ITCA presentation for a Kirgiz visitor

・Cat: ICT
・Pub: 2008
・#: 0803a

08114u/18301r

Title

0. Contents:
1. Gobal competitiveness:
2. Stages of IT utilization:
3. Transiton of IT strategy of Japan:
4. National policies for vitalization of SMB:
5. History of ITC system:
6. Satisfaction with consulting services:
7. What is an IT Coordinator?:
8. Concept of Process Guideline:
9. Five phases of activities:
10. Steady increase of IT Coordinators:
11. Size of companies in Japan:
12. Distribution of ITCs' organization::
13. Update of qualification:
14. Empowering SMB by IT management:
15. Typical responses from top of SMB:

16. Collaboration with financital institutions:
17. IT management support project (Ouentai)
18. IT-management caravan
19. Strength of IT Coordinators:
20. Ned Hermann model:
21. How to become an ITC?:
22. Case workshop:
23. <Case> Tokaibane-1:
24. <Case> Tokaibane-2:
25. <Case> Tokaibane-3:
26. <Case> Tokaibane-4:
27. Commoitization of IT:
28. SaaS/ASP:
29. Commoditization of IT:

• On Dec. 19, 2007, I got the opportunity to make presentation for a visitor from Kirgiz (or Kirgyz) Republic with assistants others about the outline of IT Coordinator system and its function.
• The most significant feature of ITC is to make neutral advice for stakeholders of SMB, participating from the initial stage of establishing the clinect's corporate strategy and applying effectively the Process Guideline (PGL), as an Bible-like document.
• I think this idea could be applicable to SMB of developing countries as well as that of Japan; because they need not ask simple support from Japan in low technological field; or they can directly access to the state of-the-art IT technology in Silicon Valley if needed.
• The concept of IT-empowered management is particularly arranged to be fitted for Japanese SMB; whose methodology has been developed considering lots of similar authoritative resources and intelligence of the world.
• Twelve visitors from eight countries, mostly from Asia and Africa, came to IT Coordinators Association (ITCA) on Nov. 2, 2007, surveying the latest IT situation in Japan; for whom I made similar presentation, having various Q&A.

• 2007年12月19日に、キルギス共和国からの訪問者に対して、ITコーディネータ制度と機能についてプレゼンする機会があった。
• ITCの最も重要な機能は、多くの中小企業の幹部に対して、そのプロセスガイドラインの手法に基づき、経営戦略立案の段階から参加して、中立的なアドバイスすることにある。
• この手法は、日本の中小企業のみならず発展途上国の中小企業にも適用可能であると思う。彼らは日本にローテク分野の支援を依頼する必要はないし、また最先端IT技術は、必要ならシリコンバレーから直接学ぶことができる。
• IT経営の概念は、特に日本の中小企業向けにアレンジされ適用されるものであるが、その方法論は世界の多くの同様の権威ある知識を参考にしてきたものである。
• 2007年11月2日には、アジアやアフリカ中心に８ヶ国から12名が、日本のITの現状調査を目的としてITコーディネータ協会に訪れた。その際、小生が同様のプレゼンおよび意見交換を行った。

Key

• The term of "IT management, or IT-empowered management" is getting familiar among policy makers in Japanese government. (rather wishful thinking)
• As the central supportng function for ITCs, NPO organization of ITCA has to challenge to disseminate the system and effective usage of nationwide 7,000 ITCs in Japan.
• Kyrgyz Republic had been one of Republics of the former Soviet Union, but became independent in 1991 having its border adjacent to Kazakhstan in north, Uzbekistan in west, Tajikistan in south, and China in east; the population is 5M and area 199 sq.km, and its capital is Bishkek (former Frunze; name after Mikhail V. Frunze)

• IT経営の用語は日本政府の政策当局者の間に広まりつつある。希望的観測だが。
• NPO法人であるITCAは、ITCの中央の支援組織として、ITC制度の普及と全国7000名のITCの有効活用に引き続き尽力する役割がある。
• なおキルギス共和国は、旧ソ連の共和国の１つで、北はカザフスタン、西はウズベキスタン、南ははタジキスタン、東は中国と国境を接し、1991年に独立。首都はビシュケク（旧名フルンゼ)。人口5百万、面積199平方kmの中央アジアの国である。

>Top 0. Contents:

