The Future of Everyday AI with Mitsubishi Electric

speaker1

Welcome, everyone, to our podcast! I'm John Jeong, and today we're diving into the incredible journey of Mitsubishi Electric's AI transformation. We have with us Ryota Katsurai, who will share her insights on this groundbreaking initiative. Ryota, thanks for joining us!

speaker2

Thank you, John! I'm thrilled to be here. It's an exciting time at Mitsubishi Electric, and we have a lot to discuss. Let's start with the basics. Can you give us an overview of Mitsubishi Electric's AI journey and why it's so important?

speaker1

Absolutely, Ryota. Mitsubishi Electric, or Melco, has been at the forefront of technological innovation for decades. Our AI journey began with the realization that data and AI could revolutionize how we operate. We started with small experiments, but the true turning point was the launch of our Serendie platform. It's a game-changer that integrates data from various domains, from household appliances to space systems, with cutting-edge technologies and professional creativity.

speaker2

That sounds fascinating! Could you tell us more about the Serendie platform? What makes it unique, and how does it work?

speaker1

Serendie is a platform that embodies the concept of 'Serendipity' and 'Digital Engineering.' It's designed to create new value in an agile and sustainable manner. What sets Serendie apart is its ability to seamlessly integrate diverse data sources and apply advanced AI algorithms to generate actionable insights. For example, we've used it to optimize air conditioning systems, reduce electricity consumption, and enhance maintenance processes in various industries.

speaker2

Wow, those are some impressive applications! Can you share some specific success stories? I'm particularly interested in the impact on real-world businesses and operations.

speaker1

Certainly! One of our most notable success stories is the LLM Air Conditioning Control project. By implementing Serendie, we were able to reduce average electricity consumption by 48%. Another example is the Train LMS (Locomotive Management System), where we achieved significant cost savings and improved maintenance efficiency. These projects not only reduced operational costs but also enhanced the overall customer experience.

speaker2

Those results are truly remarkable! What are the key metrics and milestones you've achieved with Serendie? How do you measure success?

speaker1

We measure success through a combination of financial metrics and operational improvements. Since the launch of Serendie, we've achieved a total ARR of $1.5 million and a TCV of $4.1 million. We've also seen a significant increase in deal sizes, with a 25x increase after the Goal stage. Additionally, we've expanded to over 200 users across 16 business units, which is a testament to the platform's versatility and impact.

speaker2

Those numbers are impressive! How important have strategic partnerships been in achieving these results? Can you tell us more about your collaboration with AWS and Snowflake?

speaker1

Strategic partnerships have been crucial. Our collaboration with AWS and Snowflake has been instrumental in scaling our AI capabilities. AWS provides the robust cloud infrastructure we need to handle large volumes of data and run complex AI models efficiently. Snowflake, on the other hand, ensures seamless data integration and management. Together, these partnerships have enabled us to deliver high-performance solutions and drive innovation.

speaker2

That's fantastic! Speaking of user expansion, how have you approached growing your user base and ensuring widespread adoption of Serendie across different business units?

speaker1

User expansion is a key focus area for us. We started with pilot projects in specific business units and gradually expanded to others. For example, we began with DIC (Data-eye-coo) and IS (Information Research Institute) before rolling out to 16+ business units. We've also organized events like the Melco Day, where we bring together stakeholders to showcase the platform's capabilities and provide hands-on training. This approach has been highly effective in driving adoption and engagement.

speaker2

It sounds like a well-thought-out strategy. What are your future plans and vision for Serendie? How do you see it evolving in the next few years?

speaker1

Our vision is to make Serendie the cornerstone of our digital transformation. We aim to train 2,000 CDS (Cloud Data Specialists) with a core focus on generative AI and 20,000 data consumers. By 2025, we want to evolve into a company that anticipates market changes and creates new value through the strategic use of data and AI. We're also exploring new use cases and industries where Serendie can make a significant impact.

speaker2

That's an ambitious and exciting vision! What are some of the challenges you've faced along the way, and how have you overcome them?

speaker1

One of the biggest challenges has been ensuring data quality and security. We've had to implement robust data governance frameworks and invest in advanced security measures. Another challenge is cultural change. Transitioning to a data-driven culture requires ongoing education and support. We've addressed these issues through comprehensive training programs and by fostering a collaborative environment where everyone can contribute to the AI journey.

speaker2

Cultural change is indeed a significant challenge. How have you approached employee training and education to ensure everyone is on board with the AI transformation?

speaker1

We've developed a multi-faceted training program that includes both technical and non-technical aspects. For technical roles, we provide in-depth training on AI algorithms, data management, and cloud technologies. For non-technical roles, we focus on the practical applications of AI and how it can enhance their daily work. We also encourage a 'learn-by-doing' approach through hands-on workshops and real-world projects.

speaker2

That's a great approach! Finally, how do you see data and AI transforming the business landscape in the coming years? What role do you think Mitsubishi Electric will play in this transformation?

speaker1

Data and AI are the future of business. They will drive innovation, improve efficiency, and create new opportunities. At Mitsubishi Electric, we see ourselves as pioneers in this transformation. We aim to lead by example, demonstrating how data and AI can be harnessed to create value and drive sustainable growth. We're committed to continuous learning and innovation, and we believe that by working together with our partners and customers, we can achieve great things.

speaker2

Thank you, John, for sharing such insightful and inspiring information. It's clear that Mitsubishi Electric is at the forefront of AI and digital transformation. We look forward to seeing all the incredible things you will achieve in the future. Thanks for tuning in, everyone, and stay tuned for more exciting episodes!