DX Initiatives

DX Initiatives

DIGITAL TRANSFORMATION

The OYO Group's DX challenge aims for major transformation in overall management, from creating new businesses to reforming work styles

Since 2018, the OYO Group has implemented DX (Digital Transformation) initiatives in an effort to ensure sustainable business growth in an era of major social change.
These initiatives comprehensively incorporate AI (artificial intelligence), ICT (information and communication technology), and cloud technology into the Group's business activities, work styles, etc., thereby significantly changing overall management, from conventional business styles to the creation of new businesses.
In 2022, we were selected for DX Stocks 2022 as a company that is boldly taking on the challenge of reforming its business model and management.

DX strategy in the Medium-Term Business Plan "OYO Advance 2023"

The Group positions DX-centric innovation strategy as a key growth driver. We aim to create innovations in all directions and start a chain of successive innovations; specifically, we will create new businesses, deepen existing businesses, as well as reform the operational processes and corporate culture which support those businesses.
Specifically, to promote our DX strategy, we will allocate 1 billion yen for DX investment over a 3-year period, aiming for a further shift to digitalization that creates opportunities to create new profits and value, centering on the following three pillars.

(1) Promote DX to create new business services (new business creation, business format transformation)
(2) Promote DX to deepen existing business models (use of digital technology, innovative productivity improvement)
(3) Promote DX for work style reform and innovative enhancement of productivity

Conceptual diagram of DX-centric innovation strategy in the Medium-Term Business Plan

Conceptual diagram of DX-centric innovation strategy in the Medium-Term Business Plan

Examples of DX initiatives

Develop and operate Ground Information ICT Platform

As our first DX initiative, the Company started building a Ground Information ICT Platform from 2018. We have already started the in-house operation of the platform. The Ground Information ICT Platform aggregates the data and knowledge accumulated within the Company. The platform serves as the core for improving the efficiency/sophistication of operations and reforming work styles, as well as serving as a foundation for creating new businesses. The platform consists of three domains: the Business Efficiency Domain, the Internal Knowledge/General Data Aggregation Domain, and the Service Business Expansion Domain. The platform is comprehensively managed and operated through all of these information linkages.

Develop and operate Ground Information ICT Platform

"Deepening" of existing businesses

By combining digital technology with core technologies (survey and analysis technology related to geology and geotechnical engineering, development capabilities for measurement equipment, etc.), which we have used since our founding, the Company is working to overcome the issues of existing businesses and increase the potential of our services. In technical services related to geological features and foundations, the Company's competitiveness and differentiation from competitors is achieved through the knowledge and experience of our engineers, which is backed by a high level of expertise. On the other hand, we faced major problems in the efficiency, standardization, and succession of technology due to the large amount of physical and analog work, as well as the dependence of knowledge on the experience of individual engineers. Implementing DX will solve these problems. By fusing digital technology (AI, database, 3D modeling technology, etc.) with conventional core technology, we will be able to significantly improve the efficiency of our existing businesses. We expect these efforts to improve our cost competitiveness and working environment. Next, by eliminating individualization and standardizing knowledge and data, we will improve the succession of technology, eliminate variations in the quality of results due to individual experience and ability, and maintain the reliability of our services. Furthermore, by adding new value to existing services through digital technology, we expect our services to expand to new customer segments.

3D geotechnical analysis technology

3D geotechnical analysis technology

We will develop 3D geophysical exploration technology for acquiring 3D geotechnical information and technology for modeling and visualizing this information in 3D. Until now, geotechnical information has depended to some extent on "estimations" based on the experience of expert engineers. Moving forward, we will output geotechnical information in a more quantitative format that is easy for anyone to understand. As a result, we are able to reduce discrepancies in evaluations and judgments caused by different experience levels and reduce the danger of overlooking geotechnical risks. By providing non-experts with new opportunities for geotechnical utilization, we expect to create new businesses and markets.

Hazard mapping sensor solutions

Hazard mapping sensor solutions

These solutions for preventing and mitigating natural disasters consist of a multi-point disaster prevention sensor that uses edge computing, LPWA, and IoT/cloud, and a function which uses AI to extract sensor installation locations (potentially dangerous locations for landslide disasters). The solutions make it possible to suppress operation costs and personnel burden and can be controlled by multi-point, complete-area, wide-area, and real-time monitoring. The introduction of AI has enabled an approximately 99% reduction in the time required to extract potential danger locations for landslide disasters, which previously required a large number of labor hours for careful analysis by geological engineers. This system won the first-place award of MCPC Award 2020 (sponsored by the Mobile Computing Promotion Consortium) in the Services & Solutions category.

