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HomeAutomationWhat is DX (Digital Transformation)? Explanation of definitions, skills, and examples!

What is DX (Digital Transformation)? Explanation of definitions, skills, and examples!

In 2020, due to the effects of labor shortages due to the declining birthrate and aging population in Japan, the importance of digital business transformation is increasing. In addition, amidst the rapid changes in the environment, DX (digital transformation) is attracting increasing attention in order for companies to respond quickly to unpredictable risks and to conduct business that is premised on online regardless of location.

Looking overseas, the presence of various global companies such as GAFA (Google, Apple, Facebook, Amazon) and China’s BAT (Baidu, Alibaba, Tencent) has increased. One of the keywords for these companies to achieve rapid growth and great success is “DX (Digital Transformation),” which transforms business digitally. These global companies with large IT platforms have changed our lives.

In the future, as DX is promoted, new business models will be born and people’s lifestyles will change significantly.

In this article, we will explain what DX is in the first place, and introduce examples of its use in various fields both in Japan and overseas.

Table of Contents

  • 1. What is DX (Digital Transformation)? explain the definition
  • 2. Why has DX (Digital Transformation) attracted attention?
    • The “2025 cliff” that triggered the attention of DX (digital transformation)
    • Evolution of technology that supports DX (digital transformation)
  • 3. Digitization/differences and relationships with digitalization
    • Digitization
    • Digitalization
    • Digitization, digitalization leads to DX
  • 4. Benefits of DX (Digital Transformation)
    • Streamline operations: reduce costs, increase margins and increase sales
    • New revenue base through new value creation
  • 5. Disadvantages and concerns (hurdles) of DX (digital transformation)
    • Cost-effectiveness
    • Reproduction of legacy systems
    • DX cannot be spread throughout the company
  • 6. Thinking from DX (Digital Transformation): as a Service (XaaS)
    • SaaS
    • MaaS
    • IaaS
  • 7. Market size of DX (Digital Transformation)
  • 8. Basic knowledge and skills required for DX (digital transformation) human resources
    • Computational Thinking
    • General understanding of IT technology
  • 9. The Importance of Data in DX (Digital Transformation)
  • 10. Importance of UX in DX (Digital Transformation)
  • 11. DX (Digital Transformation) Use Cases
    • entertainment
    • medical care
    • education
    • logistics
    • Finance
    • Agriculture
  • 12. How to promote DX (Digital Transformation) in business
    • Phase 1: Discovery of issues, planning of solutions
    • Phase 2: Perform digitization to digitize analog data
    • Phase 3: Implementation of digitalization that utilizes data to transform business processes and business models
    • The government has set up DX promotion indicators to visualize DX actions
  • 13. DX (Digital Transformation) Related Books
    • The easiest DX textbook The aggressive IT strategy to transform the business taught by a popular lecturer
    • After Digital 2 UX and Freedom
    • A textbook for reform projects that nurtures leaders
  • 14. Summary

1. What is DX (Digital Transformation)? explain the definition

The definition of DX (Digital Transformation) proposed in 2004 by Professor Eric Stolterman of Umeå University in Sweden is as follows.

It is a technology that continues to evolve and has some impact on human life, and as a result, people’s lives change for the better.

The Ministry of Economy, Trade and Industry of Japan has summarized the following definitions in the “Guidelines for promoting digital transformation (DX promotion guidelines)” issued in 2018.

Companies respond to drastic changes in the business environment, utilize data and digital technology, and transform their products, services, and business models based on the needs of customers and society.・Change the corporate culture and establish a competitive advantage.

The definition by Professor Eric Stolterman is broad, covering all aspects of our lives, but the definition of DX by the Ministry of Economy, Trade and Industry is limited to business perspectives .

Many of the DX that are currently a hot topic are mainly DX from a business perspective as defined by the Ministry of Economy, Trade and Industry, where companies quickly grasp changes in the external and internal environments and use the power of digital to optimize management. It is important to create new value by guiding the strategy.

2. Why has DX (Digital Transformation) attracted attention?

DX is a concept that was proposed in 2004, but it actually started to attract attention around 2019. You may think, “It’s too late!”, but the fact that revolutionary technology has permeated society over the past 10 years is a big trigger.

