Silicon Wadi Israel - Digitizing orient

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Silicon Wadi Israel - Digitizing orient
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Digitalization, autonomous driving, security and connectivity - those trends heavily influence vehicle development in the future. To meet the vast and fast technological changes, strong global networks of Research and Development experts are the foundation. Israel is known as a “start-up nation” – with high investments in research and development. But what does it need to enter a new market? What is necessary to find the best people and the most promising start-ups with the most fascinating ideas and products?
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and the and the and the end of the
book and G and so the end the how are
you doing long they so I'll
China tell you a story and not just try to give a regular dry presentation I think because they just the back of from Asia from 9 years in Asia a to Israel is my team says you know your is relieved but maybe you're not as is really as you were before you left so as you change meaning and the international life change me and I'm telling you this because I'm going to give you the perspectives of why is well he is considered such an innovative place and maybe what makes us as a country so innovative and I'm telling you
this because I think that there is no 1 place that has the magic power I think every country has its own strength its own values and I think the beauty in the global village that we live in today is how to leverage all the markets are in all the different
talents that we have around the world but so I'm going talk to you today about what is it mean to be up to tomorrow do you know was that that's being up to tomorrow probably not I wouldn't have listen up later you'll see who said that that's not my sentence but I love that my boss is the head of digital vehicle and mobility Daimler and when I presented to him this quote was in my presentation and he said you know
what do you this sentence because we always think we need to be up to date with this we need to be up tomorrow and I said OK that's great inspiration it's an inspiration for a newly established takes entering Tel-Aviv so it's a topic for my presentation and then there's another funky question here
leadership without control How can you need if you don't have control of that's another thing I'd like to share with you through this presentation the so i'm gonna 1st start by telling you how did Israel feel to me or some of my impressions coming back home after 9 years of right so I met many people and
they told me you know what's Israel but that Israel diameter is a great leader of innovation we see a lot of innovation coming from Daimler we feel the diameter is not afraid of the not invented here here syndrome meaning where OK to leverage the ecosystem and to innovation that is not exclusive but I was asked to words what are you innovating what would be your role in the new world will you be the 1 that just delivers the metal the vehicles i will
you be the rollerball taxis defeat managers what will you be so the answer I gave is do you know the role of all we have in this big world or the new world I'm not sure if we know but we have our case strategy cases is
identifying I think the topic trends that are destruction destructing a industry connected autonomous shared an electric and our company has put significant investments and focus in each 1 of those areas and so hopefully by the time the future unveils itself we will have our hands or ready in all those different dimensions because maybe the connected will be dabber doubt up more maybe the shared maybe both so if we have our investments in the right place hopefully will be ready for tomorrow and another thing I said there's 1 thing we know for sure we want to be close to our customer so in our strategy and I really want to be close to our customers In another statement I got when I was in Israel is is well is very good taking things from 0 to 10 but then you give it to the Germans they take it from 10 to 100 and that's very true you know I came back to Israel sometimes I say my God people have a salad in their head so many topics so many things juggling in their heads but but that's how you spark innovation and that's where Israel is very strong and then June another same that if you want to help people drive on the roads you know how they think it is if you think about it in different countries you drive in
different ways and it's a mirror of the culture so if I tried to take that's everything's possible rules the a recommendation only and if there is a roadblock of find a way to so to overcome at an improvised and these are some reflections of out driving in Israel is and how our culture is by the way in Korea people used to say 0 god driving in Korea is crazy but Koreans have a lot of things in common with Israel so as not so worried On
the road in Korea and other things that got me when I came back to Israel is I think I was on the phone in Israel in less than 6 months more than I was on the entire time that I was in Asia altogether
that in Asia people to e-mail people charity less phone conversations appear in Israel a significant amount of time is taken on phones for me and and then it seems like everyone knows each other
I go to a meeting with the VC they told me all we know you've been there last week and in another place 2 weeks before 5 so it's the of course is really is a small market but it's a very connected market everyone talks to each other all the time that's also part of what makes Israel so innovative so we communicate all the time with each other and the was 1 thing that I was thinking about I said in many cultures rules are a safety net right we refer to rules to make sure that all boundaries are clear rules are definitely not in safety net in Israel's so what is the safety net in Israel I think it's the network I think is really really rely on 1 another as a safety net and that's also a very interesting and the comparison that I found for myself the have