• This is prepared for two-hour lecture about the outline of ITC and ITC system.
• I tried to exchange views not only about the ITC system, but also other related topics of IT industry in Japan, from my viewpoint as a staff of sectariat of ITCA and an ITC.
  1. Background of IT policy in Japan
  2. What is an IT Coordinator (ITC)?
  3. Strenght of IT Coordinators
  4. Qualification Certification System
  5. A case ustilized IT Coordinators
  6. A new trend of IT technology
     • File: 7z19ITCApresen_eng22.ppt

>Top 1. Gobal competitiveness:

• This chart shows about global competitiveness mentioned in the Scoreboard published by Swiss think tank of IMD.
• Japan had been No.1 until 1993, and since then Japan had declined its position during decade long of recession in 1990s - so-called the Lost Decade.
• The left column includes rather stronger items, and the right includes weaker ones of Japan. It is a problem efficiency both in government and business are appreciated at lower rankings.
• The 2007 scoreboad of IMD says Japan has declined in IMD's evaluation from 16th to 24th, while China advanced from 18th to 15th.
  

>Top 3. Transiton of IT strategy of Japan:

• This is e-Japan, or lately expressed as "u-Japan" strategy of Japan, jointly promoted by METI for computer industry, and by MIC (Min. of Internal Affairs & Communications or Somusho) for telecom industry.
• The term of IT (=Information Technology) is usually used in Japan, but MIC preferably uses ICT instead, emphasizing the function of communication.

>Top 4. National policies for vitalization of SMB:

• This is a draft of 2008 budget of METI.
• Eg: budget of support for small companies: ¥15B (almost $150M) is not small.

>Top 5. History of ITC system:

• This is the history of IT Coordinators (ITC) system, starting in Jun. 1999.
  • ITCA was established in Feb. 2001.
• As a national policy ...
  • Started: June 1999
  • Recommended by: "Interim Report of Industrial Structure Council", an advisory committee for METI.
    • HR development to support economic recovery through strategic IT investment.
    • Trial program on building an environment for IT Solution Square Project (ITSSP)
  • Aiming:
  • 1) Enlightenment and support activities for introduction of IT, particularly for SMB: ITSSP project launched in 1999 (until 2004)
  • 2) Development of IT coordinators to support solutions CSOs aim.

>Top 6. Satisfaction with consulting services:

• End-users require neutral and authoritative consultancy with reasonable fee and availability.

>Top 7. What is an IT Coordinator?:

• Outline of ITC, usually explained by such bridging function between IT users and IT vendors.
  • ITC is also compared as Miyamoto-musashi, an great master of sword in 16-17C, who was an expert in manipulating two swords by two hands.
  • ITC should be talented in both Management and IT technology, just like two sword manipulation.
    
• Definition:
  • A professional who promotes and supports IT investment truly useful to business management through bridge functions between management and IT on behalf the corporate managers.
    
• Features:
  • gives advice on IT investment from a business owners's viewpoint, according to users' literacy and maturity level.
  • conducts consistent support from upstream consulting until confirming effectiveness of the investment through monitoring and control.

>Top 8. Concept of Process Guideline:

• This is the base of 'Process Guideline (PGL)', composed of five major processes and continuing activity of monitoring & control.

>Top 9. Five phases of activities:

• ITC' s activity starts from the participation in the most upstream; from establishing Corporate Strategy, then follows according to the supposed five phases of activities.
• Timing and concentration of activities are important; always considering what and when the actions should be done at particular timings, as defined the chart.

>Top 10. Steady increase of IT Coordinators:

• This chart shows how steadily ITCs have increased totaling over 7,000 as of 2007, however actual active number would be around 6,500 excluding some retired and inactive ITCs.

>Top 11. Size of companies in Japan:

• Definition of SMB in Japan and the background of ITCs.
• 75% of ITCs are corporate ITCs belonged to particular corporations which are mostly big ones; and of which 65% belong to vendors. This shows how IT vendors occupy majority number of ITCs.
• Vendor-ITCs are closely involved in day-to-day business as SIers, being engaged in upstream marketing or making proposals etc., which are mostly invisible from outside.
• 25% are independent ITCS composed of SME Management Consultants, Tax Accountants, and some Certified Public Accountants.

