Sumitomo Chemical: Digital transformation in chemical manufacturing
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Sumitomo Chemical:
INNOVATION AND DIGITAL TRANSFORMATION IN CHEMICAL MANUFACTURING WRIT TEN BY
DA LE BENTON PRODUCED BY
K RIS TOFER PA LMER
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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
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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
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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
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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