nec's new strategy for inbound/outbound open innovation

1 © NEC Corporation 2019

NEC's New Strategy for

Inbound/Outbound Open Innovation

May 7, 2019

Motoo Nishihara

Executive Vice President and CTO

NEC Corporation


The First Joint Venturebetween Japan and US

1899Establishment


7 Themes forSocial Value Creation

SDGs

NEC’s Social Value Creation

Sustainable Earth

Safer Cities & Public Services

Lifeline Infrastructure

Communication

IndustryEco-System

Work Style

Quality of Life


Creating Societiesthat are Safe, Secure, Efficient, and Equal

NEC’s Social Value Creation


4.2 Billion → 6.7Billion

2018 2050

1.6 times

The increased movement of people and things emphasizes the need for maintaining peace and order and ensuring the safety and security of infrastructures.

From: United Nations Population Forecast (2018)

Increase in urban populationSocial Problems


PublicSafety

Criminal fingerprint matching

Immigration control

Urban surveillance

DigitalGovernment

Prevention of identity theft

SmartTransportation

Efficiency & EqualitySafety & Security

Voice

Finger vein

Ear acoustics

Face

Iris

Fingerprint/palmprint

Watch list face recognition

Improvement of citizen services

Detection of fraud

Police, Public safety, Judiciary

CitiesAirports

Educationalinstitutions

Governmentagencies

HealthcarePublic housing

Buses

Transport IC cards

Trains･･･National ID

Driver’s license

Safe and secure cities


Tigre

Tigre, Argentina

7

80% reduction in vehicle theftBased on 2008 to 2013 comparison, according to research by Tigre city government

City × Digital

Tigre, ArgentinaCaseStudy


Wholesale and retail trade

Living-related, personal, and amusement services

Transport and postal services

Medical, health care, and welfare

Real estate, goods rental and leasing

Manufacturing

Academic research, professional and technical services

Information and communications

Construction

Finance, insurance

0 10 20 30 40 50 60 70

（Points）

D.I. for determining part-time labor shortage by industry

Hotel and food services

Ministry of Health, Labour and Welfare “Survey on Labour Economy Trends”（Nov. 2016 Summary）

Labor shortage Restaurant & retailSocial Problems


More comfortable and convenient

Focus more oncustomer relations

OperationalExcellence

CustomerExperience

Labor-less type store

Smart purchase Provide safe and secure food

Efficient Store operation Reduce workload


NEC Contributions for Social Value Creation

Santander, SpainEfficient city operation

SingaporeContribution to the innovative safer city concept (SSIPO)

Tigre, ArgentinaReal time city surveillance

Retail Store in TaiwanNew shopping experiences while streamlining store operations

IndiaContribution to economic development via “Make in India”

Kagome in PortugalContribution to Low Input/High Output crop yield

Introduction of NEC Laboratories


NEC Global R&D Network

NEC Labs. AmericaDevelopment of cutting-edge core technologies

NEC Labs. ChinaDevelopment of core technologies in AI and NW

NEC Labs. EuropeR&D through EU projects and standardization activities

NEC Labs. SingaporeCo-creation of innovative solutions with customers and partners, mainly for developed countries.

Central Research Lab(Japan)

・Value Co-creation Center・Data Science Research Lab・Biometrics Research Lab・Security Research Lab・System Platform Research Lab

NEC Labs. IndiaCreate core technologies to address the challenges of emerging countries

Israel Research CenterPromote marketing-type research.

http://www.zoomap.co.il/search.asp?citiesText=%D7%94%D7%A8%D7%A6%D7%9C%D7%99%D7%94&streetsText=%D7%9E%D7%A9%D7%9B%D7%99%D7%AA&buildText=2


PrescriptionAnalysisVisualization

RealWorld

SocialValue

Computing

Networking

Security

AI (Data Science)


NEC’s Cutting-edge AI Technology Suites “NEC the WISE”

