Start DX for SMEs with ●●! ~How to Organize Goals and Means~

Recently, everyone is making a fuss about "DX" (Digital Transformation), but in reality, it often remains limited to efficiency improvements through IT.

I don't think SMEs buried in piles of paper can jump straight into DX. However, using DX as a rallying point to aim for a healthy business state is a good thing. This is a discussion about whether you have set appropriate goals.

IT starts from the parts, DX starts from the whole

As I see it, the relationship between IT and DX is as follows.

• IT implementation can start from the parts

• DX implementation starts by drawing the overall picture of the business

It is a common story that even if you implement IT partially, nothing changes in the end. On the contrary, it becomes more troublesome, and the number of unused systems increases.
The pitfall of IT implementation is that it is difficult to achieve results with a partial optimization mindset.

DX is an approach of overall optimization. Draw the overall picture of the business and think about where to implement DX.
DX starts by drawing the overall picture, and I would like you to be prepared to tackle it with that resolve.

DX is the IT implementation of the entire business, involving customers

Furthermore, the big difference between IT implementation and DX implementation is whether it involves customers.

IT implementation only within the company has little effect.
Business starts from the relationship with customers, so use IT to build relationships with customers. I believe the essence of DX is building ideal relationships with customers that were not possible before.

• Discovery of potential customers

• Discovery of customers' true needs

• Accumulation and analysis of customer history

• Strengthening measures to increase customer satisfaction

• Measures to turn customers into repeat fans

I believe DX is about creating a system based on data for these things, rather than relying on intuition.
In other words,connecting the inside of the company with the outside (customers) through data is an important focus for DX implementation.

The purpose, role, and relationship of each stakeholder

The president has ambitions.
The employees only feel like they are being forced to do things.
It is a common, almost comical, scene in DX promotion.

The vision the president envisions. There are likely clear objectives and goals there.
However, do the employees recognize the objectives, goals, and their own roles with the same level of enthusiasm?
That is highly questionable.

The customer side is the same. When told that a new service has started, they are asked to download an app or create a membership card. If they don't know why they should have it, they won't feel motivated.

Similarly, for external partners (cooperating companies), if DX means sharing data and processes, it often just adds more hassle. Are the objectives and roles clear to them?

If the mechanism is built first while the feelings of each person (company) are out of sync, DX will not proceed well.

The significance of DX lies in creating relationships where everyone is happy, by involving the company itself (president, employees), external partners, and even customers, while considering their respective objectives, thoughts, and roles.

Focusing on 'data' that connects work (processes)

Data is what connects a company's multiple tasks (processes).
At the stage of exchanging paper, you may not notice the existence of data, but 'information' that has meaning to people and the 'data' that serves as its basis always exist.

Exchanges of data (information) always occur between multiple stakeholders.
By focusing on data, you can also create new relationships and processes (work).

Computers can handle vast amounts of data (information) and process it in any way. Also, the meaning and perception of data (information) differ depending on the stakeholder. Therefore, by reviewing how data is perceived and utilized, new relationships can be created.
Creating unprecedented, new relationships will lead to new business.
Data → Process → Relationship → Business (achieving each objective)
It is important to think of them as connected.

The relationship between objectives, means (actions), and data

Means (actions) to achieve objectives
Incorporate new data utilization methods into them.

In order to achieve the objectives and thoughts of each stakeholder,
engage in data utilization from a new perspective between objectives and means.
It is easy to overlook the fact that the objective, not the means, is the protagonist.

In companies buried in piles of paper, people often do not even notice the existence of data, or fail to grasp its importance and value.
A data-driven mindset starts fromnoticing the existence and value of data.
Even things that have not yet been digitized (data-ized) may have the potential to be acquired as data with a little ingenuity.Collect and utilize data according to your objectives. Thinking about where usable data exists and how it can be acquired is the first step toward DX.

In your company, have you organized your objectives, means, data, and stakeholders?

This article was written by
Mousou Biz Planning Representative Shigeki Kawahara
https://mousoubiz.com/
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