast these hoped-for changes will extend into
industry and Japan’s education system—which is geared tomeeting corporate needs—remains to be seen.

HOW THREE BIG MOVES COULD TRANSFORM
JAPAN’S EDUCATIONAL AND BUSINESS SYSTEMS

THE ACCJ JOURNAL • APRIL 2021

Big Obstacles, Big Moves
Boosting digital talent is the first of 11 big moves thatJapan needs to make to catch up and meet its futureneeds, according to Japan Digital Agenda 2030, acomprehensive study published in February by theAmerican Chamber of Commerce in Japan (ACCJ)
in partnership with global management consultant
McKinsey & Company, Inc.
The report highlights ways in which Japan has
fallen behind. Globally, the country ranks 38th in its
ability to develop, attract, and retain digital talent. It
has a surprising dearth of software developers: about
787,000, or 62 per 10,000 workers in 2019, comparedwith 156 per 10,000 in the United States. Overall, techprofessionals make up only one percent of the workforce, compared with three percent of the much larger
American labor force.
And on the university level, just one percent ofJapanese undergraduate students were enrolled incomputer science courses in 2019 compared with four
percent in the United States, and graduate degrees infields such as software engineering are limited.
The ACCJ Journal gathered views from HR representatives and education experts—within and outside
the chamber, young and veteran—on how Japan mightachieve the first three “big moves” proposed in the
Digital Agenda report:
 Develop a deep bench of world-class talent literate in cloud tools, software development, andartificial intelligence Build digital skills across the labor force by shiftingfrom traditional to adaptive learning Drive end-to-end digitization of the education
sector from preschool to tertiary education

Covid Catalyst?
Accomplishing those objectives will be a huge undertaking and is likely to upset established business practices
that have been in place since at least the end of WorldWar II. It will also inevitably lead to some job losses as
automation spreads.
But it will also create plenty of new demand forsoftware developers, data scientists, machine learning
engineers, cybersecurity experts, cloud engineers, andothers whose professions did not exist a few decadesago. Even then, Japan will face a shortage of 430,000
digital experts by 2025, the government predicts.
As Japan’s population and labor force shrink, digitaloffers a path to reignite Japan’s growth and productivity, the ACCJ study notes. Yet there seems to be little
urgency for change given the high quality of public
infrastructure and services.
The Covid-19 pandemic, despite its obvious toll, may
have proved a catalyst for change. It has forced workers
to adopt technological tools and prompted companies toabandon a longstanding reliance on paper, hanko (personal seals), and fax machines, according to Yuko Yogo,

an independent strategic HR consultant and vice-chairof the ACCJ Human Resource Management Committee.
“This is great, great progress. If there was no Covid,that probably would have taken 10 years,” Yogo said.
“I’m an optimist, so I see some positive impact from thepandemic, and this paperless direction is one of them.”

31

Software Shortfall
One main reason that Japan has a shortage of software
programmers is that, historically, corporations andthe government emphasized hardware, mechanical,
and electrical engineering, which were critical to thenation’s economic growth from the 1970s throughthe 1990s, the ACCJ report points out. “Software isviewed as the ‘glue’ or the ‘support,’ rather than thecore component of the business,” it says.
Universities have geared themselves to meeting
corporate needs, so the relatively low demand for software experts has meant limited university offerings
and fewer graduates with the relevant training.
“Japanese universities are in lockstep with corporate interests,” said William Swinton, director of international business studies at Temple University’s Japan
Campus and co-chair of the ACCJ Education Committee.
Many corporations tend to pay little attention toapplicants’ degrees or areas of expertise, caring more
about what school they graduated from. “Right now,
university students are responding to the signals
they’re getting from the market,” Swinton said. “Theyare reading from Japanese corporations that they
don’t need a computer science degree.”And until recently, there really wasn’t a pressing
need for tech experts within a company, Yogo said. In
Japan’s lifetime employment system, new employees grew as generalists rather than specialists, she
explained. Companies typically train new employees
in their own computer systems and rotate employees
through various departments. They don’t keep them in
one area such as IT.
That may have worked in the past, but these days
“technology is so sophisticated that, until you become
an expert, you really can’t learn everything you needto,” Yogo added.
The dearth of Japanese digital specialists is evident
at Amway, the health and wellness products social
commerce and e-retailer with a huge IT department in
its Japan office. And yet the majority of staff are nonJapanese, mostly contracted from the Indian subcontinent or China. “We can’t find the talent, so we have toimport it,” said Mark Davidson, director of government
and external affairs at Amway Japan GK.
Ultimately, the private sector—not the government
or universities—must be the driver of Japan’s digitaltransformation, Davidson, Swinton, and others said.
“We need to have more of a pull demand from corporations,” said Swinton, who is also an ACCJ governor.
“If companies say, ‘We’re only going to hire your graduates if you have more sophistication in these areas,’ thatwill allow universities and their students to respond.”

Yuko Yogo
Strategic HR consultant
Vice-chair
Human Resource
Management Committee

Mark Davidson
Director of government
and external affairs
Amway Japan GK
Co-chair
Education Committee

William Swinton
Director of international
business studies
Temple University,
Japan Campus
Co-chair
Education Committee
ACCJ governor

Listen to this story:
accj.or.jp/sound

THE ACCJ JOURNAL • APRIL 2021

32

Big Moves to Create a Globally Competitive
and Adaptive Pool of Digital Talent

1

2

3

Develop a deep bench of worldclass talent literate in cloud
tools, software development,
artificial intelligence, andother digital technologies andways of working.

Drive broad-scale upskilling
across the workforce byshifting from traditional toadaptive learning to build
digitally relevant skill sets.

Drive end-to-end digitizationof the education sector, frompreschool to tertiary education, with solutions for schooland educator efficiency, as
well as student access.

The Three Ks
Another factor is that IT jobs have a bad reputation among young
people, said Tsuyoshi Domoto, the 32-year-old co-founder of thenonprofit organization Youth Who Code. He holds a master’s
degree in educational technology from Harvard University.
Traditionally, young Japanese have shunned “three-K” jobs—
those that were considered kitanai (dirty), kiken (dangerous),and kitsui (tough). But in recent years, software and IT jobs havecome to be associated with another set of three Ks: kitsui (tough),kaerenai (can’t go home), and kyuuryou ga yasui (low pay).
“Of course, if you’re a college student and you hear that
reputation, you’re not going to major in that field,” Domoto said.
“If there’s no incentive for Japanese students to specialize in thatfield, then you can major in almost anything and still get that job.”
Changing this perception will be one task facing Japanesecompanies, although there’s anecdotal evidence that rising demandis lifting IT salaries. Yogo said she knows of cases where techexperts have demanded annual salaries of $200,000—quite highby Japanese standards.

