Your business ideas change depending on how you view the world. To create new business models, you have to nurture a broad, realistic worldview.

81 The essence of e-commerce is communication

The internet is a tool that connects people. No matter how far technology advances, the essential qualities of people don't change. Human beings are living creatures who want to connect with others of their kind. The internet may have made countless things possible, but what hasn't changed is that fundamentally, it's a tool to connect people.

The Rakuten Ichiba shopping mall concept was born because we focused on this function: communication. People often stress the convenience and ease of purchasing things online, but these aren't the essential selling points. Rakuten Ichiba's defining feature is that it uses the internet to make a personal connection between shoppers and merchants: Its greatest strength is that it enables direct interaction with people all over Japan regardless of the location of physical stores.

There were already a few other internet shopping malls when I started Rakuten Ichiba. However, all of them basically employed a consignment sales model. The shopping mall handled everything from creating product catalogs and shipping products to dealing with customers.

I thought there was no way to succeed using this kind of system. Merchants know their products, better than anyone, and want to sell them more than anyone. Merchants ought to be far more passionate about creating catalogs and dealing with customers than any mall. For customers as well, dealing directly with the person responsible for a product is far more convenient. And above all, this arrangement helps foster communication between merchants and customers. Online shopping isn't just convenient, it's also fun. In fact, I'd go so far as to say it's more enjoyable than it is convenient. Online shopping is a form of entertainment.

That's why at Rakuten Ichiba, we had merchants create their own websites, ship their own products, and deal with their own customers. It's true that in the beginning, when many people knew nothing about the internet and had never touched a computer, many thought this would be impossible. Most believed creating websites and responding to customers' emails would be too difficult for people who weren't PC specialists.

However, if we'd done these things for merchants, we wouldn't have been able to leverage the fundamental merits of the internet. That's why we developed a system to enable even people who'd never touched a computer to create a simple website. Some may have struggled using the internet to interact with customers at first. But I believed communication with customers would go smoothly once sellers became more skilled PC users and that this would help them grow.

As a result, there are currently more than 44,000 sellers on Rakuten Ichiba. The secret to Rakuten's success is our sellers' highly attentive customer service. I would estimate there are at least 100,000 customer service specialists on the site. They support communication between stores and millions of customers every day. There are no shopping malls like this anywhere else in the world. Internet shops are not vending machines; the essence of e‐commerce is communication.

82 Seek information beyond your borders

I don't mean to put down the Japanese media, but if you compare Japanese newspapers and magazines with European and US media you can't but help notice some fundamental differences.

For example, Japanese newspapers place a heavy emphasis on breaking news. It's critical for them to publish news stories ahead of rivals. It depends on the nature of the scoop, but I've hardly ever felt the value in doing this. My apologies to reporters who work hard to publish these scoops, but I wonder what's so great about reporting something half a day or a day earlier than the rest of the media. It has led to Japanese newspapers merely reporting bare facts, with very little room for editorial analysis.

Top European and US media are more focused on editorial analysis. Articles commonly include reporters' opinions and carry bylines. Media outlet rankings are determined by the quality of these opinions. Thus, quality media always carry outstanding editorials.

I always read the Financial Times. The opinions in its pages are in line with my thinking and are very useful when I'm mulling over different business directions. Of course, I also read Japan's leading business newspaper, the Nikkei, now the owner of the Financial Times. In fact, I don't feel quite right if I don't read it every morning. But I think in terms of the editorial content, it offers a different kind of reference point.

Of course, you should always closely follow local media, but I think everyone should also set time aside to read quality media sources from abroad. I recommend this to readers also as a way of boosting your capacity for logical thinking.

For Japanese people, being aware of world news can also be a kind of thought experiment. Things that happen elsewhere in the world won't necessarily happen in Japan. But thinking about what would happen in Japan if they did is a good way of practicing reading the future.

Despite globalization, there's still a time lag between when things happen elsewhere in the world and in Japan, and this will likely continue for a while. Aviation destroyed the barrier that was the Pacific Ocean, but the Japanese language barrier remains. Even the internet can't yet completely break down this barrier.

