Japan Digital Transformation

The Ministry of Economy, Trade, and Industry (METI) is proactively promoting digital transformation (DX) in Japan and published the “Digital Transformation” report in 2018. METI warned the local economy would lose $120 billion by 2025 if traditional mainframes and backbone core systems were not updated and the shortage of ICT engineers not addressed.  

METI partnered with the Information Technology Promotion Agency (IPA) to create Industrial Architecture Design Center to provide guidelines for cross-social and cross-industrial data collection, data utilization, data analyzation, and talent management training.  

To achieve DX, Japanese business associations urged their members to partner and collaborate with startups under the “Open Innovation” initiative.  The initiative is an opportunity for new U.S. companies to enter the Japanese market through a reliable partner and vast network.  

The second pillar of Japan’s DX is a push for industry and government to integrate AI in their business operations.  Laid out in the Japan Association of New Economy (JANE) “Regulation, Systems, Management, and Business Reforms,” the report urges the healthcare, finance, and professional services sectors to adopt AI technology.

For more information, please contact Atsuko Shimada at atsuko.shimada@trade.gov.