Entrepreneurs Flourished
To enact changes, Japan may need to recapture the entrepreneurial spirit of the post-war period, when young innovators such as
Soichiro Honda and Konosuke Matsushita started business thathave grown into today’s behemoths, said Davidson, a former diplomat who served at the Embassy of the United States, Tokyo, and is
co-chair of the ACCJ Education Committee.
“Deep down in Japan’s DNA, you look at the immediate
post-war period, and there was an extraordinary effusion of
innovation, like Honda playing around with motorcycles in his
workshop. That was a period of tremendous entrepreneurial
flourishing,” he said. “Japan has incredible strengths. The potential here is as high and promising as in any country on Earth.”
What Japan lacks—and what’s inhibiting its digital revolution—is a self-generating ecosystem similar to that of Silicon Valley

THE ACCJ JOURNAL • APRIL 2021

or to the tech hub around Boston that brings together talent,ambition, investment money, and a culture of experimentation andrisk-taking—all built around top research universities. “Japan justdoesn’t have that,” he said.
To embrace the digital age, Japanese corporations need tochange their self-perception. Even its vaunted manufacturers
may need to view themselves less as making physical products
and more as providing digital solutions, Davidson said.
“Toyota has to stop thinking of itself as a company that builds
metal cars and think of itself as a company that provides transportation solutions,” he said. “As the technology moves, for example,
in the automotive sector toward autonomous mobility, Japanesecompanies will see that they’re not just metal-bashing companies.
They’re software companies.”
Swifter change will come with a new generation of corporate
leadership, which Swinton believes is already appearing. “We areon the verge of the 40-somethings taking over Japanese corporations,” he said. “I think that we’re going to find that they’re moretech savvy and internationally savvy than their predecessors.”

Immigration
Another change that Japan needs to embrace if it wants to enrich
its education system and nurture innovation is to promoteinternational exchange and allow more immigration, Davidson
and Swinton said. Just as Silicon Valley draws driven, talented
immigrants from around the globe.
“We see around the world that immigrants bring a different
view, they look at things from the outside, they bring their young
and scrappy view of the world, a belief in bettering themselves,”
Davidson said.
Japan is resistant to immigration, partly because it is disruptive to a society that prizes order. But that very disruption often
sparks innovation and flexible thinking that Japan needs totransform itself, he said.

Japanese universities, the core engine of future
talent development, also need to do a better job preparing their graduates for the digital age. An expansion ofcomputer science classes is needed, and Temple University Japan is starting a program in computer science andinformation science and technology, Swinton explained.
But more broadly, universities need to train theirstudents in critical thinking and creative problemsolving. “We have to understand that the talent neededin Japan is not purely technical,” Davidson said. “It’screating liberally educated, technically competentyoung people, confident and capable of challenging thestatus quo.”That affects the kind of instruction professors
provide, raising the engagement of university students and promoting more international exchange—
welcoming more overseas students and sending theirown to study or work abroad.
One step that colleges can take is to expand thenumber and duration of paid internships for theirstudents at major companies—not the more typical
two-week kengaku (observation) stints, but real work
experience, Davidson said. “There’s a suspicion thatsomehow this pure alabaster tower of academia will
be sullied if it comes into contact with the private sector,” he said. “We have to break that down.”

Holistic Approach
Most of all, Japan’s education system needs to modify
its entrance examination process—not just for colleges
but for high schools and middle schools as well, contributors have said.

do during college? How did you serve the community?’ Then, if you can start evaluating people based on
their humanity, not just a single test, you can extract
real talent,” said Domoto.

Real change needs to originate with corporations, but
the government does have a role to play, too, contributors said. In Japan’s hierarchical society, people tend
to follow the pronouncements and guidelines comingfrom their leaders, and Domoto believes the government could enact change through new rules or laws.
“If the government makes a law saying something
like starting from next year you can no longer basesomeone’s eligibility to enter university purely on theirtest score, that you have to make sure you look at otheraspects, then universities would have to follow,” he said.
To promote computer literacy in the younger
grades, the government has launched several initiatives,
including plans to provide one laptop per child by 2023,
according to the ACCJ report. It has also announced theintroduction of programming education in elementary, middle, and high schools in 2020, 2021, and2022, respectively.
But the problem with that latter initiative,
Domoto said, is that some public schools don’t haveadequate human resources to carry out that initiative.
The science or math teachers who are usually called
on to teach computer programming classes have notreceived enough training, or they feel the extra classdemands are stretching them too thin. “Many teachers are feeling overwhelmed,” he said.

WE HAVE TO UNDERSTAND THAT THE TALENT NEEDED IN
JAPAN IS NOT PURELY TECHNICAL … IT’S CREATING LIBERALLYEDUCATED, TECHNICALLY COMPETENT YOUNG PEOPLE,CONFIDENT AND CAPABLE OF CHALLENGING THE STATUS QUO.
These fateful tests shape the lives of millions ofyoungsters from as early as age 10, when many startattending cram schools, which emphasize rote memorization and test-taking, not the critical thinking or
creative problem-solving that a digital world requires.
These exams also shape their futures, as companies
tend to prioritize the university’s brand name over eventhe applicant’s major or educational experience.
Instead, at both the university and corporate levels,
Japan needs to adopt a more holistic evaluation of an
applicant’s strengths and achievements in various areas,
not their performance on a standardized test taken on
one day. “All students do is try to get into prestigious
universities,” said Domoto. “Once they’re in, they just sit
back and do anything they want.”
Again, any changes to Japan’s entrance examination system need to come from the corporate level,
contributors said.
“If companies should start to say, ‘We’re going tobegin looking at you as an individual: What are yourvalues? What sort of extracurricular activities did you

33

Government Initiatives

Nancy Ngou
Head of organizationalchange and diversity &inclusion, EY Strategy &Consulting Co., Ltd.
Co-Chair Human Resource
Management Committee
and ACCJ governor

