Creation of new businesses driven by technical innovation
Create new businesses by integrating new technologies into financial services and contribute to the digital economy
Tokyo Century seeks to create new businesses by integrating new technologies into financial services and to contribute to the digital economy through collaboration with partner companies and investment in companies boasting promising technologies.
In the Equipment Leasing segment, we are reinforcing our foundation for supporting the digital economy through investment in and a business alliance with Bplats, Inc., a provider of comprehensive subscription service business platforms, while also developing subscription service businesses. Also in this segment, we have established IBeeT Corporation, a joint venture with ITOCHU Corporation, to supply subscription services for household electricity storage systems, decentralized power sources that contribute to decarbonization, and peripheral equipment.
Meanwhile, in the Automobility segment, Tokyo Century is co-creating new businesses that promote digital transformation in the mobility field. For example, we have concluded a capital and business alliance agreement with Mobility Technologies Co., Ltd. (currently GO Inc.), which operates the GO taxi dispatch app covering the largest number of affiliated taxis in Japan. Also, we are engaged in mobility-as-a-service (MaaS) and smart city businesses through a business alliance with major map solutions provider ZENRIN CO., LTD., in which we combine the resources of this company with our own.
In the Specialty Financing segment, we have concluded an investment contract with Germany’s Volocopter GmbH, a company developing flying cars as a form of next-generation aerial mobility. Moreover, a business and capital alliance agreement was concluded with XMart Inc. in fiscal 2022. The company’s XOrder software-as-a-service ordering platform uses the LINE messaging service to significantly improve the efficiency of order processing between restaurants and food product wholesalers, which was previously performed on a paper basis. This simple yet innovative solution has been garnering a great deal of attention. Meanwhile, SecondSight Inc., a joint venture company established with JFE Engineering Corporation, provides diagnosis solutions that combine cutting-edge technologies such as sensing technologies for replicating people’s senses of sight, hearing, and smell as well as the muscular movements of human bodies. These are just some of the initiatives we are advancing to create new businesses for the next era.
In December 2020, the DX Strategy Division was established within the Corporate Planning Unit to plan and promote Companywide digital transformation strategies. In addition, Tokyo Century was the first leasing-based financial services provider to be recognized as a DX-certified operator advancing superior initiatives under the DX Certification system organized by the Ministry of Economy, Trade and Industry (METI), and we were recognized under this program once again in March 2023. Furthermore, Tokyo Century participated in the corporate kickoff-day panel discussion arranged by Plug and Play Japan in fiscal 2022. We used this opportunity to explain our open innovation initiatives for engaging in co-creation with start-up companies.
The Company is also focused on fostering a corporate culture in which employees feel empowered to boldly tackle new challenges without fear of failure. It was for this purpose that we introduced the TC Biz Challenge Project, a new business proposal initiative. In the first iteration of this project, an integrated aquaculture–agriculture cultivation facility project was selected from among the numerous proposals received for advancement to the verification testing phase. It was decided that this proposal would not be developed into a business, but we remain committed to tackling new challenges going forward.
- Contribution to the SDGs
-
Opportunities
- Growth of subscription service businesses in tandem with development of digital society
- Increase in opportunities for joint businesses with companies possessing innovative technologies
- Creation of new businesses through digital transformation
- Emergence of new mobility businesses like automotive businesses using driving data and flying cars
Risks
- Diminishment of competitiveness of existing business model due to failure to promptly respond to new technologies
- Loss of customers and reduced productivity due to impaired service provision capabilities resulting from lack of effective digital transformation
Goals and Progress
| KPI | Supplement |
|---|---|
| Certification under METI’s DX Certification system* | Certification achieved in March 2021 and renewed in March 2023 |
- *The DX Certification system is an initiative implemented under the Act on Partial Revision of the Act on Facilitation of Information Processing, which came into force on May 15, 2020. In line with the guidelines set by the Japanese government that present to companies ideal approaches for making use of strategic systems in their business management and for creating such systems, an authority certifies companies engaging in outstanding efforts, if companies eligible for certification file a request accordingly. Under the DX Certification system, beyond being poised to promote digital transformation, it is important that companies have taken measures related to the fundamental items of management goals, strategies, performance, KPIs, and governance systems that are defined in the digital governance code compiled by METI in November 2020.
Moreover, Tokyo Century was included in the Digital Transformation Stock Selection (DX Stocks) announced in May 2023. DX Stocks is a selection of Tokyo Stock Exchange-listed companies that have established internal frameworks for promoting digital transformation aimed at improving corporate value and which have been successful in highly utilizing digital technologies. Between one and two companies are chosen from each industry. The Company has also been included in this program in each of the nine years since the establishment of the Competitive IT Strategy Company Stock Selection program—the predecessor of the DX Stocks program—in 2015.
Initiative Example
Promotion of the Mobility-as-a-Service (MaaS) Tourism Service Verification Test through Collaboration between ZENRIN and Nippon Rent-A-Car Service
Tokyo Century is collaborating with map solutions provider ZENRIN CO., LTD. and Nippon Rent-A-Car Service, Inc. to conduct a verification test of the MaaS tourism service in Nagasaki City.
ZENRIN’s smartphone app enables tourists to rent cars under a special plan. In addition to providing local information, it also allows users to purchase tickets for public transportation and tourist sites, exchange awarded points for products, and manage travel history. Combined with car rentals, this will improve the convenience of traveling to sightseeing spots in suburban areas and encourage more excursions.
Outside of this project, we will continue to discuss with ZENRIN the commercialization of safe and secure mobility services and other ways to help revitalize local communities nationwide.
Launch of Fixed-Price Power Conditioner Rental Service
We work with OMRON Social Solutions Co., Ltd. (OSS) to offer the POWER CONTINUE fixed-price power conditioner* rental service for low-voltage solar power plants.
OSS handles equipment replacement and maintenance, while Tokyo Century provides related financial services and the TCplats subscription integration platform. The POWER CONTINUE service improves power generator output at zero initial cost and eliminates the burden of unexpected costs such as repair and replacement of power conditioners.
*A machine that converts electricity generated by solar power from direct to alternating current for use in homes, buildings, factories, and other facilities.
Launch of Subscription Services for Electricity Storage Systems
IBeeT Corporation, a joint venture with ITOCHU Corporation, provides household electricity storage systems (decentralized power supply) on a subscription basis. In the storage battery market, the need for household and medium- to large-scale industrial electricity storage systems is expected to increase for multiple reasons, such as for the efficient use of renewable energy, improved resilience against natural disasters, and electricity storage in case of power outages.
In the future, we will develop an efficient decentralized power supply platform using AI to achieve mutual supply of surplus power generated from decentralized power sources owned by IBeeT. Through the platform, we will contribute to the realization of a society that is both decarbonized and based on decentralized energy sources.
Tokyo Century’s Contribution to the SDGs
Tokyo Century is contributing to the enrichment of daily life and the sustainable development of society toward achieving the SDGs adopted as a shared responsibility for the international community at the United Nations Summit on Sustainable Development.
