Promoting Digital Transformation (DX)

Basic Approach to DX Promotion

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

CITIZEN Group Vision 2030 defines our DX Vision as "Become a corporate group that will continue to create and enhance value from the user’s perspective" and positions the active use of data and digital technology as our basic policy toward the fulfillment of this vision. To realize this objective, we will promote DX in a wide range of areas, from business reform to human resource development, through the three key initiatives of "transformation to a highly profitable structure through business process transformation," "creating new user value by changing products and services," and "reforming corporate culture."

The CITIZEN Group's DX Promotion Structure

The CITIZEN Group has assigned an officer in charge of DX promotion and a DX promotion specialist to each major Group company in Japan. Furthermore, the IT Strategy Department of the Digital Management Center of Citizen Watch Co., Ltd. acts as a coordinator to confirm progress in DX promotion and solve common issues throughout the Group, such as human resource development.

In FY2025, we held a semiannual progress report meeting where top management, the officers in charge of DX promotion, and the DX promotion specialists gathered together to share the status of each company's initiatives. Furthermore, we actively promote DX throughout the Group. This includes organizing study meetings to discuss and resolve challenges among our major Group companies in Japan, sharing successful DX initiatives, and providing information about digital tools.

Roles

IT Strategy Department, Citizen Watch Co., Ltd. Digital Management Center

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. Support the promotion of DX in the Watches Business and within the Group, focusing on advanced and cutting-edge themes (AI and data utilization).

Officer 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. Spread awareness of the need to promote DX within the company
3. Attend progress report meetings (once every six months)

DX promotion specialist

1. Summarize progress and issues based on DX promotion KPIs
2. Communicate with the DX Promotion Office of Citizen Watch Co., Ltd.'s Corporate Planning Department
3. Report on DX promotion status and issues at progress report meetings
4. Discuss DX promotion status and issues at Digital Discussion Meetings

Main Initiatives for DX Promotion

Citizen Watch Co., Ltd. has implemented product lifecycle management (PLM) tools to manage information pertaining to the diverse components constituting the movement of the watch, which serves as the core of the timepiece. This shift entails moving away from conventional forms-based approaches and transitioning toward 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 improve efficiency and effectiveness.

In FY2025, the company held a total of five training sessions focused on the use of data and AI within departments, with 125 employees participating. Additionally, as part of The CITIZEN Group's overall DX promotion initiatives, we established a DX portal site on the Group's intranet, where advanced DX initiatives from each company are introduced and training content on fundamental knowledge of DX is provided.

Citizen Watch Co., Ltd. received the DX Certification under the DX Certification System established by the Ministry of Economy, Trade and Industry (METI) on June 1, 2026.