The Future of Blockchain and its
Impact on Management Innovation
2020 ＫOBEA Uzbekistan
UZNEX Opening Ceremony

Yuji Akaba
Advisor of Infinity Blockchain Group and KOBEA Groupakaba@b-t-partners.com
http://www.linkedin.com/in/yujiakaba
January 20, 2020

6 years as Design Engineer
1

MS in Mechanical Engineering atStanford University in USA2

14 years in McKinsey, opened Seoul Office

Helped Korean business groups for 10 years intheir achieving miracle growth
Commuted 500 times in 10 years between Seouland Tokyo
Developed more than several hundreds of Change
Agents in LG Group who can lead management
innovation
Deployed more than one hundred McKinsey
consultants from all over the world for the client3

Cofounded in January 2002

Cofound start-ups, with extremely hands-on
approach, helping entrepreneurs
Not a venture capital
Help management innovation of large companies

4The third largest motorbike
company in India.
5

Infinity Blockchain Group with 300 blockchain
experts

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Published 20 books in Japan and 19 translated in US,
China, Taiwan, Korea and Thailand. Total 760,000 copies,
all for skill building and management innovation

Anybody can grow substantiallywithin several weeks by writing
A4 memos 10-20 pages a day
The simplest way to become
smarter and quicker in decision
makingVery effective way to develop
strong leaders for management
innovation

URL: https://www.amazon.com/Zero-Second-Thinking-simplest-improving/dp/1642730467

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Now,

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In the world, competition isgetting fierce.
And, leading players arebecoming even larger and further
dominant

9Market Cap Top 20 @April 30, 2019
Microsoft$1Trillion
Amazon$948Million
Apple$946Million

Alphabet
FacebookSamsung
Source: https://bit.ly/2ri0xl3

Toyota Motor is 45th with $180 Billion. 10

Market Cap Top 20 @December 31, 2019
AramcoApple$1.3Trillion

Microsoft$1.2Trillion

Alphabet

Samsung$922Million → $1Trillion
AmazonFacebook

Source: https://bit.ly/2ri0xl3

Toyota Motor is 41th with $199 Billion. 11

Leading players are preparing
for the era of blockchain

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Early adopters of blockchain applications

and many more . . .
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“I pay special attention to blockchain and Bitcoin to create
cashless society.”“Blockchain technology as a whole is a powerful innovationthat could enable a completely cashless society.”“Blockchain is about trust, credit and security.”

Source: https://www.ccn.com/jack-ma-i-pay-special-attention-to-blockchain-bitcoin-to-create-cashless-society
https://www.youtube.com/watch?v=F8XwIZFHkwc

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Blockchain will provide larger
business opportunities than Internet
because it transfers value

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However, the window ofopportunities may not last long16

No time to wait and see

Many pilots
andexperiments

Adopted inremittance,
supply chain,
Insurance & ID

Early movers will
move very
aggressively andaccumulate knowhows

Leading players
will begin tobuild platform,
where followershave little chance
to survive

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Then, how should we accelerate tointroduce blockchain technology?

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Blockchain implementation does notgo easily, does not go alone.

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Management innovation should
proceed first to have rationalizedbusiness structure and practice20

Seven keys to accelerate management
innovation
1. Change vision and strategy, and let everybody know
2. Rapidly improve existing businesses
3. Develop multiple new businesses
4. Assign dedicated management innovation team
5. Introduce Human Resource Development Committee
6. Innovate manager-subordinate relationship
7. Introduce positive feedback and active listening
throughout the organization
Source: https://b-t-partners.com/English-articles/5689

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Pitfalls we should avoid while executing
management innovation
Have too high expectation for the rate of change. It would
take at least one year to feel the first change.

Show a contradictory attitude for the management innovation,
often seen by the CEO and senior executives. Typically, CEOand senior executives do not practice what they preach.
Appoint only a few, rather weak people and expect that theywould change the organization.
Give up the effort in the middle. People would be confusedand demotivated. Management innovation would take typicallymore than five years because the entire behavior of the people
and company must change.
Source: https://b-t-partners.com/English-articles/5689

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Lean start-up approach for deploying
blockchain
A Project

B Project

C Project

Businessdecision▼

2 months

4 months

Initial planning andvalue proposition

MVP development and pivot, refining thebusiness plan

System development

・・・

System development

・・・

Businessdecision▼

2 months

4 months

Initial planning andvalue proposition

MVP development and pivot, refining thebusiness plan
Businessdecision▼2 months

4 months

Initial planning andvalue proposition

MVP development and pivot, refining thebusiness planTerminate

2 months
D Project

Initial planning andvalue proposition

MVPdevelop

2 months

E Project

Initial planning andvalue proposition

MVPdevelop
23Build a dedicated expert team to implement
blockchain technology
Top management

Y Laboratory
X Laboratory

New businessdevelopment teamDirectreport

C BU
B BU
A BU

- Manage the entire scheme- Facilitate outside investment
Core team- Allocate proper resource- Provide management support

Projectteams

Outside resourceBU head

People,technologies

Spin out
from
BUs

Spin out
fromLaboratories

Establish
start-ups

Buy back options
Acceleratebusinessdevelopment

People,technologies

People,technologies

JV

Start-ups
People,technologies

VC withrelevant
synagies

People,technologies

24In order to accelerate this change,
IBH opened BINARYSTAR, thelargest blockchain business hub inJapan in the middle of Ginza25

1000㎡ with capacity of 300 people conference26

300 participants at opening ceremony onFebruary 1, 201927

BINARYSTAR business network with major
blockchain players

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Major Japanese players attended
BINARYSTAR Opening Ceremony

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BINARYSTAR monthly business hackathons30BINARYSTAR blockchain seminars andworkshops

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We all work together to make Uzbekistan and Korea
very successful based on dedicated support

Uzbekistan
JapanKorea
TaiwanHong Kong

Malaysia

Singapore
Indonesia

32For any question and discussion,please feel free to contact:akaba@b-t-partners.com
I am always very quick in gettingback to you.

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Yuji Akaba is a shareholder and an advisor of Infinity Blockchain Holdings based inSingapore, which is a parent company of Infinity Blockchain Labs, one of the largest
blockchain R&D companies with 200 people in Vietnam. IBH has operation in Thailand
and Malaysia working closely with associations, universities and governments. Yuji is acore member of other blockchain startups in Japan.
Yuji Akaba is also an advisor of KOBEA Group.

Yuji is a Managing Director of Breakthrough Partners based in Tokyo. The mission ofBreakthrough Partners is, first, to help entrepreneurs build successful start-ups.
Second, to help large corporations in their management innovation, leadershipdevelopment and succession management. Yuji's uniqueness is to work closely withCEOs to accelerate leader/manager development while executing various strategy
development, profit improvement and organization effectiveness projects.
"The Seven Keys to Accelerate Management Innovation“
https://b-t-partners.com/english-articles/5689
Yuji published 20 books in Japan and 19 of them published in US, China, Taiwan,Korea and Thailand, total 760,000 copies in skill and perspective development.
https://www.amazon.com/Zero-Second-Thinking-simplest-improving/dp/1642730467
Before cofounding Breakthrough Partners, he was a partner at McKinsey & Company,
spending 14 years. He spearheaded McKinsey's practice in Korea, growing beyond 120
staff in less than 10 years.
Prior to McKinsey, Yuji worked six years as a design engineer at Komatsu.
He holds a BS in Mechanical Engineering from University of Tokyo, an MS and theDegree of Engineer in ME both from Stanford University.

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