strate gy+business

The Ambassador from the Next Economy by Lawrence M. Fisher

from strate gy+business issue 44, Autumn 2006 reprint number 06309

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Next Economy Next

s n a v E n r e V y b s h p a r g o t o h P The Ambassador the from

features the creative mind 1

features the creative mind 2 turned his life into a prototype into his life turned

“Venture activist” Joichi Ito has Ito Joichi activist” “Venture

e M. Fisher of the organization of the future. the future. of of the organization enc

by Lawr

r the from xt Economy

4 4 e u s s i s s e n i s u b + y g e t a r t s - . Ito. e was om a techie cles for his un oad-based media nternet. The first , but he also tends ation and the former v e capitalist,” says Mr entur elopment of the I wn in high-tech cir ot only does he go deep d. N to is kno . I ve, has a lot of unknowns, and has risks. Just as and has risks. Just has a lot of unknowns, ve, e, Weblogs (blogs), wikis (Web sites and docu- sites (blogs), wikis (Web Weblogs e, m not a typical v edited with helping transform them fr Mr “I’ lat- a profoundly in deep ways; he’s interprets “Joi e cr “Just about everything in has a steep learn- I get involved “Just ing cur willing to obsessed with money and are some people are I’m be wealthy, do boring things day in and day out to wonder.” obsessed with always being in a state of ture capitalist and a catalyst for computer-based socially ture pay- decision makers are powerful oriented innovation, ing attention. long before big thing” canny ability to identify the “next but pervasiveother people get to it, and for his quiet influence on the dev of housed in the bathroom was serverInternet in Japan in pio- apartment, a critical role and he played Tokyo his neering online chat, digital advertising, social network softwar Wikipedia, encyclopedia ments, such as the well-known users to add and edit material), and other that allow the limits of that continue to redefine media interactive communication and community-building. H possibilities in each of among the first to see the real these technologies; his financial assistance and his advice ar plaything for the cognoscenti into br with social, political, and business impact. he connects the dots better and therefore eral thinker, author of several Brown, Seely than most,” says John eminent books on business inno Valley Silicon the renowned PARC, of Xerox director is a hacker at heart, in the best sense “He center. research of the wor to build, or he collects builders around him.” to build, or he collects builders around ds, e time than olls, wizar une, this was pending count- es, tr These days Joi Ito’s These days Joi . to says he spends mor . I ent location (in early J tual societies of elv e than a million each in China and the e Mr for 15 years 15 for wn on the net) has about 6 million members strategy+business, ” via their personal computers. S orld of Warcraft is an immensely popular role- is an immensely popular Warcraft orld of s kno ’ W craft is nothing less than an emerging model for Technology) and his latest habitats. These have These and his latest habitats. Technology) ar rancisco (wher guilds a link called “Where is Joi.” Click on it, and a NASA- a link called “Whereis Joi.” with marks up, generated image of the world pops depicting his curr Institute Tokyo near the refuge his private Lab,” “Joi’s of Toronto, in months, hotel rooms included, in recent house in Los Angeles; sister’s his and Shanghai; Helsinki, and San Tokyo Airlines flight between the United F On Joichi Ito’s Web site, http://joi.ito.com/, there’s there’s site, http://joi.ito.com/, Web On Joichi Ito’s dwarfs, and other creatures against one another in a dwarfs, and other creatures WoW series of quests, battles, and trading encounters. (as it worldwide (mor with clearly amounts to a parallel universe, U.S.). It drawing thou- delineated political and economic roles, the globe at any moment to across sands of people from encounter superhuman foes and to form collective “ less hours in imaginary a diver- may be simply warfare of World insists that Ito sion for many people, but Mr. W a ven- as record his track organizational design. Given playing simulation, released by publisher Blizzard by playing simulation, released based in Irvine, Vivendi), Entertainment (a division of fantasy world, it pits in an intricately rendered Set Calif. two immense vir in his own bed); and the offices of dozens of businesses, bed); and the offices of dozens in his own The map is not friends he visits regularly. and groups, always up to date, but no matter in a game called mind is most likely to be found online, on earth — or no matter where Warcraft, of World self might be. his corporeal it — above covered technology for the for technology covered Times York New Lawrence M. Fisher Lawrence (fisher_larry@strategy- a contributing business.com), to editor and has written for dozens of dozens for and has written publications. other business Fisher is based in San Mr. Francisco.