>Top 12. Distribution of ITCs' organization:

• There are 90 business-oriented ITC organizations in Japan, widely distributed nationwide, but concentrating in major cities like Tokyo, Osaka, and Nagoya areas.
• If we could consider that all 7,000 ITCs being a company-like or organized staff, ITCA would be regarded as a big virtual corporation covering all over Japan.　
• # ITCs organizations nationwoide: 169 (as of Sep.30, 2007)
  • # of business-oriented ITCs' organaizations: 90
  • # of study-oritented ITCs' ornaginzaions: 79

>Top 13. Update of qualification:

• ITC system is unique, which enforces all ITCs to continue to study or refine themselves in professional skills; 10 points as study point is required every year. One study point is calculated as 4 hours learning.
  • Condition: cumulative study points should be not less than 30 points
    • Ten points decreases every ear, additional ten points got by continuous studies are required annually.
    • One point is equivalent to four hours study.
  • Official studies or contribution for ITC activities:
    • Authorized study/seminar points: one point per four hours
    • Participation in ITC official activities, conference, or working group: one point per four hours.
    • Annual subscription of ITCA's journal 'Kakehashi (= The bridge)': two points
    • Annual subscription of recommended journals/papers: one point each

>Top 14. Empowering SMB by IT management:

• Why IT management is useful in empowering SMBs' productivity or management efficiency.

>Top 15. Typical responses from top of SMB:

• There are frequnetly observed responses from CEOs of SMB. The original idea was wriiten in a book titeles as "Recommendation of IT management" compiled by METI.
  • not interested in IT!
  • don't or won't understand meaning of IT!
  • doubtful about usefulness or getting profitable
  • no proper staffs inside!
  • too expensive!
  • no further IT!

>Top 16. Collaboration with financial institutions:

• Particularly in 2007, we promoted collaboration with JFS (Japan Finance Corp for Small Business) in Saitama, Osaka, and Nagasaki areas, as well as continue promotion in Nagoya and Hiroshima areas.
  • Collaboration with financial institutions:
    • support for creation of regional collaboration models: such as japan Finance Corp. for SMB, Regional Banks, Credit Associations.
  • Various Workshops:
  • Coordination with regional banks, etc.:
    • JFC for SB, Shockochukin Bank, Regional Banks and Credit Associations.
  • ITC conference 2007 (Oct. 19-20, 2007)
    • presentation and panel discussion of success stories by both corporate executives and ITCs.
  • Regional banks offers regional business leaders the necessity of management reform and IT utilization.

>Top 17. IT management support project (Ouentai):

• IT-Management Support Project is promoted by METI and its local offices, which started since Jun 2004 as three-year project, but it is extended even in 2008 or hopefully later.
• The object is to provide lectures for top manegement and CIO of SMB, as well as awarding100 excellent IT-management model cases.
  • Cf: www.itouentai.jp/
• IT Management Support Projects are organized in nationwide nine regions, supported by Regional Bureau of Economy, Trade & Industry.
• Mission of IT-Management Support Project:
  • to promote It utilization for management reform of SMB, and to strengthen competitiveness of companies.
  • ultimately to aim to enhance competitiveness of Japanese all industries.

>Top 18. IT-management caravan:

• IT-management Caravan promotion has begun since Nov. 2006.
• The first opening ceremony was held in Yukuhashi city in Kyushu, where Yamamoto vice-minister and other VIPs attended including ITCA chairman Mr. T. Seki.
• All wished a year-long safe journey and the project success with attendance of Japanese traditional Shinto priest. (Collaboration with digital know-how and analog tradition)
• Has visited nearly 100 days/places nationwide Japan as of end of 2007.
• Mission:
  • to address digital divide and literacy in rural areas and SMB in Japan, campaigning effectiveness of IT-Management by participating various local IT festivals and fora mostly presided by local Chamber of Commerce, attending with the Caravan Bus named “Challenge” equipped latest hands-on and demonstrations.
  • started since Dec. 13, 2006 until Mar. 31, 2008
  • visiting nationwide total 200 days in 15 months
• Nationwide Educational Activities:
  • to promote IT-Management to increase competitiveness of SMB in Japan.
    
  • to support HR development for re-challenge of women, aged persons, NEET, and part-timers
  • to disseminate e-Government policies, such as e-Tax, e-Application, e-Tender, etc.
  • to advance IT-based high-grade education.
  • to practice safe & secure networked society by collaboration of Industrial, Public and Academic sectors.
• <Supporting organizations>
  • IT Coordinators Association; Mr Seki, Chairman; Japan Chamber of Commerce & Industry, Mr Shinohara, Vice-Chairman; OCP Laboratory; The Association of Copyright for Computer Software (ACCS); National Federation of Construction Contractors
  • Association for Promotion Local Information & Communication (APPLIC); All Nippon Information Industry Association Federation (ANIA); TKCCorporation ;Japan Telework Association; Broadband School Association; Intel Corporation - Japan; Microsoft Corporation - Japan

