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A monthly review of the latest developments in Japan’s IT, telecom, and life sciences sectors

December 2004 - Volume VII, Issue XII

Triangle Technologies is the leading Japan Israel business development and investment advisory firm
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Table of Contents:
  • Dan's Desk

  • Triangle Technologies News

  • Israel Japan News

  • Business News

  • General Technology News
  • Life Sciences News


  • Exchange Rate as of December 10, 2004

    $1 US = 105.21 Yen


    Dan's Desk

    From Triangle's CEO

    Taking it all away - paka paka

    Happy new year! I had a meeting with the head of a large VC fund 2 months ago, and at the end of the meeting he said, "I have a few take-aways from our meeting today." Today's Dadn's Desk is about take-aways (not the fast food type). At the end of each year it is not unusual to sum up the past and look to the future. I and our colleagues at Triangle have been working with the Japanese market since 1989, 15 years (double that number for our loyal colleagues in Japan). 2004 was a real turnaround year, and there is more to come. We closed deals between Glucon and Suzuken (announced), Discretix and Renesas (announced), Mempile and Hitachi-CSK (announced), Exanet and ITX (this was in 2003, but we just got our first large end customer PO), Quantomix and M&S (not announced), and Mempile and xxx (not announced), Radioscape and xxx (not announced), and BigBand Networks and xxx (not announced). Cyota kept its 50% market share and Given Imaging still working to get commercial sales started. And we have a rich pipeline with 3~4 Q1 2005 deals expected (networking, medical devices, software, wireless, broadband).

    So here are some of my take-aways for 2004:

  • Quality is a Quest, not an endpoint. Quality is not perfection. Perfection is static. Quality moves.


  • In the Quality Quest, words, slogans, promises - these dont matter at all. Dont get confused between your own paka paka and your own bulu bulu. Japanese customers are not. American customers are. They love paka paka, and expect you to bulu bulu. In Japanese there is no translation for paka paka bulu bulu. Look it up if you dont believe me.


  • The Quality Quest is multidimensional - you can have quality products, processes, procedures and communication. You can have quality human relationships. The Quality Quest is based on the search for truth. It is the relentless getting-to-the-bottom-of-things.


  • Managing expectations is an intimate part of the Quality Quest. To communicate that your software is buggy, and that you are working to improve it, and will send an improvement report including test protocols and results, and you will do all of that by EO January 31, 2005 Japan time - and on January 31 Japan time, you send the report - that is quality. It is not perfection.


  • Customer support and service is part of the Quality Quest. Relentless commitment to customer satisfaction (anshinkan; maybe the nearest translation of anshinkan is halcyon...). Customer support is not saying "dont worry, everything will be okay. Trust me." That is paka paka. Quality customer support is MAKING everything okay, not saying it. It is admitting that everything is not okay if it is not, and being committed to getting to the bottom of things, if possible. And if not possible - let's take the leap together, dear customer. But let's not get confused with the paka.


  • Personal relationships DO matter, in fact they are critical. But they need to be built. Like a baby, trust is not born with a full set of teeth. The Quality Quest helps build trust between people and between companies.
  • Good luck in 2005!

    Dan



    ***TRIANGLE TECHNOLOGIES NEWS***

    +M&S WILL DISTRIBUTE QUANTOMIX IN JAPAN

    QuantomiX has signed an exclusive distribution agreement in Japan with M&S Instruments Trading Ltd. of Osaka, Japan. QuantomiX sells a proprietary line of capsules which enable SEM (scanning electron microscope) users to image wet samples, representing a breakthrough in imaging for the scientific, pharmaceutical, cosmetics, and other markets. According to the agreement, M&S will market and distribute QuantomiX’s capsules to Japanese SEM users in biological sciences, pharmaceuticals, health care, and other industries.

    +RENESAS TECHNOLOGY CORP., WILL INTEGRATE DISCRETIX, INC. TECHNOLOGY INTO ITS PRODUCTS

    Discretix CryptoCell™ security platform has been selected to be included in the entire range of Renesas’ SH-Mobile processors. Renesas Technology Corp., a leader in the mobile processor market is the joint-venture semiconductor company established by Hitachi, Ltd. and Mitsubishi Electric Corporation. Discretix, Inc., is a provider of embedded security solutions for mobile devices and flash based storage. CryptoCell will be embedded into future SH-Mobile processors at the chipset level.

