Symposium to celebrate the founding of the Digital Agency.

 ■ Symposium to celebrate the founding of the Digital Agency.

“Digital Risk Forum” @ Takeshiba. Celebrating the founding of the Digital Agency.

It has been exactly one year since the opening of the world’s first smart building in Takeshiba. We once again invited Mr. Takuya Hirai, a member of the House of Representatives, who was appointed as the first Minister of Digital Affairs shortly after his arrival at the event. 

https://newmediarisk.org/draforum2021

I addressed the audience as the organizer of the event.

“It was 10 years ago that the widespread use of smartphones and social media led to a number of flaming incidents.

The following year, we established the New Media Risk Association, known colloquially as the ‘Flaming Association.’

Since then, the environment has changed with AI, IoT, and big data, “digital” has become the most important theme for the social economy.

At the same time, COVID-19 has ravaged the world, making digitality all the more important. It was a reminder that Japan was indeed losing the digital fight. It became clear that the Japanese government, healthcare, and business were lagging behind. 

In 1989, Japan’s international competitiveness, which has been the highest in the world, had dropped to 34th place, a clear downfall. The 30 years since have been a period of digital inaction for Japan. 

This is Japan’s last chance for digital transformation (DX). The country has maintained its world-class capabilities in manufacturing, design, education, and public safety. We believe is fully possible to digitally revitalized Japan post-COVID.

However, digital transformation that manifests as a sudden surge will also lead to increased digital risks. Therefore, last year, our association changed its name to the Digital Risk Association and put in place a new structure.

We welcome the inauguration of the Digital Agency, who shares a similar approach. I am pleased that the importance of digital administration has finally been recognized by the agency, and that they have set sail under a worthy first minister. 

In on year, they have developed many relevant laws and gathered human resources to inaugurate the Agency. The sheer horsepower of their work, the likes of which were not seen in the Heisei era, has given me hope. 

The agency’s base here in Takeshiba is a smart city designed to be in full swing in time for the Olympics. 

It was designed as a special zone abundant with digital technology such as 5G, robotics, IoT, and data. We hope to work digitally with the Digital Agency and other government agencies.”

Ms. Yoko Ishikura, who was appointed as Digital Supervisor, gave a comment as well.

Ms. Ishikura was a college of mine at Keio and our rooms were next to each other.

She said she never allowed teachers in. This was the same as when she was at iU. Though, simply calling her “Ms. Ishikura” would have been uninspiring. Ishikura-kan, Digi-kan, Yoko-chan—not sure which fits best.

Minister Hirai remarked,

“Ten years from now, the word ‘digital’ will no longer be used. We won’t even have to think to be digital.”

Great attitude. The digital will merge with our society. Everything will become digital. Consumed as such. This is truly “being digital.”

If their work is successful, the Digital Agency will be gone. This is the goal.

Right now, the conversation is focused on how to move forward with government DX, but what was discussed was a major posture to rewrite analog civilization: how to develop cities and live, how to develop cities and live, how to produce communities, families, and meals. It would be exciting if we could move toward such a policy. 

Let us hope that happens.

“A congressman should not seek happiness. If you do this for long enough, you become a horrible person.”

The minister murmured.

Hmm…

As was the case year ago, the timing of the cabinet change occurred right before the presidential election.

They must be carrying a heavy load.

Great work.

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The Media Content Market Today

■ The Media Content Market Today

The 2021 edition of the "Japan and Global Media Contents Market Database" has been published by HUMANMEDIA.

It estimates that due to the impact of the COVID-19 pandemic in 2020, the size of the media content market in Japan has become ¥13,107.6 billion, which is a decrease of ¥661.2 billion (-4.8%) from the previous year.

Let's read more.

In 2020, "Entertainment and facilities," including movies and karaoke, etc., fell 43.3% from the previous year due to the impact of COVID-19. "Broadcasting" fell 12.2%, and "Software packages" fell 6.4%.