Tsuyoshi Domoto
Co-founder
Youth Who Code

Generational Divide
Training corporate staff to become more digitallycompetent is something that Nancy Ngou, head oforganizational change and diversity and inclusion at
EY Strategy & Consulting Co., Ltd. is talking about
with clients regularly these days. And she definitely
perceives generational differences.
Some older employees are worried that they can’t
learn the new technology and that they might lose theirjobs as a result. Some younger workers, meanwhile,
are frustrated by the slower embrace of digital tools,
prompting some to even quit, she said.
To help both groups and reinforce the strengths
each group offers, Ngou recommends “two-way
mentoring,” in which both sides can teach and learn
from each other.
“Newer employees don’t have that business savvy.
They don’t know how things work,” she said. “Often,
digital natives prefer to learn by listening to thosewith more experience, rather than reading books.”Through two-way mentoring, “the older generation

THE ACCJ JOURNAL • APRIL 2021

Power an Inclusive
Future for Japan
Cisco is committed to strongly supporting
our customers’ response to the new normal
and Japan’s digital transformation.
www.cisco.com/jp

35Students participated in the Youth Who Code Japan Inter-School Hackathon in March.

feels valued, and the younger generation can help them understand the technology. It’s win-win.”
To train staff in new tools or systems, many companies are
adopting digital academies—online, self-paced training sessions—said Ngou, who is also co-chair of the ACCJ Human Resource Management Committee and an ACCJ governor. “A lot of the time it’svoluntary; you don’t force digital training on people. But you makeit special, where people can get certified in certain things.”
One problem Ngou has seen is staff sometimes relying too
much on the tech consultant to set up a new system, instead offully learning and understanding the technology themselves.
For example, an employee may start to use robotic process automation (RPA) that collects data from various sources to generatea monthly report. But when they want to add a new account, they
don’t know how to do that because they don’t fully understand how
the program works, so they contact the consultant. “We’re trying tohelp the clients understand how to use it as opposed to just setting
it up and calling the consultant every time they have a change,”
Ngou said.
She advises clients to view their company’s digital transformation as unfolding on three levels: Upgrading employees’ skills
 Using digital tools at the leadership level Changing the overall corporate culture
If any one of those lags, the whole process stalls. “We tellthem that they can’t just do digital,” she said. “They need to
become digital.”

Gender Divide
Domoto believes that technology can also help rectify genderinequality in Japan, a problem he believes is holding back thecountry. Digital solutions can address a number of big social
problems that affect women much more than men, such as ashortage of childcare centers and nursing homes for the elderly,
as well as sexual harassment at work, he said.
There’s an assumption in Japanese society that mothers
do most of the child-rearing, which for working women means
dropping off and picking up their kids from daycare, as wellas caring for elderly parents. There’s also an assumption thatwomen don’t go into technology.
“All these female-oriented problems are unresolved,” he said.
“We live in such a wonderful, blessed country. Yet people are still
unhappy. How can we fix this?”
Domoto is convinced that empowering women and girls, andequipping them with technology, is key to resolving these problems. This idea—empowering young students and girls in technology—is emblazoned at the top of the Youth Who Code website.
The nonprofit, which Domoto helps lead, seeks to increase accessto technology-based education and resources for youth.
At a recent hackathon, they taught international students
the Python computer language, which the youth then used tocreate solutions to everyday problems, such as an aid to help
record students’ temperatures when they get on the school bus
in the morning.
“That’s why I’m trying to promote entrepreneurship. Becausewith entrepreneurs, your job is to help solve an issue in front of
your eyes,” he said. “But right now, I don’t see that happening forJapanese women.”
One example of this is the online booking system CareFinder,
created by a woman, that connects mothers with domestic helpers
who can come clean your house or care for your children.
“I really hope that tech-based solutions will help resolve someof these issues,” Domoto said. “It’s little things like this that can
add up.” n

THE ACCJ JOURNAL • APRIL 2021

GOVERNMENT TECH

36

By Julian Ryall

FIRMWARE
UPDATEGOVERNMENT AND BUSINESS MUST DIGITIZE
TO MOVE JAPAN FORWARD

APRIL2021
2021
THE ACCJ JOURNAL
JOURNAL •• APRILI

n late 2010, there was an undeniable sense of
dismay hanging over Japan as China became thesecond-largest economy in the world. It had long
been recognized as inevitable that Japan would
slip to third place, but it was still cause for some national
hand-wringing. A little over a decade later, Japan is atreal risk of falling even further in the global economic
rankings, in part because the nation has failed to fully
embrace technology and digitalization.
The 2020 IMD World Digital CompetitivenessRanking put Japan in 27th place, down four spots
from its standing in the 2015 survey. In the meantime,
China has climbed from 38th to 16th and South Korea
is up to eighth from its previous spot of 18th. Malaysia
is now ahead of Japan in terms of making the mostof digitalization to spur a national economy, as are
Ireland, Estonia, and Belgium—hardly names one
associates with the application of the most cuttingedge know-how available to companies.

Must Move Now“Digitalization is no longer a choice for Japan but animperative,” said Jim Foster, who serves as senior

in a business relationship after numerous face-toface meetings.
“That means foreign companies, in particular,
do not know for quite some time how they standwith potential partners, and decision cycles can takemore than a year to complete,” he said. “Sometimes,
decision cycles take far too long, are too ponderous.
And that’s before we begin building a long-term corporate partnership that relies on paperwork, hanko,
fax machines, and several layers of bureaucracy.”
The coronavirus pandemic has further served
to highlight the frailties that are so inherent in theJapanese business sphere, points out Alice Graham,co-chair of the chamber’s Digital Literacy and Ethical,
Legal, Social Issues (ELSI) Committee and assistantgeneral counsel for Microsoft Japan Co., Ltd.
“Most immediately we have seen, since the first
Covid-19 emergency declaration, an inability for mostemployees to work from home,” she said. “And while
Japan has widespread mask usage, I believe this inability for people to work from home is a huge contributor
to the Covid-19 caseload and deaths compared withother Asian countries.”

OVER THE PAST DECADE, WHILE OTHER NATIONS HAVE MOVEDDRAMATICALLY ON THE CHALLENGE OF DIGITALIZATION,
JAPAN HAS NOT ONLY LAGGED BEHIND OTHER COUNTRIES,BUT ACTUALLY REGRESSED.

