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© 2016 NTT DOCOMO, INC. All rights reserved.
Mick Etoh

@mickbean, 10/4/2016

NTT DOCOMO
1
39works:

Pursuing Innovations in a Big Company
© 2016 NTT DOCOMO, INC. All rights reserved.
Why Double-Deck Structure?
2
Empathy
smart risk taking
Seeing the big picture.
Hunger to achieve.
Entrepreneurs 0->1
MAXIMIZES STAFF UTILIZATION
PURSUES THE FINANCIAL PERFORMANCE
Managers Elite 100->110
© 2016 NTT DOCOMO, INC. All rights reserved.
3
1st deck
2nd deck
Enterprise must have a double-deck structure.
© 2016 NTT DOCOMO, INC. All rights reserved.
4
Innovation Imperatives in a Large Co.
1. Leverage the Corporate Assets:

Human Resource, Delivery Channel, IPR, Big Data
Platform, Brand, etc.

2. Embody the Corporate Vision.

3. Remove a small innovative team from the
politics, policies, procedures and processes a
large company had built to support execution
of its core business.

4. Get a full commitment from CEO.

5. Take Regulatory Risks.
© 2016 NTT DOCOMO, INC. All rights reserved.
5
https://steveblank.com/2014/11/11/why-corporate-skunkworks-need-to-die/
Lockheed Skunk Works® led by
Kelly Johnson was responsible
for its Advanced Development
Projects – everything from the
P-80, the first U.S. jet fighter
plane, to the U-2 and A-12 spy
planes.
Skunk Works
© 2016 NTT DOCOMO, INC. All rights reserved.
6
What “Skunk Works” should look
like in 21st Century, Software Era?
© 2016 NTT DOCOMO, INC. All rights reserved.
7
• Want to increase
innovation? 

• Lower the cost of
failure.
© 2016 NTT DOCOMO, INC. All rights reserved.
AWS Re:Invent 2014
8
Keywords

• Institution No vs. Individual Yes.

• Speed

• Make organization “nimble”

• Experimental test w/ lowering
the cost
© 2016 NTT DOCOMO, INC. All rights reserved.
99
Launch a mixed small team of 

Entrepreneur and Intrapreneur. 

+

Establish an open innovation environment with
external resources.

+

Utilize the parent company asset.
© 2016 NTT DOCOMO, INC. All rights reserved.
Hustler
Hacker Designer
10
Innovator Trinity
I
Importance of Team Building
11
© 2016 NTT DOCOMO, INC. All rights reserved.
• 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 delicate the power to them. DON’T be a control
freak.
Being a member
12
© 2016 NTT DOCOMO, INC. All rights reserved.
• You must know your role with a written text.
• You must have love for the business domain, the team,
and the product.
• You must have a desire for perfection.
• You must be a customer of your product.
• You may not outsource your technical work.
• You must speak out to founders when they loose focus.
• You do love your role.
© 2016 NTT DOCOMO, INC. All Rights Reserved.
Learn
Data
Nimble
Investment
Decision
Flexible
Budget
Raise
Advisors
Voice of
Customers
build
Product
Idea
measure
13
Lean Startup Model
Agile  
Development
© 2016 NTT DOCOMO, INC. All rights reserved.
14
Communication Agents B2B Microservices Platform
Public infrastructure.
People/traffic  flow,  city  censor  data  
optimum  deployment,  detection/prediction    
local  government,  industry  collaboration
Facility operation
Regional public transportation
Public safety/security  
Disaster prevention
New transportation system
Drone control
Full-auto-transportation  
(self-drive/navigation/parking)
City planning
Sensor  data  
Images,  video,  numeric
Data
Hardware  and  software  
Network
Sensor
Image/video  
recognition,  prediction
Machine learning
Customer  information.  
History  and  favorite
CRM
Sharing  
Matching
Optimal design
Multimodal  
Processing  and  analysis
Statistical analysis
Cloud,  HPC  
API
Computing
AI  professional  
AI  system  design  
Consulting 
Human  resources
Cleansing  
Structured  
anonymous
Data accumulation
Business  Model  
Multi-domain  
Alliance
Business  collaboration
Information  
Management  
Credibility  assurance
Security
Dialogue,  
recommendation  
translation
Communication
vehicle  operation,  traffic  flow  data  
Traffic  control/management  
local  government,  industry  collaboration
Social  AI  platform
Our Asset: Social AI platform and its Assets
© 2016 NTT DOCOMO, INC. All rights reserved.
AgricultureMedical Care
Parking Platform Next-Gem. TransportationSmart City
Drone Control System
Digital Marketing
IoT Hardware 