On the other hand, "Online content", with its large growth in streaming and increased advertising, rose by a total of 5.3%, accounting for 41.4% overall. The total for all segments remained in the ¥13 trillion range despite a 4.8% decrease.

In the 2010s, the content market shrank 5% year-on-year in 2009 following the Lehman Shock in 2008, and remained leveled off until 2012, the year after the Great East Japan Earthquake.

The market began to expand in 2013, and in 2016 recovered to the size it was in 2008. It has continued to expand since then, and in 2019 reached its largest level since 2008.

In 2020, there was a dip due to COVID-19. The question is whether this will continue or reverse in 2021.

In terms of media categories, "Online content" such as streaming, etc., accounted for only 13.4% of the total in 2011, but in 2019 it accounted for as much as 34.8%.

Its size was about three times larger in 2019 than it was in 2011, and the amount increased by ¥3,184.9 billion. This sector was responsible for most of the recovery and expansion of the market in the 2010s.

On the other hand, the "Package content", consisting of video, music, game software, newspapers, printing and publishing, etc., accounted for 43.5% of the total in 2011, but shrank to 27.4% in 2019. Its size declined 27.4% from 2011 to 2019, and the amount declined by ¥1,424.3 billion. "Broadcasting" maintained the ¥3.7 to 3.8 trillion level, but the overall market shrank from 29.5% in 2011 to 28.0% in 2019.

The results of survey of the media content market size in 20 countries and regions around the world showed that on a yen basis for 2019, the United States, China, Japan, Germany, the United Kingdom, and France, will be in that same order as they were in the previous year.

The market size in the United States, which is the world's largest, is about four times the size of the Japanese market, with China in second place being about twice as large as Japan, Germany and the United Kingdom in fourth and fifth place being about half the size of Japan, and France being about one-third of the size.

The overseas market for Japanese content will be about ¥2 trillion in 2019. This is a 16.3% year-on-year increase, nearly tripling since 2012. By sector, anime, followed by online gaming for smartphones is the largest.

The largest field was animation, which exceeded ¥1.2 trillion in 2019. Online games came next, with ¥368.9 billion, followed by publishing, mainly consisting of manga, which has also continued to expand.

In 2019, the total market size of domestic media content and related industries in the 5 sectors was ¥56.5 trillion, accounting for 9.9% of the ¥554 trillion GDP. It exceeded food service that was at ¥26 trillion, clothing which was at ¥10 trillion, and has reached a size where it is closing in on the ¥63 trillion in construction investment.

(5 areas: communications including telecommunications, etc.; advertising; characters; media hardware including TV and game consoles, etc.; and live performances)

---

The content market had dipped at the beginning of the transition from analog to digital, but has since been on a trend of growth.

Although also having dipped due to COVID-19, digital expansion will accelerate and live shows will return sooner or later. Overseas markets will also grow.

It is an industry with high expectations. Market expansion revolving around digital content and internationalism, which the government's intellectual property strategy is aiming for, will be in full swing after COVID-19.

Even more than that, we should focus on a market that combines related industries. The total market size of hardware and software is a pillar of industry on par with food, clothing, and construction.

Furthermore, it will have a large ripple effect on markets around it. The viewpoint of expanding the scale of investment in these fields is required in anticipation of the ripple effects.

I recommend that this database, which is compiled on an annual basis, be used as a text for policymaking.

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20 years after 9/11 (September 11th), optimistic expectations.

■20 years after 9/11 (September 11th), optimistic expectations.

I had optimistic slides that I was going to present back in Japan right after 9/11.

September 11th, 20 years ago was the strongest season for the Internet in the United States, even though the Internet bubble had burst.

I had an appointment with president of MaMaMedia, Inc., Idit Harel, a female entrepreneur and graduate of MIT. It was when I was approaching Manhattan after driving from Boston in the early morning, that I came across the terrorist attack.

I have written about this several times.　

