Chapter III : Recovering from Managerial Crisis (1986–1994)

Total Page:16

File Type:pdf, Size:1020Kb

Chapter III : Recovering from Managerial Crisis (1986–1994) Chapter III Recovering from Managerial Crisis (1986–1994) Establishing Managerial Principles and Daikin Management The period from 1986 to 1994 saw truly tumultuous international changes, including the collapse of the Berlin Wall, the unification of East and West Germany, the collapse of the Soviet Union, and the end of the world’s Cold War structure. Shortly before that, in September 1985, the finance ministers of five countries— France, Germany, Japan, the United Kingdom, and the United States—met to discuss the highly appreciated U.S. dollar. They reached an agreement, the Plaza Accord, which subsequently led to a rapid appreciation of the yen in Japan from the end of 1985. Once into 1986, concerns emerged about the negative effect a strong yen would have on exports, and the Japanese economy entered a peri- 118 Chapter III Recovering from Managerial Crisis (1986–1994) 119 od of temporary economic adjustment. But there were internation- of the company’s air conditioning business. Daikin introduced re- al expectations for an expansion of demand in Japan, and in that forms in that business during the recession following the Plaza context the Bank of Japan lowered the official discount rate and Accord. It built a strong business base at that time, and together the central government introduced other policies to stimulate de- with the ensuing turn-around of the Japanese economy and the mand in Japan. As a result, from 1987 the economy made a 180-de- rapid domestic growth that followed, the company comfortably gree turn, and business expanded quickly. The four leaders in the handled increased demand. Daikin also rebuilt a firm business new business situation were land, housing, the stock market, and foundation for its chemical business, which grew into a most im- other forms of individual consumption and private-sector de- portant component in the company’s subsequent growth. Al- mand. An economic situation called the “assets inflation” devel- though Daikin achieved an all-weather managerial structure by oped. With the backdrop of this rapid expansion in domestic de- 1992, the ten years from 1993 were called the ”lost decade,” a long mand, Japan’s economy came to be called a “bubble economy,” period of depressed business, which told the company its busi- and the highly favorable economic situation continued until the ness structure was not as solid as it thought. Daikin later came to early 1990s. Daikin’s business results, meanwhile, supported by realize that the organization it established during the bubble an expansion in the domestic demand for air conditioning equip- economy was like a house of cards, and it thus had to tackle basic ment, grew rapidly. The chemical products business, in contrast, reforms to its managerial structure from 1994 on. Simultaneously, was sluggish, mainly because of difficult issues the company the company was also scheduled to review the Vision Manage- faced related to restrictions on the emission of fluorocarbons, a ment Plan established during Minoru Yamada’s tenure as presi- lawsuit in the U.S. related to the dumping of fluororesins, and a dent. violation of COCOM regulations. Daikin termed these issues its Together with the globalization of Daikin’s air conditioning “triple ordeals,” and while responding to them it tackled the mat- business, the make-up of the employees in the group of over- ter of essentially reforming the physical make-up of its chemical seas-related companies became internationalized. Even in Japan, business. As a result of those efforts, the company returned vigor as the company grew larger its workforce quickly expanded and to its sluggish chemical business and realized further growth. diversified, including new college graduates and those who joined Daikin prepared “Vision 95,” its new business plan, in 1990. the company midway through the year. As a result, the company The company worked vigorously according to the plan for recov- came to be comprised of a mixture of employees with differing ery of its chemical business and construction of a global system cultural and educational backgrounds. Even for Japan, Daikin for its air conditioning business. By the year 1992, smack in the stood out for its mixture in the workplace made up of employees middle of the Japanese “bubble” economy, Daikin had achieved of different ages and backgrounds. Not only managers, of course, three main business goals: an all-weather organization, emphasis but all levels of ordinary employees had to embrace a common on technology, and strengthening of group management. What awareness, and the company had to establish clear management made such business development possible was the rapid growth principles and behavioral guidelines. With that backdrop, Daikin 120 Chapter III Recovering from Managerial Crisis (1986–1994) 121 established a new set of management principles in May 1990. The company’s basic philosophy when its employees