features the creative mind 3 features the creative mind 4 apanese e practical eloping mor and other URL codes. ols such mechanisms as esident of international .com, .net, d. In the United States, Mr. Ito has Ito Mr. States, the United d. In ch engine that keeps track of what is es to traditional copyright protection for an es to traditional copyright protection ed sear magazine), his most common medium for magazine), his most common medium ofit organization that is dev ofit corporation that contr part Japan, founder and CEO of the Japanese part Japan, Mr. Ito was also an angel investor in Technorati, a Technorati, in was also an angel investor Ito Mr. ed ir ix A the nomenclature of the nomenclature He also sits on the board of the Creative Commons, a of the Creative also sits on the board He nonpr alternativ license that rights reserved” online world, like the “some copying, but with attribution for the original allows author or artist. specializ The Next Cool Idea The Next his own (he maintains writes regularly Ito Though Mr. in Warcraft of World extolled blog journal and recently W investment firm Neoteny, and a well-known activist on and a well-known firm Neoteny, investment he where Japan, behalf of open systems. In based, he fought unsuccessfully against the is now national ID car Web the fragile ecosystem of the focused on protecting the Internet of ICANN, is an elected governor He itself. the and Numbers, Corporation for Assigned Names nonpr expressing his ideas is his own frenetic lifestyle. He is the lifestyle. He frenetic his ideas is his own expressing company called software Weblog chairman of a Japanese S ence in global Internet governance circles and in Japan circles governance ence in global Internet a quietly published book of his con- May, in general: In climbed rapidly Murakami Ryu with novelist versations in the J to the sixth most popular ranking store. Amazon.com going on in the blogosphere — the world of Weblogs — Weblogs — the world of going on in the blogosphere he also has company, Francisco–based and for this San an operating position: vice pr Technorati’s Sifry, business and mobile devices. David . - - y under- ch engines, t b ehicle for com t the same time, Mr ocate of legal and tech Joichi Ito has become one has become Ito Joichi es. entur “open source” entrepreneurialism. “open source” nternet primarily a v to backs up this idea in par of the most visible global defenders of defenders global visible most of the . I uctures in which standards are open, barri- open, are in which standards uctures s the I In 2006, the Internet arguably faces its most com- 2006, the Internet In In this milieu, Mr. Ito, at age 39, has become one of Ito, this milieu, Mr. In oviders to charge extra for premium service, to charge extra for premium of the role oviders einforce each other. He argues that the great businesses that the great argues He each other. einforce writing the blog companies, participatory Web sites, and writing the blog companies, participatoryWeb also He for which he is known. venues other interactive has become a visible public adv nological str sites or online Web for startingers to entry new low are businesses, participation in online communities is to freedom encouraged, new more institutions have is Web of the appear and gain influence, and the culture integrated with the world at large. A pragmatic security- acceptance of more advocates Ito for example, making organizations measures: related highly accountable for online fraud, scams, and other him an influential pres- deceptions. All of this has given prehensive set of challenges since it was made accessible set of challenges since prehensive A series of pub- to the general public in the early 1990s. sear lic debates — on Chinese censorship of access, and the broadband in providing governments (URL) locator” resource “uniform of Internet future question with new raised an old — have addresses urgency: I the ability of telephone companies and other Internet the ability of telephone companies and pr way these debates play The or for community? merce a could make or break out, and the policies that result, host of businesses and v canned will not be those that stream of the Internet together as video or data, but those that bring people entrepre- source” kind of “open in a mutual creators, neurialism. Mr the most visible global defenders of the idea that com- the most visible global defenders of the and community can be designed to mutually merce r

4 4 e u s s i s s e n i s u b + y g e t a r t s - o e, but ty pr ounger sis- oper entur s convention about s convention ’ king,” says his y ess a hacker w to balance intellectual pr s way of wor ’ oi eal-world Web usage patterns. Web eal-world dam to addr est in the money made on the v This is J “ Typically, when Mr. Ito discerns an idea with prom- Ito when Mr. Typically, ter, Mizuko “Mimi” Ito, who is a research scientist at the who is a research Ito, “Mimi” Mizuko ter, continuing to evangelize its potential as a builder of continuing to evangelize communities and an enabler of public participation. about how to profit from “free” media; and then flew on “free” from to profit about how to Amster he was in later, strategies. A week software open source at the Creative the lawyers counseling Francisco, San Commons on ho tection with r ise, he founds a company or funds an existing business the business is hum- Once that promise. on to capitalize ming, he walks away to the next cool idea, expressing little inter s ’ dei obuyuki I eek earlier this n one w fect person to negotiate with ony Chairman N . n some ways, Mr. Ito’s style foreshadows the chang- style foreshadows Ito’s n some ways, Mr. I ole annual retreat for senior executives in Hawaii with a talk in Hawaii for senior executives annual retreat year, he advised Yasuo Tanaka, governor of Japan’s governor Tanaka, Yasuo he advised year, IP ser- over voice a free on creating prefecture, Nagano vice; kicked off former S ing nature of knowledge work; he moves among many he moves work; of knowledge ing nature organizations at once, balancing his entrepreneurial participa- obsessive individualism against an avid, even tion in the organizations and communities that interest him, whether online or offline. I founder and chief executive, says Mr. Ito’s global wan- Ito’s says Mr. founder and chief executive, derings make him the per partners, and that he also brings a special visibil- foreign public politi- ity to the company as he takes on a more cal r

