Will Future Cars and Appliances Evolve Through Downloads? IoT from the Manufacturing Frontlines ~ Mr. Akinori Takahagi, Representative Director of Moff

Takahagi: The concept is to turn all your movements into toys. You download the app to your smartphone and wear the watch-like Moff Band on your wrist, connected via Bluetooth. For example, if you make a pistol-shooting gesture, you hear a pistol sound. If you make a sword-swinging gesture, you hear a sword sound. If you make a drum-beating gesture, you hear a drum sound. For drums, it even recognizes the location in the air. You can play distinct sounds—like drum sounds in this space or cymbal sounds in that space. This works by the app analyzing the hardware device's movements and linking them to specific effects to create the experience. A key feature is that functionality can be expanded simply by changing settings in the app. By downloading apps, it can transform into any kind of toy. We plan to keep adding more apps. Sometimes we'll create them ourselves, and other times we'll involve various people in the creation process. The benefit of being able to expand simply by changing the software is that it allows us to collaborate with many different people.

──For example, unique products like internet-connected LED bulbs are already being released as IoT-related items. Are there any among these that particularly caught your interest?

Takahagi: While the concept of IoT has some unclear aspects, what we're focused on is the evolution of Tamagotchi. Tens of millions sold worldwide, but the craze faded after a certain time. I believe the reason was that Tamagotchi wasn't connected to the internet during its peak popularity. As Mr. Kaufman also mentioned, if Tamagotchi had been connected to the internet or apps back then, we could have continuously transformed it into something different. The key is having that same accessibility that made Tamagotchi popular. Beyond that, I also think about how things that were popular in the past might have changed if they had been connected to the internet or apps. The benefit of connecting to the internet or apps is scalability. With scalability, you can do many different things with one device without needing to buy expensive, dedicated electronic equipment. The same applies to toys; you can have the same experience without buying the physical item. Children don't want the object; they want the experience.

──The term "IoT" itself actually dates back to 1999, and there were pioneering examples of IoT-like services, but they didn't really take off. Why did the term "IoT" suddenly start gaining traction this year?

Takahagi: I believe there are two main reasons: the widespread adoption of smartphones and the emergence of Bluetooth Low Energy (Bluetooth Smart), a low-power short-range wireless communication standard. While there are likely other factors, these are the aspects we're focusing on.

──I see. So the proliferation of high-processing-power devices and the lowered barriers for short-range communication were major factors.

Takahagi: Exactly . This year seemed like the perfect timing: everyone can use apps on their smartphones, and Bluetooth Low Energy became affordable. Smartphones have high processing power, and Bluetooth Low Energy kits—which bundle modules and sensors—are easily accessible. This makes it simple to connect things and conduct various tests.

──Regarding IoT, there are several aspects like M2M (Machine to Machine) where things communicate with each other, or M2P (Machine to People) where things interact with people. From that perspective, what are you focusing on?

Takahagi: I'm very interested in M2P, the machine-to-person aspect. More than machines delivering messages to people, I envision machines anticipating and acting on what people are thinking or intending.

──Overseas, Google's acquisitions of robotics companies have been making headlines.

Takahagi: I often visit the U.S. West Coast, and they're moving very aggressively there—it feels like they're already a step ahead. In other words, since devices and such have largely been exhausted, they're now at the stage of figuring out the next steps. It's no longer about dreaming; it's a practical discussion about where to aim next, and they're already in the implementation phase.

A Paradigm Shift to Hardware + Service is Necessary

──Some point out that IoT represents a "redefinition of hardware value" or a "redefinition of the internet." What are your thoughts?

Takahagi: I think the perspective likely differs depending on which industry you come from. Personally, coming from manufacturing in the automotive industry, I feel the concept of hardware has fundamentally changed. Going forward, we won't just build standalone hardware, nor will we focus on making hardware more component-rich or feature-rich to increase functionality. Instead, the emphasis will shift to software, with hardware optimized solely to run that software as efficiently as possible.

──So it feels like a major shift in the direction of hardware itself?

Takahagi: More accurately, it's that the functions traditionally handled by hardware are being replaced by software, leading to greater scalability and significantly lower costs. For example, automobiles used to be essentially collections of mechanical parts. But in the mid-2000s, foreign automakers first implemented software-based brake control. At the time, there were recalls and debates about the safety of controlling core components with software. Now, every manufacturer does it as a matter of course. As software integration advances, devices can be updated online, enabling feature additions and bug fixes. Consequently, hardware increasingly serves merely as the point of human interaction, while functionality and value are primarily provided by software or added via online channels. I believe hardware must now be considered within a hardware + service framework. Of course, existing hardware already involved maintenance and aftercare, but connectivity enables constant updates and communication, amplifying this aspect and strengthening the ongoing service connection.

