In Japan, where labor shortages are a concern, digital transformation is being emphasized in all industrial fields. DX (Digital Transformation) is attracting attention .
In 2020, the government launched the “DX Certification System” as a measure to support companies working on DX . Therefore, this time, we will explain the outline of the DX certification system, the certification level, and the benefits of becoming a DX certified business operator!
Table of Contents
- What is a DX Certified Business Operator?
- What is the DX certification system?
- Overview of the DX certification system
- Digital Governance Code and DX Certification
- Background of the establishment of the DX certification system
- 4 Certification Levels of the DX Certification System
- 4 benefits of becoming a DX certified business operator
- (1) Increased credibility as a company
- (2) Eligible to apply for measures related to DX
- (3) Receive tax and financial support
- ④ Clarify your company’s challenges in promoting DX
- How to become a DX certified business operator?
- 4 steps to apply for the DX certification system
- 8 points of application by Ministry of Economy, Trade and Industry
- Points to note when applying
- DX certification logo mark
What is a DX Certified Business Operator?
A DX certified business operator refers to a “ company that has acquired the DX certification system” .
What is the DX certification system?
The DX certification system is a certification system based on the “Law for Partial Revision of the Act on Promotion of Information Processing” enforced in 2020.
We certify business operators that make excellent efforts based on the guidelines established by the government that show how to use the system strategically in corporate management .
*Guidelines for the strategic use of systems in corporate management: Guidelines for the operation and management of information processing systems by the Ministry of Economy, Trade and Industry
The Information Processing Promotion Agency (IPA), which is responsible for the secretariat of the DX certification system, will handle the certification examination work, and the final decision will be made by the Ministry of Economy, Trade and Industry.
Overview of the DX certification system
|Target of the system||All businesses (corporations including public interest corporations and sole proprietors)|
|Application period||Available all year round
*Approx. 60 business days from application acceptance to notification of certification results
|valid period||2 years
*When renewing, submit an application for certification renewal 60 days prior to the expiration of the 2 years.
Digital Governance Code and DX Certification
What is the Digital Governance Code?
|Principles for companies to respond to social changes brought about by digital technology and act based on dialogue with stakeholders. *Stakeholders: Business managers in corporate management|
In other words, it can be said that companies should practice to promote DX and increase value .
The items in the application form for the DX certification system correspond to the items in the “(1) Basic matters” part of the Digital Governance Code . The following six items must be filled out in the application form.
|Items of the Digital Governance Code||Items on the application form for the DX certification system|
|Management vision and business model||
|Measures related to organization building, human resources, and corporate culture||
|Measures related to the development of an IT system and digital technology utilization environment||
|Outcomes and key performance indicators||
Background of the establishment of the DX certification system
The DX certification system is a measure for the government to support companies working on DX, and the purpose is to promote DX of Japanese companies .
In the “DX Report” released by the Ministry of Economy, Trade and Industry on September 7, 2018, the word “2025 cliff” was used to warn against the IT system infrastructure of Japanese companies, and Japan will not advance DX. It has become clear that the economic loss of up to 12 trillion yen per year after 2025 may occur due to
Triggered by this, the government will focus on promoting DX. However, according to the 2019 IPA “Survey on the Functions and Roles of Digital Transformation Promotion Human Resources,” only about one-third of companies used the term DX internally.
The DX certification system was established to improve the current situation, where the word DX is attracting attention, but many companies are not working to promote DX.
4 Certification Levels of the DX Certification System
DX certification levels are divided into the following four levels.
The level certified by the DX certification system is “DX-Ready”. DX-Emerging companies and DX-Excellent companies are selected from among DX certified operators.
According to the application requirements for the DX certification system , the status of DX-Ready refers to the following status.
The management clarifies how to transform the company by utilizing data using digital technology, creates a strategy for realizing it, and clarifies the necessary organization and human resources for the company as a whole. A state of readiness to indicate measures for the development of IT systems and to manage the progress of strategies
In other words, “DX-Ready” is the level of “a state in which companies are ready to transform their business through digital technology. ”
4 benefits of becoming a DX certified business operator
The four benefits of becoming a DX certified business operator are as follows.
