the leadership in the new digital age carved by the fourth industrial revolution of io t and ai for...

© 2016 NTT DOCOMO, INC. All rights reserved.

Mick Etoh 2/10/2017

Leadership in the new digital age carved by

the fourth industrial revolution of IoT and AI

All night stars & Galaxy pictures are courtesy of Nori Yuasa except this sunset from Oakland(taken by Lynn Shi)


Head of Innovation Management Dept. SVP, NTT DOCOMO

Guet Professor, Cyber Media Center, Osaka Univ.

Former CEO of NTT DOCOMO Ventures

CEO of Mirai Translate, Inc.

Research Supervisor of CREST “AI” Areaof Japan Science & Technology Agency

Mick Etoh’s Affiliation


Part 1


Let’s define and identifyFourth Industrial Revolution.


AI


AI(Artificial Intelligence)


Symbol Grounding (Stevan Harnad,1990）


Medical Dignose

Cyber Security HR Management NL Agents

Active LearningRobotics

http://www.bing.com/images/search?q=facebook+bots&view=detailv2&&id=D41801F555335A37ED99BAE88972F09E144CC935&selectedIndex=0&ccid=Xp2400MH&simid=608008516575300727&thid=OIP.M5e9db8d3430702b3b63de6d9bc3d3c05o0


https://www.youtube.com/watch?v=24Hz9qjTDfw


https://www.youtube.com/watch?v=w7NgejZMSsA


Orbital Insight, Inc. Proprietary Information

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© 2016 NTT DOCOMO, INC. All rights reserved.Orbital Insight, Inc. Proprietary Information

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Uber


The Power of 1%


McKinsey Global Institute

NTT DOCOMO, INC. All rights reserved.The Internet of Things: Mapping the Value beyond the Hype (June 2015)

Peomising?


http://seekingalpha.com/article/3387605-assessing-ges-software-opportunity?page=2


IoT = ICT + OT (Operational Technology)

Revolutional Impact: ICT+OT＋AI


the fourth industrial revolution

ICT+OT+AI


Cloud


Hardware v.s. Software

��

Which is your perception about “Cloud?”


Simple Web Service

Speech Agent（Cloud-native）

Programmable, Copyable and Commodifiable

30

Data Analytics Platform（On premise-hybrid）


Mid 15th Century


Early 21st CenturyMid 15th Century


=

Power of Software


layers of the full stack

Server, Network, and Hosting Environment.Data ModelingBusiness LogicAPI layer / Action Layer / MVC

User InterfaceUser ExperienceUnderstanding what the customer and the business need.

Server, Network, and Hosting Environment.


Startups


Empathysmart risk taking

Seeing the big picture.Hunger to achieve.

Entrepreneurs 0->1


Empathysmart risk taking

Seeing the big picture.Hunger to achieve.

Entrepreneurs 0->1

MAXIMIZES STAFF UTILIZATION PURSUES THE FINANCIAL PERFORMANCE

Managers Elite 100->110


• Want to increase innovation?

• Lower the cost of failure.


AWS Re:Invent 2014

Keywords•Institution No vs. Individual Yes.

•Speed•Make organization “nimble”•Experimental test w/ lowering the cost


2015.7 米国ボストンにAI研究所を設置

2015.11 Prediction.io(Personalizedレコメンド)2015.12 Minhash(法人営業向けデータ収集AI)2016.4 Metamind(Marketing Automation)を買収

2015.1 Wit.ai(AI型音声対話)を買収

2014.1 DeepMind(DeepLearning技術)を買収先日のAlphaGOは、GoogleDeepMindによるもの。

2016.4 Orbeus(画像認識)を買収

2015.９ AI技術者を大量採用していることが記事に

2005年頃から、積極的にAI型レコメンドを採用

2015.7 Seed Scientific(データ分析)を買収。AI型Personalizationを強化

2015.7 米国ボストンにAI研究所を設置

日本企業も続々と米国に体制強化中

2015.11 シリコンバレーにAI研究所設置。TOPは元Google Research出身TOPは元Google Research出身

2016.1 シリコンバレーにAI研究所設置。　　　　　　出資金1200億円


$50K – $200Ke.g., Ron Conway

Keith RaboisReid Hoffman

$1M – $10MAccel Partners

Benchmark CapitalSequoia Capital

$100K – $500KSoftTech SV Angel

$10K – $100Ke.g.,：500 Startups

Y CombinatorPlug & Play

Startups and Financial Supporters


1B Valuation

Years from Birth

1 2 3 4 5 6

AirBnBSeries C(3Y8M)

