by Ngo Tu Thanh (Frank Tu)
Since the invention of the Internet, digital technologies have increasingly become a dominant force in our everyday lives. Digital technology and digitization have evolved remarkably fast in recent years (Coccoli et al. 2014). Morakanyane et al. (2017) define digital transformation or DX as a process that leverages digital capabilities and technologies with the goal of creating new value. Various digital technologies such as social media, cloud-based services, the Internet of Things, blockchain, robotics and automation and Society 5.0 have led to significant changes (Khare et al. 2020, Margiono 2019). In the context of globalization, digital transformation is considered an important strategy that has the potential to positively impact social life and economic growth. As a result, governments and businesses around the world have leveraged digital transformation for their development. In Europe, for example, a 2017 survey found that two-thirds of EU citizens recognize the positive impact of digital transformation and consider it important. Since 2014, the EU has proactively implemented legislation focused on business digitization, investment in digital infrastructure and services, cybersecurity, e-commerce, and data protection (European Parliament 2019).
Working area open to the public on the top of Nagaski Prefectural Government Building
Copyright © Ngo Tu Thanh 2022
Digital transformation has also become a key focus in Japan, both as a buzzword and as a real policy. My interviews with more than thirty policy actors, including politicians, bureaucrats, and advisors, show that many Japanese policy insiders believe that digital transformation was greatly accelerated due to the COVID-19 outbreak. Like the rest of the world, Japan experienced a widespread utilization of digital services and new modes of working, such as telework and e-education, as a result of the pandemic. Indeed, it has been reported that Former Prime Minister Suga proposed a plan to establish a Digital Agency in 2020 due to Japan’s inadequate digital infrastructure exposed by COVID-19 (Suzuki 2021). The Digital Agency was eventually realized in 2021 and is currently headed by Digital Minister Konō Tarō.
In many rural communities, coworking spaces were just introduced recently
Copyright © Cornelia Reiher 2023
Most of the political actors I interviewed firmly believe that digital transformation will have a positive impact on regional development. New ways of working, studying and living, such as telework, workation and distance learning, can help prevent people from migrating from rural areas to cities, especially Tokyo, to work and study. In addition, migrants can now move to rural areas to work and study. Digital transformation is also having a positive impact on Japan’s (rural) development by simplifying the strict bureaucratic processes for which Japan is notorious. Interviewees noted that traditional procedures involving seals, paper documents and fax machines have been eliminated in some public institutions and private companies. For example, a member of the Fukuoka Prefectural Assembly (interviewed August 30, 2022) believes that further efforts should be made to digitize Japan’s bureaucratic procedures to make it easier to apply for national rural revitalization grants.
Coworking spaces in Saga and Oita prefectures
Copyright © Cornelia Reiher 2022, 2023
The Japanese government believes that digital transformation is a domain that requires strong leadership at the national level. In 2022, the Kishida administration further demonstrated its commitment to promoting and leveraging digitalization for regional development by adopting a new framework titled “Digital National Garden City Concept” (Dejitaru denen toshi kokka kōsō). However, local government officials I have interviewed highlight some challenges for Japan’s digitalization efforts. Municipal officials from Buzen City and Hasami Town stated that these municipalities still lack the necessary infrastructure to fully benefit from digital transformation, such as strong internet connection, co-working areas for teleworkers, and human resources capable of driving local digitalization initiatives. However, this new framework presents an interesting development that warrants further examination and attention. Will digitalization succeed in Japan, and how will it impact Japan’s rural development? These are the questions that I want to explore in the future.
References
Coccoli, Mauro, Angela Guercio, Paolo Maresca, and Lidia Stanganelli. 2014. “Smarter Universities: A Vision for the Fast Changing Digital Era.” Journal of Visual Languages and Computing 25: 1003–11.
European Parliament. 2019. “Digital Transformation.” European Parliament. https://www.europarl.europa.eu/RegData/etudes/BRIE/2019/633171/EPRS_BRI(2019)633171_EN.pdf.
Margiono, Ari. 2021. “Digital Transformation: Setting the Pace.” Journal of Business Strategy 42 (5): 315–22.
Morakanyane, Resego, Audrey A Grace, and Philip O’Reily. 2017. “Conceptualizing Digital Transformation in Business Organizations: A Systematic Review of Literature.” In BLED 2017 Proceedings, 21:428–44. Bled, Slovenia.
Suzuki, Wataru. 2021. “Japan Launches Agency to Undo ‘Digital Defeat’: 5 Things to Know.” Nikkei Asia, 2021, sec. Politics. https://asia.nikkei.com/Politics/Japan-launches-agency-to-undo-digital-defeat-5-things-to-know.