Promotion of DX
Basic Measures
In response to the changes in the business environment caused by COVID-19, we have taken decisive action on reforming our operations and business model. In the ICT field, we continue to improve productivity and reform our organization and processes by utilizing data and digital technology.
Date of Establishment: April 1, 2022
Masaya Hattori
President and CEO
DX Promotion in the 8th Mid-Term Management Plan
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Basic Management Policies Priority Measures Building Growth and Competitive Advantage
- ●Expansion of existing business areas (expand in-store market share, strengthen logistics business)
- ●Monetization of new businesses areas (promote information wholesaling and e-commerce businesses)
- ●Differentiation and establishment of competitive advantage (strengthen product development capabilities, implement category and digital marketing strategies, and build platforms)
- ●Business model reform
Create new business models to accommodate a shift to seamless integration (homemade, readymade, and dining out), implement strategies for growth of the fresh food business, expand food delivery, meal delivery, and nursing care businesses
Profit Structure Reform
- ●Promotion of DX (improvement of business processes by utilizing data, development of data infrastructure, HR training for data utilization, attainment of DX accreditation)
- ●Building optimal logistics (optimize overall logistics through efficient base development, promotion of labor and material saving, and mutual use of CVS logistics business and wholesale logistics)
- ●Management streamlining and cost reduction (strengthening of revenue and expenditure management, thorough control of expenses)
- ●More robust revenue base (establishment of new logistics system and investment in logistics-related facilities)
Management Foundational Reform
- ●Human resources and culture reform (build the strongest human resource base)
- ●Higher level of business management (strengthen governance, enhance front-line management, develop risk management system, improve compliance awareness and know-how)
- ●Promotion of SDGs initiatives (food loss prevention, CO2 reduction, food safety and sound practices, social contribution)
- ●Strengthen public relations and IR activities (promote public relations activities that contribute to the enhancement of corporate value)
IT Infrastructure Development, Initiatives, and Targets
In promoting DX, we will position the establishment of IT infrastructure as an investment to support our revenue base, and we will pursue the development of a solid IT infrastructure by rebuilding logistics infrastructure systems, developing information-related tools, and taking measures against IT security risks.
Additionally, we will accelerate and perpetuate the implementation of DX, which can be divided into offensive (provision of added value) and defensive (elimination of excess, waste, and inefficiency) measures. By promoting both IT infrastructure development and DX measures, we aim to generate an impact of 3 billion yen over the three years of the 8th Mid-Term Management Plan.
Promotion Structure
In April 2022, the DX Promotion Office was newly established.
The DX Promotion Office is responsible for coordinating DX measures at the company and acting as a “discerning eye” for systems to accelerate and perpetuate the promotion of DX.
In addition to system development, the office will also promote awareness of DX within the company and develop digitally proficient personnel for the purpose of improving employee knowledge.
