TT-737 -- Defense as a Service (DaaS), ebiz news from Japan

* * * * * * * * * T E R R I E 'S T A K E * * * * * * *
A weekly roundup of news & information from Terrie Lloyd.

General Edition Sunday, Dec 01, 2013, Issue No. 737


- What's New -- Defense as a Service (DaaS)
- News -- Takeda to get first foreign boss
- Web Content/Tech Job Vacancies
- Upcoming Events
- Corrections/Feedback
- Travel Picks -- Kyoto Leaves, Art in Iwate
- News Credits

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Back on January 27th this year, the Japanese media were focused on the
unloading of nine coffins (the tenth arrived a day later) of JGC oil
workers who had been killed in a terrorist attack on the Amenas oil
field in Algeria. The victims arrived on a commercial flight, along
with just seven survivors. In fact the Japanese death toll was the
highest of all nationalities working in Amenas, allegedly because the
terrorists were looking for European and American hostages and saw the
Asians as being useless to them, so they simply executed them on the

The irony of their actions is that it was revealed later that only the
Japanese government had offered to pay ransom money, in unlimited
amounts, for the safe return of their nationals. The offer was never
relayed to the terrorists because of the Algerian government's policy
on not paying ransoms.

At the time of the crisis, very little news was shared with the
outside world, which again was revealed later to be because many
foreign nationals had managed to hide away in the compound, and their
governments -- particularly those of the U.S. and U.K. -- didn't want
to alert the terrorists that they'd missed some people. This lack of
information along with the inability to take any sort of on-the-ground
action was particularly frustrating to PM Shinzo Abe's government.
Despite specifically asking for advance notice of any decisive
Algerian government action against the terrorists, the Algerian
authorities nonetheless decided to raid the oil field without letting
the Japanese know. Yes, they had good reason, because the terrorists
were getting ready to blow the place up, but still, as a major
investor in the oil field, Abe his government deserved some
involvement. Afterwards, Abe's frustration was vented with the
strongly worded statement that the loss of civilian lives during the
Algerian government's operation was "...truly regrettable."

[Continued below...]

----------- THAI'S NEWEST DESTINATION - SENDAI ------------

On December 3, 2013, THAI launches flights to Sendai, direct and
non-stop from Bangkok. Sendai is the capital city of Miyagi
Prefecture, situated in the heart of the scenic Tohoku region. THAI's
new flights will operate non-stop from Bangkok every Tuesday, Thursday
and Saturday, with TG680 departing Bangkok at 23:59 and arriving in
Sendai at 07.55 on the following day. The return flights will operate
on Wednesday, Friday and Sunday, with TG681 departing Sendai at 10:30
and arriving in Bangkok at 15.40.

For ticket reservations, please visit or call
THAI's Japan desk at 0570-064-015, or the international Contact Center
at +66-02-356-1111.

[...Article continues]

This event was galling to Abe because it was just one more
demonstration of Japan's impotence in the international arena, even
though the country is making substantial investments all over the
world. It is therefore not surprising that last month (November), the
government passed legislation that the Self-Defense Forces (SDF) can
now carry Japanese and foreign nationals by land transport as well as
by sea and air. While this doesn't sound like a big change, it does
mean that suddenly the SDF can reach ANY crisis point, not just those
serviced by an airport or sea docks. Also, the legislation loosens up
just who can hitch a ride with the SDF vehicles and the scope of the
weapons they can take with them.

Then last month another security crisis popped up, in the form of
China unilaterally imposing a new air traffic identification zone over
the Senkaku islands, effectively laying down their first step of
trying to wrest control of the islands from Japan. Again, Abe is
feeling impotent, and has to make do with the Americans coming in and
saving the day (by flying their B52s through the zone and challenging
the Chinese to do anything about it). By now, it's obvious that Abe
will milk both of these events for all he is worth, to ensure that
Article 9 of the Constitution is changed and that Japan be given in
degrees the freedom the ability to undertake military action as and
when it sees fit.