Photo: Prasit Rodphan/123RF

advisor to the American Chamber of Commerce inJapan (ACCJ) New Digital Agenda Task Force. “Thecurrent pace of digitalization here will not permit
Japan to keep its position as the world’s third-largest
economy. Over the past decade, while other nations
have moved dramatically on the challenge of digitalization, Japan has not only lagged behind other countries,
but actually regressed.
“With significant headroom for digital penetration across industries and government, Japan still has
the chance to leverage digital to achieve a new phaseof growth in the next decade,” he said. “But given ashrinking workforce and an aging population, thecountry needs to boost its productivity to make up
the gap. Going digital is its last best option.”
There are multiple challenges that exist in a societythat continues to place importance on doing businessin person and largely adheres to the mantra that traditional ways of doing things are probably still the best.
For example, just 7.5 percent of government
administrative services can currently be performed
online, with the vast majority still requiring a person
to physically visit a government office, fill in reams of
paperwork, and apply a hanko (personal seal).
Many businesspeople have their very own digitalization bugbears they fervently wish could be addressed.
John Kirch, vice-chair of the ACCJ’s Information,
Communications, and Technology (ICT) Committee,
pointed out that traditional thinking in businesshere means that trust can only effectively be forged

Government Action
If the consequences of failing to adopt digitalization inbusiness are many, varied, and glaringly obvious, whatshould the Japanese government be doing?
“The first step is to get the Digital Agency up andrunning with a broad mandate to drive digitalization
across ministries and at all levels of government—national, prefectural, and municipal,” emphasized Foster.
“Other initiatives,” he added, “include improving
and expanding the procurement of digital technologies and services, promoting rapid adoption of cloudcomputing through mandating interoperability acrossgovernment agencies, getting the right balance ondata privacy, and setting principles for responsible
use of artificial intelligence.”
Judith Hanna, a Japanese policy analyst and advisor to the New Digital Agenda Task Force—chaired byJames Miller, head of public policy at Amazon Web
Services Japan—concurs that the central government,
led by the Digital Agency, “must make some fundamental decisions that reflect on what businesses need to be
globally competitive.
“There is no time to lose,” she added. “This means
greater dialogue with the international business community and learning from other governments thathave already gone through—or are going through—the digital transformation journey.”
Kirch, who is senior vice president of Uppsala
Security—the first blockchain technology powered,
crowd-sourced threat intelligence platform—believes

37

Jim Foster
Senior advisor
ACCJ New Digital
Agenda Task ForceJohn Kirch
Senior vice president
Uppsala Security
Vice-chair
ICT Committee

Alice Graham
Assistant general counsel
Microsoft Japan Co., Ltd
Co-chairDigital Literacy and
ELSI Committee

Listen to this story:
accj.or.jp/sound

THE ACCJ JOURNAL • APRIL 2021

Japan has all the essential ingredients to digitally transform its
government and society, and to dramatically grow its economy.
That window of opportunity is rapidly closing.
—Alice Graham
Assistant general counsel, Microsoft Japan

Hong Kong, South Korea, Taiwan, China and Malaysia. Other nations have been working hard to scale
USA
1
2
+1
the digital learning curve: Hong Kong climbed in the global ranking from 14th to 5th in five years, South
Singapore
2-1
1
Korea from 18th to 8th, and China from 33rd to 16th.
Denmark

Exhibit2:
Sweden

3

8

+5

4

5

+1

6

7

+1

1
GlobalIMDSAR
digitalrankings(rankedby142020)
IMDcompetitiveness
Digital CompetitivenessRankings(ranked by 2020)1+9
Hong Global
Kong,
5

Switzerland
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Country

20207rank

20156rank

South
USA Korea

81

18
2

+10
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NorwaySingapore

9
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11
1

+2
-1

FinlandDenmark

10
3

3
8

-7
+5

Taiwan,SwedenGC

11
4

15
5

+4
+1

CanadaHong Kong, SAR

12
5

4
14

-8
+9

United Kingdom
Switzerland

13
6

12
7

-1
+1

Netherlands
UAE

14
7

22
6

+8
-1

Change
-1

South
Korea
Australia

15
8

9
18

-6
+10

Norway
China

16
9

33
11

+17
+2

Finland
Austria

17
10

26
3

+9
-7

Taiwan,GermanyGC

18
11

17
15

-1
+4

CanadaIsrael

19
12

10
4

-9
-8

UnitedIreland Kingdom

20
13

25
12

+5
-1

Belgium
UAE

25
14

19
22

-6
+8

Malaysia
Australia

26
15

21
9

-5
-6

Japan
China

27
16

23
33

-4
+17

Austria
17and future
1 Rankingcan becan
decomposedby 3byfactors:
Knowledge,
Technology,
Readiness
1. Ranking
be decomposed
three factors:
knowledge,
technology,Future
readiness.
Source:Germany
2020 IMD World Digital Competitiveness index

18

26
Source: 2020 IMD World Digital Competitveness Index
17

39

Judith Hanna
Japanese policy analyst
Advisor
ACCJ New Digital
Agenda Task Force+9-1