Creation of new businesses/Open innovation

The Company's DX aims not only to reform existing businesses, but also to create new businesses and services that have never existed before. The keyword is "geological engineering x measurement instruments x digital technology x co-creation."" The Company is working to create new businesses that have not existed in the world until now by integrating digital with the core technologies that we have cultivated so far, and by collaborating with various different industries through digital technologies. Our underground visualization services, which is a collaborative business with Hitachi, Ltd., combine our underground radar exploration technology and Hitachi's AI technology to visualize gas pipes, sewage pipes, and other pipes buried under roads, and then offer on-demand sales for 3D position information on those pipes. In the past, the Company provided contracted services such as surveys and consulting. However, these services acquire information on buried pipes under roads over a wide area in advance, and then use AI to automatically analyze and stock the information. In this way, we have created on-demand services that give customers access to information on underground buried objects at their desired location at any time via the cloud. Through "geological engineering x measurement instruments x digital technology x co-creation," we are creating new markets and accelerating the transformation of the Group's business format.

Underground visualization services

Underground visualization services

Buried pipes under roads are often mistakenly damaged during excavation work due to inaccurate location information. Furthermore, it takes time and effort to obtain information for separate sites from different location information managers. Such issues cause many inefficiencies for business involved in road construction in urban areas. In these services, the location information of buried pipes is actually measured by a dedicated radar exploration vehicle, and AI is used to clarify the type and 3D arrangement status of the information. Furthermore, the services make it possible to extract only the desired amount of the desired data via the cloud. This eliminates the above inefficiencies and contributes to smart urban development.

Real-time hazard map

Real-time hazard map

When considering the current situation in which natural disasters are becoming more frequent and severe, companies from various industries gather together to create a disaster-resistant society called the "Disaster Prevention Consortium CORE." OYO is a representative corporation for one of the CORE subcommittees. We are working on the development of real-time hazard maps. In addition to real-time information obtained from natural disaster prevention IoT sensors and SNS, the real-time hazard maps use existing security camera images for natural disaster prevention (AI is used to automatically analyze camera images). In this way, we aim for fast and low-cost social implementation of a system which covers all of Japan.

Using digital technology to update work sites

The Company's DX is an integrated management reform initiative that includes not only business aspects but also operational efficiency and work style reforms. In addition to accumulating knowledge inside and outside the Company through the ground information ICT platform and linking it to themes such as operational efficiency and sophistication, we are actively promoting the digitization of all operations together with the creation of a comfortable working environment. Specific initiatives include comprehensive renewal of core systems, strengthening of the network environment, and distribution of mobile devices (smartphones, notebook computers, etc.) to all employees.

Digitizing the workplace will create more leeway in the workplace, thereby making it possible to allocate resources to create new businesses. We expect the transformation of operational processes through digitization to lead to the improvement of customer services and the development of new services. Through the growth of such services, the workplace will be updated even further. In this way, we expect synergies in the acceleration of corporate transformation.

Using AI and AR to increase the sophistication and efficiency of testing operations

Using AI and AR to increase the sophistication and efficiency of testing operations

Our Core Laboratory Experiment Center is the largest test facility in the private sector for the evaluation and analysis of soils and rocks. It is necessary to accurately perform various tests in a short period of time on a huge number of samples sent every day from throughout Japan. Therefore, we introduced AR (Augmented Reality) and RFID tags in an effort to utilize IoT and visualize the progress of indoor tests. We are also improving the productivity of testing operations by using AI to automate testing and introducing testing equipment that can be operated remotely. Furthermore, we have introduced a test operation manual using AR and are using digital technology to ensure the succession of techniques.

Remote presence using wearable cameras, etc.

Remote presence using wearable cameras, etc.

Remote presence using wearable cameras, etc. At sites such as geological surveys, the client directly visits the worksite to check the progress and results of the work. However, at sites such as dam surveys deep in the mountains, it is necessary to travel several hours by car from the office to the worksite. Such circumstances place a heavy burden on the client, and have become an issue from the perspective of efficiency and work style reform. Therefore, the Company uses a method (remote presence) which uses wearable cameras or other equipment to allow clients to check the worksite online. By making improvements while incorporating customer requests, we have established remote presence as a new worksite management method.

High evaluation from outside the Company

Through our DX initiatives so far, the Company has been highly evaluated by a variety of outside organizations. In particular, in 2022, we were selected for Digital Transformation Stocks (DX Stocks) 2022, which is an award held by Japan's Ministry of Economy, Trade and Industry, the Tokyo Stock Exchange, and the Information-technology Promotion Agency. We won this award in recognition of our corporate efforts to transform management and improve earnings level/productivity through IT, with the goal of heightening our corporate value and competitiveness in the medium to long-term.

High evaluation from outside the Company
August 2020 Noteworthy DX Company
November 2020 MCPC Award 2020 Services & Solutions category
Won the First-Place Award
March 2021 7th Japan Resilience Award
Won the Excellence Award
July 2021 DX Certification
May 2022 DX Stocks