Driving the IT and Digital Transformation of the Global Container Liner Shipping Industry from Nagasaki

Ocean Network Express (ONE), established in Singapore in 2017 by integrating the container liner businesses of three major shipping companies. ONE DEJIMA, which supports ONE’s core operations from Nagasaki, is strengthening its recruitment of “IT Consultants” to drive the execution of ONE’s IT and digital strategy. We interviewed the head of ONE’s IT division and the CEO of ONE DEJIMA about the future they aim to create through this IT and digital strategy, and why Japan’s Integrated IT Talent is key to this transformation.

Shouldering the core operations of the world’s 6th largest shipping company in Nagasaki

Executive Vice President, BPIT & Strategy and Innovation, C&I Division, Ocean Network Express Holdings, Ltd., Kosuke Wada (Right)
Representative Director and President, ONE DEJIMA Co., Ltd., Naoto Toyama (Left)

First, could you tell us about ONE’s business?

Wada: ONE is an international shipping company established by integrating the container liner businesses of NYK Line, Mitsui O.S.K. Lines, and “K” Line. We are headquartered in Singapore, a vital East-West hub for maritime transport, not only to serve domestic Japanese customers but also to support Japanese companies expanding overseas and cover cargo movements that do not transit through Japan.

In order to secure vessel capacity in this highly competitive industry, expansion of the network for container ships deployment is the key-point. The integration of the three companies has allowed us to cover many more routes, growing our vessel capacity to the 6th largest in the world today.

How does ONE DEJIMA support ONE’s business?

Toyama: ONE DEJIMA is a “regional-born global KPO company”* based in Nagasaki, that handles various core operations for ONE; including HR, accounting, market research, and shipping-specific tasks.

Looking ahead to 2030, ONE has announced plans to further increase vessel capacity, work on environmental considerations, and pursue an IT and digital strategy. This IT and digital strategy is broad, encompassing the digitalization of business needs, the introduction of digital tools, and data-driven management decisions. ONE DEJIMA will be responsible for executing those works.

The planning and execution of these strategies are driven by people. Human resources that act as the core for this strategy, are indispensable for ONE’s business expansion. This is why we are accelerating our recruitment efforts.

*KPO: Abbreviation for Knowledge Process Outsourcing, which means “outsourcing of intellectual production activities”. The tasks usually require a high level of knowledge and expertise, such as market research and data analysis.

IT and Digital are Essential for Taking the Lead in the Container Shipping Industry

Mr. Wada, as you are driving ONE’s IT and digital strategy, could you explain why ONE is focusing on IT and digital?

Wada: To compete with rivals who possess greater vessel capacity, we must constantly improve operational efficiency. At ONE, we position IT and digital as the primary means to achieve this. For example, in the container shipping business, we must know the real-time location of every single container carrying cargo entrusted to us, and yet the sheer volume of this data is massive. Therefore,  in order to perform these tasks efficiently, IT and digital solutions are really indispensable.

Could you tell us about ONE’s current IT and digital strategy?

Wada: In addition to the internal operational optimization I just mentioned, we also aim to improve the customer experience by creating systems that are user-friendly. A major challenge in the container shipping industry is the significant delay in digitalization.

Traditionally, sales involved painstaking methods such as representatives visiting customers to take cargo orders or handling inquiries via phone. However, as global cargo volume increases, manual response is becoming difficult, making automation of the end-to-end process (from order placement to delivery) a key challenge. Although our business is B2B, we aim to differentiate ourselves by creating systems that are as user-friendly for customers as those seen in B2C transactions.

What specific initiatives are you promoting?

Wada: As an example of automating the process from order placement to delivery, we have replaced requests previously handled via phone or fax with a web-based system.

Our customers in the container shipping business range from large to small enterprises. Historically, many carriers assigned sales representatives to handle and care for large clients with high volume, but often could not fully support small and medium-sized enterprises (SMEs) with lower volume. By automating the order placement process via the web, we have made it easier for SMEs to contact the carrier, allowing us to take on even more cargo. In this way, we will increasingly contribute to the growth of SMEs, which is a key social challenge in Japan.

Since other companies are also advancing IT and digital solutions, we need to differentiate ourselves by developing even much more user-friendly applications and simplifying the processes seen from a customer’s perspective. When we ask customers about their on-site challenges, many ideas emerge. We consolidate these diverse opinions, then design our systems while exploring the most optimal solutions and aiming for excellent user experience.

