Tokyo Becomes a City of Sports and Technology

Sports × Technology = Sports Tech Heats Up Tokyo!

2019, Rugby World Cup.
2020: Tokyo Olympic and Paralympic Games.
2021: Kansai World Masters Games, FINA World Championships.

Over the next few years, Japan will host a succession of major international sporting events.

These events will also serve as a showcase for the latest systems and infrastructure, presenting them to people around the world.
 

The Japanese government's "Japan Revitalization Strategy 2016," approved by the Cabinet, set numerical targets for the growth of Japan's sports market.

Tokyo is poised to become the city with the strongest "sports atmosphere" in the world. When people, assets, ideas, and capital combine with this sports atmosphere, numerous new technologies and businesses will emerge.

In 2019, Dentsu Inc. and venture capital firm Scrum Ventures (San Francisco, USA) will run the global acceleration program "SPORTS TECH TOKYO" ( https://sportstech.tokyo/) for approximately one year. This program targets startups worldwide with a broad focus on "sports."

An acceleration program supports startup growth through mentoring and networking while seeking collaboration and investment from partner companies. In this series, members of the program's operating team will appear to share insights on what technology brings to sports from several angles.

This time, Fumihiko Nakajima of Dentsu Inc., who has extensive experience supporting startups and open innovation initiatives at large corporations, introduces the program overview on behalf of the operating team.

An Acceleration Program Aiming for Proof-of-Concept

SPORTS TECH TOKYO recruits and supports startups with outstanding technological seeds and unique ideas.

Specifically, we match them with numerous experienced mentors and, separately from the mentors, welcome influential figures from the sports world to an advisory board, also providing opportunities for proof-of-concept testing.

Alongside startup support, another key theme is promoting corporate open innovation. Within the vast category of sports, any company can find points of contact and the potential to create new businesses.

Connecting these companies (partners) with startups and building a new "business co-creation community" centered around our two hubs in Tokyo and San Francisco is also a major goal for us.

We, the Dentsu Inc. Future Business Tech Team (FBTT), have supported corporate innovation across various fields, including the robot pilot project "Haneda Robotics Lab" at Haneda Airport's passenger terminal and Sony Music Entertainment's acceleration program "ENTX".

FBTT's defining characteristic is that we don't stop open innovation at the "seed" stage. We leverage Dentsu Inc.'s connections and know-how to take projects from proof-of-concept to full-scale implementation. Now, FBTT is joining forces with Dentsu Inc.'s sports division and affiliated companies as a company-wide project to tackle the massive category of sports at precisely the right moment.

Additionally, Scrum Ventures, a global investment firm, shares significant overlap with FBTT's work in "supporting startups" and "building open innovation platforms for large corporations." Leveraging each other's strengths, they have decided to jointly operate the program.

In this series, we'll also feature members from Scrum Ventures, bringing you the atmosphere from their San Francisco hub, which stands alongside Tokyo as a key base.

From entertainment to healthcare, sports tech is incredibly broad!

Technological transformation is advancing across various fields: FinTech (Finance × Tech), InsurTech (Insurance × Tech), EdTech (Education × Tech), and more. So, what exactly is SportsTech?

Take training, for example. While traditional treadmills meant running alone in silence, subscription services in the US are gaining popularity, allowing users to train while communicating with a coach via video chat.

Or consider the spectator experience. Technology like 5K cameras covering entire venues—over 30 units providing crystal-clear HD images from 360-degree perspectives—is expanding how we enjoy sports.

Stadium solutions also exist. If biometric authentication technology eliminating the need for tickets becomes widespread, spectators will enjoy stress-free, smooth movement within the venue, while sports organizations will benefit from improved audience attraction and service quality through data collection.

We broadly categorize sports tech into the following three themes:

• Play Sports
• Watch Sports
• Support Sports

This technology benefits both professional and amateur athletes. While primarily focused on physical aspects like data analysis, team management, and healthcare, it also encompasses eSports and fantasy sports (virtual sports linked to real athletes' performance).

This technology creates content expansions to enhance the enjoyment of sports, such as information apps and media that boost fan engagement, VR, and unprecedented viewing experiences through high-resolution video.

This technology supports peripheral businesses that bolster sports from a broader perspective. It includes ticket systems and stadium solutions.

This illustrates how broadly the term "sports" encompasses.

Technologies born from this program may be implemented widely across society, extending beyond the realm of sports. Conversely, technologies seemingly unrelated to sports could spark chemical reactions when connected to the field.

Don't assume "sports have nothing to do with my business"—we encourage everyone to participate.

Stay tuned for unique case studies featured in this series!

An opportunity for explosive growth in Japan's sports business

See the diagram below for the program's general flow.

As of December 2018, we are currently in the "application period" accepting applications from startups. The deadline is January 31, 2019, at 11:59 PM (Pacific Standard Time). Application details can be found here.

After the deadline, applications will be reviewed to select 150 participants and an additional 10-20 finalists. Finalists will participate in the "Business Development Program," the first half of the overall program, featuring regular sessions with mentors tailored to their specific challenges.

This program stands apart from typical accelerator programs, distinguished by two key features:

Feature 1: A program advanced with an exceptionally distinguished mentor team and advisory board

Mentors include specialists from diverse fields, ranging from marketing leaders in major sports to legendary investors, all bringing extensive experience and knowledge ( official website ). Startups are matched with mentors perfectly suited to their specific challenges and goals.

Additionally, beyond the mentors, influential figures from the sports world collaborate as an Advisory Board. From Japan, participants include Kiyotaka Suhara, Managing Director of the Japan Football Association; Masaaki Okawa, Chairman of the B.LEAGUE; and Yuki Negishi, President of Pacific League Marketing.

Connecting with them could be the catalyst to rapidly expand your technology globally.

Feature 2: Opportunities for "Proof of Concept" and "Implementation" Beyond Demo Day

Following the mentoring period, a World Demo Day will be held where each company showcases its technology to attract investment from corporations.

What's unique is that it doesn't end with the Demo Day; an "Activation Program" is prepared for the latter half of the program. With the cooperation of teams and organizations, this program provides abundant opportunities for "proof of concept" and "implementation" at stadiums and matches, aiming to take the seed to actual services and business.

 

We held information sessions for this program in four cities: Tokyo, New York, Boston, and Chicago. Thanks to everyone, they were a huge success. We were particularly struck by the passion of the participants and the diversity of their backgrounds. We believe many people who love sports were seeking a "place" to channel that passion into tangible form.

Perhaps there hasn't been much of an open community where stakeholders from different sports could gather to accelerate innovation.

Compared to Europe and the US, Japan's sports business remains relatively small despite its large sports population and popularity. Conversely, this indicates significant potential. With the world's attention focused on Tokyo, this moment presents a golden opportunity to catalyze explosive growth in Japan's sports business.

I sincerely hope many innovations will emerge.

At the Tokyo briefing session, former Japan national soccer team coach Takeshi Okada and others took the stage to share their expectations for sports tech. Keisuke Honda, who wears many hats as a soccer player, coach, GM, and executive, also contributed a video message. Olympic medalists participated through open applications, making it an event brimming with anticipation and passion.