Synthetic Savants
Since the introduction of consumer-facing artificial intelligence applications such as ChatGPT and Google’s Bard, generative AI has transformed how people work around the world. How might it impact specific industries in the years to come?
As generative AI sweeps the world, how will it transform the way we work and innovate?
We live in an age of intelligent machines. Since the introduction of consumer-facing artificial intelligence (AI) applications such as OpenAI’s ChatGPT and Google’s Bard over the past year, generative AI has transformed how people work around the world.
From $40 billion in 2022, the market size for generative AI will balloon to $1.3 trillion over the next 10 years, according to Bloomberg Intelligence. First popularized through image generators, the technology has been applied in fields ranging from neuroscience to advertising, sometimes in surprising ways.
Generative AI programs like the large language models powering ChatGPT are trained on enormous volumes of data to sense patterns and predict how they will play out in a piece of content. These models can be trained on linguistic, financial, scientific, sensor, or other data—especially data that is uniform and structured—and can then create new content in response to user input. They have had remarkable success, particularly in image and text generation, and have seen rapid uptake in sectors ranging from education to computer programming. “This technology is set to fundamentally transform everything from science, to business, to healthcare … to society itself,” Accenture analysts enthused in a report. “The positive impact on human creativity and productivity will be massive.”
Powerful New Assistants
Generative AI first gained public attention thanks to its ability to change how we communicate through words, images, and video. It’s no wonder, then, that the world’s largest public relations company has embraced it. Edelman worked with OpenAI to launch the original ChatGPT-2 and delivered the first application in an ad campaign. In the spots for Hellmann’s Mayonnaise, the tool is tasked with finding new ways to use leftovers.
Edelman believes the technology will reconfigure the communications industry, but it won’t replace human ingenuity, strategic advice, and ethical decision-making that builds trust, said Meghan Barstow, president and representative director of Edelman Japan.
“We predict that AI will become an essential assistant in our work, helping to brainstorm, research, summarize, trend spot, monitor media, and generate content, among other tasks,” explained the ACCJ governor and chair of the chamber’s Communications Advisory Council. “The emphasis here is on ‘assistant,’ as we believe there will always be a human in the loop, that AI and people working together will provide the most effective and valuable work output.
“As with any technology, there are risks that require appropriate caution, education, processes, and policies to ensure the safe and trustworthy use of generative AI to protect our work, our clients, and end users from issues related to disinformation, bias, copyright infringement, and privacy.”
Similarly, lawyers such as Catherine O’Connell are also using generative AI as smart assistants. O’Connell is principal and founder of Catherine O’Connell Law and co-chair of the American Chamber of Commerce in Japan (ACCJ) Legal Services and IP Committee.
After taking a course on how to get the most out of ChatGPT, she has been using it for writing keynote speeches, article outlines, posts on social media, and skeletons of presentations. She compares the tool to a human intern, and praises its time-saving efficiencies, but warns that it should not be used for legal work, such as contracts or legal advice. Attorneys in the United States, she noted, have found themselves in trouble after producing legal filings referencing non-existent cases that generative AI simply made up.
“Generative AI is like a teenager that has a lot of promise but has not learned how to be a whole professional yet; it needs guidance,” said O’Connell. “However, in terms of an idea generator or idea expander, a time-saving device, and an assistive tool, generative AI is an asset. The rest falls to me to add my human touch to check and verify, to add my own personality and insights only I have, and to make the output my very own. I think generative AI is so good that its cousin, Google search, may be out of a job sometime soon.”
Smart Tools for Talent
Recruiting is another industry in which workers deal with mountains of structured data, in the form of resumes and online posts, that can be utilized by AI. Robert Half Japan, an ACCJ Corporate Sustaining Member company, uses a system called AI Recommended Talent (ART) to match resumes to client needs. The system speeds up matching for job hunters and employers, allowing staff to spend more time with clients.
“The real power of generative AI is how much it can integrate with our existing systems,” explained Steven Li, senior division director for cybersecurity. “We are piloting ChatGPT-4 integration in our Salesforce CRM. Studies have shown benefits from integrating generative AI into workflows. Other industry examples that highlight the benefit of integration include the GitHub CoPilot generative AI feature.”
The effectiveness of AI in recruiting has led some people to speculate that it could render many human recruiters obsolete. Deep learning algorithms are figuring out what a good resume looks like, and generative AI can craft approach messages and InMails, a form of direct message on the popular LinkedIn platform, noted Daniel Bamford, Robert Half’s associate director for technology.
“However, the real value of agency recruitment is not, and never was, a simple job-description-to-resume matching service,” added Bamford. “Agency recruitment done well is a wonderful journey of problem-solving, involving the goals of organizations and teams and the values and desires of individuals. Excellent recruiters will thrive. They will use AI’s capacity to handle simple tasks like scheduling and shortlisting. This will free up time for high-value interactions, delivering even greater value for their partners and industries through the human touch. The future of excellent recruiters will be brighter with AI’s support.”
Tracking Ships and Patients
Even a traditionally hardware-oriented industry like logistics is being transformed by generative AI. Shipping giant Maersk is using a predictive cargo arrival model to help customers reduce costs with more reliable supply chains. It also wants to harness the power of AI to recommend solutions when shipping routes are congested, advising on whether goods should be flown or stored, and better understand the sales process, Navneet Kapoor, Maersk’s chief technology and information officer, told CNBC.
Maurice Lyn, head of Managed by Maersk for Northeast Asia, also sees great potential in the technology. “The biggest changes that I foresee will be related to the enhanced visibility into, and agility of the management of, the global supply chains of our clients on an execution level,” he told The ACCJ Journal. “The data aggregated will allow logistics service providers [LSPs] to deliver predictive and proactive solutions to our clients. If clearly interpreted by the LSPs, stability and uniformity of costs and deliverables will be provided globally and locally to our clients.”
Generative AI may even help us live longer, healthier lives via long-term patient monitoring. Sydney-based medical AI startup Prospection recently launched its first generative-AI model in Japan to analyze anonymized patient data for pharmaceutical companies so they can better understand patient needs. A Japanese drug company, for instance, could look at cancer patient outcomes across the country and find that they are slightly worse in a particular region, possibly because less-effective drugs are prescribed there.
Founded in 2012 and operating in Australia, Japan, and the United States, Prospection now has data on half a billion patients. For the first 10 years, it was using traditional AI methods, but generative AI has opened new services for the company. Users can query Prospection’s AI services about typical pathways for patients who took a certain drug, or what therapy they underwent after quitting the medication. A Prospection model can predict whether a patient will experience a certain event, such as needing to be hospitalized, over the next year.
“The ChatGPT transformer model is trained on billions of sentences consisting of words. We see each patient’s journey as the sentence and events in the journey as the words. That’s the vocabulary,” said Eric Chung, co-founder and co-CEO of Prospection. “The data is very powerful. There are lots of insights to be gained from data on 500 million patients. It’s beyond the power of humans to analyze, but AI can do it.”
Renewable Ambitions
Japan has detailed ambitious plans for the wider deployment of renewable energy sources throughout the economy. Yet energy experts caution that Tokyo is unlikely to reach those targets unless policy changes are made.
Japan aims to mix up power, but are the targets achievable?
Japan has detailed ambitious plans for the wider deployment of renewable energy sources throughout the economy, with the government in October 2021 announcing the Sixth Strategic Energy Plan and setting a target of between 36 and 38 percent of the nation’s power coming from renewables in 2030.
That would be about double the 2019 level and significantly above the previous 2030 goal of up to 24 percent.
Japan’s target renewables mix would include up to:
- 16 percent from solar
- 11 percent from hydropower
- 5 percent from wind
- 5 percent from biomass
- 1 percent from geothermal
The contribution from nuclear energy was left unchanged, at between 20 and 22 percent. This will require a minimum of 30 reactors to be operational.
The targets tie in with the Clean Energy Strategy, unveiled by the government in May 2022, announcing an ambitious 46-percent reduction in greenhouse gas emissions in fiscal 2030 and carbon neutrality by 2050.
And, given the impact of instability involving Russia and in the Middle East, the two traditional primary sources of energy for Japan, combined with the yen at 10-year lows against other leading currencies, it would be in Japan’s best interest to dramatically reduce its reliance on imported energy.
Yet energy experts caution that Tokyo is unlikely to reach those targets as progress in the development of renewables has slowed, with fewer large-scale solar projects, delays in offshore wind generation, and local resistance hampering the acceleration of other technologies, such as onshore wind and geothermal power.
“Private capital markets are ready to invest in Japan, and both multinational and Japanese firms have developed technology and human resource pools to hit targets,” points out Andrew Statter, a partner at the Titan Consulting Group and head of its GreenTech division.
“However, policies and subsidies are unclear, and there are conflicts between ministries that are causing questions for investors while potentially profitable asset types, such as large-scale agrisolar, are not yet eligible for project financing,” he told The ACCJ Journal. “All of which puts a huge pause on the potential accelerated development that industry is ready to deliver.”
Japan needs to go beyond the “what” in its policies and clarify the “when,” “where,” and “how” to encourage investment, Statter said.
Favorable Winds
Turning to specific energy resources, Statter said offshore wind is critical as Japan has geographical and physical limitations on the volume of onshore renewables that can be developed. “With vast ocean resources, offshore wind is the ideal renewable technology which is proven and scalable to give Japan a shot at hitting renewable energy targets,” he said. “Key here is the need to accelerate floating offshore wind, as Japan’s waters become very deep quite close to shore.”
Statter also sees a secondary benefit to Japan’s expansion of floating technology. The country could become a technology exporter on a regional scale as Asia–Pacific markets embrace the technology.
Akira Amano, country manager of Invenergy Wind Development Japan GK, agrees on the importance of offshore wind to the nation’s overall energy goals, pointing out that “Japan has the right resources to become a global leader in renewable energy, especially offshore wind.”
He also concurs that significant challenges need to be navigated for the renewables sector to thrive.
“In order to accelerate progress and meet our nation’s goals, there will need to be long-term regulatory certainty, increased transmission capacity to deliver energy to customers, and long-term planning to address challenges like cost uncertainty.
