The Eternal Venture Spirit: An Executive's Practical Philosophy

It is difficult to encapsulate in a single phrase the entire range of Omron's business. To say it is an electronic and electrical device maker or a producer of advanced information systems falls short of clearly expressing what Omron does. In much the same way, it is not easy to describe the Founder of Omron, Dr. Kazuma Tateisi, in just a few words. He was essentially a technology-oriented corporate executive who sought out new challenges and business opportunities. But this alone is not enough to describe a man whose life was so intricately involved in so many different areas. Dr. Tateisi was also an astute business man, a social commentator and a connoisseur of the fine arts to name just a few of the talents and pursuits he carried with him throughout his life. It was his personal commitment to serve society that always inspired Dr. Tateisi to move forward. As a result, he produced innovations unthought of by others and developed completely innovative management techniques. And he had a knack for coming up with new management terminology. His venture spirit propelled him into many untapped areas. And he took what he learned from these experiences and incorporated that knowledge into his business to stimulate corporate growth. Dr. Tateisi was a man dedicated to making new, even unimaginable ideas a reality.

Born in Kumamoto City (western Japan) on September 20, 1900, Dr. Kazuma Tateisi was the first born son of Kumanosuke and Ei Tateisi. The Tateisi family made and sold traditional sake cups, which were frequently bought as mementos for soldiers based in Kumamoto. Kazuma led a charmed life until his first year at elementary school when on March 26, 1908, his father passed away. Without the father, the family business started to quickly decline. To make a living, Kazuma's mother opened a boarding house and immersed herself in work. The young Kazuma helped her by delivering newspapers to supplement the family income. His grandmother, who raised the children while her daughter-in-law was busy at work, was to have a great deal of influence over the man he was to become. She instilled in him a sense of responsibility and discipline, and taught him the value of loyalty and independence. Kazuma, however, was also a naughty and mischievous boy who enjoyed having fun. In looking back at his childhood, Dr. Tateisi once said "I loved playing, having a good time and making new friends, which helped me to overcome some difficult times. And while I wasn't always well-behaved, I think my experiences as a child helped me develop strong social skills and a great sense of imagination and creativity." In April of 1913, he entered Kumamoto Junior High School, where he devoted himself to study and playing baseball. In his fourth year, Kazuma decided to try for the prestigious Naval Academy in Kumamoto, which would lessen the financial burden for his family. Though Kazuma failed to meet the physical requirements set by the Academy, he did pass the exam with an outstanding score. This success left him confident that if he set his mind to something, anything is possible. Omron's corporate culture is formed around the philosophy of "Nothing ventured, nothing gained." In commenting on this corporate outlook, Dr. Tateisi relayed his thoughts on the matter. "One cannot expect to achieve anything if one risks nothing. Should you fail, look for other ways to achieve your goals. By taking a positive approach to solving problems, you will find the answers you need to succeed."

Instead of pursuing a military career, Kazuma decided to continue his studies and entered the newly established Electrical Engineering Department of Kumamoto Technical College (presently the Engineering Department of Kumamoto University) in 1918. With no senior students at the school to set an example, Kazuma was left to his own devices. This was an eye-opening experience for Kazuma and infused in him a new sense of self-reliance and independence. As many academic texts at that time were not available in Japanese, Kazuma was required to read and understand both English and German. And this significantly improved his language skills. Also from the many friends he made during his freshman year, Kazuma grew to realize the importance of being a team player. Later when Dr. Tateisi started his own business, it was this group of friends that were to provide the support network he needed. Throughout his life, Dr. Tateisi valued the process of deliberate thinking in conjunction with a unique and creative approach. "The mind is like iron," he was often heard saying, "if it's not put to use, it will rust." From early childhood right through to the age of 90, Dr. Tateisi's life was synonymous with study and challenge. Though an academic, Dr. Tateisi found the diversity of life fascinating and had a wide range of interests that included everything from art, literature and music to medical theories and sports.

After graduating from technical college in 1921, Kazuma took a position as an electrical engineer for the Hyogo Prefectural Government. Then in October of the following year, he acquired a job with Inoue Electric Manufacturing Co. For this company, he worked on the production of an induction type protective relay based on an American prototype. The knowledge and specialized skills he acquired through this project was to later form the basis upon which he founded Omron Tateisi Electronics Co. (presently Omron Corporation).