EvernoteSeries D

$1B (6Y2M)

Series B

Series A Series A

Series A

Series B

Series C4Y7M

AirBnBDropbox

Evernote


Top Venture Capital


I


Hustler Hacker Designer

Innovator Trinity

I


Airbnb


– National Innovation Initiative(NII) (2004)

Innovation = invention x insight, leading to the creation of social and economic value


Two Type of Insights:

Technology Social & Biz Value


–Prof. Henry Chesbrough

Innovation = Invention + Business Model


Mark ZuckerbergMark ZuckerbergJack Dorsey Elon Musk

Garrett Camp

Travis Lalanick

Drew Houston Jeff Lawson Marc Andreessen

Empathy- and Greed-driven.


TechnologyInsights

Leadership

BusinessInsights

What we need is ‘Unicorn’.


Tech. Startup = Team with Research Expertise + Business Insight


Insights about the future → Monopoly position

Here are the seven questions Thiel writes “Every business must answer:"

1. Can you create breakthrough technology instead of incremental improvements?

2. Is now the right time to start your particular business?

3. Are you starting with a big share of a small market?

4. Do you have the right team?

5. Do you have a way to not just create but deliver your product?

6. Will your market position be defensible 10 and 20 years into the future?

7. Have you identified a unique opportunity that others don’t see?

Zero to One by Peter Thiel (Founder of PayPal)


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© 2016 NTT DOCOMO, INC. All rights reserved. NTT DOCOMO, INC. All rights reserved. 55

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Part 2


team building&

Culture

© 2016 NTT DOCOMO, INC. All rights reserved.www.bonkersworld.net/organizational-charts/

Organizational Charts (6/2011)


Micro Services


5?H

I9J K<H HL

MD9 INK <@&/38<!

O O O

Micro Services

© 2016 NTT DOCOMO, INC. All rights reserved.https://labs.spotify.com/2014/03/27/spotify-engineering-culture-part-1/

Spotify’s History of Development Style


Companies led by Captains or Majors

BrigateDivisionBeing Automous


Companies led by Captains or Majors

BrigateDivision Squad LeadersBeing Automous


Learn

Data

Nimble Investment Decision

Flexible Budget Raise

Advisors

Voice of Customers

Learn Investment Advisors build

Product

Idea

Budget Data Product

measure

Investment Decision

Flexible Budget

Investment

Budget

Advisors

Voice of

Advisors

Lean Startup Model


Importance of Team Building

• Most of predetermined plan may fail. Thus, nimble and well-focused team building must come first.

• The team must identify ROLES which make team well-focused and nimble.

• Big managers must trust the team, encourage them, and dedicate the power to them. DON’T be a control freak.


Innovation Ecosystem


50 : 5 : 1

US Annual financing to VC-backed companies(start-ups) = $57 and $72B in 2014 and 2015 while Japanese VC’s financing still remained about $1B(2015).


In Million of US$

Amount of VC investment

Amount of VC investment ratio to GDP

US France

UK Germany

Japan A

ustralia

Canada

Switzerland

Sweden

Israel

Belgium

South Korea

Norway

Holland

Spain

Denmark

Finland

Ireland

Austria

Italia

Portugal

Czech Republic

Greek

Estonia

Luxembourg

Slovakia

Poland

Hungary

VC Investments by Country


Innovation Ecosystem in EU

International Journal of Technology Management vol. 66, num. 2/3

key individuals are in blue, companies in red and financial firms in green.


Can Tokyo become Japan’s Silicon Valley?


No.


Startups in Tokyo has two options:

•Come to the Bay Area, or

•Stay in Tokyo but focus the unique product.

No.


