The following is the Founding Prospectus of Tokyo Telecommunications Engineering Corporation that Mr. Ibuka drew up in 1946. (Tokyo Telecommunications Engineering Corporation) Established on May 7, 1946
During the war, I worked at Japan Precision Instrument Co. with a number of engineers testing and producing new military equipment. We worked so hard that we literally forgot to sleep or eat. After the war and dissolution of the company, about 20 of these dedicated and truly worthy engineers joined me to start Tokyo Tsushin Kenkyujo (Tokyo Telecommunications Laboratory), for the development and production of communications equipment.
The first and primary motive for setting up this company was to create a stable work environment where engineers who had a deep and profound appreciation for technology could realize their societal mission and work to their heart's content.
During the war, though we were subjected to some of the poorest conditions, we tried hard to fulfill our mission. I experienced how passion together with capabilities can be driven by a profound and fascinating mission. On the other hand, I also realized what could weaken these intense motivations.
Thus I began to conceive of ways for these motivated individuals to be united on a personal level, to embrace a firm cooperative spirit and unleash their technological capacities without any reserve. If this could be accomplished, the organization would bring untold pleasure and tremendous results, regardless of the meagerness of its facilities or the limited number of employees. The end of the war brought us closer to realize this dream.
Not just anyone, but those with similar resolve have naturally come together to embark on this new mission with the rebirth of Japan after the war. We felt no need to discuss how to prepare ourselves for such an embankment. Based on a common understanding we had developed over time, our ship sailed off naturally.
With scarce testing equipment and parts obtained from Japan Precision Instrument and capital the size of an allowance, we drew up a plan to somehow make our way through. We believed that our high aspirations and confidence coupled with our unity and technological know-how would break through any rough waves, despite the small size of our operations. Further, we began on a small scale because we were unable to foresee societal circumstances during a period when our country was facing a turning point. In addition, we realized that it would take some time for our work to be recognized and valued by the society.
However, as we actually began our operations, we realized how much Japan urgently and indispensably required a company like ours - with technological spirit and a set of management policies. We first became aware of this strong need through the activities of the Ministry of Posts and Telecommunications, the Ministry of Transportation and other government agencies related to the field of communications. Unlike the other ministries, which seemed to wallow with their problems, the ministries related to communications defined a clear direction by taking the initiative and announcing numerous detailed plans, such as the release of all-wave receivers to the general public, the liberalization and initiation of private broadcast stations, the overseeing of trial television broadcasting and the rapid rebuilding of the communications
network devastated by the war. These ministries made it seem as tough public companies were being lead by them.
Such activities had a direct influence on us. Due to our close ties with the Ministry of Posts and Telecommunications from the wartime, we soon began receiving large orders for vacuum-tube voltmeters and the like. In little time, proposals for new product research and requests for trial tests grew significantly. In addition, the licensing of all-wave receivers to the public rapidly increased interest in post-war radio programs and in radios themselves. This, coupled with a huge number of 'sets' (such equipment as gramophones) which were destroyed during the war, the demand for radios from our company's radio service division grew by the day. We were also receiving many requests to manufacture quality parts from cooperative university scholars, research laboratories and conscientious enterprises with similar intentions as us.
As mentioned above, the increase in demand from various customers made us more determined. Namely, we realized the importance and need to increase capital and equipment. I feel joy beyond expression that our diligent effort has produced such a great response from all levels of society and that our company has become successful in such a short period of time since its founding. I am delighted not only because this promises our company's rapid growth in the future, but because it means that the ideals we set forth coincided with the role and function a company had to play during the period of Japan's reconstruction.
With this in mind, our company plans to provide the best service by utilizing both its technological skills and measuring instruments. The use of compact service cars is an example of such a service. These cars will service various weights and sizes of electronic phonographs, high quality receivers and television sets. The car contains all the necessary equipment for measuring, fixing and servicing home electronic appliances and will respond speedily to a phone call. The car will improve our work efficiency, and the number of technicians and equipment that is needed can be minimized.
For rural areas, since the number of high quality products are still small, we plan to service our products on a specific date by making arrangements with a specified radio shop.
The fact that the Japanese government allowed all-wave receivers to be used for commercial purposes, has encouraged large and small radio companies, including ours to manufacture them. Due to a lack of materials and other related issues, it will take some time for these products to actually hit the market. To respond to the needs of the consumer in the interim, we have developed a device which will easily convert the customer's hand-held receiver into all-wave receiver. However, materials for the new converting device are also not readily available. Nonetheless, due to its technological superiority and function, we have accumulated orders from consumers as well as radio shops. By next June we plan to manufacture 500 of these products for 400,000 yen in total. In the meantime, we will determine our strategy after observing how all-wave receivers perform on the market.
Orders for repair work are increasing as there are many people who were affected by the war and because of a lack of trustworthy radio shops. Our response to the situation at hand is to make profit secondary to service. We will provide reports which explain the problems in layman's terms and provide the best customer service. We will remain responsible for fixing any problem we find -no matter how complicated they may be. This will be the motto of your service department.
Additionally, we are developing and planning extra high quality receivers, electronic parts and household appliances, though they may be small in number compared to what our competitors are making. Introducing technologies from overseas, creating a library which has information and books on radios, holding workshops to educate consumers on the basics of electronics will also be important issues the service department must address.
(Service to shareholders)
We will provide in-depth service to shareholders in the future. It shall be interesting to add a membership type of a characteristic to a normal relationship between a corporation and shareholders so that members can request service anytime they wish
Additionally, we are developing and planning extra high quality receivers, electronic parts and household appliances, though they may be small in number compared to what our competitors are making. Introducing technologies from overseas, creating a library which has information and books on radios, holding workshops to educate consumers on the basics of electronics will also be important issues the service department must address.
We will give away new equipment, such as a device which prints the contents of a newspaper that it receives over the radio, to develop a more intimate relationship with the shareholders. As household appliances flourish, this becomes an extremely valid method to communicate with our shareholders.
Nihon Measurement Company, that we used to belong to, is one of the rare measuring instrument manufacturers. This company started with a very small capital investment and poor facilities. The reason why the company succeeded in such a short period of time is due to the great management style that was employed in its measuring instrument department.
For Totsuko, the vacuum tube volt meter (VTVM) for measuring ultra-short waves is the resulting product of 10 years of endeavor.
The great support we have received from the public is something we can definitely be proud of. Further, the fact that our instrument is one of the best in the world was proven when the Occupation Forces took the product back to the U.S. The production of the VTVM is being planned for this new company (Totsuko) since we have received 150 orders from the Ministry of Communications (about 300,000 yen). We plan to complete the production by the end of March. We are progressing very well.
Since the Ministry has plans to place orders during its fiscal year 1946 for a greater quantity than from the general public, and televisions will probably be a big hit when they are launched in the future, our company can be financially sound even with a single product - VTVM.
In addition, we plan to develop special high quality measuring instruments. We will also place great emphasis on a 'total service measuring equipment.' This measuring equipment will allow even technically untrained radio shop persons to perform analysis on high quality radios. In other words, it will be a simple fault-finding device. The spread of such equipment will make the public realize what true service really means. And we plan to make our equipment useable to small and large manufacturers.
The Service Department I have mentioned at the beginning of this section deals with the general public. The latter part refers to providing service to experts. However, the spirit and the depth of services are the same in both.