Mogic is a thinker.

With a combination of a small number of people + software + servers and robots
We are moving forward with a new era of company management.
I hope to share some of that process with you in this section.

Representative Director Yoichi Yamane

June 21, 2021

Dollar cost averaging, how to create branded services

One very simple investment technique is dollar cost averaging.

According to Wikipedia, "An investment technique for stocks, mutual funds, and other financial instruments. It is also referred to as the fixed amount purchase method. When purchasing financial instruments, one does not purchase them all at once, but rather divides the funds into equal amounts and invests them continuously on a regular basis. This method is used for long-term investments with limited risk and stable returns. The disadvantage of dollar-cost averaging in a rising market is that the average purchase price is higher (compared to the initial lump-sum purchase), which can reduce returns. Because of the lack of precision in timing, dollar cost averaging is not suitable for high-return investments in instruments that fluctuate widely in price."

For example, instead of buying 5 products each month, it is like getting only what you can afford for 10,000 yen.

Of course, if the unit price per product increases, what could have been 5 units for 10,000 yen may become 2 units.

If the price of the product drops, you can get 8 pieces for $10,000 in the opposite direction.

Since the risk is spread out by spreading out the timing of purchases rather than buying all at once, it can be used when the market is likely to rise in a gentle trend over the medium to long term.

We have been a bit wildly lateral in developing this concept and using it to secure resources to create our own services.

It is suitable for those who want to steadily develop their own branded services while gradually making sales with their own funds.

Approximately, design production and program development for clients are directly related to sales, so these are the highest priority resource allocations for the organization.

However, if we want to be a little greedy and create our own branded service at the same time, how should we allocate our resources?

During the initial start-up period, some cohesive resources can be invested in branded services.

However, since client projects are subject to fluctuations in the receipt and placement of orders, the "service is often modified or not" in proportion to these fluctuations, and eventually the client tends to be left in a state of "wait-and-see" because the results have not been achieved.

Therefore, we apply the dollar cost averaging concept here.

If you set a number of improvements that must be done each week, you will lose time when you are busy and get stuck mentally.

If you buy books regularly, they pile up when you are busy and you suffer under the weight of them.

We will control the number and difficulty of assignments according to the amount of extra time available, not the number of pieces.

When we are busiest, we do very little.

When I have time, I usually do it.

We will continue to do this all the way through.

The key is not to stop anyway.

The disadvantage of this is that the management cost increases significantly, since the situation of all members (busyness, of course, but also level of proficiency, level of blossoming potential, timing of life, etc.) must be observed in detail before assignments are decided.

If we can develop a method that can compress even that, this will become one of the very reliable methods.

June 15, 2021

Computing power in one hand

I once asked one supermarket expert to share the secret of his assortment.

I apologize for my hazy recollection, but I was told that it is not enough to have only products that sell well on ......, but to also have products that sell only occasionally, otherwise overall sales (number of visits to the store, number of purchases, etc.) will drop.

The products arranged around the perimeter from the entrance are those that sell well, such as vegetables, fish, meat, drinks, bread, etc. Conversely, the products that do not sell well but are important are the seasonings and canned goods in the center.

I remember feeling like it was some kind of ecological balance, even though it was a supermarket made by people.

It is not something that can be measured by a single measure of product sales, but rather a whole that is formed by various things fulfilling their respective roles here and there.

I quote from a hypothesis that touched on such a fine balance in the environment around me.

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A home is an ecosystem - you live with 200,000 species
http://www.hakuyo-sha.co.jp/creature/never-home-alone/

He believed that the loss of biodiversity would also cause "pain" to the human immune system, causing it to malfunction.

The most direct stepping stone in this line of thinking was the hypothesis and series of studies that chronic autoimmune diseases are associated with an excessively clean and hygienic lifestyle.

This "hygiene hypothesis" was first proposed by David Strawn, an epidemiologist at St. George's Medical School, University of London, in 1989.

omission (of middle part of a text)

Hanski, Hertera, and von Hertzen believed that exposure to a wide variety of organisms in the environment, in the house, and on the body must play some role in the normal functioning of the immune system's peacekeeping pathways.

Without the opportunity for such exposure, the immune system responds by producing IgE antibodies, which trigger an inflammatory response to a variety of antigens that are not actually dangerous, such as dust mites, chigger cockroaches, mold debris, and even cells of the self.

If children are not exposed to enough wildlife, the regulatory pathways will not do their job.

They thought they would develop allergies, asthma, and a host of other problems. A provocative hypothesis, but one that needed to be tested.
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The theory is that the body's immune system, which has been built on the premise of coming into contact with a wide variety of living creatures, is adversely affected by an environment that is too clean for its own good.

