Insights and Strategies from Toyota Boshoku's Digital Transformation Initiatives
Transforming Advanced Technology into Business Value Through DX
Toyota Boshoku Corporation, headquartered in Kariya City, Japan, is a global leader in the supply of automotive interior systems, providing components such as seats, trim, and powertrain components to major automakers. To help it achieve its goal of driving innovation and operational excellence, it is spearheading a series of comprehensive digital transformation (DX) initiatives. These projects, along with the company’s internal "DX EXPO" in March 2024, were designed to help foster a culture that not only embraces digital technologies but also transforms these technologies into tangible business value.
The company's efforts are being led by two key figures. The first is Mr. Yutaka Yoshida, the Department General Manager of the DX Platform Promotion Department at Toyota Boshoku, and the second is Mr. Eiji Yoshida, Head of Global Technology Strategy at NTT DATA Group, who, since joining NTT DATA, has been a leader in research and development activities both domestically and internationally. Together, they are driving the co-creation of innovative solutions that convert advanced technology into practical business solutions.
Since joining the company, Mr. Yutaka Yoshida (hereafter referred to as Mr. Yutaka) has played a crucial role in the development of administrative and production systems, particularly after the merger of three companies in 2004 that expanded Toyota Boshoku’s global footprint. His leadership in promoting DX across various departments is guided by a simple, yet powerful, motto: "Don't think about what is possible or not; think only about how it can be done."
Reflecting on the challenges faced in the early stages of DX implementation, Mr. Yutaka noted, "It wasn't easy to engage all departments at first. While my team was eager to digitalize work processes, others assumed the DX team would handle everything, leading to an overemphasis on the digital aspect without considering the necessary workplace transformations."
This insight led to a shift in strategy, focusing on identifying the specific transformations needed within each department and then leveraging digital tools to achieve them. The positive response to the "DX EXPO" is a testament to the effectiveness of this approach, with more departments now actively proposing digital solutions to enhance their work.
Co-Creation with NTT DATA: Transforming Technology into Business Value
The journey of DX at Toyota Boshoku has been strengthened and accelerated by its strategic partnership with NTT DATA. Mr. Eiji Yoshida (hereafter referred to as Mr. Eiji) has emphasized the importance of transforming advanced technology into business value—a principle that has been central to the collaboration between the two companies.
"Having advanced technology alone is meaningless unless it can be transformed into business value. Our co-creation activities with Toyota Boshoku have been highly valuable in this regard," says Mr. Eiji, explaining how addressing customer challenges allows technology experts to innovate and apply their expertise to real-life problems.
This partnership between NTT DATA and Toyota Boshoku has led to several innovative projects, including the introduction of AI-driven solutions in quality control processes and the development of a "Digital Human Manager" to enhance internal communication—a necessity made more urgent by the COVID-19 pandemic.
The digital manager, a system combining generative AI with avatar technology, allows employees to interact with their supervisors digitally, facilitating continuous communication even in the absence of face-to-face meetings.
"Improving internal communication was a significant challenge," recalls Mr. Yutaka. "The Digital Human Manager initiative has received significant attention, both internally and externally, for its innovative approach to bridging communication gaps."
At the "DX EXPO," NTT DATA Group and NTT DATA Tokai showcased a demo that used AI in Failure Mode and Effects Analysis (FMEA). This system automatically reviews documents prepared by staff, identifying errors and inconsistencies to prevent mistakes. Given the need to standardize data across various phases of production—a challenge due to part numbers changing frequently from prototyping to completion—the company plans to standardize data by 2030. This target that underscores its commitment to long-term digital transformation.
Leveraging Global Expertise for Competitive Advantage
As Toyota Boshoku continues its DX journey, it has recognized the need to stay ahead of global trends, particularly in areas like AI and digital twins. The company is keenly aware of the advancements being made in production sites across Europe and the necessity of catching up—and even surpassing—these innovations.
Mr. Yutaka highlights a key challenge: "Skill transfer is critical as experienced engineers retire. We need to pass on their knowledge to the younger generation, and AI could play a significant role in this process by creating manuals from spoken words, thus preserving valuable expertise."
NTT DATA's global presence and expertise in AI and digital transformation have been instrumental in addressing these challenges. "Leveraging our global insights and industry expertise, we can introduce advanced practices from overseas, tailored to Toyota Boshoku's unique needs," says Mr. Eiji. This collaboration enhances Toyota Boshoku's international competitiveness, while also positioning the company's DX model for global scaling.
Strengthening the Foundation for DX Through Education and Collaboration
A critical factor in the success of Toyota Boshoku's DX initiatives has been the collaborative effort between the DX Promotion Office, on-the-ground employees, and NTT DATA. "By working as one team, we have identified challenges, brainstormed ideas, and found solutions together," explains Mr. Yutaka. This collective approach has led to significant achievements and insights, which are now being used to further strengthen the company's DX foundation.
Education also plays a crucial role in this ongoing transformation. The company has shifted from broad awareness activities to more targeted training, ensuring that each department has at least one employee with high IT literacy.
"We are still in the trial-and-error stage, but we are committed to raising the IT literacy of our employees," Mr. Yutaka notes. "It's very important not just to learn theoretically but to actually touch and feel the experience," he continues. "Witnessing the growth of participants and their increasing sense of responsibility has been truly inspiring."
Currently, Toyota Boshoku is implementing an initiative called "DXLab" within the company. This program invites volunteers from various departments to explore and develop DX pathways based on specific themes. Initially, the focus was on a single theme, but over time, participants began addressing their real-world challenges and determining solutions through DX.
The Rewards of Promoting DX
Despite the challenges Toyota Boshoku has faced in its DX journey, Mr. Yutaka finds great satisfaction in leading Toyota Boshoku’s digital transformation efforts. "Promoting DX is a job where you get to hear 'thank you'," he says. The initial resistance from employees often gives way to appreciation as they realize the benefits of digitalization, making their work faster and easier. This positive feedback reinforces the value of the DX initiatives and motivates the team to continue pushing the boundaries of what is possible.
As the company moves forward with its DX initiatives, Toyota Boshoku remains committed to its vision of transforming advanced technologies into business value. With the support of NTT DATA and the collective effort of its employees, Toyota Boshoku has the skills, expertise, and experience needed to make its DX initiatives a success, setting new benchmarks in its industry.
Yutaka Yoshida
Department General Manager of DX Platform Promotion Department at Toyota Boshoku Corporation
Since joining Toyota Boshoku Corporation, Mr. Yutaka Yoshida has been engaged in overseeing the company’s IT operations. He has experience planning and developing administrative systems, as well as production systems, both domestically and internationally. After 2012, he spent two years gaining practical experience in the company’s production department before returning to the IT department. Since 2021, he has been leading internal DX activities.
Eiji Yoshida
Head of Global Technology Strategy, Research and Development Headquarters, NTT DATA Group Corporation
Mr. Eiji Yoshida has been involved in a wide range of R&D activities, including software engineering. In 2017, he was appointed as a visiting researcher at the MIT Media Lab in the United States, where he directed its collaborations with universities and startups. Currently, he leads the global R&D strategy, IOWN initiatives, and innovation for the entire NTT DATA Group.