The “2025 cliff” that triggered the attention of DX (digital transformation)

One of the major reasons why DX suddenly attracted attention in Japan was the “DX Report: Overcoming the IT system ‘2025 cliff’ and full-scale DX” announced by the Ministry of Economy, Trade and Industry on September 7, 2018. development” (abbreviation: DX report). In the DX report, along with the phrase ” 2025 cliff “, a warning bell is sounded about the old-fashioned appearance of Japanese companies

▼ Click here for the wall of 2025 and DX-related measures promoted by the Ministry of Economy, Trade and Industry

First of all, the content of “2025 Cliff” can be roughly divided into the following three points.

  1. Failure to keep up with the market will make you a loser in the digital race
  2. System maintenance costs account for more than 90% of the IT budget, resulting in technical debt
  3. Increased risk of system troubles and data loss

According to the DX report, if DX cannot be realized, economic losses of up to 12 trillion yen will occur annually from 2025 onwards.

On the other hand, it is also stated that if DX can be realized, it will be possible to boost the real GDP to more than 130 trillion yen in 2030.

The Ministry of Economy, Trade and Industry calls for the promotion of DX to be essential for Japanese companies to maintain competitiveness and productivity.

Evolution of technology that supports DX (digital transformation)

Behind the DX attracting attention is the rapid technological development in the 2010s.

big data

With the spread of smartphones, etc., we are now able to utilize various services. At the same time, a huge amount of data is accumulated, and attention is focused on how to utilize it as big data. Today, data has become so important that it can be compared to ” Data is the new oil .”

Big data does not only refer to large amounts of data. It refers to “different kinds of data with different shapes and different characteristics”. In big data, the 3Vs of Volume, Variety, and Velocity are important factors.

By accumulating big data, not only does system coordination become smoother, but advanced analysis and prediction become possible, making data utilization especially important in DX.

AI (machine learning/deep learning)

The development of AI ( artificial intelligence ) technology is also a trigger for increased attention to DX.

If AI is just one technology, it is just one element that makes up DX. However, the value of data is being recognized again in DX. New knowledge can be obtained by collecting large amounts of data and processing large amounts in a short time using AI.

AI will work like the human brain, connect various digital technologies in DX, create comprehensive value, and dramatically change the world.

Next-generation communication 5G

5G is a technology that can be said to be the main player in the IoT era, where all devices are connected to the Internet and data is exchanged at high speed. 5G, which features ultra-high-speed, large-capacity, and low-latency communication, can create new solution services in the medical field, construction site, and autonomous driving area. 5G can be said to be a driver of DX promotion for companies.


VR : Virtual reality (virtual reality)
It includes the meaning of “it is not real on the surface, but it is essentially real”, and it is possible to experience a real world in a world that does not exist in reality.
AR : Augmented Reality
It means “virtual augmentation of the world in front of you”, and it is a mechanism to display and augment visual information in the real world.

cloud service

Currently, the use of AR and VR is progressing in fields such as games and medicine. Due to the advantage of not being restricted by time or place, demand in various situations will increase in the future, and it can be expected to further promote the creation of DX and innovation.

Cloud services provide users with data and software, which they used to use on their own computers, as a service via a network. Typical examples include Amazon Web Services (AWS) and Microsoft Azure.

Cloud services are used from the two perspectives of promoting DX and raising the level of DX by giving a wide range of options for infrastructure renovation to improve the value of existing systems.

3. Digitization/differences and relationships with digitalization

In the context of digitization, not only DX (Digital Transformation) but also words such as digitalization and digitization are frequently used. These words are often used interchangeably, but they have different meanings.

By clarifying the differences between these three words, you will deepen your understanding of how to proceed with DX. Take a look at the image below.


In layman’s terms, detization is the process of converting analog data, such as paper, film, or sound, into digital form . It also includes the process of digitizing physical information such as human health data using sensing technology.

Digitalization and DX cannot be achieved without digitization.

Digitization of paper books and digitization of text with OCR function are examples of digitization.

Now that data has become an important asset for companies, it is possible to analyze and predict by digitizing various analog data and making it possible for computers to handle it.

In particular, digitization is an essential process for promoting the introduction of AI technology, which has been attracting attention in recent years.


Digitalization is the process of improving and transforming business flows, business models, business processes, etc. by utilizing digital technology and data .

