Alliance Between Traditional and Tech Comapnies

Mitsui-Sumitomo Bank and GMO Payment Gateway announced that
they would establish new company that offer payment services.
GMO is the biggest payment company in Japan that supply payment
system for over 5.7 million e-commerce site.

Mitsui-Sumitomo Bank is trying to expand their payment business
and the Financoal Services Agency are discussing about loosening
the regulation.

The Affiliation between traditional financial companies and financial
technology companies will increase in the Japanese Market.

Hon Hai's Proposal to Merge Sharp's LCD Business

Hon Hai Precision Industry proposed to Sharp merging Sharp's
LCD business. Hon Hai also required Apple providing capital.

Hon Hai have eagered to buy Sharps LCD business because
they want to obtain Sharp's technology and manufacturing line.
The advantage of Apple for this M&A is they can keep the
competitiveness of suppliers. Sharp is also discussing about
forming partnerships with government organization INCJ(Innovation
Network Corporation of Japan), and then there is a possibility that
JDI(Japan Display) will buy sharp's LCD business.

LCD business has been core business for Sharp until now, but
it is difficult to continue to make profit in this field.
To succeed their LCD business to Hon Hai and get money for
investing next business is one of the good option for Sharp.

Introduction of Fintech Organizaion FIBC

ISID, Information Services International-Dentsu, Ltd. , is one of the big
system servicer which provides financial services. They are producing
FIBC,Financial Innovation Business Conference from 2007, and they hold
Fintech event every year.

In FIBC they hold pitch contest "FinPitch" and networking with financial
venture companies, financial companies, venture capitals and media.
Closed events are also held. For example "Fintech round table 2015" was
held on Jun 23 2015 and attendees learn Fintech trend abroad and topics of
ICT Europe Spring 2015.

Fintech is very potential domain in Japan, so the number of organizations
and events like FIBC will incerease in the future.

Component makers rush to automotive industry

Japanese electric component makers are trying to go into
automotive industry. Though they are enjoying good results
because of the smartphone demand now, they targeted automotive
industry as a next field.

There are enough possibilities for them to succeed in automotive industry.
Components used in cars are changing and increasing because;

-safety technologies are being developed and electric devices are
usually used like camera, sensors and electric steering that have
to be controlled by ADAS.
-infotainment needs a lot of electric component, and those components
are similar to smartphones.
-autonomous cars need sensors, high frequency components to connect
internet and computers.

All of the components are purely added components to present cars and need
high durabilities against many years and harsh environment, for example
high temperature and high humidity.To conquer those conditions, components
need high qualities, and Japanese makers have better technologies to make them
than other makers all over the world. Japanese electric makers can keep
advantage over competitors for more decades.

The dawn of Fintech in Japan is close

Fintech will gradually expand in the Japanese Market. Private companies and
the government are preparing for the Fintech businesses.

For example, NTT data is providing services to find alliance partners for
finance companies; Fujitsu made a consortium that consists about 100 ventures
and finance companies; IBM Japan released new services that support establishing
Fintech services by finding venture companies, constructing applications of smartphones
and analyzing data.

Regarding Japanese Finance Services Agency, they are discussing about loosening the
regulations for finance companies. The measures to regulate activities of commercial
businesses may be relieved in some years.

The surge of Fintech Wave will come to Japan in a few years.

UNIQLO is dreaming to ship their goods in 30min

UNIQLO, which is a Japan's biggest apparel retailer, is
thinking about globalization and digitalization. The president
Yanai said "We will apply a way of open innovation. We will
find and use new technologies and services from other companies."

For example they formed affiliation with leading companies;
Daiwa House to make logistics infrastructure, Seven Eleven
to sell and receive their clothes at convenience store, and
Accenture to refine digital customer experience.

Yanai also said, "In the future customers can receive their
clothes in 30 minites even if they are staying anywhere."
Does he think of using drone or other way? They are looking
for how to realize it.

Sony are yet straying of smart watch

Sony launched new smatphone "wena". This product is a fusion
of digital and analog. Sensors are equipped inside the belt,
on the other hand the display is traditional structure.

What we can do with this watch are "notifications", "electronic
money" and "record of activity". Therefore we cannot use this watch
like apple watch. We cannot read e-mail on the watch displays.
We cannot select music by touching the displays. We cannot look at
pictures on our lists.

However the display is analog, so Sony intends to form affiliation
with popular watch brands, and they intend to sell variety of
watch design with brand logo.

I think this functions are not enough. I hear from apple watch
users that they became not to use iphone because they can read
e-mail quickly. This behavior changes lifestyle to use mobile devices.
But "notification" function is not enough to change behavior.
There are a lot of substitution products.

I expect Sony more to make innovatioe product that change our lives
more useful and pleasant.

Sony started drone business

Sony established new company named "Arosense" that sells analyzing service by drone.
The KSF for drone businesses are the ability to design facinated services and analitics of data that are gathered by dorone.

Regarding services, there is a way to make businesses that use
drone effectively. For example Amazon are trying use drone,
and this will results in innovation for logistics services.
Drone can be used for security companies. If they use drone for detecting,
it will be very useful.

Regarding analitics, it is important to gather data and to
aquire ability to solve matters customers have.

I haven't heard the conclete strategy from Arosense.
I will be paying attention to the ability they will develop.

NetFlix will come to Japan.

NetFlix decided to form an affillation with SoftBank that is
famous for the aquisition of Sprint.

From the view of NetFlix, affiliation with telecom company
may help themselves acquire customers. It is usual for Japanese
people to watch TV show with free. We are accustomed to watch
TV program that are made by TV company that earn sales mainly
by advertising, not subscription fee from consumers.
SoftBank will give them strong sales channel because they are
good at selling contents we can use as much as we like with
low price, $3 to $4.

From the view of SoftBank, they would like to differenciate
themselves from competitors. They probably think NetFlix is
useful to do that.

NTT Docomo is already serving mobile TV program and
they have already gotten over 4.5million users. This competition
will become more harsh.

Unique Robot company "Cyberdyne"

Cyberdyne is a Japanese unique robotic company. They are
developing and selling robot suits named "HAL" that support human
functions and power; walking and lifting.
The way we use that is you attach that robot on your body first,
;second it will detect very weak signals in your body
to move your arms, legs, and trunk; third it will support your
movements spontaneously. Therefore you can lift something with
very weak power, you can walk even if you don't have enough
ability to walk.

Cyberdyne is struggling to make profit. Their result is red now
because they have to invest in developing and refining their robots
and they don't have enough sales. Whether they can find the way
how to use their robots and whether they can get customers
are still challenges for them.

Cyverdyne Home Page;
http://www.cyberdyne.jp/english/