Recognition of risks and opportunities associated with changes in the external environment

*1 “Breaking away from legacy corporate culture”

“The essence of DX is quick responses to environmental changes and actions to change not only the existing systems, but also corporate cultures (break away from legacy corporate cultures).”

Ministry of Economy, Trade and Industry DX Report 2 (Interim Report) December 28, 2020

https://www.meti.go.jp/press/2020/12/20201228004/20201228004-2.pdf

“K” Line DX strategy

Further advancing the digitalization of information and administrative processes as well as vessels, enhancing the core values of safety, environmental conservation and quality through the utilization of data and digital technology, and increasing the added value of our services to further strengthen competitiveness

Objectives to achieve through DX and specific initiatives

Deploy strategy from five perspectives that are important for promoting DX

Quickly and flexibly move up stages according to changes in customer and social issues

Image of DX promotion in each area

Foster capabilities to support DX strategies in line with the respective goals of DX ashore and DX at sea

Flexibly and quickly update DX strategy by monitoring changes in materialities*¹ and status of DX promotion

*1 What are materialities for the “K” LINE Group?
Materialities for the “K” LINE Group are positioned as important issues to be addressed in order to realize the corporate philosophy and vision under the medium-term management plan, achieve sustainable growth and enhance corporate value, while also contributing to solving social issues. In other words, those to achieve sustainability for the “K” LINE Group as well as society and the environment.

DX ashore

Acquire the ability to respond flexibly to customer demands and societal needs through information visualization and the development of an IT environment

Deepen customer partnerships by providing new value employing data and digital technology

*2    Medium- to long-term policy for ports formulated by the Ministry of Land, Infrastructure, Transport and Tourism that summarizes the roles that ports should play and the policies that should be promoted in the future
*3    The ideal future of logistics for which the Ministry of Economy, Trade and Industry and the Ministry of Land, Infrastructure, Transport and Tourism compiled a roadmap with 2040 as the target year

DX at sea

Achieve overall optimal operation through the merger of big data accumulated over many years and AI analysis technology

Lighten workloads on crew and firmly maintain safety by enhancing and implementing navigation support system

*4 Integrated vessel operation and performance management systems

DX of Data

Accomplish digitalization of administrative processes based on data utilization and introduce the latest technology

Create new value for society and the shipping industry by participating in an ecosystem that connects with customers and other companies

DX of human resources

Design and implement DX human resource development program (D+ Project)

Establish a promotion committee led by management and a cross-organizational promotion department, as well as a group co-creation system

*5 Observe, Design, Validate, Adjust

Security that supports DX

Continue to support DX promotion by expanding the digital platform for cyber security both on land and at sea

Strengthen security governance globally and build an organization capable of responding to cyber incidents

Foster a security-first culture through security training and awareness activities in addition to technical measures

Develop and secure expert human resources related to cybersecurity, such as Registered Information Security Specialists

Identify the latest trends and threats and continually advance security management