While we don't want to judge whether or not it is appropriate for the
Japanese to once again become an independent military power, we find
it strange that Abe doesn't take already internationally acceptable
interim measures to beef up Japan's military response. Dealing with
changing the Constitution and the U.N. Security Council will take
time. In the meantime his interim solution could be to employ (or
cause to have created) one or more Private Military Companies (PMC),
working on the behalf of the Japanese government to get "sticky" stuff

The USA is a good example of how PMCs can be used. Apparently about
half of the U.S. armed forces budget and 30%+ of its population
consists of private contractors, who do everything from food and
facilities, through to logistics, prisoner interrogations, and
training of local fighters. Unfortunately, after a series of ugly
incidents, including a massacre of 17 Iraqi civilians in Nisour
Square, Baghdad in 2007, allegedly by Blackwater employees, the PMC
sector has started to get a bad name for itself. As a result, some of
the leading firms got together under the guidance of the Swiss
government, and created an ethics oversighting accord called the
International Code of Conduct for Private Security Providers (ICoC)
and an association to go with it. There are now 708 PMCs who have
signed this accord.

Why do we bring this up? Well, looking at the list at, you can see a who's who of PMCs active around
the world. These companies are operating in every hot spot you can
imagine, as reading some of their profiles will reveal. What's
interesting is that although there are PMCs everywhere, not one of
those 708 signatories is based in Japan. We find this remarkable,
because there are four such companies based in South Korea alone. This
either means that there are no Japanese PMCs (although, we have read
several times there is at least one), or they are keeping a
deliberately low profile for some reason. Normally the Japanese love
to sign international good-behavior accords. ;-)

Anyway, if Abe really wanted to get things done more quickly than a
constitutional change will take, there are plenty of precedents and a
general acceptance of such organizations by Japan's main allies. Going
back to those four PMCs in South Korea, one, IntelEdge, caught our
eye, because it appears to be tailor-made for a Japanese version. The
company specializes in maritime security, and is managed by
ex-presidential (i.e., South Korean) secret service and intelligence
agency people. It has a "workforce" of Korean and U.K. (UDT/Seal)
fighters, and special land and airborne attack force personnel. This
is no desk-bound organization and it is obviously able of getting
stuff done that the South Korean armed forces cannot.

Taking this idea of outsourcing one's crisis handling to a commercial
entity a step further, we have often wondered why the USA and Japan
don't just come to a commercial arrangement to have portions of
Japan's security managed and executed by the U.S. on a proper
contractual basis. Already the USA is sending in drones to test
China's new air identification zone. Ideally these should be paid for
on a monthly basis by the Japanese, with data being sent back to
Japanese analysts to digest and implement into their own strategies
for the future.

It is rumored that drones cost about US$120MM (versus the commonly
quoted media figure of US$5m each) to operate in a squadron of four
for a year, because drones need ground support infrastructure and
operations to work. Even at this number, it would be economically
viable for the Japanese and would be much quicker and more efficient
than for them to rebuild and replicate everything here in Japan. Yes,
Japan has the technical capability, but how often will its team
actually see enough action to be considered sufficiently experienced
to meet a real crisis? The USA on the other hand, has extensive
expertise and investment in drones already.

Without belittling the seriousness of the situation with China, we see
this outsourcing opportunity as something similar to how cloud-based
software is being sold to companies these days. Defense-as-a-Service
would allow countries like Japan to use someone else's existing
expertise and infrastructure, and to implement the solutions quickly
and (relatively) cheaply. Most importantly, it would be a way to let
Abe's government off the hook. It is going to take him a long time to
change the Constitution, and China and other global challenges may not
wait around for it to happen.


Wrapping up, when was the last time you were asked as a non-Japanese
what you think about how Japan serves its foreign population? Probably
never? Well, that is going to change substantially over the next
couple of years, as Japanese companies suddenly wake up to the
opportunities presented by the lead-up to the 2020 Olympics. Japan
Inc. is running a survey for the Isetan-Mitsukoshi company, wondering
whether/how you figure them in your list of shopping destinations.
They're offering plenty of Isetan gift coupons and Starbucks cards (a
ratio of about 1-in-3.5) to respondents, so if you have 5 minutes to
spare, please go to:

...The information janitors/



We would like to hear from you to improve Isetan-Mitsukoshi Department
Store's foreign customer service. Please take 5 minutes to complete
this survey and you could win a JPY10,000 Gift Card from
Isetan-Mitsukoshi (10 Winners) or a JPY1,000 Starbucks Card (150
Winners). Isetan-Mitsukoshi Department Store would make all possible
efforts to reflect your opinions and to make shopping experience for
foreigners a better one.

