Solving Social Problems through Our Business
The Group will accelerate creating shared value (CSV) management, which integrates corporate activities with action to improve social sustainability, by placing the expansion of services that contribute to the resolution of social issues at the core of its business growth strategy and addressing social issues from a global perspective.
Seek to offer solutions to social issues through business
Identify social issues where TIS INTEC Group can contribute to solutions
Sustainability Project Team identified four social issues from more than 160 social issues and business themes that the Group will ultimately focus efforts. The social issues are ; "Financial inclusion" , "Urban concentration and regional decline" , "Low-carbon/decarbonization" and "Health concerns".
Financial Targets and Progress of social issue solution services
We defined service businesses that directly solve the four social issues as "social issue solution services" under Medium-Term Management Plan (2021-2023) and applied to KPI as well. We had planned sales of 50.0 billion yen for the fiscal 2024 in social issue solution services, but actual results were 49.7 billion yen, a 30.8% increase over the fiscal 2021.
Solving Social Problems through Strategic Domains
In Group Vision 2032 set for 2024, we will partially revise strategic domains, based on long-term business direction, with aim of developing business pursuits hinging on social issue resolution and co-creation and commercializing services that go beyond IT alone. From Medium-Term Management Plan (2024-2026), we will promote the solving social problems through our business, centered on the promotion of strategic domains.
Redefined Strategic Domains under Group Vision 2032
Strategic Domains: Desired Composition
* Strategic domain ratio reached 61% in fiscal 2024, but because of stricter scrutiny paralleling a review of strategic domains for the new medium-term management plan, the ratio was reassessed at 48% under a new standard, with new target for fiscal 2027 based on this standard as well.
Examples of Initiatives to Solve Social Problems through Our Business
We will introduce our approach and efforts to solve each of the four identified social issues.
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Financial Inclusion
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Health concerns
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Urban concentration and regional decline
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Low-carbon/decarbonization
Financial Inclusion
<Using digital technology to create solutions>
- Our aim is to realize a cashless society and improve access to financial services. We will do achieve this by expanding our range of payment services, including mobile payments, while introducing new credit systems and using digitalization to servitize and upgrade our financial systems.
Provide format that is convenient and secure for everyone who needs payment settlement
By providing a convenient and secure format that fosters peace of mind in everyone who requires payment settlement, either to pay or to receive payment, we will play a proactive role in forging a cashless society and establishing a vibrant presence that supports inherent social platforms.
For example, in areas where financial institutions have a limited frontline presence, many people take the time to go to a bank and withdraw cash or reload local or store-specific prepaid cards before going shopping. The spread of cashless shopping in such areas would benefit consumers with greater convenience, including less travel time and hassle, and increase purchasing potential, while financial institutions would see greater efficiency in teller services and ATM installation and maintenance.
In core system development, TIS counts 10 of the top 25 companies, in terms of credit transaction volume, as clients. Credit extended for credit card shopping in Japan amounts to ¥54 trillion annually. The 10 companies in TIS' account portfolio have about 170 million cardholders, with credit transaction volume representing about 50% of total domestic credit card purchases. In addition, TIS enjoys an overwhelming share—about 80% on a card-handling financial institution basis—through the use of DebitCube+ and other solutions that offer one-stop processing required for issuing and operating branded debit cards.
Through these activities, we provide a secure social platform that underpins enhanced convenience for all.
Social change through payment settlement
The rapid advance of technologies, including mobile, cloud, IoT, Big Data, artificial intelligence (AI) and robotics, has led to a fusion of existing industries and the appearance of new industries. With all sorts of things connected here, there and everywhere, a quality/quantity value exchange is occurring in real time like never before.TIS is making Japan easier to navigate and enjoy for Chinese visitors and contributing to greater use of cashless payments in Japan. Efforts include verification tests for Alipay to purchase fares at ticket machines for the Okinawa Urban Monorail known as Yui Rail as well as the start of handling operations for Alipay, WeChat and UnionPay through QR-code settlement compatibility on QUALICA-standard POS, which is used in the restaurant and retail industries.
