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Construction DX, Master Data Management

Nishimatsu Construction Advances DX Through MDM Implementation, Adopts uSonar as the Foundation for Company-Wide Data Utilization

Valued for Its Comprehensive Coverage, From Government Agencies to Local Partners

Nishimatsu Construction Co., Ltd.

Construction & Engineering, Real Estate & Housing, General Retail, Specialized Corporate Support Services

INTERVIEWEE

  • Tomonori Masuda, General Manager, DX Planning Department, DX Strategy Office

Nishimatsu Construction Co., Ltd. is a major general contractor engaged in civil engineering, building construction, asset value-added business, and regional environmental solution services. With a 150-year history, the company has focused on construction projects such as tunnels, dams, office buildings, and warehouses. In recent years, it has expanded into the asset value-added (development and real estate) business, as well as environmental energy fields including biomass and geothermal power generation. To realize the Nishimatsu-Vision 2030 announced this year, the company is actively pursuing DX, with the development of a data utilization platform serving as a key foundation. We spoke with Tomonori Masuda, General Manager of the DX Planning Department in the DX Strategy Office, whose mission is to "practice data utilization, democratize data usage, and transform into data-driven management."

  • Challenges Before Implementation

    • We aimed to implement an MDM solution to integrate siloed system data from a company-wide perspective and establish a foundation for management data analysis. It was necessary to cleanse and integrate our customer master data using reliable external data sources.
  • Reasons for Selection

    • An overwhelming volume of 8.2 million records, including branches and regional offices.
    • Comprehensive coverage ranging from government department levels to local partner companies.
  • Results Achieved

    • Customer data has reached a level of granularity and freshness that enables effective utilization.
    • LBC offers value that extends beyond mere operational efficiency in data entry and cleansing.

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Challenges Before Implementation

We were convinced that building a data utilization foundation and implementing MDM were the keys to our company's growth. However, we faced two major obstacles: data silos and the challenge of persuading our management team.

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Tomonori Masuda, General Manager of the DX Planning Department, DX Strategy Office, Nishimatsu Construction Co., Ltd.

In large enterprises especially, master databases are often fragmented by department or business function, leading to data silos. Integrating these datasets for company-wide analysis and utilization is known as Master Data Management (MDM). Mr. Masuda has long advocated for the necessity of a data utilization platform and MDM at Nishimatsu Construction. What was the origin of this initiative?

Masuda

I come from an accounting background, and my involvement with company-wide data began when I transferred to the Corporate Planning Department in 2013. Management frequently requested analysis of various operational data, but the data required for analysis was not readily available and was scattered across various departments. It took a significant amount of time to request and collect data from each department, and I realized that this was a critical issue that hindered the speed of management decision-making.

Consequently, I proposed the need for a specialized department to examine ICT strategy and determine how to organize data and systems company-wide. As a result, I was transferred to lead this effort myself. Since then, every time I have proposed initiatives such as data utilization or DX promotion, I have ended up taking charge of them myself (laughs).

What was the state of the data within the company?

Masuda

Data management methods varied by department, and even when data was collected, the granularity and accuracy were inconsistent, meaning it was not in a state suitable for analysis. Therefore, preparatory tasks such as data cleansing prior to analysis were extremely laborious.

For example, when attempting to aggregate data for a specific project based on a single axis, the coding systems differed depending on the department or system. Even in cases where a client and a supplier were the same company, the data was not linked, making it impossible to see the relationship. Conducting effective data analysis was extremely difficult.

Based on the sense of crisis you experienced firsthand, you developed a concept for a common Data Utilization Platform to break through the situation of siloed data and proposed it to the company, correct?

I believe many companies share similar concerns and challenges, but persuading internal stakeholders requires a considerable amount of time and effort. How did you go about increasing the number of supporters?

Masuda

First, regarding data, I realized that there are different stages to data utilization, such as what kind of data is needed, in what situations, and at what speed. Therefore, I presented these stages along with our company's current status, and finally, I outlined our future direction and roadmap. To explain this to the management team, I first gave a presentation to all members of the President's Office, including my then-supervisor, the Head of the President's Office, stating that DX requires the development of three key areas: data, human resources, and organizational structure.

Regarding the importance of data in particular, I started from the fundamentals, such as defining what data and information are, and explaining the differences in information requirements depending on one's position, such as information needed for management versus information needed for daily operations, to advocate for the necessity of data. This led the Head of the President's Office to show understanding and support the prioritization of infrastructure development when explaining it to the President.

For the implementation, we first conducted interviews with each department regarding their data-related challenges. We began by identifying where and what data existed within the company (As-Is), considered a model for data retention (To-Be) (Figure), and proceeded to design the architecture.

