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How to realize work style reform with DX? Introducing the four steps to realization and case studies

In this way, many people may not know the details about the relationship between DX and work style reform.

However, now that new ways of working, including telework, are attracting attention due to the effects of the new coronavirus, DX using IT technology is essential to improve productivity and create an environment that is easy to work in.

In this article, we will explain why DX is necessary and 15 recommended DX support company services!

Table of Contents

  • Background behind the promotion of work style reform
    •  Declining labor force
    •  declining birth rate
    • low labor productivity
    • Impact of COVID-19
  • 4 reasons why DX promotion is necessary
    • Wall problem in 2025
    • Improving profits and customer experience
    • Resolving the shortage of human resources
    • Response to globalization
  • What is the relationship between DX and work style reform?
  • Contents of the DX promotion index
    • Framework for promoting DX
    • Status of DX promotion initiatives
    • Framework for IT system construction
    • Efforts to build IT systems
  • Four stages to realize work style reform and DX promotion
  • Effect and future of “telework”, a representative example of DX x work style reform
  • Introducing examples of work style reforms promoted with DX
    • Large company “Softbank: Automating data entry to reduce work load, reduce 200 hours per month”
    • SME “Nisshin Kogyo Co., Ltd.: 40% increase in operating rate with MCM System development”
    • Overseas “Shake Shack: Efficiency of staff work with automatic ordering terminal and online ordering system”
  • 5 tools to introduce to realize work style reform
    •  UiPath | Easy scenario creation of business flow using RPA
    • Auto Browser Master | Make your work more efficient by automating routine work
    • Extension Power | Level up the environment surrounding office phones
    • FreshVoice|Web conferencing system that can connect up to 200 locations simultaneously
    •  Googleworkspace | The best tools for remote work in one package
  • summary

Background behind the promotion of work style reform

There are four reasons behind the promotion of work style reform.

  1.  Declining labor force
  2.  declining birth rate
  3. low labor productivity
  4. Impact of COVID-19

I will explain each.

 Declining labor force

Labor shortages have become a major problem in modern society, especially in small and medium-sized enterprises.

Not only is the decline in the working population due to the declining birthrate and aging population expected to accelerate in the future, but it is also necessary to improve turnover due to a malicious work environment due to long working hours and overtime.

 declining birth rate

One of the reasons for the declining birth rate is the working environment that makes it difficult for women to balance childcare and work . The total fertility rate, which was about 2.1 in the 1970s when the second baby boom occurred, hit a record low of 1.26 in 2005.

For this reason, many companies are currently working to spread and promote the use of childcare leave systems.

low labor productivity

In 2017, Japan’s labor productivity per hour was $47.5, ranking 20th among the 36 OECD countries and the lowest among the 7 developed countries .

Taking this seriously, the importance of considering competencies that share and formalize highly productive human behaviors and patterns is being emphasized.

Impact of COVID-19

Due to the impact of the new coronavirus, the working environment has changed significantly compared to before. Telework is a typical example.

It is possible to work from home without going to the office , which has the effect of improving work-life balance by reducing commuting time and reducing office costs .

4 reasons why DX promotion is necessary

There are four reasons why DX promotion is necessary.

  1. Wall problem in 2025
  2. Improving profits and customer experience
  3. Resolving the shortage of human resources
  4. Response to globalization

I will explain each.

Wall problem in 2025

The 2025 Cliff is a quote from the DX Report released by the Ministry of Economy, Trade and Industry in 2018.

While core systems that have been in use for 21 years or more now account for 20% of the total, it is predicted that this will increase to 60% by 2025, and system maintenance and management costs will increase and account for more than 90% of the IT budget. I’m here.

In addition, if these issues cannot be overcome, economic losses of up to 12 trillion yen per year from 2025 (approximately three times the current level) may occur . For this reason, drastic reform and operational improvement of the existing system by 2025 are essential.

Improving profits and customer experience

Promoting DX leads to improved profits and customer experience. Due to the impact of the new coronavirus, there is a growing interest in digitalization, such as the need to establish non-face-to-face business processes.

Below are the results of a survey on post-pandemic digital awareness.

The online usage rate, which was 42% in 2019, increased to 60% after the pandemic, demonstrating the need for higher digital technology than before.