To read more details and take the survey, please go to:


+++ NEWS

- Demand for foreign travel soars
- Amazon joins others with online video
- LNG shipping to hit the big time
- Takeda to get first foreign boss
- Eddie Jones makes full recovery

> Demand for foreign travel soars

While only 15% of Japan's companies are exporters, and less than 1%
are listed companies, the number of people working for such companies
still number in the millions. And that is enough people benefitting
from fatter pay checks to be wanting to travel abroad this year-end.
Apparently a near record number of people are expected to go overseas
from December 28th, possibly as many as 660,000, just 20,000 less than
the peak of 1996/97. ***Ed: Thanks to the holiday calendar, this year
features an exceptionally long unbroken string of nine days off, from
December 28th through January 5th -- easily enough for a leisurely
trip to Europe, SE Asia, or Hawaii.** (Source: TT commentary from, Nov 30, 2013)

=> Amazon joins others with online video

A tectonic shift has been going on in the Japanese market for video
entertainment over the last few months, and this week Amazon Japan
just announced that it will be distributing more than 26,000 video,
movie, and TV drama titles online, through its instant video service.
This means Amazon joins Google and Apple with similar services.
Amazon's offering will be JPY100 for a 30-day window to watch the
video, with two days to finish watching after the stream starts. While
priced the same as Google, the window to watch is significantly
longer. ***Ed: One wonders how Tsutaya is going to stay in the video
business in the face of such massive competition. You can't get much
more convenient than 'on-demand', or cheaper than JPY100...** (Source:
TT commentary from, Nov 26, 2013)

=> LNG shipping to hit the big time

Despite tough times in the shipping industry recently, the nation's
leading shipping companies see an unstoppable demand for Liquefied
Natural Gas (LNG) and will be ordering as many as 90 new LNG tankers
over the next 6 years. LNG consumption is of course way up for Japan,
due to the many halted nuclear reactors around the country, but
internationally LNG is also becoming dramatically more popular as
well. Global LNG demand is now around 250m tonnes and is expected to
soar to 400m tonnes by 2020. Each tanker costs about JPY20bn to buy
and it's expected that they will all be built in Japan. (Source: TT
commentary from, Nov 29, 2013)

=> Takeda to get first foreign boss

For the first time in its 230-year history, Japan's largest drug
company, Takeda, has decided that its next president will be a
non-Japanese. The new candidate will be Christophe Weber, formerly a
GlaxoSmithKline executive, who was head-hunted recently. Weber will
enter Takeda as its COO in April next year and is expecting to be
named president in the AGM in June. The current president, Yasuchika
Hasegawa, will stay on as CEO, in addition to becoming the Chairman of
the company. ***Ed: Interesting to see mainstream Japan accepting the
need for internationalization at the top as they radically change
their makeup through foreign M&As. Obviously Takeda was put off by
what happened at Olympus.** (Source:, Nov 30, 2013)

=> Eddie Jones makes full recovery

Rugby fans will be happy to hear that not only is Japan rugby coach,
Australian-Japanese Eddie Jones, out of hospital, but he is also
expected to make a full recovery after his stroke in October. Jones
reckons that he is feeling well enough to return to coaching the
national team, and is apparently looking forward to preparing the
Japanese side for the 2015 World Cup to be held in the U.K. (Source:
TT commentary from, Dec 01, 2013)

NOTE: Broken links
Some online news sources remove their articles after just a few days
of posting them, thus breaking our links -- we apologize for the

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=> Are you in web content or engineering? If so, this section is for you.


