IT revolution in the Japanese traditional company

Japanese companies are conducting extensive restructuring of their operations following examples of US companies that transformed their organizations successfully to complement economic conditions. Accordingly, there is a growing fear that a 'corporate Alzheimer's phenomenon' may result; thus, an important concern has become the study of knowledge management. The assured success of revolutionizing Japanese industry depends entirely upon the fusion of cyber and traditional businesses. From this viewpoint, in this paper we provide an example of the revolution of Japanese enterprises to knowledge creating companies, and discuss the guiding principles.