Improving profits and customer experience is an essential element for differentiating from other companies and increasing competitiveness, and is a major purpose of accelerating DX.

Resolving the shortage of human resources

Promoting DX will help solve the shortage of human resources. For example, by automating personnel operations and customer service through RPA, the number of personnel can be reduced.

In addition, RPA is good at routine work (work with a fixed flow) and is not suitable for work that requires irregular responses. It is required to efficiently streamline the area where DX is possible.

Response to globalization

In Japan, the movement of DX has not progressed yet compared to other countries. The development of ICT technology has facilitated the transmission and reception of information, and the competitive environment is more strongly affected by globalization than before.

Against this background, in order for companies to gain international competitiveness, it is essential to actively promote DX and create new value .

What is the relationship between DX and work style reform?

By using the DX promotion index, you can self-diagnose how far your company’s DX is progressing.

The DX promotion index is based on the points pointed out in the “DX Report” announced in September 2018, and management and related parties share the recognition of the current situation and issues for the promotion of DX, and understand how to proceed. The purpose is to

For each item, it is assumed that executives, business departments, DX departments, IT departments, etc. will discuss and answer.

Contents of the DX promotion index

The following is an image diagram showing the contents of the DX promotion index.

Specifically, it consists of the following two items.

  • Indices related to management style and mechanism for promoting DX 

“ Framework for promoting DX ” (qualitative index), “ Status of efforts to promote DX ” (quantitative index)

  • Indicators related to the construction of IT systems that serve as the foundation for realizing DX

“ Framework for building IT systems ” (qualitative indicators), “ Status of initiatives for building IT systems ” (quantitative indicators)

Framework for promoting DX

In the DX promotion framework (qualitative indicators: non-numerical factors that determine the level of progress toward a specific goal), management methods and mechanisms for promoting DX, from vision and top management commitment to business implementation is shown.

Status of DX promotion initiatives

In this item, you can grasp the degree to which your company’s DX has strengthened its competitiveness and the status of DX initiatives as a quantitative index (evaluation based on numerical values).

Framework for IT system construction

The framework for building an IT system is divided into “building an IT system as a foundation for realizing a vision” and “governance/structure”. In the former, the elements required for the IT system and the analysis and sorting of IT assets are divided into details and evaluated .

In the latter, we diagnose the company structure level for promoting DX, such as human resource collaboration for data utilization .

Efforts to build IT systems

In this item, the status of efforts to build IT systems is evaluated using specific numerical values .

Comprehensively diagnosing the above four items, ” What kind of value will be created for customers with DX? ” , ” Why is this reform necessary ? ” Specific measures and action plans can be shared within the company.

Four stages to realize work style reform and DX promotion

The following is an image diagram that organizes the approach to realizing work style reform and the promotion of DX, which are corporate management issues, into four stages.

It is important to have a common understanding and promotion within the company of which of the following four stages the company’s situation corresponds to, which stage to aim for by when and how.

1. Location-free (create an environment where you can work anywhere, reduce the risk of infection, and realize business continuity)
2. Information sharing/collaboration (necessary information can be obtained and used with security guaranteed when needed, realizing the distribution of information necessary for business)
3.Improve productivity (Improve productivity with PDCA based on KPI, processes that are seamlessly linked and visualized between organizations by digitizing business processes)
4. Expand business by realizing DX across the company (Transform business activities by realizing DX and work style reform, and expand business by promoting data-driven management)

 

Effect and future of “telework”, a representative example of DX x work style reform

The image below summarizes the effects of introducing telework for companies.

The effects of telework can be divided into the following five categories.

1.Improve business productivity (e.g. use telework to quickly respond to customer inquiries)
2.Prevention of new employment and turnover (Preventing turnover and making it easier to hire excellent human resources by creating an environment that is comfortable to work in)
3. Improving the work-life balance of employees (e.g., using the time required for commuting to sleep for health management and spending time with family)
4. Cost reduction and power saving (office and related cost reduction)
5. Ensuring business continuity (Working from home allows business to continue even if an emergency occurs)

In addition to the benefits of introducing telework, there are also various challenges. A survey conducted by the Japanese Trade Union Confederation (Rengo) in June 2020 found that there are issues in communication, work efficiency, time management, etc.

