THE BRIDGE

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From Microsoft Innovation Award: How will data-driven approach change startup businesses?

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See the original story in Japanese. The Microsoft Innovation Award 2015 (MIA2015) is an annual opportunity to showcase how startups have developed innovative software and services that bring progressive ideas to life. The presenting ceremony for the award was held at Microsoft Japan headquarters in Tokyo a couple of weeks ago where the MIA Award and Audience Choice’s Award winners were announced following the finalist pitches. In the event, The Bridge coordinated two panel discussions focused on data-driven startups. Panel 1: How will a data-driven approach factor into healthcare apps and platforms? The event’s second session kicked off with a panel about how healthcare startups are leveraging big data to improve their platforms and businesses. Moderated by The Bridge co-founder Masaru Ikeda, this session included: Francois Cadiou (CEO, Healint) – on screen via Skype Yoko Gibo (Managing Director, Noom Japan) Yuji Mizoguchi (CEO, FiNC) Shinichiro Isago (Technical Evangelist Manager, Emerging Technology Evangelism, Microsoft Japan) Healint has developed an app called Migraine Buddy which collects data recorded from sufferers of migraine headaches. By recording the symptoms of migraines from patients, doctors can more accurately report on those symptoms. Healint performs big data analysis based on accumulated user data and, by sharing…

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Licensed under CC BY-SA 2.0. Image by A Health Blog.

See the original story in Japanese.

The Microsoft Innovation Award 2015 (MIA2015) is an annual opportunity to showcase how startups have developed innovative software and services that bring progressive ideas to life. The presenting ceremony for the award was held at Microsoft Japan headquarters in Tokyo a couple of weeks ago where the MIA Award and Audience Choice’s Award winners were announced following the finalist pitches.

In the event, The Bridge coordinated two panel discussions focused on data-driven startups.

Panel 1: How will a data-driven approach factor into healthcare apps and platforms?

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From the right: Shinichiro Isago (Microsoft Japan), Francois Cadiou (Healint) on screen, Yoko Gibo (Noom Japan), and Yuji Mizoguchi (FiNC)

The event’s second session kicked off with a panel about how healthcare startups are leveraging big data to improve their platforms and businesses. Moderated by The Bridge co-founder Masaru Ikeda, this session included:

  • Francois Cadiou (CEO, Healint) – on screen via Skype
  • Yoko Gibo (Managing Director, Noom Japan)
  • Yuji Mizoguchi (CEO, FiNC)
  • Shinichiro Isago (Technical Evangelist Manager, Emerging Technology Evangelism, Microsoft Japan)

Healint has developed an app called Migraine Buddy which collects data recorded from sufferers of migraine headaches. By recording the symptoms of migraines from patients, doctors can more accurately report on those symptoms. Healint performs big data analysis based on accumulated user data and, by sharing and marketing that information to pharmaceutical companies and research institutions, new medicines are developed and healthcare quality is improved.

CEO Cadiou argued that the app attracts many Japanese people:

Things like one’s own nervous system can be quite difficult to grasp, so patients should record and manage their condition daily, gather the appropriate data, and then see a doctor in order to recieve the optimal method of treatment.

FiNC, a mobile health technology startup in Japan, employs full time personnel, physicians, pharmacists, and instructors in the preventive medicine field. Most recently, with the release of their healthcare news app Wellness Post, FiNC has been making the push to proliferate medical information relevant to their users. Additionally they are working on a new preventative medicine crowdsourcing platform for nutritionists, trainers, and other health specialists.

NYC-headquartered Noom has been offering preventative medicine solutions for consumer and commercial use since 2008. More recently they have been developing a smart AI (artificial intelligence)-based personal coach app called Noom Coach, as well as Noom Health, an app that family physicians and trainers can use to get an accurate picture of their patient’s health based on each patient’s recorded diet and exercise, making it possible to offer counseling to many patients remotely at low cost, and with a high degree of accuracy.

Now is the time to make healthcare data a real focus

To start the discussion, the speakers were asked to share what led them to start their businesses. Speaking from his own clinical development experience, Cadiou found himself focused on the various ways progress can be made in transitioning from paper to web apps and sensors, and so on. To approach these hurdles, Cadiou started working with data scientists and programmers, considerably progressing his research and development practices in Singapore.

In view of many healthcare startups born out in the world, FiNC CEO Mizoguchi shared his point of view on the state of the healthcare market. He said,

Healthcare is a concern everyone shares, which is why we are in such a good market to expand globally.

