4. DENSO's Future Creation
2017-2024
(1) A New Beginning
- 2022
- The outcomes of Reborn21 have begun to manifest in terms of quality and performance, marking the time for DENSO to embark on a new journey. Amid a once-in-a-century period of major transformation, how will DENSO realize its mission? In 2022, we reiterated this in our new mid-term policy.
Despite unprecedented challenges like the COVID-19 pandemic, the Reborn21 activities were completed within two years with a united effort across the company.
Regarding the biggest challenge—quality issues—while we cannot afford to be complacent, there have been improvements in both supply and warranty quality. On the corporate structure front, the break-even point ratio has steadily improved, and the company's performance has begun to show results. Although the overall transformation of the company is still in progress, the foundation for the next leap forward is solidifying.
As the foundation for promoting Reborn21, we considered the “cultivation of a mindset for Transformation” within the company to be of utmost importance. By 2022, internal surveys showed that approximately 80% of employees felt they were “acting towards Transformation,” “acting with a perspective of contributing to society and customers,” and “more aware of quality.”
The environment for taking new steps was in place. With the rebuilt management foundation from Reborn21, the key was how to realize “DENSO's Purpose” in the transformed social environment.
It was essential to review and devise new strategies. Although the future remains uncertain, the first step was to reconstruct a “vision of the future world.” From there, we would backcast to determine the current necessary strategies, decide which business areas to focus on as our scope expands from cars to mobility, and eventually to industry and society at large.
Based on this recognition, in 2022, we formulated a new management guideline, the “2025 Mid-Term Policy.” We aim to become a “company indispensable to society” while cherishing the “DENSO Culture” cultivated since our founding. We strive to create “value that only we can provide” and address “social issues” through business growth. Achieving this requires restructuring the pillars of our management from a global perspective. This led to the introduction of the “Five Pillars of Global Management.”
- Deep Dive“Vision” of the 2025 Mid-Term Policy
- As part of our vision for the 2025 Mid-Term Policy, we have set ambitious goals in both the “Green and Peace of Mind” sectors:
- We aim to become a “environmentally neutral manufacturing company” ahead of the global curve, contributing to the creation of a sustainable society.
- We are committed to achieving a society with zero traffic accident fatalities and ensuring safe “air quality.”
- Deep DiveFive Pillars of Global Management
- As a prerequisite for realizing the 2025 Mid-Term Policy, it is essential to develop people and organizations that can think and act independently and autonomously. This involves nurturing professionals with the ability to execute effectively and creating resilient, dynamic organizations. Based on this foundation, we have positioned the following as the “Five Pillars of Global Management”:
- Establishing an Unshakeable and Robust Management Foundation.
- Transforming Work Processes Digitally to Achieve World-Best/World-First Innovations.
- Transforming Business Structures by Completing Growth and “Finalization” with Industry and Partners.
- Leading the Industry to Achieve “Carbon Neutrality.”
- Achieving Business Growth by Providing Products and Solutions in New Domains.
These pillars are designed to guide our strategic initiatives and ensure that we remain at the forefront of global industry leadership while addressing critical societal challenges.