Market VCEcosystem

Talent

Source:2016 Silicon Valley Index

Interlock of investment, talent, and market creates an unsurmountable barrier for others.


Market VCEcosystem

Talent



Market VCEcosystem

Talent




Market VCEcosystem

Talent


Interlock of investment, talent, and market creates

Ecosystem



Market VCEcosystem

Talent




Market VCEcosystem

Talent



© 2016 NTT DOCOMO, INC. All rights reserved.Source: SparkLabs Global Ventures

1. Funding & Exits2. Engineering Talent3. Active Mentoring4. Tech Infrastructure5. Startup Culture6. Legal & Policy Infrastructure7. Economic Foundation8. Government Policy & Program

Start-up/VC Ecosystem


6. Boston7. LA8. Beijing9. London10. Berlin

Source: SparkLabs Global Ventures

1. Silicon Valley

2. Stockholm

3. Tel Aviv

4. NY

5. Seoul

10 Hottest start-up Ecosystem


India China Japan Israel Bay AreaMarket size " ◎ " " ◎

Language " △ " △ ◎

Regulation/Market fairness △ △ △ △ "

Excellence or Uniqueness of

Talent" " △ " "

Life/Weather* " " △ △？ ◎

Overall △ △ ! △ ◎

*Don’t laugh. It DOES matter.

India and China receive large amounts of VC money due to their market size. However, there are only a few

companies in those countries that succeed globally.

Which countries are best for startups?Can Tokyo become Japan’s Silicon Valley?


Startup NationAdvantage

Strong relationship to Military and Defense Industry (AI, Communication, Security, Devices) Famous Startups

Waze, Viber, FiverrVC circumstances

20-30 VCs, 4000-5000 startups, 6B exit in 2015,Chinese-backed VCs(40%?)


London as Gateway

AdvantageLondon as Gateway to EU and US，Fin Tech demandsFamous StartupsShazam, Powa, SkyscannerVC circumstances>1000 Fin Tech companies with GBP20B size revenue3200-5400 start ups in UKTech City in London


The Nordic countries

AdvantageSocial Demands by Low Carbon, Medical Care, Digital Government. Famous StartupsSpotify, SupercellVC circumstances

Stockholm Innovation & Growth(STING), Governmental Agency for Innovation Systems - VINNOVA


Tokyo & JapanAdvantage

Animation, Media Contents(e.g., PockemonGo), Gaming, Bio & DevicesFamous StartupsGumi, Mercari, Cyberdyne, EuglenaVC circumstancesRising CVC money into AI, IoT, Robotics, etc. $1B (2015) -> $1.6B (2016)


Gaming/Net Media

Biotechnology, Device


Way Forward


Talent

Market VCEcosystem

Innovation Engine of Bay Area


Manufacturing

Market

Manufacturing

ProductionEcosystem

suggested by H.Tamura@Re:Public

Innovation Engine of China


Shenzhen Tianjinsuggested by H.Tamura@Re:Public


Society

Citizen Experimentssuggested by H.Tamura@Re:Public

Innovation Engine of the Nordic Countries


credit to H.Tamura@Re:Public

IKEA@Denmark


Hungry

Drought Resilience

Innovation Engine of Israel(Joking Version)


M&AIPO &Partnership

Tokyo Stock Exchange:the Mothers (Market of the high-growth and emerging stocks) section for high-growth startup companies. See also JASDAQ.

Market Capitalization > $10 Milion

average: $26.5M


Skill

Urban Infra-structure

QualityConsciousMarket

Innovation Engine of Tokyo

© 2016 NTT DOCOMO, INC. All rights reserved. • http://www.scootman.bike/

• https://39meister.jp/selection/selection005/Less spent on essentials, more for “luxuries” or “unique ones”

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http://www.scootman.bike/

http://www.blincam.co/


Take Aways

• The Fourth Industrial Revolution = ICT+OT+AI • Startups: Innovation Driver • Innovations = Invention + Business Model • Successful Startups = Tech Insights +

Business Insights + Leadership • Autonomous Organization • Unique Innovation Engines in Each Region

All night stars & Galaxy pictures are courtesy to Nori Yuasa