Promoting Digital Transformation (DX)

Basic ideas about DX promotion

In the "Citizen Value Creation Story," which models sustainable management, The CITIZEN Group positions digital transformation (DX) as closely related to all business activities, from product development to manufacturing, distribution, and sales.

In The CITIZEN Group Vision 2030, we outlined our DX vision "To be a corporate group that can continuously create and improve value from the user's perspective.” In line with this vision, our basic policy is to promote digital technology and data use. To realize this objective, we will promote DX in a wide range of areas, from business reform to human resource development. Our efforts in this context will be based on the three pillars of "transformation to a highly profitable structure by transforming business processes," "creation of new user value through product and service reform," and "reform of corporate culture."

The CITIZEN Group's DX Promotion Structure

The CITIZEN Group has assigned an officer in charge of DX promotion to each business headquarters. Furthermore, the DX Promotion Office of the Corporate Planning Department of CITIZEN WATCH acts as a coordinator to confirm progress in DX promotion and solve common issues throughout the Group, such as human resource development.

In FY2022, we held a quarterly progress report meeting where top management, the director in charge of DX promotion, and the person in charge of DX promotion gathered together to share the status of each company's initiatives.

Furthermore, we actively promote digital transformation (DX) throughout the Group. This includes organizing study meetings to discuss and resolve challenges among our business headquarters, sharing successful DX initiatives, and providing information about digital tools.

Roles

CITIZEN WATCH DX Promotion Office Of Corporate Planning Department

1. Organize the purpose and goals of the transformation, formulate measures to change awareness and behavior involving related parties, and improve the corporate environment.
2. Actively develop digital/data utilization measures that can be horizontally deployed within The CITIZEN Group and aim to improve operational efficiency and sophistication

The director in charge of DX promotion

1. Ensure consistency with business strategies and existing DX measures, and back up DX promotion from a company-wide perspective.
2. promote the need to promote DX within the company

Person in charge of DX promotion

1. summarize progress and issues based on DX promotion KPIs
2. communication with CWC DX Promotion Office of the Corporate Planning Department

Main initiatives for DX promotion

CITIZEN WATCH has implemented Product Lifecycle Management (PLM) tools to manage information pertaining to the diverse components constituting the watch movement, which serves as the core of the timepiece. This shift entails moving away from conventional forms-based approaches and transitioning towards a centralized approach that integrates design, development, manufacturing, and information management.

By adopting this approach, we are fostering seamless information exchange between our manufacturing and sales departments. This is facilitated through real-time data connectivity among our affiliated companies, ultimately enhancing productivity in movement design and manufacturing operations. This transformation involves a parallel review of our business processes to achieve improved efficiency and effectiveness.

Securing and developing human resources to promote transformation

Within The CITIZEN Group, individuals accountable for driving DX initiatives and spearheading the exploration of novel business realms are categorized as "transformation-promoting human resources." As part of this approach, we undertake comprehensive DX-oriented training tailored to specific job levels and roles across the organization.

In the inaugural phase of our medium-term management strategy (FY2022-FY2024), our primary emphasis was/is on cultivating data scientists equipped to contribute effectively in practical operational contexts. Our training endeavors extend beyond the basics of data analysis, encompassing programming and database skills. We also provide specialized training to acquire advanced competencies in data analysis, encompassing areas such as machine learning. Through these initiatives, we are equipping our workforce to navigate the evolving digital transformation landscape with proficiency and confidence.

Moving forward, our approach involves a comprehensive assessment encompassing the identification of human resource requisites, their extent, and any existing disparities vis-à-vis the present scenario. In this endeavor, we factor in both the mid-term management plan and the anticipated contours of the forthcoming business landscape. To effectively address these imperatives, we are contemplating the formulation of diverse educational initiatives with a strong emphasis on DX domains. These programs will be meticulously structured based on the insights gleaned from our assessment, ensuring alignment with our strategic objectives and the evolving demands of the business environment.