Isn’t there a lot of people who want to know the difference between DX conversion and IT conversion?
If you can understand the difference between DX conversion and IT conversion,
|・You can efficiently promote DX conversion after prioritizing DX conversion and IT conversion
・Be able to talk with stakeholders (customers, employees, shareholders, etc.)
・Knowledge when developing internal DX human resources can provide
There are advantages such as
Therefore, this time, I will explain the difference between DX conversion and IT conversion so that even beginners can easily understand it !
In addition to the differences between DX and IT, we will also explain more practical information such as benefits and points for promoting DX !
Table of Contents
- Difference between DX conversion and IT conversion
- What is DX conversion
- What is IT
- Advantages of DX and IT
- Advantages common to DX and IT: Improved productivity and operational efficiency
- [DX conversion] Two merits
- [IT] Two advantages
- Three important points to promote DX conversion
- 1. Development of IT human resources to promote DX
- 2. Construction of IT system
- 3. Internal organizational reform
- Two important points to promote IT adoption
- 1. Digitization of data
- 2. Utilization of cloud services
- [DX promotion] 3 steps
- Step 1: Clarify your vision
- Step 2: Analyze the current situation and find your company’s strengths
- Step 3: Develop a strategy to close the gap between what you want to be and where you are now
- Differences between DX conversion and AI and IoT
- Difference between DX conversion and AI
- Difference between DX and IoT
Difference between DX conversion and IT conversion
In conclusion, the difference between DX conversion and IT conversion lies in whether to regard digitization as a “means” or as a “purpose”.
|DX: Promoting transformation of products, services, and business models using digitization as a “means”
IT: Promoting digitalization with the “purpose” of improving operational efficiency
can be said.
In other words, IT is one of the means to realize DX.
In this way, DX conversion and IT conversion look the same at first glance, but in fact they have completely different meanings.
In order to deepen your understanding, we will briefly introduce DX conversion and IT conversion.
What is DX conversion
DX is the use of technology to transform business processes, products and services, and business and management .
In other words, information and digitization are used as “means” to promote the transformation of products, services, and business models .
What is IT
IT is the use of technology to streamline operations .
In other words, it refers to promoting information and digitalization with the “purpose” of improving operational efficiency .
Advantages of DX and IT
- Advantages common to DX conversion and IT conversion
- Advantages of DX conversion
- Advantages of IT
I will explain about.
Advantages common to DX and IT: Improved productivity and operational efficiency
A typical advantage of DX and IT is the improvement of productivity and operational efficiency.
Here are two concrete examples.
Example 1: Realization of automation of office work by utilizing RPA (robotic process automation)
Example 2: Realize efficient marketing activities by using MA (marketing automation) to deliver emails to customers and prioritize customers
In this way, DX conversion and IT conversion lead to increased productivity and operational efficiency.
[DX conversion] Two merits
There are two advantages of converting to DX.
” Creating new business ” and ” avoiding the risk of continuing to use existing systems “.
I will explain each.
1. Creation of new business
Conversion to DX leads to the creation of new businesses.
Here are two concrete examples.
|Example 1: Dynamic pricing that fluctuates spectator ticket prices according to conditions such as the day of the week and time of day
. Example 2 that leads to maximization of profit : Collecting data such as the timing of patient medication and using sensors to prevent forgetting to take prescription drugs ( Otsuka Pharmaceutical ) Leads to reduction of insurance costs
In this way, DX has great potential not only for improving the efficiency of existing operations, but also for creating new businesses.
2. Avoid the risk of continuing to use the existing system
There are two risks in continuing to use the existing system, but they can be avoided by converting to DX.
|*Two risks (
1) Risk of being exposed to cyberattacks and the threat of viruses that exist on the Internet (
2) Risk of not being able to invest in recruiting IT human resources because operating and maintaining existing systems is too costly
In order to solve the above two risks, it is possible to change the old or damaged existing system to a new system or another system with equivalent functions.
In this way , risks can be avoided by renovating the existing system, which has become complicated due to many years of functional changes due to DX .
[IT] Two advantages
There are two benefits of using IT.
“ Improving the convenience of information management and sharing ” and “ Promoting DX ”.
I will explain each.
1. Improved convenience of information management and sharing
The introduction of IT tools makes managing and sharing information much easier.
If you are managing documents on paper, it will be inconvenient because it takes time to sort them and you have a hard time finding the materials you need.
However, by digitizing analog information, you can easily check, manage, and share documents anytime, anywhere .
In addition, since the data is stored in the cloud, it does not take up much space unlike paper storage .
In addition, since it is possible to access information that could not be confirmed until now from home, etc., it is also possible to support telework .
2. Leads to the promotion of DX
As mentioned in the previous “Difference between DX and IT”, IT is a means of DX.
In other words, DX cannot be realized without IT.
