Digital innovations

Message from the CDO

常務執行役員 CDO  小林 総一
常務執行役員 CDO  小林 総一
常務執行役員 CDO  小林 総一

Senior Managing Executive Officer
Chief Digital Officer
Soichi Kobayashi
October 2024

We are promoting digitalization to achieve business structure reforms. Our goal is “Shaping Change.” Responding to the change in the structure of energy and industry, we are working to transform the quality of work and business models by rebuilding IT infrastructure and utilizing a variety of digital tools. The key to this change is the power of people. We believe that it is crucial to cultivate talented people for digital transformation. Our goal is for many employees to be able to naturally use digital technology in their work. We are actively implementing and utilizing generative AI. We utilize generative AI in a wide range of tasks, from everyday operations to research, for everything from PoC to full-scale implementation.
Through these activities, we aim to enhance productivity and job satisfaction and build a solid foundation for transformation.

  • PoC: Proof of Concept

Strategy

Strategic Framework

戦略骨子図

*Online Merges with Offline

We are working on DX with the dual focus of ① creating new value for our customers and ② enhancing in-house productivity.
In creating new value, we will organize and integrate information from each of our businesses into an information utilization platform, aiming to provide information- based services and evolve the customer experience, while realizing cross-marketing and providing new value.
In addition, under the Smart Yorozuya concept, in cooperation with partners, we will prepare a menu of services to provide localized services in a timely manner and build a customer interface that allows customers to contact these services centrally.In order to secure the resources needed to create this value, we have positioned the enhance productivity as a priority issue and, since FY2022, have been strengthening our initiatives using digital technology.

Initiatives

Enhanced Productivity

We are promoting the evolution of work styles and business transformation using digital technology, aiming to speed up decision-making, advance operations, and improve efficiency. One example of the evolution of work styles is the promotion of the use of generative AI. In fiscal 2023, Idemitsu's version of generative AI and AI-equipped office tools will be rolled out throughout the company, and as a result of initiatives such as seminars and introduction of use cases, approximately 7,500 employees will be using them as of July 2024, and more than 80% of regular users have experienced improved productivity. In addition, some departments are working to make internal data the target for generative AI, and productivity is improving through the use of generative AI tailored to the needs of each department.
We are also expanding our on-site work improvement activities using no-code * and low-code * system development tools. Work efficiency is improving by having on-site employees who are not in the IT department develop their own apps, and as of July 2024, approximately 600 employees have experience developing their own apps.
In business transformation, we work with each business division to visualize the business and information flows of problematic processes, identify bottlenecks and duplications, and then implement digital improvement measures. We are also developing a data utilization platform that centrally manages data both domestically and internationally, promoting data visualization across businesses and accelerating decision-making.

*No-code/low-code: Refers to development with (as little) programming as possible.

Nurture Personnel Who Support DX

We have systematized the necessary knowledge and skills so that all employees can use digital technology autonomously, and are developing a training program based on that system. There are three levels of proficiency: "Basic (able to understand basic knowledge and ways of thinking)," "Core (able to lead the implementation of DX for issues)," and "Expert (able to formulate strategies)." By 2030, we aim to train 10,000 "Basic" employees, 3,000 "Core" employees, and 450 "Expert" employees. From fiscal 2023, we will implement a training program based on e-learning, and by July 2024, the number of "Basic" employees will reach 3,000. We have also started practical hands-on training to aim for "Core" employees, and through this type of human resource training, we are also revitalizing productivity improvement activities by applying DX at each workplace.

Idemitsu Kosan aims for three skill levels of “human resources that support DX”

Idemitsu Kosan aims for three skill levels of “human resources that support DX”

● Changes in the number of basic human resources and those with experience using AI generation

ベーシック人財者数と生成AI利用経験者数の推移

●Number of basic human resources and number of people with experience in using generated AI

Number of basic human resources and number of people with experience in using generated AI

BPR activity “Co-creation with employees (Digital for Idemitsu)”

We started the BPR activity "Digital for Idemitsu" in April 2020. We are working to transform entire business processes using digital technology to create new social and customer value, and to help our employees accumulate co-creation experience and knowledge.
We conduct multiple on-site verifications, confirm the results of each, and improve our business processes by starting small. We are making steady progress in creating synergies between divisions and optimizing information within divisions as a whole.

●Main initiatives of Digital for Idemitsu

Related business
Main initiatives
Power/Renewable
We have set up a specialized project team and are moving forward with the aim of rebuilding the electric power system with an eye on the future, building a BI platform centered on sales data analysis, and realizing fundamental business reforms.
Lubricants
Manage the global lubricant value chain (research and development, procurement, manufacturing, logistics, and sales) using KPIs to improve ROIC and visualize the business status to realize data-driven and quick business decisions. We are building a business intelligence foundation.
Refinery
Established a DX promotion system at Refinery and related departments and implemented business process improvements targeting maintenance operations. We have designated Chiba Complex as the "DX Mother Plant" and are gradually expanding this system to other Refineries/Complexes.

Evaluation

DX certified

DX認定ロゴ

Our company obtained DX certification (certification by the Minister of Economy, Trade and Industry) for the first time in 2021, and subsequently obtained certification in 2023 as well.