Promotion of DX

We have been promoting the company-wide development of energy visualization through the renewal of the core business system (introduction of ERP system) and the use of Kanagawa Plant as a model business site, as well as digital innovation and energy-saving activities in the manufacturing area through the Smart Factory in a phased manner.
We are working to accelerate DX by developing these smart factories into a company-wide "DX" system that will promote the recognition and improvement of not only operations but also management issues, as well as the development of human resources and organizational climate that utilize data throughout the company. In addition, by centrally managing and instantly sharing the abundant data collected from each organization, we will create new perspectives and ideas that transcend organizational boundaries to create new value. We also view DX promotion as an important management strategy for our group, as evidenced by our acquisition of certification as a "DX-Ready Business (DX-Ready)" by the Ministry of Economy, Trade and Industry in June 2022.

The business environment surrounding our group is facing an ever more uncertain and rapidly changing competitive environment, including intensifying global competition and climate change responses such as carbon neutrality. In this environment, our customers are also accelerating their digitalization, such as BIM application in the construction industry and CASE and MaaS in the automotive industry. In order to respond quickly to these changes in the environment and co-create with our clients, the use of digital technology has become indispensable.

Our maturity level is currently "Level 2," where data is visible, and we have completed building the foundation for DX. We are currently promoting small theme activities to clarify the objective from individual optimization to overall optimization by analyzing, evaluating, and predicting changes in production and facility operation information.
In the future, we will systematically promote DX activities, aiming for "Level 6," where new ideas and inspiration are obtained while accumulating small effects in a short period of time.

On April 1, 2022, we established the “Digital Transformation Strategy Department” for the purpose of strategically promoting company-wide DX.
Through the introduction of ERP systems and the promotion of smart factories, we have built a DX foundation for facilities, processes, and activities. Through the establishment of Digital Transformation Strategy Department, we will promote cooperation and cooperation with related departments, strategically promote the conversion of the entire company to DX, and strengthen the development of human resources who can utilize big data.
Furthermore, as a DX promotion system that crosses each business division and head office department, we will set up a “DX Promotion Council” led by General Manager of of DX Strategy Department, set specific activity themes, and promote DX.

We have established a company-wide DX Promotion Council and departmental subcommittees to build a promotion structure. We aim to achieve results by promoting initiatives based on a digital value tree that can clarify the cause-and-effect relationship between the purpose of measures and methods in relation to the desired state.
In order to realize the results of digital utilization in a short period of time, the DX Promotion Subcommittee in particular is implementing and evaluating small theme measures.

Our group is actively developing human resources capable of business transformation and the use of digital information, and is simultaneously promoting measures to raise the standards of the entire group (improving efficiency and sophistication of operations) and training individual experts. doing.
In addition, as part of our group-wide improvement measures, we will prioritize the introduction of digital technologies that help resolve specific daily concerns of field and staff members, and work to spread operational innovation.

By the end of FY2025, we will train approximately 600 staff members to become DX human resources. In order to develop these employees, we will establish an education system according to the level of DX human resources.