Mogic considers

With the combination of a small number of people + software + servers and robots
We are promoting a new era of company management.
We hope to share part of this process with you in this corner.

Representative Director Yoichi Yamane

May 14, 2024

Antenna like a fish bone

A psychologist friend of mine once taught me about the process of "learning.

... says

In the case of child-rearing, it is not enough for parents to give their children a lot of information.

It often doesn't make sense to tell them that this is good information and that they will fail if they don't do that.

They can do it when they say it, but not in similar situations, or they don't remember it in the first place.

I will often say, "I told you before, why do you keep making the same mistakes, think about it a little.

Why do you think?

That's because the child's mind has not developed antennas that can catch that information well.

If you have antennas like fish bones in your head, just by looking and listening, information will be caught on and become blood and flesh.

That way, before you know it, you naturally end up with a fine fish.

But if you don't have antennas, all information just flows from right to left.

You can imitate it well in the moment, but you can't apply it because it hasn't sunk in."

Then, I continued.

If so, how can you create an antenna in your head?"

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If you have antennas, you know the basic skeleton information.

It is easier to become an antenna when you have some base knowledge and also know the big picture.

If you have knowledge of the sewerage system, you may become interested in manholes while walking around.

However, this basic information is easier said than done,

It's actually hard to get into my head.

The point is that the information has to be conveyed before the antennae are created, and that basic information inevitably looks boring.

So, we will need to be creative there.

If possible, it is better to let them have various real-life experiences so that they will remember them without knowing it, or to talk about them loosely and gradually little by little every day.

That is one aspect of why people say that conversation at home is important.

So is the interest in new things from friendships.

The more antennas you have, the more information you capture, and this is seen as an attitude of curiosity.

I thought to myself, "Well, that makes sense," and so I "stopped teaching" even more.

Instead, he said, it's better to keep a wide range of unimportant stories about this and that.

It is for the same reason that I keep non-business-like books in my office.

Building a broad and shallow base of wisdom may or may not someday be competitive.

At Mogic, we are working on this over a long span of 10 to 20 years.

May 07, 2024

Plentifulness diverts funds.

When making an investment in a company, one sometimes wonders when this will be recovered as funds.

Of course, for the sake of convenience in explaining to someone or in compiling documents, the timing of collection and the rate of return are determined for convenience, but in reality, it is not always clear.

If you somehow anticipate business growth and purchase an additional 10 or so servers, there are too many other factors to determine where you really want to return them.

Let me quote from a text that explained this through interest rates.

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A Tale of Interest Rates "The Price of Time"
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Interest - the time value of money - is at the heart of valuation.

omission (of middle part of a text)

The act of investing - for example, building new factories, machinery, and other infrastructure - requires investors to forego consumption at this time.

As a result, it takes time for profits to accrue.

In theory, investments should only be made if the rate of return is at least commensurate with the investor's time selection.

John Ray says that a society's decision to invest capital depends on "the length of time over which most of the members of that society are willing to give up a good at the present time if that good will double in value after a certain period of time has expired."

omission (of middle part of a text)

As interest rates fall, companies will tend to invest in projects that are more profitable farther down the road - in Hayek's terminology, the "production structure" is diverted.

When interest rates are kept below natural levels, misguided investments occur.

Too much time is spent in production, or to put it another way, the return on investment does not justify the initial expenditure.

To use a term made famous thanks to an Austrian economist, "malinvestment" takes many forms and appears on many scales.

For example, costly "useless projects" such as the construction of undersea tunnels, and picture-perfect technology plans that are not expected to generate a decent profit.
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The act of investing when you have as much money on hand (very occasionally) as you can raise at low interest rates (very occasionally) raises the fear in my mind that the act of investing when you have an abundance of cash on hand (very occasionally) may unknowingly lead to a similar process.

In other words, the more you feel you have plenty of cash on hand (whether you really have it or not), the more you are setting yourself up to fall into the trap of spending too much on the production structure and not getting it back at all in the time you are looking for.

To derive from the rough analogy from macro to micro, I still feel that the lack of understanding when investing is something that cannot be wiped away forever.

April 23, 2024

Business Model Exploration by the Numbers

There was a time when I was studying business models before I started my own business.

We covered three industries a day, and did so for 30 days, or roughly 100 industries.

The listing of industries is far from planned, and his style is to research anything that catches his eye.

Beauty salons, drugstores, convenience stores, laundromats, restaurants, taverns, snack bars, cake shops, railroads, passenger aircraft, travel agencies, guest houses, supermarkets, convenience stores, transportation companies, dual-use farmers, suburban vegetable farmers, fishermen, aquaculture, forestry, steel manufacturing, paper manufacturing, architectural design companies, nursing care facilities, insurance sales, real estate companies, Graphic design companies, advertising agencies, wholesale wholesalers, city halls, NPOs, and so on.

Since the business model is too broad, we first create a fictitious profit-and-loss statement per month, and then calculate the annual figure, taking into account seasonal fluctuations.

The next step is to estimate the initial costs, operational costs, and unexpected costs required to complete the model.

Conveniently, figures for facilities, rent, labor costs, etc. are available on the Internet, so we can pick up reasonable ones and build a structure that allows us to simulate them.

Since the structure of the industry is somewhat understood at this point, we can determine how likely the business is to be in the black or in the red by tweaking parameters such as the repeat customer retention rate and inventory turnover rate, and take a blink-and-you'll-miss-it approach.

