What is the DX certification system? Introducing the benefits of applying and effective initiatives

What is the DX certification system?

The DX certification system is one of the government’s measures, and its purpose is to support companies that are working on DX. We will explain what kind of companies are certified, so if you are working on DX or plan to work on it in the future, please refer to it.

Proof of an excellent DX initiative business

In the first place, DX initiatives are carried out to realize new construction and transformation of business models by utilizing digital technology, and to strengthen the competitiveness of the organization.

The DX certification system is a certification system based on the “Act for Partial Amendment of the Act on the Promotion of Information Processing” that came into effect on May 15, 2020. Certified companies are recognized by the government as excellent companies that are engaged in DX initiatives.

The system is open to all businesses as long as they meet certain requirements, so even corporations, including public interest corporations, and sole proprietors can apply. In addition, Pasona Group was also registered as a DX Certification System certified business in April 2021.

When a company receives DX certification, it is allowed to use a logo to prove that it is working on DX. This will make it possible to promote your business in various directions, thereby increasing your company’s credibility.

Certification standards

According to the “DX Certification System Application Guidelines (Application Guidance)” published by the Ministry of Economy, Trade and Industry, the certification standards for the DX Certification System are based on the Governance Code (Things that managers should practice to improve corporate value). It is classified into four levels linked to.

1. DX-Excellent company

2. DX-Emerging companies

3.  DX-certified business operator (DX-Ready)

4. Before DX-Ready

The DX certification system explained this time certifies businesses that meet the standards of “DX certified business (DX-Ready)”. Companies that receive certification are those that are ready for organizational transformation (DX) through the use of digital technology.

The higher-level “DX-Excellent companies” and “DX-Emerging companies” are selected from among DX-certified businesses, so they must first be certified as DX-certified businesses (DX-Ready).

Benefits of applying for the DX certification system

Apply for the DX certification system. Many factors will work advantageously for your company, so when working on DX, it is recommended that you proceed with the assumption that you will apply for the certification system.

Here, we will specifically explain the benefits you can get by applying for the DX certification system. Please use this as a reference when considering the DX certification system.

Your company’s challenges for DX will become clearer

To receive DX certification, you must apply for the specified items to IPA (Independent Administrative Agency Information-technology Promotion Agency). Answer the questions on the application to demonstrate that your company meets the certification criteria.

The questions in the application form are to confirm specific policies for promoting DX, such as the management structure for promoting DX and indicators for achieving DX. When answering the questions, you need to be aware of your company’s situation, so the issues your company is facing become clearer.

Even if you promote DX without a plan, it will not necessarily lead to an effective strategy for your company. By answering the questions about the DX certification system, you will be able to organize the information and issues necessary for DX and promote DX that is appropriate for your company’s situation.

Receive tax support for DX promotion

If the competent minister certifies a business plan for advancing DX, the DX investment promotion tax system can be used. To further promote DX, the tax system is designed to allow for a break away from legacy systems and the use of digital technology, and the application deadline is the end of March 2023 (end of Reiwa 4).

This system allows you to receive a 5% or 3% tax deduction or a 30% special depreciation by adopting cloud technology for DX. Please keep in mind that DX is targeted at the entire company, not just departments or individual locations.

In addition, small and medium-sized enterprises may be able to receive financial support measures with interest rates lower than the normal standard interest rate.

Increased reliability due to improvements in corporate value, etc.

Businesses that have received DX certification will have their company names posted everywhere, including on the Ministry of Economy, Trade and Industry’s website and the IPA website’s “List of Certified Businesses.” If your information is posted on a public institution’s website, it will increase the trust of business partners, related companies, and customers.

On the website of the Ministry of Economy, Trade and Industry, the company will be listed as a noteworthy DX company, which proves that the country has recognized the company’s DX efforts, and is expected to improve brand power and corporate value. The high value we provide to society will also be evaluated, which will lead to stronger competitiveness.