appreciate that previous principles guiding the company dated from 1958, and philosophy the most and that is also the best time to have that were expressed in three points: “absolute credibility,” “enterpris- thinking spread widely throughout the company.” Such thinking ing management,” and “harmonious personnel relations.” At the expressed Yamada’s wish to have all Daikin employees thorough- time, those principles were sufficient for guiding the employees. ly appreciate the company’s guiding principles. And in response Under the new business environment in the 1990s, however, ten to the Daikin Group’s global development, an English language new guiding principles were established with the focus on “peo- version of the guiding principles was prepared and distributed ple,” and each principle had specific, detailed behavioral guide- around the world. The employees of the overseas group of Daikin lines. The ten management principles, expressed as follows, out- companies were then urged to read and appreciate the company’s lined the type of company Daikin aimed to be, and they guided basic philosophy and its behavioral guidelines. the employees specifically in terms of the behavior expected of Included among the company’s ten management principles them inside the company. are six items that directly express respect for the individuality of each employee, a reflection of President Yamada’s beliefs. He 1. Daikin should be a company trusted by society played a leading role in establishing personnel policies that em- 2. Daikin should be a company offering various opportunities phasized respect for all employees. And to realize true fairness in to its employees dealing with employees, he felt a strong necessity to support a 3. Daikin should constantly be growing and developing system in which the company clearly rewarded employees who 4. Daikin should grow together with its individual employees made greater efforts to contribute to the company’s growth. He 5. The foundation of management should be harmony among believed that personnel in the company were “people who came high-spirited employees together for some reason” and he supported policies that treated 6. The foundation of management is responsive labor-manage- employees well. On a related note, in 1989 the company increased ment relations the separation pay of employees, increased the scholarships grant- 7. Fair personnel affairs, and a flexible organization ed to children left after an employee’s death, reviewed the system 8. Three essentials for business managers: Sensitivity, courage, and conditions for employing handicapped persons, and intro- and creative leadership duced a system for rehiring employees after they retired at the age 9. Development as a group of 60. All those steps let the employees feel pride and an attach- 10. Activities as a good corporate citizen; activities based on cor- ment to the company. It was truly a Japanese-style employment porate ethics; and formation of a network of people system that the company built and improved over the years. It responded to the Japanese life cycle by providing stability in em- President Minoru Yamada once said, “The regular business ployment and allowing employees to relax concerning their con- activities of management in a company are most in line with the tinued employment. Daikin was among the earliest Japanese com- 122 Chapter III Recovering from Managerial Crisis (1986–1994) 123 panies utilizing such a system for evaluating the capabilities of Kanaoka Factory, Rinkai Factory, Kashima Plant and Shiga Plant. employees. It was exactly because Daikin strongly enforced “man- It also invested heavily in its air conditioning equipment delivery agement centered on personnel” that it was able to build a “group centers and to increase the number of its air conditioning agents. of people filled with vitality.” That same spirit remains unbroken Looking only at the company’s investments in directly related in Daikin to this day. companies, total investments in 56 domestic and overseas compa- During the years covered in this chapter—1986–1994—Dai- nies for the period ending in March 1988 were 3.2 billion yen. For kin’s business scale expanded quickly and globally. Sales of 276 the period ending in March 1993, those investments jumped to 66 billion yen for the period ending in March 1989 for Daikin alone companies and 23.9 billion yen, a roughly eight-fold increase in a reached 368 billion yen for the period ending in March 1992, five-year period. which was 30 percent growth in three years. Among total sales, To cover the investments it made at that time, Daikin secured those for air conditioning accounted for over 70 percent of the to- external funds in various ways. In the 1980s, several major finan- tal, constantly maintaining an annual profit of 9–12 percent. The cial moves, such as the issuance of convertible bonds and war- company continued its globalization during this period, with ag- rants overseas had become much easier than previously after the gressive investments particularly in European countries and financial Big Bang.
