DX at the Toyota Boshoku group — aiming to surpass global suppliers

DX at the Toyota Boshoku group, a company-wide initiative

To accelerate digital transformation (DX), in April 2021 the Toyota Boshoku group established a company-wide promotion system. In line with the introduction of the Chief Officer system, a Chief Digital Officer was newly appointed and the DX & IT Promotion Segment was established as the lead organization under the Chief Digital Officer. To achieve the 2025 Mid-term Business Plan, which started around the same time, we are using digital technology to reform manufacturing and other business processes.

In the 2025 Mid-term Business Plan, our target is as follows: As an interior system supplier, become a company that serves as “Home” and secures competitiveness that can surpass global suppliers. To realize our target, what should we do, and what can we do, in terms of DX? Based on the Corporate Value Enhancement Scenario of the mid-term business plan framework, we established four basic policies as shown in the figure below, and organized measures for each.

Overview of DX at the Toyota Boshoku group

Reform of business processes, leading to improved business speed and quality

Founded on one of the basic policies, Enhance Competitiveness, we are promoting the transformation of business processes and the strengthening of core businesses through the use of digital information and digital tools. We are implementing this robustly in all kinds of business processes. For example, in manufacturing, we are using digital technology to strengthen proposals, shorten lead times, and enhance quality in processes ranging from sales planning to production and logistics. The data accumulated here will also be used for financial and business management, leading to faster management decision-making.

In order to facilitate the smooth coordination of information between divisions, we are building an information utilization infrastructure that consolidates the know-how and data accumulated and managed by each division, which can be effectively used by other divisions as well. Our plan is to make accurate information available to everyone at all times by eliminating the need to gather it independently when wanted, and by doing away with the need to make separate requests to the division in charge. By developing and effectively utilizing such an environment in all kinds of operations, we will evolve into a stronger organization. The Toyota Boshoku group is a global manufacturer comprising 91 companies, approximately 45,000 company members, and revenue of 1.5 trillion yen. We are convinced that the benefits to be gained by DX will be significant.

Digitalization of information in each process

Developing DX human resources and creating an environment that helps them to maximize their potential

Among our basic policies, we place particular emphasis on DX human resource development. We are focusing on identifying and developing human resources who will lead the global DX strategy that will take shape going forward, and by extension, who will lead the further growth of the company. At the same time, we are working to create an environment in which DX human resources can achieve their full potential. No matter how much outstanding DX talent there is, good results will not be obtained if they are unable to demonstrate their abilities as expected or find themselves working single-handedly. We believe that we need to foster a culture and raise the level of knowledge and literacy so that everyone in the workplace can aim for DX together.

In order to accelerate the use of digital technology with total participation, a digitalization consultation service has been established within the DX & IT Promotion Segment. Currently, awareness within the company is generally growing, and the number of participants in various digital training programs is also increasing. Nonetheless, how well individuals are actually utilizing digital technology varies from person to person, and in some cases, they are having trouble figuring out what to do. In light of this situation, the digitalization consultation service listens to company members’ problems and what they want to achieve through DX, and provides support by proposing ideas for digital utilization, estimating the impacts and benefits, and offering advice on the operational aspects. Our goal is to create an organization in which not only DX human resources, but all company members proactively utilize digital technology while accumulating hands-on experience in their respective workplaces.