The 1929 New York Stock Market Crash precipitated a worldwide recession that hit Japan the following year. It was at this time, in response to a conflict of opinion with senior employees, that Kazuma voluntarily submitted his resignation. Armed with his own invention -- a trouser press -- Kazuma decided to go it alone and start up a commercial venture. For the production and sales of the press, Kazuma set up a factory named Saikosha in Kyoto. Kazuma put all his effort into promoting sales, and cycled to potential customers not only in Kyoto but also as far away as Osaka. In addition to the trouser press, he developed a knife-grinder that he sold at Toji Temple stalls. The difficulties he endured in trying to promote his products gave Kazuma the practical experience he needed to conduct business. He learned that securing channels; developing markets; effectively advertising and demonstrating products; as well as doing business founded on well-established transaction terms and conditions are all essential to getting your product sold.

While his business was making little money, Kazuma's faith and interest in the electrical field did not waver. One day in 1932, Kazuma met an old friend, whose words gave Kazuma an idea for his next invention -- a timer for X-ray machines. This timer combined an induction type relay, similar to the one he had worked on at the Inoue Electric Manufacturing Co., with an oil circuit breaker. After acquiring a contract with a leading X-ray machine maker in Japan for the OEM supply of his timers, Kazuma relocated his factory to Higashi-Noda, Osaka. In this new location, he began operations under the name Tateisi Electric Manufacturing Co. Always looking to the future, Kazuma placed a full-page ad in the trade magazine, OHM, in 1935. At the time many considered this type of publicity unusual yet innovative. As orders for relays increased, the

Higashi-Noda factory proved too small to handle production requirements. So in 1936, Kazuma constructed a new factory in Nozato, and expanded operations to Tokyo the following year.

In 1941, the Aeronautics Research Institute of Tokyo University requested Tateisi Electric to work on the domestic production of the micro-switch (precision switch), a device introduced through American journals. After struggling with unknown materials such as beryllium-copper used for the movable spring, Tateisi Electric's engineers finally succeeded in producing the first micro-switch in Japan. Kazuma was often heard prodding his engineers along with the words, "If at first you don't succeed, try, try again. This is how we learn, and how we will improve." Though technologically advanced, this development did not produce a flourishing business due to the outbreak of World War II. Nevertheless, it was this commitment to research that would later result in the company becoming a pioneer in automation control technology. As Japan was faring badly in the war, Kazuma was forced to relocate his factory to an old film studio in Kyoto. After the war, this studio became the main factory for Tateisi Electric, and it was here the company introduced an adjustable heating device with its own stand, a hair iron for women, a desk-top electric lighter using micro-switches and many other unique products. In January of 1950 to symbolize a new start, Kazuma resumed full-scale operations at the newly named company -- Omron Tateisi Electronics. Kazuma firmly believed that manufacturing and technological advancement were key to rebuilding a post-war Japan. And he was convinced that know-how in these areas would lead the nation and in turn his company down the road to economic growth. It was on this presumption that Omron poured its energy into expanding sales channels for various newly developed products such as the micro-switch relay, thermal switch and pressure switch.

