DX
(Stance and Approach)
Basic Concept
The mission of Digital Transformation (DX) for SEKISUI CHEMICAL Group is to accelerate and support growth business strategies and structural reforms to realize the Long-term Vision.
Against the backdrop of major changes in the external environment, the Group has four sense of crises: a lack of governance and labor, diversification of management data, and a reduction in profitability due to changes in the market. In light of these factors, we are implementing DX as a means to survive against global competition.
Our Group-wide DX is centered on business process transformation, and we are advancing three reforms: governance innovation and business model transformation from the perspectives of "visualization and standardization*,” productivity improvement, and sophistication. We are also strengthening our foundation, including in IT systems and personnel, to support these transformations.
DX Overview
SEKISUI CHEMICAL Group is promoting thorough standardization and data-based productivity improvements as "business process transformation.”
In order to accelerate growth strategies and structural reforms on a Group-wide and global basis to realize our Long-term Vision, we are shifting to a phase of further digital expansion and the creation of benefits in each of our global management foundation, purchasing, and sales and marketing domains. Governance will be strengthened through the operation of a global management foundation and the deployment of an indirect purchasing system. At the same time, we will fully create the benefits of the DX projects we have developed to date.
In order to support the realization of these goals, we are developing human resources who can make full use of digital tools and data, and establishing a global cyber security response system.
- 06-01
- Note: Visualization and standardization: standardize operations, introduce a global management foundation, renew infrastructure and network
DX Promotion System
- 10-01
Risk Recognition and Response System
DX delays or stagnation in SEKISUI CHEMICAL Group could lead to the risk of delays in responding to increasingly sophisticated governance-related and other social demands. There is also a risk that the current reliance on manpower may continue.
With this in mind, the DX Subcommittee, chaired by the executive officer in charge of the Digital Transformation Department, was newly established under the Sustainability Committee. This subcommittee monitors the progress of digital transformation from a management perspective and makes decisions on countermeasures.
In addition, since the use of information systems and data is essential to the promotion of DX, it is important to address risks related to information management. We have established CSIRT as a cyber security response system, and are also conducting employee awareness activities and incident training.
Targets
| Major Implementation Measures | Management Indicators | Final Fiscal Year (FY2025) Targets of the Current Medium-term Management Plan |
FY2023 Results |
|---|---|---|---|
| Global management foundation innovation | Development status and deployment progress toward the construction of global standard operations and system models | Start of renewal and deployment of the global management foundation; realization of the business transformation we are aiming for (introduction locations) | Completion of subject business process development, review of roadmap based on test results, completion of requirement definitions for global expansion, and under design |
| Reform of global indirect purchasing | Progress status of initiatives aimed at indirect material purchasing (development and utilization plans) | Realization of favorable purchasing through centralized purchasing and start of overseas expansion | Completion of the deployment of indirect purchasing systems to major domestic bases and start of effects materializing through increased use |
| Enhancement and improvement of efficiency of sales and marketing duties | Progress status of initiatives aimed at sales and marketing reforms (coverage rate and workload shift) | Top-line improvement through the establishment of data-based sales activities and strengthening of customer management | Establishment of new business processes through the use of sales data and verification of the use of external data |
| DX human resource development | Status of progress of initiatives to secure human resources that employ digital tools and data to generate benefits | Continuous acquisition of DX promotion human resources | Development of core human resources by offering practical courses to solve business issues digitally |
| Realization of diverse work styles through digitalization | Progress and usage status of initiatives for establishing new normal work styles and strengthening global communication | Provision of global communication infrastructure and overseas expansion of standard terminals | Development of integrated authentication infrastructure for cloud services in use, provision of global communication infrastructure in Japan and prior introduction to certain overseas bases, and formulation of procurement schemes for standard terminals |
Global Management Foundation
To support SEKISUI CHEMICAL Group's strategy of growing globally, we are working on the renewal of our core system (global ERP*), which serves as our management foundation. Through this, we aim to achieve the following.
- Visualization and analysis of data required for decision making to maximize global consolidated profit
- Improve productivity of indirect operations through standardization and improvement of operating efficiency
- Improve governance (internal controls) and minimize risks by standardizing and visualizing operations globally
In fiscal 2023, we completed the development of target business processes and reviewed the deployment roadmap based on the results of operational tests. We also proceeded with the definition and design of requirements for global expansion. In the future, we will proceed with preparations for full scale operation and make adjustments for deployment.
- ERP：Enterprise Resources Planning.
system for integrating and centrally managing core operations, such as corporate accounting, human resources, production, and sales operations.
Purchasing
As part of our global purchasing reforms, we are working to standardize purchasing operations and visualize transaction data using systems.
By visualizing global transactions, fraud can be deterred and detected at an early stage. We will also improve purchasing power and reduce procurement costs by achieving overall optimal purchasing. In addition, we are working to establish systems and infrastructures that can continuously reduce costs by minimizing low-value-added operations through the introduction of systems.
In 2023, we completed the introduction of the indirect purchasing system to our main domestic bases and made efforts to firmly establish its use. We are also reducing procurement costs by utilizing accumulated data and strengthening negotiating power and management/control through consolidation.
Sales and marketing
Our Group aims to thoroughly improve efficiency and productivity through the standardization and automation of business operations related to sales and marketing, and to improve the top line through the use of sales data.
Problems arose in operations related to sales and marketing, such as the different systems used by each divisional company, and the large portion of work that was personalized. In response to these problems, we are working to shift to value-based operations so that we can provide better value to our customers by engaging in business processes more effectively.
In fiscal 2023, we are making progress in visualizing the status of customer transactions and expanding our efforts to strengthen our sales processes through data analysis, including the use of external data.
We are also working to further secure sales data, an essential part of our DX initiatives.
DX human resources
In order to significantly improve the productivity of operations, it is important to standardize, automate, and improve the efficiency of operations through the use of digital technology and data. In order to accelerate DX, we are also promoting the development of so-called DX human resources, who will be able to use digital technology to solve business issues and spread those activities in the field.
In fiscal 2023, we established five practical courses with the goal of solving business issues. Through classroom lectures on digital tools and practical training to solve business issues, DX business core-level personnel who have improved their digital skills and realized the benefits of DX will further promote DX activities in the field.
Diverse work styles
In order to realize a diverse range of work styles, the Group promotes "remote work," a way of working that utilizes in-house IT systems from locations other than offices (home, outside, etc.). We are also working to strengthen global communication with a view to achieving long-term growth on a global basis.
In fiscal 2023, we began to further develop our Integrated User Certification Infrastructure to ensure the safety and secure use of cloud services, which are rapidly being introduced, and to shift to communication platforms and digital devices that can be used globally. Through this IT infrastructure, we have been able to achieve both work productivity and cyber security in a variety of work styles, including telecommuting. We will continue to realize safety and timely information sharing on a Group-wide and global basis.
Increasing the speed of material development through digital science
We are promoting the use of Materials Informatics (MI) in order to respond to the environmental changes surrounding the development of new materials (shorter product life cycles, resource constraints, and the need to both diversify material requirements and accelerate R&D activities). One of the features of the Group’s MI is the fusion of informatics technologies, such as computational science, image analysis, evaluation analysis, and system design capabilities.
Currently, work is currently being conducted on a number of MI R&D projects. Specifically, we have achieved such results as considering the formulation design of film products at a faster pace than in the chemical industry, and significantly shortening the time required to develop adhesives for electronic material tapes.
In the future, we will accelerate the development of materials as well as the development of innovative fields under our Long-term Vision.
By expanding the scope of value creation using the power of digital technology, we will be the driving force behind the Group's sustainable growth.