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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 Partner Companies

Nishimatsu Construction Co., Ltd.

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

INTERVIEWEE

  • Mr. Tomonori Masuda, General Manager, DX Planning Department, 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 primarily focused on civil engineering projects such as tunnels and dams, as well as building construction including 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. One of the foundations supporting this digital transformation is the development of a data utilization infrastructure. We spoke with Tomonori Masuda, General Manager of the DX Planning Department, whose mission is the practice of data utilization, the democratization of data utilization, and the transformation to data-driven management.

  • Challenges Before Implementation

    • We wanted to implement an MDM solution to integrate data from siloed systems from a company-wide perspective and create a management data analysis infrastructure. It was necessary to cleanse and integrate client data, which is one of our master data sets, using reliable external data.
  • Reasons for Implementation

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

    • Client data has reached a level of granularity and freshness that allows for effective utilization.
    • LBC offers value that goes beyond mere operational efficiency, such as data entry and data cleansing.

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Challenges Before Implementation

We are convinced that the key to corporate growth lies in building a data utilization infrastructure and implementing MDM. However, we face two major hurdles: data silos and the challenge of persuading management.

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

Especially in large enterprises, 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 MDM (Master Data Management). 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 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 severely hindered the speed of management decision-making.

Consequently, I proposed the creation of 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 by department, and even when we collected data, the granularity and accuracy were inconsistent, leaving it in a state that was far from ready for analysis. Therefore, preparatory tasks such as data cleansing before analysis were extremely laborious.

For example, when trying to aggregate data for a specific project using 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 Infrastructure" to break through the siloed data situation and proposed it to the company.

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

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. When explaining 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 fundamental aspects, such as what data and information are, and how the information required varies depending on one's position, such as information necessary for management versus information necessary for daily operations, to advocate for the necessity of data. As a result, the Head of the President's Office showed understanding and supported the initiative to prioritize infrastructure development when explaining it to the President.

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

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

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

Nishimatsu Construction Co., Ltd. MDM Concept.jpg

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) (see figure).

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

Benefits of Implementation

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

Tomonori Masuda, General Manager of DX Planning Department, DX Strategy Office, Nishimatsu Construction Co., Ltd.
Company conference room in Toranomon, Tokyo

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Tomonori Masuda, General Manager of the DX Planning Department, DX Strategy Office, Nishimatsu Construction Co., Ltd.
Company Conference Room in Toranomon, Tokyo

We understand that while uSonar was introduced as part of the data infrastructure development initiative, you sought approval from the management team rather than focusing solely on cost-effectiveness.

Masuda

To begin with, our philosophy is that data infrastructure development 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 justify the data infrastructure project to management based solely on cost-effectiveness. I persuaded them by explaining that by integrating with uSonar data, we could establish a 'Golden Record' (the true master data) for our client information, which would then enable us to advance our data utilization.

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

Masuda

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

It is said that the introduction of uSonar has led to significant improvements in operational efficiency compared to the past.

Masuda

Although we have not measured the quantitative effects, we are now able to retrieve 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 is proving useful for making proposals, decisions, and establishing management policies. I consider this a necessary expense for maintaining, updating, and ensuring the accuracy of our corporate data.

Future Outlook

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

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Tomonori Masuda, General Manager of DX Planning, DX Strategy Office, Nishimatsu Construction Co., Ltd.
Company Conference Room in Toranomon, Tokyo

Since the launch of the data utilization platform, employee awareness regarding data is changing, though there is a recognized need for further updates to the foundation.

Masuda

What I discovered through interviews was that when someone wanted to perform an analysis, they didn't know where the data was. I realized that I was not the only one struggling; in fact, everyone was struggling. Since the introduction of the data utilization platform has made data accessible, I believe the mindset has shifted to "If that is the case, let's use the data." 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 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 to make it immediately usable for business operations. To elevate the data to a level suitable for business, 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 utilized within our business systems.

Our data utilization platform has only just begun, but we have received inquiries from various companies, including other general contractors, saying, "We want to work on MDM, so please teach us how," which makes me feel that our efforts are somewhat pioneering. Moving forward, I want to continue taking on challenges in cooperation with 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 be struggling to gain management approval due to debates over initial ROI. In an era where data is so critical, it is necessary to view it as a necessary expense and a strategic investment from the perspective of protecting the company's valuable assets. More importantly, it is vital to use the organized data to promote DX and generate results. We are still in the early stages ourselves. Let's work hard together.

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

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