Promoting Digitalization

Digitalization: A New Corporate Culture

The Kyocera Group is pursuing company-wide digital transformation (DX) to increase our competitiveness and respond to societal trends ranging from a declining population to changes in the way people work.

Leveraging DX into Corporate Transformation (CX) and Business Transformation (BX) by Enhancing the Corporate Culture and Workforce Expertise

The Kyocera Group is promoting digital transformation (DX) in all business segments in an effort to meet new societal needs while increasing our competitiveness in rapidly evolving markets. To maximize the value we provide our customers, we promote changes in corporate culture and employee awareness about data-centric management and organizational optimization for use as the driving force to strengthen our management base. We consider DX a necessary first step in advancing toward corporate transformation (CX) and business transformation (BX).

image: Leveraging DX into Corporate Transformation (CX) and Business Transformation (BX) by Enhancing the Corporate Culture and Workforce Expertise

Moving Toward Digitalization

Company-Wide Use and Sharing of Sales Data

We are currently building a Company-wide platform for information sharing and visualization, transitioning away from a sales approach focused on individual product lines and toward sales process pipelines. We expect this to serve as a catalyst for business expansion through increased cross-selling and joint proposals. As of December 2023, we have implemented customer relationship management (CRM) tools at 13 divisions and shifted to a centralized customer knowledge base. In addition, in digital marketing, we have introduced marketing automation tools in seven business units to share and visualize market knowledge and customer information across divisions.

Data Collection / Analysis Platform

We have developed an informatics environment that allows us to format and analyze data collected from each department. Using an in-house training program for AI and data analysis engineers, we have created a new strategy to improve manufacturing quality and productivity.

Initiatives to Double Manufacturing Productivity

We plan to massively boost productivity through deeper application of AI-driven data and robotics. Current efforts include improving "visualization" by integrating production process data into our digital platform, utilizing AI for defect and failure prediction, and enhancing manufacturing automation and autonomy through robotic assembly. A new line with smart factory functionality began operating in April 2021.

Network and Security

We have optimized our network environment in response to the rapid adoption of cloud computing in business. Development of an IoT network for factories is also under way. A new department has been established to brace for cyberattacks and manage security through a protection and monitoring system that identifies suspicious activity.

Improving Office Efficiency: A Bottom-up Approach to IT Skills Development

To streamline general affairs and administrative functions, we promote information sharing over our cloud environment using a code-free interface with no programming required. This facilitates a bottom-up approach to human resource development while supporting company-wide rules and guidelines.

Digitalization Timeframes

Since digitalization takes time to show results, we classify initiatives by timeframe - including those expected to bring immediate benefits, those contributing to the medium-term management plan, and those that support long-term growth (10-year horizon). Within the immediate-impact category, we are expanding deployment of cloud applications, applying AI to office processes, and expanding information-sharing over company-supplied smartphones. To support the medium-term plan, we are increasing data-driven operational efficiencies by creating a shared platform accessible to sales, manufacturing, and administrative teams. For long-term growth, we will implement measures for human resource cultivation preparing for ESG and human capital management, and the timely provision of accurate information to society, which bring the Kyocera Group closer to our goal of becoming "The Company" - the enterprise to which all others may respect.

*1　Office365 is a product developed by Microsoft Corporation; reference used by permission.

*2　Marketing Automation

*3　Sales Force Automation

Human Resource Development by Position and Function

DX supports human resource development by enabling better education and training tailored to an employee's position and function. Manufacturing employees may receive periodic training on how to calibrate sensors that provide data from the production line; how to process real-time data for peak machine efficiency; how to use data analysis and predictive AI; and how to support upstream processes for digitalization. All of this is designed to cultivate skills development on the job.
We also hold training on DX concepts for department managers, with sessions explaining the manager's roles and responsibilities for optimal DX implementation. This increases awareness of the need for DX and ensures a corporate climate that emphasizes a bottom-up approach to cultivating new talent. Post-training surveys have shown these sessions to be successful in deepening managers' understanding of DX. We will continue to provide training to deepen employee understanding of digitalization in the workplace.