To realize DX, it is necessary to collect, analyze, and utilize vast amounts of information. By skillfully utilizing IoT technology for this purpose, higher quality DX becomes possible.
What is DX
DX is an abbreviation for Digital Transformation. Transformation means " transformation ". A literal translation of DX means " transformation through digital means ".
While DX has no clear definition, according to the Ministry of Economy, Trade and Industry's definition, it is presented as " companies responding to drastic changes in the business environment, utilizing data and digital technology to transform products, services, and business models based on customer and societal needs, while also transforming operations themselves, organizations, processes, and corporate culture • climate to establish competitive advantage. "
To summarize DX, it would be " using data and digital technology to transform services and business models, achieving a state where competitive advantage is established ". (Reference:Ministry of Economy, Trade and Industry_Digital • Transformation）
The term " DX ", which we often hear in recent years, gained attention in Japan due to a report called the " DX Report " published by the Ministry of Economy, Trade and Industry. The reasons why DX is receiving attention are found within this " DX Report ".
Reason ① " 2025 Cliff "
The Ministry of Economy, Trade and Industry's report revealed that in many companies to date, existing systems have become black boxes and data is not being effectively utilized. Furthermore, it is said that at this rate, the shortage of IT personnel will become severe, and various domestic product support services will be terminated. As a result, due to soaring system maintenance costs and other factors, it is believed that economic losses of up to 12 trillion yen could occur after 2025.
Reason ② " Government support policies for DX "
Concerned that companies will be unable to flexibly transform their business models in response to diversifying market changes and lose in competition, the government has begun providing assistance to companies.
The " DX Report " also includes the " DX Promotion Guidelines " on how to promote DX as a countermeasure to the above issues. These " DX Promotion Guidelines " also describe support measures such as " how the government should actually realize DX ". Corporate challenges can be addressed using the " DX Report " and the " DX Promotion Guidelines ". (Reference:Ministry of Economy, Trade and Industry_ DX Report）
Objectives
As mentioned earlier, the objective of DX is " using data and digital technology to transform services and business models, achieving a state where competitive advantage is established " as the ultimate goal. To achieve this, after identifying the challenges a company faces, it is necessary to introduce appropriate digital tools to solve those challenges. Tools must be selected while anticipating the effects after implementation.
Realizing DX requires not only the introduction of systems such as digital tools, but also organizational reform. As the introduction of systems changes conventional work methods and processes, organizational changes aligned with these changes are also required.
Additionally, by clarifying challenges, wasteful costs that were previously used also become visible.
Benefits
The greatest benefit gained from pursuing DX is improved productivity • operational efficiency. By utilizing digital technology, daily routine tasks and simple data entry can be automated, increasing time available for other tasks. Additionally, the occurrence rate of human errors can be minimized, allowing more accurate data to be retained.
*Human error: Human mistakes or failures
DX Using IoT
Now let's explain specific examples of " DX " utilizing IoT.
What is IoT
IoT (Internet of Things) = called the " Internet of Things ", refers to technology that enables various objects to connect to the internet for more convenient use. Using this technology, you can operate home appliances from a smartphone or monitor current room temperature and humidity remotely.
Difference Between DX and IoT
DX means " transforming services and business models using digital technology ". On the other hand, IoT is digital technology for connecting various objects to the internet, so IoT technology is one of the means used to achieve DX.
By utilizing IoT, automation of conventional tasks and systems becomes possible, realizing " improved productivity • operational efficiency ", which is one of the goals of DX.
How to Utilize IoT
Let's explain specifically what kind of DX can be achieved by using IoT. IoT digitizes analog data and can utilize that data in various aspects.
Optimal Organization Using Big Data
By analyzing the vast amount of work data collected by IoT, tasks can be categorized and accurately assigned to internal departments. Therefore, appropriate work content can be reconstructed for appropriate departments, enabling optimal organization.
Can Address Labor Shortages
In the agricultural industry, where aging is progressing and the shortage of young successors is becoming severe, daily sunlight amounts and soil conditions can be detected by sensors and digitized • recorded. Based on the collected data, watering and fertilizer application can be performed automatically.
Operational Efficiency Through Work Automation
Information transmission in business operations that was performed by humans can be made more efficient with IoT technology. In manufacturing plants, when a defective product is detected on the production line, a system can be built to determine whether to remove and discard the defective product or correct it. By automating tasks that were previously performed by humans, production efficiency increases.
Reducing Wasteful Costs
By utilizing IoT technology for supply management, unnecessary orders can be reduced. Additionally, by introducing motion sensors, air conditioning and lighting can be turned ON/OFF in unused rooms. By reducing wasteful costs, wouldn't it be possible to consider introducing systems for future business improvement?
Summary
Do you understand the relationship between DX and IoT?
There is no doubt that IoT technology will provide significant benefits to many companies across all industries.
First, it is necessary to review current operations. After that, consider what challenges exist, how to solve those challenges, and what systems to introduce.