Digital Transformation of Business in Japan

Japan lags behind other advanced economies in Digital Transformation (DX) progress. This state continues despite government warnings about the Digital Cliff and top-down initiatives embodied by the Ministry for Digitalization and the recently declared war on floppy drives and other outdated technologies. Meanwhile, industry large and small has approached the question with increasing energy, albeit with widely varying approaches and motivations. This chapter considers six aspects of DX as it impacts organizations in the context of Japanese business and government. While some firms take incremental approaches, others are leaping forward to employ technologies that will allow them to radically improve their position in the industry and stabilize their business models for the long term. Questions remain as to whether management and implementation skills are up to the task.