The recent concerns surrounding Japan’s digital transformation were highlighted in the 2018 ‘DX Report’ from the Ministry of Economy. There is a stark warning about significant economic losses if companies fail to modernize outdated systems. This situation, often referred to as the ‘2025 Cliff’, points to the urgent need for companies to embrace DX fully, yet the reality is that many are stuck on partial solutions, not realizing the full potential of comprehensive digital strategies.
In a comparison study, only about 30% of Japanese companies reported tangible results from their DX efforts, contrasting sharply with over 80% of firms in countries like the U.S. and Germany who are seeing significant outcomes. Major impediments include strategic shortcomings, lack of KPIs, and a shortage of skilled personnel. Moreover, Japan’s rigid institutional frameworks and delayed educational advancements have caused the nation to lag behind in embracing digital systems and innovative business models. Leaders in technology, such as Airbnb and Tesla, have already set benchmarks that Japanese companies are yet to meet. As emerging technologies like generative AI continue to reshape the corporate landscape, the urgency for Japanese companies to adapt is at a critical juncture.
👉 Pročitaj original: CIO Magazine
