Current State And Challenges Of DX Promotion In Chiba Prefecture.pdf

1. World and Japan's Digitalization Trends

Before analyzing Japan's digitalization promotion trends, it is essential to understand Japan's digitalization position in the world. The IMD World Digital Competitiveness Ranking, published by the Swiss IMD Business School, evaluates the digital competitiveness of 63 major countries and regions worldwide. In 2020, Japan ranked 27th among the 63 countries, indicating that Japan's digital competitiveness is not strong. Among East Asian countries, Japan ranked last (5th among 5 countries), while other East Asian countries, excluding Japan, have improved their global rankings over the years.

2. ICT Investment in Japan and the US

Comparing Japan and the US ICT investment trends, the US invested approximately three times more in 2017 than in 1995, while Japan's investment has remained relatively stable. Japan's ICT investment decreased from 12.9 trillion yen in 2009 to 11.5 trillion yen in 2010 due to the impact of the Lehman shock, but it has since increased and reached 12.7 trillion yen in 2018. The breakdown of ICT investment shows that software investment has relatively increased.

3. ICT Investment Ratio to GDP

Although Japan and the US have similar ICT investment ratios to GDP, ranging from 3% to 4%, the ratio has remained relatively stable since 1994. The 2020 survey by JEITA and IDC Japan found that Japanese companies prioritize "workstyle reform" and "business efficiency improvement" over "sales force enhancement" and "market analysis," which are prioritized by US companies. This difference may contribute to the disparity in GDP growth between the two countries.

4. IT Budget Increase Reasons

The survey also found that Japanese companies tend to use IT for internal purposes, such as improving existing business processes, while US companies use IT for external purposes, such as enhancing sales force and market analysis. This difference may contribute to the disparity in GDP growth between the two countries. Additionally, Japanese companies tend to avoid fundamental reforms of existing business systems, which may hinder labor productivity growth.