the most
Hanna concurs10
that there is an urgent need-9
forIsraelcritical requirement is for the government19“toDigitalcompetitivenessand productivity
are inextricably
linked. Thetoeconomies
rankedhighlyforadding
digitalthat
set
out
a
vision
of
where
it
wants
to
go
and
to
definebold
universities
producemoredigitaltalent,Ireland20
25+5competitiveness– namelyHong Kong,
Korea andcompanies
China – allexperienced
positive laborgoalswith target dates
so progress
can beSouthmeasured.
need
to be communicating
withandgovernment
Belgium25
19-6
factorproductivity
over thepast
five years,
China
seeing5.25%
growthin arelabor
productivity“Thereneeds togrowth
be leadershipanddialogue,”
he with toidentify
areas
in whichthere
talentshortfalls.
Malaysia
26 labor and total factor productivity
21-5
and 2.81%
in overall
productivity(Exhibit 3). targets
Japan’sa negative
said.
“The visionneeds
to be communicated,
There is also a need to re-skill the were
workforcefor changes
Japan
27
23
-4
-0.17%
and -0.11%
respectively.
Even
comparedwith otherdevelopedmust
be allocated,andthose who aremaderesponsible
in theirtasks. economies such as the US,
capitalproductivity
hasKnowledge,
dropped,withreturnon investment
for non-financial
companiesin and1Japan’s
Rankingcanbethosedecomposed
3 factors:
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Future Readinessformeetinggoalsbymust
be
named
and
actually
Digital transformation
requiresdesigners
Source:2020
IMD World Digitalpoints
Competitivenessindexequivalent companies in the US 1 .
Japan
23 percentage
less than
held
responsible.”data scientists, machine learning experts and data
It significant
is imperative,
he added,forthat
the digitaltransforsoftware developers
and cybersecurityWithheadroom
digitalpenetration
acrossengineers,industries,and education,
Digitalcompetitivenessand productivity
are inextricably
linked. Thegovernment
economies ranked
highly for digitalmationshouldleveragethelegacysystems,onwhichexperts.
But
just
one
percent
oftheGiven
JapaneseJapan has an opportunity
leveragea newandphaseof growthin the next decade.
the workcompetitiveness– namelyto
HongKong,digital
SouthinKorea
China– all experienced
positive labor
and
Japan
currently
reliessoheavily,byenabling
digitalforceisatpresent
skilledinthese
areas.
And
demographic
challenge- aovershrinkingworkforce
expected
to reach
71 5.25%
million by2025,inwith
rising most arefactorproductivity
growththe past
five years,
with China
seeinggrowthlabora productivity
drivenintegration
todynamicallyacceleratethetimelockedupintheoperationoflegacysystems
insteaddependency
estimated
to pass
70%3).
- Japanneeds
boostof productivity
growth,were
andadigital
is aand2.81% in ratio
overall
productivity(ExhibitJapan’slaboraandtotal
factor productivity
negativetomarketofofentrepreneurial
startups
attemptingtodevelopthe
2“agile systems” that run on mobile phones,
prime
lever
.
-0.17% and -0.11% respectively. Even compared with other developed economies such as the US,
the web, and in the cloud, no matter if it is for a governnext “big thing.” There are just 29 Japanese universiJapan’s capital productivity has dropped, with return on investment for non-financial companies inment agency, academia, or an enterprise.
ties with software-related programs, compared withJapan
23 percentage points less than equivalent companies in the US 1 .
1“Change-readyto becomethede rigueur
117 inthe UnitedStates.
“Howa private-sectorhastransformation
could
reviveJapan”, McKinsey Global
Institute,March 2015,
McKinsey.com.
2
Ibid.
attitudeor
culture,”
he
said.
Mike
Benner,co-chairof theICT Committee and aWith significant headroom for digital penetration across industries, government andeducation,
managing
partneratbusiness
consultancy
Japan has an opportunity to leverage digital in a new phase of growth in the next decade. GivenMB
thePartners,
Early
Educationsaidtheimportanceofdeveloping
synergies
demographic challenge - a shrinking workforce expected to reach 71 million by 2025, with a rising between
Japan Digital
Agendasolutions
Grahambelievesneed
be introduced
evengovernment
and the private
cannotisbe
dependency
ratio2030
estimated
toto
pass
70% - Japanneedsthea boostof productivity
growth,sector
and digitala over2 people first join a company, calling on
beforeyoungemphasized
and
there
is
a
desperate
need
for
both
prime lever .
the government to “aggressively promote digital skills
sides to accept and encourage the new ways in whichacross Japan, not just in colleges, but starting with the
we are all working.
1“How a private-sectortransformation
could
reviveJapan”,
McKinsey Global Institute,March 2015, McKinsey.com.
youngest
students
andcontinuingtoadulteducation.
“The eliminationof antiquated overtime rules
2
Ibid.
“Without basic digital literacy, any digital transwhich, in the past, have held workers hostage in theformation and adoption in business, education, or theoffice until the boss leaves, irrespective of their progovernment will be limited,” she said.
ductivity levels, should be a priority,” he said. “Rules
Japan Digital Agenda 2030
There is also a lot that the private sector can doaround compensation for intelligence-based workers
in this area, she pointed out.
need to be changed to better incentivize non-routine“If you focus just on the system integrator sector,
employees to work even more productively, eliminatingwhere the bulk of Japan’s digital talent is currently emnon-value-added tasks and the custom of working forployed, they can create internships to train high school
overtime pay.”
students, launch programs for employees to volunteer
Not only would these initiatives be relatively
in schools to teach digital skills, and sponsor ‘digitalstraightforward to implement, but they would have acamps’ and competitions among the youngest students
very fast and visible impact on the well-being of staff,
to get them interested early.”in the workplace and beyond.

Mike Benner
Managing partner
MB Partners
Co-chair
ICT Committee

Darren McKellin
Area director large
enterprise North Asia
Zscaler
Co-chair
ICT Committee
Vice-chair
Digital Transformation
Committee

THE ACCJ JOURNAL • APRIL 2021

We are truly delighted to participate in Japan Digital Agenda 2030,
contributing our perspective on Japan embracing digital transformation as
we build the future. Intel continues to engage with industry and government
stakeholders in Japan to identify and collaborate on steps toward this future.
I fully expect this paper will serve as a catalyst for conversations focusedaround the growth and prosperity of Japan’s people and companies.
—Kunimasa Suzuki
President, Intel K.K.
Vice president, Sales and Marketing Group, Intel Corporation

Intel and the Intel logo are trademarks of Intel Corporation in the US and other countries.

41

THE DIGITAL TRANSFORMATIONSHOULD … DYNAMICALLYACCELERATE THE TIME TO MARKET
OF “AGILE SYSTEMS” THAT RUN ON
MOBILE PHONES, THE WEB,AND IN THE CLOUD.

Foreign Influence
Analysts agree that Japan’s entrenched business culture will be thebiggest hurdle to overcome. But, they add, foreign firms have an
important contribution to make.
“It is going to require a broad-based effort—and I believethat ACCJ member companies have a role to play in this as well,”said Foster. “Our companies have led the growth and developmentof the digital economy in Japan over the past decade and have botha business interest and social responsibility in supporting digitaltransformation in Japan.”
The chamber’s Digital Society Coordination Group is working
with all ACCJ committees to examine ways in which companies
can show leadership in these areas, he said. Some of the initiatives they are exploring include: Supporting summer internships for the next generation ofsoftware engineers at US companies
 Funding scholarships for top Japanese students in computerstudies programs at US universities Raising awareness of, and providing practical experience in,dealing with cybersecurity challenges through hackathons Engaging in knowledge and experience-sharing with Japan’s
startup community“Obviously, this is a big job, and the resources of the chamber
and its member companies are limited, but I feel it is importantfor us to lead by example.”
Hanna firmly echoed that belief, adding that it is critical forthe foreign business community here to support the debate andengage in local politics.
“It’s not always easy to get behind closed doors within government, but that’s where digital policy is a sweet spot. Japanwants—and needs—to learn from examples offshore,” she said.
“It will do it in its own unique and kaizen way—that Japaneseapproach to continuous improvement—but the pressure is on to
do this quickly. That’s something Covid-19 has revealed. I think
we can expect more opening up between the government and theinternational business community, and occasionally that means
we will have to get in front of leaders and remind them we arehere and want to help.”

