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2 steps for local governments to promote DX | Introducing 4 points and 3 successful cases!

In Japan, where labor shortages are a concern, digital transformation is being emphasized in all industrial fields, and an increasing number of companies are promoting DX (Digital Transformation) .

Furthermore, as society undergoes major changes due to the epidemic of the coronavirus, the need for DX has spread to local governments, and “municipal DX” has come to attract attention.

Therefore, this time, we will introduce the significance of local government DX, examples, and points for promoting it.

Table of Contents

  • What is DX?
    • DX definition
  • The background behind the promotion of local government DX, what is DX in local governments?
    • Significance of local government DX indicated by the Ministry of Internal Affairs and Communications
    • What is required of local government DX
    • Priority actions in the local government DX promotion plan
  • Current state of municipal DX
    • 4 reasons why local governments’ DX is not progressing
    • Why is DX needed in local governments?
  • How to proceed with local government DX
    • Step 1: Know and be interested
    • Step 2: Feel the need
  • Points and issues in promoting local government DX
    • ① Development of DX human resources
    • (2) Building a cross-sectional system
    • (3) Long-term plans and initiatives
    • ④ Collaboration between local governments
  • Municipality DX example
    • Hiroshima Prefecture ~Hiroshima Sandbox~
    • Ehime Prefecture ~ Ale Lab Ehime ~
    • Ishikawa Prefecture ~ LoGo form electronic application ~
  • Recommended books to deepen your understanding of DX
  • summary

What is DX?

DX definition

In 2018, the Ministry of Economy, Trade and Industry of Japan issued the “Guidelines for Promoting Digital Transformation (DX Promotion Guidelines)” and defined DX in the business scene as follows.

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.

 

Natural disasters and the coronavirus epidemic have drastically changed society and the lives of residents. Therefore, local governments are also required to reform their business content and services, and many local governments are working on DX.

The background behind the promotion of local government DX, what is DX in local governments?

Significance of local government DX indicated by the Ministry of Internal Affairs and Communications

The Ministry of Internal Affairs and Communications states the necessity of DX as follows in the Local Government Digital Transformation (DX) Promotion Plan (2020).

In response to the novel coronavirus, various issues such as the inability become apparent . As a driving force for the “new normal”, there is a need for a digital transformation .

In addition, it is the vision of the society to be aimed at indicated by the “Basic Policy for Reform toward the Realization of a Digital Society” decided by the Cabinet in 2020.

“A society where people can choose services that meet their needs through the use of digital technology, and where diverse happiness can be achieved. Digitalization that is kind to people and leaves no one behind.”

It is said that the significance of local government DX is great for the realization of The promotion of DX by local governments that are familiar to residents will lead to the realization of DX in society as a whole.

What is required of local government DX

What the Ministry of Internal Affairs and Communications is asking local governments to do is roughly divided into the following two things.

  1. Utilize digital technology and data to increase the convenience of services for residents
  2. Streamline operations by introducing digital technology and further improve services with human resources

The introduction of digital technology does not only improve the quality of services. Digitization makes work more efficient and reduces the work burden on staff.

As a result, we will be able to use our labor force to further improve our services and aim to create new value.

Priority actions in the local government DX promotion plan

The Ministry of Internal Affairs and Communications has set six priority initiatives for promoting local government DX.

  1. Standardization and sharing of information systems
  2. Promoting the spread of My Number Cards
  3. Online administrative procedures
  4. Promoting the use of AI/RPA
  5. Promotion of telework
  6. Thorough security measures

(1) Standardization and sharing of information systems

There is a demand for standardization and commonality to shift the central business system of local governments to a system that complies with national standards.

Any municipality will be able to receive the same services regardless of the size or region of the municipality.

Standardization and commonality of information systems require reconstruction of the entire system, which takes time, so it is important to work systematically.

(2) Promoting the spread of My Number Cards

The My Number Card, which enables online identity verification, will be the basis for the digitization of user interfaces (mechanisms for exchanging information between users and computers).

If the My Number Card becomes widespread , procedures for receiving services and support will become quicker and smoother.

(3) Online administrative procedures

Many local governments do not have a system that enables online use of administrative procedures, and the current situation is that procedures cannot be completed without going to the counter.

If administrative procedures are made online, residents will be able to receive services and support easily and conveniently.

Prioritize services that have a large number of cases and are in high demand by residents.

④ Promoting the use of AI and RPA

The use of digital technologies such as AI and RPA leads to the achievement of operational efficiency through the automation of clerical work. Digital technology should be actively used to address the issue of a shortage of human resources due to the declining birthrate and aging population.

⑤ Promotion of telework

If it becomes possible to telework regardless of time or place, employees will be able to choose a work style that suits them individually. Telework should be promoted as a countermeasure against the new coronavirus.

⑥Thorough security measures

As digitalization progresses and data is actively used, the risk of personal information being leaked due to cyberattacks, etc., increases.

Therefore, it is necessary to review and strengthen security measures at the same time as promoting DX.

Current state of municipal DX

4 reasons why local governments’ DX is not progressing

(1) Insufficient understanding of local government DX among staff

The lack of understanding and lack of interest in DX among local government officials is a major issue.

In order to achieve one of the purposes of municipal DX , which is to further improve services and create new value, ideas that are not bound by conventional systems are necessary. There is a current situation that ideas do not come out because they do not have

In addition, many employees can not grasp the relevance of their work and DX, making it difficult to spread DX to the entire municipality.

