Sustainability | Sustainability Management | TDK Group's MaterialityDigital transformation (DX): Promotion of the digitalization of society by adding software technology to material science and process technology

Background to Identification as Materiality

Significance for TDK

We believe that the promotion of digital transformation (DX), which means accelerating the digitalization of society by adding software technology to material science and process technology, such as 5G, AR/VR/MR, wearable devices, robotics, drones and data storage, is a field in which TDK can fully display its value in society.
Furthermore, for TDK itself, DX initiatives and the optimum utilization of a digital foundation will lead to the sustained creation of maximum output (timely supply of products in the volumes required by customers) using minimum input (materials, energy, and other management resources).
If we could quickly and accurately grasp the potential needs of customers, we have an adequate grounding to respond in a timely manner. If we could monitor the operating conditions of production lines and individual equipment in real time, we could detect changes in the situation quickly and carry out maintenance beforehand, thus guaranteeing production as planned (= predictive maintenance). And in the case of changes in market or customer demands, or the disruption of delivery from a supplier, if we could identify the disruptive factor quickly and visualize changes in conditions, speedy and optimum decision making would be possible, and we could take action swiftly.
By establishing robust business foundations fully utilizing digital power in this way, it would be possible for the whole value chain to collaborate and function in a speedy, timely, and autonomous manner, which in turn would lead to the sustained growth and enhanced corporate value of TDK.

Significance for Society

For the TDK Group, which advocates “Technology for the well-being of all people” as its long-term vision, DX promoting the digitalization of society is a crucial factor. Through the development, manufacturing and supply of products and solutions, we believe that TDK can contribute to the building of resilient communication network infrastructure and the promotion of society’s digitalization. Promoting the digitalization of society will lead to the realization of new flexible workstyles and the alleviation of labor force shortages.
Furthermore, by linking the TDK Group’s digital foundation with customers and suppliers, it will be possible for us to visualize and optimize operations, minimize various losses, and result in the realization of business activities that take social issues, including human rights, and the global environment into consideration.

Overview (Themes, responsible department, goals, KPIs, and progress)

Themes Responsible department Goals in 3 years Action items KPIs Medium-term target*
(Fiscal 2022-2024)
Progress of Fiscal 2022
Provide products and solutions to help build resilient communication network infrastructure Corporate Marketing & Incubation HQ Technological targets for network infrastructure supporting a ubiquitous society are defined and necessary technologies such as 5G mmW, 6G, HAPS (high-altitude platform stations), LEO (low earth orbit) satellites, submarine cables are positioned in TDK development roadmap. Study next generation communication market (B5G) and potential application such as Society 5.0, UX of such applications to find new business opportunity for TDK Research and publish an internal marketing the respected area 1 report / year We researched technology and market trend of AR/VR application. Findings were published as an internal report and been shared among TDK stake holders.
Find potential opportunity to support resilient communication network infrastructure and incubate new business, product or solution in TDK By the end of 2023 New product development for AR/VR project were engaged. We'll continue to support AR/VR and expand investigation to other areas in 2022.
Provide products and solutions for supporting robotics and mobility to promote the enhancement and complementation of human capabilities Corporate Marketing & Incubation HQ Gap between the demand of society and TDK products relating to the application of robotics, mobility, and humanoid robotics are clearly identified and a roadmap to plug that gap is established. Study next generation of Robotics market including autonomous driving to find new business opportunity for TDK Research and publish an internal marketing the respected area 1 report / year We researched technology and market trend of on board high performance computing and robot. Findings were published as an internal report and been shared among TDK stake holders.
Find potential opportunity to provide products and solution for robotics and mobility and incubate new business, product or solution in TDK By the end of 2023 We engaged in potential new business incubation projects, we will continue support in 2022.
Promote digitalization at TDK SCM & Management System HQ By fully utilizing digital power, the speed and quality of operations are dramatically improved, accelerating operational excellence and supporting the realization of 2CX.
  • Visualize supply chain information to speed up decision making and streamline business processes
Efforts to strengthen the integrated business management process from procurement to delivery, and the seamless infrastructure to visualize supply-chain conditions underpinning that process, so as to improve 2CX and accelerate the practice of ESG/SDGs Realize in pilot product businesses during fiscal 2024 As a first step, implemented work reforms relating to transactions between Group companies
  • Promote the combined utilization of data analysis platforms and collaboration platforms, and strengthen human resource development for their realization, etc.
Speedup of work by introducing a globally common IT platform and strengthening of the training of human resources to use it
  • Complete deployment of a global collaboration platform
  • Foster data analysis human resources
  • Completed deployment of a global collaboration platform to main companies
  • Introduced a training program for the fostering of data analysis human resources

*The targets run from fiscal 2022 through 2024 (ending March 31, 2024).

Department Head Messages

Corporate Marketing & Incubation HQ

Michael Pocsatko

【Responsible Themes】

  • Provide products and solutions to help build resilient communication network infrastructure
  • Provide products and solutions for supporting robotics and mobility to promote the enhancement and complementation of human capabilities

The Corporate Marketing & Incubation HQ plays the role of TDK’s antenna, catching customer needs and disseminating TDK’s technologies. Our mission is to transform data into information and intelligence and, based on that intelligence, create and incubate new products and solutions that do not exist in TDK’s portfolio. Our Goal is to accelerate “Value Creation” by building bridges - communicating and collaborating across innovators both inside and outside the company. This is creating a strong “Outside-In” perspective, a more customer-oriented approach and language.
While going beyond our organization and collaborating with all kinds of divisions both inside and outside TDK, we aim to combine TDK’s technologies and create new value. In pursuing this, a new CDXO (Chief Digital Transformation Officer) function has been established with tasks regarding "Digitalization": they are 1) Digital for Customers: Agile Creation & Identification of New Values for Customers. Specific to Digital Marketing: “Customer Experience Driven Growth with Market Data, Content & Analytics”; 2) Digital for TDK Group: Agile Adoption of Global Best-Practices within TDK Group to Promote New Work Styles; 3) Digital for Ecosystem: Aggressive Networking & Co-creation Through External Collaboration.
TDK’s EX and DX initiatives are an important activity responding to the demands of society. Essentially the technologies developed by TDK are marvelous things that can contribute to the well-being of people. At the same time, these priority fields are at the core of TDK’s long-term strategy and a vital factor in promoting our business plan Value Creation.
Going forward, we must create more customer-centered innovations, entrench the outside-in way of thinking in our organization, and realize 2CX (customer experience and consumer experience), which means providing experiences that go way beyond the expectations of customers.

SCM & Management System HQ

Masato Ishikawa

【Responsible Theme】

  • Promote TDK’s digitalization

To continue contributing to the solution of social issues through the creation of valuable products, we must always focus on time to market. For this reason, the acceleration of digitalization (DX) is essential. By realizing DX, we will be able to speed up all our activities, from design, development, manufacture, work processes and decision making, and enhance quality.
As well as the introduction of optimum digital technologies in accordance with themes and challenges, another issue in the realization of DX is strengthening the development and securing of human resources with the skills to promote it. In cooperation with relevant divisions, we are improving educational programs so that all employees can reach a certain level of digital literacy.
In addition, there is a wide variety of digitalization and DX initiatives taking place in the TDK Group, and many of them already are being implemented as best practices. I hope to fully utilize the new communication platform that is being revamped globally so as to share such examples and efficiently spread them across the Group.
Together with relevant functions, we intend to tackle the strengthening of our digital foundation to support the TDK Group’s value creation cycle.

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