Building a Bridge to the World of Electronic Commerce
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NTT Worldwide Telecommunications Corporation (NTT-WT) is a Type II carrier. It was established in July 1997, in response to revision of the NTT Law, as the NTT group's first attempt to enter the international telecommunications business. According to NTT-WT president and CEO Kiyoshi Isozaki, the company's ultimate goal is to help promote business-to-business electronic commerce in Japan as a means of enhancing global competitiveness through the NTT group's Arcstar global
network service. Kiyoshi Isozaki is a graduate of the University of Tokyo's School of Engineering. In his 30-year career with NTT and NTT Data, he has served in a variety of management positions. Prior to being appointed president and CEO of NTT-WT last year, he had served as Executive Manager of the Sales and Marketing Department of NTT. Computing Japan spoke with Isozaki about the services and goals of NTT-WT in mid-May.
interviewed by Noriko Takezaki
What range of services does NTT Worldwide
Telecommunications offer? Kiyoshi Isozaki: Our intent is to be a new type of global network integration carrier, one that provides global end-to-end service for corporate customers. Since last September, we have been providing mainly three types of services. One is our network service, which includes managed leased line, managed frame relay, and IP (Internet protocol) backbone services. Another is a network integration service for corporate VPNs (virtual private networks), constructing intranets and extranets based on Internet technologies. And the third is an integrated management service that includes one-stop maintenance and one-stop billing. NTT-WT is the world's first carrier to integrate the provisions of these three types of services.
The second of these services, network integration for corporate users, seems a great opportunity to use the business know-how and expertise that the NTT group has accumulated through its corporate user businesses. Isozaki: Yes. Rather than simply inheriting business know-how from NTT, we are striving to create borderless supply chains that will help our corporate customers in Japan promote business-to-business electronic commerce (EC). Currently, when it comes to EC, most people in Japan are thinking about doing business-to-consumer type EC, such as online shopping. However, I think that business-to-business uses, such as integrated EDI (electronic data interchange) and CALS (commerce at light speed), will have a much greater impact on Japanese society. And these will be very important in sustaining a globally competitive business environment. But conventional Japanese business processes will have to be changed in order to start viable business-to-business EC operations. In other words, total business process reengineering (BPR) is required. In this sense, our goal is to contribute to the growth of such companies by providing them with a global network platform.
Your own past experience in constructing corporate network platforms must be very useful for the current business. Isozaki: Exactly. My business background is pretty much related to the data communications business. Both in NTT headquarters and at NTT Data, I was involved in the construction of several corporate data networks, including online banking systems, the Patent Agency's electronic application system, a medical information network, and the CAPTAIN videotext system. Based on such experience, I am keenly aware that a network must be designed not only with an eye to reducing costs and increasing transaction speed, but also to deepen its integrity for comprehensive network operation.
How do you view the current status of EDI among Japanese companies? Isozaki: In most implementations of EDI here in Japan, each of the processes, such as order entry, inventory control, and logistics, is done independently, with little or no correlation among the individual processes. In the developing borderless business environment, however, where there is fierce competition among competitors from around the world, it will be necessary for companies to increase the integrity of their networks and to construct a global-scale supply chain in which real-time information is reflected in process management and decision-making. In the next phase, therefore, a global-scale network with sophisticated functions and advanced security features must emerge.
What can NTT-WT offer in this regard? Isozaki: Through our Arcstar IP-VPN service, we offer network integration services that encompass encryption, authentication, conversion of transaction protocols/formats, and bandwidth, as well as system integration services at each of our corporate customer sites. In addition, because we view business alliances with other companies as being very important, we would like to create an open alliance that involves not only Japanese computer vendors but also foreign vendors, consults, and software developers.
It seems that you are in the very core of the Japan's EC infrastructure. Do you think electronic commerce can be successfully promoted in Japan? Isozaki: One thing I would like to caution is that Japan shouldn't be "a boiled frog."
"A boiled frog?"
Isozaki: For promotion of EC, particularly business-to-business EC, Japanese corporate executives must recognize the necessity of quickly increasing their global competitiveness. Otherwise, Japan may not be able to survive in today's fierce global competition. The more I study the situation in the US, particularly the activities of multinational companies, the more concerned I become about the current situation in Japan. Therefore, step-by-step, I would like to contribute to promoting business-to-business EC among Japanese companies.
Is the delay in adopting business-to-business EC in Japan related to the fact that many Japanese companies have already created their own closed, independent networks? Isozaki: Even in creating closed networks, Japan lags behind much of the rest of the world. In addition, even when some form of industry EDI network has been made in some companies, it is based on dedicated hardware terminals and proprietary software. This causes an increase in the price of EDI hardware and software, and it has hindered the growth of EDI among companies in Japan. But now, thanks to innovative Internet technologies and the widespread dissemination of user-friendly PCs and browser software, the environment is ready for promoting global-scale EDI and business-to-business EC.
How do you intend to expand your business to overseas? Isozaki: Since we are a latecomer in the international communications field, we believe that we must take a different approach than the foreign carriers. Therefore, we plan to first establish a firm foothold in Asia, and then expand our business to other countries through our connections with NTT's subsidiaries abroad, including in the US and Europe. By the end of this fiscal year, we expect to offer our services to 20 or more locations around the world.
As part of the Arcstar IP-VPN service, your company started an Internet fax service in May. Why did you decide to go with this first rather than an Internet phone service? Isozaki: We decided to launch an Internet fax service first mainly because of consideration of some people's concern about the quality of the Internet phone service, such as the question of delay. It may be negligible, but as a corporation we decided to consider such public concerns. Also, in order to make the connection between Internet phones and PBXs (private branch exchanges) in other countries, it is necessary to confirm the proper interconnection. Since there are many types of PBXs used throughout the world, this will require some time.
In closing, can you summarize your corporate policy? Isozaki: Our goal is to provide consultant-like functions to corporate customers in order to create global network integration suitable for the businesses of each customer. In this sense, I often tell our people they must have a "creative challenge" spirit. This is quite a new field, with no textbook is available to follow, so we have to be an advance guard point or, to exaggerate, a nuclear missile warhead, for constructing a global information distribution platform. To do so, I think we must go beyond the conventional NTT culture.
Is this corporate philosophy reflected in your hiring policy? Isozaki: Yes, very much so. We welcome experienced, professional people regardless of their nationality. We expect that salespeople, for example, should be able to make system construction proposals to corporate customers, covering everything from system design to system planning and consulting when necessary. Our systems engineers must have not only a knowledge of telecommunications circuits but also of computer networks, since what we offer are integrated solutions that include system integration and network integration. And we welcome non-Japanese, since our target customers are not only Japanese companies but also foreign, multinational companies.
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