The global population is roughly 50 times the size of Japan's. By that rough calculation, 50 times as many things are happening outside Japan compared to inside it. Of course, news from around the world does make its way into Japan, but only a fraction.

When you start reading quality media sources from abroad, you might realize how unreliable your local media can be for knowing what's going on in the world.

When you open your eyes to the rest of the world, you realize how blinkered your view has been.

83 Your network is your best news source; media come second

In the previous section on global sources of information I recommended reading European and US newspapers. That said, always bear in mind that information that you acquire from newspapers, websites, television, or other forms of communication is already from a secondary source. This information can be accessed by anyone, and there's always a time lag between events and when you learn about them.

Strive to widen your sources of fresh, first‐hand information.

If you're in the food industry, people working in agriculture, with livestock, or in fisheries can all be good sources of first‐hand information. For those in web‐based businesses, customers and end users are, of course, a good resource, as are university researchers and people in other retail businesses.

It's important to remember that information not directly relevant to your own business can also be valuable: Your view on the world will narrow considerably if you are constantly focused on your own work, and that alone.

While you can compensate for a narrow perspective with secondary sources such as various media outlets, that's simply not enough. To obtain fresh news, I recommend that you finish your work in good time every day and get out into the world. You can talk to your co‐workers at work—so work on expanding your opportunities to hear the perspectives of people working in other industries.

In order to see modern civilization with their own eyes, the great figures of Japan's nineteenth century Meiji Restoration era undertook long and perilous journeys by sea to Europe and the United States, as this was their only choice for international travel at the time. The experiences they had and the emotions they felt drove Japan's modernization. As there were already many books and people from Europe and the United States in Japan at the time, it would have been possible to understand European and US culture through secondary sources like these. But of course, that wasn't enough.

Even when you have all the right information at your fingertips, there are simply many things that, when experienced directly, create a completely different impression. Information from a secondary source has already passed through someone else's brain and, in the process, their subjective choices and viewpoints have entered the equation.

You can't accurately understand current trends through secondary sources alone.

Of course, you can't directly confirm with your own eyes and ears all of the huge number of sources of information in today's world. Realistically, no matter how often you go out into the world, you'll still be forced to rely mostly on secondary sources for your information. However, whether or not you make an effort to obtain first‐hand information will also make a big difference to how effectively you use that second‐hand information as well. For example, when you hear news about New York, the depth of your understanding will be different depending on whether you've actually walked its streets and breathed its air—be it only once. If you make friends with someone you can trust in New York, you'll be able to analyze the news from yet another angle.

The further the Internet Age progresses, the more valuable information that is experienced directly is likely to become. To grasp trends ahead of anyone else, strive to increase the amount of first‐hand information you receive via your personal and professional network.

Create your own independent information network to stay abreast of the trends of the day.

84 The internet will eliminate national borders. Think global

I've already written about my belief that the internet will bring about a kind of worldwide revolution, transforming the way we think about nations and borders. To prepare for this, you must first eliminate the borders within your own mind.

For a long time, Japan had two barriers, namely its language and the ocean, isolating it from the rest of the world. You might say Japan was protected from the waves of turmoil arising overseas. That Japan developed a unique culture and civilization in this sheltered world is something to be proud of.

However, Japan failed to develop mature skills for interacting with the rest of the world in this period and still seems to be feeling the aftereffects of this, even in the twenty‐first century.

For many Japanese people, “the world” is still a different planet you visit for a time and then return from. It's as if Japan is different, and not really part of the world. Thus, no matter where we go, many Japanese people always feel like “guests” in someone else's world. We find it difficult to really feel that Japan is a part of the world, fully connected to it—even though we understand the concept. That's why news from abroad can feel like news about someone else's world that is not particularly relevant. If a problem arises in the Middle East, even one with a clear and direct impact on Japan, most people will think it doesn't concern them.

