[15-minute Explanation] DX, CX, SX: Management Mindset that Brings Explosive Growth to All Challenging Companies.

The Essence of DX: A Comprehensive Guide to Digital Transformation

In today's rapidly changing world, companies must be able to adapt quickly to external pressures and changes. This is where digital transformation (DX) comes in. DX is the process of using digital technology to change business models, product operations, processes, corporate culture, and the very nature of a company. In this article, we will explore the essence of DX and provide practical examples of how companies have successfully implemented DX projects.

📝 Table of Contents

1. The Essence of DX in the Era of Digitalization

2. Key Phrases for Promoting DX

3. Digital Twin

4. Asahi Iron Works' Example

5. The Nikkan Kogyo Shimbun's Example

6. Digital New Business Examples

7. Return to the Fundamentals of Media

8. Providing a Service Dedicated to Official Sales Promotion Support

9. The Future of Sales

10. Conclusion

1. The Essence of DX in the Era of Digitalization

The term DX has become increasingly popular in recent years, but many people still misunderstand its essence. DX is not simply about using digital technology to improve existing processes or operations. Instead, it is about transforming companies and businesses into flexible ones that can withstand various external pressures and changes. Digital technology is just a means to that end.

In the era of volatility, uncertainty, complexity, and ambiguity, companies must be able to predict and respond to changes quickly. The devastating impact of the COVID-19 pandemic has highlighted the need for companies to be able to adapt to sudden changes in the environment. DX is one of the answers to this challenge.

2. Key Phrases for Promoting DX

To promote DX, companies must focus on two key phrases: digital twin and industrial information. A digital twin is a digital replica of a physical object or system that captures various phenomena, conditions, and environments in a real space, such as a business site, using data. It creates an environment with the same conditions as a digital emotion. By analyzing data, companies can simulate various scenarios and improve operations in response to changes.

Industrial information refers to the information needed to improve the future of industries. Companies must become platforms that provide industrial information services to their customers. By creating unique information content needed by businesses on a daily basis, companies can transform into multi-earnings models centered on digital content.

3. Digital Twin

Digital twin is a methodology for building a cyclical system of data acquisition, area simulation, and feedback data acquisition in the real world. It is an evolution of the PDCA cycle, which is known as a method for improving business operations, and further extends it to the digital side. By using digital twins, companies can simulate various scenarios and improve operations in response to changes.

4. Asahi Iron Works' Example

Asahi Iron Works is a company that manufactures auto parts with approximately 400 employees and an annual business of 15 billion yen. The company manufactures parts for engines and transmissions as a primary subcontractor for Toyota Motor Corporation. Despite its old production equipment, the company has implemented an IoT system that collects monitoring data from manufacturing equipment for each production line and uses a system built on AWS Amazon web services. By implementing improvement activities that utilize data analysis and visualization of operating status, the company has been able to reduce labor costs by approximately 400 million yen per year, totaling 1.7 billion yen.

5. The Nikkan Kogyo Shimbun's Example

The Nikkan Kogyo Shimbun, which has a history of more than 100 years dating back to 1915, is facing the difficulty of transforming itself because it is a historical company. In order to survive, the company is promoting DX in order to undergo a once-in-a-century major transformation. The keyword for the company to advance its business concept reform centered on DX is to become a platform that improves the future with industrial information.

6. Digital New Business Examples

To survive in today's rapidly changing world, companies must develop new business models that take advantage of digital technology. The Nikkan Kogyo Shimbun is focusing on two areas: content and e-commerce. The first content e-commerce site is a sales promotion support platform, which is a newspaper industry-launched article and photo sale service launched on February 4, 2022 under the name Leg. The second promotion support platform is a business that holds online exhibition events using the content of the Nikkan Kogyo Shimbun and online events linked to real exhibitions.

7. Return to the Fundamentals of Media

To promote DX, companies must return to the fundamentals of media. They must provide a service that is dedicated to official sales promotion support. As the USA's industry and economics magazine, the Nikkan Kogyo Shimbun creates unique information content needed by businesses on a daily basis. By making full use of this estimate, the company aims to transform into a multi-earnings model centered on digital content.

8. Providing a Service Dedicated to Official Sales Promotion Support

To promote DX, companies must provide a service that is dedicated to official sales promotion support. By creating unique information content needed by businesses on a daily basis, companies can transform into multi-earnings models centered on digital content.

9. The Future of Sales

The future of sales is digital. Companies must develop new business models that take advantage of digital technology. By creating unique information content needed by businesses on a daily basis, companies can transform into multi-earnings models centered on digital content.

10. Conclusion

In conclusion, DX is the process of using digital technology to change business models, product operations, processes, corporate culture, and the very nature of a company. To promote DX, companies must focus on two key phrases: digital twin and industrial information. By implementing DX projects, companies can improve operations in response to changes and transform into flexible ones that can withstand various external pressures and changes.