Revisiting the Mistake That Halted Japan's Software Surge
Last updated: September 07, 2024 Read in fullscreen view



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Summary
This article explores the historical and economic factors that have contributed to the poor quality of Japanese software. He traces the roots of Japan's software challenges back to the post-WWII era and the dominance of zaibatsu and later keiretsu, which stifled innovation by prioritizing internal business over global competition. Despite Japan's initial success in hardware and early software development, the rise of personal computing in the 1980s caught the industry off guard, leading to a stagnation in software quality. However, recent technological advancements, such as cloud computing and smartphones, have sparked a resurgence in Japan's software development scene. Romero expresses optimism for the future, highlighting a shift in attitudes towards software developers and increased investment in startups, suggesting that Japan is on the brink of a new era of innovation.
The article discusses the cultural aspect of Japan's obsession with quality in software development. Japan has traditionally been a leader in technical perfection, with a master/apprentice model (senpai/kohai) and a focus on kaizen. However, in the software industry, the cheap, try-it-and-see model, leading to a lack of innovation, has led to a poor state of software. The article also touches on power structures, with the author questioning the attribution of this obsession to culture.
Key Points Summary
Japanese Software Quality Issues
The podcast addresses the common complaints about the poor quality of Japanese software, aiming to provide a deeper understanding of the historical and economic factors that contributed to this situation.
Historical Context
The narrative traces back to Japan's Meiji Restoration and the dominance of zaibatsu (large corporate groups) in the late 1800s, which shaped Japan's economic landscape and innovation trajectory.
Post-WWII Changes
After WWII, the American occupation aimed to dismantle the zaibatsu due to their political power, leading to their transformation into keiretsu (smaller corporate groups) that continued to dominate Japan's economy.
Keiretsu and Innovation
While keiretsu groups thrived in various industries, they struggled with software development, particularly during the PC revolution in the late 1980s, as they focused on integration and customization rather than innovative software solutions.
Missed Opportunities
Japan's software industry failed to capitalize on the emerging global PC market, leading to a stagnation in software innovation as companies prioritized internal sales over competitive development.
Cultural Perceptions
Software development was viewed as low-skill work, leading to a lack of respect and investment in software careers compared to hardware engineering.
Dot-Com Era Challenges
The dot-com boom highlighted Japan's lack of a robust software industry, with foreign companies dominating the market while local developers remained undervalued.
Shift in Developer Status
By 2010, changes such as cloud computing and smartphones began to elevate the status of software developers in Japan, leading to a new wave of startups and innovation.
Current Landscape
As of 2023, Japan is catching up in the global software market, with declining power of traditional systems integrators and increased investment in startups by both government and keiretsu firms.
Optimism for the Future
The podcast concludes with a hopeful outlook for Japanese software development, emphasizing the potential for a new economic miracle driven by startups, enterprise collaboration, and academic partnerships.
Continue reading at The forgotten mistake that killed Japan’s software industry