Recommended publications
  • Japanese Manufacturing Affiliates in Europe and Turkey
    06-ORD 70H-002AA 7 Japanese Manufacturing Affiliates in Europe and Turkey - 2005 Survey - September 2006 Japan External Trade Organization (JETRO) Preface The survey on “Japanese manufacturing affiliates in Europe and Turkey” has been conducted 22 times since the first survey in 1983*. The latest survey, carried out from January 2006 to February 2006 targeting 16 countries in Western Europe, 8 countries in Central and Eastern Europe, and Turkey, focused on business trends and future prospects in each country, procurement of materials, production, sales, and management problems, effects of EU environmental regulations, etc. The survey revealed that as of the end of 2005 there were a total of 1,008 Japanese manufacturing affiliates operating in the surveyed region --- 818 in Western Europe, 174 in Central and Eastern Europe, and 16 in Turkey. Of this total, 291 affiliates --- 284 in Western Europe, 6 in Central and Eastern Europe, and 1 in Turkey --- also operate R & D or design centers. Also, the number of Japanese affiliates who operate only R & D or design centers in the surveyed region (no manufacturing operations) totaled 129 affiliates --- 125 in Western Europe and 4 in Central and Eastern Europe. In this survey we put emphasis on the effects of EU environmental regulations on Japanese manufacturing affiliates. We would like to express our great appreciation to the affiliates concerned for their kind cooperation, which have enabled us over the years to constantly improve the survey and report on the results. We hope that the affiliates and those who are interested in business development in Europe and/or Turkey will find this report useful.
    [Show full text]
  • ESG in Japan: Misunderstood & Underestimated
    ESG in Japan: Misunderstood & Underestimated Comgest’s investment approach is grounded on thorough fundamental analysis carried out by experienced portfolio managers located in the markets where they invest. Seasoned investors who spend years researching and building relationships with local companies develop an understanding of cultural and regional nuances that are not obvious to outsiders. We believe this leads to perceptive investment insights that few other firms can match. This white paper, authored by Comgest PM Richard Kaye who has spent almost three decades living and investing in Japan, illustrates how experienced local investors can spot opportunities that others miss. Richard Kaye Analyst / Portfolio Manager, Japan Japan is in the process of being rediscovered after a “lost generation” in which it was largely neglected by both domestic Richard Kaye joined Comgest in 2009 and international asset allocators. However, despite the renewed and is a Tokyo-based Analyst and interest in this fascinating and broad market, international investors Portfolio Manager specialising in remain wary of corporate Japan’s ESG credentials. Japanese Japanese equities. With a wealth of companies have a reputation for being behind their global experience in Japanese equities, peers when it comes to ESG activities and transparency. We Richard became co-lead of Comgest’s believe that this characterisation is misleading: many Japanese Japan equity strategy upon joining the companies appear to be ahead of the rest of the world in terms of Group. He started his career in 1994 as environmental technologies and have a deep commitment to their an Analyst with the Industrial Bank of founding vision and social purpose.
    [Show full text]
  • Whither the Keiretsu, Japan's Business Networks? How Were They Structured? What Did They Do? Why Are They Gone?
