Yokogawa Electric Corporation

Yukihiro Funyu, Senior Vice President and Chief Information Officer (CIO) at Yokogawa Electric, a leading Japanese multinational industrial automation vendor, stands at the vanguard of innovation in the managed IT and OT space. Charting a path forward, Funyu orchestrates the group's strategic development of novel business units and digital transformation strategies. This responsibility underscores his dedication to driving transformative initiatives and contributing to Yokogawa’s success.

Commencing his career as a business process analyst at NTT DATA, Funyu established a cutting-edge consulting service, distinguishing it by a cadre of data modelers dedicated to refining data warehouse operations at R&D. Later, he joined Softbank Finance, where he spearheaded the development of novel internet-based financial services. Funyu then transitioned to Sony, where he served in the CIO office, developing group IT strategy for optimal IT performance. Throughout his three-decade tenure as a leader in the information technology (IT) space, his expertise has substantially helped Yokogawa in its mission to enhance its operative technological exposition in a world of IT and OT (Operational Technology) convergence where the concept of digital enterprises is fast approaching, promising significant productivity enhancements through the automation of plant operations and comprehensive integration of corporate data.

As a keyword describing its activities, Funyu has adopted the Japanese word tsunagu, which means to connect and join together. It also involves the adoption of technologies such as artificial intelligence (AI) and machine learning (ML) and data-driven insights, particularly in managed IT services, which include infrastructure and security management roles. This initiative aims to standardize the firm’s infrastructure, security, and application data systems based on established standards, providing a foundation for future developments.

“The starting point of many digital transformations tends to be siloed operations over IT and business-related activities. That's why we are standardizing and optimizing IT and business operations globally as much as possible,” says Funyu.

Funyu has championed the adoption of cloud-sourcing and agile methodologies, leading to the initiation of a comprehensive digital overhaul—beginning with the standardization of IT operations to enhance Yokogawa’s efficiency (DX 1.0). This standardization laid the groundwork for a broader objective—optimizing business processes through advanced technological integration (DX 2.0).

“The starting point of many digital transformations tends to be siloed operations over IT and business-related activities. That's why we are standardizing and optimizing IT and business operations globally as much as possible.”

Under Funyu's leadership, Yokogawa prioritizes global process optimization. The company has established and commercialized a global security operations center (SOC) to provide comprehensive cyber security monitoring and to collect, process, and analyze logs and events from various IT and OT data sources and respond quickly in the cloud. The company has also integrated AI and ML, along with robotic process automation (RPA), to streamline routine tasks in for example its manufacturing facilities. This approach not only boosts efficiency but also promotes an innovative culture. The deployment of business analytics tools and the encouragement of employee engagement with standardized data have contributed to a 55 percent increase in automation rates.

Yokogawa's strategy extends beyond leveraging AI and ML as mere technological enhancements; these tools are vital to augmenting the workforce's capabilities to ensure automated functioning around the clock. In the advanced technology landscape, AI and ML serve as essential collaborative instruments, particularly in fostering interactions within the technology community.

As Funyu strives to boost group productivity through internal DX efforts, first, a significant aspect of his strategy involves the implementation of two enterprise data lakes to streamline data management and analytics across IT services in the cloud. The first data lake combines data from enterprise resource planning (ERP), customer relationship management (CRM), and supply chain management systems. In contrast, the second focuses on operational technology (OT) data from Yokogawa’s manufacturing facilities.

Funyu also underscores the importance of a human-centric approach to technology and sharing knowledge and best practices with customers and peers. “There is not a fixed methodology for enterprise digital transformation. Each journey is unique, presenting its own set of challenges. However, exchanging best practices and use cases collectively enhances our efforts toward adoption and improvement.” Funyu therefore initiates periodic community events with CIOs and CDOs of client companies in Japan and abroad, facilitating a platform for knowledge exchange and discussion on prevailing challenges. The firm aims to use this same collaborative mode overseas to promote information sharing and address common industry hurdles.

Yukihiro Funyu's leadership journey demonstrates his transformative impact in Yokogawa, steering the company through a significant digital metamorphosis. His strategic foresight and commitment to digital excellence have not only redefined the firm’s IT landscape but have also positioned it as a beacon of innovation and organizational success in the ever-evolving managed IT sector.