Whether this is really the case or not will continue to be verified, but even so, I feel that the relationships among living creatures and between living creatures and the environment are often complex and difficult to understand.

Scales also range from nano to meters, and the flow of time is different.

We have been able to simplify and handle some things that are difficult to understand.

However, with computing power increasing year by year in hand, it will be mainstream to decipher even the most intricate things by tracing them.

2021.06.09

Things that never change

Even with the Corona Disaster, my impression of the lunch break is that they are still doing what they love to do.

It could be a group playing an online game on the Switch, eating ice cream, enjoying conversation, reading a book, building a DIY desk, or putting up a tarp on the rooftop.

Naturally, the rules for preventing coronary infection are to be strictly followed.

Since many people have shortened hours, the time they leave varies, with some leaving on time and others working a little overtime.

People say that I am busier these days, but a few years ago I used to spend two hours on a lunch expedition or play baseball in the park in the evening, so I guess I feel busy compared to that.

When we asked employees who joined the company a year ago what their impression of the company was.

"Lots of non-work related books are updated."
Spending time, energy, and money on non-work related activities.
Interior design changes frequently.
"Lack of punctuality."
Everyone in charge looks in the same direction.
Everyone goes home together.
The culture of small talk.
There's a lot of internal media, a lot of history, a lot of records."

He mentioned many of them.

I'm trying to figure out how I should take it, but after all, the atmosphere doesn't seem to have changed in the past 10 years.

2021.06.02

That is the strange part.

Every week, we have a meeting called the Executive Board Meeting, which is attended only by the executive officers and the chief, a managerial position.

The board members do not participate at all, only the person in charge of the site.

In fact, we have never asked this meeting to proceed in this manner, in this format.

Sometimes I just throw out a subject that I think the entire company should change its flow and awareness.

There is no other set agenda, and apparently they are talking from what they should be talking about at this time.

When the number of people in a company increases or social conditions change suddenly, the ways of doing things that have worked in the past suddenly no longer work.

It would be nice if they could quickly clear up these issues through teamwork at the field level, but I leave that up to their senses as well.

When I hear glimpses of what they talked about later in management meetings, where executives also gather, I get a sense of what they are talking about.

Like in a mystery novel, where mystery leads to mystery, there may be "hidden causes" for seemingly unconnected events (quoted below).

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This is how the brain learns
https://www.morikita.co.jp/books/book/3513

Captain Gregory of Scotland Yard asks, "Is there anything else I should be aware of?

Holmes - It was one of those strange dog things that happened at night.

Gregory - The dog did nothing at night.

Holmes - That's where it gets weird.

Sherlock reasoned that if the dog had spotted an outsider, it would have barked.

The fact that he didn't actually bark means that the culprit must have been a familiar figure, not an outsider: ......

With this deduction, the great detective narrows his search and subsequently unmasks the true culprit.


You may be thinking, "What does that have to do with learning?" but the point is that learning is also reasoning, just like Holmes does.

Learning is ultimately about identifying the hidden causes in order to derive the most plausible model governing a phenomenon.

In the real world, however, it is seldom clear whether an observation is true or false, only indeterminate and probabilistic.

This is precisely where the root of the achievements of Master Bayes and the Marquis de Laplace come into play.

Bayesian theory teaches how to reason with probability and what logical formulas must be applied when the data is not complete and probabilistic about whether it is true or false.
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I believe that as long as everyone is able to sense the unusual and fluctuating nature of the event, it will be fine.

May 25, 2021

Novelty, good vantage point, lots of greenery

We are looking for a property for a new office for our subsidiary company.

We are looking for something in the Shakujii area, but for some reason nothing seems to fit the bill.

As I look at the properties, I think that it is at times like this that the images that lurk in the back of my mind come to the surface.

If you list the various points of concern, such as door knobs that are too round, the name of the property that just doesn't fit, the atmosphere of the rooms but not enough windows, or the different objects in the hallway, you will be able to focus on what you are looking for from the opposite perspective.

As a result, what we were looking for was novelty, a good view, and lots of greenery.

Generally speaking, an office is required to have convenient transportation, a branded location, space, and IT facilities, but it was different.

Looking back, Mogic's past offices have all been designer properties, which everyone calls "cool but cold in winter and hot in summer.

If we choose the same criteria as in the past, we are likely to be opposed by those around us as we accumulate knowledge (i.e., cold and hot), but we want to do well.

May 17, 2021

Why can't we create a successful "strategy"?