In contrast, and this is just my subjective view, it seems to me that the attention Westerners pay to news from overseas is about the same that Japanese people give to news from other regions of Japan.

In business, Europeans and Americans target foreign markets as a matter of course, while Japanese businesspeople, in spite of the interconnectedness between the Japanese and world economies, still talk about “advancing into the world” as though it is something unusual or special.

We should consciously strive to change this way of thinking.

It's easy to say that we're all part of the same world. But for the average Japanese person on the street, it's difficult to really feel that in their heart. If we don't change this attitude, we won't be able to adapt when the internet really does do away with the concept of national borders. We'll be at the mercy of waves of people, capital, and information flowing into Japan, and we'll lose sight of the path our nation should follow.

85 Learn from the world's best practices

Just as people don't often notice examples of success that are close to home, they also have a blind spot for another kind of success—that of the very best in the world. Think about them: Why are they so successful? Can you put the reason into words? People tend not to think too deeply about what seems obvious. It's a flaw of the human psyche.

Einstein reportedly once remarked how strange he found it that clouds float in the sky. He noted most adults didn't think it was odd, but that he still did even as an adult because he was a late bloomer. He said it was the reason he became a scientist.

The same is true of business.

Just as there's a reason why clouds float in the sky, there's also a reason why the world's “best” have achieved that position. So you should analyze those reasons and apply what you learn to your own business.

You'll immediately understand this if you spend some time looking into it, but the companies that become the best in the world all have something unique. Industry leaders differ substantially from typical companies in their sectors. A normal company will never constitute a standout example of success.

This might surprise you at first, but give it some thought and you'll realize it's obvious: You can't reach the top using established methods. It's when you succeed at something no one else has ever thought of that you can escape from being average. Thus, the world's top companies are all unique. However, for some reason, their true uniqueness often goes unnoticed. It seems people become so dazzled by their business performance that they mistake uniqueness for “special circumstances” as the reason behind that success. Actually, those “special circumstances” are what's masking the reason for that company's success. Of course, it won't be easy to apply those secrets directly to your own business. If it were easy, other companies would already be doing it.

However, when you get past those special circumstances and find the fundamental reasons why leading companies do so well, you can leverage them in your own business.

Extract the essence of the uniqueness of the world's top companies and distill it to universal principles that can be applied in other fields. Think like Einstein—study the world's best practices and master the fundamental principles of success.

And never forget how strange it is that clouds float in the sky.

86 Thinking globally will make you stronger locally

If you only ever look at your own country, you will lose the ability to clearly see what's in front of you. It's only when you go abroad that you see your country's true face for the first time. Through comparison with something else, you are able to see more clearly your own characteristics and unique points.

In this context, thinking globally also means looking in from the outside. In short, thinking globally will help make your own country even better. I really felt this strongly when Japan's economic bubble burst at the beginning of the 1990s. I realized why Japan's financial institutions were at a disadvantage. For people in Japan, the bursting of the economic bubble was unprecedented. Land and share prices plummeted, and there were fears the economy might fall into an abyss. These fears led to assets being sold at rock‐bottom prices. Overseas financial institutions jumped in and bought up the property at rock‐bottom prices. Buying in at the bottom of the market is a strength of global financial institutions because they operate with a global perspective.

However, if you understood the global context, you could see that the bubble was clearly just a phase. Even land prices are cyclical. Prices are always low at some point, and if you buy at these times you'll be sure to make a profit. Investors judged the situation based on their experiences around the world and reaped huge profits. This global mindset transformed the bursting of Japan's economic bubble into a business opportunity.

The strength of global companies is their ability to identify successful models in markets around the world and apply them in other markets.

Japan is currently struggling with various domestic issues that could probably be addressed with solutions from new perspectives if we could just stop focusing only on Japan and look at things from a global viewpoint. I'm not suggesting that we examine examples from abroad and draw up a bunch of empty theories. It's not about glancing next door, seeing how they do something and thinking you might try it yourself. What I'm talking about is engaging fully with the world and planting firm roots in it. When I approached this issue, I realized that in order to understand and learn from the innovation culture of Silicon Valley, I would need roots there. Not just a trip or a research project, but time on the ground. It's a core reason I founded Crimson House West, our San Mateo headquarters for the Americas. Some months, I spend as much as half my time in that office.

