Meeting the 2050 carbon neutrality goal: Delta's solutions cater to Japan's market needs
"Japan is actively moving towards its goal of reaching Carbon Neutrality by 2050, a challenge that necessitates low-carbon transformations across all industries. In this evolving market landscape, Delta recognizes substantial opportunities across its diverse business categories." As Kengo pointed out at the CEATEC press conference in October, he shared the trends and business opportunities driving industry transformation in Japan. For instance, in the electric vehicle (EV) market, he highlighted the irreversible adoption of EVs in Japan and anticipated significant growth for Delta's Powertrain solutions and critical EV components. On the other hand, Japan is grappling with power shortages and the high cost of green energy. The government is actively investing in renewable energy, but it faces challenges with grid stability. "Energy storage systems offer a more cost-effective alternative to enhancing grid stability compared to overhauling the entire grid infrastructure," he noted.

In terms of societal challenges, Japan is facing labor shortages due to an aging population and declining birth rates. Additionally, factors such as geopolitical issues, yen depreciation, and government incentives encouraging companies to bring production back to Japan have created favorable conditions for upgrading the manufacturing industry. Delta's industrial automation technologies help businesses tackle labor shortages while facilitating a transition to more flexible and efficient smart manufacturing. In the field of building automation, there are around 9,000 small and medium-sized buildings in Tokyo alone that were built 20 to 30 years ago, and they no longer meet modern energy-saving and green energy standards. Delta is focused on helping these buildings improve energy efficiency and achieve energy savings and carbon reduction. Furthermore, Kengo anticipates that more buildings of this type will require upgrades. With the global rise of AI development, investments in Japan's data centers have also seen significant growth. The resulting challenges in energy consumption and heat dissipation present valuable business opportunities for Delta's solutions.

After detailing the market trends in each business category, Kengo confidently stated, "Our five Strategic Business Platforms (SBPs)—automotive, data centers, energy infrastructure, industrial automation, and building automation—are perfectly aligned with the future needs of the Japanese market. In Japan, Delta is the only company that spans all of these industries, and that is our biggest competitive advantage.
At the CEATEC press conference in October, Kengo shared the trends and business opportunities driving industry transformation in Japan.

Building the brand through small and medium-sized enterprises, enhancing competitiveness with one-stop services
Kengo further discussed the market challenges and the strategies NEA is adopting to address them. In Japan, every business category faces strong local competition. However, he sees clear opportunities in the ongoing transition to carbon neutrality. "Japan’s Tier 1 corporations are highly aware of ESG issues and are actively working on carbon reduction. But when it comes to Scope 3 emissions, many Tier 2 and Tier 3 small and medium-sized enterprises in the supply chain lack the necessary professional services and technical support. This is where we see a valuable opportunity!" NEA's short-term strategy focuses on targeting small and medium-sized enterprises to gradually build its market presence. Kengo shared that last year, Delta installed a solar PV power system and provided Power Purchase Agreements (PPA) services to medium sized enterprises in Hiroshima's automotive electronics supply chain. Competing against larger players, NEA gained customer trust with its professionalism and quick response, paving the way for further solution adoption.

As a latecomer to the Japanese market, Delta cannot stand out in a highly competitive environment solely through product sales. Therefore, NEA differentiates itself from competitors by adding value along the value chain and through its competitive approach. While competitors focus on selling individual products, NEA adopts a system integration strategy and offers a One-Stop Solution to deliver greater value to customers. Kengo highlighted the Kumamoto high-tech factory project, explaining, "At that time, the competitor had a significant price advantage. If we had only sold a single product, we would have missed this opportunity." In this project, Delta not only provided UPS systems but also acted as a system integrator, responding quickly to customer needs. This success not only strengthened NEA’s confidence in the system integration strategy but also inspired other SBPs to adopt the model, enabling them to secure new projects and elevate Delta’s brand reputation in Japan.

Kengo and colleagues took a group photo in front of the Delta booth at CEATEC.