Visualization

Digitalization, Improvementof data quality

Learning basedsuper-resolution

Multi-modalimage fusion

Analysis

Understandingof meaning &

intent

Analysis withinterpretation

High-precisionanalysis

Invariant analysis

Heterogeneousmixture learning

RAPID machine learning

Textual entailment recognition

Profiling across spatio-temporal data

Crowd behavior analysis

Customer profile estimation

Prescription

Planning & optimization

Autonomous andadaptive control

Predictive robustoptimizationframework

Acoustic situation awareness

Automated Security Intelligence

Predictive analyticsautomation technology

Image clarification

Recognition &identification

usingthe five senses

Face recognition

Speech, emotionrecognition

Object fingerprintrecognition

Optical vibration sensing

Ear AcousticsAuthentication

No.1※1

Only1

Only1

Only1

Only1

Only1

Only1

Only1

Only1

Only1

Only1

Only1

Only1

Only1Fingerprintrecognition

Only1

No.1※2

No.1※4

No.1※5

Micro-size IDas a dot

Only1

*1：Ranked 1st four consecutive times in task assessment sponsored by NIST, *2：Ranked 1st five times in task assessment sponsored by NIST, *3：Ranked 1st in task assessment sponsored by NIST（2018）*4：Ranked 1st in task assessment sponsored by NIST（2012）, *5：Ranked 1st in task assessment sponsored by IEEE AASP Challenge DCASE2016

Log pattern analysisOnly1

Irisrecognition

No.1※3

Discovery of rare critical events

Only1

Graph-basedrelation learning


Security• High visibility at top-level conferences

in secure computation area (e.g. CCS, Eurocrypt, S&P)

Achievements of Conference Presentation

The last 3 years Whole period

1 Microsoft Microsoft

2 Google IBM

3 IBM Google

4 DeepMind Yahoo

5 Yahoo NEC

6 Facebook DeepMind

7 Baidu Facebook

8 NEC AT&T

9 Adobe NTT

10 Amazon Baidu

※1 NIPS、ICML、KDD、ECML-PKDD、ICDM※2 ICML、CVPR、IJCAI、KDD、ECCV、ICCV、NeurIPS (NIPS)、AAAI

Artificial Intelligence• Ranked 5th place at the benchmark of

academic paper since 2000• Numbers of papers were accepted by

top-level conferences. (e.g. KDD)

Network• Number of papers were accepted by

top-level conferences. (e.g. OFC)


Ting WangManmohan Chandraker

NetworkingDevelopment of the world’s highest level optical communication network using AI

Hitoshi Imaoka

Visualization

* No.1 at the NIST(National Institute of Standards and Technology) competition for 4 consecutive years

Hans Peter Graf Development of “Torch”, a worldwide used framework for deep learning, and its product version.

Mathias Niepert

Development of AI technology that logically infers and creates predictions from incomplete information.

Ghassan Karame Kazue Sako

Security Development of the high-speed, secure and scalable blockchain technology.

• Steering Committee of IACR Real World Cryptography (2018-)• President of the Japan Society for Industrial and Applied Mathematics (2017-2018)

Former NEC researchers in the various fields.

Thai Jaw Shen,

Yasunobu NakamuraFirst demonstrator of electrical coherent control of a qubit. One of quantum computing’s basic requirements.

Vladimir N. VapnikThe co-inventor of the support-vector machine method

Kai YuHorizon Robotics, Founder & CEO

Yidong HuangProfessor, Chair of the Department of Electronic Engineering, Tsinghua University.

Analysis

Leon BottouWin Test of Time award at NeurIPS 2018

Ronan Collobert, Jason WestonWin Test of Time Award at ICML 2018

Yann LeCunWin ACM A.M. Turing Award 2018

Development of the world’s No.1* Face recognition technology

Development of Video recognition and scene understanding under various conditions.

World top-level Researchers

NEC’s New Strategy of Open Innovation


Startup

invest

Investors

launch business

EntrepreneursNEC

Inbound

“Inbound” Open Innovation

Monetization of laboratory technologies used to focus primarily on product development within the company. Although Japanese companies are actively investing startup businesses in the Silicon Valley ecosystem,

most are focused on inbound collaboration.

Accelerators

participate in planning

Japanesecompanies

CVC etc.

