Toward Acceleration of IoT

June, 2016 Ministry of Economy, Trade and Industry

Vison and Action Strategy for the era of IoT, Big data, and AI “Future Vision of Innovative Industrial Structures" for 2030 has been developed since

Aug 2015 in a consideration of the Fourth Industrial Revolution” with the advent of IoT, big data, and AI. An interim report on the vision was published in April this year.

At the same time, strategic platforms have been established for regulation reform and standardization in order to create advanced business model utilizing IoT, AI, Big data and robotics – ITAC, RRI, AIST.

Future Vision of Innovative Industrial Structure

IoT Acceleration Consortium (ITAC)

A framework between industry, academia and govt. to promote

utilization of IoT

cooperation

Share the Vision

1

Robot Revolution Initiative (RRI)

A framework to put robot revolution in various places from the

manufacturing site to everyday life

Artificial Intelligence Research Center (AIST)

Gathered ace class AI researchers from home and abroad

TECHNOLOGY BREAKTHROUGH IoT× Big Data × AI × Robots → possibly causing dramatic changes of industrial and employment structure

THE 4TH INDUSTRIAL REVOLUTION Tech breakthrough above will make those below possible

①Mass Customization ②Sharing Economy （e.g. Uber, Airbnb） ③Support /Replacement of Human Functions (e.g. Autonomous driving, Drones distribution) ④New Services Creation (Goods × Service), Increasing Efficiency

TECHNOLOGY (COMMON PLATFORM TECH X INDUSTRIAL CORE TECH) ×DATA

Overview of Future Vision of Innovative Industrial Structures 1 Provisional Summary of Interim Report（27th Apr.)

Common platform technology (AI, IoT, robotics etc.)

Financial technology Robo-Advisor (asset management), Credit by trading data, etc.

Energy demand response, monitoring services, etc.

Technology Data Various goods and services

Genome editing

Early detection of abnormality, enhancement of insurance and credit rating etc.

Drug discovery technology

Bioinformatics

Energy load device control technology

Production control technology

Transactions, financial markets

Health and medical data

Biological data

Customer data

Accidents and near-miss data

Personalized medicines, Personalized cosmetic and beauty services etc. New drug discovery, new species crop, advanced materials manufacturing, bio-energy, etc.

2

IMPORTANCE OF UTILIZING “REAL DATA”

1st stage Virtual Data

2nd stage Real Data

Data from the cyber world (e.g. web search, SNS) Dominated by foreign IT companies

Data from the real (physical) world (e.g. health, driving, operation) Potential space for Japanese companies as platformers

[Edge]

Data linkage

(1) Purchasing

(2) Distribution

Platform

Data linkage

Competitive data

Cooperative data

Production data

e.g. Cooperative domains in manufacturing

[Cloud] [Manufacturing System] Create advanced factory systems at more than 50 sites across Japan by 2020 [Autonomous Driving Maps] Unify specifications of auto-driving maps towards standardization, and possibly implement the practical application of those maps as soon as 2018 [Health & Medical] Demonstrate to collect and analyze the receipts, screening and health data for serving personalized health services this fiscal year

3

Overview of Future Vision of Innovative Industrial Structures 2 Provisional Summary of Interim Report（27th Apr.)

(3) Sales

It is crucial to - clarify competitive or cooperative domains regarding “real data” and - form platforms that share and utilize “real data” cross boundaries btw offices, companies

Structure of IoT Acceleration Consortium

• In response to the era of IoT／Big Data／AI, private sector lead organization ”IoT Acceleration Consortium” has been established in order to promote utilization of IoT in industry, government and academia

Cahirperson : Mr. Jun Murai Dean/Professor, Faculty of Environment and Information Studies, Keio University Participating Companies: 2,090 (as of Jun, 2016)

IoT Acceleration Consortium

Steering Committee

Tech. Dev. WG （Smart IoT Acceleration Forum）

IoT Acceleration Lab Specific WG

• IoT-related techs development

• especially a network

• Creation of advanced IoT project • Improvement of biz environment

• Security WG • Data

Distribution WG Support Committee

Chairperson: Kazuhiko Toyama Representative Director and CEO,

Industrial Growth Platform, Inc.