How to make internal communication and employee management successful is important for utilizing the merits of telework.

Introducing examples of work style reforms promoted with DX

There are three examples of how DX has promoted work style reform.

  1. Large company “Softbank: Automating data entry reduces work load and reduces 200 hours per month”
  2. SME “Nisshin Kogyo Co., Ltd.: 40% increase in operating rate with MCM System development”
  3. Overseas “Shake Shack: Efficiency of staff work with automatic ordering terminal and online ordering system”

Large company “Softbank: Automating data entry to reduce work load, reduce 200 hours per month”

  • In the past, the contents of request forms were manually entered into a dedicated system, and 10 people handled nearly 6,000 requests each month.
  • → Issues such as input errors and differences in processing speed
  • DX the processing of the “lost item notification request form” that arrives when the mobile phone is dropped, and reduce the number of people in charge to one

SME “Nisshin Kogyo Co., Ltd.: 40% increase in operating rate with MCM System development”

  • Developed the MCM System to visualize the operating status of the manufacturing line
  • It became possible to grasp the operation rate and stoppage status on the monitor, and succeeded in identifying lines with low productivity
  • Raised the utilization rate from 50% to 90%
  • Accurately determine the number of orders that can be received by accurately grasping the operating rate

Overseas “Shake Shack: Efficiency of staff work with automatic ordering terminal and online ordering system”

  • Introduced an automatic ordering terminal and an online ordering system to streamline the time and effort of customers and staff involved in ordering.
  • → Significant reduction in labor costs and 15% improvement in unit price per customer

5 tools to introduce to realize work style reform

From here, we will introduce five tools that should be introduced to realize work style reform.

  1. UiPath | Easy scenario creation of business flow using RPA
  2. Auto Browser Master | Make your work more efficient by automating routine work
  3. Extension Power | Level up the environment surrounding office phones
  4. FreshVoice|Web conferencing system that can connect up to 200 locations simultaneously
  5. Googleworkspace | The best tools for remote work in one package

I will briefly explain each.

 UiPath | Easy scenario creation of business flow using RPA

 Benefits

  • Providing an environment for developing automation tools
  • Drag and drop activities (movements) to easily build workflows with robots
  • Free for companies with less than 250 employees/machine and annual sales of less than 500 million yen

Recommended companies to introduce

  • Companies with little knowledge of RPA
  • Companies with less than 250 employees/machine and annual sales of less than 500 million yen

Auto Browser Master | Make your work more efficient by automating routine work

Benefits

  • Automate Internet Explorer startup, access to client websites, etc.
  • →Dramatically streamlined data exchange with business partners via the Internet
  • It is also possible to automate tasks using Excel and Windows applications.

Recommended companies to introduce

  • Companies that want to reduce the amount of work
  • Companies that want to ensure business continuity (BCP)

Extension Power | Level up the environment surrounding office phones

 Benefits

  • Convert existing internal portal site to CTI without modification
  • Easy operation with just a click on the multifunction phone
  • Make calls from phone numbers on any website
  • Integrated management of the address book for smooth communication inside and outside the company

Recommended companies to introduce

  • Companies that want to prevent loss of profit opportunities even with telework
  • Companies that want to CTI their internal site at a low price
  • Companies that want to make their office phone environment more convenient

FreshVoice|Web conferencing system that can connect up to 200 locations simultaneously

 Benefits

  • Robust security used by banks, insurance companies, government offices, etc.
  • Easy online meeting with high image quality and high sound quality
  • 14 days free trial available

Recommended companies to introduce

  • Companies that want to hold online conferences with strong security
  • Companies that want to promote work style reform, operational efficiency, and cost reduction

 Googleworkspace | The best tools for remote work in one package

Benefits

  • Business-ready tools such as Gmail, Calendar, Documents, etc.
  • Message platform Hangouts Chat and video conferencing tool Hangouts Meet are also available
  • Basic is ¥680/month per user. High cost performance

Recommended companies to introduce

  • Companies that want to utilize business-ready tools at low cost

summary

This time, I explained the relationship between DX and work style reform. In order to promote work style reform, we must focus on utilizing the power of DX, reducing work burdens, and improving efficiency.

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