 Good afternoon. Namaste. This is my first visit to India. So I'm very excited and also I'm so humbled because Naras Chain invited me to Ajao India. And also I'm very proud of Ajao is becoming popular here and some of roots of Ajao was in Japan so I would like to share with you the thoughts today. And I will talk one thing, one more thing about Japan. I have been in this Ajao development movement for more than 10 years but in Japan we are still struggling in war for a rigid situation. So I would like to share that with you too. And I will discuss, I would like to discuss with you the difference between India and Japan situation. So my talk is two part. One is Ajao adoption is in Japan and the other is Nonaka's scrum. Do you know Nonaka? Yes, very good knows of course. He invented the word scrum. So I will look later into it. So gender would be, I will introduce myself a bit and then I will talk to you about Ajao adoption situation in Japan and then I go on to Nonaka's scrum. So before I coming to India I did a bit of research and how Ajao is going on here and how Japan is accepted in India and I found this one. I was so surprised but because do you know Drayman? Oh and anyone knows Drayman? Do you know this is from Japan? Yes. This a cartoon is my elementary school cartoon. So it's about more than 35 years ago in Japan and still alive. It's amazing. You started in 67 or something right from this series? Yes I was born in 1966. So yeah it's very old. I'm very proud to see Drayman here and I'm a book translator also and I translated all those early XP books and lean books and Ajao project managing books and I myself wrote books about object-oriented things, UML things, my mapping which I will talk on Saturday and my new book is about scrum and with Nonaka-san, authored by Nonaka-san. The title it's in Japanese sorry but the title is Ajao on scrum, collaborative software development that connects customers, engineers and managers. And I also work for a company called Asta.net or ChangeVision and we have been developing this UML mind mapping integrated tool. By any chance do you know this Asta or Jude tool? Anybody? Oh thank you. In Japan it's very well known and in Brazil lots of people know about this. We have an iPad badge and Windows Mac passion. A bit of my story. In 2008 I was a recipient of a Golden Pest Award and nice Jane who is chair of Ajao India was also a 2007 winner of Golden Pest. Okay let's start the talk. So I was also surprised this is famous too, right? And this one too. And I will show you the amazing. Japan is very good at cartoons and my friend who is in B.O.D.E. that's B.O.D. and they created Japanese version of scrum in one picture. It's amazing isn't it? And to me India is like this and our most famous Indian thing in Japan is this. Do you know this one? Of course. Yeah a lot of fan of this movie in Japan. He is still famous. He is still famous? Yeah. Really yeah Japanese love those dancing movie. Okay this is a short small research I did that Ajao would turn Ajao. I Google searched the trend and UK say UK this is starts from 2005 but has been all this way but Google trend just start this here. And India is so big. Ajao is so big and coming down and Brazil is coming boost boosted sword in 2009. Do you know why? Because India yeah Brazil is also doing outsourcing business from US and UK and they are in the same time zone with the customers. So they used Skype or other net meeting tools to real-time communicate with customers. So I suspect this shooting is the American companies found a good place to outsource their IT divisions. And Japan here always low. I don't know I'm very sad but I have been struggling with this situation for this 10 or 11 years but still here. This is by country. Japan India is very hot and Brazil getting hot and of course US UK and North American area and Europe are hot was hot. And I was involved in research funded by IPA which is a Japanese government funded project. And I did some research and it says that Japan is behind in Ajao adoption and it's the cause maybe in industrial structure and where user company and SIR divided by contract and SIR has a lot of subcontractors. I don't know this SIR term communicates well here but they are it did communicate well yeah system into this. In Japan there are several or or six depending on the counting but SIR is a big big SIR and they contract with companies we call user companies who do business with IT or who reduce costs with IT and a contract then SIR divided into pieces and subcontract to small houses. And that was one reason. And in Japan job is also a long term considered long term life decision and changing job in Japan is looked at something bad. So we stay in a company it's we consider company as a family so engineer terminal rate is very low. So that's one of the reasons too. This is the number this number is from Scrum Alliance the boost of a Scrum master's number of Scrum masters. It's very becoming very rapidly popular. I don't think this is the main key index but it says something and I do research too. This is a number by countries. United States always is different scales much most portion of the master's are in the United States and second UK here in the same scale China Denmark Brazil. And I researched the number here Japan and India. Japan like this very low still low India. Oh good. Very big number. So so I analyzed my why Japan is so behind about this picture I draw as I said there is a user company who uses it for business or internally and it has a it department and it's always small in Japan. It department make a request or requirements and as I contract with them and divide into after houses so structures like this and here's the main contract. Here's the main contract and here's another subcontract and here's another. I once heard that this contract chain eight levels eight levels contract so that all the way here leaf of the engineers is like two people company or something like that and they all this is higher control or they they think they are controlling the whole project. And this contract chain is one team is in order to do a good agile. We have to make this a whole team. But this whole team consists of those people divided by contracts and contracts. So sharing goals is very difficult. Great. In the traditional model. What's the is there any statistics on the