Day5: Kenichi Ohmae

The reason: The prediction of future Chinese and mind of strategy.

He was born in Fukuoka, Japan. Dr. Ohmae got a bachelor degree from Waseda University and then a master degree from Tokyo Institute of Technology in nuclear physics, and doctorate in MIT in nuclear engineering. After graduation, he had worked for Hitachi as a design engineer for 2 years, and then he had worked for McKinsey & Company in Japan as CEO.

• As a Strategist

He is also one of good examples how physics can help thinking on business.

This book “the mind of strategist” was written in 1975 in Japanese. The American version of this book was published in 1982. Since I am a scientist too, the way of his thinking are very comfortable for me.  He was called Mr. Strategy. Even the strongest chess player in the world Gary Kasparov referred this book.

Anyway, this book consists from three parts which are the art of Strategy thinking, building successful strategy, and modern strategy reality. Even though he used Japanese companies as examples, you can easily adapt this idea. Why not trying?  This book teaches me how I can break the problem down to solvable. He wrote 100 books in Japanese though, one of good example is following, he wrote book about the emergence of the states in China at 2002 and the matter became very serious now.

• The Emergence of The United States of Chunghwa

He recently mentioned there are two stories about China in near future. One is that Beijing keeps controlling the whole China, stick to their power to control everything in China. I believe China should not go this way otherwise China will break soon. No one is happy to this situation. But, there is the hope. The other is that China develops as 6 mega regions state like the close concept of United States of America. Japanese will push China in this direction, so that we could do business and have win-win relation.

The nations don’t need to be unit in 21th century, from the points of view of regional economic activities, 3 million to 10 million should be the best. (For example of 5 million is Singapore, 6 million is Denmark.) The nations should be also important though, not so important the way in 20^th century.

Here is the basics idea, the China has 6 mega regions consist of followings. (Counting from the North) This book was written in 2002 almost 12 years ago, the number and current situation from his book need to be checked because in China was still very poor at that time. I do need to research again when I have time though, the concept is same, we should put China to have regional state and help them to develop by their selves.

1. Northeast China: the population 170 million (2002)

Northeast is the first industrial area in China. This area has strong connection with Japan. Since Japan occupied during the World War II. Japanese sat up infrastructure in this area. Many of call centers for Japanese, many students have come to study abroad in Japan.

2. Beijing and Tianjin area: the population 90 million (2002)

The capital area, at least 70 top level university and 200 of science and technology research centers for Chinese elites. Now they are moving from the factory of the world to the R&Ds center of the world.

3. Shandong peninsula: the population 90 million (2002)

The climate of this area is very close to Japan. This area is suit to export the crop to Japan.

4. Yangtze River Delta: the population 140 million (2002)

Yangtze River Delta is the center of finance and commerce in China. Also they have high level factories, such as Ericson, Siemens, Hitachi, Sony, and so on. There is much larger number of parts factories than those of Japan. 60000 parts companies were there at 2002.

5. Fujian area: 35 million (becomes 60 million if it include Taiwan)

Very close to Taiwan. I guess this area had changed so much recent 10 years, I am afraid of writing here.

6. Pearl River Delta. Around 90 million

This area has the world largest computer industry. IBM DELL, SANYO, PANASSONIC, Mitsubishi Electronic, Casio, and Honda are there. The factories which make parts are also good and prospering. For example, Japan largest cluster of factory is in Tokyo- Ohta-word which have 3500 companies (which was 8000 companies 40 years ago) the parts companies in Tokyo still have very competitive skill though, in Pearl River Delta had 50000 companies at 2002. I guess a lot of companies became obsolete, but large number of competitive companies should have survived.

This concept is becoming true, Chine is large country and we need to see the area with different of point of views. I agree with Ken Ohmae. These areas have independent power in China to keep prospering. Japanese push China to this direction. See what will happen in near future in Asia.