Noom, on the other hand, broke into the market through a NYC-based startup accelerator specializing in healthcare. Gibo expressed,

The healthcare business world as a whole has a high barrier of entry and is a difficult place to grow as a business. That’s why the existence of an accelerator that combines big business with healthcare technology is so crucial, and also why Noom has also been able to work together with a variety of medical institutions.

Adding that through beginning to offer enterprise targeted services they have seen considerable growth. The healthcare field itself appears to be experiencing a movement of innovation right now that is justifiably garnering global attention.

The three companies are each engaged in analyzing data connected to their users’ healthcare and putting that into use in developing services, so the question of how is this kind of big data to be effectively used is becoming of interest. Gibo pointed out that as far as health care data goes, the data that has been collected so far is small, and supplying data to insurance companies and patients has only recently started. However, it can be said that a data-based business model incorporating feedback regarding insurance companies is on the verge.

Mizoguchi shared,

There have been a lot of offers for the trial deployment of our services, and we’ve begun dealing with the local government. […]

This has all just recently started in Japan so data and evidence are still scarce. With consent from users, we’d like to make that data open to use and build a structure for use and application. By recording physical, location, and movement behavior data, the time when we can provide individualized health care services based on users’ individual data may be soon. Our aim is to continue searching for the best ways to utilize data to make as many people happy as we can.

In response to this, Microsoft’s Isago said,

Up until now Microsoft has largely been involved in the game and entertainment industries, but the requests from people in other industries such as healthcare increased when the Kinect was introduced. […]

Basically I think you could say that more and more people are realizing the possibilities technology holds. Currently we’re focusing our efforts on the medical and security fields. We’re always on the look out for startups that are interested in working together with Microsoft to develop new services that utilize various different kinds of cloud data.

Gibo also expressed that the healthcare market itself is still in an early stage, and that through collaboration with businesses such as Microsoft to open up commercial channels, new paths are created.

Commenting on the future of healthcare Gibo had this to say,

In regard to health, we’re aiming for a worry-free society. Progressing to a society where people can understand their own bodies and have the appropriate control is the objective of healthcare.

Panel 2: How will data-driven startups change how to find the right job opportunities?

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From the right: Shinichiro Isago (Microsoft Japan), Yukihiro Ikemi (Grooves), and Toshiyuki Oka (Atrae)

The second panel, regarding data-driven hiring platforms that turn skills and careers into data to meet with the needs of employers and suggest potential employers to users, featured the following people:

  • Yukihiro Ikemi (CEO, Grooves)
  • Toshiyuki Oka (Board member / Developer, Atrae)
  • Shinichiro Isago (Technical Evangelist Manager, Emerging Technology Evangelism, Microsoft Japan)

Up until now Atrae has been running Green and other recruitment sites, but recently, in cooperation with big data analysis company Brain Pad (TSE:3655), they have launched a personnel mining service called TalentBase, which utilizes big data analysis AI. Unlike the typical resume based on your previous business experience, this new service creates reference data based on human relations using data analysis. The aim is to create better person to company matches based on connections and shared evaluations.

Grooves is currently running Forkwell, a portfolio site for engineers, as well as CrowdAgent, which generates recruitment matches from its 3,500 registered companies. It aims to be a national recruitment information portal with a network of more than 16,000 business people. Additionally, Grooves recenty established a HR tech R&D unit, aiming to conduct research on applications of artificial intelligence and big data analysis within the personnel recruitment field. Kenji Hirata, the first person to become engaged in international standardization of personnel training and competency was appointed as head on the research institute.

The HR market itself is calling for a major change

It could be said that one of the essential dilemmas among companies is how to effectively match potential employees with open positions. As the field of matching through the use of data and AI experiences a swell of interest, these problems are addressed. The discussion participants were asked what reasons led to the development of their services.

Ikemi explained that despite the fact that the recruitment business in Japan alone is a 7 trillion yen ($57.2 billion) market, 44 billion yen ($360 million) globally, these business practice haven’t changed since pre-war times. He said that as a tech enterprise, they started with the idea of wanting to create a service that will shake up the HR field in Japan. Even at that, he clarified by saying that the large amount of matching of people and businesses was “unexpected”. He supposed that similarly to dating and marriage matching sites randomness is a considerable aspect.

Ikemi explained,

Optimizing matching using big data is good, but we want to suggest matches that feel like stories.

