LSV 2030-Stage 2, the medium-term business plan that launched in April 2024, takes into account the successes and issues carried forward from the previous plan, LSV 2030-Stage 1. At the same time, we are developing detailed mea-sures in line with the three key initiatives of our long-term vision. Later sections explain the medium-term business plan in greater detail. Here, I would like to describe the DX initiatives that form the cornerstone of the entire plan. Markets do not grow at a steady pace; there are always fluctuations. Without a robust structure that is capable of securing profits no matter how severe the business environment, we will not be able to achieve sustainable growth as a company or contribute to a sustainable society. The LINTEC Group meets customers’ differing needs through high-mix, small-lot production. As market demand has become even more diverse and fast-changing in recent years, we have had to respond with an even greater variety of products. To ensure profitability, it is essential to increase facility utilization rates and reduce manufacturing costs by utilizing DX. DX is also important from the perspective of utilizing human resources effectively. This is especially true in Japan, where the birthrate is declining and the population is aging rapidly, as manufacturing personnel are also growing older. As labor shortages become more pronounced, the active promotion of women is emerging as an ever more important theme. DX that leads to more automation and labor savings on production lines should go a substantial way toward breaking down barriers related to age and gender. DX will also spur advances in inventory management. Artificial intelligence (AI) often goes beyond human under-standing in exploring complex relationships and finding hidden patterns among data. In the future, we will use AI to preprocess data and then bring in humans to make accurate final decisions or devise ways of using software that will lead to business improvement. People who can achieve such tasks are those who come to mind when I think of digitally savvy human resources. In other words, AI will not be limited to only professional programmers and engineers; it will also be available to those who use IT on a daily basis and can use AI as a business tool. These were the thoughts behind the Group’s October 2022 launch of LDX 2030, a Companywide DX promotion project for transforming a wide range of processes and laying the groundwork for the development of digitally savvy human resources. Six subcommittees, including those focused on DX for business process reengineering and the construction of next-generation infrastructure systems, have been orga-nized and are undertaking various measures in accordance with our road map. The project is currently halfway through all phases and is judged to be progressing well. The knowl-edge employees gain through this project is being immedi-ately reflected in their daily practices and on-site improvement activities, accelerating the communication of information and decision-making.14Value Creation StoryA Message from the PresidentDigital Transformation, the Key Component of Our Medium-Term Business Plan, LSV 2030-Stage 2
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