Darren McKellin, who jointly chairs both the ICT and theDigital Transformation Committees, sees grounds for optimism
in Japan’s corporate world. “Many Japanese companies are now
securely accelerating their digital-transformation journey, and
it is their top priority,” he emphasized. “These are the companies that will be able to compete on the global stage.”
And there are real-world examples that have underlined
the importance of the transformation, he points out, such as therecent SolarWinds security incident, in which hackers breached
the Texas-based tech company’s systems and injected malicious
code into its widely used IT management software. That has notgone unnoticed at Japanese companies, which are now aware theyneed to provide their workers secure connectivity to applications,regardless of their location.
“The shift in security is because workers need access to applications, not the network, which is fundamentally different from thefirewalls and legacy network security architecture that protect adata center—and were not designed for the digital era,” he said.
But Japanese companies do realize the need for change,
he added. The ICT Committee, for example, last year hosted apresentation by a senior official of Konoike Transport about thedigital transformation the company is implementing to move its
ICT infrastructure into the cloud, permitting a revolution in working styles. Konoike now has a 10-year business plan that includes
overseas expansion—and with virtually all the solutions comingfrom US companies, including OKTA, Inc., Zscaler, Inc., Amazon
Web Services, CrowdStrike, Inc., and others.
Yet, on the whole, Japan’s business world still falls far short of thecriticality required before digitalization can be declared a success.
“This is a massive opportunity for Japan but also its biggest
challenge, as I see it, since the industrial revolution came to Japan,”said Kirch. “It is going to be a tremendous challenge for some companies—and those in government—to entirely change the way they
think and have done things for years.
“But the potential payoff is colossal—and it’s important topoint out that the benefits will not only be in terms of the nation’s
companies and its economy. This sort of change could enablepeople to lead happier lives with less stress and greater free time.
And, I would say, that is the sort of future we should ultimately beworking together to achieve.” n

THE ACCJ JOURNAL • APRIL 2021

LAW

By Julian Ryall

42

SUNSET SEALWILL PANDEMIC AND DIGITAL AGENDA END THE HANKO?

J

apan is, in so many ways, stunningly technological. This is theland of the shinkansen and supercomputers, of spacecraft,cutting-edge medical devices, impressive software, and any
number of home-use gadgets that boggle the mind. Which makes
it all the more contradictory that this society has hung on so grimly
to a handful of archaic approaches to doing business, chief among
them the hanko (personal seal) and the fax machine.
And while the coronavirus pandemic has been a tragedy for
millions of people and a disaster for far too many businesses, theone silver lining in Japan might be that it has hastened efforts towean the nation off long-obsolete tools and to replace them with
up-to-date ones, such as the electronic signature.

Government Moves
In the early phases of the pandemic, the nation’s bureaucracy—
never one to adopt new concepts easily or quickly—accepted thathanko are no longer conducive to a modern economy. In late April
2020, then-Prime Minister Shinzo Abe ordered ministries to draft
new laws to get around the nation’s archaic dependence on seals.
The order came as many companies ignored government
requests to encourage staff to work from home and avoid public
transportation to help stop the virus from spreading. Senior officials
needed to be seated at their desks just so they could apply hanko tocompany documents. Without that bit of red ink, entire businesses
would have ground to a halt.
The campaign was given a timely boost in October, when
Taro Kono—newly appointed as the minister tasked with hacking
through Japan’s legendary red tape and reducing bureaucratic andcorporate inefficiency—declared war on the hanko and fax machine.
Within a week of his appointment, Kono had ordered all national government offices to halt the practice of requiring hanko
on all official documents, with that personal touch only required
for extremely important or sensitive paperwork.
In a letter distributed by the Cabinet Office, Kono instructed
every ministry to answer whether they intended to comply with

THE ACCJ JOURNAL • APRIL 2021

his directive, whether they would “consider” doing so, or if they intended to continue business as usual. Those that decided they weregoing to stick with the tried-and-trusted hanko were required toprovide an explanation as to the reason before the end of September.
“Why do we need to print things out on paper?” Kono asked
at a press conference outlining the campaign. “In many cases, it
is simply because the hanko is required. So, if we can put a stopto that culture, then it will naturally do away with the need forprintouts and faxes.”

Winds of Change
Where the nation’s bureaucracy leads—however reluctantly—
the business world follows. And that change in attitudes has
enabled lawyer Catherine O’Connell to breathe a sigh of relief.
“So much time is taken up with my corporate clients having
contracts executed by hand, with the seal held by a person at
the office,” said O’Connell, founder of Tokyo-based Catherine
O’Connell Law and co-chair of the American Chamber of Commerce in Japan (ACCJ) Legal Services and IP Committee.
“Generally, it is not permitted for a person to take the company
hanko out of the office, and even beyond the four walls of the legal
department in some cases. This has caused such a problem overthe past 12 months for many companies, because they need extra
approvals to be put in place—also, ironically, requiring a hanko to
be approved—and added security for a hanko to be kept at home,”
she told The ACCJ Journal.
The Japanese government’s strides in creating a hanko-freeenvironment “are certainly welcome in my field of commercial
law,” O’Connell said. “Electronic signatures have gone a long way
towards helping the situation for English-language contracts,
although the digital hanko for Japanese-language contracts has
still to take off as a viable option.
“I would really like to see the government work towards a
digital hanko with secure authentication mechanisms that can beused electronically for submitting documents,” she said, pointing

out that a domestic company has already developed thedigital hanko. But companies she has spoken with say
they haven’t taken it up largely as a matter of custom, as
it is not widely used by others. Legislation permitting the
hanko to be totally abandoned has yet to be amended.