Also, we will facilitate secure settlement using smartphones as well as wearable devices and IoT equipment through a token requestor service and deliver safety, peace of mind and convenience to users.By providing the platform that supports this kind of value exchange, we will establish a presence that fuels changes for a safer, more secure and more convenient future society.
Seek to expand digital wallet service compatible with range of devices, using newest 5G network
Market-watchers expect tokenization-related business to expand on a global scale, driven by technology for IoT payment solutions using the next-generation 5G network. To capitalize on anticipated growth, TIS turned Sequent Software Inc., with leading tokenization technology, into a consolidated subsidiary. TIS will apply Sequent’s tokenization technology to digital wallet services, which integrate different payment methods and interfaces, including in-app payment, into a single app. Against a backdrop of growing demand for cashless payment solutions, TIS will promote digital wallet services and leverage IoT payment solutions using smartphones, wearable devices and other connectivity products to provide convenience, peace of mind and even an aspect of fun when making purchases.
Health concerns
<Using digital technology to create solutions>
- By using communication technology to build infrastructure, we aim to establish comprehensive regional systems and promote online medical treatment at home, thereby lowering the cost of disease management and improving the convenience of medical services.
- We will deploy safe and secure personal information management to gather medical data and vital data, while coordinating wearable devices and analyzing big data to provide comprehensive services that encompass health promotion, prevention, treatment, and prognosis, as well as nursing care. At the same time, we will use electronic medical records to build wide-area medical care platforms that foster good health and disease prevention, thus helping people enjoy longer and healthier lives.
Helping to solve impact of labor shortage through robotics integration
The use of robots has garnered greater attention as a way to address the labor shortage caused by fewer children and more seniors in the population. But the availability of economically priced, general-use robots is slim, and the use of robots has not spread beyond the fields of nursing care and welfare and for monitoring and communications. This is an issue in need of a solution.Through its investment in SEQSENSE, a venture developing autonomous robots, and its involvement in the FIWARE Foundation, TIS aims to create platforms that will lead to human-robot coexistence. This will facilitate the connection between services and robots and robot-to-robot. To promote widespread use of robots, we will make the framework open to all developers.
Standardizing data model for autonomous mobile robots
In November 2019, TIS and the University of Aizu jointly initiated a proof-of-concept experiment at LICTiA (Laboratory for leading-edge ICT in Aizu) on automating transport operations where autonomous mobile robots are linked to inventory management systems. Through this experiment, TIS demonstrated easy connection of RoboticBase and various operating systems and, through the application of standardized interfaces, connection with different types of robots. TIS will now work toward future application of this format to create business services integrating various operating systems and service robots.
By incorporating various service robots into business services, such as logistics and facility management, we will present new approaches to help address social issues
Urban concentration and regional decline
<Using digital technology to create solutions>
- By utilizing 5G and 6G technologies to bring administrative services online and using drones and AI to save manpower in the management of social infrastructure, we aim to minimize the decline of local government administrative services stemming from the falling population. At the same time, we will deploy communication technology to expand remote working arrangements while ensuring employment security and creating new industries in rural areas.
- By automating production sites and municipal systems in urban areas, we will work to reduce air pollution and traffic congestion, thereby contributing to the improvement of urban environments and productivity.
Hub established in Fukushima to contribute to regional revitalization
The Group is helping to create a more robust, sustainable society and realize safe and comfortable living by using ICT to address local challenges such as labor force decline. As part of this process, we have established a hub in AiCT, our ICT office in Aizuwakamatsu, Fukushima Prefecture, to promote projects that create new solutions and solve societal challenges in three fields: cashless payments, robotics, and health care. Working with the Open Government Consortium (of which we are a member), we will be involved in the following real-world trials.
(1) Cashless payments
A new cashless network will be developed in collaboration with local communities to provide residents with cashless means of payment for goods, transport, health care, and other services. Consumer data will additionally be used to revitalize local economies.
