Digital transformation (DX) is being promoted in many companies, and the same applies to well-established companies that have been in business for over 100 years. It is a long-established company that is sometimes called an "old-fashioned way of thinking", a "vertical organization", or "personalism", but there are many cases where it is a top runner in the promotion of DX with cutting-edge initiatives. Here, as a successful case, we will introduce the cutting edge of DX that Ebara Corporation, Yokogawa Electric Corporation Corporation, and Tokio Marine Holdings, Inc. are working on.
Ebara Corporation promotes the DX strategy with "offense" and "defense"
In recent years, business transformation through DX has become an urgent task for many companies. In particular, so-called long-established companies may be in trouble because they cannot get out of the analog culture and the culture that depends on the experience of veteran employees. However, in today's world of increasing uncertainty, business is constantly changing, so long-established companies need to transform their organizations by actively utilizing digital technology and establish a system that allows them to grow continuously. . From here, we will focus on the DX of long-established companies and explain their success stories.
First of all, it is a DX case of Ebara Corporation, which was founded in the first year of the Taisho era. EBARA CORPORATION currently has more than 100 affiliated companies, including those overseas, with more than 17,000 employees. It was originally a university-launched venture company, and its founder, Mr. Issei Hatakeyama, based on the theory of Professor Ariya Inokuchi, put it into practical use as the "Inokuchi type centrifugal pump." Therefore, the DNA of actively taking on new challenges has been passed down.
"The founding spirit is 'enthusiasm and sincerity.' This means that nothing is impossible with enthusiasm and sincerity, and I agree with that," said Hiroyuki Owase, the company's executive officer and general manager of the information and communications department. increase. Our businesses include the Fluid Power Business, the Environmental Plant Business, and the Precision Machinery Business, each of which has its own company system.
EBARA CORPORATION has formulated a long-term vision "E-Vision2030" that looks ahead 10 years from now, and has established a medium-term management plan "E-Plan2022" as a backcasting approach. It clearly states that "the transformation of products, services, and business models through the promotion of DX."
“Management strategy / business strategy and IT strategy / DX strategy should be two sides of the same coin. We are working on 'business transformation' and 'creation of new business'" (Mr. Kowase)
In aggressive DX, for example, there is work to stir garbage to improve combustion efficiency at a waste treatment facility. Traditionally, this was done by veteran employees, but we have automated this with robots using image processing and deep learning. In this way, we are actively utilizing digital technologies such as IT, IoT, and AI. Defensive DX utilizes ERP, CRM, global procurement system, talent management system, RPA/AI.
Aiming for integrated global management
According to Mr. Kowase, the use of ERP was essential for management reform from international management to global management. Global management, which does not have specific legal entities in each country, is suitable for low-cost operations, strengthening governance and internal control, and can respond quickly to rapid changes in business, including M&A.
"As part of this effort, we aim to introduce ERP to all group companies by the end of 2024 and standardize operations globally," says Mr. Kowase.
By unifying the systems that were previously closed to each company with ERP, management can be visualized in a more timely and accurate manner. At the same time, to strengthen the organizational structure, the management team, including the president, will participate in hiring highly specialized human resources with knowledge of DX, and a dedicated system (CoE) for ERP introduction. Furthermore, we are working on sophistication of business management and business reform. In addition, in order to strengthen security measures, in the future, it will work on developing DX human resources and improving information literacy.
Yokogawa Electric Corporation promotes DX on both internal and external axes
Next is the case of Yokogawa Electric Corporation. Established in 1915, Yokogawa Electric Corporation Corporation has a corporate philosophy of contributing to the realization of a more affluent human society through the themes of 'measurement', 'control' and 'information'. We provide products at the center.
The company's Digital Strategy Division is promoting DX with the mission of transforming the Yokogawa Group from a conventional manufacturing industry into a world-class solution service company that integrates OT and IT. Among them, Junko Yamashita of the company's Digital Strategy Headquarters says that they are working on DX by dividing them into "internal DX" and "external DX".
