Heavily impacted by the COVID-19 pandemic, advancing DX has become an urgent priority for companies. Beyond cost reduction and operational efficiency, the very nature of traditional business models is now being reevaluated.
As Japan's largest comprehensive digital firm, Dentsu Digital Inc. has pioneered the industry by continuously conducting the "Survey on Digital Transformation in Japanese Companies" (abbreviated: DX Survey) since 2017, releasing the latest edition in April 2023. In the first part of our interview with Kazutaka Kobashi, Group Manager of the Marketing Innovation Design Division in the BX Department, we discussed the intent behind this survey and the new trends in DX advancement revealed by its findings. In the second part, based on the survey data, we explore the common characteristics of "companies achieving DX results."
The DX Phase Has Shifted to "Can We Fundamentally Transform Organization, Talent, and Culture?"
Q. The 2022 edition of the DX survey derived "8 Key Success Factors (KSFs) for Creating DX Outcomes and Sustained Growth" from the company interviews conducted for this survey and the results of surveys over the past six years. What insights emerge when comparing each company's DX progress against these "8 KSFs"?
Kazutaka Kobashi, Dentsu Digital Inc.
Kobashi: First, let's revisit the "8 KSFs."
① Employees act based on management vision such as mission and purpose ② Organizational and HR transformation occurs, enabling smooth cross-departmental collaboration starting from a dedicated DX unit ③ Business impact from DX is managed with a medium-to-long-term perspective ④ Customer and employee satisfaction are equally prioritized ⑤ Addressing social issues is positioned as a key company priority and pursued as a business initiative ⑥ Customer assets are prioritized, with continuous efforts to enhance customer experience value ⑦ A data utilization cycle is established, and efforts to cultivate data-savvy personnel are actively strengthened. ⑧ Active talent exchange, collaboration, and co-creation both internally and externally
When surveying both "companies achieving DX results" and "companies not achieving DX results" on the degree of implementation of these practices, a gap of approximately 3 to 4 times was revealed across all items. Among these, the items showing the largest gaps were: "② Organizational and personnel transformation has been implemented, enabling smooth interdepartmental collaboration within the company, starting from the DX specialized organization" and "⑧ Active talent exchange, collaboration, and co-creation both internally and externally." "① Employees act based on management vision such as mission and purpose" and "⑦ A data utilization cycle is established, and the development of data utilization talent is actively strengthened" were also highly ranked.
Kobashi: What these results indicate is that companies achieving results with DX are focusing their efforts on "organizational/HR transformation and cross-departmental collaboration," "internal and external collaboration/co-creation," "translating mission/purpose into employee actions," and "data utilization/data talent development." I firmly believe that the key to future DX advancement lies in how deeply transformative changes can be achieved in the areas of "organization, people, and culture."
Q. The shift of DX from "digitally driven efficiency in business processes and systems" to a new phase suggests that the solutions required for DX advancement will also evolve.
Kobashi: That's correct. For Dentsu Digital Inc., even when working on projects like implementing and operating marketing systems such as CDPs (Customer Data Platforms), it will become increasingly important to constantly consider and provide deeper support that connects to company-wide transformation from the perspective of "organization, people, and culture." We are challenging ourselves to provide new solutions with this mindset.
The "8 KSFs" serve as a litmus test for DX implementation maturity
Q. Through interviews with leading DX companies and analyzing the "8 KSFs," you must have made various discoveries. If a company approached you saying, "We're pursuing DX, but it's not going well," what kind of proposal would you make?
Kobashi: I still believe the "8 KSFs" serve as a litmus test. The degree to which they are achieved reveals the true level of DX implementation. In other words, I think it's beneficial to use these 8 items diagnostically to check how many apply and where the gaps lie.
Take the item "Customer and employee satisfaction are equally prioritized." While every company values customer satisfaction, the question is whether they also consider employee satisfaction—the very foundation for delivering that customer satisfaction—when driving DX. Among the leading DX companies we interviewed, some explicitly defined their DX purpose as achieving both CX (Customer Experience) and EX (Employee Experience). The "8 KSFs" encompass this multifaceted perspective. By identifying gaps compared to the current situation, we can gain significant insights for advancing DX.
The essence of DX is transforming into a "change-resilient corporate structure"
Q. Based on this survey, could you share any outlooks from Dentsu Digital Inc. regarding areas you wish to prioritize or strengthen moving forward?
Kobashi: When we began reviewing the DX survey findings, our team discussed: "Companies that achieve fundamental results through DX will likely drive their own transformation and sustain continuous growth, no matter what management challenges they face in the future."
Companies that fully commit to DX become resilient to all transformations and inherently stronger. Conversely, companies struggling with DX may end up with half-hearted responses not just to DX, but to any change they face. In other words, isn't the essence of DX about becoming a "transformative organization" to ensure long-term survival? Our challenge lies in determining what kind of support we can provide as partners, keeping our sights set on the "transformative mindset that generates sustainable growth" beyond DX.
Q. Many companies likely struggle with questions like, "How can we fully commit to DX to build this transformative mindset?" How would you advise them?
Kobashi: First, don't limit DX to isolated projects like improving existing businesses or new business PoCs. Next, it's crucial to drive cross-functional initiatives like service model transformations that open new markets as extensions of existing businesses, or developing new services as fresh customer touchpoints along the customer journey. Ultimately, it's essential to integrate existing and new businesses and drive company-wide "business model transformation." The most critical insight revealed by this survey is that tackling the indispensable "organizational/corporate culture/talent transformation" required for this is absolutely necessary to build a transformative mindset for the future.
Particularly intriguing in Mr. Kobashi's remarks is the idea that "companies that fully commit to DX can fundamentally develop a resilient corporate structure capable of withstanding any change." To break free from traditional business models and achieve sustainable growth, DX may well be a hurdle companies must overcome.
The information published at this time is as follows.
After joining Dentsu Inc., I was assigned to the sales division and handled media operations. Since 2008, as a Strategic Planner, I have driven strategic planning in advertising, branding, and digital marketing for clients across diverse industries. Following my secondment to Dentsu Digital Inc. in 2022, I currently engage in consulting work in the BX/CX/DX domains. Since 2020, I have served as a Public Relations Advisor for Shiojiri City, Nagano Prefecture.
