Inside Corporate VC - The case of Omron Ventures-

Tomoko Inoue CEO, Omron Ventures

TOMOKOINOUE,MBAPhD,　CEO,OmronVentures

2013－2018

2011－2013

2018－

2002－2006

2006－2009

2009－2011

BornintheUS,raisedintheUS,GermanyandJapan

Contents

•  CVCinJapan•  IntroductionofOmron•  StrategyofOmronVentures

Contents

•  CVCinJapan•  IntroductionofOmron•  StrategyofOmronVentures

Some recent articles

42.50%

34.60%

1.50%1.20%

20%

Corporate

VC

Financialinstitutions

Angels

Others

Venture investment by players

(source)MadebyOmronVenturesbasedonJVCAreport

Corporate plays a big role in venture investment

1,200

12,000

0

2,000

4,000

6,000

8,000

10,000

12,000

2008 2017

CVC investment in Japan

×10

［myen］

Landscape of VC market in Japan

The past (-2010)

(source)MadebyOmronVenturesbasedonJVCAreport

Independent VCs Global Corporations

(2010 - 2016)

Large corporations (circa 2017. 2018)

Members of Japanese VCA

JVCA Morphed into “open innovation community”

Closed Innovation

What is Open Innovation? Why is Open Innovation needed?

Spin-out

Open Innovation

(source)MadebyOmronVenturesbasedonChesbrough,2003

Advantage to use CVC

Start-up Corporate

Technologies and Business models

Fund, industry insights and assets

•  Speed up the new product launch

•  Obtain the cutting-edge market knowledge and dynamics

•  Nurture entrepreneurial spirit internally

•  Get the international and/or new market opportunities

•  Achieve product/service launch •  Speed up the business

development •  Get Potential licensees/

customers •  Add the credibility •  Get the international market

opportunities

Typical pitfalls of CVC

Some difficulties especially in Japanese market

•  Decision making process : unanimous agreement often required •  Japanese don’t say “we can” unless they have 100% confidence •  Not accustomed to diversity of thought and behavior

Startups

-  Corporate can be a big competitor

-  Cultural difference -  Difference in decision

making process

Corporate

-  Innovator’s Dilemma -  “Not invented here”

syndrome -  Longer time for

decision making

Contents

•  CVCinJapan•  IntroductionofOmron•  StrategyofOmronVentures

1940 1950 1960 1970 1980 1990 2000 2010

Desktop calculator with

color LCD

Unmanned train station system

Automatic multifunction meal

ticket vending machine

Japan-made precision switch

（写真） （写真） （写真）

Fastest fuzzy logic controller

Real color vision sensor

Continuous blood pressure

monitoring technology

1943年年 1963年年 1967年年 1974年年 1987年年 2007年年 2016年年

Solid-state proximity switch

Automated traffic responsive signal

control system

（写真） （写真） （写真）

Online cash dispenser

Automated blood cell analyzer Caricature print machine

Technology for printing electronic circuits on molded

plastics

AI-equipped automotive

sensor

1960年年 1964年年 1971年年 1977年年 1997年年 2016年年 2016年年

Japan’s first World’s first Japan’s first World’s first World’s first World’s first World’s first

World’s first World’s first World’s first World’s first World’s first World’s first Japan’s first

History of Omron Corporation

　13

Global Market Leader in Blood Pressure Monitors

No one monitors blood pressure at home

Created home monitoring device with clinicians

Over 200 million units sold

Show the effectiveness of home monitoring of blood pressure

Accumulated Units

Global market share

‘70s ‘80s Present

First Home BP monitor HEM-77 Established a

Guideline of blood pressure monitoring

2009 100m

2016 200m

1978 First

46％

Created a new market by spreading the “Culture to monitor the blood pressure at home"

\859.5bn

OMRON‘s　Business　Segments

46％

15％

9％

4％

FY2018NetSalesbySegment

15

Impetus

SeedInnovation Need

Cyclic evolution

Agricultural society

Industrial society

Traditiona

l

technique

Handicraft technique

Prim

itive

re

ligio

n

Ancient science

Modern

science

Mechanized

society

Modern

technologyInformation-

oriented society

Auto

nom

ous

soci

ety

Nat

ural

soc

iety

Electronic control technology

Biological co

ntrol

technology

Para

psyc

holo

gica

l te

chno

logy

Control science

Bionetics

Met

a-ps

ycon

etic

s

What navigate corporate strategy

Mechani-zation

Automa-tion

Informa-tion

Optimiza-tion

Autonomous Natural

1876～ 1945～ 1975～ 2005～present 2025 ～ 2033 ～

2nd industrial revolution

Material wealth IT revolution Individual choice of info and function

Pursuit of personality and cooperation

Sustainable life mechanism

“SINIC Theory” devised by Kazuma Tateishi in 1970

Contents

• CVCinJapan•  IntroductionofOmron•  StrategyofOmronVentures

To avoid pitfalls

Independent organization Small but diverse Team

Future designing Institution

Innovation Exploring Initiative HQ

Fast decision making One investment committee

Investment strategy

Sensing

Control

AI

Robotics

Security

Energy

Healthcare

Mobility & Smart City

Factory

CoreTechnologies

To co-create the future of Healthcare, Mobility and Factory

Diagnostic/Treatment Customized for Each Patient

Innovative devices and service platform enabling personalized medical care to achieve "zero cardiovascular events"

Innovative Devices Service Platform

Doctor

Data Accumulation/Analysis

Patient

l  Behavioral Change Support

l  Personalized Medical Care

Blood Pressure EKG