    ISRAEL-JAPAN NEWS

    +NEW PERSONAL INFORMATION PROTECTION LAW IN JAPAN WILL HAVE IMPACT ON MANY ISRAELI COMPANIES WHO DO BUSINESS THERE

    The new Japanese legislation is called the "Personal Information Protection Act" and it was passed in May 2003. This act forbids both direct marketing and market research companies from using second-hand lists to contact individuals, without first having the consent from those individuals to be contacted. Moreover, that consent must be agreed upon between source of the list and the individual.

    The law includes (1) a basic position on the appropriate management of personal information; (2) provisions providing the foundation for the Basic Policy and measures to be developed by the government; (3) the responsibilities, etc., of central and local government; and (4) obligations placed on businesses handling personal information

    ***BUSINESS NEWS***

    +FOREIGN STUDENT POPULATION IS GROWING (yahoo.com, Dec 4)The latest numbers indicate that foreign students are still flocking to Japan. As of May 1st, 117,302 people were studying in Japan, up 7,794, or 7.1% from a year earlier. Of these, 62,300 are university, junior and technical college students, 29,500 are graduate students, and 23,800 are vocational school students. By nation, most were Chinese, at 77,713 students, then South Korean at 15,533, and Taiwanese at 4,096. Overall, 93% of the students are from Asian countries.

    +MERGERS AND ACQUISITIONS ARE GOING GANGBUSTERS

    (www.nikkei.co.jp, Dec 4) The private equity boom continues in Japan, with Recof Corp. stating that year-to-date there were over 2,002 corporate takeovers involving Japanese companies -- easily surpassing the previous record of 1,752 M&As in 2002. The figure represents a 30% increase for M&A overall, and a 100% increase for takeovers involving sums of JPY100bn ($1bn) or more. A significant number of the transactions, 279 deals, involved the takeover of foreign corporations by Japanese firms, particularly of Chinese companies. Last year, according to the Nikkei, there were just 28 takeovers of Chinese firms by Japanese ones, and this year there were 50.

    +2004 WAS GOOD FOR IPOS

    (yahoo.com, Nov 30) Up to 175 companies are expected to have gone public by theend of this year, including 17 just in December alone. This number represents a 45% increase over 2003, and the first annual increase in 4 years. Most of the companies are smaller innovators, looking for modest amounts of capital, typically around JPY1bn ($10m) All but 3 of the 151 companies to have done an IPO this year have seen their initial trading prices exceed their IPO prices.

    ***GENERAL TECHNOLOGY NEWS***

    +MORE EFFICIENT AIRCONDITION

    (nikkei.co.jp, Dec 16) Fujitsu has said that it has developed a new type of air conditioner motor which is up 86% energy efficient, about 10% higher than other types of motors on the market. The motor apparently uses a new configuration of permanent magnets to increase torque. The motors are also being considered for use on motor-assisted bicycles.

    ***LIFE SCIENCES AND ENVIRONMENT NEWS***

    + INSULIN SPRAY

    (nikkei.co.jp, Dec 10) Hosokawa Powder Technology Research Institute and the Gifu Pharmaceutical University have announced that they have developed a new oral spray insulin system that provides effective insulin dosage for up to 12 hours. The system involves micro-capsules which dissolve slowly after inhalation. Japan has 7m diabetes sufferers and 9m pre-diabetics.

    +NURSING OUTSOURCING

    (nikkei.co.jp, Dec 16) Wisnet, a nursing care service provider, has struck a deal with Nomura Principal Finance and Urban Design System Co., to lease company-owned welfare facilities and turn them into new nursing homes. The facilities will be in central Tokyo and Kanagawa. Wisnet already runs four homes in Tokyo and plans to open 10 more by the end of FY2005.

    ALFRESA PHARMA RELEASES AUTOMATED IMMUNOCHEMICAL ANALYZER AND REAGENT FOR FECAL OCCULT BLOOD TESTS

    (JCNN, Dec 29) Alfresa Holdings has announced that its subsidiary Alfresa Pharma has launched the Hemotect NS-Plus C, an automated immunochemical analyzer, and its proprietary reagent Nescoat HemoPlus for fecal occult blood tests. Used with the proprietary reagent, the analyzer, based on a discrete method, can detect fecal occult blood as well as tumor markers. In addition, a special container for collecting fecal samples is also available. The company expects to achieve sales of 600 million yen ($5.7 mil) in the first year and 1.2 billion yen ($11.4 mil) five years from now.

     

     

     

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    Authorized by Ehud Nachmany - Marketing Communications Director

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