(2) AI and robotics
The project is intended to help address the problem of labor force decline in the provinces. The aim is to pilot and commercialize delivery of the RoboticBase platform allowing integrated control and coordination of multiple service robots with the ultimate goal of realizing Fukushima Prefecture’s Fukushima Innovation Coast Initiative and Minamisoma Robot Development Vision.
(3) Health care field
The aim of this project is to produce information that delivers deeper insights for medical institutions by integrating the information held by local health care providers with vital information obtained regarding everyday life.
Low-carbon/decarbonization
<Using digital technology to create solutions>
- By using AI and IoT technologies to monitor the status of the grid and forecast electricity supply and demand, we aim to help improve the stability of renewable energy supply.
- Using blockchain technology, we seek to foster the spread of P2P transactions involving green power sources.
- Deploying virtual power plants (VPPs), electric vehicles (EVs), and the like to enable micro-grid management, we aim to make regional power supply smarter while optimizing other urban infrastructure.
A verification test of next-generation transit infrastructure in Assabu region
Responding to moves to eliminate coal dependence and switch to use of locally produced and consumed energy resources, which is a key element of the Japanese government’s Society 5.0 vision, the Group is using its many years of business experience to help solve societal challenges.
To assist in this process, the Group has partnered with INDETAIL to implement the Project. The aim of this project is to overcome some of the problems generated by the decline of transport infrastructure caused by the falling birthrate, population aging, and depopulation of rural areas and the decline of regional economies caused by increases in energy costs. It will do so by developing a next-generation transport and energy platform that uses advanced ICT to deliver new modes of transport, revitalize regions, and create communities that are sustainable from the point of view of meeting residents’ needs and reducing their energy use and environmental footprints.
The project is being led by INDETAIL and TIS and involves a group of other companies including Hokkaido Electric Power Company, Takaoka Toko, Oracle Japan, Mitsui Sumitomo Insurance, Smart Value, and Cle-Net.
From August 2019, a verification test is underway in Assabutown on the northern island of Hokkaido, following which theplatform will be rolled out on a full-scale basis.
(1) Launch and management of local currency for limited uses
A new local currency will be launched to encourage use of local transport and revitalize centrally located shopping centers.
(2) Energy management scheme
Electricity providers and users will use renewable energies to promote local energy production and consumption.
(3) MaaS platform
This platform is tailored to the needs of older people and people with poor IT skills and access to deliver greater peace of mind in everyday life.
Proof-of-Concept for MaaS in Okinawa
In Okinawa, car use by local residents and car rental by tourists are both high, while use of public transportation is only about 4% compared with the national average of about 30%. Consequently, the impact of local and tourist traffic has become an issue requiring attention.
In fiscal 2020, TIS ran a proof-of-concept experiment for MaaS—Mobility as a Service—using public transportation for tourists in the Yaeyama district of Okinawa Prefecture. In addition, in fiscal 2021, the scope of this experiment will be expanded beyond Yaeyama, promoting use of MaaS by tourists all over Okinawa and residents in some areas of the prefecture. The experiment has been selected by Japan’s Ministry of Land, Infrastructure, Transport and Tourism under an initiative called “Project for Promoting and Supporting Japanese MaaS.”
All participants in this project seek to boost the use of public transportation by making it more convenient and to utilize data to seamlessly connect multiple modes of transportation as well as diverse services, including commercial and tourist-related services.
Start of joint proof-of-concept experiments at stores for distributed energy resource generation
Since February 2020, in cooperation with Kansai Electric Power Co., Inc., TIS has been conducting a series of proof-of-concept experiments at stores to employ distributed energy resources (DER) – small-scale electricity generation and use at source. These facilities will use solar panels to harness a renewable energy source and batteries for energy storage. Solar power generation doesn’t emit CO2, but the amount of power generated by solar panels depends on the weather. By installing storage batteries together with solar panels, excess power can be stored when there is a large amount of power generation and used as needed. This project aims to demonstrate the value of distributed energy resources and maximize the effi ciency of energy management, in the process contributing directly to a low-carbon society as well as to business continuity planning (BCP).