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 has positioned digital transformation as a means of strengthening its management base to realize innovation in its corporate culture and business model. The Company 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 [digital] technologies. Moreover, we have set up the dX Strategy Division to guide the ongoing promotion of digital transformation.
Tokyo Century has defined four policies for its digital transformation strategies aimed at achieving its management vision and ensuring its initiatives are advanced in the desired direction: 1. Innovate corporate culture, organization, and processes (implement initiatives for evolving into a cutting-edge digital transformation company); 2. Improve productivity through innovation (fully deploy digital tools to improve operations and productivity); 3. Transform existing businesses (implement key measures to transform existing businesses to overcome Japan’s “2025 Digital Cliff” associated with legacy systems); and 4. Create new businesses (focus on co-creation of new businesses with corporate partners).
As examples of our efforts with regard to 4. Create new businesses, we are advancing subscription business initiatives through means such as investment in and a business alliance with Bplats, Inc., a provider of comprehensive subscription service business platforms. We have also established IBeeT Corporation, a joint venture with ITOCHU Corporation, to supply household electricity storage systems, which are decentralized power sources that contribute to decarbonization. Meanwhile, 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 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, among other ventures, through a business alliance with major map solutions provider ZENRIN CO., LTD. Other initiatives include a business alliance with XMart Inc., provider of the XOrder software-as-a-service ordering platform for improving the efficiency of order processing between restaurants and food product wholesalers. These and other initiatives for creating new, next-generation businesses are being advanced on a Companywide basis.
In March 2021, Tokyo Century became 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 have since renewed our certification. Moreover, in May 2024 the Company was included among the Noteworthy DX Companies 2024 in the Digital Transformation Stock Selection 2024 program organized jointly by METI, the Tokyo Stock Exchange, and the Information-technology Promotion Agency, Japan.
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, as part of our commitment to taking on new challenges going forward.
- Contribution to the SDGs
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Opportunities
- Improvement of customer value propositions using digital technologies
Risks
- Diminishment of customer value propositions due to obsolescence of existing business model
Goals and Progress
| KPI | Supplement |
|---|---|
| Certification under METI’s DX Certification system* | Certification under METI’s DX Certification system achieved in March 2021 and renewed in March 2023; inclusion among Noteworthy DX Companies 2024 in May 2024 |
- *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.
Tokyo Century was selected for the “Noteworthy DX Companies 2024” category in Digital Transformation Stock Selection (DX Stocks) 2024, announced in May 2024.
DX Stocks are a selection of Tokyo Stock Exchange-listed companies that have established internal frameworks for promoting digital transformation to improve corporate value and have been successful in effectively utilizing digital technologies. Companies are evaluated for their DX efforts from aspects such as contribution to corporate value and digital feasibility. Tokyo Century was not selected for the DX Stocks 2024 category but was selected as one of the Noteworthy DX Companies for the Company’s efforts to contribute to corporate value.
Initiative Example
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.
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.
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.