    IRLE IRLE WORKING PAPER #188-09 September 2009 Whither the Keiretsu, Japan's Business Networks? How Were They Structured? What Did They Do? Why Are They Gone? James R. Lincoln, Masahiro Shimotani Cite as: James R. Lincoln, Masahiro Shimotani. (2009). “Whither the Keiretsu, Japan's Business Networks? How Were They Structured? What Did They Do? Why Are They Gone?” IRLE Working Paper No. 188-09. http://irle.berkeley.edu/workingpapers/188-09.pdf irle.berkeley.edu/workingpapers Institute for Research on Labor and Employment Institute for Research on Labor and Employment Working Paper Series (University of California, Berkeley) Year Paper iirwps-- Whither the Keiretsu, Japan’s Business Networks? How Were They Structured? What Did They Do? Why Are They Gone? James R. Lincoln Masahiro Shimotani University of California, Berkeley Fukui Prefectural University This paper is posted at the eScholarship Repository, University of California. http://repositories.cdlib.org/iir/iirwps/iirwps-188-09 Copyright c 2009 by the authors. WHITHER THE KEIRETSU, JAPAN’S BUSINESS NETWORKS? How were they structured? What did they do? Why are they gone? James R. Lincoln Walter A. Haas School of Business University of California, Berkeley Berkeley, CA 94720 USA ([email protected]) Masahiro Shimotani Faculty of Economics Fukui Prefectural University Fukui City, Japan ([email protected]) 1 INTRODUCTION The title of this volume and the papers that fill it concern business “groups,” a term suggesting an identifiable collection of actors (here, firms) within a clear-cut boundary. The Japanese keiretsu have been described in similar terms, yet compared to business groups in other countries the postwar keiretsu warrant the “group” label least.
    [Show full text]
  • Facilitation of Information Transfer on Chemicals in Products
    Facilitation of Information Transfer on Chemicals in Products The Ministry of Economy, Trade and Industry (METI) developed ‘chemSHERPA’ [kémʃéərpə] as a new information transfer scheme for chemicals in products throughout their supply chains. METI hopes that the dissemination of chemSHERPA may contribute to reduce the workload of both providers and recipients of the information. From the beginning of the development of chemSHERPA, METI has been in communication with international bodies such as the IEC and the IPC, etc., with the aim of developing chemSHERPA into not only a Japanese standard but also an International standard. To make it a de-facto standard, METI has introduced this scheme to international organizations and governments of other countries for their active use. The Joint Article Management Promotion Consortium (JAMP) is a governing body for chemSHERPA from April 2016 and see a shift to chemSHERPA. We believe many companies are preparing towards implementing chemSHERPA. Based on the efforts mentioned above, the following companies and company groups have agreed with the dissemination of chemSHERPA, and METI will continue to work with JAMP and companies to spread the use of chemSHERPA to internal as well as external supply chains as needed.(Please contact us if any company or company group has interest in putting its name below.) It should be noted, the use of the provision of data entry support tools is free of charge in principle with the aim of promoting wider use of chemSHERPA. [Contact information] Chemical Management Policy Division Manufacturing Industries Bureau Ministry of Economy, Trade and Industry [email protected] 03-3501-0080 (direct) 03-3501-1511 (ex.
    [Show full text]
  • BMS Interface for Air-Conditioning Systems
    BMS Interface for Air-Conditioning Systems Installation and User Guide www.microtrol.co.uk BACnetTM is a registered trademark of ASHRAE (American Society of Heating, Refrigerating and Air-Conditioning Engineers, Inc.) Contents 1. Supplied Parts............................................................................................................................ 3 2. Important Information ............................................................................................................... 4 3. Product Overview ...................................................................................................................... 5 3.1 Differences between Black Pear 1 and Black Pear 2 ......................................................................... 6 4. Connection Details .................................................................................................................... 7 4.1 Power Supply ....................................................................................................................................... 7 4.2 HVAC Communications Network ........................................................................................................ 7 4.3 Serial Communication Port .................................................................................................................. 8 4.4 Digital Input / Output ............................................................................................................................ 8 4.5 USB .....................................................................................................................................................