Manufacturing
39 Meister
Communication for Elder-Care
15
39Works Products
Coming Soon
© 2016 NTT DOCOMO, INC. All rights reserved.
16
https://youtu.be/g-VghIDAHBg
© 2016 NTT DOCOMO, INC. All Rights Reserved.
Iwaya
Manifacturing
docomo
Marketing  
Product  
Bitech  
Electronics
Production  
Management
Moore  Doll
IoT  
Engineering
17
© 2016 NTT DOCOMO, INC. All rights reserved.
18https://youtu.be/n_t14Nb1qfk
© 2016 NTT DOCOMO, INC. All Rights Reserved. 19
Smart  Parking  System
=
© 2016 NTT DOCOMO, INC. All Rights Reserved. 20
Small Team of 10 from DOCOMO, xtone, Yukai Engineering
© 2016 NTT DOCOMO, INC. All rights reserved.
21
Way Forward
© 2016 NTT DOCOMO, INC. All rights reserved.
22
Innovation Engine of Bay Area
Talent
Market
VC

Ecosystem
© 2016 NTT DOCOMO, INC. All rights reserved.
23
Innovation Engine of China
Manufacturing
Market
Production

Ecosystem
suggested by H.Tamura@Re:Public
© 2016 NTT DOCOMO, INC. All rights reserved.
24
Shenzhen Tianjin
suggested by H.Tamura@Re:Public
© 2016 NTT DOCOMO, INC. All rights reserved.
25
Innovation Engine of the Nordic Countries
Society
Citizen Experiments
suggested by H.Tamura@Re:Public
© 2016 NTT DOCOMO, INC. All rights reserved.
26
credit to H.Tamura@Re:Public
IKEA@Denmark
© 2016 NTT DOCOMO, INC. All rights reserved.
27
A Possible Innovation Engine of Tokyo
Partnership

without M&A
Steady

Business Model
Engineering
© 2016 NTT DOCOMO, INC. All rights reserved.
28
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
© 2016 NTT DOCOMO, INC. All rights reserved.
29
Large Company = Planning Conscious

Startup = Planning&Fulfillment

Cloud Native & Design Thinking

1. BizDevOps with Hands-on Development

2. Asset Embodiment with APIs

3. Team Building with Full-Stack Engineers
My Persistent Ideas

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Pursuing Innovation in Large Companies

