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What are the challenges in promoting DX? Explaining the key points for success

We will explain the benefits gained from DX conversion, the challenges involved in realizing it, and the key points for success.

What are the challenges in promoting DX? Explaining the key points for success
What are the challenges in promoting DX? Explaining the key points for success

table of contents

  1. 1. What is DX conversion?
    1. 1-1. The purpose of DX conversion is “organizational transformation”
    2. 1-2. Effects obtained by DX conversion
  2. 2. Process to realize DX conversion
  3. 3. Problems to be solved by companies whose DX transformation is not accelerating
    1. 3-1. Lack of funds
    2. 3-2. Difficult to migrate from existing system to new system
    3. 3-3. I don’t understand the purpose
    4. 3-4. There is no key person to whom work can be entrusted.
  4. 4. Key points for successful DX conversion
    1. 4-1. Development of IT necessary for DX
    2. 4-2. Utilization of cloud
    3. 4-3. Focus on the DX manager
  5. 5. Realize DX to strengthen the organization and provide value

DX conversion, which many companies have been trying to advance in recent years, has various benefits when realized. Transformation into DX is a huge initiative that involves the transformation of the entire organization. To lead DX transformation to success, you need to be aware of the issues your company is facing and follow the appropriate processes to reach your goals.

In this article, we will explain the benefits of DX conversion, the challenges involved in realizing it, and the key points for success.

Regarding DX, we also interviewed Shuichiro Yamamoto, who is a key figure in Japan’s DX promotion and also serves as a member of the study group of the Ministry of Economy, Trade and Industry. Please also take a look.

What is DX conversion?

First, we will explain the specific meaning of DX conversion and the changes after implementation. Please understand the difference between “DX” and “DXization” and use it as a reference when proceeding with DX.

The purpose of DX conversion is “organizational transformation”

According to the DX Promotion Guidelines provided by the Ministry of Economy, Trade, and Industry, DX refers to the use of data and digital technology to establish competitive advantage by transforming business models. By advancing DX, it is expected that not only will the accuracy of operations be improved, but also that an environment will be created that will enable improved productivity and flexible response to market changes.

DX transformation is a term coined to indicate a state in which a company is already working on transformation using digital technology and establishing a competitive advantage. To achieve DX, it is necessary to transition from analog to digital in peripheral systems, including the base system, and change the business process itself.

In other words, the purpose of DX is to create an environment that can respond to any situation by transforming the entire organization.

Effects obtained by converting to DX

DX conversion is an initiative that presupposes a transition to IT, and it is essential to digitize analog operations that were previously performed by humans. If digitalization is realized, it will be possible to automate the entire business, and it is expected to improve business efficiency and accuracy.

If work automation shortens work time, simple tasks that previously had to be done manually will be eliminated, allowing you to focus on high-priority tasks.

Furthermore, by utilizing digital technology, it is possible to obtain data that is different from what was previously available. Utilizing the data that can be obtained will lead to the provision of new and better services.

Going digital allows companies to create their own business and can be a means of establishing a competitive advantage.

The process of realizing DX

Process to realize DX

To aim for DX, it is important to follow the appropriate steps, so we will explain them step by step.

step 1

The first step is to create a foundation for DX through digitalization.

First, if you complete the digitalization of your business and prepare the infrastructure necessary for DX, you will be able to accumulate the data essential for DX.

Step 2

The second step is efficiency.

Utilizing the data obtained through digitalization in tools will make it possible to automate and improve the efficiency of operations. It is also expected to improve productivity, so it would be wise for many companies to aim for efficiency first.

Step 3

The third step is “communication,” which aims to spread DX throughout the company.

At the stage of moving forward with DX, it will be difficult to instill DX throughout the organization. Therefore, it is thought to be effective to first share the know-how of departments that have achieved results with other departments and gradually spread common DX.

Step 4

The fourth step is “organizing” to advance the operation of the entire organization.

With standardized DX, we will create a system that can be operated throughout the organization. With each step, the volume of work that DX personnel in each department will be responsible for will increase. Therefore, it is necessary to consider creating a dedicated DX team that can handle tasks beyond departmental boundaries.

Step 5

The fifth step is “optimization”.

Digital operations will become the default, creating new business opportunities by leveraging previously unobtainable data. Transform your entire organization and gain a competitive advantage.