Silicon Valley

Startup


RetailAcademia

NEC’s Inbound Open Innovation Scheme

One to Many

Customer Segment

Value

First customers Second or later customers

ExpandingValue

Immigration control

Fast travel

Counter-terrorism

Facility monitoring

Safety

Startups

VC/Startup

BusinessUnit

StartupRelationwith CVC

(CTO Office)

http://www.google.co.jp/url?sa=i&rct=j&q=NTU&source=images&cd=&cad=rja&docid=stBF90KUgKU0FM&tbnid=v-5XnXAX5et8jM:&ved=0CAUQjRw&url=http://www.ntu.edu.sg/home/d.campolo/&ei=dBICUu3IAYfirAepuIH4AQ&bvm=bv.50310824,d.bmk&psig=AFQjCNHkQG1Ulmft5BDJuZffVVaCbdXIkw&ust=1375953900209746

http://www.google.co.jp/url?sa=i&rct=j&q=NUS&source=images&cd=&cad=rja&docid=oRE33Mhj5Y-6IM&tbnid=MtUEBinPA0sdVM:&ved=0CAUQjRw&url=http://www.pharmacy.nus.edu.sg/events/drugdelivery2011/&ei=KhICUoeHPJDIrQfkzIDoAw&bvm=bv.50310824,d.bmk&psig=AFQjCNHRdpsltPHUz4xeN58YXHxr5m37LA&ust=1375953832987056


“Outbound” Open Innovation


Problems in Large Companies

Where are talented people?

How can we accelerate commercialization?

Startups Large Companies

Startups Large Companies

Research Commercialization Research Commercialization


BusinessOpportunity

Cutting-edge Technologies

NEC

AI Network Security

NEC’s New Strategy : R&D Ecosystem

Field of R&D For Real-World

UsecaseMarket Needs

BusinessKnowledge

TechnologiesTalents

NewStartupSpin Out

Spin In

Customers BusinessPerson

Partners/Startups

Academia ExternalFund


Promptly developing business

from the white-box type AI technologies

Accelerating business development by capitalizing on external resources

A global first

Tapping new talents

© 2018 dotData, Inc.

North America

dotData as a strategic carve-out from NEC

Maximize monetization speed of cutting-edge core technologiesOUTSIDE NEC as an independent company

dotData, Inc.

VC

Capital, Accelerator,Credibility in Market

Japan

NEC

IP, SW, People, Capital

Capital Gain, Reselling Right


BusinessOpportunity

Cutting-edge Technologies

NEC

AI Network Security

Integration of Inbound and Outbound

Field of R&D For Real-World

UsecaseMarket Needs

BusinessKnowledge

TechnologiesTalents

NewStartupSpin Out

Spin In

Customers BusinessPerson

Partners/Startups

Academia ExternalFund


Silicon Valley

Startup

invest

Investors

EIR

Entrepreneurs

participate in planning

Accelerators

NEC XNEC Outbound

NEC X has been launched within the Silicon Valley ecosystem to enable rapid business deployment based on cutting-edge laboratory technology seeds (outbound collaboration)

NEC X’s Prospective Initiatives


Shigeto Ihara, CEO

Menlo Park, CA

Accelerating new business development with cutting-edge technologies

We welcome

Business Leaders and VCs


Open Our Cutting-Edge AI Engines

NEC-X provides opportunities for potential users and solution partnersto try-out our cutting-edge and brand-new technologies.

Early adoption of advanced technologies

(α-level)

20+ AI technologies New cutting-edge technologies

We welcome

Startups and Partners


Vector Engine Data Acceleration Center

Remote access to NEC’snew AI Platform

100x faster with Apache

Spark-compatible APIs

https://money.cnn.com/news/newsfeeds/articles/globenewswire/7588368.htm

We welcome

Data Scientists

Recently opened in silicon valley


Let’s Create the Future Together


Safety, Security, Efficiency, Equality

To pursue “For all people, an abundant society,”we are strengthening activities towards respect

for privacy and human rights

Towards the provision of socially accepted AI

“NEC Group AI and Human Rights Principles”Published in April 2019

nec's new strategy for inbound/outbound open innovation

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