At a recent event, we had the opportunity to listen to a compelling lecture by a famous Japanese entrepreneur Mr. Horie, often referred to as “Horiemon,” which I’m eager to share insights from.
The focal point of his talk was the digital transformation (DX) journey, and he immediately set the tone with a provocative statement: “They’re talking about DX, but how far behind are they?” This candid observation is emblematic of Horie’s straightforward approach.
This sentiment, however, resonates with many. For individuals accustomed to using smartphones, the internet, cloud services, and AI, the push for DX might seem overdue. “DX? Why now?” one might wonder, given the pervasive use of digital technology in our daily lives.
Yet, the reality is that numerous sectors still heavily rely on analog processes. Horie pointed out the irony in discussing cutting-edge IT and digital transformation at conferences where the first order of business is the exchange of paper business cards among attendees. Similarly, the persistence of paper documents underscores the ongoing presence of traditional practices.
Horie also touched on the topic of cash transactions. Despite the push for cashless payments, cash remains indispensable, he argued, due to its role in less transparent financial activities, including tax evasion and the creation of slush funds even by some lawmakers. This reliance on cash presents challenges for fully adopting electronic payment systems.
He highlighted a stark reality: no major company or government office in Japan has achieved complete digital transformation. The path forward, as Horie sees it, involves either founding entirely digital-native companies or radically transforming struggling businesses on the brink of failure into digital-first entities.
Horie’s insights offer a compelling look at the complexities and paradoxes of digital transformation in Japanese society today, emphasizing the gap between digital ideals and analog realities.
