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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.

CITIZEN Group Vision 2030 defines our DX Vision as "Become a corporate group that will continue to create and enhance value from the user 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."

DX Vision of The CITIZEN Group
Figure

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 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 FY2024, 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.

DX Promotion Structure of The CITIZEN Group
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Roles

DX Promotion Office of CITIZEN WATCH's 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
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 half year)
Person in Charge of DX Promotion
  1. Summarize progress and issues based on DX promotion KPIs
  2. Communicate with the DX Promotion Office of CITIZEN WATCH'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 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 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 FY2024, we held three Data Utilization Workshops to increase our employees' skills in data-based strategy planning and decision making, with the participation of 84 employees. 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.

Securing and Developing Human Resources to Promote Transformation

The CITIZEN Group positions individuals accountable for exploring new business fields through DX transformation toward reforming corporate culture, one of the key initiatives to fulfill the DX vision, as "transformation-promoting human resources." As part of this approach, we undertake DX-oriented Group-wide and special-skill training tailored to specific job levels and roles. During the period of our first Medium-term Management Plan (FY2022-FY2024), our primary emphasis was on cultivating data scientists equipped to contribute effectively in practical operational contexts. Our training ranged from the basics of data analysis, encompassing programming and database skills, to specialized training to acquire advanced competencies in data analysis, including machine learning.

In FY2024, we also conducted a DX assessment of approximately 1,100 CITIZEN WATCH and CITIZEN WATCH MANUFACTURING employees and about 30 employees of Group companies to identify the quality and scale requirements for human resources in each department and the gap between those requirements and the status quo.

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