GS Caltex Leading with DX Team, Crisis Overcoming Operation Named 'Digital Transformation'

Heo Tae-soo, Chairman of GS Group (left), and Heo Se-hong, President of GS Caltex (right)

[Asia Economy Reporter Hwang Yoon-joo] GS Group has decided to overcome the crisis caused by the demand slump in the refining industry due to the spread of the novel coronavirus infection (COVID-19) through digital transformation. The plan is to integrate digital capabilities into core refining technologies and expand new businesses into related areas.

According to the refining industry on the 2nd, GS Caltex established a digital innovation task force (TF) called the 'DX Team' for crude oil purchasing and trading (S&T) earlier this year. DX stands for Digital Exchange.

This is the first time that GS Caltex, an energy affiliate of GS Group, has set up a team related to digital transformation directly in the refining business beyond developing new businesses linked to gas stations. This reflects the will of Chairman Huh Tae-soo (pictured), who is accelerating digital transformation across the entire GS Group.

Chairman Huh, who became the new head of GS at the end of last year, urged in his New Year's address this year to "strive for digital transformation (DX) that combines IT and data to advance our business structure," and has been driving digital innovation since then.

The newly established DX Team in GS Caltex's S&T Headquarters plans to focus on shortening the crude oil purchasing period from several months to a few days using IT and purchasing at lower prices. A GS Group official said, "In the current situation where international oil price volatility has increased due to competition for crude oil market share among oil-producing countries, the DX Team, which decides crude oil supply and demand strategies, is expected to play a significant role."

Previously, GS Caltex signed a business agreement (MOU) with Naver to increase data utilization and manage operations through artificial intelligence (AI). It announced plans to use Naver Cloud at GS Caltex sites, communicate with customers through Naver's enterprise messenger, and introduce AI services in business operations.

Naver Cloud is expected to be used to securely manage data generated from GS Caltex's Yeosu plant in Jeollanam-do and mobility services at gas stations. During the first half of the year, a system to collect and manage electric vehicle charging and payment data will be built on Naver Cloud, and plans to start testing for building an integrated mobility platform are also under consideration. Additionally, using Naver's enterprise messenger 'Line Works,' orders will be received from customers and related information will be promptly provided. Discussions are also underway to utilize Naver's AI technology to automate simple repetitive tasks.

GS Retail established a Digital Customer Experience (DCX) Promotion Office earlier this year. Kim Jong-seo, formerly of Samsung Electronics, was recruited as the head of the DCX Promotion Office. This plan reflects the trend of rapidly increasing customers using mobile applications, aiming to enhance accessibility and maximize convenience.

An industry official said, "After Chairman Huh's inauguration, the initial stage of promoting digital transformation lacked specific plans or application methods, but recently the direction is becoming more concrete. With rapid reporting using IT devices such as tablet PCs and collaboration tools, efficient and swift decision-making has become possible, enabling quick and proactive responses even amid the global crisis caused by COVID-19."

This content was produced with the assistance of AI translation services.