Medium-Term Business Plan
Fiscal Year 2021 to Fiscal Year 2023 〈Feb. 2022 announced〉
Please click here for Hakuhodo DY group’s revised Medium-Term Business plan (MTBP) covering the three-year period from FY2021 to FY2023.
※Hakuhodo DY group reassessed the MTBP which was made public in May 2019 due to the impact of COVID-19, and announced a revised MTBP in February 2022.
Understanding of the Business Environment
Rapidly Changing External Environment Due to the Shift to Complete Digitalization
Progressing shift to complete digitalized lifestyles and rapid external environment changes resulting from the pandemic
Rapid popularization of online services, leading to a swift transition toward constantly connected lifestyles
Sudden emergence of new services and markets that transcend industrial boundaries, thereby gradually redefining the frameworks of industries
Expansion of the Sei-katsu-sha Interface Market
A world in which various things are connected to the internet has become a reality. As a result, the relationship between things and Sei-katsu-sha has evolved into an interface for the mutual exchange of information, rather than a simple contact point.
Objects around Sei-katsu-sha are now linked with the internet and have become digital touchpoints. Drawing on the data these touchpoints provide, we are now able to provide services that are optimized for each individual Sei-katsu-sha
New lifestyles have emerged at the boundary lines between people and things, turning the world into a place where new markets are created
The acceleration of digitalization brought about by the COVID-19 pandemic has expanded these new markets at a much faster rate than expected
Expansion from Indirect Touchpoints to Direct Touchpoints
As the Sei-katsu-sha Interface Market expands, the marketing needs of clients are changing
The connection between clients and Sei-katsu-sha has expanded from just indirect touchpoints, such as advertising, to include direct touchpoints, such as stores and e-commerce websites. This has created an environment where overall connection needs to be managed in an integrated manner using data
Direction of the MTBP Revisions
Positioning of the MTBP Revisions
We have positioned FY2021 to FY2023 as a period in which we accelerate transformation of our services and business foundation to lead with solutions to clients’ marketing and innovation-related challenges and realize sustainable growth for our clients and the Group
While continuing to implement our Core Medium-Term Strategy, we will undertake the following initiatives and update our Group as a whole:
1.Transform the Services We Provide
Evolve Sei-katsu-sha Data-Driven Marketing, with which we have led the way, to enable it to be implemented across the full funnel
(1)Expand marketing execution domains
As the Sei-katsu-sha Interface Market expands, it is essential that we expand our functions in marketing execution domains
We are pressed with the urgent task of strengthening our ability to carry out integrated management in a more neutral and sophisticated manner, based on our Sei-katsu-sha data and fundamental technologies
Although we have improved profitability by implementing in-house advertising production, beyond the advertising domain, we have enhanced functions that support the implementation of marketing activities in anticipation of changes in companies’ marketing needs
In terms of marketing overall, we are implementing a strategy that ensures the provision of swift, high-quality services and a high level of profitability by maintaining both strategic planning and execution functions within the Group.
Going beyond solving companies’ challenges, we will contribute to solving social issues as well, including responding to the COVID-19 pandemic
(2)Transform media business
Focusing on transforming our business through Advertising as a Service (AaaS), we will maintain and expand existing business by increasing the added value of media
Within the Group, we will establish an ecosystem for providing digital services that cater to the growth of clients. We also aim to strengthen business for regional/small- and medium-sized businesses (SMBs) and startups and expand digital business, including the long tail market
(3)Promote Sei-katsu-sha insight-based digital transformation (DX)
The Group’s DX operations aim to transform companies’ marketing activities and their businesses themselves with a focus on Sei-katsu-sha. In addition, these operations aim to transform society as a whole
2.Strengthen Cross-Organizational Functions to Accelerate Transformation
To accelerate transformation, we are moving forward with efforts to enhance three new cross-organizational functions, as well as our existing media functions. By doing so, we will transition to management that further emphasizes Groupwide optimization
We will start our efforts to strengthen cross-organizational functions in Japan, and expect to roll out these efforts overseas in the future
Establishment of New Technology Company
We will establish a new technology company as a part of our Group shared infrastructure with the aim of evolving ourselves into a more technology-driven corporate group
In addition to consolidating resources scattered across the Group, this new technology company will serve as a specialized functional company that will ensure a human resource management system that meets the needs of engineers and strengthen the recruitment and development of expert personnel from outside the organization
3.Continuously Pursue Transformation based on Existing Strategies
(1)Strengthen Response Capabilities for Borderless Corporate Activities
We will actively invest overseas, which is a growth market, as we continue to strengthen our overseas business based on three elements (listed below)
Also, we will reinforce the link between the functions of our international network and the specialization and innovation of kyu, and strengthen Hakuhodo DY Holdings’ Group strategic function, which implements overseas business expansion on a Groupwide basis
(2)Accelerate Innovation through External Collaborations
We will expand our collaborative foundation that links the Group with our business partners and startups, working to create synergies among the strengths all three parties possess. By doing so, we will accelerate innovation of the services we provide and internal innovation
We will undertake new business development based on the combination of creativity and technology in order to provide new value to Sei-katsu-sha. These efforts will include the development of new business in the Sei-katsu-sha Interface Market and the creation of businesses that benefit society.
4.Strengthen our Foundation for Sustainable Business Management
Guided by a circular value creation model, we will aim to realize our sustainability goal
We expect to reinforce the function of Hakuhodo DY Holdings with a view to implementing our sustainability efforts