■ Model diagram of the data utilization infrastructure design at Nishimatsu Construction Co., Ltd. The top shows the current state (As-Is), and the bottom shows the target state (To-Be).

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I would like to ask about your relationship with uSonar. Did you realize the importance of integrating (data cleansing and matching) siloed data while specifically considering the data utilization infrastructure?

Masuda

In our common data utilization infrastructure, it was necessary to organize client, employee, and construction data as master data. Among these, for client data, it was necessary to connect the client data held by each system using a unified code system and perform data cleansing and matching to ensure accurate and reliable data. That is why we decided to consider the introduction of uSonar (LBC code) (Figure).

■ The client master for the data utilization infrastructure was cleansed and matched using uSonar's LBC code.

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Results of Implementation

Development of a highly reliable "Golden Record" through uSonar: Value beyond operational efficiency, such as supporting management decision-making.

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Tomonori Masuda, General Manager of the DX Planning Department, DX Strategy Office, Nishimatsu Construction Co., Ltd.
At the company's conference room in Toranomon, Tokyo.

I heard that although uSonar was introduced as part of the data utilization infrastructure development, you sought a decision from the management team without being fixated on cost-effectiveness.

Masuda

To begin with, the perspective is that establishing a data infrastructure is an upfront investment. Since the return on investment depends on how the established infrastructure is utilized, I believed from the start that it would be difficult to explain and gain management's approval for a data utilization infrastructure project solely from the perspective of cost-effectiveness. I persuaded them by explaining that by integrating with uSonar data, a 'Golden Record' (true master data) for client data would be established, which would then enable the advancement of data utilization.

It seems that the implementation of uSonar itself was completed smoothly within the schedule for building the data utilization infrastructure.

Masuda

Building the data utilization infrastructure itself took about 10 months, but the uSonar implementation portion was completed in just over two months, excluding the data cleansing process. I believe it was very smooth because you checked requirements in advance and responded flexibly to our progress.

It is said that with the introduction of uSonar, you are experiencing significant operational efficiency compared to before.

Masuda

Although we have not measured the quantitative effects, I feel that value beyond operational efficiency is being created, such as being able to retrieve data smoothly when needed and being able to visualize and analyze data from new perspectives. Specifically, it has become easy to perform data analysis and extraction using diverse aggregation axes, such as by individual client or by client group, which is useful when making proposals, decisions, and establishing management policies. I consider it a necessary expense for maintaining, updating, and ensuring the accuracy of corporate data.

Future Outlook

Internal Awareness Shifted Toward 'Let's Use Data'
Building a Data Utilization Infrastructure Is an Upfront Investment
Move Forward Without Getting Trapped in Discussions About Short-Term Cost-Effectiveness

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Tomonori Masuda, General Manager of the DX Planning Department, DX Strategy Office, Nishimatsu Construction Co., Ltd.
At the company's conference room in Toranomon, Tokyo

The data utilization platform has been launched, and while employee awareness regarding data is beginning to shift, there is a recognized need for further updates to the infrastructure.

Masuda

What I discovered during our interviews was that I was not the only one struggling to locate data when I needed to perform an analysis; in fact, everyone was facing the same issue. With the introduction of the data utilization platform, we are now able to provide data, which has shifted the mindset toward, "If the data is available, let's use it." I feel that because we are now able to collect and analyze internal data more comprehensively than before, the accuracy of our discussions has improved.

However, regarding our client master data, while it has reached a level where we can match, consolidate, and utilize it, I feel there is a need for further refinement to make it immediately actionable for business operations. To elevate the data to a level suitable for business use, we must not simply match and cleanse it, but rather assign LBCs at the time of client master registration to organize the information. We have already begun this process in some areas, and once fully implemented, I believe it will become data that can be utilized within our business systems.

Although our data utilization platform has only just begun, we have received inquiries from various companies, including other general contractors, asking, "We want to work on MDM as well, so please teach us how." This makes me feel that we are making some progress with advanced initiatives. Moving forward, I hope to continue taking on challenges in cooperation with our partners, including uSonar, to achieve success in data utilization and, ultimately, DX.

Please provide a message of encouragement to those responsible for driving DX within their companies.

Masuda

Data is essential for DX. Some may be struggling to gain management's understanding during discussions regarding the cost-effectiveness of implementation. In this era where data is of paramount importance, it is necessary to view these costs as essential expenses and upfront investments from the perspective of protecting the company's valuable assets. More importantly, it is crucial to promote DX and generate results using the data you have organized. We are also still in the early stages. Let's work hard together.

*Our service and feature names are current as of the time of the interview.

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