Amano also noted that, with strong leadership, Japan can accelerate the build-out of clean energy and meet its energy goals in a timely manner.
Rocky Foundation
If the authorities are serious about making the most of offshore wind, Amano said, a number of regulations need to be revised, not least the unbundling of generation, transmission, and distribution at existing electricity utility companies to get rid of unfair competition. The sector also needs the authorities to increase the price for renewable energy certificates, he added.
Hideyuki Ohnishi, regional general manager for GE Renewable Energy in North Asia, agrees that Japan needs to make the most of its exclusive economic zone—one of the world’s largest—for offshore wind.
“The wind conditions, the speed and quality of the wind, is much better when you go to the seaside,” said Ohnishi. “In the mountains, there is turbulence and such, and average wind [speed] is not as strong. So, it is important for us to go to the places where we have better wind.”
Yet there are challenges, particularly in laying the foundations for turbines.
“We have to install big wind turbines in the sea, where the depth differs,” he explained. “Wave and seabed conditions have an impact. The geosurface is very important. Rocks and related conditions impact our design, and it’s not easy in terms of technology.”
Equally, the investment required to get the blades turning is significant, and projects must be considered in the long term.
The Japanese government is also pushing for 60 percent of the components in offshore wind farms to be manufactured locally.
General Electric started working with Toshiba in 2021, initially focusing on the nacelle at the top of the tower that houses all the critical components of the turbine. Construction of the nacelle is now largely done by local labor and with components utilizing the local supply chain, all of which will have a long-term benefit for the community, Ohnishi added.
Lofty Aims
While the government’s 2030 targets can be achieved as battery storage and grid technology improve, in tandem with innovations in the use of the grid, the 2050 targets are “a real moonshot,” Ohnishi admitted. “The 2050 goal is very, very challenging, but a majority of us have agreed to aim for it,” he said.
The Japanese government has also been a vocal advocate of hydrogen as an effectively limitless source of energy in the future, although questions are being asked as to whether this is the most appropriate path.
“Generally speaking, I think the industry and international impression is that Japan’s hyper focus on hydrogen to solve all problems has been outsized and unrealistic,” said Ken Haig, vice-chair of the ACCJ Energy Committee. “It is also too future-focused, relying on technologies that will not become commercially viable or scalable until well after 2030.”
Haig noted a comment made by former ACCJ President Glen Fukushima in a recent Kyodo News opinion piece: “Japan’s support for innovation in green hydrogen, perovskite technology, and offshore wind is the right move,” said Fukushima, “But METI should take a ‘yes, and’ approach by also immediately boosting funds to deploy existing clean energy technologies like solar and wind power—technologies that have already proven successful for Japan.”
Whatever the source, the renewables sector agrees that Japan’s need for home-grown energy is only going to intensify. The Sixth Strategic Energy Plan is billed as a rethink of regulations that have thus far inhibited development; for developers, the elimination of red tape cannot come soon enough.
2022 Person of the Year: Akio Mimura
On November 9, 2023, the American Chamber of Commerce in Japan (ACCJ) recognized Akio Mimura as the 2022 ACCJ Person of the Year. He was chosen for his efforts to bring the Japanese and international business communities closer together during his nine years as chairman of the Japan Chamber of Commerce and Industry (JCCI).
The ACCJ honors the Japan Chamber of Commerce and Industry honorary chairman for his enduring support of international businesses in Japan.
Photos by Miki Kawaguchi/LIFE.14
From left: ACCJ Executive Director Laura Younger, Akio Mimura, and ACCJ President Om Prakash
On November 9, 2023, the American Chamber of Commerce in Japan (ACCJ) recognized Akio Mimura as the 2022 ACCJ Person of the Year. He was chosen for his efforts to bring the Japanese and international business communities closer together during his nine years as chairman of the Japan Chamber of Commerce and Industry (JCCI).
The person of the year is normally honored in spring, but this year’s event was delayed due to the coronavirus pandemic.
During a special luncheon at The Place of Tokyo, the former chairman and president of Nippon Steel Corporation spoke about his long career.
The event began with a VIP session where ACCJ leaders greeted Mimura, after which ACCJ Executive Director Laura Younger welcomed guests and provided background about the award. ACCJ President Om Prakash delivered remarks and invited Mimura to the podium.
“I am truly honored to be nominated as the 2022 ACCJ Person of the Year, because 2022 was the year I concluded my 60-year business career, 51 years in the Nippon Steel Corporation and nine years as the chairman of the JCCI,” Mimura began.
“The last nine years have been especially worthwhile periods in my life,” he continued, noting that the coronavirus pandemic, during which he closed out his time as JCCI chairman, required action and guidance to protect the most vulnerable people and businesses, especially small and medium-sized enterprises (SMEs).
“I devoted my energy to three initiatives,” explained Mimura, who requested:
- Balanced measures to contain Covid-19 that allow free economic activity
- All possible measures from government to ensure that businesses survive
- SMEs use the pandemic as a wake-up call and promote self-reformation
“Luckily, Covid-19 is finally coming to an end, and most SMEs were able to preserve their business continuation,” he said. “Overall unemployment in Japan was kept very low, at 2–3 percent. Our real challenge is to position this pandemic and the worldwide inflation as a turning point, and to rejuvenate the Japanese economy, which has been stagnant for the past quarter century.”
Mimura shared that another great memory is encountering the philosophy of Eiichi Shibusawa. Born in 1840, Shibusawa played a key part in business development during the Meiji Period (1868–1912) and is often referred to as the father of Japanese capitalism.
“He was involved in the founding of 481 companies and played an active role in the launch of 600 social contribution institutes. Can you believe it?”
The latter especially resonates with Mimura.
“In recent years, I have been very heartened to see the increasing global interest in [strategic development goals] and stakeholder capitalism,” he said. “However, I have personally felt dissatisfied with the fact that this interest often remains only on the surface, limited to general overviews or investor-related presentations without translating into concrete actions.”
Shibusawa, he notes, insisted earnestly that business leaders should pursue profit but also contribute to the public interest, namely by enriching society and making people happier.
“He was not only a person of action but also a visionary leader,” Mimura said. “We business leaders must somehow achieve the harmony of private and public interests in our own way.”
A Matter of Demographics
The year 2023 will go down in history as the moment when global investors began to take a serious interest in Japan. Jesper Koll shares the four Japan megatrends you and your corporate strategy must seek to exploit.
Connecting four megatrends that will shape Japan’s future.
Yes, Warren Buffett had already started buying Japanese companies two years earlier, but it was in 2023 that the global mainstream followed. The combination of cheap yen, geostrategic realities, and a newfound can-do attitude among domestic leaders has put Japan back in play as a global contender. Leaders in finance, industry, and innovation around the world are now pressed by their boards to develop concrete Japan strategies. Yokoso! Welcome back! What took you so long?
This Time Is Different
Before we get too carried away by the current Japan hype, let me outline some key forces that, in my view, will work to create sustainable Japan opportunities over the next decades, for both global and domestic companies. Here are the four Japan megatrends you and your corporate strategy must seek to exploit.
1. Demographics Forces Industrial Consolidation
Japan has about 3.6 million companies, 2.5 million of which are owned and run by founders who will be over 70 years old next year. Of these, 1.6 million do not have a successor, a son or daughter interested in taking over.
This demographic reality has unleashed a growing tsunami of mergers and acquisitions (M&As). Businesses that were never for sale are now up for grabs. Your chances of partnering with or buying a Japanese company have never been better. The M&A wave will get bigger. Roll-ups and industrial consolidation will create unprecedented opportunities for global players to raise their market share and profit from increased economies of scale.
2. Freeing Up Household Wealth
Japanese households have accumulated some $30 trillion of wealth. About $20 trillion of this is in financial assets. The remaining $10 trillion is stashed away as tansu yokin, the famous mattress money.
Again, demographics is key to unlocking real structural change. About $12 trillion of these household financial assets are owned by people aged over 70.
This means $5 or 6 trillion—or 1.3 to 1.5 times Japan’s current gross domestic product—will become unfrozen over the next decade. Even after inheritance tax, this implies a significant boost to the purchasing power of Japan’s younger generation.
Make no mistake: the legacy of the legendarily high savings rate of Japan’s baby boomers will significantly boost next-generation purchasing power. Most economic forecasts completely ignore this wealth transfer effect, thus underestimating the potential growth in domestic demand.
3. From Seniority-based to Merit-based Pay
The war for talent is intensifying and will only get worse. Japan’s young generation feels its power, and the tables have turned. Graduates are no longer begging for jobs. Companies are begging increasingly scarce graduates to join. And retention of employees is becoming tough. According to several studies, as many as one in five University of Tokyo graduates now quit their initial employer within the first five years.
Importantly, employees don’t just want higher pay. They also seek greater responsibility and impact. If you joined a top Keidanren company in the 1960s, it took on average 13 years for you to become the general manager. Today it takes 24 years.
Companies which inspire and empower their employees will pull away from those that insist on the old ways. Labor mobility will surge, and companies that offer genuine and transparent career planning and merit-based compensation are poised to move ahead. Here, global companies still have a lead, but as local Japanese companies adapt, the war for talent—and thus the need for increasingly creative leadership—will intensify. The net result? Productivity will surge, and so will employee incomes—yet another reason why standard economic forecasts are too pessimistic on domestic demand.
4. Open-Door Japan
Japan will become an immigration powerhouse. Before the pandemic, the country was on track to accept about 150,000 new non-Japanese employees per year. This more than doubled to almost 350,000 in the first half of 2023. There are now approximately 3.2 million non-Japanese residents of Japan, up from barely half a million 30 years ago. Visa and permanent-residency requirements continue to ease. Most importantly, the biggest obstacle to employing non-Japanese talent—seniority-based rather than merit-based compensation—is beginning to change. All said, it is now perfectly reasonable to expect that about 10 percent of employees will be non-Japanese by 2030. That’s more than double the current rate of just below four percent.
Common Theme
Underlying these four Japan megatrends is demographics. Far from being a negative—fewer people must equal lower consumption—Japan’s demographics will turn out to be a catalyst for positive change.
