Radically Transforming Business Models Through Digital Technology
On May 27, NYK was selected as a 2024 “Digital Transformation Stock,” or “DX Stock” for short, by Japan’s Ministry of Economy, Trade and Industry, the Tokyo Stock Exchange, and Japan’s Information-Technology Promotion Agency. This is the sixth time NYK has been recognized by these organizations, subsequent to its selection in the following categories: 2016 Competitive IT Strategy Companies, 2017 Competitive IT Strategy Companies, DX Stocks 2021, Noteworthy DX Companies 2022, and DX Stocks 2023/DX Grand Prix 2023.
Twenty-five companies were selected for the DX Stocks 2024 category, which includes companies using digital technology to fundamentally transform their business models for new growth and enhanced competitiveness. NYK has been working on business transformation through digital technology, such as developing 3D models and drawings to simplify the ship design and approval process in shipbuilding, adopting the SIMS3 (ship information management system ) to transmit operational IoT data from ships to shore every minute, and implementing the Starlink satellite communication service for exchanging and utilizing data on ships and land.
In March 2023, NYK released its medium-term management plan "Sail Green, Drive Transformations 2026 — A Passion for Planetary Wellbeing."
This medium-term business plan comprises two core business strategies, AX (ambidextrous management) and BX (business transformation), to deepen core businesses and develop new businesses, and three support strategies to realize and develop the core strategies: CX (human resource, organization, and Group-management transformation), DX (digital transformation), and EX (energy transformation). DX plays an important role as an enabler of the other four transformations. NYK will continue to leverage the power of digital technology to promote the Group's medium-term management plan and achieve the Group's mission of "Bringing value to life."
Back row, sixth from the right, Nobuhiro Kashima, Senior Managing Executive Officer
A sample of NYK Group DX initiatives evaluated during the DX Stock screening
- Introduction of front-loading* digital ship design concept
- Advanced digitalization of vessels in operation to realize cyber-physical systems**
- IBIS (Innovative Bunker & Idle time Saving) Project and further improvements in fuel efficiency
- Advanced maritime business data lakes
- Promoting the commercialization of ship design, operation, and management
- Utilization of generative AI
- Creating an organization, human resources, and corporate culture to realize DX
A sample of NYK’s DX Stock screening evaluation
| Corporate Value Contribution | Digital technology was being used as an enabler for all businesses in the ABCDE-X medium-term management plan strategy in 2023. Detailed KPIs and KGIs have been set, and DX is being promoted in all directions. In terms of new businesses, the platform business and the application of model-based design (MBD) in shipbuilding design are highly novel. KPIs are comprehensive and evaluated as fact-based, and KGI returns are clearly described based on their contribution to ROIC. |
| DX Realization Capability | NYK has made comprehensive efforts to promote DX in data utilization, organizational buildup, and human resource development. In human resource development, NYK provides DX training to its human resources through DX caravans (problem discovery), digital “terakoyas” (cram schools), and data labs (accompanying self-development). |
| Disclosure to Stakeholders | NYK discloses information on DX promotion initiatives through a wide range of media. |
| Comprehensive Evaluation | All businesses under the current ABCDE-X medium-term management plan strategy utilize digital technology as an enabler, and DX is being promoted in all directions. DX enables the company to develop highly novel business models, such as the platform business and the application of model-based design (MBD) in shipbuilding design, and the earnings contribution is clearly positioned on an ROIC basis. NYK uses the digital technology for all business promotions, and DX initiatives have already taken root throughout the company. The achievements by the end of the previous fiscal year and the results of this fiscal year are clearly shown in many medium-term initiatives. |
* Front-loading
Conducting detailed simulations and planning in the early stages
** Cyber-physical systems
A system that links the physical world and the cyber world by implementing the study and design of events in the cyber world subject to time and cost constraints in the physical world.
NYK’s Medium-Term Management Plan "Sail Green, Drive Transformations 2026 — A Passion for Planetary Wellbeing"
More Information
The news on this website is as of the date announced and may change without notice.