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Construction DX and Master Data Management

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

Evaluating the Comprehensive Coverage from Government Agencies to Local Partner Companies

Nishimatsu Construction Co., Ltd.

Construction and Engineering, Real Estate and Housing, General Retail, Corporate Support 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 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 Engaging in DX, 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 the DX Planning Department in 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

    • We wanted to implement an MDM to integrate data from siloed systems from a company-wide perspective and build 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 Selection

    • 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 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 Keys to Corporate Growth. However, We Faced Two Major Obstacles: Data Silos and the Need to Persuade Management.

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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 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 conviction?

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 such analysis 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 keenly felt that this was a critical situation that hindered the speed of management decision-making.

Therefore, I proposed the need for a specialized department to examine ICT strategy and determine how to organize data and systems company-wide, which resulted in me being transferred to lead that 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 differed and the accuracy was poor, meaning it was not in a state suitable for analysis. Consequently, preparatory tasks such as data cleansing before analysis were extremely laborious.

For example, even when attempting to aggregate data for a specific property using a single axis, the coding systems differed by department and system. Even in cases where a customer 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 formulated a concept for a common 'Data Utilization Platform' to break through the situation where data was siloed, and proposed it to the company, correct?

I believe many companies share similar senses of crisis and challenges, but persuading internal stakeholders requires a significant amount of time and effort. How did you go about increasing the number of people who understood your vision?

Masuda

First, I thought about what kind of data is needed, in what situations, and at what speed. I also realized that 'data utilization' has various stages, so I presented those stages alongside our company's current status, and finally, I outlined the direction we should aim for and a roadmap. When explaining this to the management team, I first gave a presentation to all members of the President's Office, including the then-Head of the President's Office, stating 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 the differences in information required depending on one's position—such as information necessary for management versus information necessary for operations—to advocate for the necessity of data. As a result, the Head of the President's Office showed understanding and supported 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 pain points. We then began the process of 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 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 siloed data (data cleansing and matching) while specifically considering the data utilization platform?

Masuda

For a common data utilization platform, it was necessary to maintain data on business partners, employees, and construction projects as master data. Among these, for business partners, it was necessary to connect the business partner data held by each system using a unified coding 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).

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

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Results of Implementation

Establishing Highly Reliable Golden Records with uSonar: Value Beyond Operational Efficiency, Including Support for 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 while 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 idea is that data infrastructure development itself is an upfront investment. Since whether cost-effectiveness is achieved depends on how the developed infrastructure is utilized, I believed from the start that it would be difficult to explain and convince management of the project based solely on cost-effectiveness. I persuaded them by explaining that by integrating with uSonar data, Golden Records (the true master data) for client information would be established, thereby enabling the advancement of data utilization.

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

Masuda

The construction of 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 state that the implementation of uSonar has resulted in significant operational efficiency improvements compared to the past.

Masuda

While we have not measured the quantitative effects, we are now able to smoothly acquire data when 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 proposals, decision-making, 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 Data Utilization Foundation 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 foundation now operational, employee awareness regarding data is beginning to change, though he also feels the 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 foundation has made data accessible, I believe the mindset has shifted to "Then let's use the data." I feel that the accuracy of our discussions has improved because we are 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 bring the data to an operational level, we must not just match and cleanse it, but assign LBCs at the time of client master registration to maintain 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 company's data utilization foundation 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 want to continue taking on challenges in cooperation with partners, including uSonar, to ensure the success of our data utilization and, ultimately, our DX.

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's understanding when discussing the return on investment during implementation. In an era where data is so critical, it is necessary to consider it a necessary expense and a proactive investment from the perspective of protecting the company's valuable assets. More importantly, it is vital to utilize the organized data to drive DX and achieve results. We are also still in the process of growing. Let us work hard together.

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

Article Publication Date: December 11, 2023

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