Digital Transformation (DX)
We will strengthen our business foundations through internal DX and create added value for our customers by digitizing our products.
Tadayoshi Ito
Managing Executive Officer
azbil Group Digital Transformation Promotion
As the roles and opportunities offered by automation expand, we will improve the value we provide by fostering the “creation of new business and new ways of working” through DX
In promoting DX, the azbil Group recognizes that changes in the natural environment, the business environment, and evolving technology, and new requirements of society are expanding the role and opportunities for automation driven by digitalization. Consequently, we are endeavoring to contribute to solving social issues in business activities and further enhancing the value we provide by creating new businesses and new ways of working through digitalization. We are implementing internal DX, which will greatly increase productivity in our business activities and lead to transformation that will create new ways of working for us. In addition, we are advancing product DX to promote sustainability in our customers’ manufacturing and building operations, thereby creating new added value.
We promote internal DX in sales and engineering divisions, development departments, and production bases, resulting in greater achievements
In our internal DX, under the “creation of new business and new ways of working” initiative, we are using generative AI in the sales and engineering divisions in activities ranging from pre-ordering tasks to manufacturing and inspection, and we are introducing a skill transfer support system enabling veteran employees to share their knowledge. In our development departments, we are working to raise the efficiency of various tasks from design to development through DX initiatives. This includes using generative AI to create and review program source code, as well as applying machine learning models to data obtained from on-site monitoring and control systems. At our production facilities, we are implementing advanced cloud-based manufacturing execution systems (MES). These cloud services facilitate DX initiatives at production sites, such as system introduction training done remotely, improved inventory control accuracy, and real-time visualization of production progress. To accelerate internal DX, we have set up a dedicated generative AI support tool exclusive to the azbil Group, accessible to all group companies. This tool is already being utilized by more than 7,000 employees. In addition, by promoting the adoption of low-code tools, we have built a development community of 300 members and developed 900-plus applications, more than doubling our size compared to the previous year.
Along with product DX, we are setting up and developing a specialized organization dedicated to ensuring security
When it comes to product DX, we are deploying on-site services centered on cloud technology. Deliveries of our control valve maintenance support system, the valve diagnosis and analysis service that stabilizes production equipment and enhances their safety, grew by approximately 150%, from 111 business sites in FY2020 to 168 in FY2023. Furthermore, deliveries of our online anomaly detection system, which uses AI to support stable equipment operation at customers’ sites, prevent operational errors, prevent quality defects, and establish manufacturing conditions, more than doubled from 46 business locations in FY2020 to 106 in FY2023. These achievements serve as case studies of how we use DX and the azbil Group’s expertise to deliver value to our customers. Furthermore, our in-house specialized security organization, the Cyber Security Office, is engaged in comprehensive initiatives that cover everything from in-house systems to products and services to ensure security, which is essential for promoting our DX efforts.
Lastly, I believe that our DX promotion is not solely an internal effort but rather a collaborative initiative with our customers. The virtuous cycle of mutual influence generated by advancing DX together will lead to even greater value creation.
DX case studies of the azbil Group
The azbil Group views internal DX and product DX as the two integral components of DX promotion, and we are addressing
them together.
The following are case studies covering up to FY2023. For product DX, we introduce our cloud-based services for large
buildings run by the Building Automation business, and for internal DX, we explain how all our employees are using generative
AI as a foundational tool to drive DX initiatives.
Building management evolving thanks to cloud services: Increasing convenience in energy and facility management
Katsuji Ebihara
Building Systems Company
Marketing Headquarters
Product Marketing Department
Azbil Corporation provides energy management, building facility management, and tenant services under the umbrella of “cloud-based services for large buildings (EM/BM/TS).” This represents a shift from a model where we installed dedicated equipment inside buildings as an optional feature for a building automation system to a model that leverages cloud computing connected to the building automation system. Using the cloud allows us to manage and analyze the vast amounts of energy data and facility management information involved in energy and building facility management tasks. This management can be performed from any location, not just within the building. Furthermore, office users can use their work PCs or tablets to adjust the air-conditioning and lighting through Internet, enhancing user-friendliness.
Much like the trend in information systems transitioning from “owning” to “using,” the introduction of cloud services in building management allows customers to flexibly modify the services they use post-installation to match the building’s operations while keeping initial costs low.
This service has already been released, and we have signed contracts for about 500 applications. We will utilize the advantages of cloud-based service provision to expand our service offerings and enhance features, delivering even greater value to our customers.
DX promotion and company-wide business innovation using generative AI
Yukiyoshi Sato
Generative AI Promotion Task Force
In FY2023, Azbil Corporation established a cross-departmental task force that has been actively pushing DX using generative AI. This task force is implementing various initiatives, including creating usage guidelines for employees, releasing a dedicated in-house generative AI chatbot, and conducting training for all employees. Through these efforts, the usage of generative AI within Azbil Corporation has steadily increased, and more than 60% of employees are now involved in business innovation that uses generative AI.
In the engineering division, veteran and newer employees collaboratively developed a generative AI-based business innovation template and are actively striving to share knowledge and improve their skills. This innovative initiative is also being expanded to the sales and service divisions, and the use of generative AI is spreading throughout the entire company. Furthermore, we are progressing with the demonstrative development of generative AI for business innovation. One notable example is a generative AI tool for hazard prediction, which is being utilized to support risk assessments and to ensure safety based on past work reports.
The task force is striving to create an environment where employees can comfortably use generative AI. To achieve this, they share information and hold webinars on a specially established site and organize exchange programs for employees. The task force also intends to actively promote the further use of AI technology in the future. By fostering and embedding a culture of generative AI use among employees, Azbil Corporation aims to pursue even greater growth and innovation.