Many people think that DX should not end as a buzzword (temporary fad), but should lead to sustainable sales growth.
By reading this article,
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Therefore, this time, in order not to end DX as a buzzword (temporary fad), we will introduce three points for sustainable growth of DX. In addition, we will introduce information on “securing DX human resources”, which is indispensable for the continuous promotion of DX.
Table of Contents
- What is DX?
- 4 reasons why DX is attracting attention
- ① Because there is a risk of facing the “2025 cliff”
- ② To create an environment where employees can work comfortably
- ③ To respond to changes in the business environment
- ④Because there are many risks in the existing system
- Three points for sustainable growth of DX
- (1) Sharing management strategies and goals
- (2) Securing human resources to promote DX
- (3) Securing tools to promote DX
- [For DX staff] 7 steps to promote DX in the company
- Step 1: Display management strategy and vision
- Step 2: Get consent from top management
- Step 3: Create a system for promoting DX
- Step 4 Visualization and analysis of the current situation
- Step ⑤ Digitalization of business
- Step 6 Digitalization of business model
- Step ⑦ Evaluate and review the process
- 5 key points when promoting DX
- (1) Change the mindset of the person in charge
- (2) Introduce from the field
- (3) Securing full-time personnel for DX promotion
- (4) Building a system that tolerates failure
- ⑤ Agile development
- Recommended subsidies for DX
- [Must read for beginners] 2 recommended books related to DX
- ① [Books] The most easy DX textbook Aggressive IT strategy to transform the business taught by popular lecturers
- ② [Books] Textbook for DX human resources who create new value with digital technology
- DX support service
What is DX?
DX is “aiming to acquire a competitive advantage by transforming a company’s existing products and services, organizational structure, business model, etc. through the use of IT technology.” If you promote DX, you can expect not only to improve operational efficiency, but also to gain market superiority and provide new customer experiences, so you can expect improved performance.
4 reasons why DX is attracting attention
Why is DX so popular that it has become a buzzword in the first place? The reasons why the DX introduced this time is attracting attention are as follows.
- Due to fear of facing the ‘2025 cliff’
- To create a comfortable working environment for employees
- To respond to changes in the business environment
- Because the existing system has many risks
I will explain each.
① Because there is a risk of facing the “2025 cliff”
On September 7, 2018, the Ministry of Economy, Trade and Industry announced “DX Report: Overcoming the IT System ‘2025 Cliff’ and Full-scale Development of DX” (abbreviation: DX Report). It was pointed out that we are facing the 2025 cliff.
If DX cannot be realized, it is predicted that there will be an economic loss of up to 12 trillion yen annually after 2025 . On the other hand, it is also stated that if DX can be realized, real GDP will increase by more than 130 trillion yen in 2030.
With the extension of existing legacy systems (systems built with past technologies and mechanisms) limiting the growth of companies, it is necessary to quickly formulate a DX strategy and take action to minimize losses. is important for Japanese companies.
② To create an environment where employees can work comfortably
As the digitization of existing operations progresses through the introduction of DX, the productivity and operational efficiency of employees will improve, leading to an improvement in the working environment for employees. For example, in the past, it was common to make decisions and approve work on paper, so the payer and approver had to come to the office to complete the work in a few minutes.
However, by digitizing these tasks, the situation of “approval is not progressing due to the absence of the person in charge” is eliminated, and not only can things proceed smoothly, but the burden of the person in charge of coming to work has also been reduced.
In this way, the need is increasing because the introduction of DX can improve the working environment for employees.
③ To respond to changes in the business environment
The introduction of DX is necessary because the promotion of DX leads to the expansion of business opportunities. For example, there is a system that allows the purchase of Shinkansen tickets to be completed online.
In the past, tickets had to be purchased at the Midori no Madoguchi. However, by going online, even those who do not have a Midori no Madoguchi nearby or elderly people with physical disabilities can purchase tickets at home, which has expanded the customer base (expanded business opportunities).
There are many other examples, but the promotion of DX in this way will lead to the expansion of business opportunities.