- Industries will consolidate, thus allowing greater efficiencies and economies of scale.
- The mattress-money wealth of Japanese households will be freed and reenter economic circulation.
- Increasingly scarce labor will be empowered and gain purchasing power.
- And global talent will build careers and make their fortunes here in Japan.
Importantly, all these forces represent real structural change that will remain in place for the foreseeable future.
Predictable. Reliable. Full of opportunity.
Welcome back, Japan.
Equal Partners
In September 2018, the ACCJ released a viewpoint supporting marriage equality in collaboration with the Lawyers for LGBT & Allies Network (LLAN) and five other chambers of commerce. Here is where we stand today.
Five years in, the ACCJ’s campaign for marriage equality gains speed.
In September 2018, the American Chamber of Commerce in Japan (ACCJ) released a viewpoint entitled Support the Recruitment and Retention of Talent by Instituting Marriage Equality in Japan in collaboration with the Lawyers for LGBT & Allies Network (LLAN) and five other chambers of commerce. Five years later, the viewpoint has been endorsed by 139 domestic and international entities.
Across Japan, support for marriage equality is gaining momentum among the population, with 278 municipalities and prefectures now offering same-sex partnership registration. This includes the Tokyo Metropolis as well as major cities such as Sapporo, Osaka, Kyoto, and Fukuoka.
Traction can also be seen in the general population, with surveys indicating support for marriage equality of 44 to 82 percent, with stronger support among younger people and women.
Yet calls for marriage equality continue to fall on deaf ears in the Diet.
“This year, we did have the very first LGBT legislation, the ‘awareness bill,’ so that domino has fallen,” said LLAN co-founder and co-chair Alexander Dmitrenko. He noted that the watered-down language does little more than say, “Please be aware there are gay people out there.”
But there are ways to influence the national government, he said.
“One way is to really work with local governments to ensure that, to the extent they can support recognizing equality, they do it.”
Some prefectural governments, he said, have made strong efforts to afford greater rights to same-sex partners.
Dmitrenko said the LGBT community is very grateful for this, but warned that, when talking about this progress, “we need to be very careful not to dilute focus on the actual goal, which is equality. These move us a small step closer, but they’re not equality.”
A second way, he explained, is through the courts.
The impact of the ACCJ viewpoint can be seen in litigation efforts. In 2021, Sapporo District Court Judge Tomoko Takebe referenced the ACCJ position in a case brought against the government by three same-sex couples. Takebe ruled that prohibition of same-sex marriage is unconstitutional, but denied demands for compensation.
There have also been favorable outcomes in Tokyo, Nagoya, and Fukuoka. The message from the first-level courts was that there’s definitely discrimination. And, like Sapporo, these cases also referenced the ACCJ viewpoint.
“But ultimately, court cases, unlike in the US, can’t change the law. Only the Diet can,” Dmitrenko explained. “Yet, those cases create important pressure points.”
Growing support from Japanese corporations is also helping move the needle. The Business for Marriage Equality campaign had the support of 458 companies and organizations as of December 8.
The ACCJ issued an open letter to the government on April 21 stating the business case for marriage equality and protection of LGBTQ+ rights, and will soon release an updated viewpoint. Both can be viewed on the ACCJ website. Any company can endorse the viewpoint by contacting info@llanjapan.org.
Dmitrenko is confident that Japan will eventually join its G7 partners in recognizing same-sex marriages.
“It’s a very slow, local train to equality, making all the stops, getting everyone on,” he said. “Which is fine. Just a little faster, please.”
Bishop Scholar
Matthew Trani, the first recipient of the Bishop Family Memorial Scholarship Fund, arrived in September. The Long Island native shares his path to Japan and where he hopes the opportunity will lead him.
Matthew Trani, the first recipient of the Bishop Family Memorial Scholarship, shares what the opportunity means to him.
Trani performing at the ACCJ Charity Ball on December 2 at the Hilton Tokyo. (Photo: MediaSense K.K.)
Last year, on Christmas morning, Bill Bishop, his wife Izumi, and their daughter Sophianna lost their lives. The tragic death of Bishop, a longtime member of the American Chamber of Commerce in Japan (ACCJ), shook the community. Over 50 years, the South Dakota native became a key part of the US business community in Japan and a devoted leader of the chamber’s Healthcare Committee.
In his memory, the ACCJ and the United States–Japan Bridging Foundation launched the Bishop Family Memorial Scholarship Fund in July. The scholarship supports students who will come from the US to study at Temple University, Japan Campus, where Bishop was a lecturer and board member.
The first Bishop Scholar, Matthew Trani, arrived in September and, in addition to studying at Temple, began his internship at the chamber. The ACCJ Journal sat down with Trani to learn about his path to Japan and where he hopes the opportunity will lead him.
Tell us about your background.
I’m from Long Island, New York, and have been living there for the past 21 years. I went to high school and college about 15 minutes from my home.
Originally, I enrolled in Hofstra University to study music and political science. I got into music about 13 years ago, being strongly suggested to do so by my parents. I joined a chorus and learned to sing. That turned into an overall love of music. In high school, my voice matured, and it was good, so I ended up singing at a lot of functions. I performed at Carnegie Hall and sometimes on TV. And just this month I got to perform at the ACCJ Charity Ball.
When it was time to enter university, I was shopping around for scholarships and got a decent-sized one, along with a grant, from Hofstra. So, I went there. But other than the fact that I was a performance major, I really didn’t know what my plans were from there.
What got you interested in Japan?
I had to choose a language course, and my mom had taken Japanese at Villanova University. She recommended that I take it. I ended up studying Japanese for three semesters. In my third semester, I decided to switch to a double major in Japanese and music while keeping my minor in political science. I intended to study abroad or work in Japan after college anyway, but I wasn’t sure how it was going to line up.
I was thinking about applying to several places like the University of Tokyo, Kyoto University, Waseda University, and Keio University, but I ran into Temple University, Japan Campus and ended up going there because the college transfer between US universities is much easier.
How did you become a Bishop Scholar?
My major adviser in the US recommended that I apply for the Bridging Scholarship through both the American Association of Teachers of Japan and the United States-Japan Bridging Foundation, which partners with other organizations in Japan, including the ACCJ. I got a notice of acceptance in mid-June. With it came an intriguing email from Tom Mason, executive director of the Bridging Foundation. He said: “I have an opportunity that I think you might like. Reply back with a time either tomorrow or the day after so that we can do a Zoom call.” There were no other details.
I thought, “What else could this be?” I already knew that I had been awarded the Bridging Scholarship. On the call, [Mason] explained that the ACCJ was looking to establish a new scholarship in remembrance of Bill Bishop. Because of Bishop’s activity as a board member and lecturer, the scholar was to be a Temple University student in Japan, and they wanted to award me the scholarship.
What are your first impressions of the ACCJ?
I would say the interactions are very community focused, even among staff. Everybody looks out for each other, and they want you to push yourself, but not too hard. I can learn a lot and be able to work in ways that I hadn’t previously. And I like that the chamber is not really partisan in any way. They’re about what they can do to best support member businesses in Japan and the lives of foreigners as a whole.
What do you want to focus on?
I have been very involved in assisting at events but, given my background in political science, I would like to be more involved in external affairs. Generally speaking, I want to get more people’s opinions on the organization and the greater business community in Japan. Events are the best way to do that, and I think I’m already there in some respects.
Has there been a favorite event?
I really enjoyed the How Technology is Driving Innovation in Healthcare event. I found it interesting despite not being involved in that industry at all. I think, sometimes, not being involved makes it more interesting, because you don’t really know what the new innovations in those industries are. The event gives you a glimpse into what’s being worked on that you otherwise wouldn’t know about.
What do you most want to gain from the internship?
Number one is making new connections. I think I’ve been doing that and, fortunately, I have a lot of time to continue doing so. Second is an understanding of day-to-day operations. I had never worked in an office environment before the ACCJ, and I want to get a sense of how that works.
Trani will intern at the ACCJ until April 2024 and is expected to graduate from Hofstra University in May after completing his studies at Temple University, Japan Campus.
Bridging Nations
The 75th anniversary of the ACCJ is an important time to reflect on all we’ve accomplished, how far we’ve come, and how much more there is to achieve. As we find ourselves in a much more complex world the ACCJ must be agile and adapt if we are to continue serving our purpose and our members.
On 75 years of shaping US–Japan business relations and our evolving role.
The 75th anniversary of the American Chamber of Commerce in Japan (ACCJ) is an important time to reflect on all we’ve accomplished, how far we’ve come, and how much more there is to achieve.
The ACCJ was founded in 1948 by 40 companies. Today, the chamber comprises nearly 600 companies and 3,100 members.
The mandate 75 years ago was clear: to further commerce between the United States and Japan, to support Japan’s economic recovery following World War II, and to improve the international business environment in Japan. Today, the two nations have one of the world’s most important alliances. Based on shared values, the bilateral relationship is the cornerstone of peace and stability in the Indo–Pacific region.
As we find ourselves in a much more complex world—one that is changing rapidly—the ACCJ must be agile and adapt if we are to continue serving our purpose and our members.
State of the Chamber
Over the past year, through strong advocacy and high-caliber speaker and networking events, the ACCJ has proven why it is known as the voice of global business in Japan. This is a tribute to all the contributions of our members, who are the lifeblood of the chamber and drive its activities.
We’ve made significant progress on the four priorities tied to the ACCJ core pillars that I outlined at the start of the year:
- Maximize advocacy impact
- Increase in-person networking
- Improve committee efficiency
- Deepen community service
We’ve seen great strides in key advocacy areas: strengthening the US–Japan security and economic partnership, digital transformation, and promoting diverse talent, including marriage equality in Japan.
Our many engagements with US and Japanese government officials—including during both the DC and Diet Doorknocks—highlighted how policymakers trust the ACCJ as a resource on US and international business issues in Japan. We’ve strengthened relations with stakeholders across both sides of the Pacific and continue to make our positions heard on key issues impacting US–Japan relations.
