Promotion of DX

The Group has set out the "TOPY Sustainable Green Vision 2050," aiming to realize a sustainable and prosperous society by 2050. This vision is based on efforts to achieve carbon neutrality and provide safe and healthy lifestyles. Furthermore, with the aim of realizing this vision and achieving sustainable growth, the Group has positioned the further promotion of digital transformation as one of the key themes of its sustainability strategy.

To date, we have implemented a variety of measures, including revamping our core business systems, visualizing energy usage, and implementing smart factories (SF) at our production sites, resulting in numerous success stories. At Toyokawa Plant, we used an "energy visualization system" to simulate power demand based on the factory's operating status, achieving a reduction in contracted power consumption by leveling out peak power consumption. In fiscal year 2024, we received the Chubu Bureau of Economy, Trade and Industry Award for Outstanding Energy Management.

Going forward, in order to further evolve the technological capabilities that are the source of our Group's strengths, we will centrally manage data on operations, energy, quality, etc., promote the use of AI, and use that data to generate ideas that transcend organizational boundaries, accelerating the creation of new value as a united company.

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.

Currently, our digital transformation efforts have reached the level 3 stage, which is "organizing information." Going forward, we aim to create even greater benefits by linking data on production, the environment, quality, and more.

Efforts to turn Toyokawa Plant into a profitable business
As part of the smart factory initiative, an environment was created that enables the collection and effective analysis of the model line's operational performance and some quality data, creating a cycle of improvement that utilizes data and resulting in increased productivity and improved business efficiency (Figure 1).

As a concrete example, we use a "weekly daily score sheet" to judge whether each efficiency indicator is good or bad, and then conduct a detailed analysis of the areas that are scored red, identify the problems, and make effective improvements in order to improve productivity (Figure 2).

This activity is a precedent case where digital experts and digital challengers have created a "weekly daily score sheet" based on data analysis and promoted business transformation using data. This initiative has progressed to level 3 in our DX promotion roadmap, where information is compiled. In the future, we aim to achieve even greater results by linking and utilizing data on energy, operational performance, quality performance, etc.

We have deployed a company-wide data utilization platform called "Data Driven Platform (DDP)." DDP is a system that automatically collects, visualizes, and analyzes data from each internal system, enabling quick and accurate information aggregation and decision-making, which previously took time and effort (see diagram on the right).
This system was used for attendance management, making overtime hours by department visible. Average overtime hours for the month and any sudden increases in overtime can be grasped in advance, and a system has been put in place for the workplace to take prompt action when signs of exceeding the standard appear. Furthermore, the visualized information is shared not only with the department itself but also with related departments, and is used to coordinate inter-departmental cooperation and support systems.

This system also contributes to establishing a culture where employees themselves take action based on data. It has evolved from the traditional process of "checking after closing and responding the following month" to a management style of "grasping on the spot and acting on the spot," supporting continuous improvement and accelerating work style reform.

With the aim of strategically promoting DX across the company, we established the "Digital Transformation Strategy Department" on April 1, 2022.
Up until now, we have built a digital transformation foundation for equipment, processes, activities, etc. through the introduction of an ERP system and the promotion of smart factories. The establishment of Digital Transformation Strategy Department will encourage collaboration and cooperation with related departments, strategically promote digital transformation across the entire company, and strengthen the development of human resources who can utilize big data, etc.
Furthermore, we will establish a "DX Promotion Council" led by General Manager of of DX Strategy Department as a system for promoting DX that spans each business division and head office department, and will determine specific activity themes to 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.

The Group regards information security as the foundation for enhancing corporate value, and is implementing company-wide measures based on the "Basic Information Security Policy" throughout the Group. In fiscal 2025, based on the knowledge gained through a Group-wide security assessment, we will further raise the standards of network configuration, backup, authentication, log management, etc., and will enhance education. This will establish IT governance that balances security and flexibility, and lay the foundation for a continuous digital transformation system in accordance with the "Digital Governance Code 3.0."

The DX talent we are looking for are people who can make full use of digital technology, have the expertise to lead digitalization within an organization, and are willing to take on challenges with a desire to innovate.We divide these DX talent into three levels (digital experts, digital challengers, and digital users), and we are actively developing them by defining the roles and requirements for each level.

We have set a goal of training approximately 600 staff-level employees as DX talent by the end of fiscal 2025. In fiscal 2024, we encouraged all employees to take DX catch-up courses aimed at digital users in order to foster the necessary level of digital knowledge and mindset for utilizing data, thereby expanding the base of digital users. We have also established a training system for digital challengers and digital experts who will lead improvements using digital technology, and are implementing training there. At our company, we are not limited to training DX talent solely in terms of skills; we are also working to foster an organizational culture that encourages challenges without fear of failure, and to create a system that encourages challenges.

June 1, 2022 DX certification acquired

June 1, 2024 DX certification renewal

On June 1, 2024, business strategy for promoting DX and our efforts to develop DX human resources were recognized, and our certification as a "DX Certified Business" was renewed under the DX certification system established by the Ministry of Economy, Trade and Industry.
The DX Certification System is a certification system based on the Act on Promotion of Information Processing, which came into effect on May 15, 2020. Businesses that comply with the basic requirements of the Digital Governance Code, which summarizes the responses required of managers in light of social transformation brought about by digital technology, and are recognized as being ready to promote DX (DX Ready), are certified as "DX Certified Businesses" by the Ministry of Economy, Trade and Industry. The certification is valid for two years, and our company obtained the certification on June 1, 2022, and this is the first time it has been renewed.

Our group has positioned DX as one of its important management strategies, and will continue to strategically promote DX in the future to change people's mindsets, improve the environment, and create new value.