Message from the Top Management
The modern era is often described as an era of VUCA in which the future is difficult to predict. In this business environment, we recognize that DX (Digital Transformation) is indispensable for our Group to maintain and enhance its competitiveness and to achieve sustainable growth.
As initiatives toward realizing DX, we will advance the development of DX foundations based on four themes: creation of new business models, creation of new customer value, transformation of existing processes, and improvement of internal operational efficiency. In parallel with these initiatives, we will also focus on strengthening information security to protect our important information assets.
In addition, with regard to AI technologies, which have been advancing remarkably in recent years, we are developing organizational systems aimed at further improving product quality and productivity, as well as reducing environmental impact.
Through DX, we aim to create new added value and achieve both enhancement of corporate value and contribution to society.
Yosuke Kawamoto
Representative Director, President & COO
1. Rengo Group's Fundamental Policy on Promotion of Digital Transformation
The Rengo Group has formulated the five-year Medium-Term Vision "Vision120" covering fiscal years 2025 to 2029. Within this vision, the establishment of DX foundations is positioned as one of the initiatives addressing materiality (key issues).
The advancing digitalization of society is enriching our lives and greatly changing consumption behavior. E-commerce (electronic commerce) became even more widespread during the COVID-19 pandemic. Rengo believes that packaging, which is essential for packing and delivering the goods ordered through e-commerce, will play ever increasingly important roles as social infrastructure that enriches lives through integration with digital technologies.
Amidst this rapid change in the business environment, the Rengo Group is undertaking DX by using digital technology in a variety of business processes including manufacturing, logistics, and sales, creating new business models, creating new customer value, achieving innovative operational efficiency, and taking other measures so that we can provide high value-added packaging tailored to diversifying needs.
To achieve this, we will build unique Cyber-Physical Systems (CPS) that achieve harmony between digital technologies (cyber) and the people that use them (physical) and foster a corporate culture that generates innovation based on CPS while using cutting-edge information and communications technologies such as 5G.
2. Rengo Group's DX Strategies
The Rengo Group is promoting DX based on the following topics.
| Themes | Specific Measures |
|---|---|
| Create new business models |
|
| Create new customer value |
|
| Reform existing processes |
|
| Improve internal operational efficiency |
|
[1] DX Strategy Implementation Structure
Establishment of DX Promotion Investigation Committee
In April 2020, Rengo established the DX Promotion Investigation Committee, which is chaired by the president & COO, to work on digitalizing business processes across the company while also cultivating and recruiting DX human resources. Furthermore, in August 2023, we established a new Digitalization Promotion Department within the Paperboard Production Group. This was part of building a structure to focus on issues such as utilizing digital technologies in the papermaking process and improving the efficiency of logistics operations.
Human Resource Recruiting and Hiring
By establishing work environments that enable a good work-life balance, establishing a telework system, and taking other measures, we are reforming work styles and making efforts to recruit and retain diverse human resources.
Development of Human Resources for Data Analysis
To make effective use of data analysis in product demand forecasting and production equipment failure prediction, we are recruiting participants from all business divisions and conducting data analysis human resource training. Through this training, we are developing human resources who can use data analysis tools that employ AI and can make objective decisions based on data analysis.
[2] Development of Environments for Promoting DX
Promotion of DEGI-PAKE
The Rengo Group is deploying DEGI-PAKE, digitally-printed packaging that has a beautiful appearance and high promotional effects. Going forward, we will actively invest in facilities and R&D so that we can expand our lineup of products that use digital technologies.
Securing DX-Related Budget
We secure budget for capital investment in each area of DX promotion in each fiscal year.
Construction of a Data Lake
We are building a data lake* in order to collect and analyze the various data that is generated internally including sensing data from production equipment. In the future, we will expand and enhance the data stored in the data lake and promote in-house data use.
*A data lake refers to storage that can retain various big data generated in business activities in the form of raw data.
3. DX Strategy Achievement Indicators
① Financial Indicators
We consider the achievement of our DX strategy to be equivalent to achieving the following key performance indicators set as FY2029 (FY3/2030) targets for the Group.
- Net sales: 1.2 trillion yen
- Ordinary income: 72 billion yen
- Return on equity (ROE): 8.5%
- Debt to equity ratio: 0.7 times
② Indicators relating to DX human resource development and recruiting
- Number of employees with registered information security specialist qualifications: 5
- Number of data analysis human resource training course participants: 20/year
Rengo Certified as DX Certified Business Operator
Rengo Co., Ltd. received certification as a DX certified business operator under the DX certification system operated by the Ministry of Economy, Trade and Industry. It is a program under which the Japanese government certifies business operators that are ready to reform their businesses using digital technology (DX-ready) pursuant to the Act on Facilitation of Information Processing.
4. Information security
As advances are made toward digitalization throughout society, information management is becoming increasingly important.
Having formulated information security policies, including the Fundamental Policy on Information Security, Rengo is implementing thorough risk management and building a robust security structure, centered around the Information Security Subcommittee, chaired by the executive in charge of the Information Systems Group.
We hold periodic online meetings with each company in the Rengo Group to share security-related information, request and provide guidance on improving security measures, and promote the strengthening of security throughout the Group.
Results of main information security measures
- Introduction of endpoint detection and response (EDR)*1 and establishment of the security operations center (SOC)*2
- Implementation of security education activities
- Creation of information asset inventory and asset ledger
- Assessment of security vulnerabilities
- *1A system that detects and notifies cyberattacks on endpoints such as personal computers
- *2An organization that monitors IT environments, and detects and responds to security incidents