Eurotechnology Japan KK
Kazuo Inamori: founder of Kyocera, DDI (KDDI) &
turnround of Japan Airlines.                Nov 29, 2012
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Bad news from Japan's electronics industry sector makes global headlines this week (I was interviewed on BBC, US National Public Radio etc) - in this newsletter, lets look at some good news from Japan.

 

Kazuo Inamori (80 years old, born January 30, 1932), Japanese serial entrepreneur, founded Kyocera Corporation on April 1, 1959, founded DDI (now KDDI) in 1984, and turned around Japan Airlines (JAL) during the last two years.

 

Japan Airlines (JAL) went bankrupt on January 19, 2010, Kazuo Inamori turned around JAL, and JAL went public again on Tokyo Stock Exchange on September 19, 2012, returning substantial profit for the Enterprise Turnaround Initiative Corporation of Japan Fund.

 

Kazuo Inamori at a presentation recently explained some aspects of how he turned round JAL. Read below.

Founder of Kyocera and KDDI Kazuo Inamori
Serial entrepreneur Kazuo Inamori
Turning round Japan Airlines with Amoeba management: 
 
Kazuo Inamori is famous for "Amoeba Management", essentially Amoeba management means divisional accounting, and has been refined for the management of Kyocera and many other companies advised by Kazuo Inamori. Today Kyocera is divided into about 3000 "amoebas".

Applying "Amoeba management" to JAL, Kazuo Inamori installed a real time system, to determine the profit of each route and each single flight in real time, while in the past profits (or losses) at Japan Airlines, were calculated months after the fact.

Kazuo Inamori on leadership: "the leader must have a vision and burning determination to carry out the vision whatever the obstacles", and must communicate aims and targets to everyone in the company.

Kazuo Inamori on nuclear energy: 
 
Japan's energy / electricity situation is in upheaval, and given Japan's respect for seniority, given Kazuo Inamori's standing in Japan, understanding Kazuo Inamori's opinion is very important for understanding how Japan's energy landscape is likely to evolve in the future.

Kazuo Inamori said that in the past the problems of nuclear energy were hidden from the public, and in the future must be disclosed. 

Kazuo Inamori thinks that it is not possible to maintain the current sophisticated society without nuclear power. He thinks that nuclear power is a necessary evil.

The 8th edition of our report includes detailed analysis of Japan's electricity and energy industry sector (Japan's Electricity Sector, 8th edition of November 22, 2012, 194 pages) [download a free sample outline]
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