Despite phenomenal mobile telephone sales and a reputation for technological innovation, Japan lags behind many other countries in the application of IT technology. In part, this may be attributed to a telecommunications industry which lacks competition, with a conventional corporate culture; but this is insufficient to explain all the factors behind Japan'slackluster performance. In the following article, Shinji Fukukawa, CEO of the Dentsu Institute for Human Studies, describes the history of IT in Japan and makes an international comparison of the development of IT. He argues that unless Japan manages to catch-up quickly with those IT-proficient countries, it may be too late and she will be left behind. Nevertheless, the future is not bleak, and if vital policy measures are implemented; the markets deregulated; the corporate culture changed; and societal knowledge of IT improved; Japan may still succeed in the IT revolution.