Act Fast and Be Decisive
As I mentioned, the world is changing and the ACCJ must continuously improve itself to remain effective. I started my career as a fighter pilot, and the key to winning in aerial combat is to make decisions in an ever-changing environment. We called it the OODA loop—observe, orient, decide, act. The pilot with the faster cycle was usually the winner. The same applies to business and the chamber.
The US–Japan relationship is at its highest point ever. Good times like this present the best opportunities to get the most done and have the difficult conversations, and the ACCJ and our members have a critical and relevant role to play.
This year also marks the end of my presidency. I thank all my fellow board members, committee leaders, and ACCJ members for their contributions and support. Personally, and professionally, it has been a privilege to work alongside you. I learned so much from our members and made many friends.
I’m honored to pass the reins to Victor Osumi. I know he will do an amazing job as your next ACCJ president.
I strongly encourage more members—especially our newest members—to participate and get involved. We need your passion, expertise, and voice to continue effecting much-needed change.
Seven-and-a-half decades after its founding, the chamber continues to thrive and grow, and I’m confident that, whatever challenges lie ahead, all of you will advance our strong 75-year legacy and further enhance the US–Japan business environment as well as our alliance and friendship.
I wish you all a safe, healthy, and prosperous New Year, and look forward to participating in the ACCJ’s success in the future!
Ancient Trails, Modern Tales
Many visitors to Japan are familiar with the Tokaido Shinkansen. What they may not know is that the tracks run alongside an ancient route built not for bullet-train carriages but rather palanquins. We take a tour through Kanagawa Prefecture to explore past and present.
Traversing Kanagawa reveals paths from long ago and comforts of today.
To keep feudal lords loyal during the Edo Period, the Tokugawa shoguns forced them to live in the new capital of Edo every other year. And when they returned to their home province, they had to leave their families behind in the capital as hostages.
The back-and-forth journey they had to make was long, something we discover firsthand on a hot and sunny autumn day under the guidance of local Shin Kaneko. As the nationally licensed tour guide leads us along a stone-paved road running through the beautiful forest—beams of sunlight piercing the leafy canopy of towering cedar trees—we find ourselves on a trek made by nobles and commoners alike for hundreds of years.
Many visitors to Japan are familiar with the Tokaido Shinkansen. What they may not know is that the tracks run alongside an ancient route built not for bullet-train carriages but rather palanquins. Thankfully, unlike passengers of old, today’s travelers need not bite on rope to protect their tongues from the rough ride.
Born and raised in Hakone, Kaneko also spent six years in France and five in the United States growing up. Later, he studied business at the University of Southern California and set off on a career as a strategist for Japanese retail giant Aeon Co., Ltd. But the call of home—and nature—grew louder and louder, and he left Tokyo life in 2015 to make his way back to the lakeside haunts of his childhood.
As Kaneko observed English-speaking visitors staring holes through maps as they tried to guide their own way, he decided to create Explore Hakone, a bespoke agency that provides tours limited to one group per day. And by group, I mean a family, a couple, or a solo adventurer. This personal treatment has made Kaneko’s adventures very popular among those seeking to experience authentic Japan. And today, we get to experience it for ourselves.
The development of the Old Tokaido Road, Kaneko explains, is tied to key events in Japanese history, and the preferred paths through the Hakone area have changed over the centuries. Some 1,300 years ago, during the Nara and Heian Periods, people used the longer, flatter Ashigara Mountain Pass to the north, which runs along the border of Kanagawa and Shizuoka Prefectures. But when Mount Fuji erupted in 802, the path was covered in ash and became difficult to traverse. Travelers began opting for the shorter but more mountainous route we are taking today.
I can only imagine how difficult the climb up and down these hills must have been in those days, when the path was paved with thinly cut and dried bamboo. It wasn’t until 1860 that the large stones which now mark the trail were put in place.
As we make our way through the tranquil woods on our seven-hour, 6.5-kilometer hike, Kaneko shares an enormous amount of the trail’s fascinating history.
The section of the 500-kilometer Old Tokaido Road that we’re traversing is known as the Hakone Hachiri, the 32-kilometer stretch between the Odawara and the Mishima post stations. Hakone Sekisho is located at Lake Ashi, one of 53 checkpoints erected by the Tokugawa Shogunate. Due to the very steep climbs—the total elevation change is about 900 meters—travelers during the Edo Period needed regular breaks. There were once nine teahouses on the route offering refreshment. Today, just one remains: Amazake Chaya.
We stop for an energizing cup of amazake, the warm non-alcoholic rice drink from which the rustic rest stop takes its name. Paired with two surprisingly filling pieces of mochi rice cake, the amazake was a welcome respite, as it must have been for those ancient sojourners.
While rejuvenating for the next leg of our journey under the thatched roof of history, we talk to Satoshi Yamamoto, the current owner of the business that has been passed through his family for 13 generations.
For more than 400 years, the doors of Amazake Chaya have been open, every single day. The only time they were closed was for a brief period during the coronavirus pandemic.
“I want to keep the teahouse as it has always been, serving people in a traditional way,” Yamamoto says. “Although we own the teahouse, the atmosphere is created by our customers. We only provide service. The culture and story behind [Amazake Chaya] have been made by travelers for centuries.”
He says he also enjoys meeting travelers from abroad and learning more about other cultures while sharing his own.
“While the world might change, communication between us and the travelers will never change,” Yamamoto adds. “They may have different outfits, they may speak different languages, but the concept of welcoming guests will always remain the same.”
Back on the road with renewed energy, we pass across one of the highest points between Tokyo and Kyoto and begin our descent to Lake Ashi, our final destination.
As we near the Hakone Sekisho checkpoint, we walk under the shade of 400-year-old cedar trees planted by the shogun to shelter travelers from the elements at this key point of their long journey. A nice gesture. But off in the distance is Otamaga Pond, named after a woman who was captured and beheaded for sneaking out of Edo. So, while the shogun could show kindness, he also showed no mercy. You played by his rules. But those rules also brought peace to Japan after nearly two centuries of civil war and upheaval, allowing art and culture to bloom and the society we know today to take shape.
Kijitei Hoeiso
After the long hike along the Old Tokaido Road, my legs are demanding a reprieve. Fortunately, Kijitei Hoeiso ryokan was happy to oblige.
Nestled in the verdant hills of Hakone, the traditional Japanese inn is a delightful escape from the stresses of modern life. Like Hakone Hachiri, Hoeiso transports you to a simpler time when nature was an integral part of life.
We are welcomed by the inn’s owner, Kenichiro Hara, who shares a bit of the property’s history as we gaze out windows that dissolve against the lush backdrop of the mountainside. In the distance, we see the open-air hot springs we’ll visit later tonight.
And as a tease of the delectable flavors to come, we are offered yumochi, a traditional Japanese sweet made of rice flour. During my 27 years in Japan, I’ve enjoyed many such sweets, but this is truly a standout. (I even went out of my way to visit the shop near Hakone Yumoto Station the next day and buy more as gifts.)
After the exertion of the day’s hike, I’m certainly feeling peckish, and a highlight of my stay is the cuisine. Hoeiso is renowned for its menu that features pheasant—a game bird often associated with the British countryside that is actually native to Asia—and the chef’s creativity does not disappoint.
Of particular note is how Hoeiso can accommodate various dietary needs and preferences. While the pheasant menu is very popular, vegetarian options are readily available—something not easy to find in Japan.
I opted mostly the standard course, but, because I do not eat most seafood, Hoeiso prepared a course that was perfect for my palette. This is often a sticking point for me in Japan, but is no problem here.
Steamed pheasant egg custard with ginger and tri-colored dango dumplings lead the way ahead of pheasant round with salt from Sado Island, sashimi of fresh pheasant breast with ponzu, and pheasant and shiso porridge. Just highlights of an overflowing kaiseki course dinner bursting with color and flavor.
As dusk gives way to the darkness of night, I grab my towel and make my way to the private outdoor onsen situated alongside a mountain stream. I cannot adequately express how rejuvenating it is to sit alone in the steaming water, the sound of the trickling stream dancing in the background as I look up at the twinkling stars in the pitch-black sky. I’ve rarely felt so connected to the universe as in this moment. It’s as if the energy of distant worlds is flowing around me.
Retiring to my spacious room, I gaze out the windows at the night sky that is normally obscured by city light and recall those childhood evenings of stargazing in my grandmother’s countryside front yard.
Carefully prepared amenities make for a restful night.
The next morning, Hara and several Hoeiso staff see me off as I board the bus to Hakone Yumoto Station. An impeccable ending to an absolutely relaxing stay.
Kamakura Gardens
From Hakone, we make our way around Sagami Bay to Kamakura, seat of the first Kamakura shogun, Minamoto Yoritomo, more than 400 years before the Tokugawa shogunate developed the Old Tokaido Road. But we’re not here to see the usual landmarks such as the Great Buddha. Instead, our journey today takes us around the historic city to explore its rich heritage through gardens.
We meet our guide, Saori Imoto, just outside Kita-Kamakura Station. Imoto is a garden designer who studied in Japan before moving to the United Kingdom. The Kamakura local joined her husband there when he was transferred for work and found the perfect opportunity to build on her love of horticulture. Studying in London, she became an expert in English garden design and has won multiple awards for her work. Since returning to Japan, in addition to crafting landscapes for clients, she has been sharing the beauty and history of Kamakura with visitors through private guided tours.
Central to our adventure are the area’s Zen temples, home to many of Kamakura’s most beautiful gardens. And our first stop is Engaku-ji. Founded in 1282, it is one of Japan’s most important temples and the second of what are known as Kamakura’s Five Mountains or Gozan.
“The reason I choose this temple,” she explains, “is that it has a beautiful Japanese garden and is surrounded by mountains, so we can see a lot of natural scenery as well.”
As we approach the Butsuden main hall, small children from the nearby kindergarten are practicing in the courtyard for their upcoming undokai, or sports day. Surrounded by a circle of seven juniper trees, they run, jump, and laugh as popular kids’ music plays on portable speakers. It’s a striking juxtaposition of ancient and modern culture and traditions.
The excitement of the children also contrasts with the reason we find evergreens here.