Then in 1952, several pivotal events were to heavily influence the future direction of Omron. One involved an automation technology speech delivered by Dr. Yoichi Ueno, a pioneer in productivity improvement studies. He remarked that any future product must be developed and designed with automation in mind. Dr. Ueno's ideas concerning this subject left a strong impression on Kazuma. Around the same time, Kazuma was also introduced to the cybernetics theory through his meeting with Dr. Katsuzo Nishi, the founder and advocator of the Nishi healing method. Eager to seek new markets and discover new societal needs, the precepts of automation and cybernetics intrigued Kazuma as ways to tap into the possibilities of the future. In September of 1953, he made his first visit to the United States as part of a tour to study small and mid-size US electronic firms. Here he was able to see firsthand American automation technology. During the tour, Kazuma realized that Christianity and a pioneering spirit were the backbone of American enterprises. From his travels in the States, Kazuma knew that it was only a matter of time before the automation age emerged in Japan as well. On returning home, he immediately began to study ways to improve Japanese industry and poured his energy into radically transforming his company in preparation of this upcoming era. This transformation involved reviewing and upgrading the entire company's organization covering everything from technological development and administration to production and marketing. Kazuma believed that once a fully-fledged corporate infrastructure was established, the company would grow on its own. To this end, he defined seven essential requirements that corporate management must meet. They were 1) Demonstrate a clear-cut management philosophy; 2) Follow instinct; 3) Draft effective measures and goals so as to promote corporate growth while encouraging personnel to take action based on their own decisions; 4) Create a motivational workplace for employees; 5) Build a system to encourage the participation of all employees; 6) Quickly assess and address societal needs; and 7) Consistently work on developing innovative technologies. Over the years that Kazuma managed the company, these seven points were to remain at the forefront of his mind and any action he took reflected these precepts.

Exactly as Kazuma anticipated, a new wave of automation surged in the industrial world of Japan. In response to this trend, Omron Tateisi Electronics developed a steady stream of new and innovative products including various micro-switches, relays, timers and electromagnetic switches. By doing so, the company was consistently expanding into new markets. During Omron's development, a complete transformation in its production system was essential. A shift from conventional mass production to small-lot production that could handle various product types was imperative to better meet market requirements. Here too, Kazuma instilled his ingenuity into management practices. In 1955, Omron Tateisi Electronics launched the Producer System. In developing this system, Kazuma had in mind one entity that controlled the financing and coordination of all activities in connection with the production of devices -- much like a movie producer oversees the production of a film. This involved establishing independent subsidiaries where profits depended upon their management efficiency and the type of devices being produced. Basically each subsidiary operated independently, and was responsible for controlling its own finances and activities. This new management system drew a great deal of interest not just within the industry but also from the mass media, and had Kazuma busy giving speeches all over Japan. One of the key goals of the system involved training young and talented employees and promoting them to leadership positions. As it steered the company toward developing strong human resources through the decentralization and transfer of authority to capable personnel, this system provided a solid base with which to expand operations. When Professor Peter F. Drucker, a well-known authority in business management, came to Japan for the first time in 1959, he was extremely impressed with the Producer System. He rated the system highly, and his interest in it inspired a lifelong friendship with Kazuma Tateisi. As many people at that time were fleeing the small towns of Japan in search of jobs in the cities, Kazuma wanted to redress this situation. To do so, he set about creating employment opportunities in rural areas. What he used was a modified and updated version of the

existing Producer System. Launched in 1964, the Neo-Producer System decentralized production operations and transferred them to rural areas. Investment of local capital was encouraged with the aim to give profits back to the local communities. As this system is advantageous to both society and the company, the Neo-Producer System embodies Kazuma's awareness of the company's responsibility to serve the communities in which it operates.

One evening in 1957, while listening to a transistor radio, Kazuma's thoughts drifted to a cyclotron vacuum tube that had previously been employed for the development of power cable protectors. This led him to think that a high-performance switch that could last through 100 million life cycles might be possible if contacts could be disposed of. At Omron's 25th anniversary ceremony, he challenged his entire team of engineers to develop a non-contact (solid-state) switch within the next five years. Seven young and talented researchers, or "The Seven Samurai" as they came to be known among staff, took on this challenge and devoted themselves to the project day and night. This was a completely new area of research as transistors were only used for radios or wireless systems, not for switching operations in automated control devices. Even so, development proved more difficult than they imagined. The use of a germanium transistor created problems in the switch's characteristics in that they varied greatly according to changes in ambient temperatures. To make things even more difficult, technical literature concerning transistor applications was generally not available in Japan at that time. Through trial and error, however, the Seven Samurai succeeded, and Omron went on to pioneer automatic control systems that adopted transistor logic circuitry. A researcher involved with this project looked back on this episode and said "I know that from today's perspective, the idea of using a transistor for industrial applications seems completely pointless. And in hindsight, from a purely practical point-of-view, it was. At that

time, however, the entire company took President Tateisi's 7 : 3 precepts (If there is a 70% chance of success, go ahead and try, but be sure to take contingency measures for the 30% chance of failure) to heart. Moreover, we knew that the President valued a challenge-oriented attitude in his research and production staff. You would frequently hear him say 'That sounds interesting, try it' whenever someone brought up a new idea. In my day, Omron was truly a workplace filled with optimism and a venture spirit."