Moreover, to achieve speedy system development, we have established offshore development centers named “ONE Tech Stop” in Singapore, South Korea, and Vietnam. By creating a dedicated development organization within the group, we are driving and executing an IT and digital strategy that can respond to our constantly changing business needs.

Becoming the Trailblazer for IT and Digitalization in the Paper-Based Container Shipping Industry

Please share your outlook for ONE and ONE DEJIMA once the IT and digital strategy is fully realized.

Wada: The container shipping industry has a deeply rooted paper culture, and digitalization has not yet fully penetrated into the industry. For example, Bills of Lading (B/L), which prove a contract of carriage between the shipper and the carrier, must be issued in three original copies, and all three must be presented with the cargo to unload it. While digitalization (electronic B/L) is finally making progress, we are still compelled to use paper if the destination requires it. ONE intends to be a pioneer in changing this situation and the industry itself, by promoting its IT and digital strategy.

Specifically, we will first reform our core systems to prepare for business expansion. We will also work on realizing business ideas using digital solutions. While advancing these initiatives, we plan to establish an in-house system development structure that can swiftly respond to business transformation and new challenges.

Toyama: With the knowledge about the strategy promoted by ONE’s IT department, ONE DEJIMA aims to give our support from a business perspective and serve as a driving force for its business transformation.

Furthermore, as a member of the ONE Group, we are constantly expected to take on new challenges. We want to offer the IT and digital solutions gained from ONE’s IT and digital transformation to local customers in Nagasaki. We especially want to deploy this to support the Digital Transformation (DX) of SMEs, thereby contributing to their growth.

ONE DEJIMA is recruiting “IT Consultants” to be the drivers for this IT and digital strategy. Actually, what will their responsibilities be?

Wada: We expect them to serve as a bridge connecting the managers of business-side processes at ONE’s Singapore Headquarters, the developers in Vietnam and South Korea, and our external IT partners, to drive projects forward. They will also be participating in ONE’s core system renewal project.

Toyama: When handling work for ONE’s Singapore Headquarters, ONE DEJIMA visualizes and analyzes business processes for improvement, as well as leverages expertise and technology to enhance its efficiency. Our goal is to subsequently bring this newly created value back to ONE, hence contributing to its further business expansion.

On the other hand, we are also driving the digitalization of ONE DEJIMA’s own operations, not just ONE’s operations. We recently introduced an AI assistant. If we can establish a new, digital-driven business process like that here at ONE DEJIMA, we can present the method and tool to ONE. As a “Dejima organization” spun off from the main company, ONE, we aim to leverage our small size, which grants us speed and flexibility, to spearhead new initiatives.

The Global Potential of “Integrated IT Talent” with Expertise in Both Business and Technology

What kind of talent are you looking for?

Wada: Looking at IT talent globally, a division of labor is often adopted, where “PMs are PMs, and developers are developers.” However, in Japan, we can see “integrated IT professionals” (“IT 総合人財”) that take on broad range of responsibilities ranging from business-side operations to system development, are the ones thriving. As we are enhancing our competitiveness in a container liner shipping industry where IT and digital solutions have not fully matured, I believe that these Japan Integrated IT Professionals, who have expertise in both business and technology, will really be a strength for ONE’s IT and digital strategy. We are eager to welcome talent with a broad understanding of IT who can bridge the gap with the business side.

Toyama: For example, during a consultation session with the accounting department, a driving-force that can understand accounting operations, visualize the specific system required, explain the tasks to the developers, and ensure implementation, is very essential. Therefore, we ideally are looking for candidates who have experience supporting a business operation closely through the entire cycle from requirements definition (RD) to system implementation and operation.

What is the appeal of working as an IT Consultant at ONE DEJIMA?

Toyama: The appeal is being involved in dynamic, global-scale operations as you will act as a key player in ONE’s expansive worldwide digital strategy. Looking back on my own experience, I feel I’ve gained the ability to drive projects forward by anticipating the future and engaging users and various business departments, as well as the ability to manage a wide range of stakeholders.

Furthermore, the career paths are diverse. Once management skills are acquired, opportunities open up to work not only at ONE DEJIMA but also at ONE’s headquarters in Singapore or the offshore development centers abroad. There’s also the chance to grasp the essence of digitalization through your work and evolve it into services offered externally.

Wada: Precisely because this is an industry where digitalization efforts are still maturing, I believe there is a huge “treasure trove” of opportunities. Our company culture actively encourages various challenges, so we sincerely invite anyone who wishes to acquire advanced skills and contribute to society on a global stage to apply.