Driving "Growth for Both Companies and Society" Through DX Support. Leveraging the Dentsu Group's Expertise to Build DX Organizations and Develop Talent

Digital transformation (DX) is now an unavoidable critical management challenge for every company. Yet, many express concerns: "I don't know where to start," "I can't imagine how to apply AI to our operations," or "We get stuck at the PoC stage and fail to achieve concrete business reform." Where do the reasons lie, and what are the keys to solving these issues? We examine the approach of the Dentsu Group, which has guided numerous companies through DX to success.

※This content is reprinted from Nikkei Business Digital Edition SPECIALhttps://special.nikkeibp.co.jp/atclh/ONB/22/group_dentsu1021/

<Table of Contents>

▼Emphasizing mid-to-long-term DX objectives, organizational development, and DX talent cultivation

▼Aiming for in-house DX capabilities, providing support until self-sufficiency is achieved

▼Realizing "B2B2S" by tackling societal challenges alongside client companies

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Viewing DX objectives from a medium-to-long-term perspective, prioritizing organizational development and DX talent cultivation

"We often see cases where system implementation becomes the end goal for DX, or where efforts remain limited to short-term operational improvements," notes Mr. Furudaira of Dentsu Inc.

DX is not merely digitization. "Its true purpose lies in transforming corporate business and realizing vision. This requires a DX strategy developed in collaboration with management and business units. However, in reality, plans are often advanced within existing siloed organizational structures and service frameworks, failing to drive company-wide business transformation and growth," says Furudaira.

Meanwhile, there is also a shortage of DX talent deeply familiar with their company's business.

"Even highly skilled IT professionals require significant experience and time to gain deep business understanding. Companies must cultivate internal talent with deep expertise in their own operations into DX professionals," explains Mr. Makita of Dentsu Inc. International Information Services (ISID).

In DX strategy, "organizational development" and "talent development" are two sides of the same coin. The Dentsu Group provides comprehensive support for corporate DX strategy by prioritizing both of these axes.

The domestic Dentsu Group, comprising over 160 entities, aims to be an Integrated Growth Partner (IGP) committed to the sustainable development of companies and society. With insights gained from its diverse corporate case studies, the Dentsu Group can be considered an optimal partner for DX strategy.

Supporting companies until they achieve self-sufficiency in DX

The hallmark of Dentsu Group's DX support is its thorough, hands-on approach.

First, in "organizational development," it addresses challenges one by one—from formulating DX strategy to organizational reform and creating a supportive work environment and culture—through thorough consultation. Teams are assembled according to the agenda, and optimal solutions are continuously customized and implemented to suit each client.

To transform top management's mindset, the group also conducts study sessions for executives.

"By providing optimal programs for top management, DX execution teams, and general employees, we elevate the entire company's literacy and align everyone's strategic perspective," says Mr. Kodaira.

Regarding the other pillar, "Human Resource Development," we first clarify the necessary human resource requirements and skill sets for DX, then conduct specialized training by expertise. Supporting this is ISID's proprietary AI-based human resource development solution, "HUMABUILD."

"HUMABUILD is a development program designed to cover everything from planning, selecting, and concretizing themes, to practical exercises based on real challenges, and extending to actual business deployment like AI system development," explains Makita, the developer. "Unlike lecture-based training, it cultivates talent who can actively engage and drive AI and data utilization projects in a 'hands-on, practical' manner."

The goal is to convert the domain knowledge held by a company's own employees into DX. In other words, it's about building in-house DX talent. Furthermore, it supports continuous activities beyond PoC, such as applying successful projects directly to operations on the ground.

"By driving both organizational development and talent cultivation, we aim to help our client companies achieve self-sustaining DX capabilities. This enables us to support their growth from a medium-to-long-term perspective, realizing ' ' for enterprises," states Mr. Kodaira.

Realizing "B2B2S": Addressing Social Issues Together with Client Companies

DX challenges are multifaceted. The Dentsu Group's strength lies in its flexibility to address the new needs that arise in succession, such as system development and new business creation. This is a unique advantage born from the Group's extensive experience engaging with numerous client companies through advertising and consulting, and creating diverse solutions.

"DX is merely a means to an end. What truly matters is what our clients aim to achieve through DX. For example, if it's solving social issues, we see it as our mission to work together toward that realization," states Mr. Kodaira.

Mr. Makita also expressed his enthusiasm: "By supporting clients in building organizations capable of driving DX themselves and developing the necessary talent, we aim to contribute to the growth of Japanese companies and the development of the socio-economic landscape."

The Dentsu Group looks beyond B2B to S (Society). For this company aiming to realize "B2B2S" – connecting business with client companies to solving social issues – DX is fundamental. That's precisely why they put so much effort into support. For companies seriously considering DX strategy, the Dentsu Group is undoubtedly the best partner to run alongside.

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Post-Interview Notes (by Masato Kitakata, Publisher, Nikkei Business)
While the common understanding that the essence of DX lies not in digitization but in organizational and business reform is spreading, many companies stall after merely establishing a DX department. Dentsu Group's DX support business identifies bottlenecks from the customer's perspective and also drives awareness reform among executives. HUMABUILD also hands-on cultivates large numbers of practical AI talent. I find it interesting that they focus not on short-term, but on medium-to-long-term results.