had and then when I was interviewing you know when you interview you interview right not in as you in Israel half of the interview with me interviewing and half of the interview was me selling the job to the candidates and up there were asking as much questions for as many questions than as I was asking them and questions like how do you fight define success what is the tangible deliverables for you in 6 months a year when I told that to some of my colleagues at Daimler that it was asking those questions are you asking the people and now they're asking me so although it's for positions of dimers such an amazing company and I love this company on still they feel that they want to interview me and make sure that if they wanna come work for us it's the right company to
work for them and then they look at me and I put this in the presentation because it happened so often people look at me and say is in Dyna very conservative company but we look in your eyes and we see this spark so there has to be something there so it's interesting that you look at how I can be out not what I say but how I behave and what I have in my eyes to tell them what is the company I can tell you I definitely have a spark in my eyes working for such an amazing company it is amazing and then some impressions of 1 of my 1st employees so this is employed number 1 were sitting together 1st day on the job and you know 3 did 3 hours download I give the download on Daimler on but we have to do together and at the last 20 minutes he says is it OK if I also give you feedback on like sure I really believe in a 2 way street communication that goes both ways going had any pulls out a full page full of expectation management he has for me so it's not just me giving my expect patient management to the team they're giving me the expectation management back and then another reflection you know 1 of our managers joined the team at the beginning he didn't have that diarrhea addressed an and that was a very important e-mail and that e-mail was in his inbox coming from Germany saying all are collinear saw Board Member for R&D but you know we're giving this presentation to the board of management next week do you have any comments there were you know levels it in our diet reliable two-way level 3 level 4 is on the e-mails I didn't even have time to tell em how to respond to such an
e-mail he got his e-mail address 5 minutes later you already responded to the e-mail with a list this big all of the things he thinks should be included in this decade yeah and hacker or 0 my god 1 and you know there's level 2 level 3 level force the presentation is next week it's already done so you see the difference in the Israel hierarchies not so strong arm I remember that when I moved to Singapore after working for Dyna in Israel but it was more of an Israeli company
at this sense of hierarchy at the time that I felt I felt that it was not something that someone told me from then till today it's different I think hierarchies less less felt the diamond today you can approach a board member and have a discussion you really can't where in the past couldn't it shows also a bit about the cultural change dimers going through but it's still here there's still hierarchy more than we want maybe but I really had to tell them well you know it's done a bit different the reaction was actually good from the recipients there were not intimidated and they went along with and I Daimler going to Israel is not just about what we wanna take out of Israel it's also how can the interaction between different cultures and different ways of communicating and working can change also diver so this is an example how an interaction between an Israeli culture to a German can culture can actually be make both cultures better the that why Mercedes timer decide to consist of some I think there was an introduction and that yes Israel is 1 of the 5 top technology could systems in the world and innovation
is a very strong virtue that we have in Israel you can see here that the world of economic form really ranks Israel among the highest in terms of innovation Roland Berger did a very very strong study in Israel placing the Smart Mobility autonomous vehicles and other technologies really in the center of innovation of Israel today and there is also significant capital raised about 4 . 8 billion dollars only last year some our founding fathers he's the answer to the 1st question then we on said the Army for the army it's smart enough to be up to date you have to be up to tomorrow and this is no big inspiration for its new tech center in Tel-Aviv we need to be up to tomorrow when we need to contribute for Daimler to be up to tomorrow and then she Montanus our former president said once that 1 of the greatest contribution of the Jewish history is the satisfaction that's quite a funny statement
satisfaction so let's look a little bit about the roots of Israel and at Jewish history In our roots we have restlessness we have adversity we have curiosity our we have scarcity drive passion I think these are some of the routes that we have to drive innovation in our culture the in the army but look 1st of all on the
ratios of soldiers to each of the 2 leaders at some 9 2 1 it's a relatively flat tire at getting in the US if I'm not mistaken it's 5 to 1 and also you know your 18 I went to the army myself as well of course like everyone is 0 which was 1 of the best times of my life I you younger you're in charge you're responsible you'll many times taken very very significant decisions they need to be taken on the spot because many times there is absolutely no time and you're given a framework but you're also given freedom to improvise and freedom to output content into the topic or into the challenge and I'm telling you this because I think the army and uh how we reads a people actually is a great facilitator for the start-up ecosystem in Israel sometimes other