Select projects preferentially in accordance with the following elements

Member companies in Support Committee

Accenture plc / Amazon Data Services Japan K.K. / Apple Inc. / Artificial Intelligence Research Center / Bosch Corporation / Cisco Systems G.K. / , Future Architect, Inc. / General Electric / Google Inc. / Hitach, Ltd./.IBM Japa, Ltd. / Intel K.K. / Japan Venture Capital Association / KDDI CORPORATION / Keio University / Microsoft Japan Co., Ltd. / Mistletoe, Inc. / Netyear Group Corp / salesforce.com, Inc. / SAP Asia Pacific Japan / Siemens K.K. / The Bank of Tokyo-Mitsubishi UFJ, Ltd. / The University of Tokyo (alphabetical order)

4

Regulatory Support

IoT Lab Selection (IoT Project Selection Meeting)

→Supporting Short-term individual projects

IoT Lab Demonstration (Test-bed Demonstration)

IoT Lab Connection

（Matching Event）

→Matching event facilitated by the govt. for enterprises, associations and local municipality Short term

5

• IoT Acceleration Lab is a platform between the government, Academia and industry to create new IoT projects

• IoT A-Lab supports 1) Mid and long-term thematic projects as well as 2) Short-term individual projects, providing financial support, regulatory support and business matching support

Overview of IoT Acceleration Lab

Mid to Long

term

Financial Support Business Matching Support

→Supporting Mid and Long-term thematic projects

Manufacturing（※）

Public Infra. Construction Mobility Medical

Health Smart House Energy

Tourism Agriculture Logistics Administration

Industrial Safety

Educational Services

Financial （※※）

※Work closely with Robot Revolution initiative ※※Work closely with Study Group on FinTech

Scope

IoT Lab Demonstration（Test-bed）

→ medium and long-term demonstration, involving multiple companies ・Feasibility study investigation

・Test-bed demonstration

Regulatory reform etc.

• IoT Lab Demonstration is a scheme for medium and long-term thematic projects to deregulate or create new standards

• Turne the cycle of ①theme recruitment, ②FS investigation, ③(if necessary) business matching, ④full-scale demonstration, ⑤evaluation and follow-up, to promote generation of new projects and improvement of the business environment

⑤ Evaluation and

Follow up

① Call for themes

• Excavation of potential needs

• Creation of demonstration architecture

• Classification of competitive and cooperative domains

③ Solution matching

④ Test-bed

demonstration

IoT Lab Demonstration（test-bed demonstration）

6

② Feasibility study

investigation

＜Demonstration Image＞

6

Supply Chain （Infrastructure, Manufacturing,

Retail, Distribution, Mobility) Medical Healthcare

Others (Public ・Ag etc.)

Services （Sightseeing,

Fin-tech, Edu-tech) Town/Home

Sensing ↓

Data ↓

Analytics ↓

Actuation

Gathering &

Utilizing D

ata

AR

EA B

ASIC A

RCH

ITECTUR

E A

CHIEVEM

ENT

Rule R

eform

Standarizatin

Common Data PF

R&

D for related IoT Tech

• Objective of IoT Lab Demonstration is to clarify competitive and cooperative domains, and form platforms (PFs) that share and utilize data across boundaries between offices, companies

• Outcomes are shared at IoT A-Lab to facilitate collaboration between demonstrations on common basic techs and structure.

IoT Lab Demonstration 1 Overview of IoT Test-bed

Sensing ↓

Data ↓

Analytics ↓

Actuation

Sensing ↓

Data ↓

Analytics ↓

Actuation

Sensing ↓

Data ↓

Analytics ↓

Actuation

Sensing ↓

Data ↓

Analytics ↓

Actuation

Sensing ↓

Data ↓

Analytics ↓

Actuation

Common Data PF

Common Data PF

Common Data PF

Common Data PF

Common Data PF

7

• Demonstrate building mechanisms aiming for general optimization by linking the information between machines, plants and companies

Manufacturing

• Demonstrate the efficiency and safety of automatic piloting and distribution, using drones etc.

Supply Chain

Distribution

• Promoteindustrial safety measures centering around prevention and conservation approaches which can predict accidents through data analysis, by applying massive data of the plant

• Demonstrate the effects of enhancing the efficiency and optimizing social infrastructure such as waterworks, using information obtained by IoT

Infrastructure Industrial

Safety

IoT Lab Demonstration 2

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• Demonstrate the various smart-home services from the aspects of safety and facilitating connection in home network

Town/Home

Medical/Healthcare • Correct reception information, health information, health information

accumulated by individuals in wearables terminals, etc. to construct infrastructures for integrated analysis, to demonstrate methods of acquiring information on changes in individual behavior, and consent to use individual information

Services • Construct and demonstrate a linking system which allows various businesses to

participate and provide high quality services, by sharing and linking overseas visitors’ stay information to enhance services and payment environment

IoT Lab Demonstration 3

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Framework of IoT Lab Selection

[ Target Groups and Items Evaluated ] Target groups

Items Evaluated

All advanced projects using IoT technologies

We consider 4 points in evaluation

1. Growth 2. Openness 3. Sociality 4. Feasibility of realization

[ Support details ]

1 Financial support 2 Continuous, one –on-one support

from mentors 3 Support related to regulatory reform and standardization

IoT Lab Selection 1 Supporting short term individual projects

[ Support agencies]

• IoT Lab Selection is a short-term individual project support scheme, scouting and selecting advanced IoT projects, to which providing 1)financing (the govt., banking institutions and VCs), 2)mentoring and 3) deregulation and standardization

• The 1st IoT lab Selection was conducted in Feb 2016, selected 16 finalists out of 252 applicants.