While returning to Boston from New York, there was just screaming and confusion coming from the car radio, and I learned of the situation from the images from the TV at a roadside restaurant.

On the East Coast people were commuting to work and school, and on the West Coast, which was three hours behind, people were sleeping.

However, everyone I knew in Japan saw it happening on the news.

The degree of it being in real-time was higher in Asia.

The "Advanced information society," in which the media connects the world through images, had been completed.

With that, the "Optimistic expectations" that mutual understanding would advance, and world peace would come, was showed to be downright lie.

Mutual understanding breeds extinction, hatred, terrorism, and revenge.

The United States brandished nationalism, which soon led to the war in Afghanistan, and then the war in Iraq.

Ten years later, Japan was shaken by March 11th, and the tremors were shared and spread on TV and smartphone social networking sites.

Since September 11th, I have once again recognized the power of images.

However, it was not the images that made me flinch when I entered the area immediately after the quake, but rather a sharply intense "Odor".

That odor was not perceived through the digital images.

My expectations for digital technology were still optimistic.

At that time, smartphones and social networking sites became widespread, and helped democratize the world.

The Arab Spring has arrived.

Democracy and capitalism covered the globe along with the wave of digitization.

We are moving in one direction.

I had such "Optimistic expectations".

Then another 10 years passed.

The United States was in decline, and after 20 years of fighting in Afghanistan, it was defeated and withdrew from the country.

The United Kingdom left the European Union.

The Arabs have reverted to civil wars and iron-fist regimes after the Arab Spring.

China has become too confident and uncompromising, and it is clamping down domestically.

Democracy and capitalism are both without life.

"Optimistic expectations" remained only optimistic once again.

And COVID-19 has brought into sharp relief the shape of the country.

China is suppressing with an iron-fist..

France is also ruling with a heavy hand, but only against protests.

The United States is divided among its states.

The United Kingdom shows the strength of its logistic management.

India makes its people do push-ups.

Japan makes demands, has no presence, and hypothesizes. 

The world is in pieces.

Meanwhile, Japan has been falling. 

Its international competitiveness, which was once 1st, has fallen to 34th.

What we have gained during COVID-19 is a recognition of the digital defeat.

The eJapan strategy of 20 years ago and the last solid policy were both led by introducing IT into administration and education.

For 20 years, we stopped.

Launching the Digital Agency will help us recover from this defeat.

At this moment, digital technology is at the stage of transition from the Internet and smartphones to AI data.

It is the last chance.

After bringing an end to the "Kishotenketsu" (introduction, development, turn and conclusion) of the modern eras that were Meiji, Taisho, Showa, and Heisei, Reiwa will move us on to the post-modern era.

I wonder if that is the mood for the "Optimistic expectations".

The Olympics that were forced through did not glorify nationalism.

Especially the new city-based competitions where teenagers were the main participants. They were cooler, showing smiles rather than a hungry spirit, and what they shouldered was not the nation, but love and friendship.

The nationalistic, modern Olympics, where people competed for medals, was turned around, and became a super-modern, leisurely, and fun festival.

It is a great legacy.

10 years after September 11th was March 11th, and 10 years after that was COVID-19.

With each decade, "Optimistic expectations" have withered away.

What awaits us 10 years from now?

I hope to see the light.

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The OTAKU SUMMIT was held

■The OTAKU SUMMIT was held

Based in Ikebukuro Sunshine City, as Tokyo 2020's official cultural Olympiad.

Representative of The International Otaku Expo Association (IOEA), Kazutaka Sato, was the president of the executive committee.

I gave a congratulatory speech and talk at the opening.

https://otaku-summit.jp/

Plague in the 14th century. The authority of the church declined and the Renaissance was born.

There was the birth of art and science. The Middle Ages departed, and the modern age arrived.

What will COVID-19 produce?

Artists and geeks are resting at home.

There is expression born from difficult times.

Jazz and punk were born out of oppression.

