KubonagaMC Digital's sophisticated DX support serves many of the industries that MC Group companies are involved in. By providing that support, we are trying to address industry-wide challenges, and by extension, help to solve many of the problems that modern societies are faced with. While much of our work is geared towards business improvements at individual companies, we are always mindful of creating scalable DX that can help to reform or restructure entire industries. We are currently engaged in many different fields, where we are working to predict product demand, optimize delivery routes, analyze credit and marketing data, and so on. We also recognize the importance of having resilient and adaptable systems, as well as organizations that are capable of sustainable growth, because we know they are vital to driving progress in DX initiatives.

NakataTake logistics for example. The pandemic has shown us how vulnerable that industry is to changes in supply and demand, but in the past, responding to such changes by altering shipping routes has proven to be problematic. This is because of the sheer magnitude and complexity of the conditions that have to be considered, such as where cargo is being loaded and unloaded, how many trucks and drivers need to be deployed, and so on. By combining machine learning and mathematical optimization, we have created systems capable of adapting to changes in supply and demand in the most efficient manners possible. In addition to making companies more efficient, these systems cut fuel consumption, which results in lower CO2 emissions. We also believe that they help to improve the working environment for drivers. This success is a testament to the incredible dedication of our team members, all of whom possess top-level expertise in their respective fields. Every day, they worked hard to break down and address the unique challenges faced by each of our customers, and in the end their hard work paid off for everyone involved.

NakataData is undeniably important for things like optimization and forecasts, but for something like deployment of a delivery fleet, for example, it also helps to have a "secret sauce" born of years of frontline work and experience. Some expertise cannot be visualized by data, and sometimes the resulting solutions will be even better if that on-the-ground expertise is also factored in. I often visit logistics companies to hear what their people have to say and observe operations at their fulfillment centers.

KubonagaI believe that combining the know-how of various industry experts with that of engineers and data scientists who work for entities like MC Digital is essential for achieving successful DX initiatives.

NomuraAbsolutely. MC has applied its "full-optimization" approach to so many of the industries it is engaged in, and that approach can benefit society in a multitude of ways. For example, to reduce food waste, operations could be optimized independently at each retailer, wholesaler and manufacturer, but doing so would not create as much synergy as optimizing the entire food value chain. One of the barriers to full optimization are so-called "information silos," where data is stovepiped or sequestered within separate systems or subsystems, so that it can be neither integrated nor made compatible with other systems. Fortunately, MC functions as an intermediary, a conduit that can connect data analyzed separately at different companies, and there are cases where it has identified new value by doing so. What makes Japan such an appealing market is its rich variety, examples of which include its four distinct seasons and its many regional characteristics; however, all of that variety can complicate the challenges inherent to DX. The fact that MC has such a long track record doing business in Japan is precisely why it is uniquely equipped to undertake DX projects. Work that is both invested in DX and symbolic of MC as a company is the kind of work that we are keen to be involved in.

KubonagaAnother strength of the shosha is their ability to cross-develop DX successes in other industries. Many of the DX projects that we have worked on have shown us that problems faced in one industry are essentially the same as those faced in another. There are a spectrum of possibilities for future business reforms in Japan.

NomuraYes, we are proud of our team. MC Digital was established by MC as a startup in 2019, and all of its employees are excited about advancing their careers in step with the company's growth. Our employees may be young, but you are right about their international experience. They have written papers that have appeared in scientific journals published by Nature Portfolio, won medals at the Asia-Pacific Informatics Olympiad and the International Olympiad in Informatics, and otherwise proven that their capabilities transcend geographical borders. Our corporate culture is one that encourages daily discourse, mutual respect and support for one another, because we know how important they are to applying our sophisticated technical expertise diversely in industry. Agile approaches are particularly important for tech companies, and here at MC Digital they are rooted in our culture.

KubonagaOne thing that we emphasize in our work is building trust, not just internally, but also externally with our clients. When your team is engaged in problem solving, trust will always be a key to its success. This is why we are as open as possible to employee's ideas and try hard to foster close communication. For our DX projects to work, in other words, for us to be successful in promoting business reforms that begin on the front lines, we will need more than optimal solutions devised by our engineers. Our success will hinge on the trust earned by each and every member of our team, and that is why we will continue to value the building of trust-based relationships.