Problems to be solved by companies that are not accelerating DX transformation

Problems to be solved by companies that are not accelerating DX transformation

The realization of DX will generate all kinds of benefits for companies, but the current situation is that it is not progressing as expected. Let’s understand what are the factors that are hindering DX’s transformation and focus on the issues that our company needs to solve.

lack of funds

The transition to digital, which is essential for DX, requires the introduction and development of new systems, which require a certain amount of funding. If you do not have enough funds, you may not be able to implement IT that is suitable for your company and may not be able to achieve DX.

It is possible to reduce the cost of DX, but if you are serious about it, it is wise to implement DX to the extent that it will increase your company’s competitiveness. From a medium- to long-term perspective, it is important to secure funding to lead DX’s transformation to success.

Difficult to migrate from existing system to new system

As a result of continuing to use existing systems while updating them, the systems have become increasingly complex and bloated, and some companies are now overwhelmed with system maintenance. New IT investments require funds and human resources, so unless you are a company with a certain amount of leeway, it will be difficult to allocate resources.

Leaving the existing system in place may not cause any disruption to business operations. However, to survive in an ever-changing market, it is essential to change existing aging systems.

I don’t know the purpose

The important thing when aiming for DX conversion is not to complete DX conversion but to understand the reason and purpose of DX conversion and move forward. If you do not fully understand the destination of DX transformation, you may not know how to establish a competitive advantage or what kind of future your company is looking at, and the process for DX transformation may not be established. yeah.

To successfully implement DX that is suitable for your company, it is effective to set KPIs (Key Performance Indicators) and KGIs (Management Goal Achievement Indicators). Not only will you be able to set specific goals, but you will also be able to avoid the possibility of creating duplicates or adopting unnecessary items.

There is no key person to whom work can be entrusted.

To realize DX, cross-disciplinary responses are required in a wide range of areas, so a high level of knowledge about IT and the latest digital technology is required. Therefore, each department should have a person or key person with IT literacy.

However, not all departments have suitable human resources, and there is a possibility that DX conversion cannot proceed as planned. If you are unable to find someone who can handle the DX transformation, it is a good idea to consider hiring qualified personnel from outside to ensure a smooth DX transformation.

Key points for successful DX conversion

Key points for successful DX conversion

To succeed in DX transformation, it is important to take appropriate steps and implement effective initiatives. To achieve this, it is ideal to create the necessary environment for DX and ensure that you can proceed smoothly to your goal.

Here, we will explain the key points for successful DX transformation, so let’s discover the elements that are necessary for your company’s DX transformation.

Preparation of IT necessary for DX

As mentioned above, the utilization of data and digital technology is essential in the guidelines for promoting DX. By digitizing data and creating an environment where the accumulated data can be used in any situation, highly productive work will become possible.

What is important in digitizing data is accumulating data that can be utilized (shared). Even if paper data is imported into a computer, if the data is not shared through central management, it cannot be called IT implementation for DX. Create an environment where data analysis is possible to obtain new business opportunities.

Utilizing the cloud

To tackle DX, it is effective to build a network that is not affected by location, time, or environment.

In recent years, cloud services such as chat tools are increasingly being used for communication between employees and business partners. Additionally, invoice data management and ordering can be managed as data by using an accounting system.

By using a cloud environment, you can build an environment with a competitive advantage in a short period, making it possible to respond quickly to changes in the market. Additionally, cloud environments are more flexible and can be built at lower costs than on-premises environments.

Focus on DX managers

If you work on DX, you will need to transform your existing operations, so you will need different skills from your previous operations. Therefore, it is effective to assign a leader who is familiar with DX and promote DX based on corporate strategy.

In addition, the transformation of the entire organization through DX is not a situation where only management is focused on, and it cannot proceed smoothly unless there is understanding from all employees. Therefore, it is important to appoint a leader in each department and create an environment where the entire organization can cooperate.

Achieve DX to strengthen your organization and provide value

By promoting DX, you can increase your competitive advantage and strengthen your entire organization. Therefore, to survive in a market that is likely to experience severe fluctuations in the future, it is considered desirable to proceed with DX conversion as soon as possible.

To successfully implement DX, it is necessary to create an environment necessary for the transformation of the entire organization, which may lead to problems such as a lack of resources such as funds and human resources, and the migration of existing systems.

However, by taking initiatives that focus on the future rather than the current situation, early DX conversion will be possible, and the benefits that companies will receive will be greater as a result.

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.

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