![Why do so many DX projects fall apart? The secret of process visualization necessary for promoting DX [Part 1]](/business/dx/columns/column_dx_09.png)
In order to adapt to environmental changes, many companies are promoting activities to promote digital transformation (DX) as a management issue. However, many of these projects get stuck in the early stages, and as a result, they often end up at the PoC stage. This is because there are many cases where the visualization of essential operations cannot be sufficiently implemented due to the excessive use of new technologies such as AI.
Therefore, this time, I would like to consider the importance of "visualization of business processes", which I would like to work on as the first step to promote DX, in two parts, the first part and the second part. In the first part of this article, we will mainly delve into the reasons why DX projects tend to stumble.
What is the essence of DX conversion?
DX being promoted by many companies. Simply put, DX is an activity that promotes the transformation of traditional organizations, businesses, and corporate cultures by fusing AI and other digital technologies with innovative business models. An increasing number of start-up companies are using new digital technologies to build business models that are different from the conventional approach. However, it is clear that we must quickly promote DX in order to maintain and strengthen our competitiveness. However, each strategy is different depending on the company's situation. Its direction can be broadly divided into three.
1. Digitization of analog business
As telework becomes more widespread, there is a move away from processes that require stamping for approval and the digitization of the workflow itself, to the use of RPA to automate tasks that have traditionally been done manually. is an easy-to-understand example of digitization.
2. Sophistication of existing digital operations
For a company that already operates an EC site, this includes activities such as analyzing customer information in detail to maximize sales and improve conversion rates. Among them, there will also be activities such as working on dynamic pricing that fluctuates prices based on demand forecasts derived using the latest AI technology.
3. New development and monetization of digital business
While COVID-19 the core competencies cultivated in existing businesses, we aim to develop new customers and enter new markets. It is necessary to carefully determine what products/services are selected for. In any case, by promoting DX, management will be required to maximize sales, reduce costs by streamlining existing operations, and implement risk management for business continuity. It is.
Trends seen in DX projects
In the DX project, many companies will implement specific measures according to the envisioned strategy, but there are many companies that do not reach the ideal image they envisioned because these measures do not work well. . In practice, AI technology including machine learning is utilized, IoT is introduced to visualize the site using sensors, and Microservices, container technology and APIs are actively utilized to recreate modern architecture. , DX projects tend to focus only on technical approaches. As a result, there are cases where the project fails to produce results and the project is derailed. Even if you manage to derive results, there are cases where you cannot find out how to use them next time.
Why do so many DX projects fail or stop at the PoC stage?
The reason is simple, because there is a problem with the setting of "As-Is", which is the current situation for DX conversion, and "To-Be", which is the goal.
misunderstanding of the current situation
Normally, there are few companies that set a “To-Be” that is far from reality, and I think that there are many cases where they do not deviate greatly from what they should aim for. However, in many cases, we do not fully understand the current situation, which is "As-Is", and the reality is that it is easy to misunderstand the gap between what we are aiming for and what we are aiming for. Originally, it is important to recognize the correct gap between the correct "As-Is" and the correct "To-Be" that should be aimed for, and to formulate and implement DX measures with hypotheses to fill it. -Is" distorts the gap and how to fill it, and as a result, many companies end up with projects that do not go well.
Harmful effects of vertically divided organizations
In addition, many companies have vertically divided organizations for each department, and there are cases where business transformation through DX, which should be tackled by the entire company, does not match the current organizational system. Even if a DX promoter wants to utilize data in a specific department, it may not be possible to easily utilize information from other departments. Conversely, the departments that have the information are often unaware of the importance of that data. In that sense, creating an environment that can overcome organizational barriers as much as possible is an essential point in promoting DX.
I can't grasp the situation correctly.
1. Segmentation of business processes
The misidentification of "As-Is" is often seen in many projects, but it is true that recently it has become extremely difficult to accurately grasp the current situation of "As-Is". One of the reasons for this is the segmentation and individualization of business processes in each organization. For example, when looking at the work of sales, the marketing department, which conducts promotions to customers, is in charge of enlightenment activities and generating leads, and inside sales, which is in charge of turning acquired leads into hot ones, closes business negotiations. I have a sales representative. After receiving an order, the customer success manager assists the customer in achieving success. It must be said that it is difficult to properly grasp all the work that requires expertise.
2. Understanding the physical situation, which has drastically decreased due to the corona disaster
Another factor that makes it difficult to grasp the current situation is that the systems used for each business process are different, making it difficult to see what is being done end-to-end from the system perspective. In addition, due to the reduction in physical contact during the current corona crisis, it may be difficult to grasp information visually and recognize the actual situation from the atmosphere, which was possible before. Taking the method of holding a seminar and acquiring leads as an example, I used to want to have a successful experience from arranging a seminar venue to receiving an order through on-site follow-up, but now it is possible to conduct online seminars from attracting customers. Past successful experiences are becoming useless, such as the need to hold and follow up. In other words, the reproducibility of tacit knowledge, which has worked well until now, is becoming difficult.
In the second part, I will explain how to proceed to correctly recognize "As-Is".
The content introduced in this article can also be read in full in the white paper.
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