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Construction DX Master Data Management

Nishimatsu Construction Advances DX Through MDM Implementation, Adopting uSonar as a Company-Wide Data Utilization Platform

Evaluating Comprehensive Coverage from Government Agencies to Regional Partner Companies

Nishimatsu Construction Co., Ltd.

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

INTERVIEWEE

  • Mr. Tomonori Masuda, General Manager of DX Planning, DX Strategy Office

Nishimatsu Construction Co., Ltd. is a semi-major general contractor engaged in civil engineering, building construction, asset value-added business, and regional environmental solution business. With a long history spanning 150 years, the company has focused on construction projects such as civil engineering for tunnels and dams, and building construction for office buildings and warehouses. In recent years, in addition to its asset value-added business (development and real estate), it has also expanded into environmental energy fields such as biomass and geothermal power generation. To realize the Nishimatsu-Vision 2030 announced this year, the company is pursuing digital transformation, and one of the foundations supporting this DX is the development of a data utilization infrastructure. We spoke with Mr. Tomonori Masuda, General Manager of DX Planning at the DX Strategy Office, whose mission is the "practice of data utilization, democratization of data utilization, and transformation to data-driven management."

  • Challenges Before Implementation

    • To integrate siloed data from various systems from a company-wide perspective and build a management data analysis infrastructure, we needed to implement an MDM. It was necessary to cleanse and integrate client data, which is one of our master data sets, using reliable external data.
  • Reasons for Selection

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

    • Client Data Has Reached a Level of Granularity and Freshness That Enables Effective Utilization
    • LBC Offers Value Beyond Just Improving Operational Efficiency Through Data Entry and Cleansing

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Challenges Before Implementation

We were convinced that building a data utilization infrastructure and implementing MDM were the keys to corporate growth. However, we faced two major obstacles: data silos and the challenge of persuading management...

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Tomonori Masuda, General Manager of DX Planning, 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 and managing this data 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 infrastructure and MDM at Nishimatsu Construction. What was the origin of this vision?

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 would frequently ask me to analyze various operational data, but the source data for these analyses was not readily available and was scattered across different 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 initiative 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 across departments, and even when data was collected, the granularity and accuracy were inconsistent, leaving it in a state that was far from ready for analysis. Consequently, preparatory tasks such as data cleansing before analysis were extremely laborious.

For example, when attempting to aggregate data for a specific property using a single metric, the coding systems differed by department and system. Even in cases where a client and a supplier were the same company, the data was not linked, making it impossible to visualize the relationship. Conducting effective data analysis was extremely difficult.

Based on the sense of crisis you experienced firsthand, you formulated a concept for a common 'Data Utilization Platform' to break down data silos and proposed it to the company, correct?

Many companies likely share similar concerns and challenges, but persuading internal stakeholders requires significant time and effort. How did you go about increasing the number of supporters?

Masuda

First, I recognized that 'data' varies depending on the situation, the type of data needed, and the required speed. I also understood that data utilization involves distinct steps. I mapped out these steps alongside our company's current status and ultimately outlined our target direction and roadmap. When presenting to the management team, I first presented to all members of the President's Office, including my then-supervisor, the Head of the President's Office, explaining that DX requires the development of three pillars: data, human resources, and organizational structure.

Regarding the importance of data in particular, I spoke from fundamental principles, such as what data and information are, and how the information required for management differs from the information required 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 the initiative to the President.

For the implementation, we first conducted interviews with each department regarding their data-related pain points. We then began by identifying where data was located within the company (As-Is), considered a model for data retention (To-Be) (Figure), and designed the architecture.

■ Model diagram of the data utilization platform design at Nishimatsu Construction. 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 (matching and cleansing) siloed data while specifically considering the data utilization platform?

Masuda

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

■ Data Cleansing and Deduplication for the Data Utilization Platform Using uSonar LBC Codes

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Results of Implementation

Establishing Reliable Golden Records with uSonar: Value Beyond Operational Efficiency to Support Management Decision-Making

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

I understand that when uSonar was introduced as part of the data utilization platform development, you sought approval from management without focusing solely on cost-effectiveness.

Masuda

To begin with, the perspective was that data infrastructure development itself is a proactive investment. Since the return on investment depends on how the developed infrastructure is utilized, I believed from the start that it would be difficult to convince management by explaining the data utilization platform project solely through the lens of cost-effectiveness. I persuaded them by explaining that by integrating with uSonar data, we could establish 'Golden Records' (the definitive master data) for our business partners, which would then enable further data utilization.

It seems that the implementation of uSonar itself proceeded smoothly within the schedule for building the data utilization platform.

Masuda

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

They report that the implementation of uSonar has resulted in significant improvements in operational efficiency compared to previous methods.

Masuda

While we have not measured the quantitative impact, we are now able to access data smoothly whenever needed. Furthermore, we feel that value beyond mere operational efficiency is being created, such as the ability to visualize and analyze data from new perspectives. Specifically, it has become easier to perform data analysis and extraction using diverse aggregation axes, such as by individual client or client group, which aids in making proposals, decisions, and establishing management policies. I consider this a necessary investment for the maintenance, modernization, and accuracy of our corporate data.

Future Outlook

Internal Mindset Shift Toward "Let's Use Data"
Building a Foundation for Data Utilization Is a Strategic Investment
Move Forward Without Getting Trapped in Discussions About Short-Term ROI

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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

With the data utilization platform now operational, employee awareness regarding data is beginning to change, though there is also a recognized need for further updates to the foundation.

Masuda

What I learned through interviews was that I was not the only one struggling with not knowing where data was located when I wanted to perform an analysis; in fact, everyone was struggling. Since the introduction of the data utilization platform has enabled us to provide data, the mindset has shifted to "Let's use data." I feel that the accuracy of our discussions has improved because we are now able to collect and analyze internal data more comprehensively than before.

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

Our data utilization platform has only just begun, but we have received inquiries from various companies, including other general contractors, asking, "We want to work on MDM, so please teach us how," which makes me feel that our efforts are somewhat advanced. Moving forward, I hope to continue taking on challenges in cooperation with our partners, including uSonar, to ensure the success of our data utilization and, ultimately, our DX initiatives.

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

Masuda

Data is essential for DX. Some may struggle to gain management approval due to discussions regarding the return on investment during implementation. In an era where data is of paramount importance, it is necessary to view it as a vital expense and a strategic upfront investment to protect the company's valuable assets. More importantly, it is crucial to leverage organized data to drive DX and achieve tangible results. We are also still in the process of evolving. Let us work together to succeed.

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

Article Published: December 11, 2023

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