features the creative mind 5 features the creative mind 6 . Ito dith M. logs, wikis, Free Culture: Culture: Free enguin, 2005). (P endell and E W ossing boundaries since he was a eated communities. B e and Future of Creativity e and Future ’s uniquely willing to play as both an insider ’s e is also a cot, for those nights when Mr ence Lessig, the C. to has been cr w people to communicate and collaborate in w people to communicate and collaborate or does he spend much time at the offices of the . I atur to has a home in Chiba, in the suburbs outside Ther “He has a leading-edge insight into communities “He Mr e. N . I enture capital firm he founded, Neoteny. He prefers to prefers He founded, Neoteny. capital firm he enture depth with people they would never otherwisedepth with people they would never meet. the Net,” using technologies on and the ways they’re says Lawr chairman of of Law at Stanford, Carlsmith Professor Commons, and author of the Creative and mass-market role-playing games are all instruments games are role-playing and mass-market that allo blogs and digital networks), Mr. Ito professes to have have to professes Ito Mr. blogs and digital networks), common the no particular agenda. Indeed, political is always and investments theme among his interests media and media-cr The N “These existing corporate struc- technologies destabilize social and corporate different but also create tures, and of anthropologist a mixture Joi’s structures. power activist; he and an outsider.” Platforms for Cross-Pollination for Platforms Mr with his fiancée, her mother, which he shares Tokyo, he is rarely not surprisingly, But, dogs, and a cat. three ther v As for many tearooms. Tokyo’s visitors in one of receive a nondescript office packed with pow- that’s Lab,” “Joi’s erful servers, monitors, an Internet 30-inch flat-screen connec- broadband and a massive telephone network, tion. stays up too late running raids and managing his guild of Warcraft. in World to Canada in 1966, he moved Born in Kyoto toddler. ela- e putting s why his ’ e capital. But That ying them out. entur ticipates. . And a lot of our early r (MIT Press, 2005). “He im- 2005). “He (MIT Press, er e this was all going to go. Then I e this was all going to go. Personal, Portable, Pedestrian: Mobile Pedestrian: Portable, Personal, ested in accepting v e that I was using.” e user of the technology befor t inter ’ en er espite his occasional forays into left-wing politics D Indeed, in nearly all of his investments, Mr. Ito has Ito Mr. in nearly all of his investments, Indeed, Even then, the founders of Six Apart — a husband- Apart then, the founders of Six Even vable Type, a leading software tool for producing a leading software Type, vable . Ito persisted. “Joi brought an enthusiasm as a user, brought persisted. “Joi . Ito o (he advised the Howard Dean campaign on its use of Dean (he advised the Howard merses himself in things; he par Mr says Mena assume in most investors,” don’t which we inde- in Japanese, Type Movable localized “He Trott. some money, also donated pendent of any funding. He about $1,500, which was just as a user; it was probably our biggest donation ev and NTT, tionships, like our partnerships with Fujitsu connections in Japan.” Joi’s helped by were University of Southern California’s Annenberg Center California’s of Southern University and coeditor of Phones in Japanese Life in Japanese Phones been an obsessiv way of learning is so different from academics or pundits from way of learning is so different tr who tend to talk about things without because he actually cred gets a lot of street I think Joi jumps in.” early involvement was his Typical any money to work. startup that created Francisco the San Apart, with Six M started in 2001 and using the program Ito blogs. Mr. the founders in 2002. “I startedapproached playing I sort of “and Ito, Mr. says blog software,” with around just clicked about wher blogging well. blogged like crazy until I understood and met everyThen I went blogging company worth that the company I ended up approaching talking to. made the softwar and-wife team named Ben and Mena Trott — told him Trott and Mena and-wife team named Ben they w Mr. Ito invests very early, when a few thousand dollars can make a significant impact, and focuses on ventures that will create something of value to society.

