Listing story

The cycle of "enthusiasm, obsession, and emotion"
Leading a company to a new stage of growth

Masahiro Morimoto, President and CEO of FRONTEO Inc.

President and CEO of FRONTEO Inc. 
Masahiro Morimoto

pattern

Aiming to become an astronaut, but not fulfilled

 Morimoto was born in 1966 in Osaka, four years before the first World Expo in Asia.As a boy, he trained his mind and body with baseball and basketball.He also worked hard to study and went on to the prestigious local Toyonaka High School.As a boy, Morimoto had a dream that he had secretly warmed up.It's about becoming an astronaut.Morimoto, who was informed that it was a shortcut to become an Air Force pilot for that purpose, went on to the National Defense Academy.However, his eyesight deteriorated while he was in school, and he had to give up his path to becoming a pilot.Morimoto changed his mind and chose the path of the Maritime Self-Defense Force.He worked for the Maritime Self-Defense Force escort ship, but retired in 4.After that, Morimoto, who was researching semiconductors at the National Defense Academy, changed his job to Applied Materials Japan Co., Ltd. from his experience of focusing on semiconductors in his graduation research.Morimoto lived a fulfilling life, but in 1995, the IT bubble burst and many IT companies were forced to undergo structural reforms to survive, and the outlook for the entire industry was uncertain.Taking this opportunity, Morimoto retired from Applied Materials in 2000 as his desire to "do what he wanted to do" became stronger day by day.

 Morimoto, who was searching for his own path, told the university alumni association that there was a field called discovery (a process in which a specialized contractor supports evidence extraction and analysis work) necessary for the litigation system unique to the United States. heard.In conducting this discovery, evidence of information leakage and corporate fraud is dealt with by high-tech technology such as forensics that uses IT to identify it, but in lawsuits in the United States, many do not know the structure and how to fight. Asian companies are struggling.Morimoto wanted to get rid of this situation.Initially, he encouraged several acquaintances to start a business, but no one responded positively.So I decided to start my own business.However, at this point, there are no products, no connections, no funds.It was just nothing. It was the spirit of supporting entrepreneurship that companies like UBIC (currently FRONTEO Inc.) do not exist in Asia at all.Morimoto was burning with a sense of mission that he had to do it.And in 2003, UBIC was born in a small office in Akasaka, Tokyo.We started importing and selling US-made forensic tools, but those tools were products that did not support Asian languages ​​such as Japanese.Morimoto, who found a business opportunity there, decided to develop the Asian language analysis technology in-house ahead of the rest of the world and develop it in discovery support as well.Several people who sympathized with Morimoto's enthusiasm joined UBIC, which had just been founded, and started in-house development.After some hard work, I released a Japanese version, and law enforcement agencies and major companies bought it.Morimoto entered the world of discovery while building a foothold in this way.

The motto is "Enthusiasm, obsession, impression"

The motto is "Enthusiasm, obsession, impression"

 Morimoto's motto as a manager is "enthusiasm, obsession, and excitement."Without enthusiasm, nothing starts in the first place.However, it is not possible to continue the business with transient enthusiasm.Whenever you start a new business, you need to take on the challenge.To overcome this, hard working is required both mentally and physically.What makes it possible is obsession, and what is realized and achieved with enthusiasm and tenacity impresses the surroundings.The idea is that the emotions of the surroundings will become a new heat source and the next cycle will begin.With this enthusiasm and dedication, Morimoto has independently completed the world's first and only Asian language-enabled eDiscovery support tool, "Lit i View®." “It gave UBIC great confidence and wealth to be able to proceed with this development on its own,” Morimoto recalls.And the hardships at this time will have great significance later.

