Management’s lack of understanding of the system is significant, but the underlying factor is a failure to properly consider where to base management decisions.

The Japanese people cannot let go of the past. And they are not accustomed to change. These two points made it impossible to solve system failures.

First, the pundits’ view is that historically, in a system that has repeatedly merged with other banks and changed personnel over generations, there has been a lack of uniformity in determining how far numbers should be recognized. In recent years, arithmetic processing has made it possible to calculate an infinite number of decimal points. How far to calculate has been decided by the person (or persons) in charge in each era. One of the reasons for the failure is that the discrepancies caused by this have become large errors with the passage of time.

In other words, even if management did not know the Feigenbaum constant (chaos theory developed by Dr. Mitchell Feigenbaum), they could have made the decision to build a system from scratch if they had known how it came about. However, due to their long-standing relationships with system vendors and the discovery of peripheral vendors, they are unable to make the management decision to build the system from scratch. The seniority-based personnel system also hinders this.

Meanwhile, at the recent CES, the world’s largest technology trade show, Mercedes-Benz of Germany unveiled an EV car (Vision EQXX) that was built from scratch (blank sheet of paper) in 18 months. The management decision to have a brand company with a long history develop a car from scratch is nothing short of brilliant.

In order to protect the brand, the brand must be destroyed.

Management that can do this will live long. Louis Vuitton hired Marc Jacobs, Sprouse, and Takashi Murakami to disrupt traditional design. That is why the brand is still alive and kicking.

Precedentism prevents change. The ability to change will be tested in 2022 in After Corona.