Improve business efficiency with DX! Explaining benefits such as reduced work time, implementation procedures, and examples

“Can you make your business more efficient by converting to DX?”
“What exactly is DX?”

You may have questions like these.Simply put, DX (Digital Transformation) refers to efforts to reform business processes, etc. using digital technology.Digital transformation is expected to improve competitiveness and optimize management resources. In fact, there are cases where digital transformation has improved business efficiency and reduced human error, so there are good prospects for it.

However, in order to successfully implement DX, it is necessary to take the correct implementation steps. Not only that, there are some things to keep in mind when converting to DX. By being careful about these things, you can increase the probability of success in converting to DX.

Therefore, in this article, we will explain basic information about DX, reasons why DX is necessary, benefits, points to note, introduction procedures, and examples. Please refer to it.

What is DX? Also explains why the government is promoting it

Here we will explain basic information about DX.

• Transform your productivity! What is DX?
• The government is promoting DX

Transform your productivity! What is DX?

DX refers to efforts to use digital technology to fundamentally transform the business models and business processes of companies and organizations, create new value, and increase competitiveness.The following are main examples of DX:

As mentioned above, DX makes full use of digital technology to rebuild existing business models and develop new services and products. This will allow companies to expand into new markets and meet needs more effectively.

When we hear DX, we tend to think of ``incorporating IT tools to make operations more efficient,'' but it also means ``not only making operations more efficient, but also transforming organizational culture and rebuilding business models.'' Included in DX.

The government is promoting DX

The government is working to promote digital transformation.As an example, the following tax system was established.

(1) Creation of digital transformation (DX) investment promotion tax system

○From the perspective of promoting corporate transformation using digital technology, tax deductions (5%/3%) or special depreciation (30%) will be given for investments aimed at corporate transformation by building a "connected" digital environment (cloudification, etc.) We will create measures that will enable this. (Temporary measure for two years)

Source: Ministry of Finance | 3 Corporate taxation (as of February 15, 2024)

This tax system is a tax incentive designed to support companies to invest in leveraging digital technologies to transform their business models and business processes and promote digitalization. The purpose is to promote the introduction and utilization of digital technology by allowing companies to reduce their tax burden and receive specific tax credits when making investments related to DX. However, the specific details of the investment promotion tax system may change depending on the region, so it is best to check with each government for details.

Compete against the world! Why DX is necessary

Here we will explain why DX conversion is necessary.

• Preventing decline in competitiveness
• Optimization of management resources

Preventing decline in competitiveness

One reason why DX is necessary is to prevent a decline in competitiveness.In recent years, the business environment has changed significantly due to the evolution of digital technology, and it is necessary to take initiatives that are in line with these changes.

For example, digitalization makes it possible to understand market changes and customer needs in real time and respond quickly. Easily analyze customer data and provide personalized services. This will increase customer satisfaction and increase customer loyalty.

Therefore, if your company does not proceed with DX conversion and your competitors do so, there may be a difference in competitiveness in the market. There will be concerns about a decline in competitiveness. In order to survive the competition, companies must constantly create new value and differentiate themselves from their competitors. That's where DX comes in handy.

However, digital transformation cannot be achieved overnight. It is important to promote digital transformation according to your company's circumstances and challenges.

For more information on productivity, please refer to the article below.
Is there a difference between improving business efficiency and improving productivity? Explaining the benefits, key points, and precautions

Optimization of management resources

By converting to DX, you can optimize your management resources.Based on data analysis, you can use your existing management resources more efficiently.

For example, by utilizing technologies such as AI and IoT, information such as customer data and production data can be collected. By analyzing the vast amount of data you have collected, you will be able to uncover insights (the essential desires underlying consumer purchasing behavior; simply put, they are like latent desires). This enables more accurate decision-making and optimizes the allocation of management resources.

Improve work efficiency and more! Advantages of converting to DX

Here, we will explain the benefits of DX conversion, such as improving business efficiency.

• Improving work efficiency
• Information can be visualized

Improving work efficiency

By converting to DX, you can expect to improve operational efficiency.Some tasks can be automated or streamlined.

For example, by using digital technology to automate business processes that would otherwise take time to do manually, work time can be reduced. Depending on the tools you use, you may be able to automate tasks such as data entry, document management, expense reimbursement, and customer database management. Not only will it improve efficiency or automate work, but it may also reduce human errors.

Information can be visualized

One of the benefits of DX conversion is the visualization of information.By visualizing a lot of information, you may be able to approach customers more effectively.

For example, by using a customer management system, you can centrally manage a variety of information such as customer basic information, purchase history, inquiry history, and service usage status. This allows you to instantly grasp comprehensive information about each customer. Best of all, you can analyze the data you collect and segment it based on various attributes and behavioral patterns. Identify your target audience and plan and execute an approach tailored to their needs. You may be able to improve cost efficiency in sales.