Strengthening internal training and support tools, advancing ESG branding externally
As Delta transforms into a solution provider, NEA is actively developing a comprehensive talent training system and business support tools. In the past, both new sales personnel adapting to the company culture and colleagues transitioning from the ODM business to the solution business faced challenges. "Recently, we launched the first phase of training courses, which, in addition to existing programs, also introduce external resources to help the business transition towards providing pre-sales consulting services," Kengo shared. NEA is also collaborating with the DMS team to develop an AI support tool that consolidates business experience and knowledge into a database, allowing every salesperson to instantly access information and respond quickly to customer inquiries.

While developing the AI tool, the NEA team has already begun working on other business support solutions. For example, with the Containerized Data Center, the sales team can quickly provide configuration recommendations that meet customer needs through simulation tools, while also optimizing energy efficiency (PUE) as required and offering insights into CAPEX, OPEX, and more. This approach not only enhances the customer experience and accelerates response times but also strengthens Delta’s professional image. Kengo also envisions that, in the future, NEA's sales team will have System Architecture design capabilities. "With System Architecture design skills, the team's ability to respond to customers will be much faster, ultimately improving overall efficiency."

As a globally recognized leader in ESG initiatives, Delta's brand development in NEA is closely aligned with its ESG brand strategy. Kengo expects all business units to effectively communicate Delta's ESG commitments and progress to customers. “First, let's discuss Delta's progress in ESG so that customers can understand and approve, and then we can talk about the business.” To achieve this, NEA added ESG-focused colleagues at the beginning of the year to assist the business units in understanding the company's achievements in the ESG field. Additionally, the marketing team has started planning for an annual ESG Day in the future, inviting important customers to participate. With only 26 years remaining until 2050, the demand for ESG will continue to grow. I believe that staying on this path will bring long-term business opportunities.

23 Years of dedication: shouldering responsibility and leading forward
Over the years, Kengo has gained valuable experience both within the Region and at the BG level, gradually transitioning from the DSBU to his current role as NEA Region Head. Having spent over ten years in DSBU, he learned that growth comes from stepping out of his comfort zone. Recognizing an opportunity, he accepted the role of Vice President in Japan. For Kengo, who has been with DSBU since joining Delta, this experience of relearning has reinforced the value of rotation in career development. As NEA Region Head, he has developed a five-year plan for himself, systematically addressing challenges and making necessary adjustments, with the goal of ensuring smooth operations by the fifth year. "This is the foundation and territory I aim to establish for the organization."

To improve colleagues' understanding of the company, NEA launched an internal newsletter this year and organized a sharing session for young employees to freely express their thoughts. This initiative not only provides them with a platform to voice their ideas but also gathers feedback to be shared with supervisors. Kengo emphasizes that the purpose is not to add pressure on supervisors but rather to assess the leadership of each department through the exchange of opinions and drive improvement. He consistently encourages the team to confront challenges honestly and view them as opportunities for growth.

Looking back on his 23 years at Delta, Kengo feels deeply grateful. He recalls the time in 2005 when he was hospitalized and underwent surgery due to health issues while still a junior sales employee. During that time, he received a personal letter from the founder, which made him feel the Company's care and support for its employees. This gesture of warmth became his driving force, motivating him to persevere under pressure. "Even in such a situation, the company was still willing to provide me with a stage. This inclusion is a great part of Delta's culture," he said. His deep love and gratitude for Delta have instilled in him a strong sense of responsibility, motivating him to shoulder all the pressure and lead his team to grow stronger. In the future, he is committed to continuous progress and aims to lead the NEA team to explore new markets and opportunities.
Kengo, Mr. CH Ko (middle of the front row), Senior Corporate Strategy Advisor of Delta, got together with the NEA team at the year-end gathering to appreciate their hard work and high morale. Corporate management, including Mr. Jimmy Yiin, Executive Vice President of Global Business Operations, Mr. Foster Yu, Chief Solution Officer, Mr. Jesse Chou, Chief Sustainability Officer, also participated in the gathering.