This article has been reprinted with permission from pilot boat, LLC.The original article can be found here.

On July 1, 2019, Shiseido R&D announced the launch of its open innovation program, fibona. Since then, they have been inviting companies to participate in an in-house pitch event (fibona Pitch Stage) to be held on August 29, 2019.

At the fibona kick-off event, a panel discussion was held with several participating startups. This article provides a digest of the discussion. The content has been edited by pilot boat.

The panelists were as follows (from left to right in the photo above).
Kazunori Kawanobe, LOAD&ROAD Inc. / teplo
Atsushi Nakanishi, Triple W Japan Inc. / DFree
Yuya Kikukawa, no new folk studio Inc. / ORPHE TRACK
Kenji Ohta, CODE Meee Inc. / CODE Meee ONE
Takeru Ominami, Shiseido Co., Ltd. / fibona
Mariko Nishimura, President, HEART CATCH Inc. (Moderator)

Tea, Excrement, Shoes, and Fragrance: Each IoT Startup's Approach

The sencha we currently drink was introduced around 1750, but if you look at tea utensils, they have remained unchanged since that time. Our vision was to see what would happen if we modernized the tea-brewing process.

Kawanobe (teplo):
Our focus is on data analysis: The device measures your heart rate and finger temperature before brewing the tea. During the process, the room temperature, humidity rate, brightness level, and noise level of the environment are analyzed and reflected in the tea-brewing process. After drinking the tea, users provide feedback, and the system analyzes how they would feel if they drank the tea depending on their environment and the type of person they are. Up until now, we knew who the product was sold to, but we did not know how they drank it or what they thought of it. We are trying to visualize this through data analysis. We are still in the process of conducting research, but we are gathering data on, for example, heart rate, extraction time, temperature, age, and gender.

Nishimura:
Thank you, Mr. Kawanobe. Next, Mr. Nakanishi from Triple W Japan Inc., please.

Nakanishi(DFree):
We are working on a service called「DFree」which is an IoT device that contains a sensor using ultrasound technology that, when attached to your body, helps manage urinary incontinence by monitoring bladder fullness and notifying you when it’s time to go to the bathroom.。

Nakanishi(DFree):
DFree has already begun mass production and is also developing technologies for not only urinary but also bowel incontinence. Some seniors are afraid to leave the house due to accidental urinary or bowel leakage, and to some degree, they feel that the situation is uncharacteristic of themselves. We would like to promote the use of this device as a step toward improving their lives.

Nishimura:
Now, Mr. Kikukawa of no new folk studio Inc., please.

Kikukawa (ORPHE TRACK):
My name is Kikukawa, President of no new folk studio Inc.
We are developing smart shoes that contain sensors and computers called “ORPHE.”「ORPHE」

Actually, I’m wearing a pair of our 「ORPHE TRACK」 sensor shoes right now. To put it simply, they’re IoT shoes that analyze and record every movement of your feet just by wearing them. Each time your foot touches the ground, they analyze the movement and light up. They even change color depending on things like the angle of your feet while walking. They collect and analyze information such as stride length, how high the feet are elevated, ground angle, impact, and speed.

We are mainly targeting the running market. For example, it is reported that more than 30% of runners experience knee pain, and a contributing factor is running form.Form used to be something you had to learn on your own or be taught, but with ORPHE TRACK, you will be able to improve your form using data.
In the context of open innovation, we are collaborating with ASICS on smart footwear, and we are working on getting major manufacturers to adopt our technology rather than selling the product ourselves.

Nishimura:
Thank you very much. Now, Mr. Ohta from CODE Meee Inc., please.

Ota (CODE Meee ONE):
Hello, everyone. My name is Ohta from CODE Meee Inc.
I started this company with the idea of making the world a more exciting place through fragrance and IT. The reason why I’m interested in fragrance is that I have been developing original scents at a fragrance company for many years.