What is your vision and strategy for the future? I sometimes have trouble imagining what the future holds.

This is because although we have a direction of what we would like to see happen, we do not put it together in a presentation document or make a presentation.

There are many directions, such as "approach education first so that it can be useful around the middle of the 21st century," "make workers feel fulfilled in their work," and "give hope to those who are involved.

There is nothing more detailed than that, so there is nothing to talk about.

In general, KPIs, strategies, tactics, missions, and visions are required, but I've come this far wondering if I don't need any.

Some may argue that since the organization is not that large, that is fine.

However, I feel it is a little different because even if the organization is small, it will struggle and when things go wrong, it will go wrong.

I found a sentence that fits such a blur, so I will quote it.

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The Body that Does the Math
https://www.shinchosha.co.jp/book/339651/

When humans design artifacts, they clearly decide in advance how much of the artifact will be resources and how much will be noise.

In the example of this circuit, each individual logic block is a resource for solving the problem, but electromagnetic leakage and flux would be considered noise and would be eliminated as much as possible.

But that is only the designer's point of view.

In a bottom-up evolutionary process without designers, anything that can be used is used without regard.

As a result, resources are scattered across the body and environment, blurring the distinction from noise.

The extent to which the problem-solving entity is the problem-solving entity and the extent to which the environment is the problem-solving environment are mixed up without being clear.
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There is another question that I am often asked and I have trouble with.

Why did you go for diversity, or diversity of different ages and nationalities?" It is.

The answer is "I didn't set out to do that," but as you can imagine, I'm going to be disappointed, so I'm going to give you a slightly dressed-up response.

This is what happens when you recruit people who are comfortable participating in a place like Shakujii, and it is the result of adaptation, not by design.

Are we watching the strategy we set up at a certain point in time become invalidated over time, or are we eliminating noise to justify the strategy, or is the strategy to keep changing the strategy in small increments?

It is somehow too big for me to hold on to on my own, and I can't seem to create a good "strategy" because of the variety of information flowing all over the place.

May 12, 2021

365 starting points

When I was working in my 20s, people around me told me that I had to start practicing management because I would reach my mid-30s, which would limit my ability to be active in the field as a player.

Somehow it didn't add up, and I wondered if it was really true. In my 30s, I started a company in a new field and worked in the field, and when I was in my 40s, the world was calling it the age of 100 years in life.

I think the base of the 100-year life era is to keep learning, explore new possibilities, and work for a long time.

From that point of view, it means that you can put aside the barriers to entry into different fields as a practical matter and try new industries and occupations, both in the field and in management, as many times as you like along the way.

In fact, if I were to focus solely on management from the age of 35, I would be a manager for 35 years, assuming my retirement age is 70, which I personally find rather constricting.

On the other hand, it may seem a bit burdensome to "keep learning all the time and keep trying new fields.

Some may say that life is not all about trying so much.

Therefore, there is one recommendation that we tell our interns.

For now, just start one new thing a day, and look back on the record after a year.

It's not a bad idea to try it, because it will give you a little moisture every day.

You don't have to do anything big; you can buy a sweet you've never had at a convenience store, grab a fork with your left hand, use a new service, or say a word you've never used before.

Still, for one year, that would be 365 lists.

After doing so, why not think about it again?

With 365 lists, at least one of them is a good starting point for something new.

May 06, 2021

Reduce, Reuse, Recycle

The three Rs required for a sustainable society are reduce, reuse, and recycle.

Reduce to reduce the amount of things that would otherwise become garbage, reuse to use the same things over and over again, and recycle to make new materials from the collected materials.

It is easy to think in terms of visible goods, but what happens with invisible assets?

Typical invisible assets in a company include brand and service, know-how and teamwork, management and culture.

We cannot move without first determining "how waste is generated in these things," so that is what we will consider.

Wasted brands and services, wasted know-how and teamwork, wasted management and culture.

In Mogic, it is simple: "Whether or not it is easy to satisfy the people who work or are involved with it" determines whether it is wasteful or not.

We do not provide services that do not give workers satisfaction from their work, we do not have know-how that is efficient but does not allow workers to grow, and we do not need management that turns the heads of those involved.

An example that was once effective but now no longer contributes is the management of events in the office.

Gone are the events where everyone gathered to share fun in the Corona Disaster, replaced by a new expression based on online chat and video streaming.

When I could see no future for a service I had launched in the past, I would dismantle it and incorporate the knowledge into the next service.

One way to do this is to stop offering the service.

Being sustainable may feel static, but it is dynamic in the sense that we are constantly reassessing the value of our work.