Sumitomo Chemical brochure – April 2019

Sumitomo Chemical: Digital transformation in chemical manufacturing

02

Sumitomo Chemical:

INNOVATION AND DIGITAL TRANSFORMATION IN CHEMICAL MANUFACTURING WRIT TEN BY

DA LE BENTON PRODUCED BY

K RIS TOFER PA LMER

03

w w w.sumi to mo - c hem . co. j p

Takashi Shigemori, Senior Managing Executive Officer of IT Innovation, explores Sumitomo Chemical’s digital transformation

T

he Sumitomo Chemical Group was established in Japan in 1913 as a manufacturer of fertilisers to eliminate pollution

from copper smelting facilities and help increase crop yields. Fast forward to 2019, and the Group includes more than 100 subsidiaries and affiliates that operate in five key sectors: petrochemicals; 04

energy and functional materials; IT-related chemicals; health and crop sciences; and pharmaceuticals. Masakazu Tokura, Chairman of the Board, strives to continue to “contribute to solving problems facing the global community” through technological prowess and the trust of Sumitomo’s stakeholders.

In order to remain relevant in the increasingly digital world, Sumitomo Chemical has had to digitally transform its operations, renaming its own IT Department to IT Innovation Department in 2016 to redefine its responsibilities. One of the main aims of this rebranded department is to promote digital transformation across the entire organisation through a number of proof-of-concept (POC) projects. Overseeing the department is Takashi Shigemori, Senior Managing Executive Officer for

05

w w w.sumi to mo - c hem . co. j p

06

Finance, IT Innovation, Corporate

everybody’s imagination and is

Business Development and Corporate

impacting all fields of our business,

Planning. Having worked for Sumitomo

including R&D, production, supply

Chemicals for more than 30 years,

chain, corporate administration and

Shigemori has extensive experience in

management,” he says. “Digitalisation

corporate and business planning,

allows analysis of a large sum of data,

working mostly on projects across

and so the quality of the analysis

finance, supply chain and marketing

depends on the quality and quantity of

divisions. He candidly admits that he

data, the scope of the data and the

does not profess to have a wealth of

methods in place. It qualifies the quality

experience in the technology space

of our decision making.” Despite the

but recognises the disruptive affect

recognition of the significance of data,

technology has had on the company

and in turn, digitalisation, as a project

and its customer base. “I feel that

manager Shigemori values human

technology is advancing beyond

engagement more than ever and notes

“ Digitalisation allows analysis of data… it qualifies the quality of our decisionmaking” — Takashi Shigemori Managing Executive Officer IT Innovation Dept, Sumitomo Chemical

that, while it does help identify key

training engineers and scientists with

areas of business growth, the ‘hunch’

skills in new technologies such as

and ‘insight’ based on the real business

artificial intelligence (AI) and material

activities are still needed to turn data

informatics (MI). “Our approach is

into true value.

somewhat different from others,” says

In 2019, moving from the stage of

Shigemori. “We believe that the digital

PoC to that of corporate-wide deploy-

transformation will be most efficiently

ment of the digital transformation, the

and effectively implemented by

company will establish a new depart-

researchers, engineers, marketing and

ment focused on big data utilisation as

finance staff know the real business

a means of increasing the company’s

needs and constraints and are

competitiveness in its core activities

equipped with essential AI knowledge.

such as R&D and manufacturing. This

Until a sufficient number of data

new department will take the lead on

engineers are developed and until

future digital transformation projects,

sufficient momentum is created, the

E XE CU T I VE P RO FI LE

Takashi Shigemori With a Bachelor’s degree in Liberal Arts from the University of Tokyo, Mr. Shigemori joined Sumitomo Chemical Co., Ltd. in 1983. His career centres on planning, project coordination, marketing and supply chain. He has worked in the Corporate Planning Office and Petrochemicals’ Planning & Coordination Office. Shigemori has also worked in overseas affiliates including The Polyolefin Company (Singapore) Pte. Ltd., Sumitomo Chemical Asia Pte. Ltd. (Singapore) and Rabigh Refining and Petrochemical Co. ­— Petro Rabigh (Saudi Arabia). He is currently Managing Executive Officer of Sumitomo Chemical and is a Board Member of Petro Rabigh. w w w.sumi to mo - c hem . co. j p

07

two departments will play key roles to

In Japan, once momentum is created,

promote the digital transformation

the entire company will adapt and

programmes.”

move faster.” The key to creating and

Sumitomo Chemical launched its

maintaining this momentum lies in

first digital transformation programmes

communication and collaboration.

back in 2015. Shigemori is keen to

Shigemori is not the only person with

stress that although these did not

limited experience in the technologies

come early in the global digital

disrupting the business, and so the IT

conversation, in Japan they represent-

Innovation Department must be able to

ed the first initiatives in the industry. “It

break down and verbalise the true

is important that we change the

value of what technology can bring and

mindset of all members of the compa-

how each facet of the business can

ny and change its culture in order to

utilise it. “We are an enabler for

have a true impact,” he says. “We

business functions,” he says. “It’s a

believe that this is the fastest approach

huge risk to not realise the true impact

to materialising digital transformation.

of technology. The technical function w w w.sumi to mo - c hem . co. j p

“ In Japan, once momentum is created, the entire company will adapt and move faster” — Takashi Shigemori Managing Executive Officer IT Innovation Dept, Sumitomo Chemical

11 must assist and sometimes guide the

a limited talent pool and change

business with advanced digital

management. Data scientists are in

solutions, based on their contacts with

short supply across Japan and this will

the IT service providers and observa-

be a key role in the upcoming years. He

tion of the competitors’ moves. For this

points to the significance of learning

purpose and mission, close collabora-

for both the IT and business profes-

tion with the business and a deep

sional, and feels that the company’s

understanding of their practices and

global footprint will prove to be key in

needs are indispensable.”

overcoming this challenge. “Our staff

A digital transformation of any

outside of Japan, the ones who have

business is a challenge, particularly

expertise in certain areas will be

one like Sumitomo Chemical with its

required to take charge,” he says.

subsidiaries and affiliates around the

“But we also need to supplement our

world. Shigemori recognises that the

knowledge and skills by getting input

key challenges for the business will be

and help from our business partners w w w.sumi to mo - c hem . co. j p

who have global coverage. As a business we have over a hundred group companies around the world.”

Sumitomo Chemical Group has struck a number of key strategic partnerships with technology vendors to deliver solutions and training to its employees. One of the company’s long-time partners is Accenture.

“Accenture is a strategic partner and is familiar with our business practices, key elements of the business, corporate culture, management system and 12

style,” says Shigemori. “They are able to make propositions that are to the point

“ It’s a huge risk for the business functions to not realise the true impact of technology” — Takashi Shigemori Managing Executive Officer IT Innovation Dept, Sumitomo Chemical

$19bn+ Approximate revenue

1913

Year founded

31,837

Approximate number of employees

13

and that work. Their guidance has

a chemical manufacturer, we play a

been essential for our journey to date.”

key role in fostering a new sustainable

Sumitomo was founded on the princ-

society. So, we need to continue to

iple of finding solutions to solving the

recognise and prepare for the advent

problems facing the global community.

of a new era where digitalisation

As that global community continues

technologies present both opportuni-

to evolve, so do the problems. “We will

ties and threats.”

need to contribute to society by providing solutions that has been developed based on our technologies,” says Shigemori. “As

w w w.sumi to mo - c hem . co. j p

Sumitomo Chemical Tokyo Sumitomo Twin Building 27-1, Shinkawa 2-chome Chuo Ku, Tokyo, Japan T +81 3 5543 5500 www.sumitomo-chem.co.jp