In recent years, DX (digital transformation) has been promoted in all industries and industries, and there are many articles about “DX” in the news every day.
Due to the influence of the new coronavirus, remote work has been promoted and the news that government offices have digitized stamps, “ DX ” is a transformation that reduces excess resources and realizes more efficient work. I feel that awareness has permeated.
However, according to the “1st Digital Transformation (DX) Trend Survey” conducted in 2019, only 9.0% of companies are making progress in digitalization, and the second survey conducted in 2020 According to the survey, it was 8.7%, which is lower than in 2019.
Currently in Japan, more and more people have heard the word “DX”, but it cannot be said that “DX is progressing”.
It is true that it would be difficult for companies to suddenly be told to digitize their business processes and systems, which have functioned without any major changes, or to shift to individual companies.
However, in fact, DX is promoted in accordance with the “Guidelines for promoting digital transformation (DX promotion guidelines)” published by the Ministry of Economy, Trade and Industry.
Understanding these guidelines will lead to a deeper understanding of DX, which will lead to more efficient and effective DX.
Therefore, in this article, we will explain in detail “What is DX” and “What are the contents of the ‘DX Promotion Guidelines’?”
Table of Contents
- What is DX (Digital Transformation)?
- What is the “DX Promotion Guidelines”?
- the background I created
- Composition and content of “DX Promotion Guidelines”
- (1) Management style and structure for promoting DX
- (2) Building an IT system that will serve as a foundation for realizing DX
- Three points to keep in mind when promoting DX
- Awareness reform of the person in charge
- Understanding legacy systems and building consistent systems
- Smooth information sharing
What is DX (Digital Transformation)?
First, let me briefly explain DX (Digital Transformation).
According to Professor Eric Stoltermann (Umea University, Sweden), who proposed the concept of DX (Digital Transformation), DX is defined as ” the penetration of IT will change people’s lives for the better in every aspect. ” increase.
However, this is just the broad meaning of DX.
The DX in the ” DX Promotion Guidelines ” , which will be covered in this article, refers to DX that is used in business, and has a slightly narrower meaning.
In the ” DX Promotion Guidelines “, DX is defined as “a company that responds to drastic changes in the business environment, utilizes data and digital technology, and transforms products, services, and business models based on the needs of customers and society. , to transform operations, organizations, processes, corporate culture and climate, and establish a competitive advantage.”
What is the “DX Promotion Guidelines”?
The “DX Promotion Guidelines” is a document that describes the points that managers should keep in mind when promoting the realization of DX and the construction of IT systems in Japan based on the “DX Report” proposed by the Ministry of Economy, Trade and Industry in 2018. point.
Below, we will explain the background to the creation of the guidelines, an overview of the guidelines, and future prospects.
the background I created
In May 2018, the Ministry of Economy, Trade and Industry established the “Study Group for Digital Transformation” to consider current issues that need to be resolved in order to realize DX and measures to address them.
The report that summarizes the results of the comparison and examination is “DX Report-Overcoming the IT system ‘2025 cliff’ and full-scale development of DX-“.
The reason why the report was created in the report was that it was recommended that guidelines be compiled so that a shared understanding of the approach and necessary actions could be achieved in realizing DX as a country. It is written that the Ministry of Economy, Trade and Industry has been considering formulation.
The 2025 wall, which is also the subtitle of the report, means that most Japanese companies will be left behind in the international IT market because they adopt systems and business models that have been used for a long time, called legacy systems. is a social issue.
In order to solve this problem, it is said that promoting DX as a country is of great significance.
The “DX Promotion Guidelines” are roughly divided into two items: “(1) Management methods and mechanisms for promoting DX” and “(2) Construction of IT systems that will serve as the foundation for realizing DX”. I’m here.
Each item is explained in detail below.
(1) Management style and structure for promoting DX
・Presentation of management strategy and vision
Whether or not you can formulate a specific management strategy and vision and build a clearer business model is a major point in promoting DX.
Even if the management says, “Let’s proceed with DX using AI anyway,” without a management policy centered on DX as a company, it is not clear in what situations AI can actually be used. Therefore, efficient and effective DX cannot be achieved.
Present a specific management strategy and vision as a company, in which business field, by what means, and what kind of new value you aim to create.
