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3/19/2025

Sumitomo Corporation becomes the first Japanese company globally deploying Microsoft 365 Copilot

Sumitomo Corp. aims to be a corporate group with “No.1 in Each Field”. Medium-Term Management Plan 2026 drives generative AI via two axes: business axis of boosting efficiency and profits, and management axis of advancing data-driven management.

Advanced validation program hands-on helped management realize values of Microsoft 365 Copilot. Sumitomo Corp. decided to implement it company-wide, enabling employees to master and achieve dramatic, sustainable growth in line with Sumitomo’s vision.

Internal promotions emphasized that ‘Microsoft 365 Copilot will be an essential infrastructure like phones and PCs.’ Quick access to information, stress-free convenience, and improved searchability in Office apps have boosted employee satisfaction.

Sumitomo Corporation

Great potential for generative AI used by each employee

Sumitomo Corporation aims to become the foremost “No.1 in Each Field” of the strongest business units. The entire group is working on the use of generative AI to achieve this goal. A distinctive feature of the group's approach to generative AI is that utilization is proceeding from two strategies: vertical (specialized for specific applications) and horizontal (used by employees in their daily work).

The horizontal strategy employs Microsoft 365 Copilot. The productivity and creativity of each and every employee can be improved by taking advantage of the fact that Copilot is built into apps in use every day with Microsoft 365. A global roll out across the entire company is being conducted by top management aiming to "encourage those who are not currently using Microsoft 365 Copilot to adopt its use so that all employees become proficient.” Various initiatives are being rolled out to promote and establish the use of Copilot within a year.

Sumitomo Corporation is developing its business by utilizing its global network in diverse fields. The company is aiming to enable rapid progress at this turning point of dynamically changing times. The previous midterm management plan, SHIFT 2023, decisively implemented structural reforms to create an environment advancing a new stage of growth. The theme now set forth in the Medium-Term Management Plan 2026 is realization as a corporate group with “No.1 in Each Field” with competitive advantages among its business units. This involves promoting growth centered on strengths, strengthening growth drivers, and transforming business portfolio. And by addressing social issues, the company aims to achieve sustainable growth.

The key to becoming a corporate group with “No.1 in Each Field” is use of generative AI. Wataru Shiotani, General Manager, Digital Strategy & Promotion Dept. explains the two perspectives in play for the company’s use of generative AI. 

“The first is from a business perspective. Sumitomo Corporation has 44 SBUs (Strategic Business Units) in terms of enterprise strategy. We are enhancing our business strengths and competitive advantages using generative AI to boost productivity and profitability. In addition, we are working with digital technology for business creation and transformation. The second is from a management perspective. Rather than relying on experience and intuition, we are proceeding with "advanced management" supported by data-driven decision-making derived from generative AI.”

In April 2023, Sumitomo Corporation formed a working group under their CDO (Chief Digital Officer) and CIO (Chief Information Officer) to direct group-wide use of generative AI. Collaborations also started with Microsoft for information sharing covering use and application of Azure OpenAI Service. In May 2023, the SC-Ai Hub (Sky Hub), a CoE (Center of Excellence) organization was established supporting implementation of generative AI in the Group. It plays the role of a hub and promotes the use of generative AI with a sense of urgency. It is composed of the IT Planning and Promotion Department, the Legal Department, Insight Edge (a group of DX experts from group companies) and SCSK (a system integrator).

“Our horizontal approach uses a SaaS solution for the SC-Ai Hub rather than a separate development effort. We were very interested in Microsoft 365 Copilot, which incorporates generative AI into Microsoft 365, and is used daily by the group's employees," says Shiotani.

He continues, “In order to achieve further growth, each employee must be motivated to maximize their capabilities. How can we eliminate the causes of employee dissatisfaction, such as routine and inward-looking work that is not directly related to the business? Microsoft 365 Copilot can release employees from basic tasks, giving them more time for creative work, and empowering them to their full potential. We see significant potential leveraging generative AI while focusing on each individual employee.”