It should be noted here that just as the purpose of IT is to improve operational efficiency, the purpose is not necessarily to promote DX.
For this reason, it is important to clarify “why we are implementing IT in-house” .
Three important points to promote DX conversion
The following three points are important in promoting DX.
- Development of IT human resources to promote DX
- Construction of IT system
- Internal organizational reform
I will explain each.
1. Development of IT human resources to promote DX
“There is a shortage of IT human resources to promote DX conversion” is one of the factors that hinder Japan’s DX reform, so it is necessary to develop IT human resources as soon as possible.
However, in order to promote DX,
|・Basic IT knowledge
・Understanding the importance of data
There may not be a suitable person in the company because various skills are required.
In that case, it is necessary to take measures such as mid-career recruitment and training of IT skills for internal human resources to develop future IT human resources.
2. Construction of IT system
In order to promote DX, it is important to unify the disparate IT systems in each department throughout the company.
This is because if each department uses a different IT system, data coordination between departments will not go well, and data cannot be used for business.
Concretely, the following three options are assumed for how to build an IT system.
|・”Ordering system development to an external vendor”
・”Using an existing external system”
・”Developing and operating a system in-house”
Regardless of which option you choose, keep in mind that building an IT system will cost a lot of money, including outsourcing costs and system usage costs .
3. Internal organizational reform
In order to promote DX, not only the cooperation of the workplace (each department) but also the commitment of top management is essential.
This is because for the success of DX, it is important for top management to clarify “what kind of value is created by DX and how to transform the business”.
The Ministry of Economy, Trade and Industry’s ” DX Promotion Guidelines ” also point out the importance of top management commitment.Two important points to promote IT adoption
There are two important points in promoting IT: ” digitization of data ” and ” utilization of cloud services .”
I will explain each.
1. Digitization of data
Currently, with the spread of telework due to the spread of the new coronavirus, the digitization of data is an urgent need.
This is because digitization of data will make it possible to access information from home, etc., which could not be confirmed unless one was at work.
According to Adobe’s ” Survey on the Benefits and Issues of Telework Work ” announced in March 2020, the most common telework problem was “I can’t immediately check paper documents in the company (about 40%). ).
As can be seen from the survey results above, it is important to digitize data using cloud services and other means in promoting IT .
2. Utilization of cloud services
The utilization of cloud services is also an important point in the introduction of IT.
This is because the use of cloud services such as chat tools cuts down on the manual work involved in sharing information on paper, making work more efficient.
The following are two specific examples of cloud utilization.
|・Built-in management of communication inside and outside the company with chat tools, etc.
・Manage orders and invoices with data by introducing an accounting system
When aiming to improve operational efficiency through the use of IT, we recommend the introduction of cloud services.
[DX promotion] 3 steps
The following three steps are important to promote DX conversion.
- Clarify your goals
- Analyzing the Current Situation and Finding Our Strengths
- Develop a strategy to fill the gap between the desired state and the current state
I will briefly explain each.
Step 1: Clarify your vision
In step 1, clarify what your ideal company looks like.
This is because by clarifying the direction that the company should aim for and sharing it within the company, employees can aim in the same direction toward DX.
As a result, you can prevent common failures such as DX getting stuck in the middle.
Step 2: Analyze the current situation and find your company’s strengths
The important thing in step 2 is to analyze the current situation of your company and find your strengths.
This is because DX refers to establishing a competitive advantage by utilizing digital technology and data, but in other words, it is important to expand the company’s strengths with digital technology and data.
Specifically, analyze your company’s current situation in terms of items such as business model, products and services, operations, organization, processes, and corporate culture.
Step 3: Develop a strategy to close the gap between what you want to be and where you are now
The important thing in Step 3 is to classify DX into digitization and digitalization
|* Digitization: Digitizing analog data
* Digitalization: Bringing about change by utilizing digital technology
The axis of the DX strategy is to clarify the target and the current situation, and consider what kind of flow will be used to digitize analog data and what kind of technology will be combined with it.
Differences between DX conversion and AI and IoT
Both AI and IoT refer to technologies that support DX conversion, but each has a completely different meaning.
Let’s see what the difference is between each.
Difference between DX conversion and AI
Earlier, I mentioned that DX conversion is to use technology to transform business processes, products and services, and business and management.
And AI refers to digital technology, that is, “tools” that are used to realize DX conversion .
By the way, the role of AI is to process a huge amount of data that cannot be handled by conventional technology, and to help make effective use of the data in business.
Difference between DX and IoT
IoT is an abbreviation for Internet of Things, which means “Internet of things”.
Examples include remote control of air conditioners and smart speakers that play music just by speaking.
In other words, IoT leads to new services and the improvement of existing services, so it can be said to be one means of realizing DX .
This time, I explained the difference between DX and IT, the advantages of each, and the points for promoting DX.
Let’s proceed with IT as the first step to promote DX!