and then Michigan by age 4, when his father became a After high school, Mr. Ito returned to the United

f research scientist with Energy Conversion Devices (now States and attended Tufts University, where he studied e a known as ECD Ovonics), a pioneer in battery technol- computer science and hated it. He dropped out and t u r ogy, semiconductors, fuel cells, and photovoltaics. Mr. briefly went back to work for ECD, but Mr. Ovshinsky e s Ito’s mother joined the company as a secretary, and so persuaded him to give college another try. He enrolled t h

e impressed founder and Chief Executive Stanford at the University of Chicago, with a major in physics, c Ovshinsky that he promoted her through a series of but soon dropped out again, and became a disc jockey r e a management positions, eventually naming her president in Chicago nightclubs. “I think if I had stuck it out to t i v of ECD Japan. a Ph.D., I may have gotten to where I wanted to go,” e m An autodidactic inventor and labor activist, Mr. Mr. Ito says. “But I didn’t feel like spending four years i n Ovshinsky had a powerful influence on the young solving problems. I was still stuck with professors and d Mr. Ito, inculcating him with a fascination for both assistant professors who were telling me to memorize technology and its humanitarian potential. “He was very formulas and not try to understand things intuitively. active in the Detroit union scene,” Mr. Ito recalls. “So I That just didn’t turn me on.” was always interested in social movements, and I was After Chicago, Mr. Ito again worked with his encouraged to think and read about that a lot.” Mr. mother, who was then acquiring media properties in the 7 Ovshinsky says he regarded the young Joichi Ito almost U.S. for NHK, the Japanese public broadcasting net- as his own son, and found him receptive to complex con- work. He lugged camera equipment on a number of tel- cepts from a very early age — so much so that he put the evision and film sets, including The Indian Runner, a 13-year-old to work with scientists who needed comput- movie directed by Sean Penn, and then he began work- er help. “He was not a child in the conventional sense,” ing again for nightclubs, organizing events for them in says Mr. Ovshinsky. “I could see that Joi was very intel- Los Angeles and Tokyo. ligent, very alert, and very much into technology. No Meanwhile, around 1983, he had begun “playing one knew he was a child when he got on the computer.” around with computer networking,” as he later put it, At the same time, Mr. Ito says he grew up feeling using the teleterminals and early personal computers of like an outsider: “Detroit suburbs in those days were a the era to send digital messages back and forth on early difficult place to be a Japanese kid.” When he was 14, computer-based conferencing systems. his parents divorced, and he and Mimi, who is two years During this period, a mutual Japanese friend intro- 4

his junior, returned to Japan with their mother. In duced him to Timothy Leary, the former Harvard psy- 4 e u s s

Tokyo, he attended the Nishimachi International chologist and psychedelic evangelist who was anxious to i s s School and later the American School in Japan, where learn more about Japanese youth culture. “I hijacked the e n i s u

he became bicultural, as he calls it — comfortable, like situation,” Mr. Ito later wrote on his blog. “After dinner b + y g

many international school students, with “meshing up” I grabbed Tim and took him on a whirlwind tour of the e t a r t