Converting from a business model of physically owning a car to a car-sharing model, and software subscriptions that used to be sold by package are examples of business model transformation.

Digitalization also includes improving business flows with digital technology, such as automating operations using RPA technology and simplifying internal administrative procedures using SaaS.

Digitization, digitalization leads to DX

The important thing in promoting DX is to accumulate digitalization and digitalization to bring about changes in all aspects of the company, such as business models, operations, organizations, processes, and corporate culture .

That will eventually lead to the realization of DX.

In recent years, many DX-related cases have emerged, and the use of AI and RPA is progressing. But it is only a dot. Strictly speaking, most of them are not examples of DX, but digitization can be said to be an example of digitalization.

DX covers a wide range of areas, from business models to operations and culture, and cannot be achieved overnight. Based on this perspective, let’s continue to digitize and digitalize and continue to walk towards the realization of DX.

4. Benefits of DX (Digital Transformation)

Streamline operations: reduce costs, increase margins and increase sales

By digitalizing in the process of DX, you can break away from the legacy system (decrepit system).

Legacy systems is an IT term for old systems that are outdated. It is a heavy burden for the company, as it costs money to maintain the system, and it takes man-hours to operate and maintain. Also, in the IT field, which changes rapidly over time, legacy systems are not suitable for flexible system updates.

By building a system environment that meets the needs of the times, it is possible to reduce costs and improve efficiency by streamlining system maintenance costs and wasted labor. In recent years, in particular, an increasing number of companies are adopting systems that enable them to easily share information by moving their core systems to the cloud. Also, if you can update your legacy system and lower the cost of operation and maintenance, you can increase your profit margin.

New revenue base through new value creation

In order to transform business (digitalization) in the process of DX, it is important to focus on customer value. Thinking about and creating value to provide to customers will lead to new businesses, and you may be able to build a new revenue base for your company.

In recent years, development methods that place the customer’s value at the center have been established, and many venture companies have been established. You can expand your business by creating unprecedented business models that match new values. Large domestic companies, which tend to be bound by their own success stories and internal environment, are also required to provide value-based businesses to their customers.

For example, Amazon was originally an e-commerce platform for “book mail-order service”, but as a result of repeated improvements to “customer-centered”, it is now possible to purchase not only books but also various things such as food and clothing. It has grown into a beloved service.

By realizing DX, we will expand customer needs and convenience, and by pursuing the “ease of use” of services, businesses and services will have characteristics that differ from their original forms, leading to the creation of new value.

5. Disadvantages and concerns (hurdles) of DX (digital transformation)


Implementing DX comes at a massive cost. In addition, it may take time to see results, so it is necessary to secure long-term funds.

According to IDC Japan, 40% of companies do not actually realize the effects of DX, so it is essential for companies to plan DX promotion and estimate development costs from a long-term perspective.

Reproduction of legacy systems

As described in the DX Report, many Japanese companies today are using outdated core business systems, so-called legacy systems. Due to the shortage of manpower, aging technology, exaggeration and complexity of the system, the inside of the system has become a black box, making it difficult to operate and maintain.

However, migrating from the existing system to the new system is extremely difficult, and it is possible that it will be difficult to take the plunge. Be careful not to say, “I tried to migrate to a new system under the guise of DX, but I could only partially renovate it and it became more complicated.”

In order to thoroughly implement the DX that companies are aiming for and eliminate these problems, shouldn’t we consider reviewing the core of the company and moving to a new system?

DX cannot be spread throughout the company

Many companies have started advocating DX as a slogan internally, but in the end, DX tends to be only for certain departments'' oronly for certain tasks,” and ends with mere digitization and digitalization. are seen here and there.

In corporate transformation related to the introduction of DX, major initiatives that affect the entire company involve a great deal of effort and difficulty.

For that reason, it is important to accumulate small and quick successes. Also, let’s show the results firmly in numbers and proceed with DX while gaining the satisfaction of the management and employees.

The surest way to proceed is to first understand the situation in your company, then work on small-scale measures and then gradually expand the scope of the target.

6. Thinking from DX (Digital Transformation): as a Service (XaaS)

Over the past few years, everything has started to become “as a service” (abbreviated as XaaS). XaaS is to provide products and services via the cloud and provide services online. Envisioning this new business model is an important part of DX.


