KENICHI OHMAE

I. LIFE

Kenichi Ohmae was born on February 21, in 1943 in Kitakyūshū. Ohmae earned a
BS in chemistry in 1966 from Waseda University, an MS in nuclear physics in 1968 from
the Tokyo Institute of Technology, and a doctorate in nuclear engineering from
the Massachusetts Institute of Technology in 1970.

After graduation, Ohmae subsequently worked as a senior design engineer

for Hitachi from 1970 to 1972. From 1972 to 1995 he worked for McKinsey & Company.
As a senior partner he ran the company's Japan operations for a number of years. He
co-founded its strategic management practice, and served companies in a wide
spectrum of industries, including industrial and consumer electronics, finance,
telecommunications, food and chemicals. In 1995 he ran for Governor of Tokyo, but lost
to Yukio Aoshima.

In 1997 he went to the United States, where he was appointed Dean and
Professor of UCLA Luskin School of Public Affairs. In 1997 to 1998, he became a Guest
professor of Stanford Graduate School of Business, MBA Program. In 2011, he became
a Project director for Team "H2O", and coordinated in preparing the report "What should
we learn from the severe accident at the Fukushima Dai-ichi Nuclear Power Plant?" and
submitted it to Goshi Hosono, the Minister of Environment & Minister for the Restoration
of Nuclear Accident. In 2012, he became a member of The "Nuclear Reform Monitoring
Committee" of Tokyo Electric Power Company (TEPCO).

II. THEORIES

A. 3C Model

It is a business model that focuses on three key success factors for

success. Ohmae states that these three factors must be in balance in the
form of strategic triangle. These three key factors for success are:
 1. Corporation- needs to focus on the maximization of its strengths. The
corporation can influence the functional areas of the competition that
are critical to achieve success within a certain industry. Focusing on a
key functional area may create a decisive improvement in other
functions of the competition.

2. Customer- is the basis of any corporation. Corporations’ objectives are

to be the interests of its customers rather than those of its stockholders
or other parties. The important elements are needs, requirements,
demands, problem areas, buying motives, value components, decision
makers, etc. Segmentation of objectives and customers and the
market are important for constructing and adopting a strategy.

3. Competition- these strategies can be constructed by looking at

possible differentiation in functions such as purchasing, design,
engineering, sales and maintenance. One of the most important factors
is image and this can provide the necessary power.

III. BOOKS

 The Mind of the  The Borderless World

Strategist  Triad Power
 The End of the Nation
State
IV. MANAGEMENT PRINCIPLES
1. 3Cs Model

2. Ohmae introduced the Japanese management methods to a broad Western

audience, a specifically the Toyota practice of just-in-time production. He also
outlined the differences between Japanese and Western companies, in
particular:

 the long strategic planning horizon of Japanese companies

 the short planning horizon based on shareholder value thinking of Western

companies