──I see. What about the point regarding "redefining the internet"?

Takahagi: For those in the internet industry, it likely feels like they're increasingly penetrating the physical world. Direct connections between real people and physical objects weren't fully achievable with the internet alone, but hardware integration has certainly made this possible.

──From the perspective of existing industries, might there be a sense that the internet is encroaching on them, posing a certain threat?

Takahagi: It certainly is a threat. Take automobiles: I believe several parts and control units could be replaced with software, and steering wheels might even become unnecessary. We're seeing concrete examples of existing components being replaced by software. In the future, instead of buying a new car, you might download engine functions. There are various constraints, so it's not simple, but wouldn't that be fascinating?

──I see. It's conceivable that downloading software could improve a car's fuel efficiency, right? The automotive industry is said to be at a major turning point, with the influence of companies like Google and Apple growing significantly.

Takahagi: For example, Google is actively pursuing autonomous driving, but the auto industry has long worked on things like automatic parking. I see current developments as an extension of that. However, cars are the king of hardware. For companies to seriously enter this space, they'll need significant capital investment, personnel, and accumulated know-how. Since human lives are involved, regulatory issues will also have a major impact. That said, since every car has a central control unit, if that core component starts running on Google or Apple's OS, it could lead to major changes. Theoretically, there are many benefits to having internet connectivity. Airplanes already use autopilot systems, and looking at the industry as a whole, I think the software-based evolution of braking systems has been a major topic.

──Beyond the automotive industry, where else do you see major changes coming?

Takahagi: Fact-based evidence shows the sports industry in the US is clearly transforming. Wearables capture data, enabling data-driven coaching, strategy development, and health management. For instance, visualizing muscle usage provides data-based insights to prevent injuries or enhance performance, equipping coaches with tools to advise athletes.

The "Ecosystem" Mindset Required for Future Manufacturing

──Currently, wearable devices gaining attention in IoT come in various forms like glasses, watches, rings, and contact lenses.

Takahagi: Many were exhibited at wearable conferences, with clothing being the most common form, primarily incorporating healthcare-related functions. One interesting example was a mouthpiece. American football players wear it to measure their condition during play, especially impacts, for managing injuries and damage. There were also shoes resembling roller skates equipped with artificial intelligence to assist walking.

──There are also wearable devices controlled by brainwaves.

Takahagi: Brainwave-based devices often have a psychedelic look, especially overseas ones, which tend to be mechanically bulky and sci-fi-like. But I think Japan's strength lies in being able to create things like "necomimi," where cat-shaped ears attached to your head move. However, it still feels unclear how brainwave technology will be utilized going forward.

Another challenge with wearables is "accuracy." Even when collecting data, we face questions like: Are we truly capturing data as accurately as humans perceive it? For example, the same data might yield different values depending on the device worn.

──As wearable devices evolve, I imagine the user interface for information terminals will change too.

Takahagi: That's a theme we're very conscious of. I believe the need to boot up a computer and input commands every time you want to do something will become unnecessary. If computers can judge or predict commands based on what humans are thinking or doing, there will be no need to deliberately instruct the computer. Back when the term "ubiquitous computing" was gaining attention, it was said that the ideal form of ubiquity was when humans weren't even aware of the computer's presence. I think the fundamental idea remains the same.

──Given that background, it seems the nature of manufacturing companies will also change going forward.

Takahagi: The design philosophy will change. We need to shift from pursuing hardware technology to focusing on how to combine software, cloud, and networks—how to connect them and build an ecosystem where connections emerge.

──Indeed, the concept of an "ecosystem," often discussed in the internet industry, may not be as prevalent in manufacturing.

Takahagi: We must change our mindset and approach to how hardware, software, and cloud function as a whole. When we discuss wearable products, we often get asked why the device itself doesn't have more features. From our perspective, we believe those features are better handled by the software. This often leads to misaligned discussions. Since hardware's primary role is as the user interface, the focus should be on design and usability. Beyond that, we need to consider whether functional aspects should be handled by the hardware or the software. If artificial intelligence starts controlling hardware through sensors and automatic recognition, we might not need all those buttons anymore. Having managed projects from planning to launch at a manufacturer myself, I feel this mindset is quite different from what I experienced then.

──It's been said for a while that Japanese manufacturing lacks vitality, yet there are many startups from the US and elsewhere in the IoT space.

Takahagi: When speaking with Japanese companies, I notice a strong emphasis on hardware-related questions. In the world of manufacturing, there's a natural tendency to want to make things hardware-rich. However, in the IoT world, I believe the key lies in how well we can suppress that impulse.

