Business Innovation Unit

Osamu Fujikawa, Senior Vice President

Overview of Business Innovation Unit

▌ Mission / Goal Process and Organizational Structure for

Business Development
Create business to be pillar Gate
Examination
in the future Process Generate Ideate Develop Launch Operate

Corporate Corporate Business

 Commercialize and monetize
technologies of the Central Research
Laboratories
 Explore business opportunities
addressing social issues
Structure
Incubation Division Development Division
Business exploration Business development
Business Innovation Planning Division
Acceleration of business development
No. of personnel as of 6/1/2019: Exclusive (195), Concurrent (73): Total (268)

 Accelerate value creation through Mechanism

Business design job /
Human resources development programs
“Co-Creation”

Enhance business development capability and create business

which can be pillar for the next Mid-term Management Plan
2 © NEC Corporation 2019
Creating New Pillar Business for Next Mid-term Management Plan

 FY2014: Started execution of “ecosystem for new business creation” and “lean startup”
 FY2015: Established Design Center and strengthened business development function
with design-oriented mind
Summary  FY2016: Strengthened cooperation with the Central Research Laboratories and
accelerated technology-driven business development
 FY2018: Focused on the role of launching our own business from supportive business
development

 Rapid launch of dotData business

Key
 Full-fledged entry into drug discovery business with our cutting-edge AI technologies
Achievements
 Business development through open innovation (NEC X, Smart Wellness, Insight Marketing)

 Promote impact-driven business development aiming at solving social issues

Future  Promote more efficient and effective commercialization of businesses by enhancing
Development technology maturity evaluation and value creation methods for the cutting-edge
technologies at the Central Research Laboratories

3 © NEC Corporation 2019

 dotData Business
Recognized as a Provides reference
leader in solution for architecture in AWS
circumstance, capable
“Automation-Focused
to prepare data
Machine Learning,” analysis foundation and
by independent easily analyze data in
researcher short term

2018/4 Press conference 2018/7 2019/2 2019/5 2019/6

for establishment Commercial launch Launch of Japan entity External evaluation Press release

Achievement Obtained 20+ paid customers in just a year since commercial launch

Strength the First and Only end-to-end data science automation for the enterprise

Future Targeting enterprise value of ¥50bn by FY2022

Development
of dotData Develop advanced technologies as outstanding global market leader

Future Trigger a paradigm shift in analytics industry

Development Launch new services to eliminate the analysis talent exhaustion
of NEC
and deliver dramatic speed and business insight for organizations

4 © NEC Corporation 2019

 Drug Discovery Business
<Drug Discovery Business> Aims to become a drug developer 2019/4
through the approvals of the individualized neoantigen cancer
immunotherapy NEC’s
Invested $50mn in BostonGene through Series
NEC unique, A financing, aiming at enhancing process and
cutting-edge
AI
success rate of clinical trials of individualized
Gene
Graph-based neoantigen cancer immunotherapy
mutation
analysis Relational
Learning Vaccination
Diagnosis !
!
and 2019/5
Efficacy ! Treatment
prediction
by AI Vaccine
Monitoring First company in Japan to jointly initiate clinical
Comprehensive
Neoantigen
Neoantigen Synthesis Efficacy trials for “individualized neoantigen vaccine”
Treatment identification
plan Ranking prediction
by AI
with Transgene in US and Europe
Genome Neoantigen prediction platform Treatment Plan
Sequencing (Customer support, system operation) plan
Cooperating with various partners to enhance
Data development process

Achievement
Revised Articles of Incorporation and entered into cutting-edge AI-based “Drug
Discovery Business”
“Superior Method: AI” & “Superior Data” developed through 20+ years of
Strength
research and business development efforts
Future
Aims to achieve an Enterprise Value of ¥300bn for the drug development business by 2025
Development
5 © NEC Corporation 2019
 Open Innovations
NEC X team: Smart Wellness team: Insight Marketing
Accelerator in Silicon Valley
Early detection
Discovery of new insights by
of health conditions
digging into consumer needs
with sensors built in shoes

FiNC
NEC NEC Macromill
Technologies
IoT Wellness service
AI Consumer data

Commercialization of technologies Joint development of

複数案件で事業化準備中
after dotData
 Product authenticity
verification solution business
 Causal analysis solution
business
wellness solutions
 Develop business as a speed of
venture company
 Developing services with
consumer-targeted IoT product
“Insole”
Insight marketing business
 Joint AI analytics service with
dotData
 AI-assisted purchase projection
 Research service with bio info*
* : NEC’s AI tech “Remote Gaze
Detection Technology”
: Service to launch in July

6 © NEC Corporation 2019

 Supplement
Business Value of dotData

Data Machine
Action
Data processing Learning Visuali- Opera
assign Design of feature value
collection (For (model zation -tion
-ment
analysis) design)

Time Skill Insight

Automatic
Automatic design of feature value machine learning
dotData GUI dotData API

Move from raw data to Enable everyone on the Automatically extract

business impact in days, team to effectively business insights
not months execute projects necessary for future
prediction

7 © NEC Corporation 2019

 Supplement

Process of Data Science Enabled by dotData

Several months
Old Way
Model
Identify Feature Production
Business Data Preparation Design
Use Case Engineering Machine (Operation)
Learning

One day
dotData Feature
Model
Identify Design Production
Engineering Achieve equal or better
Business Machine (Operation) results than old way
Use Case Data Preparation Learning

Automation

8 © NEC Corporation 2019

 NEC’s differentiating factor Supplement

Aims to be directly involved with drug discovery

by utilizing its existing IT tools to deliver drugs to patients

Other IT Companies NEC

Drug Discovery Support Drug

予防 創薬
・Prevention ・Diagnosis Discovery
・Electronic medical record

ドラッグ
ITツール Drug
IT Tools
Products

9 © NEC Corporation 2019

 Development Flow of NEC’s individualized immunotherapy Supplement

!
!

!
Administration

Biopsy
Neoantigen Individualized Neoantigen
Prediction System Vaccine Synthesis

10 © NEC Corporation 2019