>Top 19. Strength of IT Coordinators:

• This is summary of strength of ITCs.
• Wide viewpoint and professional know-how and know-who, and effective application of PGL and other key knowledge.
• Also it is key to keep neutral and objective position between the end-user and vendors.
  1. Broad range of ability covering management and IT.
  2. Solution proposal for management problem of client company.
  3. Practical know-how based on on-site investigation.
  4. Optimized solution between human and machine utilization.
  5. Communication & coordinating skills between stakeholders and persons concerned.　
  6. Being neutral and keeping fair stance

>Top 20. Ned Hermann model:

• Herrmann Model is well designed and useful to understand the types of human beings, which is particularly effective and interest in improving communication in and beyond organization. It is based on research of the latest brain physiology.
• In Japan, blood type analysis is widely believed, but it is a kind of superstition and has no reasoning at all.

>Top 21. How to become an ITC?:

• In order to become an ITC, applicants must receive 15 days long Case workshop as well as pass of ITC examination.
• The fee costs totally ¥520,000.

>Top 22. Case workshop:

• A snapshot of a typical scene of the Case Workshop, where participants aim to become ITCs.
• ITC instructors are eligible and well experienced experts, having mastered special course of teaching method

• 15 days case workshop:
  • Participants do a case study of all phases of consulting (from corporate strategy programs to operation services) through group discussion and role-playing.

>Top 23. <Case> Tokaibane-1:

• The typical success story of IT management.
  • Tokaibane Manufacturing is a SMB in Osaka, specialized in custom-made coils and springs for variety purpose, from nuclear power plant to tiny mobile terminals.
• Corporate overview of Tokaibane Manufacturing Co., Ltd.
  • Representative: Mr. Yoshiki Watanabe
    
  • Established: 1944
    
  • Capital: 96,440 thousand yen
    
  • Office: 3-7-27 Sagisu, Fukushima-ku, Osaka City, Osaka Prefecture
    
  • Number of Employees: 70
    
  • Outline of Business: Springs and spring products for machine tools, heavy
  • electrical machines, industrial machines, etc.
  • URL: http://www.tokaibane.com/

>Top 24. <Case> Tokaibane-2:

• The success derived from four-leaved advantaged: Web utiliztion, agile management,
  disclosure of latest spring technology, and less inventory.
• Mr. Yoshiki Watanabe, president of Tokaibane is an unique and attractive person.
• Support of IT Coordinators:
  1. to cultivate new customers using Web, because no growth is expected as long as relying on existing customers.
  2. to reduce excessive materials inventory.
  3. to reform organization into rapid management through information sharing.
  4. to disclose related-technology & know-how of the spring production so as to be acknowledged the company’s core competence
• “ IT coordinators hastened the company’s development” Y. Watanabe, CEO, Tokaibane

>Top 25. <Case> Tokaibane-3:

• Disclosure of various technological information about manufacturing
  of springs in Tokaibane's HP.

>Top 26. <Case> Tokaibane-4:

• Vsibible effect of IT Management:
  • New orders from the Web:
    • 100 companies in 2003, 209 in 2004, and 300 in 2005.
  • Amount of orders:
  • Yen 87 million in 2004
  • New coustoemrs:
  • Reserach offices of top universities in Japan
  • Research offices of major enterprise

>Top 27. Commoitization of IT:

• Three waves of price destruction in hardware, network, and lastly software.
• This chart is used at the lecture of Glocom, International Univ. of Japan in June-July 2007, where I cooperated as the moderator of the four-time lectures (SaaS, Offshore, Software HRD, and OSS) - SOSO series of lectures.

>Top 28. SaaS/ASP:

• SaaS/ASP is being a remarkable technology in IT software industry;
  which may drastically change of business of making software.
• Salesforce.com and Netsuite both came from overseas give big impact in IT market in Japan.
• SaaS is a kind of ASP, but it gives different order of magnitude to the software industry.
  
• SaaS is mostly used as front office applications (like CRM) , and particularly useful for SMB, but it is forecast to be used in mission critical areas as well as in midsize or large companies. (Eg. Japan Post, Banks)
  
• SaaS may compel to change of business model of software venders.
  
• SaaS also gives favorable wind to OSS.

>Top 29. Commoditization of IT:

Comment

• Most of the presentation are made by officially published materials of ITCA and others, but some are originally made or are compiled using various data by the lecturer.

• ほとんどの資料はITコーディネータ協会が公式に発表した資料に基づくが、一部は独自に作成し、または種々のソースからのまとめた。