Table of Contents
However, simply introducing the latest systems does not mean that a company has "gone digital. This session will explain how companies should create new businesses for the digital society and the methods they should take to evolve their existing businesses.
What is the digital society?
Technology is evolving at an even faster pace these days. Equally accelerating is theThe Digital Society."It is. So, let us look at the concept of digital society and the current situation in Japan.
A society where people, goods, and services are digitalized
While perceptions of the digital society vary somewhat from individual to individual, in the larger senseA society in which people, goods, and services are "digitized."The digitalization of the world is changing the way we live, work, and act. Digitalization is changing our culture, industrial structure, human behavior, and even our lives.
The driving force behind digitization isTechnology" is the focus.This will be the case. The evolution of sensing and device technologies has made it possible to digitize, digitize, and collect data on everything in society.
Also, computer technology has greatly improved, enabling instantaneous analysis of vast amounts of big data, which has led to the development of AI technologies such as deep learning. ThisData utilization" will revolutionize Japanese industry in the future.It can also be said that
The State of Digital Society in Japan
In the 2019 nominal GDP ranking of countries around the world, Japan is in third place behind the United States and China. However, in terms of digitalization, Japan lags far behind the rest of the world.
Japan is ranked 27th in the 2020 Global Digital Competitiveness Ranking by the International Institute for Management Development (IMD) of Switzerland, but down from 23rd in 2019. South Korea, in the same Asian region, recorded 8th place,Japan lags behind in digitalization not only in the world but also in Asia.The Japanese government is also trying to establish an IT strategy and build a digital society in Japan as a whole. The Japanese government has also formulated an IT strategy and is currently trying to build a digital society throughout Japan.
Methods of New Business Creation in the Digital Society
So how should the new business development process change for the digital society? Here are two typical methods of creation.
Fundamental renewal of legacy systems
It is essential to incorporate new technologies in the process of digitization. It will be necessary to start system development in areas that have not yet been tackled or to revamp existing backbones.
However, most IT departments in Japanese companies are mainly engaged in "maintenance of legacy systems (existing old systems)" and do not have enough resources to challenge new areas.Fundamental renewal of legacy systems for new business creationWe cannot proceed without it.
The latest technologies need to be incorporated into business strategies and the entire company needs to work together on digitalization.
Prototyping and verification through "PoC
Prototyping and verification through "PoC" are also necessary for new business creation.Proof of Concept (PoC) means "proof of concept. It is a process to verify the value of a product by taking it from the prototype stage to the market.
For example, when launching a new product to the market in a new business, a prototype is first developed based on the assumption that improvements will be made.Identify shortcomings and issues from prototypes, make improvements immediately, and re-verifyThis is the flow of the process. Quality is brushed up through repeated "verification" in this way.
The more novel the product or service, the more effective "PoC" is, and it is one of the most effective methods for creating new businesses through digitization.
Methods of Evolving Existing Businesses in the Digital Society
In the digital world, existing businesses must evolve as well. 3 methods will be explained.
Agile, small-cycle development
Agile" development is necessary for existing business evolutionIt is. Agile means "agile" or "quick.
This is one of the main methods used in software and system development. Traditionally, the "waterfall" method was the most common method, in which the process proceeds as decided in advance from planning, testing, to actual operation.
On the other hand, in the agile type, each phase proceeds to "planning, testing, and actual operation.Iterative development in small cyclesto proceed.
As we move forward with reforms for the digital society, we will not be able to produce results if we take time to coordinate with existing businesses. In order to proceed with a sense of speed, it will be necessary to evolve existing businesses in an "agile" manner and create an organization that can move quickly.
Switch from PDCA to OODA
Until now, the usual method of transforming a business has been to "implement the PDCA cycle. However, if you want to change your organization to the aforementioned "agile type," you need to "change your organization to an agile one.OODA LoopThe idea of "the best way to do it" is more appropriate.
What is the OODA Loop?Observe, Orient, Decide, and Act.The PDCA cycle had the disadvantage that it was difficult to respond when something unexpected happened to the "P" (plan).
On the other hand, the OODA Loop is based on the concept that "the unexpected happens from the beginning," and because it is based on this concept and acts in an "agile" manner, it is able to respond flexibly.An indispensable method for the evolution of existing businessesIt can be said that
Promoting IT literacy among employees
Promoting IT literacy among employeesAnother important element of digitization is to We will digitize the day-to-day operations in the company by using digital tools and digital media.
However, it is also true that if the IT literacy of employees who actually use IT is low, it will be difficult to penetrate the market. It will be important to take measures to reduce resistance to digital technology through training and workshops.
Speed is the key to responding to the digital society
In the digital age of after-coronaDigitization of companies is a must.It is. However, the promotion requires fundamental reforms, not small steps.
At times, there will be major problems, which will become barriers. Nevertheless, for a company to survive, it must be able to change quickly to become a company that can adapt to the digital society.
We hope that you will make use of the methods introduced in each of "New Business Creation" and "Existing Business Evolution" in order to respond to the digital society.