Slow but Steady
ACCJ Legal Services and IP Committee Vice-Chair Aiko
Okada, who works in a local government, says the oldfashioned way of conducting administration is still considered the only way to serve all residents equally. “Eventoday, when many things are at our fingertips thanks to
the internet and smartphones, the government is still
reluctant to change the status quo,” she explained.
But change, she said, is coming. “Gunma Prefecture,
like other government agencies, required hanko formany procedures; but as soon as Kono made his announcement, many of them were revised and 97 percentof hanko requirements had been removed by the endof fiscal 2020.”
Mihoko Nishijima, vice-chair of the ACCJ Secure
Digital Infrastructure Committee, argues that sinceannouncing its decision, the government has movedquite swiftly in terms of regulatory reform. But attitudes among many users may take longer to change.
Already, the need for a hanko has been abolishedin 5,198 of the nation’s 14,992 administrative procedures, she said, and ministerial ordinance revision as
well as legal reforms are being studied.
“The government is committed to promoting theuse of electronic signatures as soon as procedures
are in place to ensure the integrity and authenticity
of documents,” she said. “Other details on the use ofcloud-based e-signatures are being incorporated into
Japan’s Act on Electronic Signatures and Certification
Business, so the government does see this is a userfriendly technology for its citizens.”

Seize the Moment
For Jim Weisser, change cannot come soon enough. A
serial technology entrepreneur since arriving in Japan
in 1993, Weisser set up SignTime K.K. in September 2020
to develop electronic signature services. And he saysthat the challenges brought about by the pandemic
have really served to focus leaders’ attention on theparts that are slowing down their operations. For many,
the hanko is an obvious place to start.
“It’s not just an issue of convenience; one thing thatthese folks are realizing is how much risk they havecentralized in their offices in the shape of their hanko,”
said Weisser, who is co-chair of the ACCJ Digital
Trade Committee. “Most companies understandthat a physical approval process based on moving bitsof paper around has problems, but they never did
anything about it. This is their opportunity.”
The concept is largely being driven from the inside
out, he said. Sales employees are enthusiastic about
electronic signatures as they no longer need to printout their paperwork, put a hanko on each page, scanit, and then send it. Electronic signatures “cut theirturnaround times dramatically,” Weisser said.
Next on his list to convince are human resources
departments. Once they are on board, Weisser believes
what is currently a “creeping process” will take off.
At present, Weisser estimates that between one
and two percent of all white-collar workers in Japan areusing electronic signatures. In the United States, thatfigure is five times higher. Yet he remains optimistic.
Weisser contributed to a paper by the chamber’s
Secure Digital Infrastructure Committee that concludes
an “obvious first step” would be legislation that allows
any digital signature to have the same legal standing as
a fax, considering that any digitally signed document isgoing to have a much more material audit trail than apaper fax with a hanko or signature.
“After that, there are a number of additional
methods which may be appropriate, including using
blockchain, providing photographs of the signatory, or
doing an associated video recording of any statutory
language that is required, which could also be attached
to an audit trail,” the report concluded.
The key, Weisser adds, will be to make the systemthat is adopted straightforward and user friendly.
Overengineering a solution will only serve to limit
market adoption. “It’s coming,” he said. “The changes
may be incremental at present, but we will get there.” n43Catherine O’Connell
Founder
Catherine O'Connell Law
Co-chair, Legal Services& IP Committee

Aiko Okada
Vice-chair, Legal Services
and IP Committee

Mihoko Nishijima
Vice-chair, Secure
Digital Infrastructure
Committee

Jim Weisser
SignTime K.K.
Co-chair, Digital Trade
Committee

Listen to this story:
accj.or.jp/soundThe need to apply hanko to documents has created obstacles to digital transformation.

THE ACCJ JOURNAL • APRIL 2021

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TECH

By Jim Weisser

As Easy As a Hanko

45

Cloud-based e-signatures solve the last mile challenge in digital transformationO

ne of the biggest challenges faced by telcocompanies and logistics players alike is solving the “last mile”—making the connection
between centralized hubs and individual endpoints.
In the quest for digital transformation, the pervasive
hanko presents a similar last mile problem.
While e-signatures have been legal in Japan since
the early 2000s, the larger hubs of digital transformation—businesses of all sizes—have the will and theresources to start a change. But the last mile of digitaltransformation—the end user or the gemba (actual
place) at businesses large and small that must interact
with the big hubs to conduct business—often lack thedesire, much less the infrastructure and expertise, tomove beyond the low-tech rubber stamp.

Opportunity to Change
Focusing on the IT problem of the large hubs—withlegislation, standards, and enterprise-scale solutions—
won’t solve the problem for the end user, internally or
externally. And that hurts everyone. When the benefitsof digital transformation are opposed by the gemba,
the overall impact of the effort is greatly reduced.
Employee dissatisfaction increases and those thataren’t able to satisfy the end user will be at a significant competitive disadvantage.
That’s a major challenge, but it’s also a tremendous
business opportunity—one that I’ve invested in withmy latest venture, SignTime K.K.
SignTime K.K’s mission is to make the benefits ofdigital transformation easily available to businessesof all sizes, with a focus on the end user of the service.
SignTime is a cloud-based e-signature solution that
simplifies document creation, e-signing, routing,tracking, and verification—all within a highly secureand customizable environment.

For a small or medium-sized enterprise, having
affordable and easy access to a full-contract lifecycle
management tool such as SignTime can make thedifference between being left behind and having
a competitive advantage. For a larger enterprise,
SignTime’s ability to customize its solution to the end
user’s needs as a clean, easy-to-use design ensuresthat documents sent by SignTime will be built, signed,sent, and delivered in a more timely fashion thanother available services.
Most importantly, SignTime can create real process
efficiencies in areas that are mission critical but not coreto the company’s product or service offering. Human
resources staff can devote more time to recruiting andspend less time on paperwork. Real estate agents can
automate much of the tedious back-and-forth flow ofcomplex documents that reduces customer satisfaction and delivers no added value. Venture capitalists
and startups can benefit from operational efficiencies
and faster processing times during crucial phases of
their business cycles.

Jim Weisser
Co-founder and CEO
SignTime K.K.

