Capital/Business Alliance in Digital Transformation

Sumitomo Corporation (Head Office: Chuo-ku, Tokyo; Representative Director, President and Chief Executive Officer: Kuniharu Nakamura) recently invested a total of 50 million yen in NC Design & Consulting Co., Ltd. (Head Office: Shibuya-ku, Tokyo; Representative Directors: Toshihide Hayatsu, Roy S. Kim; hereinafter, “NCDC”) through a third-party allocation of newly issued shares.

The evolution of the innovative digital technologies of IoT, Big Data, and artificial intelligence over the past several years has helped improve the sophistication of existing businesses and led to the development of new businesses that make use of cutting-edge information and communications technology (ICT) (hereinafter, “digital transformation”). Companies must go through a process of formulating and validating a business strategy and then developing and operating systems to achieve digital transformation, but currently there are only a limited number of companies capable of providing these functions in an integrated and timely fashion.

NCDC specializes in providing these functions by employing design thinking (Note 1) and agile development methodologies (Note 2) to support companies’ digital transformation. NCDC and Sumitomo Corporation will be leveraging the resources and know-how they each possess to advance the Sumitomo Corporation Group’s digital transformation.

NCDC already has an impressive track record of supporting the digital transformation of leading companies in a number of industries, and it will be using this latest funding to secure expert personnel and develop new business in order to expand its operations. NCDC will also be collaborating with the Sumitomo Corporation Group in applying its experience and achievements to the digital transformation of numerous Japanese companies.

To introduce ICT throughout the company and achieve a digital transformation, Sumitomo Corporation established a company-wide cross-sectional organization – the IoT & AI Working Group – in April 2016. This Working Group has sought to use the latest in IoT- and AI-related technology to bolster the competitiveness and creating innovation of all businesses, and thereby improve the Sumitomo Corporation Group’s business value and expand its revenue base. Utilizing NCDC’s wealth of experience and know-how and collaborating with the Group company SCSK Corporation in developing systems will accelerate the Sumitomo Corporation Group’s digital transformation. Sumitomo Corporation is striving to run its businesses utilizing the most advanced ICT so that it can help build a more convenient and affluent society.

(Note 1) An approach that makes use of customer perspectives and experience to develop new products and services and resolve issues
(Note 2) Methodologies for developing software quickly and flexibly while confirming customer needs and requirements

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■Sumitomo Corporation’s Material Issues
Sumitomo Corporation Group positions “Six Material Issues to Achieve Sustainable Growth with Society” as an important factor in developing business strategies and in the decision-making process for individual businesses. Going forward, we will pursue sustainable growth by resolving these issues through our business activities. This Project especially contributes to “Establishing a Foundation for Comfortable and Enriching Lifestyles” and “Providing Diverse “Accessibility””.