different languages and cultures in his everyday life. Tokyo club scene. Tim got excited; he called these new s features the creative mind 8 oom in d means vider and incuba- o e them the r ix Apart Japan. Since Japan. ix Apart eoteny (the wor table with that role. After table with that role. eb solution pr e and I gav e also built Infoseek Japan, which Japan, e also built Infoseek W ely comfor k. . H ces on building S ow. “He was really the first of a whole was really “He ow. esour apanese er entir s r ’ es to seed his firm N After leaving PSINet, Mr. Ito launched Digital Ito Mr. After leaving PSINet, In late 1999, Mr. Ito’s emerging track record Ito’s late 1999, Mr. In eoteny arage, a J entur retention of childlike attributes in adulthood”) with attributes in adulthood”) of childlike retention apan [the company that acquired IIKK] for a year and IIKK] for a year apan [the company that acquired commercial Internet service in Japan. They couldn’t find They couldn’t service Internet commercial in Japan. and I lent them my wash closet “so space to rent, and put their router “We recalls. Ito Mr. my bathtub,” their connection ther exchange for free access. I served for free as CEO of PSINet exchange J and helped get them out of my bathroom eventually office.” into a real G tor, which he took public in 1999. Digital Garage split Garage took public in 1999. Digital which he tor, pub- which are into 12 independent companies, six of licly traded today was acquired by Infoseek, which was then acquired by which was then acquired Infoseek, by was acquired portal is the third-largest Japan Infoseek Today, Disney. and it and MSN), it is profitable, Yahoo (after in Japan continues to gr very interna- entrepreneurs: new generation of Japanese Alto–based of the Palo director Saffo, tional,” says Paul ever- Ito’s and a member of Mr. for the Future, Institute expanding networ Whitney and PSI firms J.H. the venture prompted V “ $20 million, to serve as an incubator for new infotech with the When incubators fell out of favor companies. attempted to Ito bubble, Mr. bursting of the Internet fund, but into a traditional venture transform Neoteny he was nev he decided to the blog company, Apart, funding Six and focus cash to the shareholders the remaining return N then, besides his involvement with Technorati, Mr. Ito Mr. Technorati, with then, besides his involvement . Mr con nter pple prod- This would arlow, a lyri- arlow, ’: y B aha err ew York Times. ew York etailer of A . Ito to John Markoff, to John . Ito N ohn P one, a r w realms. He launched two He w realms. cles. He recruited Mr. Ito as a Ito Mr. recruited cles. He r. Leary visited Tokyo, and the Tokyo, Leary visited r. acZ oduced Mr w intr , he met the founders of I eporter for the eated into a relatively staid life as a well- staid life as eated into a relatively or when D arlo etr rancisco, including J . B , Mr an F , had r oon after Around 1987, Mr. Ito first demonstrated his first demonstrated Ito Mr. 1987, Around S atar alley ucts, in Japan, but that failed. Then, when he moved Then, when but that failed. ucts, in Japan, Silicon Francisco’s with his mother and sister to San V cist for the Grateful Dead and early defender of online Dead cist for the Grateful re- Ito consumer rights. Mr. and speech, privacy, free turned the fav a digital graphics busi- Tokyo: computer companies in communica- ness, and a distributor of a group-based also tried to called Caucus. He package tions software launch a franchise of M propensity to start ideas propensity cross-pollinate businesses that and push media into ne godson, as he did with anyone he found sufficiently godson, as he did with anyone and his mother to the him and introduced interesting, he knew in Los Angeles media and technology players and S book together. two at one point attempted to write a networked pundit in Hollywood and San Francisco and San pundit in Hollywood networked technology and media cir funky Japanese kids ‘the new breed.’ He changed the He new breed.’ kids ‘the funky Japanese in, turn on, [slogan] to ‘tune out’ on, drop in, turn ‘tune as a counterculture after years Leary, take over.’” Dr. av Markoff gave Joi Ito a copy of MacPPP, the original a copy of MacPPP, Ito Joi gave Markoff Ito, Mr. To for the Macintosh. client software Internet was the Internet demonstrated how that simple program tool a scientist and engineer’s about to transform from into a mass media platform. “I got the ‘ KK, an American company tryingInternational to offer be a big change for media and much more quickly than be a big change for media and much more Ito. says Mr. thought,” anyone a technology r

4 4 e u s s i s s e n i s u b + y g e t a r t s e , he eally apan s r ’ ealthy e such eminences as er oogle, chairman of ICANN, and eryone gets through to Mr. Ito, eryone to Mr. gets through et has not made himself w epreneurs or activists with standing in the epreneurs n a world of highly political issues, it angelist at G f course, not ev O the chief Cerf, Vint very straight,” says “Joi’s That turmoil was evident in Mr. Ito’s first major Ito’s That turmoil was evident in Mr. estments Mr. Ito makes, he makes them all public. Ito estments Mr. ttending that meeting w nternet ev efreshing. He often provides very and practical useful often provides He efreshing. eaders can and do edit his content; and although ther eaders can and do edit his content; and espectful. I is no law requiring disclosure of the kinds of private of the kinds disclosure is no law requiring inv is his way of gaining such openness Maintaining of without the burdens eyes legitimacy in the world’s is too frequently He is a downside. but there authority, distracted and as y off the income from says, noting that he still cannot live alone. his investments to only a fraction of the calls who says that he responds of bit programmer’s as a well-regarded Just he receives. likely to be integrated in the next iteration code is more of Linux, entr granted an readily more global online community are Ito. audience with Mr. I Dinner at the 2002 World Economic Forum, held that Forum, Economic World at the 2002 Dinner Switzerland. instead of Davos, York in New year A chairman of Kobayashi, Yotaro of Sony; Idei Nobuyuki r conflicts which he has an idealistic streak, advice. But with the pragmatic, and I think that causes him a bit of internal turmoil.” step into the political limelight — at the annual J offers a copy of his computer’s calendar file. His cell calendar file. His offers a copy of his computer’s call can anyone phone number is on his blog, so literally published on a wiki so him; his political writings are r get any don’t “You protocol. TCP/IP the of coinventor and he’s candid, He’s maneuvering. that he’s impression r e ely n contrast, Mr. Ito n contrast, Mr. eporter asks about his When a r k style. wments, and other deep-pocketed clients. eation and distribution of media. ce Initiative, meaning that the underlying ce Initiative, e found that when I focus too much on wher our v cited about and just focus on helping those things, “I’ Most venture capitalists invest on behalf of pension capitalists invest venture Most e the cr s life and wor ’ eferably a public stock offering. I pen S eating something of value to society, whether that is whether to society, eating something of value to source code to the software is freely available and adapt- available is freely the software code to source for Mr. is also an apt metaphor open source able. But I An Open Source Life An Open Source to the portfolio companies adhere Ito’s of Mr. Most O fostering “one-to-many” publishing on blogs or facilitat- publishing on fostering “one-to-many” or ing global virtual chat rooms through communities games. online multiplayer invests very early, when just a few dollars can thousand veryinvests early, he is less con- make a significant impact, and he says with than he is cerned with business models and IPOs cr feel ex then I end up with the best returns.” Because they can be personally involved in only so many they can be personally involved Because typically large, companies, and because their funds are enter- they tend to make big bets on fairly established And since they prises, often in the multiple millions. within the life of a particu- return a positive must show exit strategy, lar fund, they look for deals with a clear pr funds, endo the money is, I end up finding fairly shortsighted oppor- if I focus on looking for says. “But Ito tunities,” Mr. people that I like and looking for things that I intuitiv has made personal investments in Socialtext (a wiki for in Socialtext has made personal investments (the photo community site), and enterprise), Flickr startups seek to ease and democ- that Web-based other ratiz whereabouts for the next few he immediately for the weeks, whereabouts