While running a company is an exhausting job, Kazuma was intent on living a full life that included things other than work. He particularly enjoyed participating in projects organized by the Kyoto Keizai-Doyukai (Kyoto Association of Corporate Executives), and activities with friends that included among other things an art club that gathered every Sunday. Like his father, a skilled and gifted potter, Kazuma was a talented artist who loved to paint. Not limited to just art, Kazuma's wide range of interests also included reciting 'noh' ballads, singing 'kouta' and 'kiyomoto' (traditional Japanese songs), and writing 'haiku' and 'tanka' verse. Calligraphy, Japanese tea ceremony, the theater and music were just a few of the other fields that captured his interest.

During the later part of the 1950s, the Japanese economy enjoyed rapid growth. With Omron's corporate foundation cemented, President Kazuma Tateisi, who started as an engineer, believed that Omron must strengthen its R&D system in order to more accurately accommodate steadily growing market demands. After spending considerable time coming up with a detailed plan and preparing funds, Kazuma finally made a decision to build Omron's Central R&D Laboratory. Established in October of 1960, this research facility was constructed in Nagaoka, Kyoto with a huge investment of 280 million yen, an amount four times that of the company's capital. Many thought this costly investment was the folly of an eccentric technology-minded president.' Even Kazuma knew he was taking a big chance. Always looking to the future, however, Kazuma believed that this facility, with its completely new R&D system, would help the company nurture young and capable researchers. This in turn enabled Omron to develop a broad range of sophisticated, new products, which allowed the company to solidify its position as a pioneer of automatic control components and raise Omron's reputation as a technological innovator. Technological breakthroughs produced at this laboratory also created the base for introducing numerous information systems such as traffic control, train station management and retail systems among others.

The establishment of the Central R&D Laboratory succeeded in generating numerous productive results. In 1963, automatic vending machines made their first appearance on city streets. Under President Tateisi's direction, a project was launched for the development of an automatic vending machine capable of dispensing 121 different meal tickets, along with a bill changer. In less than one month a team of young Central R&D Laboratory researchers successfully perfected these innovative machines. Aside from significantly raising Omron's level of technology, these developments allowed the company to identify new needs in society. Shortly after, Omron developed an automatic meal ticket vending machine for Daimaru Department Store in Kyoto. Daimaru needed versatile machines that could handle 10, 50 and 100 yen coins while dispensing seven types of meal tickets. Such machines had to be able to verify the authenticity of the coins and give change. In addition to meeting these requirements, Omron also incorporated technologies for detecting counterfeit coins and performing three-digit calculations into the system. This technological innovation marked the first step toward the Cybernation Revolution, which spurred on the creation of information systems that integrate automation and computer technologies. Surprisingly, the National Research Institute of Police Science showed a strong interest in Omron's new automatic vending machine and bill changer. The institute was trying to solve a case involving fake 1,000 yen bills, and they urgently needed a machine that could detect counterfeit notes. Again under President Tateisi's leadership, Omron researchers succeeded in developing a machine within eight days. Everyone concerned was extremely impressed with the accuracy and detection capability of this machine. A huge success, this development soon brought another order from the same client to develop a system capable of detecting traffic flow. Kazuma often said "Taking on challenges and finding solutions to difficult questions is what being an engineer is all about." A vehicle detector that combined advanced solid-state technology with the computer technology accumulated through the production of Omron's meal ticket vending machines was also developed. This was soon

followed by the completion of an automatic traffic signal capable of controlling the timing of signals according to traffic volume. In April of 1964, the completed systems were tested and proven successful at a heavy-traffic intersection in Kyoto. Kazuma later commented: "During the test, I often visited the site to see how it was going and to encourage the staff. I was deeply moved when I saw the tired, dark and unshaved faces of our researchers. I remember thinking at that time what would make these young people immerse themselves so completely in work even at risk to their health. Was it responsibility, obligation, or a drive to realize their goals that pushed them to such lengths? Whatever the answer, I felt an incredible sense of pride."

