DX know-how in the manufacturing industry
Seven challenges facing the manufacturing industry
Especially for Japanese companies, it has been pointed out that the hurdles for introduction are extremely high due to the existence of existing systems and the shortage of human resources. Therefore, the introduction of DX is currently delayed compared to other major powers such as China and the United States. Here, we will explain what is hindering the conversion of DX to Japanese companies.
1. Management strategy is unclear
2. Cannot secure human resources
3. System black box
4. Relying on the bender
5. The existing system is a burden
6. IT investment is not progressing
7. Low success rate of digital reform
What you need to do to solve DX issues
There are three ways for companies to realize DX: “establish a management strategy and share the vision of DX”, “examine by” visualization “of IT systems”, and “review the relationship between user companies and vendor companies”. It’s the key.
1. Share what you are aiming for with DX
Company-wide cooperation is required to promote DX. DX is, as the etymology implies, “digital transformation”, not just the introduction of new technology. Given that DX is the key to transforming business models and products / services with these new technologies, it is possible to create a system that includes not only IT departments and some business departments, but also managers and most business departments. It is essential. It is also important that the purpose and vision of “what we aim for with DX” are shared among these parties. According to this report, “If the legacy renewal itself is self-purposed without setting clear goals, something that does not lead to DX will be created, and there is a risk of re-legacy.”
2. Promote “Visualization” of IT systems
It’s important to get a complete picture of your existing IT system. The report also recommends that METI develop guidelines, indicators and diagnostic schemes to encourage companies to assess and “visualize” existing IT assets. It is important to analyze the current state of information assets owned by your company and proceed with renewal by function. For example, functions that change frequently may be rebuilt on the cloud, unnecessary functions may be discarded, and functions that should be changed or new functions may be added to the cloud as appropriate.
3. Review the relationship with the venter
For vendor companies that undertake the development, operation, and maintenance of IT systems, large-scale system renewal for the realization of DX is a high risk. In some cases, it may be necessary to restructure contractual relationships to mitigate risk in order to increase the motivation of vendors for DX. This report presents some ideas. For example, to prevent the user company from throwing the requirement definition to the vendor company, the requirement definition process is separated from the design process, and from the viewpoint that both are in a partner relationship rather than a hierarchical relationship, “Profit share (developed)” ADR (Alternative Dispute Resolution) for shortening the resolution time after troubles and ensuring non-disclosure, making provisions so that a part of the profits from the system will be returned to the vendor company after the fact. There are utilization and so on.
Effective introduction method of DX
So far, we have explained the issues and necessary elements in DX conversion. Now, I will explain how to actually introduce DX.
1. Digitization of tools
Digitization is the stage of actively introducing applications and cloud services on the Web. We will replace various tools with digital and accumulate data.
2. System efficiency
System efficiency refers to the stage of utilizing the data accumulated by digitization for each department. The “IT revolution” has brought about changes leading up to this stage. Many companies in Japan are currently at this stage, and each company uses various daily data to implement measures.
3. Build a foundation for data utilization
Data standardization is the stage of not only standardizing data within a department but also building a foundation for utilizing data company-wide. We will set common KPIs (evaluation items) for the entire company, formulate hypotheses, implement measures, and go through a cycle of verifying with data.
4. Establish an operation system
Furthermore, it is necessary to create an organization that manages data efficiently by utilizing the infrastructure that has been built up to this point. The purpose is to solidify the organization, establish an operational system, and clarify the business flow.
5. Reflection in business activities How to introduce DX
Finally, it is necessary to reflect it in the business plan that causes innovation in the business activity itself. This is the final stage of DX, and the purpose is to brush up the business plan from the accumulated data. Digital assets such as data will become the business foundation, and their utilization will lead to improved competitiveness. Few pioneering companies have reached this stage, even if they were the first to work on DX. In the future, various companies will promote DX toward this stage.
This time, I explained the DX issues that Japan faces and the solutions to them. As mentioned in the “Cliff of 2025”, Japan, which is said to be lagging behind in the area of DX, has an urgent task to review the current situation, including reviewing the system, and respond to changes. We would appreciate it if you could contact us first in order to renew the in-house system and create a new business model.This time, I explained the DX issues that Japan faces and the solutions to them. As mentioned in the “Cliff of 2025”, Japan, which is said to be lagging behind in the area of DX, has an urgent task to review the current situation, including reviewing the system, and respond to changes. We would appreciate it if you could contact us first in order to renew the in-house system and create a new business model.