Why Japan’s Digital Economy Is a Sleeping Giant

I recently read a report that stated though Japan was one of the most overworked countries in the world, the actual productivity rate is 64% less than that of the average US employee.

Let’s think about that for a second, 64%.

Overtime culture in Japan is so normal that it’s expected amongst just about every type of employee regardless of level. This long time unwritten rule is also about as damaging as it is common, causing even deaths, suicides, and illnesses over the year.

And for what? 64% less productivity then the next guy.

While we could go on about this, what we do know is that thankfully there are people working across organizations and institutions to change this in the hope that one day we can start asking a new question.

What happens when Japan wakes up?

What happens when companies start measuring output performance to hours logged, when cultural barriers start to break down even in the slightest so that time spent on the job can be computed against the value a company is adding to the market or to the client.

Sure, this may seem like a dream, but the reality is not far off.

Here are three ways Japan is starting to shift into the future and why it could have a massive impact on the global economy as a result.

More government intervention

Due to incoming pressure and competition from other areas of Asia, Japan has seen less than stellar growth in the last few years.

This declining growth rate has put pressure on the government to shake things up a bit by starting to put more emphasis on entrepreneurship, innovation, and of course- global market expansion.

As a result, companies are creating innovation divisions, giving once marketing directors titles like “Innovation directors” and finding ways to encourage youth to take risks in a culture that is known for anything but.

Stronger organizational education

Another area that we often talk a lot about and have as a service offering ourselves, is corporate education.

Japanese organizations love to learn while discovering new new ideas and practices, which is exactly what we do here at Definition. We’ve been approached by several companies to come on board and build curriculums, training programs, and other organizational educational tutorials to propel growth.

This yearning for education has yet to be fully spun around into a full time business model for organizations but all the potential is there. Also, this can be even further emphasized by the fact that Japan lacks a more than stellar educational program for the youth, in comparison to other countries. Again, pointing to the fact that if organizations are going to be able to maintain pace with this new digital future, a new educational process will need to be implemented as a result.

Complete metrics re-evaluation

The truth is Japan is a culture that thrives on perfection and data. So then the bigger question is why are they letting themselves get away with a 64% productivity slack rate?

If Japanese organizations and departments were able to develop a learning culture that translated into actual results across every individual and division, the outcome could be phenomenal.

Think about it for a second, we’re starting to see it with Facebook Workplace, and other new digital technologies coming about as ways not only to stay better connected, but better organized and performance driven.

If Japanese companies were to apply these three basic principles to an already overtime driven culture, it’s scary to think about the growth that would occur as a result.

Companies would be able to quantify how overtime hours equate to market impact, while also seeing organic benefits that come from an L&D culture- like less employee turnover and a more positive affinity toward the brand. Of course, this would then lead to more innovations that would have a great impact not only domestically in Japan but also internationally.

And if you ask us, that’s a giant worth waking up.

If you’re looking to market your business in Japan, contact us at hello@definition.media and we’ll help you get started.