The author, who turned into an angel investor after various backgrounds, is an evangelist at the intersection of technology and business. Ultimately, the assertion in this book is that if you don't know the technology, your business will fail.
What is needed is a basic education in technology. It is essential to acquire literacy so that it is possible to make decisions that current technology can do so far, but not so much. This does not matter the current industry type or the size and position of the company in the industry. This book is a primer for learning this literacy.
Technology is evolving rapidly with the speed of day. However, it is often the case that companies as users do not keep up with the speed. I don't realize how convenient the technology is because I have no experience of using it. Don't introduce it because you can't feel its convenience. Many Japanese companies are falling into such a vicious circle. In this way, many companies and products will become Galapagos only in Japan. In this era, other countries should follow at once if they have intrinsic value. Technologies and products that close in Japan without that will eventually fall to the army of global companies.
This book begins with a basic composition of data technology in mind. With that in mind, I would like you to read through the seven “great changes” while slowly simulating what they mean to your company. It is imperative that each person be at the crossroads of technology and business.
Main points of this book
Artificial intelligence (AI), cloud, and 5G form a triangle, and data technology will exert its maximum effect.
This triangle brings seven major changes to businesses, such as "every company becomes a service industry."
What is needed for technology is literacy regarding "programming," "data," "English," and "finance."
Japanese companies should once again regain their stance of greedily learning and incorporating from overseas and other industries.
[Must read!] The world of data technology
Artificial intelligence (AI)
The future fate of companies depends on "data technology." If we cannot make use of this, we will definitely be lost in competition and weed out. You can't even talk about business without basic technology knowledge. This is the future reality that companies of all types must face.
The main players in data technology are three mega (core) technologies: artificial intelligence (AI), cloud, and 5G.
At the center of it is "artificial intelligence (AI)". It refers to technology that substitutes human work by making decisions based on "data" and "algorithms" such as computer programs. "Deep learning" has made that leap forward. It is called by this name because it has many deep layers of information judgment between the input and output of information.
For example, when making a machine judge whether a dog is a dog or not, only a rough judgment has been made so far, in which a human inputs one pattern and extracts only the ones that match the pattern. In deep learning, the machine divides the eyes, ears, nose, mouth, etc. into several layers, and the machine learns the features of each part using vast amounts of data. As a result, the accuracy of determining whether a dog is a dog or not is significantly improved.
Cloud and 5G
A large amount of data is required to achieve higher levels of deep learning. "Cloud", which is a technology for accumulating it, is essential. The cloud is a mechanism that allows you to use external server functions and network functions when needed through the Internet. Currently, the cloud is providing not only as a "storage medium" for holding data but also as a "computing power" for information processing.
In addition, even if there is a cloud, it cannot be used effectively if the function of sending data is insufficient. "5G (Fifth Generation)", a communication technology that sends large amounts of data at high speed, started in 2019. 5G realizes "high speed, large capacity", "low latency", and "simultaneous connection", which are different dimensions than before.
Cloud that stores and processes huge amounts of data, 5G that sends and receives large amounts of data at high speed, and AI that makes decisions based on data. Data technology is most effective when these three form a triangle.
Focusing on these points, we have focused on the development of this basic technology, ``FAANG + M (Fang + M)'', that is, American companies such as Facebook, Amazon, Apple, Netflix, Google, Microsoft It is a group. After that, China's “BATH”, that is, Baidu, Alibaba, Tencent, Huawei, is a group of companies.
The industry and companies that will lead the next generation of core business such as “autonomous driving”, “smart home” and “drone robotics” will surely emerge from this triangle.
Blockchain is also gaining attention as the fourth megatechnology. This is a system in which participants are democratically proof of the legitimacy of “authorities” in terms of currency and family register. Bitcoin is an example.
7 mega trends
Data is new oil
In order to prepare for the arrival of the unknown world brought about by data technology, I would like to firmly hold down seven major changes, the "megatrend."
The first major change is that data will be the source of all value. Data is what best describes the customer's desire. In the coming era, companies that can provide services and recommendations based on data, not on hardware or software, will become the leaders in the global society. The following phrase was written in the World Economic Forum report released in January 2011.
"Personal data is the new oil on the Internet-"
Hardware receding in the background
The second major change is that "every company becomes a service business." It is not the end of selling machines and other hardware, but the services that can be provided from them differentiate the business. Industries will be divided according to what aspects such as “mobility” that facilitates the process of moving by car, “content” such as videos, and “healthcare”. You need to steer your business into a service industry.
The third major change is that "every device becomes a box." With the penetration of 5G and the cloud processing of all data processing, the device at hand will no longer need a single "processing" function. In other words, the hardware is just a "box". In the future, it will be better to focus on making good software.
The walls of large companies, industries, and occupations dilute
The fourth major change is that "the advantages of large companies will be lost." In a world where technological evolution is spurring, speed is paramount. Companies that hesitate to change have no future. Large companies have no choice but to quickly find and acquire a venture company that is light and has excellent capabilities, or to create a subsidiary that can do whatever they want without having to move by the reason of the large company. Google and others are becoming one of the big companies, but they support the challenges of their employees to the outside world. This is because it becomes faster and stronger at responding to changes.