Unceasing R&D efforts at Omron led to the creation of modern traffic control systems that are now making a great contribution to easing traffic jams in urban areas. These developments, which range from a counterfeit bill detector to various traffic systems, clearly illustrate that Kazuma's social awareness philosophy and the company motto are both fully put into practice. In September of 1963, President Tateisi visited the United States for an inspection tour. There he was offered an opportunity to take part in the joint development of an automatic vending machine that could accept credit cards with the leading American vending machine manufacturer, Automatic Canteen Co. For Kazuma, this presented a new area of vending machine technology. Within two years, Omron had succeeded in developing systems capable of accepting credit cards and deposit cards through this joint effort. When word spread to the media, this development was big news not only in the U.S. but in Japan as well.

This card system technology later served as the foundation for the development of cash dispensers and automatic teller machines, which created a revolutionary wave of automation in banking operations. At the same time, the technology used for Omron's versatile meal ticket vending machine was attracting a great deal of attention for its potential applications. As railway companies sought new ways to handle a rapidly increasing volume of passengers, they looked to Omron to provide train ticket vending machines. Omron's first automatic ticket dispensers were supplied to National Railway's (presently JR West) Kobe Station in 1965. This was soon followed by the development of a ticket gate system in cooperation with Kinki Nippon Railway, which exactly answered the growing labor-saving need for train station management. In 1967, in preparation for EXPO '70 to be held in Osaka, the world's first unmanned train station system was installed in Hankyu Railway's newly built Kita-Senri Station. This system consisted of rows of ticket vending machines, commuter pass dispensers and automatic ticket gates. Since then, most cities in Japan have adopted Omron's unmanned train systems.

When Kazuma Tateisi was first introduced to the theory of cybernetics by Dr. Katsuzo Nishi in 1952, he was particularly attracted to the idea of "comparing the control and communication systems of animals and machines." Shortly after, he began studying a methodology for scientifically measuring the degree of healthiness. He intended to do this by adopting cybernetics with the aim of realizing more efficient health care management. Tateisi termed the broad field that applies cybernetics to living things 'health

engineering' and strived to put health control and diagnosis into a complete system by adopting Omron's proprietary Cybernation technology (a combination of automation and computer technologies). As such, Omron was committed to developing various systems for medical diagnoses, and new devices for monitoring biophysical functions. Early research in the field of health engineering was later advanced and refined at the Omron Institute of Life Science Co., Ltd.

Cybernetics and an awareness of public responsibility drove Kazuma's desire to help promote health and improve societal living standards. As the victims of thalidomide reached school age in the later part of the 1960s, the Lions Club launched a 'Help Thalidomide Victims' campaign. As part of this undertaking, Kazuma was asked to develop an artificial arm. Soon after, a research project in cooperation with the Medical School's Orthopedic Surgery Division of Tokushima University was launched, resulting in the completion of an electric artificial arm one year later. On seeing the first recipient of Omron's electronic artificial arm grip a piece of chalk and write on a blackboard, Kazuma felt truly honored to be part of this valuable project. Recorded by NHK (Japan's Public Broadcasting Network) for a documentary program, this touching moment between Kazuma and the young girl was broadcast throughout Japan. These types of projects are not intended to increase sales but rather to voice Omron's corporate motto and meet its responsibility to the public. Two years later, Kazuma Tateisi was awarded a doctorate in medicine from Tokushima University for his thesis concerning the development and study of electric artificial arms.

