1. “ Integrated Phases of Innovation figuring out in Processes ” Date & Time: 5 th December, 2014 15:00 ～ 15:30 Place: Hong Kong Convention & Exhibition Center Speech ： Prof. Tomohiro Takanashi ( President, Innovation Fusion Society of Japan / Fellow, Japan Research Inst. / Director, NPO IT Coordinators Association ( ITCA ) / Certified Public Accountant / Chairman ICG International Consulting Group / Specially Appointed Professor, Niigata University Graduate School for MOT Inno Design Tech Expo All Copyright©2014.IFSJ

2. ‘Abenomics’ Prime minister Shinzo Abe and his administration is advocating affect in Japanese Industries and the related section. In order to revive the stagnating economy, we IFSJ was established in April this year in cope with ‘a growth strategy that entails structural reform’ which is the 3 rd advocacy of ‘Three- Arrowed Economic Booster Plan’ IDTE ー 1 All Copyright©2014.IFSJ

3. ‘a growth strategy that entails structural reform’ ‘Innovation’ Practitioner = 6,223 IT Coordinators Academic Research + Practical Study = IFSJ Members IDTE ー 2 All Copyright©2014.IFSJ ( © Tom.Takanashi 2014 )

4. How create a company that causes the innovation? ・・・ to leverage “ Integrated Phases of Innovation figuring out in Processes” IDTE ー 3 All Copyright©2014.IFSJ ( © Tom.Takanashi 2014 )

5. 5 １． For the Japanese economy playback, innovation will have been said to be essential. ２． However, It is not easy to keep up with the global competition by innovation as current Japanese Economic situation shows. ３． So, I want to unravel the ability to cause the innovation. ４． However, nothing happens in the biased ability in old fashioned corporate culture in Japan. → ５． One solution is to fuse the personal ability and organizational ability. → ６． The second is to leverage our book “ Integrated Phases of Innovation figuring out in Processes” Thoughts on Innovation in Japan IDTE ー 4 All Copyright©2014.IFSJ ( © Tom.Takanashi 2014 )

6. InvestmentAmount Time Product Develop ment 2 nd Death Valley 3 rd Death Valley Commerc ialization Competitive Advantage Customer Needs ＆ Seeds （ Tech Study ） Source:”2006 Report by Japanese Government 抜粋、追加修正 3 Death Valleys of Innovation Product Innovation Process Innovation Business Inn0vation Mind Innovation Idea Many cases = Nothing happen Issue of Innovation ！ 1st Death Valley IDTE ー 5 All Copyright©2014.IFSJ

7. InvestmentAmount Time Product Develop ment 2 nd Death Valley 3 rd Death Valley Commerc ialization Competitive Advantage Customer Needs ＆ Seeds （ Tech Study ） Source:”2006 Report by Japanese Government 抜粋、追加修正 3 Death Valleys of Innovation Product Innovation Process Innovation Business Inn0vation Mind Innovation Idea 4 th Death Valley = Motivation / Mind Issue of Innovation ！ 1st Death Valley IDTE ー 5 All Copyright©2014.IFSJ

8. Writing Concept １、 To maximize the ability of all participants in all processes of innovation. ２、 Autonomy is fundamental and we do not interfere with the motivation. ３、 We do not interfere with the study (awareness) of day-to-day 知 Chi-activities. 【 ※ 知（ Chi ） = Knowledge + Wisdom + Mind 】 知識（ chi-shiki ） + 知恵（ chi-e)+ 知心（ chi- shin) ４、 We focus on the gthering, sharing and use of omnidirectional 知（ Chi ） (Young-Senior, Men and women, other department, outside, etc.) “ Improvement of organizational capability ” 8 IDTE ー 6 All Copyright©2014.IFSJ ( © Tom.Takanashi 2014 )

9. Fig. 2 ‐ 4-3 ． Ability Model which causes Innovation Stage5: Innovation implementation process Innovation Implementation Process Stage4: Skill related to Innovation ・・・ Knowledge ・・・ Mind Stage3: How to hold the consciousness ・・・ Wisdom Stage2: The basic point of view Stage1: Qualities of innovative human assets ・・・ Aptitude ・・・ Strategy IDTE ー 7 All Copyright©2014.IFSJ ( © Tom.Takanashi 2014 ) 知 Chi