Not only that, but by visualizing a wide variety of information, it is possible to create new business opportunities. For example, it predicts the next product or service that a customer is likely to be interested in based on past purchase history and behavioral patterns. This allows sales teams to make recommendations in advance of needs, potentially increasing cross-sell and upsell opportunities.

Measures such as these allow the sales department to develop effective sales activities based on a deep understanding of customers. As a result, this will lead to increased sales and stronger customer loyalty.

Things to check before you implement it! Explaining points to note about DX

Here we will explain the points you should be aware of before introducing DX.

• Choose the right tool for your company
• Employee training and follow-up required
• You may need to master tools such as Excel.

Choose the right tool for your company

When converting to DX, you need to choose a tool that suits your company's issues and objectives.Each company has different challenges and goals they want to achieve, and common tools may not be able to solve specific challenges.

For example, if you're struggling with missed opportunities due to overstock and out-of-stock items and want to streamline your inventory management, it's a good idea to implement tools that provide real-time inventory tracking and predictive analytics. We improve the accuracy of inventory management by performing demand forecasting, inventory optimization, and supply chain management. If you introduce a tool that does not have these functions, you may not be able to solve the problem.

Also, even if the tools are from the same family, you need to choose the most suitable one for your company. By selecting tools that are optimized for your company's issues and processes, you can expect more effective work efficiency and improved productivity. If you introduce the wrong tool, it may cause extra work or may not work properly. As a result, work efficiency and productivity may decrease. It is essential to implement the tools that are most suitable for your company.

The main measure is to clearly define requirements. Make a list of the functions, essential conditions, and desirable conditions needed to solve the problem, and be specific about what you want from the tool.

For more information on IT, please refer to the article below.
Improve business efficiency with IT! Explaining benefits and useful tools such as improving productivity

Employee training and follow-up required

When promoting DX, training and follow-up for employees is necessary.When you first introduce a tool, it is likely that you will not be able to fully use it. In order for employees to be able to use new technologies and tools, training and follow-up must be provided as appropriate.

Regarding education, it is a good idea to provide customized training according to the skill level and role of employees. It is recommended to interview employees in advance and understand their IT literacy and skill level, and create training programs for beginners, intermediate users, and advanced users.

Even after training, you should provide ongoing follow-up sessions to help employees apply their new skills in the workplace. Regular follow-up meetings, Q&A sessions, and one-on-one interviews can help resolve any issues employees may have and expedite their learning.

You may need to master tools such as Excel.

Depending on the case, you may need to be proficient with tools such as Excel.Even if you introduce tools to promote digital transformation, existing tools such as Excel may still be useful for certain tasks and processes.

For example, Excel's graphs and pivot tables are useful for presenting data in an easy-to-understand manner. Therefore, when creating materials and reporting progress, you may need to use existing tools such as Excel. Additionally, at the initial DX stage, you may want to try to save costs by maximizing the use of existing tools at hand, such as Excel, before introducing expensive software. In cases like these, you may need to master Excel.

However, mastering Excel often requires specialized knowledge and skills, so it may not be easy. In that case, you may want to consider using external online training and materials. Of course, it is possible to create teaching materials in-house, but considering the amount of time and effort it would take, it would be difficult to do so. Make your decision based on your company's situation and the skill level of your employees.

For more information about Excel work, please refer to the following article.
5 methods and tools to streamline Excel work! Also explains functions and tasks that can be automated

Companies should check it out! DX introduction steps

Here, we will explain the steps a company can take when aiming for DX.

1. set goals
2. Inventory of business
3. Prioritize issues
4. Test operation
5. Full-scale operation
6. Verification and improvement

1. set goals

When a company aims to transform into DX, it is essential to set clear goals.This is because your direction may unintentionally change along the way. Let's clarify the results we want to achieve through DX, and get the entire organization united and working toward our goals.

When setting goals, we recommend using SMART principles. SMART principles are general guidelines for goal setting that can help you create effective and achievable goals. Specifically, it is as follows.

Using SMART principles eliminates ambiguity and makes your goals clear. By clarifying the state you want to be in, it becomes easier to work on it and increases the probability of achieving your goal. If you are unable to determine your goals on your own, it may be a good idea to consult with management or someone in charge of the field.

2. Inventory of business

Next, take inventory of your business.In order for a company to transform into DX, it is important to first thoroughly understand the current business processes and identify bottlenecks and issues.

Process mapping can be a useful tool for inventorying your operations. By visually mapping your business processes, you can clearly understand each step and identify inefficiencies and bottlenecks. Record each step of the process and note the people and systems involved. If you have any questions, ask someone knowledgeable on the site for help.

3. Prioritize issues

Prioritize the issues that come up.When you take inventory of your business, many issues may come up. It can often be difficult to tackle everything at once. Even if you can tackle it, it doesn't mean you can solve everything at once. It may be more efficient to prioritize and clear each task one by one.

When prioritizing, we recommend using the Eisenhower Matrix. The Eisenhower Matrix is ​​a method of classifying issues into four categories: urgent and important, urgent but not important, important but not urgent, and neither urgent nor important. Specifically, it is as follows.