- Experienced Sales Manager

If you have experience selling media, software, or other intangibles
and are bilingual (Japanese and English) and looking for a place to
grow, Japan Inc. Communications is looking for a sales manager to lead
its new media sales team. The role will be to develop the market for
our media products, the largest sites of their type in Japan, and to
grow the sales team to 6-10 people over the next 12 months. The role
involves selling to clients in Japanese, while English is the primary
language in the office. The position is open to anyone with 3-5 years
relevant experience. If a non-Japanese, then visa sponsorship is a
possibility for the right person.

Friendly team, interesting technology, incentivizing remuneration
package, and varied work are all part of the opportunity. Please send
your resume to


- Bilingual account manager for major tourism portal
(, JPY3M - JPY5M
- Bilingual sales trainee for web media properties, JPY2.5M-JPY3M +
10% commission
- English-only experienced PHP Zend software developer, 5 years
experience, JPY3.5M - JPY5M

Interested individuals may e-mail resumes to:




----------------- ICA Event - November 29th-----------------

Speaker: Stephen Givens, Corporate Lawyer based in Japan
Title: "Does Softbank Know What It is Doing Outside Japan?"

Details: Complete event details at

Date: Friday, November 29th, 2013
Time: 6:30 Doors open, Buffet Dinner included and cash bar
Cost: 4,000 yen (members), 6,000 yen (non-members) Open to all. No
sign ups at the door!!!!!!!
RSVP: RSVP by 10am on Monday 25th November, 2013. Venue is The Foreign
Correspondents' Club of Japan

---------------- Start a Company in Japan -----------------

Entrepreneur's Handbook Seminar 15th of February, 2014

If you have been considering setting up your own company, find out
what it takes to make it successful. Terrie Lloyd, founder of over 17
start-up companies in Japan, will be giving an English-language
seminar and Q&A on starting up a company in Japan.

This is an ideal opportunity to find out what is involved, and to ask
specific questions that are not normally answered in business books.
All materials are in English and are Japan-focused.

For more details:



=> No corrections or feedback this week.


--------- "Operation Philippines" Disaster Relief ---------

The Japan Emergency Team announces "Operation Philippines", its 89th
Disaster Operation since 1989 when the team was formed by 38 students
from Tokyo`s Chuo University. Typhoon Haiyan is the strongest Typhoon
to hit the Philippines. There have been over 5,000 confirmed deaths
and more than 11 million people have been affected by the disaster.

The team and partners are on the ground and are urgently requesting
emergency supplies including canned and instant food, powdered milk,
bottled water, tents, sleeping bags, used tablet and laptop computers,
towels, soap, shampoo, home medical kits and donated airline miles for
team members to travel to the area. In addition, individuals able to
spend a minimum of three days are asked to contact the team for
information on being a volunteer on site.

Cash donations can go to: Postal Furikae 00160 7 162438 Nihon Kinkyu
Enjotai, while supplies, airline miles, and other donations and
enquiries can be initiated by contacting



=> Kyoto Nison-in Temple in Autumn, Kyoto
Nice view from the top of the hill

Nison-in Temple in Arashiyama, located in northwest Kyoto, is a
fantastic place to enjoy autumn leaves. The view from a secret spot at
the top of the hill behind the temple is especially nice. Most people
stay near the top of the long approach or at the main temple buildings
to snap photos of the autumn leaves. But if you are a good walker,
don't stop there. Follow the steps through the cemetery area and climb
up the hill. You'll be rewarded with a stunning view of the gorgeous
colored mountains below.

=> Inside the Iwate Museum of Art, Iwate
20th Century Japan from Sculpture to Canvas

We enter the Iwate Museum of Art, which is huddled amongst the
mountains which surround Morioka City, to take a peek at their
permanent Museum Collection. While temporary exhibitions come and go
and bring great insights, this cluster of rooms on the gallery's
second floor shows the progression of Japanese modern art, from an oil
painting depicting Morioka in 1941 to bright, silk-screened posters
from the 1970s. An easy ten minute walk from Morioka Station. ***Ed:
Nice series of photos of the artwork on display. Obviously no
photography restrictions...**


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