②Financial circumstances such as budget

In order to realize local government DX, funds are required to introduce digital technology.

Therefore, there is a problem that local governments that are in a severe financial situation do not try to work on DX. Gaining an understanding of the necessity and possibilities of DX will lead to the resolution of issues.

(3) Difficult to introduce DX to operations related to resident information

Data related to resident information is separated from other networks, so the procedures for using the data are complicated, which is a barrier to improving operational efficiency.

In addition, when using external services, it is necessary to anonymize data that includes personal information, so there is the problem that it cannot be used to identify individuals.

 ④ Difficult to deal with individual local governments

From the standpoint of a company (IT vendor) that sells IT products, the fact that each municipality has a different resident information system is an issue in expanding municipal DX.

This is because if the system is not unified, it will be necessary to customize the product introduced in one municipality in order to exhibit it in another municipality.

From this point as well, we can understand the importance of system standardization.

Why is DX needed in local governments?

In Japan, where the birthrate is declining and the population is aging, there are concerns about labor shortages and shortages of human resources.

In addition to that, the tight financial situation is a problem. However, if personnel expenses are reduced without changing the work content, the work burden on the staff will increase.

Therefore, DX is required to improve the efficiency of operations. DX also reduces the work burden on staff.

In addition, due to the epidemic of the new coronavirus, local governments are now required to change . In the past, procedures were mainly done on paper, but digitalization is progressing, such as making online procedures possible.

How to proceed with local government DX

There is a difference in knowledge and ownership in promoting DX between local governments and companies. In other words, we need to take a step before the corporate DX promotion model. Let the person in charge achieve these and promote the local government DX.

Step 1: Know and be interested

In order to solve the problem of lack of understanding of staff in local government DX, it is necessary to know the possibilities of DX and get them interested .

In learning what can be achieved with DX, it is also important to know the examples of other local governments and their effects .

If the information and knowledge obtained by the person in charge is shared with the staff and the relevance between each department and DX is understood, it will lead to an increase in the interest of the staff in local government DX.

Step 2: Feel the need

In order to be proactive toward the realization of local government DX, it is important to make people feel the need.

By knowing specific success stories, you can expect to understand the necessity of DX and improve your sense of ownership .

By having staff members have a sense of ownership regarding DX, it will be possible to aim for the realization of DX not only in departments but also in the entire municipality.

Points and issues in promoting local government DX

① Development of DX human resources

In order to realize local government DX, it is essential for staff to have knowledge and understanding of DX.

What is needed is DX human resources who have knowledge of data and digital technology and can make efforts to transform local governments .

However, even in general companies, there is a shortage of DX human resources, and it is difficult to secure sufficient DX human resources . Therefore, local governments will need to develop DX human resources, such as deepening the staff’s knowledge of DX.

(2) Building a cross-sectional system

Instead of realizing DX in a part of the municipality, let’s aim to realize DX in the whole municipality.

Let’s start by understanding the situation of the entire municipality and working on small-scale measures. The surest way to proceed is to gradually expand the scope.

(3) Long-term plans and initiatives

It takes a lot of time and effort to transform local governments through the promotion of DX.

The efficiency of operations can be felt immediately, but it is said that it will take several years for the effects of improved service quality and convenience to appear. Therefore, a long-term perspective is the key to realizing local government DX .

④ Collaboration between local governments

Each municipality is required not only to realize DX, but also DX for society as a whole .

If cross-cutting DX can be achieved, society as a whole will become richer. For this reason, it is important to standardize and share systems.

Municipality DX example

Hiroshima Prefecture ~Hiroshima Sandbox~

The “Hiroshima Sandbox” launched by Hiroshima Prefecture in 2018 was created with the aim of using big data and the latest technology to help companies in Hiroshima Prefecture work to improve production efficiency and create new value. .

Companies and human resources with the technology and know-how for that purpose are invited from outside the prefecture, and it is a place for trial and error to solve industrial and regional issues.

Ehime Prefecture ~ Ale Lab Ehime ~

“Yell Lab Ehime”, which is the core initiative of Ehime Prefecture’s comprehensive digital strategy formulated by Ehime Prefecture in 2020, is a platform for solving familiar issues in Ehime with their own power.

Communities with issues gather and work together to solve issues, such as launching projects. You can also receive support from Ehime Prefecture.

In 2020, the administrative procedure digitization tool “LoGo Form Electronic Application” was launched in Kaga City, Ishikawa Prefecture.

The administrative procedure digitization tool “LoGo form electronic application” allows administrative procedures to be completed online without paper procedures at the counter, streamlining the work of local government officials, and improving convenience for residents.

Recommended books to deepen your understanding of DX

  • The easiest DX textbook

He explains the knowledge and actions necessary for DX from the basics such as “What is DX?” It is easy to understand using diagrams.

  • Textbook for DX human resources

This is a book on the theme of DX human resources by two people from Standard Co., Ltd., which provides DX human resource development services to nearly 500 companies after interviewing over 3,000 major Japanese companies.

45 DX cases by industry are also posted, so you can learn more specifically about DX human resources.

summary

As society undergoes major changes due to the epidemic of the coronavirus, the need for DX has spread to local governments, and “Municipal DX” has attracted attention.

If DX is realized in local governments, our lives will become richer. First of all, please start by getting interested in DX and deepening your knowledge and understanding.

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