“ DX strategy for
surviving the times ahead ”

Mino Many companies are promoting DX now. Hitachi Zosen is also working on a DX strategy, but in fact, our full-scale efforts in DX started four years ago, in FY2018. To build a competitive advantage in a world that is changing every day, we need to change the way we work. We have always had the foresight to anticipate the needs of the times and adapt to change. Looking ahead, our focus is on presenting services and solutions that make use of digital technology.

Hashizume I joined the company in 2018 for that very reason—to realize DX so that Hitachi Zosen may keep on growing. Hitachi Zosen already boasts solid trust in the field of manufacturing. That mindset has been ingrained in our culture over a history of 140 years. But as the times change, so does society, the environment, and business. Our times today call for initiatives toward carbon neutrality. The wind is favorable for the Hitachi Zosen Group, that much is certain, but that alone doesn’t ensure our survival. To continue winning when society at large is trending toward digitalization, we must grow digitalization as a strong point. Our DX strategy is to make digitalization a source of income across the Hitachi Zosen Group.

Mino We need to make use of data and digital technology toward changing our business model. It’s important to think of business and systems as a package. The question isn’t whether or not to promote DX at Hitachi Zosen. We are at the stage where the question is how to approach and realize DX.

Mino The purpose of Hitachi Zosen’s DX strategy is to “Maximize customer value and improve profitability.” We want to use digitalization to create products and services that help resolve real challenges.

Hashizume Hitachi Zosen’s DX strategy is built largely on two foundations—Business DX for transforming our business itself through digitalization, and Corporate DX for transforming our internal ways of working through digitalization.
The first foundation, Business DX, seeks to link systems, products, and services with digitalization. Features like digital automatic control can contribute to labor saving. In an aging society with a low birthrate, for example, automated waste collection through DX can help reduce costs and errors and improve efficiency. As you can see, Business DX is about digitalizing to upgrade machines and systems.

Mino A good example is the Hitz Advanced Information Technology Center (A.I/TEC), which opened in October 2018 as a hub for using ICT such as remote monitoring, IoT, big data, and AI. It provides remote monitoring and operation support services.

Hashizume The policy on Business DX is to“ Create mechanisms needed by business divisions to autonomously promote DX.” By doing so, we will build the foundation for forming a new business model linked with digitalization.

“ DX environment for
dramatically improved productivity ”

Mino The other foundation is Corporate DX, where the policy is to“ Create mechanisms for improving the productivity of internal operations and supporting work style reforms.”

Hashizume Initiatives toward streamlining are already underway both in work environments and with works equipment. Moving forward, we will aim to develop infrastructures for achieving dramatic improvements in the workplace and productivity.

Mino As far as Corporate DX goes, initiatives have accelerated amid the COVID-19 pandemic. The truth is, our DX strategy is designed also to break away from existing systems. As you may have noticed, Hitachi Zosen was quick to develop telework environments after a state of emergency was declared in Japan due to COVID-19. We certainly did not predict that emergency measures would be taken. But we did anticipate travel restrictions for commuters due to the Tokyo Olympics, and in response, had already established a means of working from home.

Hashizume Because we had already completed a renewal of Hitz-ERP (Enterprise Resource Planning) systems with SAP S4/HANA and developed an IT environment including remote desktops beforehand, we were able to shift to telework as soon as Japan went into a state of emergency. Hitachi Zosen has always achieved growth by having the foresight to anticipate the needs of the times and adapt to change. I feel it’s in our culture to recognize the next essential move and swiftly embrace it. As a result, we were quick to develop a new environment and able to adapt flexibly to the unprecedented situation without compromising the quality of our operations.

Mino We are promoting Corporate DX in an orderly, systematic manner. And because we have a solid foundation in place, we can afford to take external factors into account, make improvements, and set our sights on further upgrades. I am proud to say this is a reward for our active investing.

“ Concrete details of
our DX strategy toward 2025 ”

Mino Application of IoT is part of our DX strategy. To this end, we hope to connect all connectable products with A.I/TEC by FY2025. While we develop and improve the IoT Secure Platform, several projects are already in progress that are potential future businesses. One is automatic control of Energy-from-Waste plants. And recently, another with high expectations is the filter press.

Hashizume We have a long a varied delivery record of filter presses that are used in everything from production processes to environmental conservation measures like wastewater treatment. Filter presses use consumables like filter cloths, which are designed to wear and are frequently the subject of inquiries from our customers. We are working to connect a system that will monitor flow rate and other data, and when certain conditions have been met, detect signs of wear and issue a replacement alert. The application of IoT will help us visualize the process leading up to failure, so that we can repair and address the problem before the failure occurs. Being able to suggest replacement before the customer inquires about machine malfunction can lead to regular maintenance, a fresh approach that will enhance customer satisfaction and perhaps increase repeat orders.

Mino The Hitachi Zosen Group offers many other social infrastructures. If we think about this in the context of digitalization, we can see that problem solving and services related to operating status monitoring and maintenance are a source of endless possibilities.

Hashizume DX stands for digital transformation. D for digital can be done with technology and capital, and efforts in this area are the responsibility of the ICT Promotion Headquarters and the Intelligent Machinery Research Center. X for transformation, however, calls for ideas on how to proceed. Whose job is it to come up with these ideas? The answer is all officers and employees in business divisions. The views and actions of staff in the front line of sales are especially important. Your efforts to input knowledge about digitalization will lead to the output of ideas that meet advanced customer needs, and putting those ideas into practice will lead to the sustainable growth of Hitachi Zosen. I believe this is the essence of our DX strategy.

Mino Moving forward, growing digitalization as a strong point of Hitachi Zosen presents the challenge of personnel development. We have launched a training program to foster human resources for promoting the Hitz DX strategy and defined an indicator of 500 DX personnel developed by FY2025. Hitz 2030 Vision declares our resolve to unite as one and promote our DX strategy. To this end, we plan to create more opportunities for communication like this, systems for presenting our ideas, and latforms for sharing our dreams.

Hashizume DX is said to be comparable with the Industrial Revolution of the 18th century. The ICT Promotion Headquarters is responsible for honing the Hitz DX strategy as a new strength of the Hitachi Zosen Group and preparing the foundation for creating digitalized services. But the ICT Promotion Headquarters cannot start a revolution alone. Let’s work together, unite as one, and aim to realize our DX strategy.