• The 2nd will be held in July.

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IoT Lab Selection 2 List of 16 finalists at #1 IoT Lab Selection

Applicant Name of Project Supports financing mentor Deregulation

★Grand Prize★ Liquid Marketing, Inc.

Personal authentication of foreign tourists by fingerprints (payment・verification)

NEDO （max. 20 million yen） －

Clear Through the System to Remove

Gray Zone Areas （4/8） ★2nd Prize★ aba Inc.

Excretion detection sheet “Lifi” to decrease the burden of nursing ○ ○ －

★2nd Prize★ Routrek Networks, Inc.

Agricultural system to optimize a control of water and fertilizer for Drip irrigation

IPA （max. 30 million yen） ○ －

★Jury Grand Prize★ EverySense,Inc.

Commercialization of data exchange market in Japan and the US ○ ○ △

OMRON Corporation Architect the trading system of real time sensor data distribution － ○ △

ZEROBILLBANK LTD Convert individual idea and action to visible value(coin) utilizing blockchain ○ ○ △

Hottolink,Inc. To be a global player of SNS big data from Japan ○ － －

Strobo Inc. Smart chair to visualize body condition by pressure sensors ○ ○ －

Bsize Inc. Realize new communication business for IoT ○ ○ △

AFRO Co., Ltd. Business optimization of taxi by a smartphone ○ －

Clear Through the System to Remove

Gray Zone Areas （4/29）

Social Impact Research Co.,Ltd.

Automated system that can be used by anyone to give an asset management advise which achieve both profits and sociality

NEDO （max. 20 million yen） ○ －

Graduate School of Information Science and Technology, Hokkaido University

Realize individual medical services utilizing health data ○ － ○

Cerevo Inc. Realize inexpensive home security － － ○

Sony Corporation Realize a display device corresponds to the IoT era － －

Clear Through the System of Special

Arrangements for Corporate Field Test（4/8）

Wireless Power Transfer for Consortium Practical Applications(WiPoT)

Practical demonstration of long-distance microwave radio transmission system － － ○

Arcadia Systems Corporation Individual exercise program in accordance with the physical status

IPA （max. 30 million yen） － －

△・・・After the business model has been clarified 11

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IoT Lab Connection Business Matching Event

① Business Matching (1:1 Matching)

1ST CONNECTION MATCHING Date: January 28, 2016 Participants：８１４ people Participated municipalities： Sapporo, Akita-pref., Aizuwakamatsu, Shibuya, Yokohama, Ueda, Mie-pref., Kyoto, Kobe, Kurashiki, Shimane-pref., Yamaguchi-pref.,Fukuoka, Kitakyushu

１９０ participants ５５０ matching sessions

② Presentation Matching (1:N Matching)

２８ enterprises presented ４００participants

③ Municipalities Booth Matching (Municipalities)

１４ municipalities ３２０ enterprises

• IoT Lab Connection is a business matching scheme between companies, associations and municipalities for IoT business creation facilitated by the govt.

• The 1st connection matching was held in Jan 2016 with the theme of ①Tourism and ②manufacturing（smart factory）.

• The 2nd matching theme in July will be healthcare & sports, and infrastructure. • The 3rd matching theme in Oct will be smart home and mobility.

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International Cooperation Image

Israeli embassy

Taiwan Business

Cooperation

Standard Form Cooperation

Test-bed Cooperation

Information Cooperation

IoT Acceleration Consortium (ITAC), through test-bed demonstration projects, is clarifying competitive/cooperative domains and make “platform” to share and utilize real data.

To globalize Japanese IoT market, ITAC will seek to collaborate with global institutions on test-bed demonstration as well as create IoT ecosystem by promoting global business cooperation.

e.g.

e.g.

①IoT Lab Demonstration （Mid and long-term thematic projects support）

14

Schedule 2016

31th July ’16 :the 2nd Event（2nd IoT Project Selection Meeting）★１ Feb～Mar ’17 :the 3rd Event（3rd IoT Project Selection Meeting）★２

②IoT Lab Selection （Short-term individual projects support）

【demonstration in 2017】 June ‘16 ～ Feasibility study April ‘17 ～ Starting demonstration

【demonstration in 2016】 April ‘16 ～ Starting demonstration

③IoT Lab Connection （Business Matching to create IoT projects for ① ②）

July ‘16 :the 2nd Event （2nd Matching） ★１ *theme：healthcare・sports, logistics, distribution, and infrastructure Oct ’16 :the 3rd Event （3rd Matching） *theme：smart-home, mobility Feb～Mar ’17:4th Lab Event （4th Matching）★２

※each ★１、★２ will be held at the same time