The Lag in Japan's DX and Its Three Fundamental Causes
The absurd amount of effort required to obtain a registry
One day, I went to a Legal Affairs Bureau branch office to obtain a copy of my company's registry.
I am surely not the only one who feels that the system used for this procedure is a grand waste of time and ends up mentally complaining about it.
First, you have to apply for and create something called a 'Legal Affairs Bureau Card.' There are kiosk terminals that use this card to obtain seal registration certificates and registry copies, but you can actually use them without the card. (Then what is the point of this card?!)
The input for those kiosk terminals is entirely on a Katakana touch panel. After entering a ton of personal information on a screen that is incredibly easy for the person behind you to see, a numbered ticket is issued. (Couldn't I just write my personal information on this piece of paper instead?!)
Based on that ticket, you go to a counter to purchase 'revenue stamps.' This is staffed by people, always two of them, handling cash and stamps, and they always look like they have nothing to do. (Why don't you automate this part first?!)
Then, you go to another counter, stick the stamps on by hand in front of a lady who asks, 'Is the information written correctly?', and receive the copy of the registry. (...I don't even feel anything anymore)
From the perspective of a business owner who is always thinking about operational efficiency, it is so wasteful it makes you want to go crazy. When I think about how the same administrative tasks are being performed in massive quantities across every municipality and that tax money is being spent on it, I feel like crying.
Why does so much waste occur? I have thought about the reasons why Japan's DX (Digital Transformation) is not progressing from my own perspective.
The 'only do what you're told' culture that hinders DX
What civil servants and administrative staff at large Japanese companies (JTCs) have in common is a work style of 'only doing what they are told.' Since misconduct by civil servants or administrative staff can have a major impact on society, they are required to 'faithfully execute prescribed tasks.'
That is not wrong in itself, but it becomes a major barrier when trying to advance DX.
This is because DX is revising conventional business processes, improving them, and adapting to new systems, so it is highly incompatible with a culture of 'only doing what you are told.'
Furthermore, 'interviewing for existing operations' is a very important process when advancing DX, but people who have long believed that 'only I can do this job' often refuse to cooperate.
It is probably to 'protect their own sense of purpose.' I have seen many cases where projects have become more chaotic than expected because of this.
The essential reasons why DX is delayed
The major reason why the introduction of DX in Japan is not progressing lies in Japanese corporate culture and the labor environment.
1) Even if they recognize the waste in their work, they refuse change to protect their jobs
While introducing IT systems improves operational efficiency, it also creates anxiety that 'my job might disappear.' Therefore, employees show intense resistance to system implementation, and as a result, DX does not progress.
2) The influence of lifetime employment
Japanese companies have a deeply rooted culture of lifetime employment, making it difficult to create a flow of 'system introduction -> personnel reduction.' Therefore, they have no choice but to continue unnecessary tasks, leading to an increase in 'pretend work.'
3) Low mobility of talent to promote DX
In the United States, there is a flow where people who have honed their skills at companies that have advanced DX can change jobs and play an active role in new DX reform opportunities at other companies. However, in Japan, the culture of changing jobs is not yet that deeply rooted, so there is a current situation where successful DX cases are difficult to spread.
As a result, DX does not progress, competitiveness drops, and companies weaken—this flow has continued for the past 30 years, which is why it is called the 'lost decades' and so on. Perhaps it is time to reflect on this.
The reason why Japan's DX is not progressing is not just a technical issue, but likely a structural problem rooted in the labor environment. I believe that unless this problem is solved, the grand waste that exists in various places in Japan, like the Legal Affairs Bureau's 'kiosk terminal x manual work,' will not disappear.
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Well then, have a waste-free day today too! Jump 🚀