    [Show full text]
  • Carving out Daikin's Future with AI And
    A Science Dream Created by People Vol.03 Technology and May.2018 Innova tion Center Special Feature Daikin Undergoes Transformation Carving out Daikin’s Future with AI and IoT Interview Yoichi Ochiai The digital nature society that is just around the corner. TIC seeks collaborative partners with whom to generate new value. How should the future For further inquiries, please contact: [email protected] look for technology? Date of publication: May 1, 2018 (Volume 03) Published by Technology and Innovation Center, Daikin Industries, Ltd. 1-1, Nishi-Hitotsuya, Settsu, Osaka 566-8585, Japan (within Yodogawa Plant) http://www.daikin.com/about/corporate/tic/index.html Phone. +81-6-6195-7051 (switchboard) Y Interview oichi Daikin Undergoes Transformation Contents……22 Group Leader and Senior Engineer Technology and Innovation Center IAQ Technology Defining the Researcher ③ Tomohiro Yabu Conventional air conditioners will become ……26 Vol. 03 systems that maintain temperature while 2018 stimulating the senses Key Technology ③ “Advancement” ……30 of analysis/evaluation technology ……33 O A Science Dream Created by People ……01 Introducing future of air conditioner Daikin thinks of Technology and Innovation Center Heating, Ventilating, Vol.03 Head of the Digital Nature Group, May.2018 A Science Dream Created by People University of Tsukuba Air-conditioning and Refrigerating Technologyion Centerand CarvingSpecial Article out Daikin’s Future with AI and IoT Innova t Daikin Undergoes Transformation Expo Report Special Feature Interview Carving out Recent External Presentations Daikin’s Future Yoichi Ochiai ……04 with AI and IoT Yoichi Ochiai Challenge Interview The digital nature society The digital nature society that is just around the corner.
    [Show full text]
  • Coolplug Coolinkhub HVAC Bridge Quick Installation Guide
    CoolPlug CooLinkHub HVAC Bridge Quick Installation Guide Warning Read and understand the following Safety Guidelines and Warnings to ensure a safe installation Failure to follow WARNING may result in injury or death. This equipment is to be installed by accredited Install the equipment only in a restricted access electrician or similar technical personnel, as per location. these installation instructions. When wall mounting, be sure to fix firmly on a stable Read the installation instructions before connecting surface and in accordance to the instructions below. the system to the power source. When DIN rail mount fix the devices properly to All electrical work must be performed by a licensed the DIN rail following the instructions below. technician, according to local regulations. When mounting on DIN rail inside a metallic cabinet Ultimate disposal of this product should be handled be sure to properly connected to earth. according to all national laws and regulations. Unplug power when connecting the wires. Installation of the equipment must comply with local Pay attention to the polarity of power and and national electrical legislation for installation of communication cables when connecting them electric equipment. Disconnect power of any bus or communication Do not install the devices outdoors or exposed to cable before connecting the system direct solar radiation, water, high relative humidity or dust. 3 Caution Failure to follow CAUTION may result in serious injury, DO NOT INSTALL COOLINKHUB or COOLPLUG property damage or in some circumstances, even IN THE FOLLOWING LOCATIONS: death. a) Where mineral oil mist or oil spray or vapor is Do not allow children to play with the CoolPlug or produced, for example, in a kitchen.
