In recent years, we have often heard the word “digitization.” Many companies have embarked on digitalization, and
the digitalization of companies and businesses has now become an “advantage for surviving extremely fierce market competition.”
However, many people worry about digitalization, saying, “It’s too abstract to understand,” and “I don’t know what it means or how it differs from DX.”
This time, we will introduce an overview of digitalization, how it differs from DX, why digitalization is necessary, and how to proceed with digitalization.
table of contents
- What is digitalization?
- Difference between DX and digitalization
- Why we need to go digital
- This leads to paperless and operational efficiency
- Transforming the way we work
- Business growth and expansion
- How to proceed with digitalization
- Clarify purpose and direction
- Recognizing the issue
- Decide on priorities for measures
- Introduce IT/digital tools according to your business model
- When proceeding with DX, it is important to utilize existing and new systems
- Introduce technology suitable for your company using APIs
- summary
- What is digitalization?
What is digitalization?
Simply put, digitalization means “transforming analog business processes into digital ones. “
Simple digitization is also called “digitization,” and examples include automating simple tasks, going paperless, and holding online meetings.
Simple digitization is also called “digitization,” and examples include automating simple tasks, going paperless, and holding online meetings.
In addition, the word “digitalization” is sometimes used to refer to “digitalization.”
Digitalization refers to “using digital technology to create new value by transforming business processes, products, and services.” For example, using web conferencing tools to convert face-to-face sales to online sales, Examples include new business models such as subscriptions and sharing services such as car sharing.
The development of digital technology in recent years has been remarkable, and everything around us has been digitized.
The development of digital technology in recent years has been remarkable, and everything around us has been digitized.
Companies also recognize digitalization as an essential means for improving operational efficiency, reducing costs, and growing and expanding their businesses, and the wave of digitalization is permeating many companies.
Companies also recognize digitalization as an essential means for improving operational efficiency, reducing costs, and growing and expanding their businesses, and the wave of digitalization is permeating many companies.
Difference between DX and digitalization
When you research digitalization, “DX (digital transformation)” almost always comes up. The two are often confused, but they have different purposes in DX.
While digitalization aims to “improve business efficiency through digital technology” or “create new value for products and services,” DX aims to “improve corporate structures and work styles through the adoption of new technologies.” The aim is to make fundamental changes.
Another important element of DX is the idea of ​​creating new businesses through change and making people’s lives more valuable and enriching.
For example, the evolution from mobile phones to smartphones, cashless payments, and taxi dispatch services that use location information from apps can be said to be innovations driven by DX.
For example, the evolution from mobile phones to smartphones, cashless payments, and taxi dispatch services that use location information from apps can be said to be innovations driven by DX.
DX brings big changes not only to business but also to people’s lives. Only after achieving digitalization will it be possible to embark on DX promotion.
Why we need to go digital
Digitalization is necessary because it offers the following benefits:
This leads to paperless and operational efficiency
Digitizing simple but time-consuming tasks can significantly reduce effort and time.
For example, by converting paper-based documents to data management, you can quickly check the information you need when you need it.
Also, if you make decisions on the system and introduce electronic stamps, the submission and management of business documents will become smoother.
Human resources can be allocated to tasks that require human resources, leading to improved operational efficiency.
For example, by converting paper-based documents to data management, you can quickly check the information you need when you need it.
Also, if you make decisions on the system and introduce electronic stamps, the submission and management of business documents will become smoother.
Human resources can be allocated to tasks that require human resources, leading to improved operational efficiency.
Transforming the way we work
By digitizing business processes, you can work in a way that is not tied to time or location.
A good example would be remote work. With all the digital tools available, you can exchange data, and hold meetings, and conferences online, so you can work smoothly from home.
A good example would be remote work. With all the digital tools available, you can exchange data, and hold meetings, and conferences online, so you can work smoothly from home.
Some employees may find it difficult to come to work due to childcare or nursing care reasons, but they can work from home. If we can realize diverse work styles such as
shortened working hours and flextime through digitalization, it will also lead to securing excellent human resources and improving retention rates. This will not only increase employee satisfaction with their work style but also increase trust in the company.
shortened working hours and flextime through digitalization, it will also lead to securing excellent human resources and improving retention rates. This will not only increase employee satisfaction with their work style but also increase trust in the company.
