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What will change with DX initiatives? Introducing the reasons why you should work and 7 domestic and overseas cases!

I think there are many people who want to work on DX at their own company, but it is difficult to get an image of DX work. If you know the success stories of companies that have actually worked on DX, I think it will be easier to imagine what will change by working on DX.

Therefore, this time, we will introduce the merits of working on DX based on the success cases of companies that have worked on DX. Learn about other companies’ success stories and apply them to your own efforts.

Table of Contents 

  • What is DX
  • 3 reasons to work on DX
    • 1. Preparing for the cliff of 2025
    • 2. Sustain business even in an emergency
    • 3. Create new value
  • 7 steps to promote internal DX
  • Changes caused by working on DX
    • 1.Improve productivity by reducing work
    • 2.Resolving labor shortage
    • 3. Promotion of telework
    • 4. Service improvement based on data
  • 4 Successful Cases of DX Initiatives in Japan
    • 1. Kokuyo Co., Ltd.
    • 2. Japan Airlines
    • 3. Hoshino Resort
    • 4. Fujitsu
  • 3 Successful Cases of DX Initiatives Overseas
    • 1. Apple
    • 2. Netflix
    • 3.Alibaba
  • Reality of DX efforts by Japanese companies | Only 7% succeed
    • 3 points for success in DX initiatives
  • summary

What is DX

DX (Digital Transformation) is “using data and technology to change people’s lives and companies’ businesses for the better.”

Many of the DX that are currently a hot topic are mainly DX from the business perspective defined by the Ministry of Economy, Trade and Industry, where companies quickly grasp changes in the external and internal environments and use the power of digital to implement optimal management strategies. , new value creation is becoming more important.

3 reasons to work on DX

Here are three reasons why companies should work on DX.

  1. Preparing for the cliff of 2025
  2. 2 Keep your business running in an emergency
  3. 2Create new value

1. Preparing for the cliff of 2025

“2025 Cliff” is an expression quoted from the “DX Report” announced by the Ministry of Economy, Trade and Industry in 2018. The outline of the DX report is as follows.

  • Many corporate managers now understand the importance of utilizing DX for future economic growth
  • However, because the system is basically built and operated for each business division, it is difficult to use data across the company.
  • Implementing a new system takes time and effort

If these issues are not resolved and the utilization of DX does not progress, there is a possibility that economic losses of up to 12 trillion yen/year (approximately three times the current level) will occur after 2025 (2025 cliff) . and

2. Sustain business even in an emergency

If you can make good use of DX, you can continue your business even if unforeseen circumstances occur. For example, even if an infectious disease such as the new coronavirus is prevalent, companies that have advanced digitalization can smoothly transition to telework.

By working on DX, people will be able to choose how to work according to the situation .

3. Create new value

In today’s society, companies are required to change in line with the trends of the times. Companies that actively utilize data in their business will attract attention. In addition, companies that use data and AI to start new businesses are said to have high international competitiveness .

7 steps to promote internal DX

The steps to promote internal DX can be divided into seven steps.

(1) Posting management strategies and visions
It is necessary to clarify the goals of the DX initiative.

(2) Obtain top management’s consent
In order to make major changes to the existing system, top management’s consent is essential.

③ Build a system to promote DX
Build a system to work smoothly and secure human resources.

④ Visualization and analysis
of the current situation Grasp the current situation of your company’s system and determine whether it is necessary to review it.

⑤ Digitization of
business Let’s digitize the business that is being implemented in analog.

(6) Digitization of business models
By incorporating digital technology into existing businesses, new profits and value can be expected to be created.

⑦ Evaluate and review the process
For efficient use of DX, let’s regularly grasp and review the current situation.

The important point when working on DX is to start with small-scale measures and gradually spread the efforts throughout the company . It is also necessary to secure sufficient human resources who can handle DX.

Changes caused by working on DX

What kind of changes will occur in companies by working on DX? Here, we will explain the following four changes that will occur as a result of DX initiatives.

  1. Improve productivity by reducing work
  2. Eliminate labor shortage
  3. Promotion of telework
  4. Service improvement based on data

1.Improve productivity by reducing work

By working on DX, some work can be automated and work can be reduced. The cost and time can be reduced by that amount, so the productivity increases. In the future, we can also expect higher profit margins.

2.Resolving labor shortage

By automating some operations, the human resources that were previously in charge of those operations can be allocated to other businesses. By allocating staff to departments that are short of staff, you will be able to reduce the burden on each employee.

