To be a digital company working on solving social issues–NRI’s Research Director Kuwazu

Nomura Research Institute (NRI) believes that digital transformation (DX) will progress from process transformation “DX 1.0” to business model transformation “DX 2.0” and social transformation “DX 3.0”. However, the problem surfaced. It is a delay in Japanese society in the digital domain. There are several reasons, but one is the SI (system development) company that should lead the digitalization. Kotaro Kuwazu, Director of the Future Emergence Center, NRI Research Director, said, “The SI company that makes what is said is a parts manufacturer. Although it has an important role such as quality, it is not the parts manufacturer that decides what to do. Subcontracting in multiple structures There is no turn for it, “he points out, and preaches the transformation into a digital company that handles DX 3.0. The spread of the new coronavirus infection has put a delay in digitization in Japanese society. Many people will be disappointed with the government’s measures against corona, such as delays in the development of contact confirmation apps, management of infected people by fax, and manual administration of 100,000 yen benefits. If the increasingly complicated administrative procedures are handwritten, it is natural that typographical errors and processing delays will occur. This is because they have not developed a social infrastructure called a digital infrastructure. My number card is an easy-to-understand example. There are issues with the content of the system, but even though the social system system does not support digital in the first place, no matter how much we push forward, it will not spread. Mr. Kuwazu said that he was not only having problems with the government, but also with his understanding of the social infrastructure of the people and businesses. Of course, it also depends on what the SI company has proposed. The new coronavirus infection that appeared there made digitization an urgent issue. This is to utilize digital as a countermeasure against the disaster of corona disaster, reform work styles, create non-contact businesses, and realize economic revitalization within behavioral constraints. Restrictions will be gradually released through vaccination, contact with infected persons, and infection control measures such as infected areas. For example, if the event number limit is 50%, vaccinated people can enter, and if the event limit is 10%, it will be extended to non-vaccinated people. For that purpose, we will issue certificates and passports such as Chinese health QR cards with functions such as negative proof. There are many negative opinions that “it is difficult in Japan due to privacy and discrimination,” but it seems important to consider digital utilization in an emergency. It’s not just the new coronavirus infections that demand accelerated digitization. The digital use of Sustainable Development Goals (SDGs) such as poverty, hunger, energy and climate change is being discussed. In particular, carbon neutral, which reduces the amount of carbon dioxide emissions and absorption to plus or minus zero, has unimaginable momentum, and it is said that delays in responding will cause great damage to Japan. The circular economy will also be delayed. We are focusing on the problem of waste disposal, which is thrown away when used, and it takes time to create a mechanism for collection and recycling. Some companies postpone countermeasures, saying that the cost will increase.

Kotaro Kuwazu, Director of the Future Emergence Center, NRI Research Director, said that “digital plays a major role in the mechanism for the SDGs,” and insists that SI companies will come into play. To solve environmental problems, it is necessary to collect and analyze various data. Create a digital infrastructure that will be the social infrastructure and work to popularize it. As you can see from My Number Card, it does not mean “Once you make a system, it’s over”. Recognize the social responsibility of SI companies and understand that management plays a more important role. Changes in the environment surrounding SI companies also require digitization. In the extreme, SI companies have been a blessed industry that has continued to grow even if they are silent. New products are born one after another. If a security accident occurs, the countermeasure business will come in. If the tax system changes, the number of system update projects will increase. Companies and local governments have individually ordered similar systems. However, the standardization and sharing of systems are steadily progressing. Municipal systems will eventually be selected from the service menu. Not only local governments but also financial institutions will be consolidated. Mr. Kuwazu predicts that the conventional SI business will decrease, saying, “Old condominiums have air conditioners installed in each room, but central heating eliminates the need for outdoor units.” As a result, SI companies are also forced to convert to DX. For the new coronavirus infection, work style reforms are being promoted five or ten years ahead, and teleworking by SI companies is ahead of other industries, and the teleworking rate is still high at more than 60%. Mr. Kuwazu said, “Productivity may drop temporarily, but development will be completed on the premise of the network. There is hope of SI companies,” he said, along with telework, agile development and admitting side jobs. I will explain that I will continue to be at the forefront of working styles and development methods. The image of 3K (difficult, difficult, unable to return) disappears completely, such as students who did not have SI business as candidates for employment want to join a digital company. In fact, Internet companies such as Yahoo have already practiced short-term work and side jobs. Digital companies should keep up. Even if they make a mistake, managers and managers do not make stupid requests, such as “I’m going to work because I can’t see the employees” and “I want a superior at the web conference”. “Making telework natural is an opportunity to regain social status,” says Kuwazu. There is no company that does not use digital. That is why SI companies whose livelihood is digital will step on the accelerator for digitalization and actively participate in solving social issues. “Talk directly to the user. I want you to be in the corner of Tier 1 instead of Tier 2,” Kuwazu says. Katsumi Tanaka IT Industry Journalist At Nikkei BP, he has served as Deputy Editor-in-Chief of Nikkei Computer, Editor-in-Chief of Nikkei Watcher IBM Edition, Editor-in-Chief of Nikkei System Provider, etc., and has been a free IT journalist since January 2010. From 2004 to 2009, he was also a lecturer at Senshu University (information industry). Since October 2012, he has also served as the representative secretary of the IT Business Study Group. Watching trends in the IT industry for 35 years, his major books are “The Crisis of IT Industry Collapse”, “The Path to Revitalize the IT Industry” (Nikkei BP), “IT Companies in Japan” (ITmedia, Electronic Books), “2020” Future possibilities for expanding IT in the year “(Nikkei BP Consulting, supervision).