SaaS is an abbreviation for “Software as a Service”. It stands for “software as a service”.

In many companies, software may be installed on their own computer and run only on that computer.

However, with SaaS, instead of installing software on the user side, users can use it as a service by providing it via a network and easily installing a browser or application.

For example, the communication tool Slack, customer management (CRM), and sales support system Salesforce in the United States.


MaaS is an abbreviation for “Mobility as a Service”. It’s called “mobility as a service”.

It is a new concept of “mobility” that utilizes ICT to move transportation to the cloud, treats mobility (movement) by all modes of transportation other than private cars as a single service, and seamlessly connects them.

Examples include Uber, an American car-hailing platform, and China’s major ride-sharing company Didi Chuxing. In the future, self-driving cars may become commonplace in cities, significantly reducing the cost of taxis and reducing the number of people owning private cars.


IaaS is an abbreviation for “Infrastructure as a Service”. Literally translated, it is “a service as an infrastructure for developing and using applications”. Virtual servers, hard disks, and OS are services that provide networks on the cloud. It is said to be highly customizable.

Examples include Amazon Elastic Compute Cloud (Amazon EC2) provided by Amazon, Microsoft Azure provided by Microsoft, and Google Compute Engine (GCE) provided by Google.

7. Market size of DX (Digital Transformation)

DX is a broad concept, and it is currently difficult to accurately derive its market size.

A representative DX market size report conducted in Japan is the “2018 Digital Transformation Market Future Prospects” survey conducted by Fuji Chimera Research Institute, Inc., a marketing and consultation company.

As mentioned above, the concept of DX, which needs to be subdivided, is investigated as the investment amount of the market by industry in manufacturing, distribution, finance, information communication, medical care / nursing care, transportation / transportation, and other industries, and the results are reported. . We also define 15 basic technologies related to DX and anticipate their future.

According to this survey, the DX market in 2030 is expected to reach 2,368.7 billion yen on an investment basis. DX-related investment is expected to increase, especially in the manufacturing and financial industries.

8. Basic knowledge and skills required for DX (digital transformation) human resources

For companies working on DX, the importance of human resources with DX-related knowledge and skills is increasing. What skills would you need to become that person?

Computational Thinking

The way of thinking called Computational Thinking is to look at things from a bird’s-eye view, understand the relationships, and reconstruct the mechanism. Since planning, development, and introduction of the system are essential for DX conversion, it is considered difficult unless you acquire this way of thinking.

This way of thinking consists of four forces.

  1. Decomposition: Power to decompose problems Decompose
    complex problems into finer details
  2. Decomposition: The ability to discover patterns Discover
    the periodicity and regularity of things
  3. Abstraction: the ability to abstract
    Extract only the most important part of the problem
  4. Algorithm Design: The ability
    to proceduralize Step by step

General understanding of IT technology

When it comes to IT technology, some people may imagine the work of an engineer who can program. Now that IT technology is commonplace around us, it is important for all people, not just engineers, to acquire a wide range of basic knowledge about IT.

In DX, various technologies are used for digitization and digitalization. If you do not have a solid understanding of technology, you will not be able to have perspectives such as which problem can be solved with which technology, what are the challenges and risks of that technology, and how to plan for the future.

9. The Importance of Data in DX (Digital Transformation)

In DX, the most important asset is data. Data are important in the following ways:

In the 2020s, when DX will become important, the key words will be data driven.

By taking the next action based on the data obtained from measurement of effects, etc., it is possible to implement appropriate measures even when the future is unpredictable.

Simply put, it aims to create value by optimizing business processes, enhancing customer experience, reforming business models, etc., by using and analyzing the various data that companies accumulate on a daily basis.

Data is very important in DX. There are 3 reasons.

  1. “Better Decisions”: Data Analysis Makes the Best Suggestions About What to Do
  2. “Quick decision making”: Predict what will happen in the future based on past data
  3. “Automation of decision-making”: Humans do not need to make judgments when it is sufficient to make judgments mechanically according to conditions

In the future, the most important thing in corporate management is “decision making”. By making “decisions” as automatically as possible or based on data, it becomes possible to shift from “defensive IT” to “offensive IT”, which holds the key to promoting DX.