In September 2023, the company participated in the Early Access Program (EAP), an advanced validation program, to test the capabilities of Microsoft 365 Copilot. Three hundred licenses were provided under EAP: 100 licenses for international headquarters; and the remaining 200 licenses for senior management; the IT Strategy Committee making IT investment decisions; the internal low-code development community for Microsoft Power Platform; and the IT Planning and Promotion Department. The intention was to have executives with authority to decide adoption and employees with high IT skills interact with the software to get a feel for the next steps of the implementation process.

Microsoft 365 Copilot is necessary in achieving the corporate vision

Microsoft 365 Copilot integrates generative AI in functions that are normally used in email and Teams, so management also experiences these benefits close at hand. First, the IT Planning and Promotion Department gave a presentation at a management meeting. The introduction of an IT tool in the verification stage was unusual, and hands-on sessions were held for about 30 people, including the Chairman.

Shiotani explains the significance of having top management experience generative AI, "It was necessary for management to experience by themselves to best consider how we can improve the company by utilizing Microsoft 365 Copilot.”

Hands-on session scenarios were tailored to the work of executives, such as "summaries of emails accumulated during long flights on business trips by Microsoft 365 Copilot.” Many of the busy executives handling large amounts of information had positive impressions of the introduction as they could really feel the benefits of the summary function.

A survey of users that received licenses through EAP showed satisfaction levels of 70%. Hajime Iba of the IT Planning & Promotion Dept. explains the reason for this.

“In the past, team members had to ask each other about things they did not understand or where to store materials. Microsoft 365 Copilot provides the information we need by simply typing instructions. In Teams, it helps us efficiently catch up on discussions, reducing the need to attend regular meetings. We believe that the speed, convenience, and improved searchability of information have enhanced overall satisfaction."

Kazuaki Asada of the IT Planning & Promotion Dept. recalls that his thoughts about company-wide implementation changed considerably after attending Microsoft Ignite, an annual event for developers and IT professionals in November 2023 hosted by Microsoft.

“Hearing about the scale of investment, enthusiasm, and partner collaboration for Microsoft 365 Copilot deepened my understanding of its high potential. As capabilities continue to grow, it can't be judged solely by current functions. I believe business innovation will emerge by using Microsoft 365 Copilot as an interface.”

The company evaluated the results of the EAP trial, and in light of its high potential, decided to consider implementation on a company-wide basis of Microsoft 365 Copilot. The key point was the number of licenses. Depending on the nature of the business, tools and frequency of use varies with Office apps and it is difficult to measure the effectiveness prior to implementation compared to an ordinary IT investment.

“One of the options was to focus on those who wanted to use it and expand the number of licenses once the effectiveness was actually seen. However, management decided differently," continues Shiotani.

“Encouraging use even among non-users to increase productivity and creativity can grow the company dramatically and sustainably. It was the management's strong belief to not just look at the immediate benefits but consider Microsoft 365 Copilot necessary to achieve the corporate image they are targeting.”

"Microsoft 365 Copilot provides the information we need by simply typing instructions. In Teams, it helps us efficiently catch up on discussions, reducing the need to attend regular meetings. We believe that the speed, convenience, and improved searchability of information have enhanced overall satisfaction."

Mr. Hajime Iba, IT Planning and Promotion Department, Sumitomo Corporation

8,800 licenses distributed to all employees and temporary staff

Sumitomo Corporation distributed 8,800 licenses to all employees and contract staff, based on the concept that "those who are not using it should be the ones to use it," at the company and its overseas headquarters in April 2024. The IT Planning Department, in charge of internal implementation, is taking a series of measures so that it becomes firmly established within one year.

How to raise internal awareness of Microsoft 365 Copilot? The first step was creating a movement.

“We displayed office posters and showed videos in the company cafeteria to create an atmosphere where people would be interested in a natural way about Copilot. We also distributed email newsletters and held seminars on the use of the system with the support of Microsoft. Our message to employees is that Microsoft 365 Copilot will become essential infrastructure, just like phones and PCs. Embrace it as an early adopter and enjoy the advantages of being ahead of the curve," says Asada.

Getting users to realize benefits forms the basis for promoting retention and utilization. The challenge is that prompts (instructions) for Microsoft 365 Copilot require know-how. Output can vary greatly depending on the content of the prompt, with cases where the desired outcome is not obtained. Prompt templates have been created and deployed throughout the company to solve this problem.