In 1971, the late Dr. Yutaka Nakamura and social commentator Chieko Akiyama visited Kazuma Tateisi with a request for assistance in establishing and managing special factories designed for the disabled. Kazuma wanted to meet their request but it unfortunately came at an inopportune time. The energy crisis has just come to an end, and Omron was in the process of constructing three new factories. Nonetheless Kazuma felt it was important, regardless of the timing, to meet the company's responsibility to society. In 1972, Omron Taiyo Co., Ltd., run and staffed by the physically challenged, began operations in Beppu, Oita. Since then, the company has consistently generated profits and steadily expanded operations. In commenting on meeting Omron Taiyo's staff for the first time, Kazuma expressed his apprehension. "Before attending the inauguration ceremony, I felt uncomfortable at the thought of having to meet and interact with the disabled. I expected it to be an awkward and disturbing time and that I would feel sorry for them. Nothing could be further from the truth. As soon as I started speaking, I could see and feel the energy and enthusiasm they had for their work. When the factory manager, a 28-year-old wheelchair-bound man dressed in the Omron uniform, confidently and with pride headed to the front to make his speech, I was deeply impressed." Fourteen years after the establishment of Omron Taiyo, a second Omron Taiyo factory was opened in Kyoto. By providing the physically disabled with employment opportunities, Omron strives to meet its social obligations and fulfill its corporate motto.

By consistently anticipating and responding to new societal needs as well as through an unceasing commitment to R&D endeavors, Omron went from being a small factory to a leading business with diversified products that include everything from automatic control components to various information systems. In 1979, the company's yearly sales amounted to 100 billion yen. Having spent 46 years as president, Kazuma Tateisi handed the reigns over to his first son, Takao Tateisi (who later died in 1995) and took on the position of chairman. In this position, Kazuma Tateisi focused on foresight and insight to determine what direction the company should be heading in. In his New Year message to Omron employees in 1983 (Omron's 50th anniversary), Kazuma pointed out that "Omron is suffering from big-business syndrome. To effectively take care of this problem before it can cause further damage, everyone concerned must take a 'do-or-die' approach. We must transform ourselves into a company dominated by social awareness and a venture spirit, two qualities that drove Omron's growth in its early days. By transferring authority to decentralized divisions similar to small businesses, the new organization will have a simpler and more streamlined structure. This will solve the problem and revitalize the company. Our efforts to achieve this goal will constitute a challenge for everyone in the new year, but I believe it is a worthwhile challenge to take on as we celebrate the company's 50th anniversary." Following his speech, all concerned integrated total effort to transform Omron from a company in the throws of big-business syndrome, to one with a forward-looking approach that aims for continued growth and prosperity over the next 50 years. The expression, big-business syndrome, was Kazuma Tateisi's way of characterizing a common problem plaguing many companies at that time. After being featured in various newspapers and magazines, it immediately became an industry catchphrase. In commenting on its widespread usage, Kazuma himself was taken aback by its popularity. "By the fall of that year everyone was talking about big-business

syndrome. I really didn't think I was coming up with anything new, I was simply describing the situation I saw happening at that time. What I realized was that no one, including myself, really wanted to be the first to come out publicly and admit this serious weakness. I made this a topic of my speech only because I had a definite idea on the measures we could take to correct this condition." Kazuma's management philosophy was detailed in a book entitled 'The Eternal Venture Spirit.' Focusing on an entrepreneurial spirit and the processes needed to put it into practice, this book -- translated into English, Chinese and Russian -- proved a useful guide for business executives throughout the world.

In 1988, Chairman Kazuma Tateisi became executive adviser. His first son, Takao, was appointed chairman, second son, Nobuo, vice chairman (presently chairman) and third son, Yoshio, president. In considering the company's future, he realized the need to rename the company 'Omron Corporation,' which was done in January of 1990. Executive Adviser Kazuma Tateisi explained the name change. "Our company has now enjoyed three inauguration ceremonies, from its foundation as Tateisi Electric Manufacturing, to Omron Tateisi Electronics Co. in 1948, and now to Omron Corporation. Initially the media in Japan reacted uncertainly to the new name. This is because it's unusual for any company to change its name while the founder is alive. Plus, 'Tateisi' was no longer included. The reason for the change was simple -- 'Tateisi' for non-Japanese is difficult to pronounce. Actually, I knew we would have to change our name as far back as 1970 when Omron first issued convertible bonds in Europe. During my visit there, I realized that in the future we would be listed in foreign stock exchange markets and widely publicized around the

world. Common sense told me that 'Tateisi' would have to be removed from the company name for ease of use internationally." In 1990, in commemoration of the new start, Kazuma Tateisi donated shares for the establishment of the Tateisi Science and Technology Foundation. It marked the culmination of Kazuma's lifelong dream to create a facility that would support future research efforts in science and technology. Aiming to advance and nurture a whole new generation of researchers, the foundation grants aid to research projects in and outside Japan. Through this foundation, Kazuma also aimed to promote Omron's management philosophy, 'To the machine, the work of the machine, to man the thrill of further creation.' On September 20, 1990, Kazuma Tateisi celebrated his 90th birthday.

