Creating value through DX

DNP will leverage its unique hybrid strengths, in real and virtual domains as well as manufacturing and services, to create new business models and transform existing ones, in order to provide new value to a more sustainable society.

Takahito Kanazawa
Managing Director
General Manager of Advanced Business Center / Education Business Headquarters Representative / Content & XR Communication Headquarters Representative / Information System Div. Representative / Chairperson of Information Security Committee / ICT Management Office, Technology & R&D Headquarters Representative

Creating Value Through DX for a Better Future

We are driving value creation through DX, with strategies based on both creating value and strengthening our business base.

Visualization of Creating Value Through DX for a Better Future

Utilizing DNPʼs core values in image processing, security technology and optimized business process design, we will continue to enhance our human and intellectual capital, and engage in complex and continuous activities with the comprehensive strength of All DNP̶leveraging our organization, corporate culture, human resources and DX infrastructure as synergistic capabilities.

Application of AI and Advanced Technologies

AI Initiatives

We advance co-creation with outside partners to create new value using DNPʼs unique strengths and external connections and to explore the potential of generative AI.
We have increased the sophistication of our technology for recognizing the structure of a document, which we acquired via the secondary use of printed data, enabling us to develop our unique data formatting technology which dramatically increases the accuracy of generative AI responses. We will roll out solutions leveraging our knowledge in, for example, the processing and formatting of different documents.

Establishment of the DNP Group AI Ethics Policy

Inappropriate use of AI can cause issues such as infringement of human rights and privacy, discrimination and dissemination of false information.
The DNP Group has established the DNP Group AI Ethics Policy to ensure appropriate, effective and efficient use of AI for value creation toward the realization of a sustainable, better society and more enriched lives.

DNP Group AI Ethics Policy

Examples of Materiality-based Projects

A society where people can embrace mindfulness, safety, security and health

Authentication and Security

We are expanding the use of authentication and security by acting as the starting point of trust, and are realizing a seamless, safe and secure world through this trust. In addition to our authentication technologies and security solutions, we support customers in enhancing business continuity by providing consulting and human resource development.

A society where people can communicate effectively and easily

XR Communication

XR (extended reality) Communication lets people of all ages, genders, languages and backgrounds move back and forth between real and virtual worlds while remaining connected with each other. Through XR technology, we plan to create new experiential value and economic spheres.

A society of mutual respect

Regional creation and community development

To realize "smart cities," we will work closely with our partners to create mindful, content communities where everyone can live active lives, in their own way, and feel the real value of diverse experiences.

Achieving economic growth and environmental conservation in society

DNP GREEN PARTNER

At DNP, a specialized team supports companies and activities addressing environmental issues. Leveraging our past experience and achievements, we contribute not only to business continuity but also to raising corporate value through environmentally conscious products and services, and optimal communication strategies.

DX promotion to strengthen management foundations

Realizing data-driven management

The environment surrounding businesses and the needs of customers are growing more diverse and complicated and they are becoming hard to predict. Taking this as an opportunity, we facilitate quick managerial decision making using data.

Diagram of Achieving Data-Driven Management

Amid the progress in digitalization, we build data management infrastructure for centralizing the accumulation, analysis and visualization of enormous amounts of information. The democratization of data expands the scope of its use for the visualization of investment plans, salespeopleʼs demand forecasts and the reinforcement of supplier relationships.
We are increasing the sophistication of our DX infrastructure in combination with modernization, globalization and the improvement of employeesʼ digital proficiency using AI and technology.

Accelerating value creation with no-code development

Realizing ideas and initiatives at an early stage accelerates the creation of new products and services and corporate transformation. Actively utilizing no-code development tools, we have established a new operational process where people who are inexperienced in programming can put forward and even implement ideas by themselves. This accomplishment has been praised and has resulted in DNP winning the Excellence Prize at the 2nd No Code Promotion Association Awards.