Yusuke Ogino of the IT Planning & Promotion Dept., who created the deployment process, explains about the template.

“We think it is a notable hurdle for users to create prompts from scratch. It would not be acceptable to just give up, so we have prepared templates for each use case. Simply copy and paste the existing prompts into the screen to see the results. The aim is to help people become familiar with the system by experiencing its effectiveness. In fact, it was Copilot that developed the application for template-sharing. I told Copilot, 'Here's what I want to do, so please give me the code.' I then judged the results and made modifications."

"Hearing about the scale of investment, enthusiasm, and partner collaboration for Microsoft 365 Copilot deepened my understanding of its high potential. As capabilities continue to grow, it can't be judged solely by current functions. I believe business innovation will emerge by using Microsoft 365 Copilot as an interface."

Mr. Kazuaki Asada, IT Planning and Promotion Department, Sumitomo Corporation

Cultivating creative improvement as well as search and summarization

As each business unit has its own practices, the fact that generic measures alone would not be enough to ensure extensive use was another theme of the company-wide introduction. The assignment and activities of champions in each SBU who are in charge of promotion was an important measure ensuring adoption. Being familiar with their particular business area and proficient with Microsoft 365 Copilot, they are close-at-hand advisors that can expand recognition. Assigning users interested in Microsoft 365 Copilot as champions provides an environment facilitating their roles within their businesses and fostering a company-wide movement.

In developing effective measures, it is also important to follow the PDCA cycle. Quantitative and qualitative effects are measured to evaluate the current status. They conducted a survey of 8,800 employees collecting unreserved opinions on usage and usability. The company is also using Microsoft Viva Insights to visualize the way employees work, track quantitative effects such as reductions in the number of web meetings and time spent using applications in Office. Verification and improvements are planned from both the perspectives of opinions and data from the frontline.

Iba explains the significance of implementing Microsoft 365 Copilot. 

“Improving the profitability of our employees by allowing them to spend their time on core responsibilities, such as talking with customers, can be improved by streamlining their other work. It is also very important to improve creativity, not only by enabling searching and summarization, but also in terms of being able to really brainstorm ideas in a team.”

Microsoft 365 Copilot's capabilities are affected by data now available. 

 “At the moment, information generated from existing business processes is stored at different administered locations. We need to rethink the workings of our internal systems to get the most out of Microsoft 365 Copilot. By centralizing data storage in SharePoint or OneDrive, we can expand the range of data and improve user convenience and satisfaction,” says Asada.

This is the company's first initiative using generative AI in daily operations. Asada says the distinctive support from Microsoft has been reassuring as they proceed.

“We have been receiving detailed support from the stages of evaluation, implementation company-wide globally, establishment, and effectiveness measurement. We have not only been provided with information but also receive immediate responses when consulting about issues in each process, which leads to better performance.”

"We think it is a notable hurdle for users to create prompts from scratch. It would not be acceptable to just give up, so we have prepared templates for each use case. Simply copy and paste the existing prompts into the screen to see the results. The aim is to help people become familiar with the system by experiencing its effectiveness."

Mr. Yusuke Ogino, IT Planning and Promotion Department, Sumitomo Corporation

In the future, Sumitomo Corporation plans to leverage this successful model with expansion to group companies.

“At Sumitomo Corporation, we have decided to have all employees use Microsoft 365 Copilot. This initiative has just started. Our efforts are focused on delivering results and contributing to solid business innovation,” says Shiotani.

The company has always prioritized "trustworthiness and reliability," "no pursuing easy gains," and "principled public interest," while anticipating changing times with an unchanging "Spirit of Enterprise.” Sumitomo’s DNA, which has been passed down from generation to generation for 400 years, will continue to pursue a new stage of growth as it integrates Microsoft 365 Copilot.

"Encouraging use even among non-users to increase productivity and creativity can grow the company dramatically and sustainably. It was the management's strong belief to not just look at the immediate benefits but consider Microsoft 365 Copilot necessary to achieve the corporate image they are targeting."

Mr. Wataru Shiotani, Digital Strategy and Promotion Department, Sumitomo Corporation

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