The fifth major change is that "wherever you make money, it's ok, and the industry barrier disappears." Amazon is a leader in e-commerce, from music and video services to money lending. The idea is that by enclosing the total number of customers, you can make money at some point of the touch points with multiple customers. In such a world, the barriers to the industry will be extremely low. This shows that all industries have to turn to IT-oriented conglomerates.
The sixth major change is that the concept of occupation will disappear. People who have experienced both technology and business can see various business opportunities. For people who only know the IT field, it is difficult to convey technology useful for finance to people in the financial field in an easy-to-understand manner. A person who fills this gap is called an "evangelist" who means a missionary. Even if it doesn't go that far, in the future it will be necessary to strive to become a "multi-tag human" with at least multiple abilities.
Data and economics that reflect the reality itself
The last major change is that economics will change. Traditional economics has attempted to understand complex economic phenomena by modeling with limited information and making it simple. However, from now on, it will be possible to collect data that is as close as possible to the overall image. It shows the reality, not the model.
It is expected that a new data-based approach to economics will emerge after 2025. In fact, on Google and Amazon, many economists are already involved, attracted by the vast amount of data that can't be gathered in academic settings.
Technology and business
AI breakthroughs do happen
Now, let's take a lot of space in this book and look at AI, which is the backbone of data technology.
For data analysis, AI currently has three specific possibilities: image processing, natural language processing, and voice recognition. It is said that you cannot judge right and wrong, and you cannot do creative things like making movies and music. However, this is not a matter of computer processing power. No algorithm has been found to analyze what stimulates the brain, such as what it feels beautiful.
But the authors believe that "new breakthroughs" will happen. Nowadays, it is possible not only to derive solutions from simple elements, but also to embed in computers the ability to create the hypothesis that "it may be this way."
However, further evolution cannot be achieved without changing the deep learning method itself. At present, it is unknown what kind of method will become the standard, but the technology is likely to emerge from Google. At least, FAANG+M has most of the cloud computing that enables deep learning, so it is relatively unlikely that new algorithms will be born from other than that.
A good AI is created by multiplying the amount of data by a good algorithm. In that sense, a new AI could emerge from China, which has a population of 1.3 billion and can collect ethically relevant privacy information all at once. From this point of view, the amount of data in the Tokyo area is the highest in the world, and there is an opportunity for the Japanese AI business to revive.
Capture data technology from a business perspective
Academia, engineers and journalists have a decisively lacking perspective on the future of technology. That is the perspective of "how to invest and make money", which an investment professional such as the author makes.
In the evolution of technology, not only is it an unprecedented epoch-making thing, but also "is it accepted and spread by users?" Let us introduce the pattern in which technology explodes.
One is the iPhone. Products that started small development with a small investment were welcomed by many users and spread rapidly. A wide range of parts manufacturers such as LCDs and cameras also profited, and each of them invested their profits in investment, further improving the quality of technology.
Amazon cloud services are another pattern. This is a case where a huge amount of investment is required in advance. Amazon founder Jeff Besos prioritized its popularity by offering servers at a low price, offering servers without paying attention to gold. As a result, the reputation that it is easy to use has created a reputation, and the cycle of revenue and income has come to wrap up.
In any case, it is important to have someone who has the idea of what kind of data can be used for what kind of growth. This is especially true if 5G and the cloud will allow us to store in real-time the level of detail and accuracy that we couldn't get before.
Japanese companies in the future
Develop technology literacy
Technology, which is only popular in Japan, is not internationally evaluated as having a future. On the other hand, there are some that have become world standards but have not yet entered Japan. It's important to get good quality information about technology and markets. In that sense, future business people must acquire knowledge about "programming," "data," "English," and "finance."
When a new buzzword comes in, or when the essential concepts such as AI, cloud, 5G, and blockchain come into play, the decision that "I can do this" or "I can not do it" is made without panicking. it can. That is the most important literacy of technology.
Regain greedy learning
After the war, Japan desperately adopted and improved the advanced technology and business models of the United States in a situation where there were no resources, and built an era of high economic growth that was said to be a miracle.
Whether it's a car or a cell phone, Japan is not good at creating something from scratch. If that is the case, Japan must once again regain its original strength of greedily learning from overseas and taking action. In addition, the Internet and English are now creating a wonderful environment where you can learn wherever you are.
Recommendation of reading
In this book, the history of the evolution and evolution of semiconductors, the Internet, and artificial intelligence up to now is summarized throughout the entire chapter, called the "History of Evolution of Core Technology." This gives a great deal of reality to today's and tomorrow's talk, so please take a look. In addition, a wealth of business cases are introduced along with AI for 5G and cloud that were not mentioned in the summary. Adding these topics will give you a clearer view of the technology.