The vertical axis is important (the higher you go, the more important), and the horizontal axis is urgent (the more you go to the right, the more urgent). The Eisenhower Matrix is ​​commonly used for time management, but it can also be useful for prioritizing. Let's start with the most urgent and important issues.

Four. Test operation

Once you have prioritized your challenges, test run tools that can solve those challenges.When introducing tools with the aim of converting to DX, there is a high possibility that it will bring about major changes to existing business processes and systems. By checking in advance, you will be able to understand any problems that may occur in the production environment. You can also see how new technologies and systems fit into your business and make a difference.

When conducting test operations, prepare a test environment that is close to the production environment. Make sure the test results are applicable to the actual production environment. Of course, it is a good idea to remember to back up data and take security measures.

Also, clarify the purpose of the test operation, define what you will test (performance, usability, etc.), and the scope of the test. At this stage, you should also set specific success criteria.

Five. Full-scale operation

If there are no problems with the test operation, you can start full-scale operation.Depending on the goals you set, it is a good idea to monitor the following points when operating your system:

The indicators (KPIs) to be monitored should be directly related to the project's goals. If you are unable to decide on your own, it is a good idea to consult with the people in charge of the project.

6. Verification and improvement

After full-scale operation and information collection, it is time to verify and improve.The main objective at this stage is to determine how successful you are against the goals you have set and to identify any improvements that need to be made. Compare target values ​​and current values ​​to determine countermeasures and future policies.

Furthermore, in DX, it is extremely important to check the "employee acceptance status". To begin with, DX refers to a state in which digital technology has permeated every department, business processes have been efficiently restructured, and employees are actively utilizing new tools and methods. It's not just a matter of saying, ``It's OK if we can improve the numbers.'' The ideal situation would be for employees to actively utilize IT tools and work on DX conversion unconsciously. Once this happens, we can expect lasting change. As a result, you can expect to maximize profits through DX. Aiming for this state, let's continue to verify and improve.

Understand the necessity of data conversion! DX introduction example

Here, we will explain DX implementation examples.

Product manufacturer

Independent administrative agency

Product manufacturer

We have a case study in which our system was introduced by a product manufacturer.

Digitize a series of inquiry operations

Improving customer satisfaction

Short-term introduction

Source: Focus Systems Corporation| Product inquiry workflow for product manufacturers (as of February 15, 2024)

We have implemented an electronic process to improve customer inquiries regarding our products. Previously, we received customer inquiries by phone or email and managed them using a ledger. This resulted in relying on individual representatives to track inquiries and responses, resulting in delayed or missed responses to customers.

In order to solve this problem, we have digitized the process, from receiving inquiries, confirming the contents within the company, assigning them to the person in charge of responding, creating answers, and responding to customers via web forms. This change eliminates the need for telephone support when accepting inquiries via web forms, reducing the burden on receptionists.

Not only that, by visualizing the work flow, the roles of the people in charge became clearer, reducing omissions and rework, and improving work efficiency. It is also now possible to search for and answer similar past inquiries. By visualizing the content of inquiries and response status, work became less individualized, responses to customers became faster, and satisfaction with product after-sales service improved.

``IM-BIS (Business Integration Suite)'' brought about this effect. By using IM-BIS, which has an integrated development function that requires no coding, we were able to create a system that satisfied our users in just three months.

Independent administrative agency

There are also other cases where the system has been introduced to independent administrative agencies.

Simple design that can be operated by the customer alone

Centralized management of master data

Thorough training for in-house production

Source: Focus Systems Corporation| Electronic approval process system for independent administrative agencies (as of February 15, 2024)

In this case, paper-based processes increased operational costs and errors, and multiple existing systems were complex to operate and manage. To deal with this, we introduced "intra-mart". The simple system design has improved operational efficiency, reduced work errors, and reduced costs by reducing dependence on external sources.

In addition, data migration from existing distributed systems was difficult due to the different system structures and processing, but by assigning members who are familiar with each system, it is possible to smoothly migrate the necessary data. Did. The collected data is managed centrally, freeing us from inefficient administrative tasks.

Furthermore, in addition to building a simple system structure, we provided training and support so that the company could develop the system in-house. By forming a professional operations management team and providing customized training materials and seminars, we can now create new workflows and manage system operations.

Please refer to the article below for details on examples of business efficiency improvements.
5 examples of business efficiency improvement | Explaining benefits such as productivity improvement and key points for successful implementation

summary

So far, we have been explaining about DX.By implementing digital transformation, you can reassess your traditional business model and use technology to improve operational efficiency.However, DX also has its challenges. Traditional organizational culture and processes will need to change, and resources and skills will need to be updated accordingly. Additionally, security risks and other issues must be carefully addressed.

However, it may be difficult to properly deal with these issues on your own. If you have any concerns regarding DX conversion, please contact us.