I hope that new pop music will be born.

It has been 20 years since the term "Cool Japan" was coined.

In the past, the image of Japan was that of a "Fighting nation", typified by the words "Harakiri" (ritual suicide by disembowelment) and "Kamikaze" (a suicide attack).

This image was transformed into "Fighting companies", such as Toyota, Honda, and Sony.

Now this image has been replaced by "Fighting characters", such as Naruto, Pikachu, and Super Mario.　

The Western reception of contemporary Japanese culture exhibits different characteristics from that of the old exoticism and Orientalism of Kabuki, Sumo, and Geisha.

And the power to spread, penetrate, and influence, that Japanese pop culture now demonstrates is thought to be far greater than the inspiration that Ukiyo-e once provided for the birth of Impressionism.

In 2018, the "World Otaku Institute" was launched.

The idea is for the CiP Council - an incorporated association that is creating a special zone for the concentration of pop culture in Minato Ward, Tokyo - to collaborate with the International Otaku Expo Association (IOEA), to create a headquarters for otaku researchers from around the world.

In founding this project, I stated the following.

"I want to create a network of leading experts in otaku research, and develop that into a research institute that will bring joy to researchers and fans on all five continents.

I want the World Otaku Institute to be a sandbox for researchers from all over the world, where they can play freely, make mountains how they want to, and dig in.

At the same time, I want to devise ways to circulate research funds and business money."

The trouble with Cool Japan is business.

In 2004, the government set a goal of expanding the content market from ¥11 trillion to ¥15 trillion by 2010.

Currently, the market is at ¥13 trillion, so the target has not been reached.

However, the market for character products, tourism, and other related markets that use this content will amount to ¥57 trillion.

This accounts for 10% of GDP, and is close to the amount invested in construction.

If we look at the content industry by itself, even though it's scale may not be so large, the related industries and the ripple/external effects are significant, and a composite model of earning "By" content is expected.

The government's aim is to use the content industry as a catalyst to enhance brand power and image, and to grow overall industry, including consumer electronics, food, and tourism, etc.

In recent years, the content market has been on a trend of expansion, and in particular, "Online content", such as streaming, has tripled in 2019 since 2011.

Overseas markets are also being developed, and the overseas market for Japanese content has more than doubled in the past 10 years. We can see the light.

Barcelona, Spain, 2019.

IOEA and the World Otaku Institute teamed up to host the "Otaku Summit" at "Manga Barcelona", an event focused on Japanese manga, with a 25-year history, attracting 50,000 people.

Researchers and activists from the United States, Italy, China, and Japan spoke passionately about the challenges and prospects of otaku culture.

In all of these countries, the image of otaku culture is changing for the better.

Once a niche area, it has now become mainstream.

It has become the main culture, rather than a sub-culture.

At the same time as such things were being pointed out one after the other, there were strong opinions that otaku culture is spreading globally, transcending national borders, systems, and religions.

What can otaku culture do in response to global trends such as protectionism, and the swing towards conservatism?

How can we make the most of this power to reconciliate?

How can we strategically utilize the soft power of otaku culture?

Various questions were raised.

It was an opportunity to try and take a fresh look at the possibilities of otaku culture.

The Minister of Culture for Catalonia, Ms. Mariàngela Vilallonga Vives, also attended the event, where she and the CiP Council held a ceremonial signing of an agreement to promote the integration of digital culture and technological innovation.

The idea is to promote a strategy in which cities in the East and West of the world can work together to demonstrate their strengths through pop culture.

The World Otaku Institute is located in CiP, a special tech and pop zone in the Takeshiba district of the Tokyo Bay Area. The project is to create a digital national strategic special zone where content and IT industries are concentrated.

The CiP Council is the parent body that is driving the project forward.

The city opened in September 2020 with the participation of 50 companies and organizations in the animation, game, music, and IT industries.

Pop music and tech events will also be held in Takeshiba.

A showcase for the near future.