“Zen temples are very strict, and the monks need to concentrate on meditation and train very hard every day,” Imoto explains. “If there are a lot of deciduous trees, like cherry trees or Japanese maples, the monks can enjoy the seasonal transformation. They’re not allowed to do that, so Zen temples prefer planting evergreen trees, which create a calm and unchanging atmosphere, and show longevity.”
And the reason for seven? “Odd numbers are believed to bring good fortune,” Imoto says. “When we plant symbolic trees, we never use even numbers; we use odd numbers, because they cannot be divided.”
After touring the temple’s halls, we come upon a tranquil garden that reflects the landscape of Japan. A small pond at the center represents the sea, undulations conjure mountains, and gravel paints the coast.
To Western eyes, the lack of color may seem unusual. But, Imoto explains, there’s a reason for the absence of flowers. “In Japanese gardens, we try to replicate the natural scenery of Japan.” That means mountains, not fields—some 70 percent of Japan is mountainous. “Mountains are covered with trees, so we use a lot of trees instead of flowers,” she adds. “This creates a calm atmosphere, highlighting the simple beauty typical of Japanese gardens.”
In need of a rest, we stop at Butsunichian, an open-air café on the temple grounds that serves green tea as well as other light drinks. The tea is refreshing—I opt for hot matcha despite the unseasonably warm day—and am soon ready for the hike to our next destination.
As we leave the temple grounds and walk along backstreets, the lack of tourists is noticeable. While Kamakura teems with visitors, we’re enjoying a quiet tour using routes only the locals know. And we’re learning a great deal about the area along the way as Imoto shares details about the hidden spots we pass.
After a long walk, we arrive at Eisho-ji, Kamakura’s only nunnery, founded by a wife of Tokugawa Ieyasu in 1636.
The grounds are covered by higanbana, or red spider lily. This striking flower, Imoto explains, is a symbol of Ohigan, a Buddhist period that falls around the spring and autumnal equinoxes. Higanbana mark the September observance. During this time, whose name means “other shore,” Higan, the world of enlightenment, and Shigan, our own world of greed and earthly desires, are believed to come closest to one another. This makes it the ideal time to remember those who have passed and to focus on spiritual awakening.
To end our exploration of Kamakura, we visit a cemetery at nearby Jufuku-ji Temple where Hojo Masako, the wife of the first Kamakura shogun Minamoto Yoritomo, is said to be buried. Masako was key to Yoritomo’s success and the power of the Kamakura Shogunate. Following his death in 1199, she became a nun but continued to yield great influence over the government until she passed away in 1225.
As we search for her final resting spot, we cross paths with a group of students who have dropped by the graveyard after school. Given Masako’s place in history, Imoto notes, they study about her in class and are curious to see the tomb firsthand. Like us, they use smartphones and GPS to locate the alcove tucked away in the back of the grounds.
As has happened many times during our two days in Kanagawa, past and present intersect in ways that highlight just how far back the history and culture of Japan stretch. There’s also something new to learn and explore.
Learn more and plan your visit …
Hakone Reset
✉️ info@explore-hakone.com
Kijitei Hoeiso
✉️ kiji@hoeiso.jp
Kamakura’s Gardens
✉️ info@mitate.kyoto
November 2023 Event Highlights
View a collection of photos from the ACCJ’s November 2023 events.
From left: ACCJ Governor John Carlson, Governor Mark Hosang, Governor Meghan Barstow, President Om Prakash, Special Advisor Jenifer Rogers, Vice President Robert Roche, and Treasurer Steve Briggs pose at the 16th Chubu Champagne Ball and Awards Evening, held on November 17 at the Hilton Nagoya.
The American Chamber of Commerce in Japan hosted 55 events in November 2023. Among these were:
- Conversation with Takami Former CEO Yuji Okamura
- G7 Competition Enforcers and Policymakers Summit Side Event
- Chubu Walkathon Charity Fund Presentation Ceremony
- AI in Marketing and PR: The Winning Formula
- 2022 ACCJ Person of the Year Award: Mr. Akio Mimura
- Nomu-nication: Celebrating the Reunion with America-Japan Society
- Celebrating Seisho Kondo: Community Champion
- Sales Support Alliance November Meeting
- ACCJ & JASO Thanksgiving Party
- Welcome to the Wild, Wild West! The 2023 ACCJ/TJCS Champagne Ball and Awards Evening
- Healthcare x Digital 2023: Generative AI: Boosting Healthcare
- Kansai Tech Series #11: Long-chain DNA Synthesis and the Potential of Biofoundry for Gene Therapy
- ACCJ-CSC: Urban Gardening 2023 (Part 2)
- Diversity & Inclusion Summit Series 2023: Unleashing the Power of Inclusion, Day 3
Here are some of our favorite highlights.
Cities on the Hills
While Tokyo has established itself as one of the world’s leading urban centers, it can still improve its cultural magnetism, livability, and attractiveness for overseas businesses. Helping the city rise in the world’s esteem by gradually transforming Tokyo is at the heart of Mori Building’s mission.
Mori Building’s signature complexes connect communities
Azabudai Hills
In our globalized society, it is only natural to compare cities to one another—assessing their relative strengths and weaknesses to help us determine exactly where they stand in the world.
And while Tokyo has established itself as one of the world’s leading urban centers, it can still improve its cultural magnetism, livability, and attractiveness for overseas businesses.
Helping the city rise in the world’s esteem by gradually transforming Tokyo is at the heart of Mori Building’s mission. And central to this goal is the development of its Hills projects, starting with ARK Hills in 1986. This was followed by Roppongi Hills in 2003; Toranomon Hills, with its four distinctive towers and new metro station that were in development from 2014 to 2023; and finally, Azabudai Hills, which just opened in November.
The Hills are the brainchild of late Chairperson Minoru Mori, who espoused the concept of “vertical garden cities,” which are based on the ideas of the famed architect Le Corbusier and infused with advanced technology and modern perspectives. The complexes are built tall, on single large floor plates that have been created out of small plots of land, which Mori aggregates by negotiating with individual landowners over decades.
As well as being architecturally impressive, these complexes are united by common themes. They are green, they are locations that improve the safety of their surrounding neighborhoods, and they offer a stimulating cultural atmosphere.
Azabudai Hills Food Hall
A Green Base
When visiting the Hills, you are not only struck by the towering skyscrapers that are the complexes’ hubs, but by the greenery that can be found at their ground levels.
As Mariko Murata from Mori Building’s Environmental Promotion Unit explains, nowhere is this more apparent than at Azabudai Hills. “Based on the design and concept by Heatherwick Studio, who designed the landscape of the low-rise area of Azabudai Hills, about 320 plant species have been selected that express each season. For example, the Central Square is planned around deciduous trees from the native vegetation of the area, so that visitors can feel the changes of the four seasons.”
She points out that by building high on a large scale, the Hills projects are not only able to support beautiful green spaces but also be more environmentally sound. “With this method, we can increase green coverage by up to 30 percent and energy efficiency by up to 40 percent. In addition, we can significantly improve environmental performance, as the buildings have a much longer life and the use of energy and resources is a great deal more efficient.”
Azabudai Hills orchard
Safe Havens
The Hills also stand out for their safety. As well as featuring structures that can easily withstand natural disasters such as earthquakes, they are central locations where residents can go in times of need. As Takashi Hosoda, senior manager at Mori Building’s Disaster Emergency Office points out, “Mori Building has been engaged in redevelopment projects in its hometown of Minato Ward under the slogan, ‘cities to escape to, rather than flee from.’” Roppongi Hills can accommodate 5,000 people, Toranomon Hills 5,200 people and Azabudai Hills 3,600 people who may be unable to return home in the case of an emergency.
The company has taken the lessons of the past—such as the Great Hanshin-Awaji Earthquake of 1995 and the Great East Japan Earthquake of 2011—to heart, recognizing the necessity for secure systems and infrastructures. Through cooperation between the public and private sectors, Mori Building has strengthened both the hardware and software systems of the complexes to ensure the safety of tenants, residents, visitors, neighbors, and the employees who use the buildings and facilities it manages and operates.
Hosoda adds that the complexes will allow the quantity and quality of disaster preparedness in Minato Ward to improve, helping “the urban structure to be transformed to one in which ‘homes, offices and the town [Hills] where you are now are the safest places to be.’”
Toranomon Hills dampers
Grand Designs
As well as creating areas around Minato Ward that are both green and secure, Mori Building aims to strengthen their cultural capital. Yoshinao Matsushima, the PR and Promotion Group senior manager in the Cultural Affairs Department, explains that with Roppongi Hills, which is home to the Mori Art Museum, the company was inspired to address the fact that Tokyo needed a cultural center to rival locations such as New York’s Lincoln Center, London’s Covent Garden, and Paris’ Centre Georges Pompidou.
To establish locations that are culturally rich, the Hills complexes not only house galleries with exhibits by the world’s leading artists, but pieces of public art that are meant to create spaces that enrich people’s everyday aesthetic lives, Matsushima points out. “The Hills feature artworks that visitors to the city can touch and enjoy. There are many works by internationally acclaimed artists, so visitors can enjoy high-quality, genuine art experiences at any time.”
United by the aim of drawing people in with green oases and stunning art, while also creating safe refuges, Mori Building has its eyes not just on the immediate future, but generations ahead. As Murata reveals: “In this era of fierce intercity competition, where people, goods, capital, and knowledge gather in attractive cities across borders, a city’s potential and possibilities have a great impact on the economy as well as the future of urban living. In this context, Mori Building has created the grand design for Tokyo with a long-term perspective of 50 to 100 years and is striving to achieve it.”
Azabudai Arena at dusk
Diversity & Inclusion Summit Series Day 3
The ACCJ hosted its first in-person Diversity & Inclusion Summit since the pandemic on Day 3 of the "Unleashing the Power of Inclusion" series.
Participants in the first in-person Diversity & Inclusion Summit since the pandemic gathered on Day 3 of the Unleashing the Power of Inclusion series.
The ACCJ hosted its first in-person Diversity & Inclusion Summit since the pandemic on November 28. Day 3 of the series was entitled Unleashing the Power of Inclusion.