Specifically, we are creating a service called “「CODE Meee ONE」.” Our focus is on stress, which is something we all have to deal with. Currently, there are no simple means to relieve stress in a healthy way, so we are striving to meet this challenge through the use of aromatherapy. However, unlike conventional aromatherapy, our service is unique in that we deliver optimal fragrances in response to each individual's stress levels through personalization.
Many people may have the impression that aromatherapy is a service that caters to women, but CODE Meee ONE’s core target is men. We mainly use natural essential oils produced in Japan for our fragrances, and all of our bottles and packaging are made in Japan as well.

CODE Meee ONE links AI and social media to create the optimal scent. The user selects the desired emotion, whether they want to feel uplifted, relaxed, or focused on work. The system also allows you to select up to three scent preferences. In addition, there’s an option to link the service with Twitter, which takes your 200 most recent posts and analyzes them with AI to assess your personality, and in turn, provides even further customized fragrance recommendations.

Conditions for a large, trustworthy company

Nakanishi(DFree):
When we first launched the service, DFree's articles spread quickly, and from there we were approached by many companies. We also made connections through events like this.

Kawanobe (teplo):
Our first connection was with an accelerator program. We participated in a program run by Kirin Holdings, of which we are now partners.

Kikukawa (ORPHE TRACK):
We are engaged in varying levels of collaboration, but the one that was heavily covered was Mitsubishi UFJ Trust and Banking Corporation's accelerator program.

Ohta (CODE Meee ONE):
CODE Meee was also initially a Yamaha accelerator program for music.

Ominami (Shiseido):
I have heard rumors that when startups and large companies collaborate, some of the companies engage in bad practices. For example, they only ask for information and don’t yield any concrete results. Is there any way to recognize companies that might do this?

Kawanobe (teplo):
We haven’t had any bad experiences like that so far. Various companies have been working on open innovation recently, and I believe that large companies are getting accustomed to working with startups. However, I would do my research. It’s best to ask the startup community, and if it’s an accelerator program, I would contact previous participants.
However, I would do my research. It’s best to ask the startup community, and if it’s an accelerator program, I would contact previous participants.

Nakanishi(DFree):
In that sense, Mr. Kawanobe is right. Reputation is very important. It’s difficult to judge what is good or bad, but if a large company tries to work with a startup only for its own benefit, they will not be able to align. Startups are taking on new challenges, so I think it’s important for them to be able to think over a span of about 10 years.

Kikukawa (ORPHE TRACK):
The easy thing to determine is whether people who can explain their approach and decision-making process are trustworthy to a certain extent.
Startups are really putting their lives on the line to do business. With all due respect, I would like you to consider that you are taking the time of people whose livelihoods are at stake.

Ohta (CODE Meee ONE):
Even though startups are popping up all the time, we’re part of a very small community. Reputation spreads quickly. Perhaps because of this, I feel that companies are not allowed to do anything out of the ordinary.
Also, if an accelerator program has been run several times, we can see the before and after results of the startups that have been selected — in other words, whether or not concrete results have been achieved. From the perspective of a startup that is about to participate in an accelerator program, I think this is one of the cornerstones of the decision-making process.

Ominami (Shiseido):
That you for your insights. It can be difficult to understand these sorts of things when you are part of a large company, so we have to think about what a startup might find attractive.

Be a professional in open innovation

However, if we are being paid to do something, we at the very least try to do our jobs in a professional manner. I think it’s only natural, and I believe the other side should also find out what benefits they can provide to the startups as a matter of course.

Nakanishi(DFree):
Along those same lines, I think the most ideal relationship is basically one in which our strengths and weaknesses complement each other.

Ominami(Shiseido):
Your comments have reminded me how important it is for startups and large companies to have an equal mindset. Thank you very much.

Nishimura:
This concludes today’s session on startups and Shiseido. Thank you all very much.

Calling for startups to participate in Shiseido’s R&D open innovation program “fibona”