    [Show full text]
  • R&Co Risk-Based International Index – Weighting
    Rothschild & Co Risk-Based International Index Indicative Index Weight Data as of June 30, 2021 on close Constituent Exchange Country Index Weight(%) Jardine Matheson Holdings Ltd Singapore 1.46 LEG Immobilien SE Germany 0.98 Ajinomoto Co Inc Japan 0.95 SoftBank Corp Japan 0.89 Shimano Inc Japan 0.85 FUJIFILM Holdings Corp Japan 0.73 Singapore Exchange Ltd Singapore 0.72 Japan Tobacco Inc Japan 0.72 Cellnex Telecom SA Spain 0.69 Nintendo Co Ltd Japan 0.69 Carrefour SA France 0.67 Nexon Co Ltd Japan 0.66 Deutsche Wohnen SE Germany 0.65 Bank of China Ltd Hong Kong 0.64 REN - Redes Energeticas Nacion Portugal 0.63 Pan Pacific International Hold Japan 0.63 Japan Post Holdings Co Ltd Japan 0.62 Nippon Telegraph & Telephone C Japan 0.61 Roche Holding AG Switzerland 0.61 Nestle SA Switzerland 0.61 Novo Nordisk A/S Denmark 0.59 ENEOS Holdings Inc Japan 0.59 Nomura Research Institute Ltd Japan 0.59 Koninklijke Ahold Delhaize NV Netherlands 0.59 Jeronimo Martins SGPS SA Portugal 0.58 HelloFresh SE Germany 0.58 Toshiba Corp Japan 0.58 Hoya Corp Japan 0.58 Siemens Healthineers AG Germany 0.58 MS&AD Insurance Group Holdings Japan 0.57 Coloplast A/S Denmark 0.57 Kerry Group PLC Ireland 0.57 Scout24 AG Germany 0.57 SG Holdings Co Ltd Japan 0.56 Symrise AG Germany 0.56 Nitori Holdings Co Ltd Japan 0.56 Beiersdorf AG Germany 0.55 Mitsubishi Corp Japan 0.55 KDDI Corp Japan 0.55 Sysmex Corp Japan 0.55 Chr Hansen Holding A/S Denmark 0.55 Ping An Insurance Group Co of Hong Kong 0.55 Eisai Co Ltd Japan 0.54 Chocoladefabriken Lindt & Spru Switzerland 0.54 Givaudan
    [Show full text]
  • Sustainability Report 2018 Fiscal Year Ended March 31, 2018
    Sustainability Report 2018 Fiscal Year Ended March 31, 2018 The Air You Live in The Air You Live in Air is something that surrounds us 24 hours a day. In fact, our existence, as well as the Earth’s, depends on it. At Daikin, the future of the world’s air is our greatest concern. We use the knowledge, innovation and technologies, dedicated to air, cultivated over many years, to improve the quality of air we breathe and the quality of lives we live. This is our mission. CONTENTS Our Message / Contents 1 CSR and Management Strategy Daikin Business Overview 3 Message from the President 5 Daikin’s Sustainability 7 Environmental Vision 2050 9 Value Chain and Daikin’s CSR 11 CSR Action Plan 2020 13 CSR for Value Provision Environment 15 New Value Creation 17 Customer Satisfaction 19 Human Resources 21 Community Topics 23 Data 25 Honors for Daikin 28 Third-Party Verification Statement 29 About This Report 30 1 Daikin Group Sustainability Report 2018 Daikin Group Sustainability Report 2018 2 CSR and Management Strategy Daikin Business Overview Bringing the World Healthy, Comfortable Lifestyles Daikin is a global manufacturer with overseas sales accounting for more than 70% of the group total and overseas employees accounting for 80% of the group workforce. In our businesses of air conditioning and fluorochemicals, we respond to the needs that arise from the diverse cultures and values of the world’s countries and regions by providing products that make people and space healthier and more comfortable. Our Business: Providing Healthy, Comfortable
    [Show full text]
  • The Next Five Years of Changes Will Be More Intense Than the Last Five
    Symposium Monozukuri (manufacturing) for kotozukuri (value creation), Daikin Industries, and TIC in how people live their lives. but our strengths lie in mechanisms particular, must put forward what E: That’s right. It’s like, start with it’s going to do. You must clearly urban design. Then, in the end, Carving out Daikin’s Future state your raisons d’être. Now you drill down to air conditioners. sell air conditioners. But, what are A: Consider the positioning of air Minoru Etoh you really selling? What value will conditioners in relation to the Professor at the Open and with AI and IoT you offer? For instance, Silicon whole frame. Otherwise, you end Transdisciplinary Research Initiatives (OTRI), Osaka University Valley’s discipline and code of up with something like a The angle of change will rapidly get steeper and steeper. Changes in AI After working at Panasonic (formerly conduct is, “The world is made of suboptimal approach, right? Matsushita Electric Industrial), the are particularly intense. What exactly is the essence of IoT? What are the software.” They share a common E: If Daikin gets stuck on the Advanced Telecommunications Research goals of TIC? The debate heats up around Professor Etoh. awareness of viewing things from idea, “But we’re an air con Institute International (ATR), and NTT DOCOMO’s Silicon Valley Office, Etoh a software-centric perspective. manufacturer,” then the company became a Senior Vice President at NTT This means they aim to create “a won’t grow, will it? DOCOMO, in charge of NTT DOCOMO system of systems,” that is, rather T: The only thing is though, Ventures and new business.