Additionally, Ikemi explained that Japan not adopting HR-XML (Human Resources – eXtended Markup Language) had a major influence on the job hunting market. In the US, more so that recruitment platforms, crawler-type recruitment services are widely recognized, for the reason that HR-XML, which aims for the collaboration of recruit information, is continuing to become more familiarized. Through HR-XML, unification of topics like “Job Description” found on recruitment media and corporate sites has made possible automation and data-based matching, as well as personalized recruitment recommendations. However, Japan took a different path while not adopting such collaboration, which is why we have seen the spread of recruitment matching that utilizes individuals’ resources. From this, an opportunity is being missed to gather superior foreign personnel in Japan and inversely to send Japan’s superior personnel out into the world.

He continued,

We want to realize a new ‘Job Description’ in Japan.

When asked if things that were before done by humans be replaced by machines, Oka said he doesn’t think career consultation can be done with AI. He also said that more so than matching a person with a company through TalentBase, the aim is to create a place where a person can connect to another person within that company, and by focusing on building human relationships, new methods for choosing a place of work can be found that don’t necessarily rely on factors like one’s previous income and company position. Because we have to consider not just data but also human relationships, which can be seen as a sort of irrationality in society, said Oka.

Isago also commented that while working at Microsoft,

When doing recruiting through the same vendor, we can only gather one type of people. If the business itself wants to experience growth, how to create a place where recruitment matching for other types of people than those that have brought the company this far, this is the time to for businesses to meet this challenge.

Similar to healthcare, this is a task carried by the world’s businesses, which is why the successes of international enterprises set a global precedents, and why the potential for services themselves to expand globally is yet to be realized.

Translated by Connor Kirk
Edited by Masaru Ikeda

With 18M global downloads, Noom CEO looks to the future of fitness tech

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We’ve covered the New York startup Noom several times in the past. Noom is a popular diet/fitness app with over 18 million downloads globally. Back in August, the team launched its Japanese version with its Android app ‘Noom Diet Coach’. The app was updated today with a new group feature that had been available to US users since May. Based on a user’s target weight, age, sex, and location, the app automatically adds users to their groups. Because of their similar characteristics and goals, these groups can be a big motivator to Noom users. On the release of this new feature app we asked Noom CEO, Saeju Jeong, a little about team building, the challenge of launching and marketing in the Japanese market, and the future of the healthcare sector. The Bridge: Tell us a little about your background and how you ended up starting your own business. Jeong: I was raised in the country side in South Korea, and went to Seoul to study electronic engineering at HongIk University. I started my first media business, a record label at age 19, and it quickly took over the Korean music market. I moved to New York in 2005 after dropping…

Noom-Saeju-Jeong

We’ve covered the New York startup Noom several times in the past. Noom is a popular diet/fitness app with over 18 million downloads globally. Back in August, the team launched its Japanese version with its Android app ‘Noom Diet Coach’. The app was updated today with a new group feature that had been available to US users since May. Based on a user’s target weight, age, sex, and location, the app automatically adds users to their groups. Because of their similar characteristics and goals, these groups can be a big motivator to Noom users.

On the release of this new feature app we asked Noom CEO, Saeju Jeong, a little about team building, the challenge of launching and marketing in the Japanese market, and the future of the healthcare sector.

The Bridge: Tell us a little about your background and how you ended up starting your own business.

noom

Jeong: I was raised in the country side in South Korea, and went to Seoul to study electronic engineering at HongIk University. I started my first media business, a record label at age 19, and it quickly took over the Korean music market. I moved to New York in 2005 after dropping out of the college so I could achieve a little more. I built my connections and a network from scratch, and ended up working as an executive producer for the broadway musical Bye Bye Birdie, hiring some of the top talent in the industry. I met my cofounder, Artem Petakov, in 2006. We cofounded WorkSmart Labs (our former company name) in 2007.

The Bridge: Was founding a company in Korea an option for you?

Jeong: No. From the start of the company, my idea was that in Korea we would fail to get the sort of top talent needed to build a truly strong global company. If I want to build a global company, its going be hard to hire the such talent in Shanghai, Korea, etc. NY was simply the best location to hire the best talent, and that would accelerate the company’s growth. I came to NY with no network, but I knew I would find something once I came here. You don’t really know until you take the risk and do it. But I see that sort of risk as an opportunity.

The Bridge: What qualities or skillsets would be ideal for entrepreneurs?

Jeong: It’s those who are always curious about new things, those who like solving problems. If you believe you can fix the problem, that represents tremendous energy to overcome future struggles and obstacles. There is no manual to fix a problem. So you just have to figure it out. Use the best knowledge you have and then move on.

The right stuff

The Bridge: What do you look for when you’re hiring for Noom?

Jeong: (cites three things)

  1. The skillset that meets the job description (engineering, marketing, business… any position) – this is basic.
  2. Communication skills – teamwork cannot be done without communication.
  3. Integrity

The Bridge: What word would be the most appropriate to explain the current Noom team?