10. Importance of UX in DX (Digital Transformation)

UX stands for User eXperience.

UX means “the experience that a user obtains through a single product or service.” The purpose is to improve the value of products and services for users by improving this user experience.

Why is improving UX so close to realizing DX?

UX is a concept that includes all of the user’s emotions, beliefs, preferences, perceptions, physiological and psychological reactions, attitudes, and sense of accomplishment that occur before, during, and after using the system.

As mentioned above, DX conversion is based on the premise of being “customer-centric”. UX improvement can dramatically improve existing experiences and capture new demographics, so UX is very important when providing value to users sustainably.

11. DX (Digital Transformation) Use Cases


In the entertainment area, DX conversion is progressing particularly quickly.

Here is a Netflix success story. Netflix started DVD rental service by website in 1998 and moved to streaming distribution service from 2007.

In 2013, we started producing original works using big data, and by 2016, the number of countries where we provide services has expanded to 130 countries, and now we are providing services to members in more than 190 countries in 21 languages. became.

The reason for the success of Netflix’s efforts was the conversion of the business model to streaming distribution (digitalization). In addition, with the use of big data, it has become possible to continuously provide content that is of interest to more people.

In addition, in the field of entertainment and entertainment, there are many DX-related cases that incorporate streaming distribution mechanisms.

medical care

Various DX are also progressing in the medical field. In the medical field, the working environment for workers continues to deteriorate and social security costs continue to rise due to the declining birthrate and aging population, and there are many issues to be addressed.

Therefore, there is a need to streamline the industry as a whole by, for example, efficiently utilizing medical data while protecting privacy, and abolishing paper data such as electronic medical records.

We are also promoting the use of AI in the medical field. What I would like to introduce here is “AI Questionnaire Ubie”. AI automatically generates questions according to the symptoms of each patient, enabling extensive and in-depth medical interviews.

As a result, AI was able to reduce the medical interview work to 1/3, eliminating the waiting time for outpatients during busy hours, and increasing the time nurses devoted to reception work from medical interview work.

In addition to the use of AI, further DX is required in the medical field.


DX is progressing in the education field as well.

In addition to the lack of teachers in Japan, it has not evolved for many years, and a drastic reform using digital technology is necessary. Especially in recent years, the required skills have changed significantly.

Instead of providing the same quality of education to everyone as in the past, it is also necessary to use data to provide education tailored to each individual. Also, in the future, it will be important to incorporate IT-related subjects and make efforts to increase the number of people with IT literacy.

What I would like to introduce here is “Mirai Seed”, a learning software that uses doublets developed by Benesse. Before class, students answer a questionnaire and advise teachers on class methods and content based on result data such as learning motivation and weak areas. This software can be used to measure changes in motivation to learn and level of understanding through classes, and improvements can be made in the next class. You can visualize the weak areas of children and strengthen online education.

In addition, AEON, an English conversation school, named AEON DX, has greatly increased its business value by providing a consistent experience from employees to users.


In Japan, purchasing behavior through the Internet is becoming more active. With the rise of e-commerce sites such as Amazon and Rakuten, the number of home delivery parcels is increasing year by year.

If self-driving cars are realized and a society where robots deliver homes arrives, many problems will be solved. But now only humans can do it.

On the other hand, efforts are also being actively made to utilize data and utilize SNS to reduce missed deliveries.

For example, Nitori Holdings (HD) is working on the operation of a new logistics system using blockchain. First, we will use blockchain to digitize information related to logistics and shorten delivery times throughout the supply chain.

In addition, by understanding what skills the drivers of partner transportation companies have, we can solve the difficulty of delivering products that require specialized knowledge and aim for optimal staffing. Due to the acceleration of DX, Nitori’s sales are increasing even with the spread of the new coronavirus infection.


Various DX conversions are progressing in the financial area, and we will change the way finance is done.

It can be said that the first issue in the financial field is the “paper culture.” Many documents still exist, and various procedures are carried out through paper. Currently, many banks are digitizing applications for smartphones and allowing various procedures to be performed on their websites.

The use of OCR technology, which digitizes paper data, is also progressing. Now, if you use AI-OCR that utilizes AI, even handwritten characters can be digitized with almost 100% accuracy.

