As the country prepares to think about the events of September 11, in these weeks before its one-year anniversary, everyone in the auto industry should learn some lessons. One of the most important is the need for intelligence that is timely and used. The United States intelligence failures that permitted the attacks on this country are now slowly being addressed, but the mistakes made at the end of the Cold War cost this country a terrible price. The fates of companies, as well as countries are tied to their intelligence capability

1. eMOTION! REPORTS.com
Automotive/Aerospace Industries Systemic Intelligence
www.emotionreports.com
SPECIAL REPORT
July 23, 2002
Hyper intelligence: Toyota, CIA, NSA, KGB, Mossad
and... Sun Tzu
Dr. Sheila Ronis, The University Group
Director, MBA/MSSL Programs
Associate Professor, Management
Walsh College

2. eMOTION! REPORTS.com
Automotive/Aerospace Industries Systemic Intelligence
www.emotionreports.com
SPECIAL REPORT
July 23, 2002
Hyperintelligence: Toyota, CIA, NSA, KGB, Mossad
and... Sun Tzu
Dr. Sheila Ronis, The University Group
Director, MBA/MSSL Programs
Associate Professor, Management
Walsh College
'If your company doesn't have intelligence capability, they need to begin by
studying Toyota.'
Artemis Communications Satellite Image: European Space Agency
As the country prepares to think about the events of September 11, in these weeks
before its one-year anniversary, everyone in the auto industry should learn
some lessons. One of the most important is the need for intelligence that is timely and
used. The United States intelligence failures that permitted the attacks on this

3. country are now slowly being addressed, but the mistakes made at the end of the Cold
War cost this country a terrible price. The fates of companies, as well as countries are
tied to their intelligence capability.
Guess what organization in the world, long before the Internet's arrival, was found to
send half a million messages a day from just one country to its home base via
satellite? The CIA? The Israelis? The Russians? Toyota?
If you guessed Toyota, you would be right. As unlikely as it sounds, a CIA study in
the late eighties found that Toyota sent over 500,000 messages a day from its
Torrance, California facility to Tokyo via an encrypted satellite hookup. We know
that our CIA sent about half as many messages around the world per day at that time,
and although the Russian’s intelligence was still top notch in the early nineties, its
infrastructure didn’t compare to that of Toyota’s.
“As unlikely as it sounds, a CIA study in the late eighties found
that Toyota sent over 500,000 messages a day from its Torrance,
California facility to Tokyo via an encrypted satellite hookup.”
Lockheed SR-71 Blackbird Image: USAF
Today, many intelligence experts believe that Toyota’s intelligence capabilities are
still superior to those of the CIA, the Israelis or any global power. That’s because
Toyota represents an organization filled with learners who share their knowledge.

4. What does this mean to those in the automotive industry?
Toyota is known in many circles as the best institutional learning machine on the
planet. They are fabulous at it – admired by the best intelligence professionals -- even
the Israelis have benchmarked them.
Why, you might ask, does that matter?
The companies who learn the best and the fastest and apply that knowledge will be
the companies who win in the global automotive wars in the 21st century.
'The companies who learn the best and the fastest and apply that
knowledge will be the companies who win in th global automotive
e
wars in the 21st century.'
When a Toyota engineer learns something new, he shares that new knowledge with
his company, and new knowledge spreads very quickly. That knowledge is
incorporated into decision-making and acted upon with lightning speed.
That makes Toyota very different from most Western institutions – companies,
governments or academia…where knowledge is perceived as the power to get ahead
over your colleague in the next cubicle; not a way for the company to get ahead over
your competitors across the street or on the other side of the world. Toyota knows
who the quot;enemyquot; is.
“What enables the
enlightened rulers
and good
generals to
conquer the
enemy at every
move and achieve
extraordinary
success is
foreknowledge.
Foreknowledge
cannot be elicited
from ghosts and
spirits; it cannot
be inferred from comparison of previous events, or from the
calculations of the heavens, but must be obtained from people
who have knowledge of the enemy's situation” --- Sun Tzu The
Use of Spies
Many experts believe that Toyota students have studied the ancient Chinese
philosopher Sun Tzu. More than 2500 years ago, he said, in his book, The Art of
War, “you must know the enemy and yourself.”
Although originally meant to offer wisdom for generals, this principle is relevant to
today’s global automotive wars. In fact, many would call this process global
intelligence: the gathering, analyzing, synthesizing and using information to make
better decisions and take better actions.

5. Companies in competitive situations need this capability. Companies need to be
engaged in routine intelligence work in those areas of the world and in technologies
that directly affect their interests and well-being. A company’s very survival,
requires that they know enough to adapt themselves to accommodate to changes in
their environments.
The more adaptive the company, the more it can easily change and be proactive. If a
company can produce learning processes to anticipate what will be changing in the
environment, it can plan, sometimes predict, and therefore be ready for or actually
lead any changes to the environment. It’s what the Department of Defense calls
quot;shaping.quot;
To do that, you need to understand your strengths and weaknesses and your
competitors, because wars are won by strategizing how to use your strengths against
your enemies’ weaknesses. This is true for marketplace wars, too.
The better and faster you learn about your world the less likely you will be surprised
or quot;paradigmed.quot;
'Many experts believe that Toyota students have studied the
ancient Chinese philosopher Sun Tzu. More than 2,500 years
ago, he said, in his book, The Art of War, quot;you must know your
enemy and yourself.quot;'
The MOSSAD of Israel and Toyota have both been studied extensively by the CIA.
Even the former KGB was benchmarking Toyota!
If your company doesn’t have an intelligence capability, they need to begin by
studying Toyota. Without needed intelligence, anyone, company or country is at
risk…it can mean the difference between winning and losing…the difference between
life and death. We all saw the effects of that on September 11.
###
Publisher’s note: When ‘Hyperintelligence” was released in July of 2002, it was the first public dissemination by
any medium of the events and data contained therein.
SUN TZU THE ART OF WAR: http://www.sonshi.com/learn.html
Courtesy of Sonshi.com
Report compiled by eMOTION! REPORTS.com staff and its consultants.
Fair use is hereby authorized for media, academic, government and
corporate entities for research and reportage purposes with appropriate
acknowledgement.
Copyright 2008, All Rights Reserved

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