This is the keynote presentation I gave at the Sparxup 2011 Awards in Jakarta, Indonesia, on October 21, 2011.

1. Asia‘s Internet:
Innova/on, Imita/on & Hyper‐Localiza/on
By Serkan Toto, PhD
Image source: Penn Olson TwiCer: @serkantoto

2. About me
• Tokyo‐based web, mobile and gaming
industry consultant
• Advisor for startups in Japan and the US
• Japan correspondent for TechCrunch.com
• Personal website: www.serkantoto.com

3. Agenda
I: Asia’s Internet!
II: Imita/on & Hyper‐Localiza/on!
III: Innova/on?

4. I: Asia‘s Internet
Stats, Stats, Stats

5. Asia: No. 1 Web Popula/on
‐> More than America and Europe combined.

6. Asia: Weak In Internet Penetra/on
‐> Worldwide, just Africa is behind Asia.
Source: ITU (Interna6onal Telecommunica6on Union)

7. Asia: Internet Traffic To Explode By 2015
‐> APAC to overtake North America in monthly web traffic in 2015.
Source: Cisco, Penn Olson

8. Asia: Mobile Is Big
‐> 10 of the top 20 mobile na/ons are in Asia.
Source: Wikipedia

9. II: Imita/on
Asian Clone Wars

10. Yes, We Love Imita/ng Stuff.
‐> Mostly ideas from the US.
Image source: Penn Olson

11. Too Many Imita/ons Are Bad, But...
‐> No ques/on, crude clones do suck.
Image source: hCp://www.flickr.com/photos/yamagatacamille/4267887034/

12. „Cloning“ Isn‘t Just Popular In Asia.
‐> It‘s a worldwide, very common phenomenon.

15. What Is Innova/on Anyway?
‐> “Innovare“ means to renew, to change in La/n.
To innovate is not to reform. Innova/on is the process of turning ideas
– Edmund Burke into manufacturable and marketable form.
– WaCs Humphrey
Innova/on dis/nguishes between a
leader and a follower. – Steve Jobs
Innova/on is the crea/on of the new or the re‐
arranging of the old in a new way. – Michael
Vance
The innova/on point is the pivotal moment
when talented and mo/vated people seek the
opportunity to act on their ideas and dreams.
‐ W. Arthur Porter I don’t f***ing want innova/on.
‐ Marc Pincus

16. Who can ask norma/ve ques/ons?
‐> There is a big grey area WRT innova/on vs. Imita/on.
• Who decides if imita/ng is good or bad?
• Isn’t hyper‐localiza/on a sub form of innova/on?
• Should Asian entrepreneurs wait for US and other
startups to enter the market? Why?
• Aren’t almost all big web players “clones” of others?
• My opinion: it depends on the quality of the service.
Most “clones” are bad, but not because they are clones
but because they are bad. If you execute, solve a
problem, have users and make money, awesome.

17. Some Asian Clones Make Big Bucks.

19. III: Innova/on
7 Areas Asia Pioneered

20. Insead‘s Global Innova/on Index 2011
‐> Asia is doing OK.

21. Example 1: Mobile Web (Japan/1999)
‐> NTT Docomo kickstarted the mobile web with i‐mode.

22. Example 2: Online Gaming (Korea/1996)
‐> Nexon‘s The Kingdom of the Winds is the first MMORPG.
Image source: Gamespot

23. Example 3: Virtual Goods (Korea/1999)
‐> Cyworld popularized virtual items in social networks.

24. Example 4: E‐Publishing (Japan/2006)
‐> Sony was first to market with the PRS 500 e‐reader.

25. Example 5: Broadband (SK, HK, JP/1998)
‐> 94% broadband penetra/on in Korea in 2000.
Image source: Penn Olson

26. Example 6: Internet Of Things (Japan/1994)
‐> Toyota subsidiary Denso Wave invented QR codes.
Image source: Asiajin

27. Example 7: Mobile Social Gaming (Japan/
2006)
‐> Japan‘s DeNA generates US$1.3 billion with social games.

28. What Can Be Done In Asia‘s Web Scene?
‐> Biggest problem: underdeveloped ecosystems in Asia.
• low number of QUALITY startups
• weak exit environment (IPOs, trade sales)
• few competent VCs firms/angel investors
• poli/cal and legal problems in some South
• low propensity of talents to work for startups, East Asian countries (IP protec/on,
• few people with an entrepreneurial mindset bureaucracy for startups, general poli/cal
• historically, culturally, and economically
instability)
diverse markets • massive “brain drain”
• much lower online spend than in North
• s/ll low Internet penetra/on
America or Europe • fragmented mobile landscape
• underdeveloped online and mobile payment
infrastructure (if any)

29. Selec/on Of Innova/ve Asian Startups

30. Thank you for listening!

31. Contact me
Site: hCp://www.serkantoto.com
TwiAer: hCp://twiCer.com/serkantoto
LinkedIn: hCp://linkedin.com/in/serkantoto
Facebook: hCp://www.facebook.com/stoto
Email: totoserkan AT gmail.com