Legacy industries should be the first to adopt DX tools
In recent years, DX (digital transformation) has become a key management priority for many companies. In legacy industries in particular, where long-standing practices and business processes are deeply established, the adoption of DX tools is expected to significantly improve operational efficiency and create new business models.
However, many legacy industries still rely on traditional business processes and analog information management, and a significant number of companies have yet to make meaningful progress in adopting DX.
What Is DX?
DX (Digital Transformation) is an initiative that uses digital technologies to fundamentally transform business models and operational processes, strengthening a company’s competitiveness.
DX is more than simply adopting IT.
- Business process reform
- Data-driven decision-making
- Creation of new services and business models
These initiatives are designed to transform the entire organization.
What Are DX Tools?
DX tools are software and digital technologies used to achieve DX.
Common DX tools include the following:
- Data analysis tools
- Business management system
- Communication Tools
- Business process automation tool
By leveraging these tools, companies can streamline operations, make better use of data, and accelerate DX.
Benefits of Implementing DX Tools
Implementing DX tools can deliver a range of benefits for companies.
Improving operational efficiency
By digitizing tasks that were previously handled manually, organizations can simplify business processes and reduce working time.
Faster decision-making
By using data analysis tools, businesses can visualize their current situation and make faster decisions.
Enhancing Customer Satisfaction
By analyzing customer data and providing services tailored to customer needs, companies can improve customer satisfaction.
Cost Reduction
Automating and streamlining operations can help reduce labor and administrative costs.
Why Legacy Industries Need DX Tools
In this article, we define legacy industries as industries with the following characteristics.
- The market is mature
- Long-established business models are already in place.
- Business processes rely on traditional methods.
In industries like these,
- Paper-based operations
- Manual data management
- Delays in information sharing
Many challenges like these are commonly seen.
By implementing DX tools, companies can resolve these challenges and
- Improving operational efficiency
- Addressing Labor Shortages
- Operational improvement through data utilization
This makes it possible to achieve that goal.
Examples of DX tools by industry
Logistics:
The logistics industry faces a host of challenges, with labor shortages becoming especially severe in business-to-business logistics, a market estimated at 30 trillion yen. Some projections also indicate that by 2030, around 35% of freight may no longer be transportable.
However, logistics operations have seen little progress in solving these issues for decades. Because various stakeholders, including shippers and logistics providers, are involved and information is still exchanged through analog processes, the challenge is that logistics data remains disconnected across the entire ecosystem.
SMILE provides DX solutions that address challenges like these in the logistics industry.
By digitally connecting shippers, logistics providers, warehouses, and other stakeholders involved in logistics, and by leveraging accumulated logistics data, we enable greater visibility and optimization across business-to-business logistics.
Construction:
In the construction industry, heavy reliance on paper-based drawings and documents for project management delays information sharing and increases the risk of misunderstandings and rework. Paper records are also easily damaged by on-site conditions, making real-time data analysis and rapid decision-making difficult and ultimately affecting project efficiency and quality.
SMILE provides DX solutions that address challenges like these in the construction industry.
By digitally connecting communication between worksites and managers, and by moving paper-based tasks and internal analog workflows online, we help improve construction operations and optimize project management.
Manufacturing:
In today’s manufacturing industry, many companies are unable to fully demonstrate their true development and technical capabilities for a variety of reasons, including being overwhelmed by quotation and administrative work, lacking sales capabilities, and having limited access to information and networks.
SMILE provides DX solutions that address challenges like these in the manufacturing industry.
Through system development that leverages digital technologies, we support DX in the manufacturing industry by improving the accuracy of quotation processes, optimizing supply chains, standardizing manufacturing processes, and streamlining procurement operations.
Healthcare:
The healthcare industry faces major challenges such as physician shortages and disparities in access to medical care in regional areas.
SMILE provides medical DX solutions that address social challenges like these.
We help build environments that enable patients to access healthcare services from home or the workplace by leveraging the internet and digital technologies. This streamlines communication between medical institutions and patients and improves the quality of healthcare services.
In addition, the introduction of online consultations and digital healthcare services is expected to help ease physician shortages and improve the efficiency of healthcare delivery systems.
Patients can access medical services from home, which helps strengthen regional healthcare and reduce the burden of hospital visits. Digitalization also streamlines clinical workflows, helping to shorten wait times and reduce infection risks.
Nursing care:
In recent years, Japan’s nursing care industry has faced a worsening labor shortage as the aging population drives up demand for care workers faster than providers can secure staff. This shortage creates a vicious cycle: heavier workloads and increased stress for care workers, which can ultimately lead to resignations.
To address these challenges in the care industry, SMILE provides care-focused DX solutions. By building operational management systems that use smartphones and cloud platforms, SMILE creates an environment where care service status can be monitored in real time. It also helps reduce the workload of care staff and improve operational efficiency by digitizing work records, service time management, shift management, and related tasks.
In addition, cloud-based data management promotes paperless operations and enables information sharing both inside and outside facilities, driving DX in care settings.
Steps for Implementing DX
A phased implementation is essential for successful DX.
Visualizing business challenges
We organize current business processes and identify inefficient operations and key issues.
Developing a DX Strategy
Clarify the purpose and goals of DX, and develop a DX plan that aligns with the company’s overall strategy.
Selecting DX Tools
Select DX tools that are well suited to the company’s challenges.
Internal implementation and training
Establish training and support systems for employees to use DX tools effectively.
Continuous Improvement
Even after implementation, organizations continue to use data to drive ongoing operational improvements.
Key Points to Consider When Implementing DX Tools
When implementing DX tools, companies should keep several key points in mind.
Clarifying objectives and goals
It is important to clarify the purpose of DX and select tools that fit the company’s strategy.
Employee training
To use DX tools effectively, companies need to improve employees' digital skills.
Security Measures
Consider the security risks associated with digitalization and implement appropriate measures.
Internal organizational communication
Cross-departmental collaboration is essential for implementing DX. Strengthen information sharing and cooperative structures across the organization.
Summary
Even in legacy industries, DX initiatives are essential for maintaining and strengthening a company’s competitiveness.
By making effective use of DX tools,
- Improving operational efficiency
- Addressing Labor Shortages
- Data-driven decision-making
This makes it possible to achieve outcomes like these.
By selecting the right DX tools for your company’s challenges and objectives and advancing DX initiatives, you can achieve sustainable business growth.
Start a Consultation on Advancing GX and DX
We work with you to design an approach tailored to your company’s situation, from assessing the current state to implementing systems and improving operations.
- You can clarify current operational and data-related challenges.
- You can design implementation steps that fit your company's structure.
- You can also build a framework that remains easy to operate after implementation.
- You can use data to verify results and make improvements.
- You can start exploring AI and IoT applications in the areas where they are most needed.