Business growth and expansion
Improving productivity and relationships with customers are important for business growth and expansion.
Improving work efficiency through digitalization will lead to improved productivity, and if you can handle not only phone and face-to-face business negotiations but also email and online business negotiations, you will be able to connect with customers far away and expand your business opportunities.
Improving work efficiency through digitalization will lead to improved productivity, and if you can handle not only phone and face-to-face business negotiations but also email and online business negotiations, you will be able to connect with customers far away and expand your business opportunities.
Additionally, by automating simple tasks through digitalization, you can increase the number of people available for your business, which should help you move toward business growth and expansion.
How to proceed with digitalization
Here we will introduce how to proceed with digitalization.
Clarify purpose and direction
First, let’s clarify the purpose and direction of digitalization. If we do not clarify the point of why we are promoting digitalization, digitalization itself will become an end in itself.
It is important to make the purpose and direction of digitalization as clear as possible, such as to improve business efficiency and productivity, reduce costs through paperless work, and popularize remote work.
It is important to make the purpose and direction of digitalization as clear as possible, such as to improve business efficiency and productivity, reduce costs through paperless work, and popularize remote work.
Recognizing the issue
Many companies are promoting digitalization, but they do so because they have a good reputation, or because it just seemed good.
Introducing digital tools for vague reasons increases the risk of failure.
Tools are things that should be used to solve problems. There is no point in introducing something if you can’t address the issues.
It is important to identify the issues that companies are currently facing, consider whether they can be solved through digitalization, and if so, which tools would be effective.
It is important to identify the issues that companies are currently facing, consider whether they can be solved through digitalization, and if so, which tools would be effective.
Decide on priorities for measures
When embarking on solving problems through digitalization, prioritize your measures.
When it comes to issues, there are bound to be some that are more urgent and others that are less urgent. Let’s understand them and think about which areas we should improve on.
When it comes to issues, there are bound to be some that are more urgent and others that are less urgent. Let’s understand them and think about which areas we should improve on.
Please note that implementing all measures at the same time may cause confusion among employees, so it is not recommended.
Introduce IT/digital tools according to your business model
Introduce IT and digital tools that are suitable for your business model to solve problems.
Unless you proceed with digitalization based on your company’s strategy, you will not be able to achieve satisfactory results.
Unless you proceed with digitalization based on your company’s strategy, you will not be able to achieve satisfactory results.
Furthermore, when seeking to transform a business model through digitalization, the results will not be as expected unless the tools are selected with foresight in mind.
When proceeding with DX, it is important to utilize existing and new systems
It is not recommended to discard all existing systems and utilize only new systems to promote digitalization and DX.
Consider how much of the system should be reviewed and where the system should be reformed, such as, “Change to a new system that has become costly and use one that is low cost but frequently used as is.” It is important to find out.
Consider how much of the system should be reviewed and where the system should be reformed, such as, “Change to a new system that has become costly and use one that is low cost but frequently used as is.” It is important to find out.
Introduce technology suitable for your company using APIs
One way to implement DX is to introduce technology that utilizes APIs.
API is an abbreviation for “Application Programming Interface. “
A mechanism that allows some software functions to be shared, allowing newly developed software to embed functions from other software.
Utilizing APIs has created mechanisms that did not exist in the past, and technology is further evolving. There may be an API technology that is suitable for your company, and it may be a good idea to utilize APIs in your software development to build your system.
Data from legacy systems can also be accessed via API, which should be useful when developing IT infrastructure for DX promotion. Please try using API technology to promote your company’s DX.
summary
Market intensification is inevitable as existing markets become intensified due to the entry of foreign companies and start-ups.
In the future, promoting digitalization and DX will be essential for companies to increase their value and compete on an equal footing with foreign companies.
In the future, promoting digitalization and DX will be essential for companies to increase their value and compete on an equal footing with foreign companies.
Please refer to what I have introduced and try working on digitalization and DX as a stepping stone for corporate growth.