technologies there are extremely advanced so they come from the army was a mind-set was not so much hierarchy of improvised find solutions because there is no other way were small country we need to be safe and for that we need to be resourceful and we need to find solutions the maximizing resistance In order to be a game changer Israelis challenging you it's a very network you remember I told you it's very network-oriented than people like talking and communicating and interacting but they're challenging everything and that's who we are and were encouraging disagreements asking questions and those things are also encouraging innovation I think is the lessons learned of the 2nd Lebanon War and you are not a island he said something which is if if you read it it's just amazing is said it's an officer's job to argue with the chief of
staff if he thinks he's wrong you should do it certainly on a basis of professional truth as he sees it so in our culture we are encouraged to to challenge leaders I remember you know because in AGI I was the regional and credit for the regions I worked with 12 cultures in Korea it was Korea and I remember always when I worked when I used to work with my teams the broader used to say please challenge me it's OK to give me difficult feedback because that's the only way we can do the right thing if we talk in we've we find the right solution when I did this speech to my Televisa they laughed at me because they don't need me to say that they would do it anyway if I wanted to or if I don't
immigration Israel is the biggest melting pot in the world on it brings in 2 dimensions 1st of all if you think about are parents or my parents generation most of them were not born in Israel uh they come from everywhere around the world you know we have Germany Poland Russia we have your P we have moral coal we have iraq we have here on many many many countries and it's really those are completely different perspectives coming to Israel are parents most of them had to leave all their fortunes when they came back so in this sense it gives you is that you don't have what to lose you only have what to gain and that's part of them to the nearest spirit in Israel and the other element is the diversity because there very a lot of cultures and a lot of different ways of interaction the same I'm
Israeli and I say here on this slide you have to tolerate a large number of failures in order to innovate but still is an Israeli I hate failing have but it's still OK for me to fail you know there is also a Israeli literature and songs about a failing failing is OK in Israel as long as you learn from it is that back on your feet and you find solutions I went also know think in 1 of my i and the curse of courses that I
did there was a statement there that I really like it's not what happens to you that defines you it's how you we act to what happens to you that defines the and if you think about this in the context of failure if we fail to OK let's stand with our chains up to learn a lesson lessons and move forward and create a better future a different future and you know they say you know failure is a gift out feedback is a gift it's difficult but it's true in in Israel and think you see this stress level then the survival that's true in Israel we have a very high stress level and we do need to survive in that box entrepreneurship and and I innovation and now I wanna tell you a little bit about uh the Research Center had that we have established in Tel-Aviv the what is our vision we want to be a magnet magnet for talent
the best talent that Israel can offer and we would the magnet the best technologies that are out there to to harvest far company we wanna be a strategic partner for cyber security for an amazing intelligent cars we want to harvest or uh incubated digital mind set in our people you remember how I told you about the uh discussions or the cooperation the communication we have between Germany and Israel so that cultivates a mind-set as well and we also want to have it to be a digital Innovator what does that mean we want to support the implementation of benchmark technologies that can be meaningful for the leadership of and in the in the text area for archives
and so where do we stand today we see you see that we're still a very small thing but very very strong we have the allied you had of cooperation and innovation management sitting here we all know everyone that we took is a pride and I think that's also on 1 of the things the theme is telling me that it was important for me and for us to really take the top talents that Israel can offer us so that we can be a strong team that the lives team an amazing results together we also have the you'll see here he's a brigade
general he's not an employee is an expert that we hired you was the ex-CIA all of the Israeli army and he's uh he's helping us with the take take leadership for our for our company we have the management team is in place we chose officers over there you can see and I and we we set up to keep the ice so I
think a joined cell 2 weeks ago or something and other managers also over the last 2 to 3 months so we really ready to start producing this meaningful impacts that either but so how do we think Israel can support Daimler innovation as I said earlier in a few ways we're going to have an R&D centers so we're gonna do development for digital vehicle our were also again engaged the start up at the system the technologies that those targets can bring to the company you know that we have maybe you know that we have to start up a lot of on the company we have a very as a good chunk of those companies coming from Israel with those innovations and we want to leverage the talent the culture and the minds of the time has to offer is that Israel has to offer we wanted to hackathons we wanna join Innovation program that maybe are not die renovation program and we have already in Israel we wanted to research with universities but 1 thing is very important and you could see it over here the projects need to end up in our cards if they don't end up in if this innovation doesn't end up in our cars if done nothing and I think what the challenge that we see and what we want to take up and make a reality is really making sure that although start ups and all those research papers and all these are indeed really can be implemented into the vehicles and provide the leadership for for the so there are some questions I get at which fortunately or unfortunately I didn't find 1 answer for many many quot answers that I could give can be caught for example they asked me so tell me about the started because system in Israel are you going to buy start up I can say no I actually if you buy a start up with which is very mature it already encompasses the opportunity here the potential to work with