"An interesting future that lies a little further ahead". "Change Tomorrow", both of which are abbreviated as "CHOMORO".

The first event will be held the week after the Otaku Summit.

I want to develop research on otaku culture around the world at this new center that combines technology and entertainment.

This is my presentation.

"Otaku culture - the new normal!"

https://youtu.be/1Byq4l1vhy8

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Digital Transformation for Human Resource Development - What Should We Do?

■Digital Transformation for Human Resource Development - What Should We Do?

Digital Nation Japan Forum.

I appeared at the "Challenges of Digital Human Resource Development".

Digital transformation of human resources ranks 63rd in the IMD ranking. What should we do do?

With Member of Diet, Ms. Satsuki Katayama; Mr. Izumi, Head of the Information Economy Division of the Ministry of Economy, Trade and Industry; Mr. Urakawa, Chairman of SOMPO Systems; and Mr. Mori, Corporate Executive Officer at Deloitte Touche Tohmatsu Limited.

Here are my comments.

1. Situational awareness of digital transformation

Japan has fallen. The country's ranking in competitiveness has dropped in rank by 30 in 30 years of the Heisei era, and wages have become low.

What became clear during COVID-19 was that Japan's was poor in digital support. Its downfall was due to digital technology.

Remote work has been an issue for 30 years, but is at its lowest level in major nations.

Even more serious than industry are the public sectors of healthcare, education, and government. We cannot respond to crises on site with Fax, only 5% of classes can be done online, and 7.5% of national procedures are online.

For both the eJapan strategy from 20 years ago, and last year's framework policy, the introduction of IT to administration and education is at the core. It has stopped for 20 years.

There is the 4th industrial revolution and Society 5.0 through AI and IoT, but Japan has not even reached the 3rd industrial revolution or Society 4.0.

Firstly, the starting point is to recognize this.

However, I am hopeful. The reason for the delay is that the success experienced in the Showa era was too strong.

In industrial growth, Japanese-style management was highly praised.

The fields of healthcare, education, and government were considered "World-class".

There was little incentive to innovate digitally.

I noticed during COVID-19 that we have real ability.

Few deaths during COVID-19; it is likely to be overcome without lockdowns; and there is no damage to safety and security. Foreigners will return.

I want to respond now and turn this situation into an opportunity.

2. Issues with the digital transformation of human resources

The pool of human resources will expand rapidly.

Digital human resources = IT experts were unevenly distributed among vendors, SIer, and digital companies.

However, all industries and occupations are going digital, and everyone will become a digital human resource.

Not only vendors, but also finance, logistics, manufacturing, construction, and agriculture too.

Not only IT departments, but also management, planning, sales, general affairs, and accounting too.

The top, middle, and bottom layers of the workforce need to be deepened.

Top management = training experts at universities.

Training middle-level business personnel through recurrent education, training, and university curriculum organization.

Even More than that, in the long run, it is important to raise everyone's literacy. This will finally begin by having one PC per person, and making programming a mandatory subject.

iU was created to develop the human resources who will bring about innovation in information and management.

Having human resources who are useful in all industries, instead of just working for an IT company.

All members are trained together with the company as interns.

The fact that the number of partner companies reached 250 within one year of the opening of the university, is proof that there is a need for this from the industrial world.

3. Strategy for human resource development

Takuya Hirai the Digital Minister, has requested a regional Digital transformation of human resources development strategy, and iU is designing the curriculum. However, it is impossible for just one school to do this. I want to expand this nationwide through collaboration between industry and academia.

Teaching can be done online, but hands-on learning centers are needed. The Liberal Democratic Party's proposal calls for the development of 6 to 9 locations. I want to utilize universities in various locations.

However, I am optimistic in the long term.

Ten years from now, the PC mobile generation, who are now around 40 years old, will become presidents. Junior high school students will be entering the workforce. If we can survive until then, we will be fine.

What is needed is a generational change. 

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