・Top management commitment
As mentioned in the presentation of management strategies and visions above, DX cannot be realized simply by vaguely saying, “Let’s proceed with DX.”
In promoting DX, it is necessary to change business and work styles, organizational and personnel systems, and corporate culture and climate itself. It will be a point.
・Establishment of a system for promoting DX
When management builds new business models by utilizing data and digital technology in each business division, it is important to encourage employees to take on new challenges and create an environment in which they can continue to take on challenges.
・Investor decision making
Investor decision indicators are also important.
Also consider whether decisions are made based only on the cost (monetary) aspect or the return from the company, and what indicators the investor’s decision-making is suitable for.
・What DX should achieve: Ability to respond to speedy changes
The purpose of DX is to increase productivity and competitive advantage in the market by utilizing IT technology to respond to drastic changes in the business environment.
Considering the purpose of DX, whether or not the transformation of the business model through DX enables speedy responses to changes in management policy and global expansion is a very important point.
(2) Building an IT system that will serve as a foundation for realizing DX
・System for building a company-wide IT system
In order to build a new IT system, it is necessary to establish a system within the organization.
Let’s divide roles within the organization and aim to build an organization that allows for good mutual cooperation between departments.
In addition to building an organization, let’s create a system and secure human resources that can draw up an overall design that efficiently collects and utilizes the data necessary to realize management strategies.
In the guidelines, as a precedent case, a case of “organizing a small team consisting of top management, business departments, and information system departments and working on DX from the top down” is taken up.
・Governance for building a company-wide IT system
The main goal of DX has not been achieved with the introduction and transformation of IT systems that are individually optimized for each department and business division.
If you build an individual and optimal environment, system cooperation will become complicated, and the overall picture of the system as a company will become vague.
In order to avoid such a system becoming a black box, let’s refrain from throwing everything to the vendor company. Even within an organization, there is a need for governance that aims to create an optimal environment for the entire company.
・Ownership of business departments and ability to define requirements
As mentioned above, it is important for the entire company to have a common understanding of DX, but of course the ownership of each business division is also important.
Even in each business department, avoid leaving everything to the vendor and proceed with DX based on the business plan.
・Analysis and evaluation of IT assets
Before introducing a new system, it is necessary to first understand the current state of the system in use. Analyze and evaluate the current status of IT assets such as PCs, servers, and software in your organization.
・Sorting and planning of IT assets
After completing the analysis and evaluation of the current situation, let’s plan a system environment that can respond to drastic changes in the business environment.
In order to realize the optimal business model for your organization, dispose of unnecessary systems and IT assets and avoid writing extra costs.
・IT system after renovation: Ability to follow changes
DX is not complete just by upgrading to a new system.
Even after the IT system renovation, it is highly expected that the introduction of IT systems in new areas and the updating of the systems in use due to changes in organizational structures and business models.
Let’s try to create a system environment that can respond flexibly and quickly to such changes.
Three points to keep in mind when promoting DX
Awareness reform of the person in charge
The promotion of DX requires not only the cooperation of on-site employees, but also the cooperation of managers and on-site managers.
Instead of leaving the promotion to the employees in charge of DX, first of all, managers and managers understand “what kind of value can be created by doing DX, and what kind of change and effect can be expected?” Let’s involve the whole and proceed with DX.
Understanding legacy systems and building consistent systems
Building a consistent system is also a very important point.
Many Japanese companies’ legacy systems (current systems) are conspicuously obsolete and black-boxed.
At this rate, if you try to proceed with DX, the system will become more complicated and it will become difficult to cooperate with each other.
In order to prevent such a situation, it is necessary to understand the status and issues of the legacy system, and check whether the issues can be resolved and whether the system can be linked when using the legacy system at the same time.
Smooth information sharing
Let’s build an environment that allows not only system cooperation but also human cooperation. It is extremely important to coordinate information between the site where the system is actually used and the management team.
Issues and questions that did not arise while using the existing system may emerge. Let’s prepare a mechanism for information sharing throughout the company so that even if such a problem occurs, it can be dealt with quickly.
This time, I explained the “DX promotion guidelines”.
While referring to this article, read the “DX Promotion Guidelines” again and deepen your understanding and thoughts about DX.