In addition, DX initiatives will lead to further growth of DX human resources. Increasing the number of human resources who can handle DX will be of great benefit to both companies and society as a whole.

3. Promotion of telework

Telework can be promoted by promoting the digitalization of operations. In order to keep employees working for a long time, it is essential to create a better environment. By actively working on DX, you will be able to build a flexible work system .

4. Service improvement based on data

Working on DX allows us to collect more data. Then, based on that data, we can improve customer satisfaction by launching products and services that “customers are exactly looking for.” New value will be created for the company, and business expansion and profit increase can be expected.

4 Successful Cases of DX Initiatives in Japan

Here are four successful examples of DX initiatives in Japan. Here are four examples:

  1. Kokuyo Co., Ltd.
  2. Japan Airlines
  3. Hoshino Resort
  4. Fujitsu

1. Kokuyo Co., Ltd.

KOKUYO Co., Ltd. emphasizes work styles during the corona crisis and new work styles for the post-corona era. We are also pursuing ease of work by utilizing digital technology.

Therefore, Kokuyo Co., Ltd. sells MAXHUB manufactured by CVTE.
With this tool, you can write in real time on the materials projected on the whiteboard, so it is possible to activate communication even in web conferences.

“MAXHUB” usage image

KOKUYO MAXHUB use image

2. Japan Airlines

Japan Airlines is actively working on DX and has been selected as “DX Brand 2021”. DX stocks evaluate companies that actively utilize digital technology and work to improve corporate value.

I would like to introduce two of Japan Airlines’ efforts.

( 1 ) Establishment of
innovation platform We have established an innovation platform called “JAL innovation Lab” and are working to create new value by fusing opinions and technologies from inside and outside the company.

( 2 ) Measures to prevent the spread of new coronavirus infection
We are implementing measures to prevent the spread of infection by making use of technology, such as contactless check-in terminals, customer service by robots, and the use of mobile apps.

3. Hoshino Resort

Hoshino Resorts installed a sensor in the shoe cupboard of the large public bath and built a system to notify the congestion status. This system was developed to give customers peace of mind, even if only a little, in the midst of the issue of the three Cs in hot springs and public baths.

4. Fujitsu

Fujitsu enabled data access from an external site at a research institute of a government agency. To ensure the security of external connections, we have set up an access relay point within Fujitsu. By enabling external connections, work efficiency has been greatly improved.

3 Successful Cases of DX Initiatives Oversea

What kind of initiatives are overseas companies taking? Here are three examples.

1. Apple

Since 2019, Apple has been issuing a credit card called the Apple Card. This card can be applied for from your iPhone and is easier to issue than existing credit cards. It is attracting attention in the United States as a credit card that can be issued to immigrants.

2. Netflix

Netflix is ​​attracting attention as a service that allows you to watch movies and dramas online. Demand is increasing in the corona misfortune, and the number of users is increasing rapidly. Netflix was originally a mail-type DVD rental service, but by starting on-demand distribution on the Internet, it has built a new form of rental service.

3.Alibaba

Alibaba offers an app called “DingTalk” with business chat, video call, cloud storage and attendance management system. By providing this app, alibaba is helping other companies go digital. Alibaba is working on and promoting DX at the forefront.

Reality of DX efforts by Japanese companies | Only 7% succeed

Currently, there are very few companies that have successfully implemented DX. According to a survey conducted by ABeam Consulting Co., Ltd. from October to November 2020, 7% of respondents recognized that they were successful in working on DX .

3 points for success in DX initiatives

So, what points should we be aware of in order to succeed in DX initiatives? Here are three points to consider when working to promote DX.

( 1 ) Setting clear goals
Using DX, it is necessary to set a goal of “what you want to do and how”. In addition, it is necessary to think concretely about “what should be done to achieve the goal” and “how to utilize the data” .

( 2 ) Analysis of the current situation and understanding
of issues By analyzing the existing legacy system and understanding the issues, it becomes an opportunity to think about what to do next.

( 3 ) Realize system renewal while reducing costs and risks
Promoting DX costs a huge amount of money. In order to reduce costs and risks as much as possible, it is necessary not to incorporate unnecessary systems from the beginning .

summary

Did you deepen your knowledge about the reasons and benefits of working on DX?

By working on DX, attention to companies will increase, and changes will occur in productivity and ease of work. You can also create new value for your company.

There are not many companies that have succeeded in DX initiatives in Japan yet, but let’s actively work on them by referring to the steps and examples of initiatives introduced this time.

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