You mustn't view what happens abroad as something that doesn't concern you. As someone living in the same world, make it your business to understand what other countries are really like, then look again at Japan from a new perspective. That is what it takes to think globally.

87 Thoroughly and humbly analyze past successes

Human beings like to show off. Although there are many reasons we want to succeed, attention‐seeking is one that must not be overlooked. I think this desire might not be limited to humans. Even cats like to show off the animals they catch to their owners. We all want to be recognized for how special we are: It's a deeply rooted desire in us all.

We often try and do things our own way because we want to show off, we want to prove that our way is the right way. And we usually fail.

Modern humans are conceited in another way, too: We think we're living in the most advanced civilization ever. We think we're marching toward the future and that stale history books have nothing to teach us. But I believe we should put more thought into it than this.

True, a hundred years ago there were no computers. But does that make modern people who use computers great? How many people know what's inside their PC? Never mind PCs—if you asked people to make a mobile phone, a TV, or even a match, how many could do it?

The advanced civilization we enjoy just happens to be part of the world we were born into. We take advantage of it, with no real understanding of its frameworks or structures. Moreover, the things we do with it are just a virtual repeat of the things people did long ago.

For example, Edo (as Tokyo was once called), with a population of around one million, had virtually all the amenities of similar size towns today. If you look it up, you might be surprised. Edo had a media industry, a recycling industry, restaurants, of course, and even temp agencies.

Organizations go through the same development processes in every age, and the reasons organizations succeed or fail are also broadly similar. There are many commonalities to be found among the problems and pitfalls they face on the way up, and the reasons why they decline.

Civilizations change, but perhaps human beings don't.

Just by looking at recent history (you don't have to go as far back as the Edo Period), you'll find plenty of hints as to how to overcome the barriers you face today. Viewed this way, human history is like a valuable collection of the results of countless trial‐and‐error experiments. We must put this to good use.

Throw away your conceit and your meaningless need for attention. In the end, those who ultimately succeed are those who study with humility. This is another thing that history has taught me.

88 It's never too late

There's a term called first‐mover advantage. The first person to take action has a natural advantage.

And it's certainly true. Being the first to act is a great advantage, especially out on the business frontier of the internet. When you go into uncharted territory, where no competitor precedes you, you're free to take up as much land as you like.

Those who come later are robbed of this advantage. Because competition is fierce, they have to work hard to survive. They can't capture as much of the territory as those who came first. So first‐mover advantage is about the importance of being the first person to go into frontier territory.

That said, it's also never too late to start something. If you start now, you can do anything. I truly believe this.

True, coming late to the game puts you at a disadvantage, and winning won't be easy—as anyone will tell you. Don't expect an easy win. But if you plot out your grand strategy and are prepared to invest the time, you can turn just about any situation around.

This is where sports differ from business. In soccer, you must win within 90 minutes. In business, you decide your own time limits. If winning in 90 minutes is impossible, you can do it in 10 years.

Rakuten Ichiba was not the first mover. We came into the market when everyone thought the internet shopping mall model was a thing of the past. But despite that, we have come a long way. I learned that just because someone else has moved first, it does not mean all the moves have been made. There may still be moves yet untried—moves the first player failed to consider.

Even now, as we begin to expand abroad, we face a situation in which many countries already have services similar to our own. Many say we won't succeed, but I completely disagree.

Just as there's the phrase first‐mover advantage, we could also talk about a best‐mover advantage. It means those who act in the best way have an advantage. Just because others acted first, that doesn't mean they acted best. And even if their ways were best initially, it doesn't mean that there aren't better ways to do things now.

If you're not the first mover, be the best mover.

In life, it's never too late.