Project Background

In a bid to introduce innovative solutions to their home market, the client (a provider of ICT equipment as well as products, solutions, and services using proprietary technologies, both domestically and internationally), aimed to identify and formulate a product strategy for their home Japanese small and medium businesses (SMB) market. As such, they have asked JP Tokyo to identify applicable solution needs for Japanese SMBs based on the global SMB market trends over the next few years (focused on 3 main regions: NA, EU, and South-East Asia), to research major SMB markets globally by region and domain, to pinpoint solution trends, and to discover avenues for those solutions to enter the Japanese SMB market.

The Process

Given the relatively broad scope of the demand formulated by the client, our team of consultants decided to tackle this complexity by committing to a two-phased approach.
Phase 1：Analyze global trends in a variety of relevant sectors and identify 50 high potential solutions. Following that, aim to further narrow down the list to approximately 10 new solutions that would respond to the needs of Japanese SMB market and provide detailed introductory analyses for each solution.
Phase 2: Once the client has further short-listed the solutions they can adapt to their own capabilities and can realistically implement in the medium term, jump into a deep-dive analysis of only three short-listed solutions involving:

• Qualitative analysis (demand in home market)

• Quantitative analysis (market size and growth prospects)

• Competitor analysis (holistic analysis of providers and solutions in the home

Exhibit 1:

A summary of the approach to shortlist high-potential solutions for the Japanese market

Additionally, the JP Tokyo team embarked on a mission to engage with the foreign solution providers on behalf of our client, seeking deeper insights into their product offerings and exploring the potential for a fruitful collaboration. This involved in-depth discussions covering a spectrum of topics, ranging from the intricate details of their product, its availability, and unique selling points to the complexities of legal considerations and associated fees. By proactively addressing these essential aspects, we aimed to lay the groundwork for a well-informed partnership, bridging the gap between our client's means and knowledge of the local market, and the foreign provider's aspirations and technical expertise.

Insights and Recommendations

Navigating the intricacies of cross-border collaborations between foreign solution providers and Japan-based corporations demands a thoughtful approach. To address the challenges of effective communication, mutual understanding, and successful engagement, we at JP Tokyo have come to grasp the importance of:

• Language Mediation: Acknowledge language challenges and adopt a careful approach in bridging communication gaps and ensure accurate conveying of intentions.

• Cultural Sensitivity: Understand the cultural nuances in business practices for each party, fostering an environment where both parties are comfortable voicing their concerns so that they can be addressed in a timely manner and before they turn into obstacles.

• Structured Communication: Implement clear communication channels and regular check-ins to address any misunderstandings promptly and ensure alignment throughout the collaboration process.

• Customized Approach: Ensure early and accurate understanding of the expectations and preferences of both parties, and tailor negotiation strategies to match those.

• Long-Term Engagement: Strategically plan for ongoing engagement beyond initial interactions, focusing on building rapport and trust to nurture sustained collaborations.

The JP Tokyo Difference

Faced with the Herculean task of having to identify fifty solutions from an ocean of emerging trends in the IT space, JP Tokyo’s professionals embarked on a deep-dive analysis into the needs of Japanese SMBs and their particularities (versus foreign SMBs for instance), thus providing a framework for the subsequent research in order to identify how to resolve the pain points Japanese SMBs have to contend with. Diligence and attention to detail resulted in a successful short list with the JP Tokyo swimmingly acting as an in-between amidst foreign solution providers and the Japan-based client. Furthermore, our consultants had to act as careful, bilingual mediators to operate as a conduit between the client and the foreign providers, ensuring their concerns and queries were properly addressed while sustaining the foreign solution provider's engagement.