Yamaha DX Strategy

Basic Policy on DX Strategy

The goal of Yamaha’s DX strategy is to transform our business and processes from a customer-centric perspective. To drive this digital transformation, we have organized our business processes into five key areas: customer contact points, planning/research/development, production, supply, and administrative functions such as accounting and HR. Each area is monitored and analyzed based on three perspectives (data, systems, and business processes), with clear policies and rules established to facilitate group-wide business process transformation. In April 2019, we established the Digital Transformation Strategy Committee as one of our corporate committees serving as an advisory body to the president, tasked with deliberating on corporate DX policies and IT strategies.

Progress to Date

Following the basic policy outlined above, we have made significant progress in developing our internal systems and building our data resources. We are transitioning our previously region-specific ERP systems into an integrated, company-wide platform. In manufacturing operations, we are working to optimize, standardize, enhance efficiency, and increase added value in our manufacturing processes and factory systems. In terms of data utilization, we have made substantial progress in establishing our Master Data Management (MDM) infrastructure, improving data visualization and streamlining analytics operations. Additionally, we have implemented Business Intelligence (BI) tools to support data analysis across various areas. Our globally integrated membership system Yamaha Music ID has grown to over 7 million members. By leveraging data, we have gained a better understanding of our customers, enabling us to distribute personalized newsletters and provide services such as product-specific membership benefits. We are committed to implementing improvements across all product and service categories.

Future Efforts

Moving forward, Yamaha will continue to leverage advanced digital technologies to create end-to-end process transformation that seamlessly connects our customers with our company. Based on this policy, we will develop initiatives around the following three pillars:

1. Deepening Customer Engagement

We will deliver personalized customer value that extends from products to experiences. To achieve this, we will develop products and services based on customer feedback and strengthen supply chain management (SCM).

• Delivering Personalized Customer Experiences: We will provide integrated physical and digital experiences as customer value, tailored to customers' musical abilities and preferences. To achieve this, we are building platforms for conducting timely data analytics. Through Yamaha Music Connect, a platform offering applications and services that enrich musical life, we will deliver three core values: Learning that supports practice and skill development, Creativity for freer and more enjoyable musical expression, and Community that builds connections among people through music.
• Developing Products and Services Based on Customer Feedback: We conduct global customer satisfaction surveys to measure the effectiveness of our customer loyalty initiatives. Going forward, we will incorporate AI technology to leverage customer feedback and behavioral data, enabling timely releases of high-added value products and personalized services.

2. Accelerating Business Operations

By revamping our core systems for business processes across all internal departments and strengthening our data infrastructure, we will enhance or automate our operations to make them data-driven and real-time.

• Core System Modernization: We are upgrading core systems of production, sales, and corporate functions while implementing master data management (MDM) and management dashboards to enhance internal data linkage.
• Data-Driven Management: Through management dashboards that visualize key information, we will achieve real-time business management capabilities. Additionally, we will transform back-office processes through IT solutions, freeing up resources for added value-generating activities.
• Strengthening SCM: By upgrading systems at our factories and sales subsidiaries while strengthening coordination between production and sales, we will optimize inventory management to ensure timely delivery of the products customers need.

3. Shifting to High-Added Value Talent

We will foster a culture of process transformation across our value chain while expanding our DX workforce.

• Developing a DX Workforce: We are strengthening our recruitment and development of professionals who implement data-driven decision-making and customer-centric process transformation. Our development program clearly defines DX competency profiles by job function and systematically builds necessary expertise. We have incorporated training in emerging technologies such as generative AI, aiming to develop data analysts who can have an immediate impact.
• Cultivating a Culture for Process Transformation: We are implementing HR initiatives to foster a company-wide culture of transformation, to ensure that every employee approaches each business process—from product development to delivery—with a transformative mindset.

In April 2023, Yamaha renewed its certification as a digital transformation-certified business operator under the Digital Transformation Certification system advocated by the Ministry of Economy, Trade and Industry of Japan. This system is used to certify business operators that are prepared to promote digital transformation. Yamaha initially received this certification in April 2021 in recognition of its highly regarded security measures and customer data platforms.