Management Strategy＞

ICT Strategy“Aggressive”and“Defensive”toward Full-scale IoT Era“Lifetime Service Hub”concept
The Group has a great advantage of holding goodcustomer assets mainly through Daimaru, Mtsuzakaya
and Parco. Currently, however, most of our contact
points with these customers are real stores and otherretail, which is only a small part of their lives.
Therefore, we intend to build a new customer basenamed“Lifetime Service Hub”and create a system
for “strengthening lifetime customer engagement.”
And thereby we will collect and use not only“fixedinformation”obtained when providing products andservices but also “unfixed information” obtained

through the establishment of a new company“JFR
Kodomo Mirai Co., Ltd.”is a part of our initiatives
based on the concept mentioned above. By contactingwith people in their infancy, which is the beginning oflife under the“Lifetime Service Hub”concept, andhaving many day-to-day communications with theirparents while putting the provision of high quality andadvanced early childhood education first, we would
like to create opportunities for providing new value.
Image of Lifetime Service Hub concept
BirthInfancy

Schoolattendance

Employed

MarriedChildraising

Secondlife

through daily conversations with customers andcommunities to understand customers more deeply
than ever and dramatically enhance engagement.
The“Lifetime Service Hub”is illustrated by thechart on the right. With so-called“era of 100-year lifeexpectancy”in mind, we will provide new products
and services that help relieve customers’“frustrations”
and“concerns”by having more contact points thanever and building long and deep relations with themon various occasions and milestones throughout theirDepartment
storeParcoJFR Card

Dimples’Tomonokai
J. Front Foods
JFR Kodomo Mirai, etc.

CRM

CRM

CRM

CRM

Customer proﬁle fordepartment stores

Customer proﬁle for
Parco

Customer proﬁle for
JFR Card

Customer proﬁle for
Dimples’Tomonokai
J. Front Foods

Analysis/proposal by AI

lives beginning from birth to expand our businessfields.
The“entry into early childhood education business”

28

Integrated database (DB)What is expected in the use of ICT particularly indepartment stores is the perspectives of the“provisionof new customer experience”and the“advancementof sales measures.”Beginning in the current fiscal
year, Daimaru Matsuzakaya Department Stores will

systems in the Group, mainly department stores,
including how the aging of existing systems isaddressed, and take inventory of these systems andwe will start a full-scale shift to cloud-based systems
according to the system policy developed based on
their results.

Management Strategy

Advancing sales activities using digitaltechnology

Image of cloud-based systems

promote full-scale digital strategy by incorporatingknowledge from outside the company.
Specifically, by introducing a communication-based
mobile application equipped with point card function(The payment function is scheduled to become
available next fiscal year.) starting from the Daimaru
Tokyo store in fall 2018, improving gaisho sales
activities using digital tools (SFA), and increasing
sales areas where inbound tourists can make mobile
payments, we will overhaul all sales process
operations to reform department store operations sothat they catch up with the era of ICT.
With respect to department store e-commerce (EC),we will revise the conventional“full category”lineup
conscious of real department stores by narrowing it
down to gift, beauty and food products in which thestrength of department stores can be shown, wewould like to achieve tangible results.

Work style reform starting from RPA
We are introducing RPA (Robotic ProcessAutomation) to realize the“work style reform”using
ICT. Specifically, at three companies including J.
Front Retailing, Daimaru Matsuzakaya Department
Stores and JFR Service, routine operations such asexpense calculation, download and tabulation ofaccounting data, checkup of data and creation ofand input to performance management table arepicked up to be covered by RPA. In fiscal year
2017, RPA was introduced to 48 operations among
them, reducing about 4,400 man-hours. In fiscal

Rebuilding “department store digital strategy”

by actively incorporating knowledge from outside the company“Provision of new customer experience” and“advancement of sales measures”
Storeyear 2018, RPA will cover additional 60 operations,
expecting about 5,400 man-hour reduction. During
the five-year period of the current Medium-term
Business Plan, we will automate about 28,000
man-hours by expanding RPA to 300 operations

Mobile app, payment processing
before customers, etc.

across the Group to increase productivity.
While going paperless using this initiative, weGaisho

New SFA,sales activities using ICT, etc.

InboundMobile payment,
use of SNS, etc.

will realize BYOD (Bring Your Own Device) ensuringsystem security and create a telework environment
for full-scale“work style reform.”

Revising department store EC
Narrowing down existing “full category”
EC lineup to gift, beauty and foodWork style reform using ICT
Radical overhaul of operation frames centered on paperless operations using ICT

Shift to cloud-based systems in the Group
It is necessary to introduce“high speed,”“low cost”Sales
Order
ArrivalStorage

Back oﬃce

Sales

Settlement

Payment Performance
Closingcollection management

TaxHR
Admin

and“secure”systems in order to diversify businesses

Promoting operation process reform using ICTand develop new businesses using IT. Therefore, theAutomation/streamlining ofadministrative processing

Group decided to build IT infrastructure, which serves
as a basis for creating and operating systems, in thecloud, and beginning in fiscal year 2018, the systemsof J. Front Retailing, Daimaru Matsuzakaya Department
Store and other subsidiaries and associates in theGroup will be basically developed and operated in thecloud. At the same time, we will study hundreds ofIntroductionof RPA

Introduction of
new GW/WF

Paperless
Introduction ofadvanced core system

Expansion of scope of
the Group shared services

Radical reform of the Group operations

Realizing BYOD (Bring Your Own Device)
Creating telework environment
Full-scale “work style reform” through operation reform using ICT

Integrated Report 201829