Erik Hallander × Hidetoshi Tokumaru (Part 2): Sharing mutual insights to create new value

On July 1st, Dentsu Inc. iX (pronounced "eye-ex"), specializing in digital solutions, was newly established following a name change from the former Dentsu Razorfish. Following the first part, President Hidetoshi Tokumaru of the company and Eric Hallander, Mobile & Innovation Director at Isobar Asia Pacific, discussed their expectations for the collaboration.

 

VR technology will transform society within a few years

 

Tokumaru: We've discussed the characteristics of Isobar's organization ( see Part 1 ), but I'd like to delve a bit deeper into technology. What technologies are you currently focusing on, Eric?

Eric: One is invisible technology. When we think of cutting-edge tech, obvious examples like robots come to mind. But actually, behind our lives, there are many invisible technologies quietly working to enrich our lives. Take smartphones—various advanced technologies add value beyond the basic phone function, and everyone uses them conveniently as a matter of course.
Another area I'm interested in is "emotional response"—technology that evokes some kind of feeling. These technologies are first and foremost visually appealing. Think Apple Watch or various virtual reality (VR) projects. They make you think, "That's cool, I want to touch it," and then emotionally move those who experience them. That's the kind of technology I'm focusing on.

Tokumaru: Regarding VR, Eric also discussed it in his keynote at the recent AdTech Tokyo International event. Do you think it will become a major theme influencing future communication businesses?

Eric: Yes. Within a few years, it will transform society. While VR is still in its early stages, seeing the products already utilizing it and the industries aiming to adopt it, I'm confident it will become something everyone in this industry will inevitably encounter and explore.
At Isobar Australia, we currently have five VR-related projects underway. While each has a different focus, none are mere gimmicks for PR. They all serve to stimulate emotions and "unlock" feelings, as I mentioned earlier.

 

Tokumaru: I see. What are some recent examples?

Eric: For General Motors, we launched a VR platform called " CoDriver." You get in the car, put on an Oculus, and experience a virtual space that feels like you're actually driving. At motor shows, they've already started offering driving experiences in the Colorado pickup truck—through Morocco's desert and New Zealand's mountains. The car vibrates to match the terrain, making it incredibly immersive.
This development took a full five and a half years. While that represents significant investment, the company developed it as a long-term solution, so we plan to make it available at dealerships going forward. We intend to shoot content in different locations, expand the offerings, and continuously make the experience more exciting.

Failure is inevitable in new frontiers—it's what you learn from it that matters.

 

Tokumaru: You mentioned VR will transform society. Do you envision it eventually entering ordinary households, enabling direct communication with consumers?

 

Eric: Exactly, that's what I believe. For instance, Sony is also prioritizing VR, releasing headsets for PlayStation, right? Oculus will likely increase opportunities for the general public to experience it through events and such. The fact that such influential companies are getting involved in VR means it will undoubtedly become commonplace for consumers in the near future.
Therefore, if you're dealing with communication, it's an indispensable theme going forward. Agencies that start studying it now will likely have a brighter future. There will be many failures in new areas, but you just need to learn from them.

Tokumaru: Eric, have you ever failed at anything?

Eric: Of course, plenty. If you're truly trying to learn something new, failure is inevitable. Failure is the best material for understanding what works and what doesn't here.
That's why leaders must foster a culture that doesn't punish failure but embraces it. We often hear "fail fast, fail often" meaning learn quickly and learn from many failures, but I prefer to say "learn fast, learn often."

Tokumaru: That's great. In large corporations, the culture of tolerating failure and developing with speed tends to fade, but it's something we need to be conscious of.

Eric: I often hear the opinion that we should learn from startups, but I think what that really means is "work faster." Both Dentsu Inc. iX and Isobar have grown to their current scale for a reason, so I believe we should value and leverage that.
It's crucial to leverage our strengths while advancing relentlessly. I firmly believe this industry must evolve daily. If our work becomes commoditized and anyone can do it, our business model will naturally face threats. That's why we must constantly look several years ahead of what we're doing now to survive. VR is one such example.

 

Tokumaru: I agree. We must aggressively pursue new phenomena and ideas that transform communication, including technology. I feel Japan must also prioritize this.

Sharing mutual insights to pursue new innovation

 

Tokumaru: At Dentsu Inc. iX, we plan to further strengthen collaboration with overseas companies within the Dentsu Group going forward. Since its predecessor days, our corporate concept has been "Innovative Experience," which is where iX comes from. I think our business content is particularly close to Isobar's, so I expect the number of actual initiatives we undertake together will increase.
As we've discussed, we want to learn from Isobar about technology-driven innovation while also absorbing how they foster the organizational culture and structure that enables it. Their "nowlab" framework for sharing insights from global research, along with their cross-functional hackathon events, are also very interesting.

 

Eric: "nowlab" was originally launched to connect Isobar's various locations, serving as a company-wide data bank accessible to everyone. This applies to hackathon utilization too—it's crucial not to let learning remain individual, but to share insights and consider how they can be transformed into value within one's own country.

Tokumaru: It's wonderful to see activities sharing insights across locations progressing. We'd like to participate in those and contribute in some way.

Eric: At Isobar, we can provide technology-related help and consulting. On the other hand, Dentsu iX has rich expertise in traditional advertising, an area where we aren't yet as strong, so we'd like to learn from that. We'd love to work with Mr. Tokumaru and the iX team to become a force that bridges both digital and traditional media, driving innovation.
To achieve that, we first need to understand what each of us can offer and get to know one another. The next step might be sharing "nowlab." If staff exchange programs become possible, I think all our staff would be eager to participate.

Tokumaru: That sounds great! I'm sure the iX members would also love to visit Eric's place.

Eric: Australia has its charms too—palm trees and beaches (laughs).