"Internal DX is an initiative that aims to become a digital enterprise so that the Yokogawa Group itself can serve as a use case for DX. On the other hand, external DX is an initiative that is close to our customers' transformation to become a digital enterprise." (Mr. Yamashita)
Penetration of data-driven culture
A common issue with DX conversion in companies is that processes and systems exist for each business division, function, and region, leading to low productivity and low speed. Therefore, the Yokogawa Group is working on "data analysis that leads to action" to realize data-driven management. Specifically, we will instill a data-driven culture using VDA (virtual data analytics), which analyzes data in a virtualized form. For that purpose, we use "Splunk", "Tableau", "Driverless AI", "LUMINOSO", etc.
“This has enabled us to quickly catch up on changes in business and technology, and to make accurate proposals, which can be used for stable operation and cost reduction. We will be able to take measures to achieve , and by providing feedback, we will be able to further improve accuracy.” (Mr. Yamashita)
Complete process from data collection to analysis
At the Yokogawa Group, we aim to create new added value by linking and utilizing data so that we can link the flow of development, production, sales, and purchasing. To do this, we need an environment that allows us to immediately visualize the data our business needs. We divided it into data engineering, data blending, and analysis processes, and introduced the tools mentioned above at each point so that we could do it all at once.
Regarding AI initiatives, he said, "Human resources specializing in AI are expensive, and if they are included in the budget for the next fiscal year, it will affect the speed of business. We are aiming to create new added value by establishing a system that can analyze data such as optimizing inventory and predicting sleep. "I'm sorry," says Mr. Yamashita.
Tokio Marine Holdings, Inc. Promoting Reforms from the Perspectives of “Internal Structure” and “Provision of Value”
Finally, there is the case of Tokio Marine Holdings, Inc.. Tokio Marine is Japan's oldest non-life insurance company and one of the many companies founded by Eiichi Shibusawa in the early Meiji era. The Group operates domestic property and casualty insurance, life insurance, international insurance business and other general businesses.
The group's digital strategy consists of "reformation of internal structure" to increase productivity and realize a lean management system, and "reformation of value provision" to create a new axis for growth and strengthen problem-solving capabilities. It is characterized by its global digital synergy. DX is also progressing along these two axes.
We are building a next-generation framework to advance this initiative. This consists of an “infrastructure strategy” that separates and seamlessly connects the three areas of SoE, SoR, and SoI; There are three "organizational and process strategies" that enable departments to work together to achieve speedy development.
Building a system for training data scientists
Regarding the data strategy, Tokio Marine & Nichido Systems Executive Officer, Digital Innovation Headquarters Gota Murano said, "Data preparation and use cases are important, but in order to lead the development of new businesses that make use of insurance data, We established Maritime dR (TdR).”
In addition, in order to develop data scientists, we have set up three levels and launched a program called "DS Hill Climb" aiming for the highest level. It is a long-term training curriculum with a total of more than 270 hours, and since last year we have also accepted students from outside companies.
Also, in order to promote DX, we need a data steward who organizes and prepares the data used by data scientists. Tokio Marine Holdings, Inc. employs a strategy of producing data stewards from Tokio Marine & Nichido Systems and sharing them throughout the group.
Build a new SoI environment on the cloud
In terms of our infrastructure strategy, in addition to SoE and SoR, we built SoI (System of Insight), an environment for integrating and utilizing data, on the cloud.
"We have a data lake and a data lab here, and we can provide services in a way that does not affect the customer's environment by promoting external cooperation, API utilization, and in-house production." (Mr. Murano) )
As for the organization and process strategy, we are strengthening the data management system to promote the data strategy and building a DX promotion system that integrates the business and IT departments. Specifically, the Digital Innovation Division established at Tokio Marine & Nichido Systems and the Digital Strategy Department at Tokio Marine Holdings have jointly established a data utilization promotion organization as a CoE.
Furthermore, as an initiative for new ways of working, we have also established the Ginza Digital Lab (G/D lab.), where development is carried out in collaboration with users and partners.
“At the Ginza Digital Lab, which will serve as a DX base, development that fuses online and offline is possible. If you want to proceed with agile development while collaborating in an open environment, please visit us once,” says Murano. He concluded the session by saying,
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