The Future Pioneered by the ENEOS Group: Utilization of AI to Transform Operations and Create New Value - Part 1

Part 1: IT Strategy for Offense and Defense

Procuring the right technology at the right time and price and providing it to the right departments while leading AI utilization at ENEOS

――ENEOS is advancing its utilization of AI. Following the automated operation at the Kawasaki Refinery, AI implementation* is progressing, with ENEOS seeking to introduce maintenance systems using AI at nine refineries across Japan by FY2026.

* News releases related to AI implementation:

20240524_02_01_2002167.pdf

20230731_01_01_2002167.pdf

Tanaka: Even for me, who had been involved in IT at ENEOS for many years, automatically operating a large crude oil processing unit using AI was something that gave me profound feelings about the evolution of technology. We handle a broad range of product quantities and types, so progress in operational transformation using AI will have a massive positive impact on society. This makes me excited.

――I think so too! Under such circumstances, what’s the role of the IT Planning & Development Department?

Tanaka: The main mission of the department is to support the utilization of digital technologies at ENEOS, or rather, to establish a digital environment. In our pursuit of “Tomorrow’s Normal with AI,” it also plays a key role in leading the adoption of AI within ENEOS. However, we don’t have an unlimited budget, so we can’t implement all the technologies that we want. Procuring the right technology at the right time and price and providing it to the right departments is also a way for the department to show what we can do.

――We undertake technological collaboration with various Japanese and overseas companies for AI utilization. Is it the IT Planning & Development Department or the respective business department that usually searches for such technologies?

Tanaka: It depends on the area. For IT fields such as security and networking, it’s the IT Planning & Development Department. Meanwhile, for technologies that are related to the business departments, the IT Planning & Development Department may be the one that searches based on requests from the business departments about the kind of technologies they want to use, or studies can be conducted together on the technologies found by the business departments. It’s on a case-by-case basis.

――There’re various groups within the IT Planning & Development Department, such as the Digital Transformation Group, Data Management Group, and IT Security Group. What’s the structure of the department and its specific operations?

Tanaka: The IT Planning & Development Department is the largest department at ENEOS and currently has around 150 employees. That’s the size of a small business site. As for operations, it has two main roles: promoting digitalization and protecting the company’s systems. You can probably call them IT for offense and IT for defense. The former is about accepting consultations from the business departments and working together on commercialization and monetization. The latter is to protect the company’s systems from cyberattacks in the form of security. Investments are allocated with consideration for overall optimization.

――What do you think is the role of the general manager of the IT Planning & Development Department, who heads this organization?

Tanaka: As mentioned, there are two aspects of offense and defense, and I need to strike a balance between them. Problems may also occur in systems, so it’s necessary to optimize human resources for addressing problems. Overall, I think it’s like the head coach of a soccer team. In making decisions, I try not to miss the right timing while taking into consideration information from the management, among others. This is the most important point.

――Specifically, what do you mean by “to strike a balance”?

Tanaka: For example, if Department A and Department B want to introduce systems that are almost the same but from different companies, we deploy the same system horizontally. Another example is the horizontal deployment of a solution that solved issues at Department C to Department D. In particular, refineries often have their own different systems for similar operations. We take pains to standardize them.

――In a rapidly advancing digital world, it’s necessary to always update to the latest technologies. Every day must be a battle.

Tanaka: Besides internal information, we have to collect external technological information. The members of our department actively go around collecting information, and it’s quite a struggle to standardize the information so that there are no differences in intensity. It’s also difficult for ENEOS to obtain all the information on its own, and I hope to catch up with society by collaborating with partner companies and others.

――I heard that you’ve been working in the IT field during your entire time at ENEOS.

Tanaka: Yes. There was a time when I worked on advanced technology research at the Central Technical Research Laboratory, but for many years, I was involved in the implementation of communication systems. Much of my career revolves around networks and groupware. As a company with many mergers, I worked on systems each time there was a merger. There was also a time when I was in charge of accounting applications, and that was when I learned about how bookkeeping systems should be.

――Having seen the history of IT adoption at ENEOS all this time, what are your thoughts on the current AI boom?

Tanaka: When I joined ENEOS, I was first involved in a project to provide each person with their own computers. If you start from there, it feels like a different world today. There were several AI booms in the past, but this one is different. It doesn’t feel like it’ll stop; instead, I have the impression that we’ve moved to a new stage. How far will it go? What’s the right way to use it? While the answers are still unknown, we can’t just wait while this wave moves. ENEOS should also actively use AI. As I get a firsthand feel for what a new society incorporating AI will be like, I keenly feel a sense of crisis that we’ll be late in catching this wave if we don’t deploy systems in response within the company without delay.

――It’s convincing when you say it. Do you have a personal principle for working in the rapidly changing field of IT?

Tanaka: For example, in a game of go, when you’re absorbed in the game and push ahead thinking that a move is good, you may make a mistake. As such, you should stop and take a bit of time to think. Still, I aim to eventually stay ahead of others in the end. Therefore, I always make sure not to lag behind in collecting information, such as the trends in society and other companies.

――You’re saying that, in the introduction of digital technologies, it’s necessary to discern the situation, and at the same time, stay ahead of others in the end. In future parts of this series, I hope to ask more about our digital strategy and AI utilization.

■Summary

This article introduced the roles of the IT Planning & Development Department and its general manager in ENEOS’s promotion of AI utilization. General Manager Tanaka, who spent his career at ENEOS in the area of IT, also talked about his views on AI and the basic approach toward adopting AI. The next part will delve into aspects such as ENEOS’s digital human resources strategy, data utilization, and cybersecurity. Don’t miss it!

→Continued in Part 2: The Future Pioneered by the ENEOS Group: Utilization of AI to Transform Operations and Create New Value - Part 2 | ENEOSWAYS | ENEOS Holdings