Breaking New Ground

Top companies leading the era, such as Google and Tesla Motors in Silicon Valley, are all focusing on renewable energy. They are actively investing in the installation of power generation facilities and the development of batteries for renewable energy. Japan needs to thoroughly study and understand these global trends. Denmark, with a population of about 5.7 million, has produced DONG Energy, the world’s largest offshore wind power company. Japan, with a population of approximately 120 million, is finally starting to establish its market and is trying to catch up with the US and Europe, albeit belatedly. However, compared to India and China, Japan still lags behind.

The reason Japan is behind in this field is due to the lack of regulatory policies and the strong influence of existing power companies. The telecommunications sector was liberalized, leading to the creation of DDI (now KDDI), but power companies are more conservative than NTT. Currently, many of the companies engaged in large-scale renewable energy projects in Japan are trading and financial companies, rather than the business enterprises that should be involved. Renova, Inc. is breaking new ground in this area. It is an entirely independent company, not under the umbrella of major financial or power companies, established by extremely talented former McKinsey employees, and it maintains a leading position in this field.

Vision for the Times

Elites often see too much of everything. Beyond being smart, one needs a certain kind of audacity, or they risk remaining a small group forever. Renova drastically changed within a year after I instilled a sense of passionate audacity. My former secretary, who was with the president, remarked, “Mr. Senmoto, it’s amazing to see a company change this much!” I infused my philosophy into every aspect, turning Renova into a passionate corporate group. While I speak of audacity, it must be balanced with seriousness. Diligently preparing three times more than others is essential, and at some point, one must take a leap. This leap can significantly alter one’s life. Had I stayed with NTT, I would be living a pensioner’s life with nothing to do but fishing.

When I left NTT in 1983, before its privatization, it was like setting off in a small boat amidst a dark, stormy gale. Defying a giant monopoly with 330,000 employees to start a telecommunications company faced tremendous opposition. I even feared for my life, avoiding walking near the edge of train platforms. Today, calls via LINE are free, but back then, a three-minute call between Tokyo and Osaka cost 400 yen, and a 30-minute call cost 4,000 yen. I wanted to create DDI to revolutionize the telephone business and break new ground. After the telephone revolution, I foresaw the internet becoming the major storm of the 21st century, leading me to found eAccess. Revolutionizing telephony, then the internet, and now energy. Those who cannot see the world’s major trends can only create small ventures, not large ones. Thus, it is crucial to have the vision to see the significant trends of each era.

First-Class Management Team

In any organization, the key is how to build a top-notch management team. There is only so much a CEO can accomplish alone. When I founded DDI, I had Kazuo Inamori by my side. During the establishment of eAccess, I had Eric Gan. Eric was an outstanding CFO who could interpret everything from financial statements and possessed many qualities that I did not. Genius venture entrepreneurs often believe they are omnipotent and can do everything by themselves. However, just like the management team that perfectly combined my business vision and ability to read the times with other essential qualities, a first-class team is necessary for successful management.

In recent years, I feel Japan has been changing. For instance, interesting ventures such as FinTech companies and Money Forward have emerged, and they are very solidly founded. Fintech is likely to trigger a financial revolution. Moreover, there is a company called WealthNavi, established by an elite who left the Ministry of Finance. In the past, it was common for individuals to spend their entire careers at the Ministry of Finance and then retire to some position in a small or medium-sized enterprise. However, I find it encouraging that there are now young people in their 30s who leave the ministry and take the bold step of charting their own path,demonstrating remarkable preparation.

Sharing Experience and Intelligence with Young Entrepreneurs

Having experienced being a founder and CEO, and now at 70 years old serving as Chairman of the Board, the view from this position is entirely different. I am constantly thinking about how to support young entrepreneurs so they can perform at 120% of their capabilities. In the past, I used to get angry frequently, but now I almost never do. My perspective has shifted to focus on how to motivate and elevate everyone.

Starting from scratch, I have always navigated small boats through storms, turning them into large ships. I have faced various disasters and endured many hardships. Because of this journey, I am able to provide advice that is rooted in experience, and I can see where Renova is currently positioned on the map. Young entrepreneurs are running with all their might, often only able to see what’s directly in front of them. They lack the experience and intelligence that I have accumulated. My role is to fill in those gaps, elevate their level, and enhance their capabilities.

August 2016 at Renova, Inc.Translated by ILI Inc.