The Mizuho Financial Group announced a 5-year management plan in fiscal 2019 with the goal of “transitioning to next-generation finance.” We will promote digital support in all business areas, such as developing next-generation stores centered on consulting using digitalization technology, promoting paperless operations, and proposing digital strategies to corporate customers. We aim to create “new financial value” in response to unpredictable environmental changes.


DX is progressing even in agriculture, which has become serious due to labor shortages.

Kalm Kakuyama Co., Ltd., located in Hokkaido, has realized labor-saving in large-scale dairy farm management and efficient feeding management by introducing a large number of milking robots. Eight automatic milking robots (one of the largest in Asia for one farm) were installed in the barn to improve work efficiency and reduce production costs.

Introduced a device that is linked with a milking robot and can manage disease and breeding by analyzing the ingredients in raw milk for each individual. We have improved the breeding efficiency.
Other examples

12. How to promote DX (Digital Transformation) in business

Here, I will explain the DX promotion method in the company.

As mentioned above, DX requires accumulating digitalization and digitalization, transforming business models, operations, organizations, processes, corporate culture and climate, and establishing a competitive advantage.

First of all, the important thing in promoting DX is “how to collect data in a form that can be used”. In the conventional system, we have aimed to improve operational efficiency by prioritizing functions. However, the result was a complex system with more features that no one used.

In DX, first of all, it is necessary to promote “data first”. In development that assumes DX, it is not easy for users to use, considering how to utilize data.

(Improvement of UX), we must create a system that is effective from a business perspective.

Phase 1: Discovery of issues, planning of solutions

[List of issues]

The important thing in promoting DX is to understand what kind of business your company has and what kind of process it is doing, and identify issues. After identifying your challenges, identify, list, and prioritize the business processes that have room for digitization.

In particular, it is necessary to prioritize solving the issues that are the source of the company’s competitiveness.

[Propose as a plan]

Once the issues have been prioritized, the process is put together as a plan and proposed, and approval is obtained within the company. By specifying the schedule and cost for each process, you can get a concrete overview of the project. In particular, don’t forget items such as issues, current situation, planning, operation, system, and schedule. Also, it is important to be conscious of what kind of value is created and who is happy.

[Launch the project]

Once the plan is approved, a team will be formed to launch the project. Among the issues assigned in order of priority, we proceed with the project by distinguishing between digitization and digitalization, but there are many cases in which we cannot separate them clearly.

In any case, the goal is to streamline the business process through the project and create new value for users, so let’s work on the project for that purpose.

Phase 2: Perform digitization to digitize analog data

[Data saved on paper can be shared! Analysis and prediction are also possible]

Digitization converts analog data into a form that can be used by computers as digital data. Through digitization, we digitize paper data owned by individuals and make it accessible from anywhere and easy to share.

By creating digitized data through digitization, it will be possible to analyze and predict by linking business systems and utilizing huge amounts of data.

[Build an environment that can be accessed via the cloud such as SaaS]

In digitization, it is also important to produce results quickly and at low cost, so it is good to use SaaS for that.

SaaS is a service that can be accessed from anywhere via the cloud. If there are tasks that use paper and stamps in the project content, you can greatly improve efficiency by using SaaS.

For example, if you use SaaS to streamline contract-related work that uses stamps, you can use CloudSign to simplify contracts online. In addition, LegalForce, a cloud contract review support software, can speed up the content of contracts by utilizing AI.

In any case, it is important to identify your company’s issues and utilize SaaS that meets those issues.

[Based on sharing and utilization of data operation]

One thing that must be considered when digitizing analog data through digitization is the operation of the infrastructure that stores the data.

In particular, services that have a large number of users will accumulate a large amount of logs, etc., and if you do not design the data infrastructure in a planned manner, you will regret it later.

When considering the future data infrastructure, it is necessary to develop a data infrastructure that utilizes a cloud environment on the premise that it will be used for sharing, analysis, and prediction. In a cloud environment, it is easy to move data and manage access rights, and it is possible to utilize data from various locations.

Phase 3: Implementation of digitalization that utilizes data to transform business processes and business models

[Use data in business processes]

Digitalization is about using data in your business processes. The goal here is to renovate the legacy system and create a business system that is easy for users to handle. In particular, let’s clarify what data to use and what goals to develop.