- Increase credibility as a company
- Eligible to apply for measures related to DX
- Receive tax and financial support
- Clarify your company’s challenges in promoting DX
I will explain each.
(1) Increased credibility as a company
If you become a DX certified business, your company name will be posted on the list of certified businesses on the Information-technology Promotion Agency (IPA) official website .
By posting on the site , credibility as a company increases and it becomes an appealing point to business partners and customers . Also, if the efforts to DX are recognized, it will lead to the improvement of the brand power of the company .
(2) Eligible to apply for measures related to DX
In order to be selected as a “DX Featured Company” or “DX Brand”, it is a condition to acquire DX certification.
|DX Featured Company||From the perspective of expanding the base of DX, among the companies that have not been selected as DX stocks, companies that received a high overall evaluation and companies that are implementing noteworthy initiatives|
|DX stock|| A company that has built a mechanism to promote DX in-house and is able to improve corporate value through excellent digital utilization
* Listing on the Tokyo Stock Exchange is a condition
If it is selected as a “DX Featured Company” or “DX Brand”, its corporate value will increase further.
(3) Receive tax and financial support
Acquisition of DX certification is also a requirement for the “DX investment promotion tax system” . It is a system that allows you to receive tax credits and special depreciation measures for investments in digital technology necessary for DX, which can reduce the burden of investment.
In addition, DX-certified SMEs can receive loans at interest rates lower than the standard for capital investment related to DX.
④ Clarify your company’s challenges in promoting DX
By preparing for the application for DX certification, you can grasp the status of your company’s DX promotion . Since the questions in the application form are set in detail, the company’s issues will also become clear.
How to become a DX certified business operator?
4 steps to apply for the DX certification system
The application procedure for the DX certification system is as follows.
The certification result will be notified by e-mail. It takes about 60 business days after the application is accepted until the certification result is notified.
8 points of application by Ministry of Economy, Trade and Industry
include examples of inadequacies in each item in the application form/check sheet. Please check before filling out the application form.
(1) Direction of corporate management and direction of utilization of information processing technology
|・Is it possible to confirm that the explanation is based on the decision of the decision-making body?|
(2) Concrete measures (strategies) for corporate management and utilization of information processing technology
| ・Is it possible to confirm the concreteness of the strategy and the content that incorporates data utilization?
・Is the content different from (1)?
(3) Presenting a system for effectively promoting the strategy
| ・Whether it is an excerpt from the publication medium that shows the strategy ・Whether
the relationship between the organization and the strategy is clarified
・Whether it is possible to confirm that the publication medium has obtained institutional approval
(4) Concrete measures for improving the environment for utilizing the latest information processing technology
| ・Is it an excerpt from the published media showing the strategy?
・Is the relationship between the content of the initiative and the strategy clarified?
(v) Indicators related to strategy achievement status
|・Is there an indicator that can explain the relevance to the strategy?|
(6) Dissemination of information necessary for promoting effective strategies by the Chief Executive Officer
|・Whether it is possible to confirm that it is a message from the management|
(7) Grasping of issues in information processing systems used by business operators through the lead role of the Chief Administrative Officer
|・Whether it is possible to confirm the leadership of the management ・
In the case of identifying the issue independently, is not only an explanation of the process for grasping the issue, but also whether a document that shows the result is attached?
(8) Clear formulation and implementation of cybersecurity measures
| ・Can you grasp not only the viewpoint of the audit but also the details of
Points to note when applying
Before filling out the certification application form, organize the items to be filled in . Also, if you need supplementary materials , you need to prepare them.
DX certification logo mark
DX certified businesses will be able to use a logo mark to appeal that their company is actively working on DX.
In this way, if you become a DX certified business operator, you can externally appeal your proactive efforts to DX. This can be expected to improve the credibility and brand power of the company.
How about reviewing your company’s management vision and operation system and aiming to acquire DX certification?