Additionally, since it can be proven that operational efficiency and organizational change have been achieved, this becomes an appealing point when hiring human resources. By making a good impression on applicants, you are likely to be able to attract more talented people.

What are effective efforts to receive the DX certification system?

When applying for the DX certification system, it is important to prepare an environment that allows DX to be realized. In particular, it would be effective to be able to utilize digital technology and data.

Here, we will explain the initiatives you should take before applying for the DX certification system. Please feel free to incorporate anything that can be applied to your business.

Utilization of RPA

RPA is a system in which robots perform tasks on behalf of humans, automating simple tasks such as aggregation and input. This will reduce the amount of time spent on simple tasks and create an environment where you can focus on high-priority tasks.

When working manually, no matter how careful you are, human error can occur. If you make a mistake, you will have to redo the work, which will increase your workload.

By using RPA, you can maintain a certain level of performance, allowing for even work.

Additionally, by automating tasks, the workload on employees can be significantly reduced, leading to reductions in personnel costs. This will minimize holiday work and overtime, and protect the health of employees.

The introduction of RPA not only improves operational efficiency but also greatly contributes to corporate profits.

Please also check the article here regarding RPA.
What is RPA? Explanation from overview to introduction effects and precautions

Utilization of IoT

IoT enables data collection with sensors by connecting all things to the Internet. An example of a familiar IoT device is a smartphone equipped with a fingerprint sensor or GPS. IoT will create an environment that will reduce the burden of work by linking the work performed by people with systems.

Analyzing data obtained through IoT can lead to the discovery of business flows that need improvement and new issues. This will play a major role in promoting DX as it is expected to improve quality and productivity.

Please also check the article here regarding IoT.
What does IoT mean? About IoT usage examples and prospects

Utilization of IT tools

In promoting DX, improving operational efficiency using IT and converting customer information into marketing data are considered effective measures. Businesses that used to be exchanged on paper will become digital data, reducing the effort required to create and hand-deliver documents.

To perform DX, it is effective to have an environment that utilizes cloud services such as electronic approval systems and workflow systems to automate data management and necessary procedures. In particular, automation can significantly improve work efficiency when digitizing processes that have a set flow.

Utilizing IT tools leads to improved business efficiency and productivity, and also reduces the risk of data loss. Organizational transformation through DX will bring a variety of benefits to companies.

Explaining how to apply for DX certification

When applying for the DX certification system, you need to obtain a “gBizID” in advance, which is required to log in to administrative services.

Check the “DX Certification System Application Requirements (Application Guidance)” on the IPA website and check the application procedure and what you need to prepare.

Please download the “Certification Application Form” and “Application Check Sheet” from the IPA website and answer the questions listed on the application form. For information on how to write an application, it is possible to view files submitted by companies that have already been certified, so you may want to refer to them.

Please note that some items require supplementary materials, so please be sure to prepare them.

Once you are ready, complete the application by submitting the required documents from IPA’s DX Promotion Portal Site. Please be sure to carefully check the application details and required documents.

After receiving the application, IPA will begin the examination, and once the certification procedure by the Ministry of Economy, Trade and Industry is completed, IPA will send the results to the business operator by email. The examination results will be received approximately within 60 days.

Apply for the DX certification system and improve the quality and reliability of your business

By applying for the DX certification system, you can clarify your company’s issues and create the environment necessary for DX. It will also be an opportunity to improve the quality of your work, and you can expect benefits from all aspects.

Since tax support for DX promotion has an application deadline and is likely to increase trust from business partners and customers, it is wise to prepare a system for applying for the DX certification system as soon as possible.

In addition, Pasona Tech also offers services that support companies’ DX promotions.

For example, the Microsoft Remote Help Desk Service is a service that supports companies that are unable to effectively utilize Microsoft products after implementing them.

If you have introduced Microsoft products as part of your DX promotion, but are concerned that they are not being used internally, please check it out.