amount of customer satisfaction in the user companies with what they're getting like fitness for purpose. I don't have with it with me right now. Yes. Yes. Yes. Do you have any informal sense of how happy the user customers are with this model in terms of getting what they want. Yes they are unhappy. Unhappy. Yes. I mean the unhappy situation for 10 years. And yeah I'm struggling with this situation. I'm trying to change this. So I started agile Japan like agile India. And I have in 2009 I invited Mary Popendick. And I also invited Kurewa Sato-san from he is an ex Toyota manager. And I would I wanted Mary to talk about TPS through the production system. And I wanted to Kurewa-san to talk about agile. So the TPS is well now in Japan through the production system. And second year I invited Alan Chowlai. And if you're not a sensei who about whom I'm talking later in the session. So it's changing. It's changing gradually. It's changing. What prevents the main IT department to hire their own employees. Yes. Yes. What prevents them. Why do they don't do that. Why do they make subcontract and for the subcontract. What is the reason. The project size always varies. So they do not want to keep engineers inside. But they can contract and then let them go. That's the point. Turnover rate is very rate very low. They don't change jobs. And I'm 19. Sorry. 2011. I was happy to invite Jeff Sutherland and the same time in the event called innovation sprint 2011. Okay. I will talk about the scrum here. This is the main part. I would like to talk to you. So this is the book I first read about scrum. It's by a Kent River and Mike Beal. This book starts with this quote from this paper. The new new product development gain which is authored by Nonaka-san. It says there were a race approach to product development may conflict with the goals of maximum speed and flexibility. Instead a holistic or when we approach where the team tries to go go the distance as a unit passing the ball back and forth may better serve today's competitive requirements. And this is the original paper. The new new product development gain written by Akeuchi-san and Nonaka-san. Hiyotaka Akeuchi is now in Harvard business. And Nonaka Akeuchi is in Hitotsubashi in Japan. They always work together. And it says stop running that we're low base and take up rugby. And this is the key figure. The picture they drew. And this they analyzed. They gathered Japanese new development projects and analyze it and explain how they're doing so faster than Americans. So this is this is a phase gate approach. They took from NASA's PPP phase planning. I'm sorry. But this is from Fuji Xerox and this is from Honda. And as you can see it's it's very something parallel to workflow to agile. As you can see. But he didn't mention about software at all. Only new development. New product development. And they found that using this this type of knowledge transfer. This this type knowledge are transferred by paper written thing. And this type knowledge can be knowledge is conveyed by people or someone who started this project. So this in his paper this rugby approach. Not relay relay buttons. But the tons relay buttons approach. This one is more flexible and fast. He analyzed it. And a bit about the history. This picture is written by. Haramichi-san in Rakuten in Japan with Jim Copley. This is in Japan. First manufacturing industry in Japan. This paper. The new product development game was written in 1986. And of course total production system is old. Older than that. And scrum referenced to this new development game to articulate what they're doing in scrum. And of course scrum and XP if affecting each other. And they are all from parents community. And it's agile is the term agile. Was born in 2001 to unite all those effective development. And total production system is abstracted into lean thinking or lean sorry lean thinking. And now it's used as a services or development. Other than manufacturing. And lean software development by Tom and Mary Papendic is written. And now Kanban spin off from agile. And we start up also spin off from agile and lean. So is this a start up category here. So I would like to talk about this this thing here. I have only 30 minutes so I will skip this slides but it's like this. He is Nonaka sensei. He's still alive. And last year I had three or five times of discussion with him about his thought of scrum original thought. And first he wrote this scrum or new new product development game in other business review. And then he also wrote the knowledge creating company which is very famous in knowledge create knowledge management area. And he where he named the model of innovation or knowledge creation as a second model. I will talk about this later. And third in this managing flow the book and also the wise leadership which is written last year in Hubbard's business review about bonuses or phonetic leadership. I will talk about this later too. And he also wrote a book in Japanese about US Marine about how to organizing teams. So I would like to talk about this first today. And scrum is famous in the agile world. But other thoughts are also very very intimately related to this scrum concept. So I would like to explore with you about second model first. Second model. He says that new knowledge or knowledge creation is transformation of tacit and explicit knowledge to each other. Tacit knowledge and explicit knowledge. I will talk about this soon. And the transformation from tacit to explicit and explicit tacit is the core of the innovation he says. Tacit knowledge. Tacit knowledge is something you know but you don't tell or you don't explicitly write. This hand crafting is a example of tacit knowledge. You know but you don't necessarily write or you cannot write sometimes. It's it's in you. It's a subjective and experiential experiential knowledge that cannot be expressed in written sense figures or formulas. So that craft is an example of tacit knowledge. As you know people can know something even if they can't express it. So this is called tacit knowledge. Michael Pony said that you can know more than you tell. So the more part is in this tacit knowledge. And other type of knowledge is called explicit knowledge. And this is a form of knowledge which is written or which is objective and science is a good example. It can be written and