From DX to CX

The letter X, which comprises two intersecting lines, is used when we replace the English word cross with a single letter. Perhaps because it is similar in a linguistic sense, the word Christmas is sometimes contracted to Xmas. Trans is also used interchangeably with cross. Trans-Pacific, for example, means "across the Pacific." That is how trans also came to be rendered as the single letter X.

A term we frequently hear of late that includes trans is "digital transformation" (DX). Even more recently, the term corporate transformation (CX), which denotes a focus on how DX changes the role of corporate management, has appeared.

Looking back on the 30 years of the Heisei era, the Japanese economy certainly endured a prolonged period of sluggish growth. That was the result of several factors acting on a multi-layered basis. While it's old news now, in the early 1990s there was a range of different opinions, even regarding the true economic implications of the bursting of the bubble. The same goes for the new globalization trend that started in the 1990s. I wonder how many people back in the year 2000 correctly predicted China's current status in the world as it vies for supremacy with the U.S.

And now DX has come along. This big wave of new innovation, almost like a game of Othello, will rapidly turn the managerial strengths of Japanese companies that once helped achieve high economic growth into weaknesses. Even in the manufacturing sector, the conventional winning formula of manufacturing better products at a lower cost and distributing them around the world no longer applies. That's why many global Japanese companies have to drastically change corporate management itself in the course of pursuing DX and globalization, which are rapidly advancing at the same time. That is CX.

On top of that, we have the recent coronavirus pandemic. The shock from this will accelerate DX and CX. It is becoming increasingly apparent that these changes will not only transform companies but the whole of society as well, from daily lives spent maintaining social distancing, to decentralized workstyles to avoid gathering in one place. How do we strike a balance between working and enjoying our lives in the midst of this? And how do every one of us increase motivation for working? No answers will be forthcoming without DX and CX. And in the game of Othello I mentioned earlier, DX and CX have the hidden potential to change the weaknesses of Japanese companies into strengths in a single move.

In the future, Japan's population will be increasingly aged. That also threatens to become a serious problem. Perhaps as part of the major changes that have come about through DX, can't we collectively solve these difficult issues we face? I hope that each of you to challenge yourself to explore new ideas from where you currently stand, with a positivity that is not shackled to the past.