Panel２theme

Management and HR
as Strategic Drivers for SDG Goals

DX strategy for contribution to achieve
the SDGs at production sites.
Idemitsu Kosan Co., Ltd.
DX Activities Overview

Basic strategy towards 2030
We believe it is our responsibility to contribute to social challenges in addition toproviding stable energy supply.

Our corporate vision for 2030 is to becomeYour Reliable Partner for a Brighter Future
and we will fulfill three responsibilities through our business activities:
Responsibility to protect the environment and lifestyles:

Energy/material transition to a carbon neutral/circulatory society
Responsibility to support regional communities:

Next generation mobility & community for an aging society
Responsibility to provide for society with technological capabilities:

Advanced materials to make it possible to overcome such challenges
We will fulfill the three responsibilities through our business activities.
1

Idemitsu’s Future Plan

2

Idemitsu’s Future Plan

Digital3Key issues to be prioritized in the medium-term
management plan and examples of initiatives
Structural reforms of revenue-generating corebusinesses
Expansion of growth businesses
Creation of next-generation businessesHarmony with the global environment andsociety
Progress in governanceAcceleration of digital innovations

Examplesof initiatives

Improving the sophistication and safety of refinery
maintenance operations with DX.
The goal is to improve operational efficiency, reduce repair costs,
improve safety, and increase worker motivation at the manufacturing
site.
4What is DX (Digital Transformation) ？
Transforming the Entire Business Processes with Digital Technologies

to Create New Customer Value and Improve Employee Experience
Idemitsu Kosan is working on co-creation from three main perspectives in order to create an ecosystem

Co-Creationwith Business Partners
Digital for Ecosystem

Co-Creation
with Customers
Digital for Customer

Co-Creation
with Employees

Co-Creation throughInter-Company Collaboration
Major corporations, startups,
open innovation, etc.

Providing New Valueto Customers
Enhance service provided to existingcustomers and secure new customers

Creating New Work Styles
for Employees
Overall optimization through company-wide
operational process innovation

Digital for idemitsu
5

The first step is plant maintenance work.

Digital for idemitsu

Background of Plant Maintenance Business Reform
There were many issues in plant maintenance work, both interms of management and work sites.

Management
Cost increase
Equipment trouble/
Aging of equipment

Work site
Increased burden onemployees
Retirement of veteran employees/
Huge manual work

※Problems are concentrated in SDM work.
※SDM:Shut Down Maintenance6※

We developed the SDM applications（Ver1） Digital for idemitsu
Visualizing
Frontline
Problems

Materialize
100-day sprint !

ExperimentStart date: October 1, 2020
Digital Transformation
Office’s first investment criteria

Shifting to a swift experience through anew approach (agile, design thinking)※SDM: Shut Down Maintenance （Smart Ｄigital Maintenance）
7SDM Apps Visualization of utilization status
Aggregation period：
August 1 2020 ～ June 6 2021
Approved Inspection Report

Reduction of working hours

Digital for idemitsuContinue to make
improvements based on data
Total accessusers

Total access

Change in thenumber of users

Percentage of access by affiliation

Changes in the numberof accesses

Number of accesses by page

Visualization of effects
Use a single input , Automate data collection analysis and approval circulation
System input time for risk assessment：
results related to conservation work

５～１５min ／ １work

Aggregation time for equipment performance data： ４７min／ １work→

Few minutes ／ １work

ー30％

→

２min／ １work

ー70％
8

Our team working on agile development.

Digital for idemitsu

These initiatives helped create a corporate cultureof working as one team to create better products instead of theformer relationship with buyers and sellers.
The maintenance operator discusses new features andimprovements in the software product with the developers.
Developers program immediately and deploy next week

We don't set up regular meetings to discuss about issue,
we try to discuss about it right away.

9Points noticed through promotion of PJ and Way to proceed
It is important for the members of the work site to experience it.
Issue

Goal

Present the strategy／
Approach with technology support

3 Self-propelled
Business units
promote DX on
their own.

DX Division

2 Co-creation

DX native team

Teach DX skills

Practicing DX/
Transforming
the corporate culture

Work site employees have a strong
sense of responsibility for theexecution of their work.
Many medium-term issues andshortfall in human resources

1 Experience

Promote understandingof DX

DX Division leads
the implementationand verification.

DX Division10Roadmap for DX Organizing
The presentGenerating Stage
Proof of Concept by project team
（7 persons per team）

Transformation Stage

Mature stage

Verify deployment to business
units

Business units run themselves inDX.
DXDX

Establish DX Division

Business
unit ADX Native CompanyDX

Business
unit BDX

January 2020

September 2020

1case

4~5caseDX Division

DX

Transformation Center●Formulation of a companywide digital strategy●Building skill teams●Creating new businessCompany-widereform promotion

DX Division take the lead → Business units take the lead(3~12Month)11

Promotion of DX in manufacturing sites～ Toward achieving the SDGs ～The three inviolable rules of DX promotion

123

Serious intentions of top
management for employees
Excellent human resources
to support management

A corporate culture that
promotes challenge
12Thank you for your attention