The event, held at the Intercontinental Hotel Osaka, featured a panel discussion with:
- Simone Thomsen, president and representative director, Eli Lilly Japan K.K.
- Steve Briggs, president, Northeast Asia, Kraft Heinz
- Haruko Watanabe, representative director, president, and chief executive officer, American Home Assurance Company, Ltd.; director and vice chairman, AIG Japan Holdings KK
- Lavanya Wadgaonkar, global vice president, communications and global DEI champion, Nissan Motor Co. Ltd.
- Nuala Connolly, head of talent, DEI country lead, and deputy head of HR, AIG Japan
Hosted by the Kansai Diversity & Inclusion, Women in Business, and Kansai Business Programs Committees, the three days of training sessions, workshops, and discussions aimed to create safe and inclusive environments in the workplace.
October 2023 Event Highlights
View a collection of photos from the ACCJ’s Ocotober 2023 events.
The Cross-Chamber Young Professionals Speed Networking event held on October 25 featured support from eight chambers of commerce in Japan.
The American Chamber of Commerce in Japan hosted 57 events in October 2023. Among these were:
- The North America–Europe Golf Challenge in Japan 2023 (October 6)
- Innovation in Residential Energy Business Models (October 10)
- Villanova University MBA Delegation Meeting (October 10)
- Diversity & Inclusion Summit Series 2023 "Unleashing the Power of Inclusion" Days 1 and 2 (October 5 and 13)
- Chubu Children's Fund Golf Tournament (October 13)
- Policy Briefing with Eric Pan of Investment Company Institute (October 16)
- New Jersey First Lady Tammy Murphy (October 17)
- Sales Support Alliance October Meeting (October 18)
- The New Social Customer and How to Access Your Audience (October 19)
- Ordinary General Meeting (October 24)
- Cross-Chamber Young Professionals Speed Networking (October 25)
- Generative AI: How It Will Shape Businesses Tomorrow and Is Transforming Legal Work (October 25)
- Unveiling the Power of DEI in Corporate Success (October 26)
Here are some of our favorite highlights.
September 2023 Event Highlights
View a collection of photos from the ACCJ’s busy schedule of September 2023 events.
Renowned economist and Japan optimist Jesper Koll (center left) delivered a compelling case for Japan’s future on September 4 at an event hosted by the ACCJ Alternative and Foreign Direct Investment Committee at Tokyo American Club.
The American Chamber of Commerce in Japan hosted 50 events in September 2023. Among these were:
- Japan Outlook and Opportunities: Ambitious Re-imagination with Jesper Koll
- Security Clearances in Japan
- USG Briefing w/ Deputy Secretary of Commerce Don Graves
- DC Doorknock Debref with Keizai Doyukai
- Joint Networking with the Ireland Japan Chamber of Commerce
- Summer's End Multinational Chamber Networking Matsuri
- September Leadership Forum
- T&L Meetings and Networking Event
- Innovate & Connect: Tokyo’s ICT Networking Fiesta at Havana Café
- Thinking Local to Go Global: NBA Lessons on Business Expansion
Here are some of our favorite highlights.
2023 DC Doorknock
During the first full DC Doorknock since 2019, ACCJ delegates met with leaders in Washington, DC, to discuss security, economic, and strategic partnerships.
The 2023 ACCJ DC Doorknock delegates gather in front of the US Capitol.
On September 12 and 13, American Chamber of Commerce in Japan (ACCJ) leaders made their first full visit to Washington, DC, since the start of the coronavirus pandemic. These DC Doorknock visits are an important part of the ACCJ’s advocacy efforts and strengthen US–Japan relations.
ACCJ President Om Prakash was joined by Vice Presidents Jason Hyland and Victor Osumi; Governors Hans Klemm, Frank Packard, and Will Shaffer; Treasurer Steven Briggs; Special Adviser Christopher LaFleur; Digital Forum Vice-Chair Kristopher Tate; and Executive Director Laura Younger.
The delegation was warmly welcomed by administration officials, members of Congress, and officials from the Embassy of Japan and the US Chamber of Commerce. Topics of discussion included security, economic, and strategic partnerships.
Strengthening Cyber Risk Management
ACCJ member Ted Sato shares how his new cybersecurity book, written in collaboration with Keidanren, came about and discusses the issues it addresses.
Keidanren collaboration delivers book with practical advice to corporate leaders
As concern about cyber risk grows in Japan, a new book by veteran American Chamber of Commerce in Japan member and Marsh Japan, Inc. Senior Vice President Ted Sato aims to help corporate management find the most effective approach to mitigating risk and effectively responding to events.
Sato authored the book with Toshinori Kajiura, a member of Keidanren (the Japan Business Federation) and a senior researcher for information and communications technology policy at Hitachi. Kajiura was previously chair of Keidanren’s Working Group on Cybersecurity Enhancement.
🔼 Watch the video above for more insights from Sato himself.
Published in February by the Nikkan Kogyo Shimbun, a Japanese industry newspaper, Strengthening Cyber Risk Management: A Keidanren Handbook to Cyber Risk Management is designed to provide corporate managers with practical guidance for dealing with cyber risk.
Not to be confused with cybersecurity, cyber risk is defined by the US Department of Commerce’s National Institute of Standards and Technology as the “risk of financial loss, operational disruption, or damage from the failure of the digital technologies employed for informational and/or operational functions introduced to a manufacturing system via electronic means from the unauthorized access, use, disclosure, disruption, modification, or destruction of the manufacturing system.”
Sato told The ACCJ Journal that the book, which spans more than 200 pages, was written by professionals from the battlefield in easy-to-understand language. “We wanted corporate managers to be able to ask effective questions at the earliest stages of any cyber risk event. That is very important.”
“We wanted corporate managers to be able to ask effective questions at the earliest stages of any cyber risk event. That is very important.”
The idea came after a series of events last May which Sato conceived with Nikkan Kogyo Shimbun. The well-received sessions showed corporate managers how to deal with cyber risk, not solely as a technical issue but to emphasize management and factors related to organizational culture.
Keidanren had been hosting its own events since 2014, working to change the mind-set of corporate management on this critical issue. The organization built on Sato’s efforts to bring together professionals with similar motivation to create the Cyber Risk Management Japan Study Group, which was a supporting contributor to the book.
These efforts were also supported by the late Hiroaki Nakanishi, who was chair of Hitachi and Keidanren and contributed the foreword.
The book’s core advice draws on a 2014 report by the Internet Security Alliance and the National Association of Corporate Directors’ handbook on cyber risk, which recommends a one-team approach to corporate management. Beginning with the importance of expert advice from outside the company, the book advises an “art of science” approach that balances technology, human factor management, and operational excellence to ensure an organization’s readiness, response and recovery, and recurrence prevention.
The book has been well received by reviewers for its practical guidance.
“It is very meaningful to promote cooperation with experienced US firms at this early stage for Japanese companies,” Sato said. “If all goes well, next we plan to make an English version to share in Asia.”
The Bishop Family Memorial Scholarship Fund
On June 12, the ACCJ and the United States–Japan Bridging Foundation gathered at Tokyo American Club to honor the family and launch the Bishop Family Memorial Scholarship Fund at an event entitled Lives Lived for Bridging the United States and Japan.
Honoring the legacy of ACCJ leader Bill Bishop and his family through education
As a typhoon slammed Yokota Air Base in July 1974, a plane rocked its way down to the runway. Onboard was navy photographer Bill Bishop. That first night, he also experienced his first earthquake. It was a dramatic start to a five-decade relationship with Japan that would lead the South Dakota native to become a key part of the US business community in the country.
Last December, on Christmas morning, Bishop, his wife Izumi, and their daughter Sophianna lost their lives, killed by their neighbor at their family home in Saitama Prefecture.
Members of the American Chamber of Commerce in Japan (ACCJ) remember Bishop for his kindness, humor, friendship, and dedication to the chamber, where he served as chair, vice-chair, and board liaison of the Healthcare Committee over the years.
On June 12, the ACCJ and the United States–Japan Bridging Foundation gathered at Tokyo American Club to honor the family and launch the Bishop Family Memorial Scholarship Fund at an event entitled Lives Lived for Bridging the United States and Japan.
In attendance were US Ambassador to Japan Rahm Emanuel, representatives of Tochigi Prefecture Governor Tomikazu Fukuda, and ACCJ members and guests.
“We hope creating a fund that will support students who will come from the US to study in Japan, at Temple University, will be an incredible way to support Bill and his family’s legacy.”
Tom Mason, the foundation’s executive director, said, “We hope creating a fund that will support students who will come from the US to study in Japan, at Temple University, will be an incredible way to support Bill and his family’s legacy.”
Bishop studied in Japan himself and received a bachelor of arts degree from Sophia University. He earned a master’s degree from Temple University in Philadelphia, and later became a lecturer and board member at the Japan campus.
The event also marked the 25th anniversary of the United States–Japan Bridging Foundation, which provides US undergraduates—especially those from historically underrepresented communities—with scholarships to study abroad in Japan. It also offers mentorship and networking opportunities to build a Japan-related career, fostering the next generation of US leaders with connections to the bilateral relationship. Since its founding in 1998, the group has supported more than 2,000 students.
Some of this year’s Bridging Scholars, as well as alumni, also joined the event to share their experiences studying in Japan thanks to the foundation’s support.
The Bishop Family Memorial Scholarship Fund will be based at, and managed by, the US–Japan Bridging Foundation, which will administer and manage the scholarship and its programs—including the recruitment of students. Logistics, fundraising, and community support will be provided by the ACCJ.
Education Committee Vice-Chair Thierry Porte, who is also chairman of the United States–Japan Bridging Foundation, is happy to be a part of this.
“I knew Bill Bishop well,” he told The ACCJ Journal. “He and I worked together in the late 1990s to early 2000s at the ACCJ, and he was an active member of the American community in Japan. As [he was] someone who was very active working with students, there was quite a bit of movement in the community to remember Bill and his family.”
Porte said the Bishop Family Memorial Scholarship Fund will be a “living memorial to Bill, his wife, and his daughter and the logical place to collaborate would be the ACCJ, where Bill was very active and his daughter interned.”