Jeong: I would say that they’re smart, open-minded, and like a family.

The Bridge: How do you go about finding talent?

Jeong: All kind of channels – we do everything to get the top talent. It’s just like dating – if you want to date someone, you try every single way to attract that person. We are open to every opportunity that will let us hire the best talent. Our bar is very high. The interview process is very long and tough, and it’s not easy to get into.

Noom-team

The Bridge: Who are Noom users?

Jeong: Most users are female in their 20s and 30s, and even their 40s. More than 40% of our users stay with Noom even after 2 years. Some users want to lose weight for a special occasion, others just to look better and gain confidence. Many women after having a baby, perhaps they gained weight and want to lose it.

The Bridge: What do you care most about your product?

Jeong: Results. We want to deliver a product that enables users to get good results through better habits and better lifestyles. This drives how we improve the service, through the UI, etc.

The Bridge: Why should users choose Noom over the many competitors out there?

Jeong: We are different from all those healthcare products. Noom provides intelligent nutrition/exercise coaching plus motivational support, 24/7, all available in your pocket! So it’s sustainable in the long term. We also know that logging is important, but we also know that it is hard to keep logging. So we analyze the data of users, and provide active coaching. What we are promising is very difficult. We want to build an AI and its not easy at all. We learn everyday how users are behaving and make changes to our product.

Local understanding

The Bridge: Do you localize features and the app itself to suit local markets?

Jeong: Features and designs are universally the same because our strength is our background in technology and design. We are truly proud of our talented engineers’ and designers’ work on the product so far. But we do have localized task content, the food database, etc, to serve Japanese users.

The Bridge: What do you think you need to be the most careful of when marketing to the Japanese market?

Jeong: We are a startup so we move fast, and make judgements quickly too. So we will need to stay patient, not judging the market too fast. Setting an appropriate timeline will be very important. Also, taking care of the voices of locals will be important too. The message and language towards users in the market has to be 100% local. I respect the lifestyle of Japanese people. What we are good at is providing the right technology, but we don’t want to be just a “Made in the USA technology company,” no. There is a saying that “the customer is the king” in Korea, and this applies to Japanese users too. We are from New York, but if one user is not happy about our service, we listen. That’s how we have developed our product and how we can improve the product as well.

The Bridge: How do you promote Noom?

Jeong: We always emphasize that we don’t over-market like many other weight loss service providers. In US, we have incurred no user acquisition cost, ever. We focus on service quality and interact a lot with users. We listen carefully to what they need. But we have global partners such as Curves, the world’s biggest fitness gym chain, Amore Pacific, a famous Korean cosmetic brand, as well as well institutions like the NIH (National Institution of Health) and the United Nations. Collaborating with those global partners will definitely help make our brand trusted by users, so we’d like to continue working with partners that have the same goal of helping people live healthier through diet and exercise.

The Bridge: Do you have a different approach to different markets?

Jeong: We are savvy about how people’s needs differ by country. Why people want to lose weight is different in the US, Korea, Japan, etc. So we will differentiate the messaging accordingly.

The Bridge: How do you see the mobile wellness/fitness sector in the future?

Jeong: I think wearable devices are disrupting the hardware industry. Laptop features have improved dramatically, with faster CPUs. Smart phones improve every six months. […] We started seeing wearable devices recently, not many yet, but these new devices are going to be disruptive – cheaper, durable, lighter, faster. As a software maker, we see it as an opportunity. Software makers create more fun, interesting services, and create ecosystems. There are more than 100 companies who make wearable devices like Fitbit already! We can provide a better software experience, lighter, cheaper, and faster. People will be used to seeing more of this kind of things, and the entire market will grow faster than ever.

The Bridge: Is there any interesting new service or product you think is particularly interesting?

Jeong: A food scanner, which will be on the market in two years. It scans food or drink and tells you the calories. Galaxy gear and wearable device will also be disruptive.

The Bridge: Do you expect partnerships with local companies?

Jeong: I think there are many ways to work with Japanese organizations. Medical organizations can be one. More broadly, we see potential partners in those who are focused on helping people live healthier with diet and exercise. Naturally this opens us up to a wide range of partners, so we’re exploring where’s best to begin.

The Bridge: Where will Noom be in three years?

Jeong: I think Noom will do more in the healthcare eco-system, eventually. The opportunity to improve health just by improving diet and exercise is extraordinary. Those two things alone can powerfully improve many aspects of health. Diabetes prevention, your heart, overall energy levels, not to mention the emotional benefits that come from improving physical health. The impact can be tremendous.