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Listen to this story:
accj.or.jp/sound

THE ACCJ JOURNAL • APRIL 2021

TECH

By Tim Romero

Classroom
Disconnect

46

The true reason for Japan’s critical developer shortageS
Tim Romero
Head of Google
Startups Japan
Host of the podcast
Disrupting Japan
www.disruptingjapan.com

ociety and the economy are changing at a rapid
pace, and it is now clear that the path forward forJapan is a digital one. That’s true for the world asa whole, but Japan is redoubling its efforts to make up
for lost time and become more globally competitive.
To this end, Prime Minister Yoshihide Suga hasestablished the Digital Agency to address the needfor government-wide digital transformation andwidespread sharing of currently siloed information.
Of course, seeing a need is always easier than meeting a need, and Japan has a lot of work to do before
that vision can be realized.

Education First
Succeeding in businesses in the years to come will
require tech-savvy staff. Building that foundation
starts with education—and not just at the university
level. Kids need to be learning to use tech to solve
problems at an early age. The Japanese government
announced in May 2019 that programming would
be added as a mandatory part of the curriculum inelementary, middle, and high schools starting in 2020,
2021, and 2022, respectively.

Kids need to be learning to
use tech to solve problems at
an early age.

Listen to this story:
accj.or.jp/soundThis is an important start, and to fully address
the shortage of programmers and highly skilled
tech workers—projected by government studies tonumber 430,000 by 2025 and 600,000 by 2030—wewill also need to find a way to ensure that students
are actually learning applicable skills.
On my podcast Disrupting Japan, I had a chance
to explore this topic with Masa Kato, founder and chief
executive officer of edtech startup Progate Inc., whichteaches programming online.
Kato said that Progate’s target is people in their
twenties and thirties who don’t currently work in theinformation technology (IT) sector but would like toshift to IT-related fields. But the platform, which waslaunched in 2014 and now has 2 million users in morethan 100 countries, is becoming more popular withteenagers in Japan—a great thing for the prospects ofdigital transformation.

THE ACCJ JOURNAL • APRIL 2021

The Hands-on Problem
One interesting thing about Progate is that Kato
started the company while still a student at the
University of Tokyo—and what spurred him to doso reflects a problem that still faces the country’s
educational system.
“When I first started learning programming, I wasin my third year of university,” he recalled. “That’s whenpeople started to choose their major at the University ofTokyo, so I chose computer science. That was my firstexperience with programming, and I wanted to learn
how to make web services and iPhone apps. I thought
programming was really cool, so I wanted to learn that,and I majored in computer science with high hopes.
But what I actually learned there was not quite what
I had expected. It was more academic.”
What Kato learned in this university programmingcourse was largely the history of programming, notthe hands-on skill of programming that is needed toactually make things and solve problems.
“That was interesting, and I’d love to learn it now
that I’m an actual programmer, but back then I wanted
to know more practical stuff,” he told me. “But the
professors didn’t really teach me that, which is understandable because they weren’t really doing thelatest web stuff.”

Course Correction
That disconnect between academia and application
seems to be at the core of the problem that has led toJapan’s shockingly low ranking of 38th globally whenit comes to developing digital talent.
“I think the problem with all these educational
institutions in Japan is that a lot of the teachers haveno experience in any practical programming, so thelack of teachers is a big issue,” Kato said.
This could be an obstacle for the government’s
introduction of mandatory programming courses inprimary and secondary schools as well, but throughplatforms such as Progate there is an opportunity tobuild a strong foundation of educators who can delivera generation of digital natives with the skills to keep
Japan near the top of the global economy.
If we can change the trajectory of education andteach real-world skills, as Kato is doing following his
own experiences in school, then the Japan Digital
Agenda 2030 has a strong chance of success. n

Corporate Sustaining
Member Companies
The ACCJ thanks these organizations for their extensive participation, which provides a cornerstone in the chamber’s efforts topromote a better business climate in Japan. Information as of April 22, 2021.

PRESIDENT’S CIRCLE

3M Japan Limited

EY JapanMorgan Stanley Japan Holdings Co., Ltd.

Abbott Laboratories/Abbott Japan LLC

Facebook JapanMSD K.K.

AbbVieFederal Express Japan Godo Kaisha

Naigai Industries, Inc.

Adobe KK

Freshfields Bruckhaus Deringer Tokyo

Nippon Boehringer Ingelheim Co., Ltd.

Aflac

GE Japan

Northrop Grumman JapanAIG Companies in Japan

Gensler and Associates/International, Ltd.

Oak Lawn Marketing, Inc.

Amazon Japan G.K.

Gilead Sciences K.K.

P&G Japan G.K.

Amway Japan G.K.

Goldman Sachs Japan Co., Ltd.

Pattern Energy Group Inc.

AstraZeneca K.K.

GR Japan K.K.

Pfizer Japan Inc.

Asurion Japan Holdings G.K.

Hard Rock Japan LLC

Prudential Financial, Inc.

Bank of America

HiltonPwC Japan

Bayer Yakuhin, Ltd.

IBM Japan, Ltd.

Qualcomm Japan LLC

Bloomberg L.P.

IHG ANA Hotels Group Japan

Randstad K.K.

Boeing Japan K.K.

IQVIA

Robert Walters Japan K.K.

Bristol-Myers Squibb K.K.

Johnson & Johnson Family of Companies

salesforce.com Co., Ltd.

Brookfield Asset Management

KPMG

Squire Patton Boggs

Caterpillar

Kraft Heinz Japan

State Street

Chevron International Gas Inc. Japan Branch

Lenovo Japan Ltd.

Uber Japan Co., Ltd.

Citigroup

Lockheed Martin

Visa Worldwide (Japan) Co., Ltd.

Coca-Cola (Japan) Co., Ltd.

Mastercard Japan K.K.

Walmart Japan/Seiyu

Cummins Japan Ltd.

McKinsey & Company, Inc. Japan

The Walt Disney Company (Japan) Ltd.

Deloitte Touche Tohmatsu LLC

MetLifeWestern Digital Japan

Delta Air Lines, Inc.

MGA Japan K.K.

White & Case LLP

Discovery Japan, Inc.

Microsoft Japan Co., Ltd.

Zimmer Biomet G.K.

ELC Japan K.K.

Mitsuuroko Group Holdings Co., Ltd.

en world Japan

Morgan, Lewis, & Bockius LLP

Want to join the American Chamber of Commerce in Japan?
We offer membership programs for entrepreneurs, executives, individuals, and companies of all sizes—
from small and medium-sized enterprise to multinational companies.
For details, visit accj.or.jp/join-us.

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