The Future Pioneered by the ENEOS Group: Utilization of AI to Transform Operations and Create New Value - Part 3

Part 3: Continuous Evolution Together with AI

Toward a future where AI and business work together—hoping that all employees will experience the true benefits from AI utilization

――This time, I hope to ask you about “tomorrow’s normal” that ENEOS seeks through AI utilization. First, what kind of operational transformation do you want to undertake by utilizing AI?

Tanaka: Firstly, given Japan’s shrinking and aging population, the working population will reduce further in the future, so we strive to save labor and accelerate operations by utilizing AI. In addition, we hope to use AI to improve efficiency in fields where lots of funds are being transacted, such as raw material procurement and logistics.

――You're saying that it leads to effective utilization of human capital as well as higher profitability. The new digital strategy states strengthening in the areas of ENEOS’s supply, sales, and manufacturing toward transformation into a robust management structure.

Tanaka: Our digitalization so far has been omnidirectional, targeting various departments. However, to achieve the robust management structure stated in the current management plan (Fourth Medium-Term Management Plan) of ENEOS Holdings, we need to rank the areas that generate profits and work on them in order of priority. The ENEOS Group has all kinds of operating companies, and we'll advance AI utilization centered on supply, manufacturing, and sales, which are the areas that form the foundation of ENEOS’s core petroleum refining and marketing business. We'll generate cash in these areas and go on to improve the efficiency of operations. In the end, I hope to make this an undertaking that allows all employees to receive the benefits of AI utilization.

――Specifically, what are the initiatives that will be implemented?

Tanaka: The IT department can't just work on AI implementation and utilization that makes them feel satisfied. In the digital strategy, it's necessary to select while discussing with the business departments about what is truly needed for each business. The horizontal deployment that I talked about in Part 1 is also important. Something that doesn't have much value in one department may generate results when undertaken together with an adjacent department. We intend to actively serve as bridges for such cases.

――Toward this goal, will you be steadily introducing the resources that have been prepared so far, such as digital human resources and mechanisms for data utilization?

Tanaka: We have cases here and there where the digital human resources that were developed aren't really involved in system implementation projects. We hope to optimize the assignment of digital human resources across the ENEOS Group for them to play active roles while consulting with the Human Resources Department. Regarding data utilization, our employees continue to love Excel. As such, in promoting data utilization, we hope to provide specific examples regarding the benefits of moving away from Excel. Besides the data of CoMPASS, we also have huge amounts of manufacturing and logistics data outside CoMPASS. There's no reason for not utilizing such data. Under such circumstances, we hope that data utilization can contribute to business, but in the case of digital technologies, it's difficult to prove the causal relationship with contributions. Computers may have become faster, but overtime work isn't reduced just because of higher labor intensity. Digital technology is but a tool, and the end goal is to generate results in business.

――You said that, as the leader in AI utilization, the IT Planning & Development Department has a mountain of knowledge that needs to be absorbed in this process.

Tanaka: That's right. Generative AI such as ChatGPT came out about two years ago. It has grown significantly, and we need to properly catch up. When I was appointed as general manager of the IT Planning & Development Department, I asked department members to allocate about 10% of their working hours each week to the learning of technology. Currently, though, everyone is hectically going about the department’s work and can hardly find such time. I believe it's necessary to establish an environment where they can at least study generative AI.

――How often do you use generative AI in your daily work?

Tanaka: I see myself as a heavy user of generative AI. Discussions with my subordinates may get drawn out, so I improve efficiency by going through possible questions with AI before I start talking to them. Recent AI provide diverse answers from multiple angles to a single question, often leading to more ideas. When introducing new systems and such, I use it as reference for developing stories on the effects for ENEOS from these systems to convince the management.

――Based on your experience, what do you think are the benefits that AI penetration will bring for employees?

Tanaka: This may be a bit abstract. Take a case when we have to choose either A or B as an example. When a person who chose A based on intuition later learns that A is a cheap and quality product that is friendly to the environment, they may feel good and say, “See? It’s as I said.” However, that person actually already had enough understanding about the merits and demerits of A and B to decide at the stage of choosing based on intuition. On the other hand, in work, reasons to support this decision are required, and we need time to gather and analyze these reasons. Using AI can, for example, help to reduce the time for gathering evidence and increase the time for more valuable things such as making decisions. Employees will come to use AI from the convenience of always being given proper evidence based on data, and it can help to lower costs for the company by reducing the time needed for making decisions. This is an example of the true benefits of AI utilization.

――I see. I can see how AI can be utilized. Lastly, what role will the IT Planning & Development Department play toward “Tomorrow’s Normal with AI”?

Tanaka: Put simply, I hope the department will play a moderate role at a high level. As mentioned in Part 1, if we can spend money like water, we can use as much as we want. However, we can't just invest in digital technology. Our job is to select beneficial technologies while looking at the cost benefit. I think utilizing AI will lead to a new era where it's normal for AI and business to cooperate. I hope to undertake, as strategically as possible, whatever can be done now so that we can smoothly provide such a “tomorrow’s normal.” This will allow ENEOS to grow, and if we achieve a state where we can better contribute to society and our customers, the work of the IT Planning & Development Department will be truly satisfying.