Connecting ideas and manufacturing: Crowdfunding and hackathons

 

──Komatsu, a construction equipment manufacturer, offers a service called "KOMTRAX." It connects construction equipment to a network for maintenance purposes. What's interesting is that by monitoring the operational status of this equipment through the service, you can gauge the local economy and even predict demand. Connecting various things like this can sometimes lead to new marketing approaches we hadn't previously imagined. What do you think?

Takahagi: Yes, I've been thinking about this from a marketing perspective too. When trying to communicate something using mobile, approaches like banner ads are visual, but they don't let people experience the actual product. However, for tangible things like cars, how you can experience them is crucial. That's where wearable devices come in. They can let you experience things like the motion of turning the steering wheel or the sensation of actually driving. Combined with engine sounds and movement, they can provide a feeling like you're test-driving it. Whereas the internet was previously just about seeing things, now you can experience them with all five senses and simulate them with realism. Initiatives are expanding where you can experience being somewhere without actually going there, or feel like you own something without physically possessing it.

──I understand Moff utilized the U.S. crowdfunding platform Kickstarter to launch its business. Kickstarter also offers new aspects as a marketing method.

Takahagi: That's right. While staying in Japan, and without meeting anyone, we received significant funding support from overseas customers. As a result, we could predict demand. This is something only crowdfunding can achieve. Furthermore, using Kickstarter led to extensive coverage by overseas media, which was surprising.

──You also participate in hackathons. How do you view them?

Takahagi: Meeting diverse people and creating what you want to make—that's the appeal of hackathons. Hosting them also offers various benefits. When companies organize hackathons and let others hack their technology, they can gain unexpected outputs. Since participants freely create what they want, it's highly likely to spark new ideas.

── Initiatives gathering ideas from the general public to create things have existed since the early days of the internet, but I don't recall many major success stories.

Takahagi: When it comes to physical products, even if you generate ideas or prototypes, they're often just tiny steps in the overall roadmap. Many challenges arise later on, requiring significant energy. Even if you have great ideas from the public, the question remains: how do you actually build them? And building them requires money.

── I see. Compared to that, crowdfunding and hackathons seem to effectively bridge the gap from idea to tangible product, as the people proposing the ideas also bear significant responsibility for the creation process.

Takahagi: Exactly. The person with the idea builds it up to the final prototype, and then the side providing funding or other support decides whether to back it or not. In manufacturing, I believe an idea alone has no value.

IoT that's also eco-friendly, and the future of IoT

 

──You mentioned being interested in the relationship between IoT and eco-friendliness. Since Moff toys offer multiple ways to play with just one device, they certainly have a positive eco-friendly impact.

Takahagi: Essentially, because it allows for functional expansion, it eliminates the habit of replacing items whenever you want a new feature. Also, since it's software-centric, the risk of component degradation over time decreases, extending the replacement cycle. This means fewer physical items need to be produced. To achieve this, I think it's crucial to first define what kind of value or effect you want to deliver. If you can adopt the mindset that while the physical objects might be different, the goal you want to achieve is the same, then anything is possible. For example, connecting an existing washing machine to the internet and changing its washing method via updates is probably difficult. But if we boldly rethink the washing machine's form itself from the perspective of how clothes and devices interact, that's another approach. First, redesign the washing machine as a versatile device capable of various actions. Then, define the ultimate goal simply as "cleaning clothes," and shift the thinking to "we can finely adjust the device's behavior with software." This way, many possibilities open up.

──If that happens, it seems possible that appliance manufacturers might start selling apps in the future.

Takahagi: Personally, I think that would be interesting. However, I want to emphasize that the hardware form factor and the functions assigned to it will likely differ from today. A fundamental shift in thinking is necessary, and that's what I believe is crucial.

──What do you envision the future of IoT will look like?

Takahagi: First, as technology evolves, the number of electronic devices might actually decrease dramatically. Also, from a wearable perspective, I think we'll reach a point where we don't need to operate them specifically; simply taking an action will trigger the desired effect. Furthermore, things like air conditioners might become unnecessary. If the goal is to lower a person's perceived temperature by reducing their blood temperature, wearable devices could directly cool the human body to achieve that. There wouldn't necessarily be a need to lower the room temperature itself with an air conditioner.

──What do you think will be the challenges as IoT advances in the future?

Takahagi: If everything becomes connected, the key will be how affordable and compact the network modules can become, and how long their batteries can last. While IoT technology itself is important, I feel it would be better if the ultimate benefits received more attention and discussions shifted to a customer-centric perspective. Since it's still a new field, it's often discussed purely as technology, but progress will accelerate if it evolves into a more natural flow where such a technical stance isn't necessary.