features the creative mind 9 features the creative mind 10 - - - eneurs epr ikipedians W nternet such a etty unique. Lots of peo s pr ’ That , he shifted his activism to organi er w eedoms that made the I ticles. y fr er s no substitute for such a synthesis of tech ’ e ted hanging out online with all the eanwhile, among technological entr At a very high level, I’m philosophically disturbed a veryAt I’m high level, e interested, but they don’t really dig in and get really don’t but they e interested, “ “He became very interested in my work, and actu- became very in my work, interested “He Ther ce Initiative; Mozilla, which produces the open which produces Mozilla, ce Initiative; M ds of each of these organizations, as well as that of ds of each of these organizations, as well our a bit parochial. As his interest in politics waned, he also in As his interest a bit parochial. fearful and govern- that corporate became increasingly or con- rapidly to weaken moving were ment powers strain the v potent democratic tool. by the damage that aggregation of power and authority of power the damage that aggregation by Mr. causes, whether in big business or the government,” to count- to foster online communities says. Seeking Ito er this type of po Commons, along zations like ICANN and Creative online efforts: other collective Open the with several S e-mail client; Thunderbird and browser Firefox source to use which trains human rights workers Witness, and sits on the He video cameras to document abuses. boar online encyclopedia, the volunteer-written Wikipedia, and those of most of his portfolio companies. ally star ple ar met, particu- one of the few people I’ve He’s involved. understand capitalists, who really larly among venture online, and he understands because he social networks digs in and gets his hands dirty full time.” in our chat rooms,” says Jimmy Wales, Wikipedia’s Wales, says Jimmy in our chat rooms,” and he became involved “He founder and president. edited some ar nology, social, and business know-how,” says Mr. Sifry says Mr. social, and business know-how,” nology, and venture capitalists, Mr. Ito’s not-for-profit work not-for-profit Ito’s capitalists, Mr. and venture cachet of being particularly him the gives plugged in. “ . Slate oom ear; Mr oken in many ed in the r evious y ect democracy. But fervor But ect democracy. .” y o uly dir ther since the pr e that democracy was br ds people for their obedience” and leaves ds people for their obedience” ealiz war e erse establishment elders gather r dei and the organizers of the Japan Dinner had Dinner of the Japan dei and the organizers elopment of tr . I Despite or because of this diatribe, Mr. Ito was Ito or because of this diatribe, Mr. Despite For a time, Mr. Ito threw himself into Japanese pol- himself into Japanese threw Ito a time, Mr. For ’t understand.” Nevertheless, he railed. Reform he railed. understand.” Nevertheless, ’t e need to do is just destr eported at the time. “The problem with ‘destroy and eported“The at the time. with ‘destroy problem to called again for revolution. r radi- the more rhetoric then coming from [the rebuild’ in the country]cal reformers is that everyone immedi- said. “What Ito part,” Mr. ately focuses on the rebuild w Fuji Xerox; Kakutaro Kitashiro of IBM Japan; and IBM Japan; of Kitashiro Kakutaro Xerox; Fuji high commissioner Nations the United Ogata, Sadako blaming dominated the discussion, Ito Mr. for refugees. the risk-av the world, making his effortsplaces around at home feel invited back in 2003, this time as MC of the event. But of the event. invited back in 2003, this time as MC if Mr for Japan’s moribund economy, as the Webzine Webzine as the moribund economy, for Japan’s has cooled with the nascent Japan in for political reform says, and he Ito Mr. economy, of the country’s recovery also came to r itics with his usual single-mindedness. In 2003, he pub- itics with his usual single-mindedness. In Democracy,” lished an online manifesto, “Emergent technology could facilitate which posited that Internet the dev plans for the Japanese economy read like “Zen riddles,” like “Zen read economy plans for the Japanese The comes of them. and nothing ever he declared, to change, a sys- its resistance by is defined bureaucracy tem that “ “fear fact,” he half-joked, (“In critics fearing retaliation. had, Japan feeling right now.”) is what I’m of retaliation if anything, fallen fur I hoped to temper Mr. Ito’s remarks by this show of mag- this show by remarks Ito’s hoped to temper Mr. had been warned, he said: they failed. He nanimity, the foreigners talk about complicated issues; “Don’t won