Happy Independence Day 2023!
On the 247th anniversary of the birth of our great nation, I would like to extend my warmest wishes for a Happy Fourth of July to our friends and partners at the ACCJ.
A special message for ACCJ members from US Ambassador to Japan Rahm Emanuel
On the 247th anniversary of the birth of our great nation, I would like to extend my warmest wishes for a Happy Fourth of July to our friends and partners at the American Chamber of Commerce in Japan (ACCJ). Going on my second year in Japan, I am humbled by what we were able to accomplish. The ACCJ’s leadership played no small role in helping accomplish our mutual goals. While looking at our impressive accomplishments, it is important to note that there is much left to do.
Over the past few years, the US–Japan Alliance has become a cornerstone of peace and stability in the Indo–Pacific. As discussed at the G7 Summit in May, the importance of defending democratic values in eastern Asia cannot be overstated. Japan’s dedication to this cause can be seen by its reinforcements of defensive and diplomatic capabilities. Our bilateral cooperation has only deepened behind the promise to protect the rule of law and sovereignty.
Russia’s war in Ukraine is a direct attack on international order and the biggest modern threat to sovereignty globally. The invasion threatens to undermine the principles of sovereignty and territorial integrity. In response to the unjust war, the United States and Japan held steadfast in our dedication to global security and led international pushback against the Kremlin. Japan and the United States led sanctions, export controls, freezing of Russian assets, and donations to the Ukrainian cause.
This challenge strengthened international cooperation to create a united front against the aggressions of Russia. This war and our united response to it has much wider ramifications than just in Ukraine. As the People’s Republic of China (PRC) continues to test the boundaries of the South China Sea and Taiwan, it is evident that the outcome of Russia’s invasion holds great weight in determining the PRC’s aggressiveness in the Indo–Pacific region. In response to the PRC’s encroachment in the South China Sea, the United States and Japan have advocated for a rules-based order in the region, condemning their behavior. To this end, we have worked with other countries in the region to promote freedom of navigation and overflight to address the PRC’s aggressiveness.
“Over the past few years, the US–Japan Alliance has become a cornerstone of peace and stability in the Indo–Pacific.”
As we address international concerns, we must not forget the urgency of combatting climate change. The United States and Japan are global leaders in the fight against climate change and in recent years our cooperation has only grown stronger. The US–Japan Climate Partnership is an example of this cooperation, which commits us to achieve net-zero emissions by 2050. We are making significant progress on this goal by increasing renewable energy and through researching and developing new clean technologies. Our cooperation is essential to addressing the climate crisis and acting as leaders in an international response.
All of this must be accomplished without neglecting the economies of both countries. The advancement of US–Japan economic relations in the past two years is a positive development for both countries and the global economy. Concurrently, we have launched several initiatives to support economic investment in Southeast Asia and to promote free trade in the region. We are committed to working together to address common economic challenges and we are well-positioned to continue to advance our economic relationship in the years to come.
We are fortunate to have strong allies in the ACCJ with common goals. We must never forget that our unity is our greatest strength. It is what gives us the power to defeat tyranny and build a better world. What we can accomplish with the US–Japan alliance in the next two years will shape the future of the Indo–Pacific region for decades to come.
Happy Independence Day. I am confident in our work together. Let’s get it done.
Disclaimer: Opinions or advice expressed in the The ACCJ Journal are not necessarily those of the ACCJ.
Juneteenth: Seeds of Hope (Audio)
The ACCJ Journal sat down with CIC founder Tim Rowe in the bustling Toranomon Hills networking hub to learn more about how he went from sharing a space with friends to leading a community for entrepreneurs that includes more than 1,000 companies at centers in eight cities around the world.
Legacy Foundation Japan's LaTonya Whitaker shares inspiration and plans to celebrate this important American holiday and build bridges between the US and Japan.
Ahead of the Juneteenth holiday, we sit down with LaTonya Whitaker, executive director of The Legacy Foundation Japan, to talk about plans for the foundation’s Seeds of Hope gala at Tokyo American Club.
As an entrepreneur, the Mississippi native is well known to many in our community for Soul Food House, the comfortable and delicious oasis of authentic Southern food in Azabu-juban. But her work extends far beyond those flavors. In this interview, LaTonya shares her experiences learning about the history of June 19, the inspiration for the gala (now in its second year), and how the business community can get involved.
Learn more about the Seeds of Hope Gala
Learn more about The Legacy Foundation Japan
Innovation Engine
The ACCJ Journal sat down with CIC founder Tim Rowe in the bustling Toranomon Hills networking hub to learn more about how he went from sharing a space with friends to leading a community for entrepreneurs that includes more than 1,000 companies at centers in eight cities around the world.
CIC co-founder Tim Rowe shares his entrepreneurial journey and vision for collaboration in Japan.
Like so many new graduates, Tim Rowe and his friends from the Massachusetts Institute of Technology (MIT) left their Cambridge campus with diploma in hand and took “ordinary” jobs. A few years later, in 1999, they quit those jobs to build
start-ups.
But they needed offices—not the easiest thing for young entrepreneurs to pay for in a town that’s home to two of the world’s most prestigious universities. So they decided to share a space near MIT and Harvard to lighten the financial load. At least one of their companies would make it, they thought.
The shared space led them down an unexpected path, however, as more companies moved in and they went from five to 10 to 50 to 100. The Cambridge Innovation Center (CIC) was born.
Fast forward two decades and CIC opened its first Asia facility in Tokyo, in the Toranomon Hills Business Tower. The ACCJ Journal sat down with Rowe in the bustling networking hub to learn more about how he went from sharing a space with friends to leading a community for entrepreneurs that includes more than 1,000 companies at centers in eight cities around the world.
How did CIC expand?
For the first 13 years or so, we just grew right there in Cambridge. I had little kids at the time and didn’t really want to travel as much. And Cambridge is an amazing place for start-ups. So, we just kept taking more space and filling it. It was really kind of a surprise to us. We didn’t set out to build a shared space for start-ups as a business. We were actually just
using it for ourselves.
My mother had been the ombudsman at MIT, and one of her friends who had been the provost of MIT, Mark Wrighton, had become the chancellor of Washington University in St. Louis, one of the top medical schools in the United States. She said, “Mark called and wants you to come to St. Louis.” I was about to give all the reasons why I didn’t know if I could do that, but then she was like, you gotta go. Okay, Mom. So, I flew to St. Louis and met with Mark Wrighton. He said, “Look, we want you here, and we’re going to help you figure it out.”
One thing led to another and we opened in St. Louis. A few years later, the federal government was looking for a home for the National Geospatial-Intelligence Agency, and they toured St. Louis. They came to our center and said this is the kind of vibe they were looking for. They actually testified before Congress that they selected St. Louis because of their experience at our center. It was a $2 billion investment, a big deal for the local economy. After that, as other people came and knocked on the door, we said, “Sure, let’s look into it.”
How has the view of start-ups changed?
If you survey new college graduates, they often say the number one thing they want to do is go create a start-up. I think it’s good for the world, because what we’ve learned is that innovation has the power to make the world better in so many ways. But what we’re finding is that innovation gets into the world, is adopted and spreads much more quickly, through new enterprises rather than existing ones.
When we’re part of a larger organization, we want to respect all the rules that exist in that organization. Doing new things becomes rather hard. We hear things such as, “We tried that once and it didn’t work,” or “That sounds interesting, but that’s 1/1,000 of the revenue of this company, so we can’t prioritize it.” That’s normal, and it’s been well studied. But the bottom line is that existing enterprises find it very difficult to introduce true innovation.
“They understand that it’s not about them so, when there’s something really new and interesting that they have in their company, they push it out. It’s like asking your teenager to move out of your house. It’s time now, it’s time to go off.”
I think the smarter of the big organizations understand this. They understand that it’s not about them, so, when there’s something really new and interesting that they have in their company, they push it out. It’s like asking your teenager to move out of your house. It’s time now, it’s time to go off. They do the same thing and take those teams and move them out of headquarters.
Why did CIC choose Japan?
There’s a personal reason and there are professional reasons. The personal reason is that, in my youth, my dad said that if I studied Japanese for a while he would help me get an internship here. And my grandmother spent about 10 years in Asia in her youth, in the 1920s—mostly in China but some in Japan—and she taught me kanji when I was a kid. That all got me interested in Japan, and I was fortunate to do an internship here during high school.
Professionally, if you look at the most successful companies in the world—and you can use any measure, but one would be the Russell 2000 Index—all those companies were at one point start-ups. So, another way to look at that list is that it is a list of the 2,000 most successful start-ups ever. When you break them down by country, you find that the United States and Japan tie for the number of companies on the list adjusted by population. So, historically, Japan ties for number one as a place to build start-ups. That’s a reason to be here.
Photos: ©CIC Tokyo
Is the Japanese government doing enough to support start-ups?
Building a start-up ecosystem is a decade-long process. A piece can come from a supportive government, and it’s really terrific that the Japanese government is leaning in. Other governments that have leaned in, such as Israel, have done really well. It’s clear that a national policy that pushes in this direction can pay big dividends.
But it’s not the only thing that needs to happen. You also need the entrepreneurs themselves. And I think the Japanese innovation ecosystem is responding. These days, if you talk to young Japanese people—and this is a change, perhaps just like what started to happen a decade ago in the United States—you see many more who say they want to build a start-up.
I see Japanese universities leaning into this, which is important. They’re doing entrepreneur programs like those US universities started a decade or more ago. I see a growing awareness of, and interest in, what we call innovation infrastructure. This is things such as shared wet laboratories, the physical infra-structure that allows for new start-ups in, let’s say, the biotech field.
We’ve built shared workspaces focused on a number of industries. The largest so far is the wet lab for life sciences. We collaborated with others to found a nonprofit doing that in Cambridge. It’s called LabCentral and is, as far as we are aware, the largest shared wet lab on the planet. It’s over 20,000 square meters and has every possible piece of equipment you would need in life sciences. Then we figured out how to make that commercially viable and built a similar facility, a commercial one, called CIC Labs in Philadelphia. It’s the largest commercial shared wetland facility in the world, to our knowledge.