Using digital twins to optimize production and strengthen supply chain management

To address the labor shortage resulting from the decline in the working population, we are working on the transition to smart factories. Utilizing data to transform experienced engineersʼ tacit knowledge into explicit knowledge, in addition to the utilization of manufacturing data, we seek to transform the design and operation of production lines. Digital twins simulating factories in virtual spaces dramatically optimize production lines. We will establish a cycle of acquiring data from production lines, accumulating data, analyzing data using AI and applying the insights we gain on the production line. We will continue to implement the transition to smart factories.

Diagram showing how we are improving operational efficiency through smart factories

In addition to simply making factories smarter, we expand the sophisticated use of data throughout our supply chains to comprehensively address issues in 2024, such as logistics, natural disaster and infectious disease risks, to move toward carbon neutrality, and to institute numerous other initiatives. We will achieve many positive outcomes, such as increasing the flexibility of our production plans and shortening the time before a product can be brought to market. Moreover, we will actively contribute to the resolution of social issues through energy saving, resource recycling, product recycling and other activities.

DX promotion and control unit

The Chief Digital Officer (CDO) appointed by the President supervises company-wide activities relating to DX. We have established a full-time DX promotion and control unit at the head office and, in cooperation with individual business segments and other divisions in charge of new business development, R&D and information systems, we are implementing a range of measures across the entire Group to promote digital transformation.

DX Promotion Organization Chart

We have established a new business development organization designed to foster innovation in a highly flexible environment, and are boldly taking on the challenge of developing new businesses through digital transformation (DX). We foster values such as taking on challenges without fear of failure, collaborating across internal and external boundaries, and taking proactive, rapid and agile action to promote continuous change.
To solve social issues and create new value, industry, government and academia co-creation and collaboration is necessary, in addition to in-house efforts. We accelerate the provision of new value using the P&I LAB to innovate based on conversations with customers and partners using diverse knowledge and perspectives, and using DNP INNOVATION PORT to promote co-creation with startups and emerging companies, among other initiatives.

Securing and developing human resources

We develop human resources capable of building businesses by utilizing digital technologies and data leveraging the domain knowledge they have acquired through their work. Led by our operational divisions, our operational transformation is under way using generative AI in an environment in which approximately 30,000 DNP Group employees are able to use generative AI. We seek to enhance knowledge and skills through DX literacy and education in the area of design thinking, and to foster a mindset of taking on challenges through our ideathon and hackathon. To enable the improvement of specialists for the promotion of DX, we have established the ICT professional system, encourage the acquisition of DX-related qualifications and provide highly specialized and practical education in the areas of agile development, cloud computing and AI and data science. Furthermore, we develop human resources to support specialists.

DX human resources definition, visualization and training

Defining, visualizing and developing DX talent

In the face of evolving industrial structures and societal shifts, we are committed to cultivating talent capable of actualizing DNPʼs DX initiative, “value creation through P&I innovation”. We have defined DX talent in alignment with the Digital Skill Standard (DSS) established by the Ministry of Economy, Trade and Industry.
We define DX foundational talent as individuals who posses DX literacy and view DX as a personal responsibility, encompassing all employees of the DNP Group. DX advanced talent are specialized individuals who support the DX initiatives within their respective departments, and candidates for DX advanced talent are selected and developed from the pool of DX foundational talent at the departmental level. ICT talent is encompassed within DX advanced talent, and we will continue to strengthen this core group moving forward.

DX human resources definition and visualization promotion diagram

DX foundational talent

We conduct DX literacy level assessments to visualize current skill levels. Based on these results, we provide DX literacy education tailored to each individualʼs level through e-learning and in-house training programs to facilitate skill improvement. By the end of fiscal 2023, 24,408 individuals had completed the basic DX literacy e-learning course, and we aim for a target of 27,500 employees completing the course by the end of fiscal 2025.

DX advanced talent

We are building practical training programs aligned with business objectives to advance talent development. Among these, ICT talent are being developed to achieve a target of IT Skill Standard (ITSS) level 3 or higher, with 824 individuals reaching that level in fiscal 2023.

  • *IT Skill Standard (ITSS) level 3 indicates a level of proficiency where one possesses applied knowledge and skills, can independently make judgments and carry out tasks related to their responsibilities.

Trends in the Number of People with Skill Level 3 or Higher Based on the IT Skill Standard