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 Progress of Fiscal 2023
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. We conducted research on technology trends and the market in regard to AR/VR/MR and issued an internal report. We held webinars in-house and AR/VR experience sessions, and shared the importance of the metaverse and UX with the relevant parties within TDK.
We also conducted research on technology trends in 6G telecommunications technology and issued an internal report.
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. TDK has come up with technologies that can make a contribution to 6G telecommunications and begun development to verify its feasibility. Multiple other items are in progress.
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. We conducted research on technology trends and the market related to robotics, including autonomous driving, and issued an internal report.
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. We have begun a review of a sensor solutions business that include data analysis algorithms tht could be applied to autonomous driving and industrial robotics.
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 To improve efficiency in the value chain activity of our global base, make it possible to visualize at a single glance the status of everything from material purchasing to sales.
  • 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
 Realized by promoting citizen development contributions to business through expanding our global collaboration platform and data analytics platform use.

*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.
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.

Chief Digital Transformation Officer
Management System HQ

Roshan Thapliya

【Responsible Theme】

  • Promote TDK’s digitalization

TDK Group aims to drive its DX activities through coordinated deployment of Digitalization and Information Technology (IT) to enhance operational efficiency, safeguard information security/privacy and enrich value creation through Data-Driven insights. The purpose of the newly formed Management System HQ is to ensure coherent governance and provide tangible support to the entire TDK Group in IT and Digitalization to ensure success to our commitments to society through DX and EX.
With the combined effort of strategic implementation of emerging digital technologies and consolidation of our existing IT capabilities, as concrete steps forward, we have initiated companywide TDK DX Projects that will further enhance our capability to extract new opportunities and respond to related risks, putting emphasis on cybersecurity and data-privacy that is vital to our data fabric and data analytics requirements. Putting emphasis on growth, efficiency and future directions, the projects initially address “DX for Sales & Marketing” (focusing on New Opportunities), “DX for Operations” (focusing on Manufacturing Excellence)” and “DX for Sustainability +” (focusing on DX-Enabled Sustainability & Engagement), respectively.
The execution team of each project comprises from business companies (BCs) and Corporate HQs thereby ensuring an engaged yet diverse teamwork that further enriches organizational transformation through fluidic international participation, accentuating our uniqueness in people diversity and core competencies in sales, technology and manufacturing. We are committed to meeting our financial and nonfinancial goals putting emphasis on evolving social needs, customer expectations, related digital technologies and agile companywide deployment.