Then we can assume the impact in case it happens, so we can make sense of it by saying, "Oh, this business is usually good, but external factors can cause it to deteriorate rapidly," and summarize it as a risk once and for all.

It's a rough method, but I think it has helped me get an idea of a model that is likely to work well across industries.

If I ever return to the countryside, I would like to try a mixed-use model with a real estate agency on the first floor and a snack bar on the second floor.

2024.04.16

stick one's neck into trouble

Whenever I have a little free time, I help maintain the equipment, whether it's in my office or someone else's room.

We started this project by replacing the faucet with a shower head.

Unlike electrical work, it does not require a license and can be easily started, but the main drawback of the plumbing system is the small work space.

You can finally see the water hose when you poof open the lower door of the sink, take out a large amount of stuff, turn over and slowly slide in head first to the back of the sink.

I relied on the light on my phone to check the hot and cold water connections, determined the durability of the water line, and took a quick snapshot to check around the nut that secures the water valve from below, and then settled down for the first time.

After allocating a replacement faucet online, matching detailed specifications one by one, and finally determining the price, the replacement procedure is envisioned.

However, when we actually try it, we often struggle more than expected because the old water valve may have unexpected joints.

Phew, I don't know how I got into this mess, but I am trying as much as time allows to do what I can to be useful.

I'm going to look into this or that and try to do what could be done in an instant by asking an expert.

Putting your own hands on it is also a risk you are willing to take.

What if the old faucet rusted out and couldn't be removed? What if the replacement doesn't connect properly? What if the water leaks at a later date? What if the damage caused by the leak spreads to the surrounding area?

You may think that I am getting involved in something totally troublesome.

From a business standpoint, this is a matter that should be covered by hiring a specialist for unfamiliar and time-consuming work.

That's true, but it's not just about construction, but also about work and management.

Everyone thinks it looks like a hassle, so it's worth a try.

So I did it, and wow, it's a different kind of hassle, and that's hard to get rid of.

2024.04.08

People can feel like people.

I want you to tell me what you eat on a regular basis, and I will guess what you are." I'll make you guess what kind of person you are."

This is a well-known quote from a gastronome who lived in the 18th century.

Time flies, early 21st century

Now we can ask the computer for something similar.

I want you to tell me the words you use on a regular basis. I will guess what kind of person you are."

And so it went further and now

'I want you to tell me what sentences you use on a regular basis. I'll guess what kind of person you are and then I'll write it for you."

The technique of vectorizing food as a representation of lifestyle and using correlation coefficients between food and food to determine a person's image now extends to words, sentences, and images.

There is no way to avoid the flow of an individual's uniqueness being mapped flat through the filter of statistics.

What is it that makes people feel like people?

Where is the boundary between the two?

This has become a very important theme in the future management of the company.

2024.04.02

Putting the Future in Review

Various teams ask me to review what the interns have created.

When called into the conference room, they give a quick presentation and then ask, "What do you think? It is a common practice to ask, "What do you think?

The first one or two pictures I see give me an idea of what I need to feed back, so from there I imagine a future where they will walk away from this for the rest of the time.

An example would be.

You feel like you're on your own, and you're relieved. I realize that the shadow of my career and purpose in life will follow me everywhere.

It is very important to do the work that you are asked to do, and to do it well.

On top of that, I would like you to include one of your own specialties.

Persistence is something that can only come from a person's character and the way he or she has lived.

Even if no one notices and someone belittles you, keep the particulars in.

The spirit of persistence will accumulate and eventually become the foundation of life.

March 26, 2024

By the pond where ducks relax

Come to think of it, I have been on my own ever since I started my business.

They also tell me that I am laid back.

It was not associated with the idioms of rapid growth on the right, exponential parabolas, and scaling up by orders of magnitude.

If we can have a good time talking about trivial things, eating delicious sweets, and doing something we can believe in, that's enough.

Come to think of it, the old faces are still the same and you can just hear them laughing.

Maybe it will never change.

If you are looking for rapid growth, there are many companies that are willing to go for it.

If you have a brilliant career, there are many workplaces where you can make it happen.

Speaking of Mogic, we are looking for people who want to live in a relaxed atmosphere by the pond where ducks are at home.

March 18, 2024

Integrity: Integrity

Work with integrity.

If we were to assign this to English, the word integrity seems appropriate.

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Integrity (English: Integrity; Chinese: 誠信) refers to behavior that consistently and uncompromisingly adheres to high moral and ethical principles and values, along with the practice of honesty.

abbreviation

The English word integrity is derived from the Latin adjective Integer, meaning "whole or complete,

integer (feminine integra, neuter integrum)

1. whole, complete, intact
2. safe, all right, soundness
3. as a derivative of the English word "Integer
3. as a derivative, means "integer" in English.

In this context, integrity would mean "wholeness" derived from inner qualities such as integrity and consistency. Therefore, when we ask whether a person has integrity, we can say that he or she has integrity only if he or she acts in accordance with the values, beliefs, and principles that he or she purports to hold. Simply saying that one has high morals, values, and beliefs does not mean that one has integrity.
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To sum it up in one word: overall health.

It is an expression that is hard to get to grips with.

So, if a good excerpt from the text is "do things consistently, uncompromisingly, and with conviction, and be recognized by those around you," then this is definitely an indispensable guideline for teamwork.