The important themes for transformation that LTS considers

Digital Transformation

Digital technology has changed society and companies

DX refers to a “phenomenon” in which the whole society has been changed due to digitalization. The development of digital technology centered around the Internet has brought about rapid changes in society. It has had the people who were previously unable to connect with each other now connected themselves, and has brought about major social changes ranging from global business to people’s daily lives life and to people’s values.

This social change has also caused a major shift in the raison d’être of corporations from “making money” to “solving social problems.” The way of thinking about corporate management, where in past the premise of business continuity (going concern) was common sense, is now turned to be conscious of “purpose” and “mission”, and even to consider the dissolution of the company beyond the achievement of these. Of course, it would be said that the trend of awareness of diversity and protection of minority rights has also been brought about the changing values being shared by people, who have been connected by such digital technology.

Digital technology has changed society


Digital transformation for companies

DX is a never-ending transformational activity

Most of the solutions and successful cases that advocate DX, which are abundant in the world, refer to transient “digital technology introduction projects”. The success or failure of companies using technology to secure a competitive edge by transforming business processes, infrastructure, and communication with customers is being reported daily.
However, the essence of DX is not the success or failure of individual projects.
As digital technology advances day by day and continues to change society, what companies need is not the success of huge projects putting their company’s fortunes on the line, but is to organize their daily reform activities to change themselves in response to social changes, to accumulate experiences, and to acquire the ability to transform ourselves autonomously and sustainably.
For companies, DX refers to the never-ending transformational activities for the future.


What companies should do in the digital age

Reconfirm the purpose of business & management

If the digitization of corporate business and management is set as the purpose of DX, it will end up being a superficial reform, such as the digitization of internal processes and customer contact points, and it becomes hard to develop new ideas based on the fact that society and customers have already been digitized.
Assuming a digitalized society and customers, it is necessary to redraw and redefine the purpose of business & management, what have been the value that companies provided to customers in the first place.


Rebuilding relationships with customers

The digitalization of society does not mean that customers will disappear. The behavioral principles of customers and companies are changing.
Introducing digital solutions and creating an online business foundation would have no meaning if these reforms do not fit the customer’s behavior. It is necessary to rebuild the business based on understanding the changes in the entire business structure surrounding the company. It is necessary to have contact with customers throughout the total lifecycle of their products and services usage, and to build ongoing relationships with the fans of the company.


Acquisition of autonomous and sustainable transformation capabilities

In the future digitalized society, it is necessary to acquire organizational capabilities that enable endless transformational activities. Even if it is a small activity of transformation led by some executives or leaders at its beginning, it is important to continue to run the activity, to accumulate knowledge within the company, and gradually to expand the scope of the activity.
What lies ahead is that the reform leaders are scattered throughout the company, collaborate according to themes, organize projects, and, with the help of external partners, continue activities so that their business can always be developed according to the company’s objectives. And we can see such an organization have DX capable of autonomous transformation.


What is required for future corporate management

Capturing the society that changes with digital and drawing the way of the company running.

In order to envision the goal of “How do we perceive DX in ourselves as a company?,” more than anyone else, the corporate executives must take a broad view of the outside world.
The proposition of how to utilize digital technology is only a small part of corporate DX. What is important is, in our society which is undergoing major and dramatic changes due to digitalization, to envision and transform the way the company should be, and to continue to do so.

The important thing is “X (transformation)” rather than “D (digital)” of DX

To ask “How do we approach DX as a company?” is an important thing, but in the current business environment, any kind of corporate transformation would almost certainly involve some form of digital technology.
Please don’t get caught up in the word of digital. Rather, we should particular ask ourselves about how we should make our company adapt to the current social environment. Instead of being swallowed up by evolving technology, think about the society that will emerge after technology evolves, and think about what your company can do to make it better.

After that, let’s think about how we can change society as a whole for the better, and what we can do as a company to do so. Corporate DX starts there.