(Appendix : The Third Inauguration) An excerpt from Kazuma Tateisi's remarks on the publication of 'The

Eternal Venture Spirit' *

When I look back to when I first started the company 57 years ago as Tateisi Electric Manufacturing Co., it really is amazing how far we have come. In 1955, I entered an entirely new area of business -- automation. Since then, Omron has earned a reputation as an R&D driven company for its tireless effort in seeking new societal needs and satisfying them through progressive R&D endeavors. Our financial standing has also improved steadily from a yearly turnover of 240 million yen at the start to that of 350 billion yen in 1990. During the course of corporate development, we have consistently made sizable contributions to society. It was a way back in 1956 when I first came across the concept of 'the enterprise as a public servant' at a business seminar organized by the Keizai-Doyukai (Association of Corporate Executives). The speaker emphasized the need for corporate executives to promote awareness and fulfillment of social responsibilities within their organization. I put this tenet into the form of a company motto, 'At work for a better life, a better world for all,' and officially adopted the motto in 1959. Over time, I have gradually sharpened and refined my idea of corporate profits. I believe that from society's point of view those companies that provide the best service are of the greatest benefit. As such, society would naturally value those companies highly and will operate to give them profit for growth-oriented investment. This is done so that society can continue to benefit from that company. I honestly think that the growth we have enjoyed over the years is due in large part to society's high appraisal of Omron. At the age of 90, I decided to express my appreciation to society in the form of the Tateisi Science and Technology Foundation. Through this foundation I hope to nurture and support researchers and scientists. I also decided to finance construction costs for the International Institute for

Advanced Studies to be built in Keihanna Science City. I made this decision because I believe that it is essential for our nation to maintain a leadership position in advanced R&D. I deeply believe that my management approach for the past 30 years has been proven effective. Aside from the concrete results we have achieved over those years in the industry, the surprising success of my own book, 'The Eternal Venture Spirit,' is also proof that this approach works. Published in 1985, it outlines the business principles and management philosophy I had adopted for Omron during that period. That this book came to be popular internationally, even in a communist country like China, was truly an eye-opener for me. Being the first translation (1989), Vice Chairman Nobuo Tateisi visited Beijing and Shanghai to attend celebrations for the book's release. I understand that more than 1,000 people assembled to hear his speech.Later the same year, an English version was released and published in America. For this edition, my good friend, Dr. Peter F. Drucker, kindly wrote the preface. In the following year, a Russian edition was published. Managing Director Hideki Masuda first suggested the idea of a Russian publication after visiting the country. The first Russian edition (20,000 copies) was printed in time for my 90th birthday on September 20. On that day, I received 20 copies -- a truly remarkable birthday present. On November 5 of 1990, President Yoshio Tateisi attended a ceremony to celebrate the release of this edition at the Moscow Ordzhonikidze Institute of Management and presented 2,000 copies to the university. After the ceremony, President Tateisi spoke to an audience of 900 students, faculty members and business executives on the subject of 'an entrepreneurial spirit and the role of the company as a public servant.' With 'The Eternal Venture Spirit' available in four languages, I sincerely hope that corporate executives around the world take the opportunity to read it. I believe it can act as a business model for companies striving to maintain a strong entrepreneurial spirit while operating responsibly within society. That would be the greatest present I could ever receive.

* Dr. Kazuma Tateisi died in 1991, leaving behind a legacy of high standards and accomplishments in the world of business. The innovative yet practical entrepreneurial philosophy he devised and embodied through actual management practices will continue to be maintained by Omron. As the backbone of our company, this philosophy characterizes Omron's distinctive corporate culture and guides the company in its future endeavors.