Sumitomo Chemical launches digital transformation management structure powered by AI

Tokyo, Japan – Sumitomo Chemical has launched a new digital transformation (DX) management structure. The Company will reform its organization and systems for DX strategy planning and execution and accelerate initiatives under the new policy of DX NEXT empowered by AI set out in its Corporate Business Plan for fiscal 2025 to 2027.

In the previous Corporate Business Plan period, from fiscal 2022 to fiscal 2024, Sumitomo Chemical formulated the DX Strategy 1.0 to 3.0. Specifically, the Company worked on digital human resource development by providing training for approximately 1,700 employees, which account for more than 20% of its entire workforce. It also stepped up efforts to leverage digital technology and utilize data to significantly improve productivity, enhance the competitiveness of its existing businesses, and develop new businesses. In the current Three-Year Corporate Business Plan, which started in April of this year, under the slogan “DX NEXT empowered by AI,” the Company plans to take its DX initiatives to the next level by utilizing AI as a new foundation for transformation.

In this fiscal year, Sumitomo Chemical will restructure its DX- and IT-related organizations, launch a new executive meeting for senior management to provide increased support for DX strategy planning and execution, and introduce a mechanism to promote workplace initiatives led by middle management. These efforts are aimed at developing a system to cross-functionally solve issues concerning manufacturing, sales, research and development, administration, and other operations.

Key points of the new DX management structure:

Organizational structure to accelerate DX strategy planning and execution
The Digital & Data Science Innovation Dept. and IT Innovation Dept. will be merged to form the DX Acceleration Office (DxAO), which will centrally drive the company-wide offensive and the defensive DX and IT initiatives. In addition, the Company will establish a new DX Executive Meeting in which senior management will solve issues from a company-wide perspective and provide increased support for the review of DX strategies. It will be structured to cross-functionally solve issues.

Strengthening the execution power of middle management
Leveraging its evaluation (goal setting) system, the Company will work to enhance management’s awareness of and commitment to DX, and promote transformation initiatives across the entire workplace and all of its teams.