The Kureha Group has positioned promoting digital transformation (DX) as one of the most important measures. Based on the DX infrastructure that we have built up to date, we will enhance our corporate competitiveness by leveraging data and digital technology.
Looking back on the seven years of Kureha DX (KDX) that began in fiscal 2017, we reviewed it from a systemic perspective and established a new DX Center in our headquarters organization in April 2024. Under the strengthened organization, Kureha will work to restart its DX strategy as KDX2.0 from fiscal 2024.
Kureha's DX strategy is not just about streamlining operations through the use of digital technology, but is also about improving management decision-making, maximizing earning power, and promoting innovation by leveraging data and digital technology.

In the spirit of "If it doesn’t exist, make it." we will continue to provide new value to our customers with unique and differentiated products by leveraging data and digital technology to improve the productivity and quality of our operations.

In April 2024, Digital Transformation Center was newly established in the headquarters, taking over the Digital Transformation Project which was started from October 2017. It consists of Information Systems Department and Digital Transformation Promotion Department, formulating policies for DX and IT, and unifying and coordinating the activities of both departments. If necessary, cross-organizational projects and task forces are established in the Center to solve company-wide issues.
Additionally, since October 2024, we have established the 'DX Implementation Committee,' chaired by the President and Chief Executive Officer, to strategically and efficiently execute 'DX' within our group. For each important DX theme, we have selected committee members from general managers of headquarters and business units, and presidents of group companies to monitor the progress of the DX themes and confirm the effects of business transformation and improvements in the DX themes. In addition to regular committee meetings, we will hold ad-hoc committee meetings as needed for urgent matters to ensure the alignment of DX policies and themes in our entire group.

We have set the following defined purposes to realize Kureha's DX Vision.

In accordance with the above three purposes, we have set the following seven key DX sub-themes in the DX themes of corporation, infrastructure, and headquarters and business units.

(1) Corporate Theme

(2) DX Infrastructure Theme

(3) Headquarters and Business Division Theme

The Company's core systems (financial accounting, management accounting, sales management, inventory and purchase management, production management, etc.) had been optimized for each site. The core systems of domestic and Asian Group companies were integrated on the occasion of the introduction of SAP S/4HANA (as of May 2024). At the same time, simple and standardized business processes were developed and deployed to each company. This has led to standardization of data, more efficient and faster collection of consolidated management information, and enhanced management across the group.

Business intelligence tools are distributed to each department to support the making of decisions based on data. This has allowed visualization and analysis of data in daily operations to permeate throughout the company. About 70 business applications are in operation in the areas of procurement, production, distribution, sales, and after-sales service, and the number of users is now over 600. They are now indispensable tools for business operations, and have improved operational efficiency and quality.

Iwaki Factory has a number of chemical plants that manufacture our main products. With the introduction of an integrated system to manage operation information, plant operation data that until now could only be checked on-site can now be used in many departments. With this system, it has been possible to speed up the troubleshooting and equipment adjustments due to analysis of operating conditions. Also, the introduction of a system to manage operation has enabled reliable transmission of work instructions and reports, leading to a reduction of about 2,500 hours of work time over about one year since the system was introduced. In the future, we will further strengthen our analysis and improve our quality competitiveness.

The company is promoting digitalization in all areas of marketing, including web advertising, web page improvement, marketing automation, and the introduction of sales force automation to improve the quality and efficiency of sales promotion activities in the sales division. For particular products, the number of inquiries increased tenfold after we put advertising on the Web and other significant effects were observed. In addition, the reporting and confirmation of customer contact information has been firmly established, management within the sales department has been strengthened and streamlined, supporting daily sales activities.

We see generative AI (ChatGPT) as a tool that can be applied to a wide range of internal operations and expect it to greatly improve them. We introduced a generative AI system that can be used by all employees, and began using it in December 2023. We are establishing guidelines for use of the system and are promoting its use through internal announcements. Currently, about 60% of employees are using the system in their work, and it is bringing about improvements in such areas as market research, preparation of reports and minutes, translation, and the creation of software programs.