many OEM and therefore the value in the market would be too high so now and but if you remember more behind mobilize 15 billion dollars transaction that took place in the Israeli market were until bought life for the autonomous vehicles there were big the they have the potential already to work with multi multiple OEM but the answer was yes we will do it because it is strategic more for Intel so you see there is no right answer and then I
get a question well will you invest in the start of maybe you wouldn't by the start of MIT maybe you will invest in the start up here again I could say well why should I invest and the answer could be are you know if you invest this then I you'll get the ability to influence the strategic direction the start up is developing the product that's right but you can also have a how can I say leadership for 6 months you know for example if they start with us they will not work with any other start ups for the next 6 months and it will give us the lead in the in the development so you can do that if you invest correct yeah you could say that makes perfect sense but I can also counter that and say well but Daimler is so big most started 1 workers as anyway so if they decide to work with us anyway they would want to listen to us so we will have the ability to influence the strategic direction in any way they need to dedicate their resources so maybe we wouldn't have to have a agreement for a lead of 6 months because it will happen naturally and then I get questions like here to setting up an R&D where your people are gonna developed and on the other hand you'll I you're gonna go to start ups and is in this the competition yes it is but but it's also necessary and I also get questions shouldn't you develop the most important pillars of the futures on your own
dime why go and play with the ecosystem I could say absolutely right we want to have exclusive technologies right but I can also ask you but can we the if the destruction manageable or do we have to play with the ecosystem in order to be
in the lead so you see I can look at every question in many many different direction and I think it symbolizes the generation or where we today the destruction is amazing bringing me to the question leading without control the destruction is there I came up with this sentence not because I thought about it theoretically but because I was actually when I came back to Israel there were so many start ups so many VC's so many parties at Daimler and I said my god it's very difficult to have control over such a huge platform I still have to lead but then I thought of it and I said wait a minute but when you look at the world we work in it is like that as well the destruction is so significant we have to leave but we don't always have the control and so up to tomorrow what is my perspective of being up to tomorrow I think it's harvesting the best technologies out there for a company that are available today it's identifying the trends that
are maybe not available to the but in 5 to 10 years down the road for enemies playing with your friends and enemies because sometimes you need to do that and explain what the best the and we have some good examples of doing that already a diarrhea know here are as high definition of maps for autonomous vehicles we do it together with our traditional competition like BMW and Audi and Bosch we just partner this is relatively new with Bosch for astronomers vehicles so there yeah want to leave but
sometimes we work with the best and with enemies for that let it come my 1st few months in Israel sometimes I felt like I'm walking in the forest with my eyes closed I have to move ahead have to find my way with my senses because I can't see so I have to really trust my instincts because the ground have never been explored before I think it's also very good I illustration of the generation we live in now a diarrhea and in delta motive world
we don't always have all the answers we need to explore new territories in the new digital world and let it come when leave you with this last slide and you see the picture in the middle I tried to betray something that is modular I think to be successful in this world we need to be modular we need to be connected and we need to be able to say OK this is now the benchmark technology I take it I plug it
in an easily fast when it's no longer so updated I take it out and I bring in another building block in and lead without control be up to tomorrow the power of we I really do not believe you can do think as an individual not an individual person not an individual organization we do it as a team we need to have courage we need to do it we need to improvise and tell the boss often
the wrong thank you very much at
the no question and yet yes no question about the choice for Israel answer to it role so a conscious choice to start innovating outside of the uh