Listed on NASDAQ in the United States from listing on TSE Mothers

Listed on NASDAQ in the United States from listing on TSE Mothers

 After that, as the number of Japanese companies expanding overseas increased, orders came in from well-known companies.Four years after its establishment, the business as a discovery vendor got off to a good start, and UBIC was listed on the TSE Mothers in June 4.Morimoto was hoping that the listing would increase his name and creditworthiness and accelerate his growth, but he did not sell much to Japanese companies.The listing on TSE Mothers certainly improved the name recognition of Japanese companies, but the name recognition of most customers and related parties such as Asian and US companies did not rise as expected, and UBIC's presence in the United States also increased. I wasn't able to.

 Therefore, Morimoto's next step was to establish a US subsidiary.UBIC North America, Inc. was established in December 2007, just six months after listing on TSE Mothers.Taking this opportunity, he began to get large contracts from Japanese companies, but Morimoto was still not satisfied with the current situation.And he decides to list on NASDAQ in the United States.Morimoto was driven by the reckless challenge of recovering from severe business performance under the influence of the Lehman shock, and while many stakeholders opposed it, "Western companies and Asian companies are on an equal footing globally. It is UBIC's mission to create a world where we can fight. "In this way, a Japanese venture company that was founded less than 12 years ago was listed on NASDAQ in the United States.Morimoto was particular about listing on NASDAQ in order to overcome the barriers to growth in the US litigation support business.When selecting a discovery vendor that provides litigation support in the United States, not only the will of the client company but also the will of the lawyer in charge of the litigation works strongly.Therefore, I strongly felt that it was necessary to win the trust of them by becoming a company listed on NASDAQ in the United States. (Note: Delisting on NASDAQ in the United States in February 10)

 To further accelerate growth, Morimoto did not loosen his reins. In August 2014, it acquired TechLaw Solutions, Inc. and made it a subsidiary. TechLaw Solutions is a proud employee company with over 8 years of history as a discovery vendor in the United States.Although it is a mid-level class, the project management know-how and high-quality services gained through the number of venues are highly evaluated in the United States, and it has a strong connection with the US Department of Justice. "We couldn't have acquired TechLaw Solutions without being listed in the United States," says Morimoto.In addition, none of the company's employees quit and stayed as a team.In itself, it shows UBIC's improved creditworthiness in the United States.And that will be a major driving force for UBIC, which aims to dramatically expand its business in the United States.

At the NASDAQ Closing Bell Ceremony held in New York, USA in August 2013 (delisted from NASDAQ in February 8)
At the NASDAQ Closing Bell Ceremony held in New York, USA in August 2013 (delisted from NASDAQ in February 8)

At the NASDAQ Closing Bell Ceremony held in New York, USA in August 2013 (delisted from NASDAQ in February 8)

Possibility of artificial intelligence KIBIT

Possibility of artificial intelligence KIBIT

UBIC has succeeded in developing the "Lit iView" series, which dramatically improves the efficiency of evidence disclosure work, and has expanded its business performance.Furthermore, we have succeeded in developing "KIBIT", an original artificial intelligence that utilizes the tacit knowledge of experts.Conventional artificial intelligence is based on statistical processing, but UBIC's "behavioral information science" combines behavioral science that analyzes human behavior and thinking patterns with information science that makes full use of statistics and data mining. It was developed based on the original concept of ". The completely original idea of ​​utilizing "tacit knowledge", which is said to be "non-verbalized knowledge based on human senses and experience", is carried through, and artificial intelligence learns even the expert's "intuition". It can be incorporated into various problem solving.In other words, UBIC's artificial intelligence is different from conventional artificial intelligence, and the Institute for Behavioral Information Science has been established in-house for its research and development.The technology for extracting necessary data with high accuracy from the huge amount of data cultivated through litigation support is expanding the possibility of being used as the most important data analysis technology in big data analysis.In the future, "KIBIT", which utilizes the tacit knowledge of experts in each field, will be able to utilize the speedy and highly accurate analysis results for the progress of society by performing big data analysis on behalf of people.The technology that UBIC has nurtured so far has jumped out of the legal and legal affairs and is beginning to show great potential.

Possibility of artificial intelligence KIBIT
Possibility of artificial intelligence KIBIT
Possibility of artificial intelligence KIBIT
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