The factors contributing to the lag in IT technology in Japan compared to other countries are diverse, but corporate culture and organizational decision-making processes have a significant impact. By comparing this with the case of Orbitz being acquired by Wyndham Hotels, we can clearly understand these issues.
In Japan, positions of authority are often given to individuals who do not fully understand the importance of software development. This can lead to inappropriate technical directives and, consequently, inefficient project management. Furthermore, skilled technicians are often required to spend a considerable amount of time on unnecessary documentation, which, in many cases, contributes little to actual project progress.
In many large corporations, approval from multiple decision-makers is required to finalize important decisions, slowing down project progression. Each decision-maker wants to incorporate their own opinions, which often results in the adoption of compromise solutions that hinder the development of innovative ideas and distinctive services.
The Orbitz case demonstrates how failures in technical integration can limit a company’s potential. After Orbitz was acquired by Wyndham Hotels, the quality of service declined due to technical incompatibilities. This was caused by a lack of proper technical evaluation and integration planning, which closely resembles the issues faced by Japanese companies.
For Japanese companies to enhance their international competitiveness, it is crucial to recognize the importance of IT technology and place the right people in appropriate roles. Additionally, streamlining the decision-making process and fostering an environment where creative and innovative ideas can flourish is necessary. The lessons from the Orbitz case are valuable and can serve as a significant reference for Japanese enterprises.