First of all, when renovating legacy systems so that data can be used in business processes, there is no big difference from the conventional development process. In particular, it is important to create a UX that makes it easy for users to operate the system and input and output data. As a result, the company’s operational efficiency is greatly improved.

[Proceed with digitalization quickly]

When it comes to business systems, we tend to think that we have to create something seemingly perfect. However, from a UX perspective, perfection can also be a disadvantage. In digitalization, first narrow down the value to be provided to users, and then release the system with only the minimum functions.

This makes it possible to reflect user feedback and reduce modification costs, resulting in a system that is easier to use.

In addition, with SaaS, digitalization can be easily realized in a subscription format for a few thousand yen per month. Many companies have similar issues in their business processes, and various SaaS services specialized for those issues are provided.

By understanding the business flow and switching to SaaS, not only does large-scale development become unnecessary, but data can be used flexibly by linking with other systems via APIs.

[Change business model]

When transforming a business using data digitized through digitization or data that has been accumulated in-house, the data can first be used for company decision-making.

Currently, various companies are developing platforms beyond their own industries, and we are entering an era where it is difficult to easily analyze and predict the external environment, such as the economic crisis and the spread of infectious diseases such as the new coronavirus. increase.

Now, it is important to grasp the current situation concretely through data and to make decisions quickly. Also, as digitization progresses, it is important to improve the UX of services like Netflix mentioned earlier, while leveraging the strengths of your own business, and to scale up your business using digital technology.

Phase 4: Aiming to realize DX by spreading digitization and successful experiences of digitalization throughout the company

If the successful experience of completing steps 1 to 3 is accumulated within the company, the organizational structure that promotes DX will be further strengthened, and it will be an opportunity to further advance digitization and digitalization.

To that end, we will visualize the results of steps 1 to 3 from a business perspective and communicate the results realistically to management and employees. We’re getting closer.

DX is not something that ends overnight. Also, the perfection of DX is almost non-existent, and companies must constantly change and transform. Creating an organization that can continue to transform the entire company using digital technology is the most important thing in promoting DX.

The government has set up DX promotion indicators to visualize DX actions

In order to overcome the current situation in which DX is not progressing, it is essential that management, business divisions, management divisions, development divisions, etc., work together and agree on what they want to achieve with DX. On top of that, it leads to the necessary actions according to the purpose, and promotes the DX of the entire company.

Therefore, the government has formulated the “DX promotion index” to take action toward the ideal state of the company.

The DX promotion index sets the issues related to DX that many Japanese companies are facing as index items, and while the parties concerned have discussions, share the recognition of the company’s current issues and the actions that should be taken, and raise awareness. It is designed as a tool of opportunity .

13. DX (Digital Transformation) Related Books

With the increasing attention of DX, many DX-related books have been created. Here are some popular books.

The easiest DX textbook The aggressive IT strategy to transform the business taught by a popular lecturer

We carefully explain the knowledge and execution steps necessary for DX from the perspective of the site. It is characterized by using a wealth of diagrams to explain so that you can start small, such as paperless digitization, and gradually aim to transform your business processes and business models. This is the easiest guidebook for DX that you can read smoothly without any technical knowledge. This book is recommended not only for working adults but also for students.

After Digital 2 UX and Freedom

In the post-digital society, the rules of the market will change. The keyword is “UX”. If social change is unavoidable, learn new rules quickly, determine your standing position, and launch a strategy. This book is a must-read for digital mastery.

A textbook for reform projects that nurtures leader

Even if they want to promote digital transformation, there are many companies that are at a standstill due to a shortage of human resources. This book captures DX from the perspective of human resource education and explains the know-how of human resource development that can survive the future digital competition.

14. Summary

When it comes to DX (digital transformation), its definition is ambiguous, and there are variations in the efforts of each company.

We will use digital technology within the company to bring about reforms and improve our superiority. To that end, isn’t it important not only to look at examples from other companies, but also to face issues within your own company and utilize digital technology with the right person in the right place ?

DX is a difficult undertaking, and it always requires a lot of trial and error until it penetrates. Fortunately, the environment for promoting DX, including SaaS, is in place, and it is now possible to start DX on a small scale at a low cost. Please use this article as a trigger to start small digitization and digitalization.



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