4 4 e u s s i s s e n i s u b + y g e t a r t s un this ercise power, ercise s just jumped ’ . There are compa- are There . nce he knows what he nce he knows efuses to ex olving to oi: O ticle that guild management in ar eb is ev ed esolutely r W ir W . He says he finds that people of widely . He er games represents the best kind of job train- er games represents Warcraft guilds could represent a management guilds could represent Warcraft en thinks about the fact that he , and he r pril 2006 Mr. Ito calls himself “guild custodian,” rather than custodian,” calls himself “guild Ito Mr. Even among Mr. Ito’s close associates, the idea that Ito’s among Mr. Even Management expert John Seely Brown concurred in concurred Brown Seely expert John Management er ev orld of ys to prototype with that evolve into serious tools,” into with that evolve ys to prototype ou need. I see this in J be committed to each other. So as a test bed for these as a test So be committed to each other. amazing.” ideas, this is actually pretty leader multiplay Dr. total-immersion course in leadership.” ing, as “a in part, watch- by says that he came to this view, Brown much of what you Warcraft, of World the “In Ito. ing Joi or accumulate the resources to improvise learn is how y in creative he becomes incredibly has to do, then really in the organization. He anywhere finding resources nev to find who knows found out how silos. He’s three over instead letting solutions bubble up through the guild’s instead letting solutions bubble up through membership make education levels and ages, cultures, divergent his contributions to the guild, and that equally valuable used least. And authority as founder is used best when can be r he is absolutely confident a company way as well. W laboratory offerings product for companies with real that sure they are draws some skepticism, but others say has a sense of what he is once again on to something. “Joi to “I think of Socialtext. chief executive Mayfield, says Ross WoW cued in to the fact that now a lot of people have games will be the next multiplayer and other massive platform that the nies that are realizing there’s an opportunity here.” opportunity an here.” there’s realizing nies that are an A - o erse e had w way v e committed e sufficed to pr eat deal of time. They ar craft guild a ne ar W obably hav ent kinds of management ideas I’ tant player is an unemployed bartender is an unemployed tant player un a raid of 40 people. e, manage, and motivate people. With his With people. e, manage, and motivate to says he sees in his . I . to r s rankings would pr ’ With his latest interest, in World of Warcraft, Mr. Warcraft, of World in his latest interest, With Long frustrated by the fairly conventional hierar- Long frustrated the fairly conventional by M . A to is entering a new domain: entrepreneurship within to is entering a new entrepreneurship domain: for companies with a bunch of people who are actually for companies with a bunch of people who are their alarm clocks for They will set very dedicated. 3 guild doubling in size everyguild doubling in size month, he does a lot of to add a or so, I have week “Every learning on the fly. new rank, build a whole bunch of new rules, and throw playing says. “I’m Ito Mr. in kind of ad hoc structures,” with all the differ to organiz duce a doctoral dissertation. And he is constantly in phone with the touch via e-mail, online chat, and cell — a div 250 members of a guild that he cofounded of Technorati. “There’s stuff going on at ICANN, “There’s Technorati. of and Creative Foundation, Frontier the Electronic singularly notice if you’re won’t Commons that you focused on closing business deals.” I has no money He made-up environment. a purely creator, Warcraft’s Entertainment, in Blizzard invested the in rising through but the hours he has invested game chies in even the most innovative technology compa- the most innovative chies in even nies, Mr body of game characters whose creators are scattered are body of game characters whose creators and age demographic groups globe, across the around nurse; is an emergency room leader” “raid His levels. another impor who has gone off his with attention deficit disorder of one of daughter the 9-year-old medication; and lately, been taking part. has these folks on his CEOs Keeping the same page and happy takes a gr to each other like people in a normal company wouldn’t