10. Innovation Management Process Model Value Implementation Phase Recognition Phase of Attitude and Direction on Innovation Innovation Produce Phase Recognition Phase of Sustanable Innovation Innovative Environment & Constitution Building Process Innovation Recognition Process Innovation Realization Process Managers’ Leadership Phase Innovative Human Asset Training / Leverage Phase Flexible Innovative Organizational Environment Building Phase Communication & Chi Management Phase Value Finding Phase Value Design Phase Value Proof Phase Value Creation Process Confirmation Phase of Attitude and Direction on Innovation （ © ITCA 2014 ） IDTE ー 8

11. Can you work for innovation? under the circumstances of the old fashioned constitution, style or culture in the such existing institutions and mechanisms, rules, etc. Can we build a mechanism that actively incorporate anyone's idea 11 New organizational environment and new corporate culture for Innovation! IDTE ー 9 All Copyright©2014.IFSJ ( © Tom.Takanashi 2014 )

12. 12 ① No consciousness of innovation ④ As a result, the management does not bring up the people that cause the innovation ② Doing only internal knowledge work. ③ Do not invest in management resources. How is innovation born? ー 1 IDTE ー 10 S P D All Copyright©2014.IFSJ ( © Tom.Takanashi 2014 )

13. 13 ← ⑤ Create n ew flexible business management How is innovation born? ー 2 S P D IDTE ー 11 All Copyright©2014.IFSJ ( © Tom.Takanashi 2014 )

14. 14 Seeds of innovation is born by flexible management and the bud grows. S P D As a consequence, Innovation occurs. IDTE ー 12 How is innovation born? ー 3 All Copyright©2014.IFSJ ( © Tom.Takanashi 2014 )

15. Structure of Mind Innovation （ © ITCA 、髙梨、 2014 ） Business Model Innovation Product Innovation Process Innovation Social & Customer Value Improvement Mind Innovation Mind, Motivation,etc. IDTE ー 13 All Copyright©2014.IFSJ “Ishi Innovation”

16. 16 Diverse human How to Leverage Diverse 知 Chi ? To Innovate Motivation Can we innovate people’s mind ? ( © Tom.Takanashi 2014 ) IDTE ー 14 All Copyright©2014.IFSJ

17. As of Novem ber 1, 2014 Prof. Tomohiro Takanashi ・ Managing Partner, T&T Partners, Certified Public Accountant, ・ President, Innovation Fusion Society of Japan, ・ Specially appointed Professor, Niigata University Graduate School for MOT, ・ Director, Trust Tech Inc. ・ Fellow, The Japan Research Institute, Limited, Prof. Takanashi is actively serving in various roles; - President, International Consultants Group ( ICG ) - Director, NPO IT Coordinators Association ( ITCA ) - President, Internal Control Assessment Organization(ICAO) Prof. Takanashi received a Bachelor of Arts in Economics from Keio University in 1968 and went on to graduate work in Accounting at Waseda University in 1969. In 1983, he completed Advanced Management Program at Harvard Graduate School of Business Administration, in Boston U.S.A. All Copyright©2014.IFSJ

18. He joined Arthur Young Tokyo in 1970 and promoted to partner in 1981. For over 20 years, He served most of the major client of Ernst & Young Tokyo (formerly Arthur young) in an audit and /or consulting capacity, including work on strategic information systems, corporate strategies, operational consulting, overseas investments, etc. He became senior partner of Asahi & Co. (now, Azusa & Co., group of KPMG) in 1993. From 1993 to 1995, He has worked with Arthur Andersen Group as a representative of Asahi Arthur Andersen. He has been with The Japan Research Institute Ltd. since April 1, 1995 to March31,2008 Bibliography: Dr. Takanashi is the author or co-author of 56 publications on Innovation, Knowledge Management (Chi Management in Japanese), Process Management, Benchmarking, Risk Management, IT Management and other business-related subjects. All Copyright©2014.IFSJ