repeatedly applied to independent of the context. So Monaco-san said that innovation or new knowledge or knowledge creation is about transforming tacit knowledge into explicit knowledge and the other way also. So the conversion from between the two knowledge is the key point. Yes. Now knowledge is explicit can be explicit and can be tacit also. But it's it's all one knowledge. Yeah. Yeah. I understand the reason why you make tacit knowledge as explicit. To. But what do you mean by the other way around that is making explicit knowledge tacit? To learn something in you by doing. Yes. Yes. Exactly. So this is what Monaco-san wrote as a Seiki model. What he says. Seiki is abbreviation of socialization, externalization, internalization and combination. So I'll explain this. New knowledge always begins from individual as a tacit knowledge through from experience or from inspiration or from learning or whatever. Or belief sometimes. Making things. Belief. So first part is socialization is sharing this knowledge with experience. Talk with users or experience users, users seen or so socialize it with people. And then move on to this externalization, which is which transforms tacit knowledge into explicit knowledge. So in this phase, you write things or you explain things in explicit form. Externalization, externalize your knowledge from your body into words. And then if it's externalized, you can combine your knowledge and edit knowledge to create a new knowledge. It's called combination. It's a transformation from explicit knowledge to explicit knowledge. And then last part is internalization, which is, I said, the other way. Learn things from those newly found knowledge. Okay. And I will give you an example. Like spring demo in Azure. It's a demo. So you can see how what's happening in the system or product. And you can see it and you can feel it and talk it. So it's been done can be seen as a socialization of the product. Also, this is very important part. This is not written in any agile development method, but use visiting users to get ideas or to get the feeling is very important. From the first split. So visiting users is I will place this here. Others. Story writing is this part. You feel felt something and tested knowledge into explicit written. And in planning, yeah, it's not strictly here, but it's combining the knowledge, written knowledge into explicit combination of the story or epic or something. And everything about learning is internalization. Learn things in your into yourself. Other examples like pair programming. It's not exactly here, but programming cannot be taught by manuals. So you pair programs sometimes and to learn skills from, from seniors, how to program. So but peppermint is making knowledge as a program. So it can be seen as externalization, but one aspect of peppermint is here. And like coding standard is like, gathering non knowledge in the project into a coding standard written thing. So it's can be placed here. A lot of examples can be into here. But anyway, anyway, so monocards view of scrum is that a project development is the getting new knowledge from customers and realize it into a working software. So through this shaky model, he created knowledge. And this created knowledge can be realized as a working, working software, and also development team, which is continues to be a good team. So growing working software and growing scrum team, both are the product of these, his knowledge creation model. Yes, growing means but not by numbers, but learning. I would say learning. Okay. And okay, it's the most time. Sorry. So I will go to the last part. This is such a Honda, who is the founder of Honda motors. He will I will talk about how this knowledge creation can be in the scrum. So he, this is a rider. He is a creator of this motorcycle. He goes to this field. And dodging at the level of the eye of the rider. And with his hand touching the field, he actually listens the engine sound by hand. So what is doing is tacit knowledge to tacit knowledge. Again, so he goes to Gemba, he goes to the real world customers world and get this view of the customer and get this empathy from this rider. And he is creating he's creating this vision of the new motor car. And then he goes to workplace. And he worked together with the people developing the motorcycle and drawing red drawing on the on this lower or talk by words. So what I would like to say here is that the scrum, the original scrum is about not about the face, but also about the person who who is motivated by the user or the customer is here. And he carries the tacit knowledge from the user or from the experience he had with the user through the process, he continues to providing the emotions and tacit knowledge to the team, the knowledge. So it can be said that Soichi Honda is the is one of the super product owner who has a live in Japan. And this is the last one. As always, he used this slide. He thinks that thinking and doing at the same time. So not not only don't divide thinking part and doing parts separately into separate organization or separate people. So this Soichi Honda is doing or acting or involving into customers and also thinking. So thinking and doing part cannot be separated in new thing in innovation when you create new ideas. So this is the last part. Okay, hi, how do we have two minutes? Sorry, so I tried to make myself clear, but so I might I'm not sure I did, but I'm happy to be here and talk about Japanese scrum with you. Thank you very much. Kenji, are there any companies where real scrum, fake scrum is actually happening in Japan that you've seen? I mean, I mean, modern, I don't mean the original model, but scrum as we know it today, where real scrum is in place. Yes, there are some some projects. I know that scrum is in place. And because waterfall and traditional systems are so common, what is it about those organizations that has allowed scrum to be introduced? Yes, I found some. This some industries, this picture, I show you the subcontracting is decaying. Like website, do you know Rakuten? It's getting global. And someone from Rakuten is maybe here, I don't know. Website creation. And the other one is gaming. Gaming the street found that they, they hire good engineers into themselves and doing scrum. And a lot of people are moving our time, I'm sorry, to that industry. Thank you. Thanks.