    [Show full text]
  • DAIKIN AR11E.Indd
    Annual Report 2011 DAIKIN INDUSTRIES, LTD. Annual Report 2011 Fiscal Year Ended March 31, 2011 Environmental Management and Electric Power Conservation Needs On March 11, 2011, eastern Japan was hit by a magnitude nine earthquake that has come to be referred to as the Great East Japan Earthquake disaster. The aftermath of the disaster has led to concerns regarding electric power shortages during peak summertime demand periods, and the Japanese government has, therefore, set the target of achieving a 15% across-the-board reduction in the amount of power consumed by companies and households in the regions served by Tokyo Electric Power Company and Tohoku Electric Power Company. Companies and households in western Japan have also been requested to cooperate with electric power conservation programs. These targets for reducing total electric power consumption along with other targets, such as those for reducing peak daytime power consumption levels, have made the optimization of energy consumption a major issue within Japanese society. As a comprehensive maker of air conditioners, which account for a substantial share of electric power consumption, the Daikin Group believes that it should take responsibility for the important mission of helping Japanese society realize the requisite sharp cuts in total electric power consumption and lowering of peak power consumption levels. The Group has been proactively carrying out that mission by proposing solutions for diminishing the power consumption of commercial air-conditioning systems and by providing information that facilitates efforts to lower the power consumption of household air-conditioning systems. In various ways, the Great East Japan Earthquake disaster has had a major impact throughout the world, and it is anticipated that the trend toward increasing consciousness of the importance of energy control methods will persist.
    [Show full text]
  • Nov 30, 2011 Waseda University Ad-Sol Nissin Corp. OMRON Corporation Sumitomo Electric Industries, Ltd. Daikin Industries, Ltd D
    Nov 30, 2011 Waseda University Ad-Sol Nissin Corp. OMRON Corporation Sumitomo Electric Industries, Ltd. Daikin Industries, Ltd dSPACE Japan K.K. Toko Electric Corporation Texas Instruments Japan Limited Hosiden Corporation Waseda Institute Creates Demand Response Technology Research Program Together with Nine Companies Research Organization Created at Waseda University's Research Institute for Advanced Network Technology to Study US Demand Response System and Electric Energy Control Standards (Open ADR, SEP) The Research Institute for Advanced Network Technology (RIANT) at Waseda University has formed the Demand Response Technology Research Program, together with nine companies – Ad-Sol Nissin Corporation, Omron Corporation, Sumitomo Electric Industries, Daikin Industries, dSPACE Japan, Toko Electric, Oracle Japan, Texas Instruments Japan and Hosiden Corporation. Following large-scale electric power outages in California, the United States is taking the global lead in developing smart grid technology on a nationwide basis, including demand response component technology for a national grid, and standardizing electric energy control. The US initiative will examine such issues as controlling the balance of electric power supply and demand, making improvements to the power grid and creating new electric power-related markets. Industry, academic, and government officials in countries around the world are actively studying smart grid standardized technology in the US. It will be important in Japan to have a neutral scientific research organization that evaluates and studies technology standardization in foreign countries. Japanese companies specialize in energy equipment control technology and related peripheral devices. This expertise, in close integration with overseas smart grid standardized platforms, allows development of higher value system solutions that can be provided to global users and corporations.
    [Show full text]