④Because there are many risks in the existing system
The system that has been used for many years has two main risks, so it is necessary to promote DX.
This is a risk that may occur due to the end of the support period for OS, software, and hardware. This risk leads to the leakage of personal information and theft of confidential information, increasing the possibility of losing the trust of companies.
According to a report by the Ministry of Economy, Trade and Industry, more than 90% of a company’s IT budget is spent on maintaining aging systems. If we cannot invest in hiring IT human resources and transforming our business model using IT, it will be difficult for companies to maintain their superiority as the importance of DX is increasingly emphasized in the future.
In this way, there are various risks in continuing to use the existing system, so the introduction of DX is necessary as a solution.
Three points for sustainable growth of DX
How can DX not end as a buzzword (temporary fad) and lead to sustainable sales growth?
The three points for sustainable growth of DX introduced this time are as follows.
- Presentation of management strategies and goals
- Securing human resources to promote DX
- Securing tools to promote DX
I will explain each.
(1) Sharing management strategies and goals
Once management has decided on initiatives to promote DX, share goals and strategies company-wide. Also, present the data that underpins your goals and strategies.
If you proceed without clarifying the purpose of DX, you may blindly introduce digital tools and end up with only costs. In that case, you may not be able to continue DX on the way. Therefore, it is important to share the goal of DX throughout the company.
(2) Securing human resources to promote DX
In promoting DX, let’s secure human resources for promoting DX. This is because if there are no people who can lead DX, there is a possibility that it will end halfway without knowing where to go .
There are various people such as those who manage the promotion of DX and those who are involved in system construction and introduction. However, when promoting DX with only in-house human resources, it takes time and money to educate, so there is also a means to procure from the outside.
In any case, after considering the cost and time allocation for education, think about how many people you need to promote DX, and whether you need to procure them from the outside .
(3) Securing tools to promote DX
In addition to human resources, we need resources to promote DX. So make sure you have the tools to drive DX. There are various means for promoting DX, such as AI, IoT , VR , and AR, but blindly introducing tools will increase costs.
Therefore, after deciding the goals and strategies of DX, you can proceed efficiently by introducing the means and tools suitable for them .
[For DX staff] 7 steps to promote DX in the company
After grasping the points for sustainable growth of DX, let’s learn the specific steps to promote DX and connect it to action.
The procedure for promoting DX introduced this time is as follows.
- Posting management strategies and visions
- Get buy-in from top management
- Creating a system for promoting DX
- Visualization and analysis of the current situation
- Digitalization of operations
- Digitalization of business models
- Process evaluation/review
I will explain each.
Step 1: Display management strategy and vision
In order to promote DX, it is necessary to have a management strategy and vision such as “Why are you working on DX?” This is because if you proceed without clarifying the goal of DX, you may blindly introduce various digital tools, which may end up costing you more.
In order to create new value that enhances competitiveness in a changing society, it is important to create and share a specific goal of “what to aim for with DX . “
Step 2: Get consent from top management
DX can also bring about major changes in companies themselves. Therefore, the understanding and consent of the management is required. Even when developing a new business with the realization of DX, the consent of the management is required, so management will also be required to understand the necessity of DX.
Step 3: Create a system for promoting DX
Let’s build an organizational structure that can continue to promote DX. It is necessary to have a system that can smoothly implement the following cycle.
|( 1 ) Create a hypothesis → (2 ) Implement measures → (3 ) Verify using data|
It is also important to secure and develop human resources responsible for DX, and to build a coordinated organizational operation system.
Step 4 Visualization and analysis of the current situation
Visualize and analyze the current state of your own system, such as an existing complicated system, and improve it. By understanding the current situation such as “Is the system coordinated?”, it becomes clear whether the current system needs to be reviewed.
Step ⑤ Digitalization of business
Digitize your analog business. The use of digital technology, such as the active introduction of web applications and cloud services, will lead to more efficient operations and reduced costs.
Step 6 Digitalization of business model
By incorporating digital technology into existing businesses, new profits and value can be expected to be created. If a new business model is realized, there will also be a possibility of conversion to a new business.
