DX is an abbreviation for “Digital transformation,” and it means that companies incorporate digital technologies such as IoT and AI into their operations to improve operational efficiency and performance, as well as transform the structure of their business.
In recent years, new value has been created due to the rapid improvement and spread of
IT
and digital technology. Up until now, the principles of business have been “people, goods, and money,” but digitalization has made it possible to collect and manage vast amounts of information, which has made it possible to place more emphasis on “information.” It has become.
DX is a combination of IT/digital technology and information assets that transforms the very structure of business, and is thought to give businesses an advantage over their competitors in various ways.
The need for companies to conduct DX
The need for companies to implement DX is increasing year by year. This is because the spread of the new coronavirus has created a semi-compulsory need to implement a business system that uses IT and digital technology, and this business format has become entrenched.
Furthermore, considering the risks of natural disasters such as Nankai Trough earthquakes, earthquakes directly hitting the Tokyo metropolitan area, and other floods that are expected to occur in the near future, it is believed that companies that do not implement DX will become dysfunctional and go out of business.
In other words, unless you drastically change your business model by drastically changing the form of your business through DX, you will not be able to overcome the crises caused by possible external factors.
Digital technology supporting DX
The digital technologies that are indispensable for DX are as follows.
- A.I.
- IoT
- cloud
AI is a program that processes information and learns in the same way as human thought processes. In particular, in the field of “machine learning”, by learning a huge amount of input data and the results obtained from that data, it becomes possible to perform advanced data analysis and data-based inferences.
AI is essential for making full use of big data, and demand is expected to increase as information technology progresses. Some chat
bots
, which are programs that automatically operate on the Internet in place of humans and communicate via text or conversation, are equipped with AI.
IoT is an abbreviation for “Internet of Things,” and by connecting things to the Internet, automatic recognition, automatic control, remote measurement, etc. are performed.
Nowadays, it is installed in many home appliances, and it is now possible to control the movement of home appliances remotely from a smartphone. From now on, it is expected that each building or factory itself will be IoT-enabled, enabling more accurate and efficient operations.
Cloud
is a service that aggregates a lot of information on the Internet. Rather than creating a system from scratch, you can utilize a system that is publicly available in the cloud, which will allow you to proceed with your work more quickly.
Reference article
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What is DX (digital transformation)? Let’s understand the meaning for promotion!
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Approximately over 40% of businesspeople in their 20s to 50s answered that DX is progressing, and the number one positive impact of progress is “simplification of operations” (Kimura Information Technology Co., Ltd.)
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Marketing DX for BtoB companies that you want to start tomorrow
