Introduction

Previously, we sorted out what DX means, compared Japan and the West, and looked at the current situation in the field. Now, let's explore the crucial aspects of implementing DX in your company based on these findings.

Promoting DX

In the previous article, it is pointed out how people see DX varies between Japan and the West. But why is that, and what makes it get judged this way today?

There are 3 main reasons:

1. Not fully grasping the definition of DX.
2. Absence of a clear plan and the push to put it into action.
3. Insufficient investment in developing the skills needed for DX.

In previous articles, we discussed the initial definition of DX. However, it seems that, in practice, the term is commonly used without a clear focus on its purpose when it's actually put into action. This has resulted in a distinction between Japan and the West.

Even though definitions may vary, they are often categorized into the following three steps.

Digitization → Digitalization → Digital Transformation

First, true DX means "Digital Transformation". However, there's often a blurry understanding, and people might mistakenly think it's just about converting paper documents into digital form (Digitization) or using tools to digitize some aspects of company operations (Digitalization).

This lack of clarity can lead to unmet expectations. As mentioned before, it's crucial for all employees, not just top management, to grasp that DX involves reshaping organizations and operations using digital technology. Achieving this requires continuous and comprehensive efforts, including company-wide education.

Secondly, as mentioned earlier, this transformation will bring significant changes to the organization, so it's crucial to have a company strategy and the ability to implement it effectively. Many times, individual teams or units are formed to create and push these strategies.

However, Japanese corporate culture often emphasizes an "onsite" and frontline-driven approach, a legacy of the rapid economic growth in the past. It's commendable to focus on improving things directly from the field, as seen in the kanban system and "kaizen" (continuous improvement). But promoting DX involves altering company policies, making major operational changes, staff reassignments, and more, placing a considerable burden on the frontline. This can result in strong resistance from the field or a drift away from the original goal due to this opposition.

For this reason, it's crucial to structure the company's plan, consistently communicate it to the frontline, place capable individuals there, and empower them. Simply forming an organization won't yield full results if it aligns too closely with the current setup, given the challenges mentioned earlier. Moreover, it's vital for management to actively participate and demonstrate that this transformation reflects the leadership's intent.

Third, as highlighted in the IPA's "DX White Paper", is about developing people's skills. Japan is reported to have lower IT literacy compared to the West, and there's less effort being put into improving this situation. While computers and the Internet are widely used, basic skills in their use are lacking across Japan. Typically, the business department sticks to the systems used within the company. If any issues arise, they usually turn to the systems department for help, and when it comes to system development, the company often relies on external vendors more than overseas counterparts. Unfortunately, the company itself may lack sufficient skills in this area. Consequently, even if a company aims to push for DX, there's a shortage of employee expertise in digital matters, hindering the ability to create internal strategies, plans, and move forward with them.

This process might be a bit time-consuming, but it's crucial to figure out where the company is headed and establish a strategy. Identify the skills required to reach these goals and create a plan for training. If there's already a vendor on board, quick action is possible. Not only can you delegate tasks to them, but you can also place your own team members there to collaborate, and in some instances, integrate training into the ongoing work.

Conclusion

What did you think? In this article, I highlighted the essential aspects of driving DX. The fundamental concept is to clearly define the term and ensure everyone in the organization understands and shares this definition. I hope this information proves helpful in your DX efforts.

Looking ahead, I plan to explore the concept of CSV, commonly seen in company strategies, particularly in relation to human resources, as I briefly mentioned in this discussion.