Step ⑦ Evaluate and review the process
In order to promote DX, it is important to evaluate and review the process on a regular basis. Evaluate the progress of DX and its effects, and repeatedly review and improve the process in order to realize DX more efficiently.
5 key points when promoting DX
After learning the specific steps to promote DX, let’s hold 5 points to make DX smoother. The important points of DX introduced this time are as follows.
- Awareness reform of those in charge
- Introduce from the field
- Secure full-time personnel for DX promotion
- Building a system that tolerates failure
- Agile development
I will explain each.
(1) Change the mindset 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 DX, and what kind of change and effect can be expected”, and then involve the entire company. Let’s proceed with DX .
(2) Introduce from the field
When incorporating DX into a company, let’s work from the site. This is because the results will be reflected more quickly if the DX conversion is started from the site rather than starting from the manager.
There are two reasons why DX in a large organization does not go well: “not involving the field” and “the scope of the goal is too large”. In order to expand the introduction of DX, it is important to “recognize the gap between the goal and the current situation and subdivide the steps to eliminate it”.
By accumulating small successful experiences in subdivided steps, not only the site but also the entire organization will find the value of DX conversion and greatly expand the possibility of expansion. If you want to realize DX for the entire organization, start with the site where the impact of DX introduction is easy to understand, accumulate small successes, and expand to the entire organization .
(3) Securing full-time personnel for DX promotion
When appointing DX human resources, it is best to make them dedicated to DX rather than concurrently with regular work . This is because by appointing them as full-time employees, they can be made aware of what the company recognizes as an important management issue.
(4) Building a system that tolerates failure
When appointing DX human resources, it is also essential to build a system that allows failure. This is because if a culture that does not tolerate failure permeates the organization, the person in charge will atrophy and will not be able to come up with bold ideas and measures.
Therefore, it is important to build a system in which the idea of “accepting failure and how to make use of it in the next action” permeates instead of blaming people who have failed .
⑤ Agile development
Agile development, which is one of the current mainstream system development methods, is the best way to work on development from a small scale without fear of failure.
There are two reasons. First, when developing an effective system for DX, adopting agile development makes it possible to respond to sudden changes in specifications and make it easier to correct the course .
The second reason is that agile development is effective in cultivating DX human resources by accumulating small successful experiences from a small start, as introduced in the third part of “Four Points for Recruiting DX Human Resources” . .
Recommended subsidies for DX
We need money to grow DX sustainably. This is because cutting-edge technologies such as AI and IoT are important for the realization of DX. Therefore, let’s make good use of subsidies that are useful for DX and grow DX sustainably.
Details are explained in the article below. Please take a look.
[Must read for beginners] 2 recommended books related to DX
From here, we recommend two books for DX beginners: ” The easiest DX textbook, aggressive IT strategy to transform your business taught by a popular lecturer ” and ” Textbook for DX human resources who create new value with digital technology “. to introduce.
① [Books] The most easy DX textbook Aggressive IT strategy to transform the business taught by popular lecturers
The knowledge and execution steps required for DX are carefully explained from the perspective of the site. Another point is that it explains using a wealth of diagrams so that you can promote DX on a small scale and aim to gradually transform your business processes and business models.
This is an introductory book for DX human resources, targeting everyone from DX promoters to those who are interested in cutting-edge technology.
② [Books] Textbook for DX human resources who create new value with digital technology
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 more than 3,000 major Japanese companies.
45 DX cases by industry are also posted, so you can learn more specifically about DX human resources.
DX support service
So far, I have introduced the points that make DX successful continuously, but even so, DX takes a lot of time and money. Do you have troubles such as “It is difficult to work on DX in-house”?
The “DX support service” is recommended for companies with such problems. Various services are available, from support by the national and local governments to support services provided by companies.
This time, in order not to end DX as a buzzword (temporary trend), I introduced three points and promotion points that make DX successful. Rather than seeing DX as a transient boom, we live in an era where the survival of companies is at stake unless they are promoted in the medium to long term.