How can Japan and the United States work together?
The good news is that the interests are very aligned for Japan, for the United States, for Japanese companies, and for US companies in Japan. Everyone in this circle benefits when they figure out how to get these collaborations to work well, and set a different way.
If you aren’t out there working with new technologies, which are often coming from start-ups, then you’re at risk that you’ll be Airbnb’d or Uber’d. You’re in the hotel business and someone figures out another way to have lodging. You’re in the taxi business and someone figures out another way to get people around the city.
“If you aren’t out there working with new technologies, which are often coming from start-ups, then you’re at risk that you’ll be Airbnb’d or Uber’d.”
This is core to the ACCJ itself. Really, what you’re talking about is brokering conversations. You’re getting people to know each other and to talk about what they’re doing, and how they might help each other.
When I was a young person at the Mitsubishi Research Institute in the early 1990s, I was a member of the ACCJ, because I saw—and I convinced my bosses—that the connections that could be made were meaningful and important. I think it’s no less relevant today. And I think that, as many of these companies have evolved, one of the things they’ve come to realize is that, while the connections between larger organizations are important, the connections between larger organizations and smaller fledgling ones are also important. The challenge is figuring out how to find those little companies and how to know which ones to work with.
What’s next for CIC in Japan?
We were approached by Nishitetsu, the major private railway company in Kyushu. They said, we like what we see at CIC Tokyo and we’d like to work with you to build another one in Fukuoka. We have announced that we’re in a formal collaboration and will soon finish all the due diligence to make sure this will really work. Then we can announce if, in fact, we’re moving ahead with construction, but it’s looking very good and we’re excited to be headed to the second site.
We’re also in several conversations about building some of those shared wet laboratories, robotics laboratories, and other kinds of deep tech shared spaces here in Japan.
We’d love to hear from Journal readers on this; if they have ideas, they should let us know. We think there’s a lot of demand for this kind of innovation infrastructure. Not only does it propel start-ups, but it also creates an environment much like CIC Tokyo does, where larger companies can interact with, and find interesting, smaller companies. Those are our two main areas in the future: more in deep tech and more locations around Japan.
Healthy Makeover
ChatGPT may be all the buzz right now, but it's just one of the digital tools transforming virtually all industries, including healthcare. ACCJ leaders share their views on how digital transformation can benefit patients as well as those charged with caring for them.
How are digital transformation tools changing healthcare in Japan?
ChatGPT, that large language model that is stealing the headlines these days, may be all the buzz, but it’s just one example of how technology is rapidly changing the way we work and do business. And while the artificial intelligence (AI) bot may represent a leap forward, the deployment of digital technology across an organization’s operations has been on the rise in all industries since the advent of the World Wide Web in 1989.
Today, we call it digital transformation (DX), and it is bringing computation, Big Data, AI, other digital applications, as well as connected devices, to bear on how products and services are made and/or delivered, in industries as diverse as education, finance, and logistics.
Healthcare could also greatly benefit from these incredible advances, and the industry is undergoing its own DX revolution—including in Japan. Here, healthcare DX is gaining traction in part due to the advocacy efforts of the American Chamber of Commerce in Japan (ACCJ).
However, speaking to The ACCJ Journal, industry insiders—including members of the chamber’s Healthcare Committee—note that adoption of healthcare DX in Japan lags that of other countries, especially those in North America and Europe.
“I think the current situation is that [Japan is far behind] compared with countries such as Denmark or the United States,” said Makoto Kawai, director of government affairs at Zimmer Biomet G.K., a global medical technology company. Kawai is also co-chair of the ACCJ Healthcare Committee.
Maya Mamiya and Diogo Rau share similar sentiments. Mamiya is an associate director of global public policy for Asia at Eli Lilly Japan K.K. and a Healthcare Committee vice-chair, while Rau serves as Eli Lilly’s chief information and digital officer.
Also sympathetic to Kawai’s view are healthcare industry expert and committee Vice-Chair Eiji Sasahara, and Go Ikeda, a senior manager in the Healthcare Economics and Government Affairs Division of medical devices maker Medtronic Japan Co., Ltd.
Data Utilization
Dr. Sasahara noted that healthcare DX in Japan—especially optimal utilization of Big Data—is still low. Why? It is in large part because “operations heavily depend on manual and paper-based processes,” he explained. “It’s not easy to utilize [the] merits of digital technologies, such as accessibility, scaling, and automation.”
However, optimizing Big Data use in healthcare is important for a variety of reasons. One area where its effective deployment is critical is in determining the health outcomes of patients, the experts pointed out.
Rau identified even more areas where optimal use of DX tools can make a difference. In the case of Eli Lilly, Big Data, AI, and machine learning can be used to:
- Develop digital connectivity for clinical trials and therapeutics
- Deploy solutions to manage patient-specific digital information
- Speed up the discovery of new life-changing medicines
- Design and implement clinical trials
- Increase accessibility to and diversity of medicines
- Obtain more accurate efficacy/safety data
- Improve patient experience
- Improve the safety and effectiveness of medicines
- Manage and interpret patient data from connected therapeutic devices
Medtronic’s Ikeda agrees. “In order to link personal health records [(PHRs)] and medical information, it is necessary to build a platform and take measures to shift data ownership and management to individuals,” he explained.
“By connecting and sharing data such as PHRs and medical information, the value of medical care will be improved, allowing for early diagnosis and prevention of disease progression.”
“By connecting and sharing data such as PHRs and medical information, the value of medical care will be improved, allowing for early diagnosis and prevention of disease progression.”
To provide better healthcare while maintaining universal access, the current fee-for-service health insurance system should be shifted to value-based healthcare (VBHC), Ikeda suggested. “DX of healthcare is an important precondition for VBHC.”
Sasahara refers to this new paradigm as “citizen-centered care”—a form of healthcare that not only makes use of digital tools such as Big Data, but also puts patient outcomes at the core of the industry.
Healthy Prices
The upside of deploying healthcare DX can be enjoyed not only by patients and the private sector, but the public sector, too, the experts noted.
Government ministries and agencies—as well as the hospitals and other healthcare institutions and research and development (R&D) centers they fund—will be able to reduce costs through the effective deployment of DX strategies.
Ikeda noted: “DX will promote R&D and enable outcome-based reimbursement evaluation, supporting a reduction of medical and nursing care costs. It can also support the healthcare workforce shortage [to] benefit patients overall.”
Data Security
Improving data security is another benefit the DX revolution will confer on the healthcare industry, according to the experts. This is especially the case when securing the privacy of patient records, an area of concern many of them highlighted.
Healthcare DX, they said, should adhere to international standards of security. These standards are based on interoperability of systems and use of platforms such as cloud computing. In Japan, however, patient data is usually stored on premises and in stand-alone systems, which are not necessarily secure.
“With regard to data storage, the current mainstream on-premises, stand-alone system has increased security risks, and it should be considered that an open mechanism using the public cloud paradoxically improves security,” explained Ikeda.
Lilly’s Rau added: “Some of the key concerns include ensuring the confidentiality of this data when tied to a patient and the integrity of the data when billing and making care decisions.”
Sasahara agrees. He also noted that, in Japan, there is a lack of in-house security expertise. “It is usual that there is no [chief information security officer] at Japanese hospitals.” Kawai held a similar view.
However, this opens up an opportunity not only to acquire the necessary human resources but also to “develop and utilize emerging privacy-enhancing technologies,” Sasahara and Kawai agreed.
Securely digitizing patient records will be key to realizing the potential of healthcare DX.
Prevent and Cure
The reach of healthcare is broad. It includes the prevention, diagnosis, and treatment of diseases, injuries, and ailments, and encompasses a wide area of professions and fields—from doctors to nurses to medical researchers—as well as facilities such as hospitals, clinics, and research institutions.
In the healthcare technology space, a few themes are emerging at the forefront. For Ikeda, three areas of particular note are:
- Grand design
- Value assessment
- Private–public partnership (PPP)
Regarding the path to implementation, Ikeda shared: “We believe that it is necessary to first illustrate a grand design for the overall picture of what the platform should be in order to realize medical DX, and then the process for building that overall picture should be presented.” It is the remit of the government, working with stakeholders across society, to provide that grand design or vision, he added.
“DX will promote R&D and enable outcome-based reimbursement evaluation, supporting a reduction of medical and nursing care costs. It can also support the healthcare workforce shortage [to] benefit patients overall.”
As for value assessment of digital health technology, Ikeda noted that this is difficult to properly assess under existing medical service reimbursement systems.
“To reduce the burden on medical professionals, as a new evaluation perspective unique to digital health technology [emerges], to equalize and improve the efficiency of technology, and to evaluate products that match the speed of product development and improvement, it is necessary to build a new evaluation system by referring to overseas cases and the utilization of non-insurance combined medical care systems,” he explained. Here, stakeholders in Japan and abroad can learn from each other.
And what of private–public partnerships? To enhance PPP, Ikeda added, it is also necessary to set up new forums for information sharing and discussion among the public and cross-cutting private sectors. “I am expecting that the ACCJ could be the hub of PPP.”
Sasahara mentioned three more trends to keep an eye on as paradigms change in the healthcare industry:
- Citizen engagement
- A shift from reactive treatment to data-driven prevention
- Utilization of gamification tech for patient care
The ACCJ Healthcare x Digital program focused on empowering elderly patients through digital health in 2022.
Advocating for Change
To keep abreast of fast-changing developments in the industry, the ACCJ Healthcare Committee was invited in March to an event hosted by the American Medical Devices and Diagnostics Manufacturers’ Association (AMDD).
Led by Ikeda, who is chair of the AMDD’s Digital Health Committee, the event featured Dr. Kengo Miyo of the National Center for Global Health and Medicine, a hospital and international medical research and healthcare training facility located across Tokyo. Miyo is the director of the institute’s Department of Planning Information and Management.
Ikeda explained that the event was organized to realize medical DX in a situation where the environment is changing, and technology is progressing rapidly. “Cooperation among stakeholders toward a shared goal, and understanding of medical DX as a whole, are indispensable,” he stated.