tures the creative mind a fe 11 features the creative mind 12 ty law .strategy- oper ersonal, ress, 2005): ress, P Reprint No. 06309 s RSS feeds at (communications ’ (MIT P s+b keitai ummer 2006, www S , eativecommons.org: Clearinghouse eativecommons.org: , sign up for June 2006, www.wired.com/wired/ June s+b ole-playing games as leadership training. Wired, nternet that balances intellectual pr eb site, http://cr April 2006, www.wired.com/wired/archive/ April tising Is Now,” Now,” tising Is W er xtols fantasy r + lickr site of photographs, two blogs, and links to the arious organizations where Mr. Ito works and plays. works Ito Mr. arious organizations where dv The Future of Ideas: The Fate of the Commons in a Fate The of Ideas: The Future (Random House, 2001): The cofounder of the Creative 2001): (Random House, Wired, aisuke Okabe, and Misa Matsuda, editors, Matsuda, and Misa aisuke Okabe, , a F es e of A c eason. to, D e CV e.” e business thought leadership e Commons utur eativ izuko I eb sites of the v r ortable, Pedestrian: Mobile Phones in Japanese Life in Japanese Phones Mobile ortable, Pedestrian: or mor The F Joi Ito, “World of Warcrack,” Warcrack,” of “World Ito, Joi P in the kind can thrive marketers How business.com/press/article/06204: of environment that Joi Ito’s life foreshadows. Ito’s that Joi of environment C on its board. Ito with Joi F www.strategy-business.com/rss. Resour Warcraft? of World Play Thomas, “You and Douglas Brown Seely John Hired!” You’re 14.04/learn.html: E our futur plus an “Whereis Joi” Features site, http://joi.ito.com: Web Ito’s Joichi exhaustiv W M sister. Ito’s Joi coedited by devices) in Japan, Lessig, Lawrence with public domain protections. and Randall Rothenberg, Frelinghuysen, John Vollmer, Christopher “ for open source approach to copyright and intellectual property to copyright and dilemmas, approach for open source Essays about the virtual community sparked by Essays about the virtual by community sparked archive/14.06/warcraft.html: Tribute to Blizzard Software’s “glimpse into “glimpse Software’s to Blizzard Tribute archive/14.06/warcraft.html: Connected World Commons argues for an I he continues to build social capital.” If the world of the world If he continues to build social capital.” becomes as colorfulcommerce and engaging as a influence will Ito’s game, Joichi fantasy role-playing be the r ’s developing ’s e y communities of t experiment in that ’ itotsubashi University om the ranks of his Warcraft om the ranks of his echnopolis Tokyo. Mimi Ito Mimi Tokyo. echnopolis T uited fr ofessor Lessig says. “H like World of Warcraft represents a represents of Warcraft World like r ecr total-immersion course in leadership. course total-immersion e,” P Guild management in multiplayer games games in multiplayer management Guild apan, called eat multiplayer game, he suggests, and the orga- eat multiplayer k in J er elected like guild leaders, b ome associates wonder whether launching another ome associates wonder whether launching est rather than members of geographic sectors, then wn, its staff r . “I’m quite certain that 10 years from now, Joi will Joi now, quite certain from that 10 years “I’m S Mr. Ito says he expects to launch a new says he expects to company of Ito Mr. e ev nternet cultur be at the center of whatever power there is in the there power be at the center of whatever I inter a chance of making it into have might well Ito Mr. Lessig of Creative the meantime, as Professor office. In will continue to play an ever Ito Commons suggests, Mr. of the Internet important in the evolution role more itself company will satisfy Mr. Ito, or whether his interest in or whether his interest Ito, company will satisfy Mr. games will last any longer than did his inter- multiplayer again, to complete his is attempting, yet est in blogs. He education and is studying at the H nizational structure will be modeled after lessons learned will be modeled after lessons nizational structure will prob- he concedes a feature games, multiplayer from venture- ably rule “Most financing. out conventional backed and public companies can comfortable with it,” just aren’t space, because investors he says. as Strategy Corporate of International School Graduate administration. a candidate for a doctorate in business TV on the MX show a weekly launched And he recently networ Web in politics if the a future have he might believes legislators of politics. If continues to change the nature ar guild, as soon as next year. Perhaps they will produce the they will produce Perhaps guild, as soon as next year. next gr his o what, and how to engage that person to help him. It what, and how the barriers in hierarchies.” completely slashes through an authority to speak in so many communities that strateg y+ business magazine is published by Booz & Company Inc. To subscribe, visit www.strategy-business.com or call 1-877-829-9108.

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