the traditional car environment that Germany is writing a because I mean if you look at our innovation and I 1 thing of Israel's right absolutely so um did you actually moved Israel as a conscious choice to stay outside environment able to innovate more freely but we came to Israel you know the units that were belonging to is digital vehicle is well is very strong when it comes to digital and this is why we decided to come to Israel but there is the other element that you just touched on so when you need to innovate sometimes you need to do it a bit separate so it helps and we always say now that we
just established a team is it's very important for us to be completely integrated into the other but at the same time we are a bit separated to let to do to innovate you need to have the space to innovate so it's a good fit with separate but that was not the reason why we didn't we didn't because it digital is very strong and the is all start ups scene in Israel it all of it today is extremely um Smart Mobility focused but
what think you're much of a short question or to a bit late so you might have said that on your talk some how many of stops Israel to succeed was a percentage and
which started so successful how many direct initial succeeded as single turn over this question to in bottom %
success and you can so so standard stratification so which can you say it's it's more
all Internet industries to succeed so where's restaurants are not successful or hot can can you say something about that a little bit more of the to and yeah so that the quiz questions actually some stratification can you see what type of all start ups are successful and which are not the the factors in Israeli starts
is because the small them the local market is tiny we're about and a half million people most of the start-ups things globally from the get go so everyone thing about selling to the US to China to Europe on in terms of technological trend changes over time depending on the
technology a few years ago it that I know of Big Data answer so that's been really changes over time right now connected vehicles is 1 of the hottest areas but it would take us you know 10 years to know the success factors so if you look at on the the venture capital usually you only know if a fund that investors out a successful 10 years from its inception so it really takes a long of and an arise to know and if it the autonomous cars in the transportation and be a successful set so if your technology units from back up to correct this and the much longer horizon then you know an app from 10 years ago thank you very much maybe I'll just add to that the basic that start ups you always see where the focus is
you see innovation comes and I think there's a very very strong focus on Smart Mobility in Israel and therefore I think you see mn many many more uh start ups in the area of Smart Mobility autonomous vehicles in Israel today the and um I would be interested to Y and a piece of ecosystem is interested to cooperate with you because I think and Daimler homicide misunderstands isn't as taking these rare uh if you compare it to Google or Facebook it's not like you start name I imagine maybe I'll tell you
my experience coming back to Israel you're right Google and Facebook are very strong names but actually the market perception of is or was extremely well perceived for diagram coming in you know and as you remember I said that the focus of Smart Mobility in Israel in the start up team is very very strong and so if you see you say OK this is a focus area for the start ups then of course diaries a great partner from others and so we're GM wasn't as well as the 1st OEM they establish their site in 2008 and they're around I think there were around 150 people until uh rising 6 months ago and the ramping up to 300 and we were the 2nd OEM coming to Israel there was a lot of excitement now as into you see also other or we really considering coming in and are also under way in a year Williams like Renault but also maybe and are more direct competition is coming in and on the this is the the questions I showed you earlier about me being interview just as much as I'm interviewing and how they perceive me was exactly what you were talking about but I think I really think that we have enough to offer and if you watch divers leadership 2020 culture change I think the companies really going through animating transformation and the question is really always can I make an impact and if the answer to that is yes you can make an impact that it's an amazing company to work for this is the way it's perceived and you can ask analogy disjoint so what I know
and the and Salesforce I understood you have just started CLU department how many people the future will work there and how will be the problem be organized so we will be ramping up to 25 and till 2018 and establish
results and take it from there I think what I love about this company is we don't try to grab the entire Israel has a lot to offer in terms of cybersecurity AIA peak data tons of different areas autonomous vehicles many many cameras vision a lot to offer there's a lot that we can do but we want to take it in stages so we will establish 1st results and then take it from there and I think you are some something of the 2nd question was how would you organize 0 you Parliament which structure will you focus on a certain topic so we go away functionalities so do have so we will have that right now too strongly the uh professional legs and to or have the first one is the R&D where we will read to R&D development in Sabah securities and other uh let's see Digital innovation and then we will have a the innovation later that the alleys leading where we will harvested the ecosystem where we will work with start school to hackathons do research university of university research and so forth so this is that the 2 areas that we were working and then you ask do we did we establish some key focus areas that we have so we have for now these are the 1st uh we have decided what we're going to start with deliver results and then take it from there but
but good anymore questions from the audience the thank you for joining enjoys a party later we thank you thank you thank you and on on the world
and you