But Japanese companies have also been on the front lines of digital transformation, from EVs (Nissan/Toyota) and semiconductors (Toppan) to retail (Rakuten) and recruiting (Recruit). The investments of SoftBank’sMasayoshi Son have made him one of Japan’s richest men, though he did miss out on a $155 billion paydayby dumping his 5% stake in Nvidiawhen it was worth about $4 billion.
Another company that’s quietly gaining traction is NTT Data. I recently met with Abhijit Dubey, who was appointed CEO of its global operationslast week, leading 150,000 employees in an IT services business that generates $18 billion of its $30 billion in revenue outside Japan. We talked about a range of topics from advances in photonics-powered data centers that use light to transmit data instead of electrical signals to how the company is helping clients transform their businesses with AI. Says Dubey: “Applying AI in your core operations is significantly harder than applying AI on a function.”
The biggest challenge for Dubey right now may be getting NTT Data on the radar of potential customers. NTT, or Nippon Telegraph and Telephone Corporation, was established in the aftermath of WWII as a state monopoly that displaced AT&T in running the country’s telecommunications system. The company was later privatized, and NTT Data was spun off, reorganizing as a holding company dividing the domestic and international operations. NTT is a familiar brand but not one that I associate with services that compete with, say, Accenture, TCS or Infosys.
It helps to have a strong presence in India, where NTT Data is powering a substantial part of the digital infrastructure. Its work with the U.S.’s IndyCar series may help, too. Building brands in new markets is hard. Certainly, it could be a plus to have roots in Japan’s long-held business philosophy of continuous improvement (Kaizen) and selfless service (Omotenashi)—or a challenge coming from a culture traditionally associated with lifetime employment and hom*ogeneity at the top.
That’s changing, as Japanese companies like NTT have been especially active in M&A activity to grow their global footprint. In the meantime, Dubey is getting out there. “We have to work towards preeminence,” he says. Right now, as the new head of a reorganized global operation, his first task may be getting people to simply know who they are.
More news below.
Diane Brady
diane.brady@fortune.com
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TOP NEWS
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Prosecuting Boeing
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AROUND THE WATERCOOLER
Nvidia’s stunning rise offers flashbacks to Cisco and the dotcom era by Jeff John Roberts
So long, chief diversity officer? Gen Z and millennial professionals say these C-suite roles are going extinct by Emma Burleigh
Gen Z are increasingly becoming NEETs by choice—not in employment, education, or training by Orianna Rosa Royle
Tiger mosquitos, Asian hornets and bed bugs: What climate change means for Europe’s ‘pest demographics’ haunting the Paris Olympics by Adam Gale
90% of C-suite executives believe their company promotes worker well-being. Why do only 60% of workers agree? by Beth Greenfield
Europe and China agree to talk about EV tariffs, a ‘first step’ to avoid a potential trade war between two of the world’s largest economies by Lionel Lim
This edition of CEO Daily was curated by Nicholas Gordon.
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