  • 1. © 2016 NTT DOCOMO, INC. All rights reserved. Mick Etoh @mickbean, 10/4/2016 NTT DOCOMO 1 39works: Pursuing Innovations in a Big Company
  • 2. © 2016 NTT DOCOMO, INC. All rights reserved. Why Double-Deck Structure? 2 Empathy smart risk taking Seeing the big picture. Hunger to achieve. Entrepreneurs 0->1 MAXIMIZES STAFF UTILIZATION PURSUES THE FINANCIAL PERFORMANCE Managers Elite 100->110
  • 3. © 2016 NTT DOCOMO, INC. All rights reserved. 3 1st deck 2nd deck Enterprise must have a double-deck structure.
  • 4. © 2016 NTT DOCOMO, INC. All rights reserved. 4 Innovation Imperatives in a Large Co. 1. Leverage the Corporate Assets: Human Resource, Delivery Channel, IPR, Big Data Platform, Brand, etc. 2. Embody the Corporate Vision. 3. Remove a small innovative team from the politics, policies, procedures and processes a large company had built to support execution of its core business. 4. Get a full commitment from CEO. 5. Take Regulatory Risks.
  • 5. © 2016 NTT DOCOMO, INC. All rights reserved. 5 https://steveblank.com/2014/11/11/why-corporate-skunkworks-need-to-die/ Lockheed Skunk Works® led by Kelly Johnson was responsible for its Advanced Development Projects – everything from the P-80, the first U.S. jet fighter plane, to the U-2 and A-12 spy planes. Skunk Works
  • 6. © 2016 NTT DOCOMO, INC. All rights reserved. 6 What “Skunk Works” should look like in 21st Century, Software Era?
  • 7. © 2016 NTT DOCOMO, INC. All rights reserved. 7 • Want to increase innovation? • Lower the cost of failure.
  • 8. © 2016 NTT DOCOMO, INC. All rights reserved. AWS Re:Invent 2014 8 Keywords • Institution No vs. Individual Yes. • Speed • Make organization “nimble” • Experimental test w/ lowering the cost
  • 9. © 2016 NTT DOCOMO, INC. All rights reserved. 99 Launch a mixed small team of Entrepreneur and Intrapreneur. + Establish an open innovation environment with external resources. + Utilize the parent company asset.
  • 10. © 2016 NTT DOCOMO, INC. All rights reserved. Hustler Hacker Designer 10 Innovator Trinity I
  • 11. Importance of Team Building 11 © 2016 NTT DOCOMO, INC. All rights reserved. • 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 delicate the power to them. DON’T be a control freak.
  • 12. Being a member 12 © 2016 NTT DOCOMO, INC. All rights reserved. • You must know your role with a written text. • You must have love for the business domain, the team, and the product. • You must have a desire for perfection. • You must be a customer of your product. • You may not outsource your technical work. • You must speak out to founders when they loose focus. • You do love your role.
  • 13. © 2016 NTT DOCOMO, INC. All Rights Reserved. Learn Data Nimble Investment Decision Flexible Budget Raise Advisors Voice of Customers build Product Idea measure 13 Lean Startup Model Agile   Development
  • 14. © 2016 NTT DOCOMO, INC. All rights reserved. 14 Communication Agents B2B Microservices Platform Public infrastructure. People/traffic  flow,  city  censor  data   optimum  deployment,  detection/prediction     local  government,  industry  collaboration Facility operation Regional public transportation Public safety/security   Disaster prevention New transportation system Drone control Full-auto-transportation   (self-drive/navigation/parking) City planning Sensor  data   Images,  video,  numeric Data Hardware  and  software   Network Sensor Image/video   recognition,  prediction Machine learning Customer  information.   History  and  favorite CRM Sharing   Matching Optimal design Multimodal   Processing  and  analysis Statistical analysis Cloud,  HPC   API Computing AI  professional   AI  system  design   Consulting  Human  resources Cleansing   Structured   anonymous Data accumulation Business  Model   Multi-domain   Alliance Business  collaboration Information   Management   Credibility  assurance Security Dialogue,   recommendation   translation Communication vehicle  operation,  traffic  flow  data   Traffic  control/management   local  government,  industry  collaboration Social  AI  platform Our Asset: Social AI platform and its Assets
  • 15. © 2016 NTT DOCOMO, INC. All rights reserved. AgricultureMedical Care Parking Platform Next-Gem. TransportationSmart City Drone Control System Digital Marketing IoT Hardware Manufacturing 39 Meister Communication for Elder-Care 15 39Works Products Coming Soon
  • 16. © 2016 NTT DOCOMO, INC. All rights reserved. 16 https://youtu.be/g-VghIDAHBg
  • 17. © 2016 NTT DOCOMO, INC. All Rights Reserved. Iwaya Manifacturing docomo Marketing   Product   Bitech   Electronics Production   Management Moore  Doll IoT   Engineering 17
  • 18. © 2016 NTT DOCOMO, INC. All rights reserved. 18https://youtu.be/n_t14Nb1qfk
  • 19. © 2016 NTT DOCOMO, INC. All Rights Reserved. 19 Smart  Parking  System =
  • 20. © 2016 NTT DOCOMO, INC. All Rights Reserved. 20 Small Team of 10 from DOCOMO, xtone, Yukai Engineering
  • 21. © 2016 NTT DOCOMO, INC. All rights reserved. 21 Way Forward
  • 22. © 2016 NTT DOCOMO, INC. All rights reserved. 22 Innovation Engine of Bay Area Talent Market VC Ecosystem
  • 23. © 2016 NTT DOCOMO, INC. All rights reserved. 23 Innovation Engine of China Manufacturing Market Production Ecosystem suggested by H.Tamura@Re:Public
  • 24. © 2016 NTT DOCOMO, INC. All rights reserved. 24 Shenzhen Tianjin suggested by H.Tamura@Re:Public
  • 25. © 2016 NTT DOCOMO, INC. All rights reserved. 25 Innovation Engine of the Nordic Countries Society Citizen Experiments suggested by H.Tamura@Re:Public
  • 26. © 2016 NTT DOCOMO, INC. All rights reserved. 26 credit to H.Tamura@Re:Public IKEA@Denmark
  • 27. © 2016 NTT DOCOMO, INC. All rights reserved. 27 A Possible Innovation Engine of Tokyo Partnership without M&A Steady Business Model Engineering
  • 28. © 2016 NTT DOCOMO, INC. All rights reserved. 28 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
  • 29. © 2016 NTT DOCOMO, INC. All rights reserved. 29 Large Company = Planning Conscious Startup = Planning&Fulfillment Cloud Native & Design Thinking 1. BizDevOps with Hands-on Development 2. Asset Embodiment with APIs 3. Team Building with Full-Stack Engineers My Persistent Ideas