Transforming Invisible Challenges of SMEs into Visible Solutions through DX in Minamiboso

Event Report: Visualizing Hidden Challenges of SMEs through DX

The 'DX Outcomes Presentation' organized by the Minamiboso and Tateyama cities showcased the digital transformation (DX) efforts of local SMEs. This initiative is part of the 'Business Power Improvement Project' aimed at enhancing the operational capabilities of regional businesses.

FORVAL, a leading company specializing in the visualization of ESG management, played a crucial role in conducting this event held at the Tateyama Chamber of Commerce, gathering around 50 attendees, including local government representatives, financial institutions, and businesses from the area.

Background of the DX Initiative

The business landscape surrounding SMEs in Minamiboso and Tateyama has faced significant changes, influenced by rising prices and interest rates, along with serious internal issues such as labor shortages and work style reforms. Given these challenges, both cities collaborated with FORVAL to enhance the management capabilities of local businesses through the introduction of digital technologies aimed at improving operational efficiency, sales, and productivity.

Presentation Highlights

During the presentation, companies involved in the project shared their initiatives and outcomes from five months of personalized support. Participants showcased how they progressed in their DX promotion efforts, supported by FORVAL's expertise. There is already a plan to continue this initiative in the upcoming fiscal year, inviting more local businesses interested in digital transformation to join.

Structure and Support System of the Project

The project consists of three phases: an introductory seminar on DX understanding, a limited six-company hands-on support program, and the outcome presentation. FORVAL led the overall project while its group company, Meisin, provided on-the-ground support, conducting a thorough five-month engagement that included visualization of current operations, creation of roadmaps, assistance with digital tool adoption, and results measurement.

Success Stories from Participants

- Miura Construction Co., Ltd.

The company faced challenges due to lack of schedule information sharing among employees, which hindered inter-departmental collaboration and efficiency. They implemented a visualization of their operations and adopted 'kintone' to streamline schedule management. This led to an impressive increase in their DX start diagnostic score from 10.5 to 39.0, significantly improving information sharing within the company.

- Tanigawa Automobile Co., Ltd.

The company struggled with reliance on the owner's knowledge, which limited other employees’ understanding of the overall operations. By redesigning their business workflow and utilizing tools effectively, they established a management system where all employees could share information, facilitating smoother handovers and improved visibility.

- Kobayashi Cleaning Store

Existing analog management of receipts and records meant inefficiency was rampant. They adopted digital management techniques using Excel, analyzed their workflows, and received comprehensive support in improving planning and execution. As a result, their diagnostic score improved from 19.0 to 37.5, reflecting the positive changes.

Methodology for Outcome Measurement

To visualize progress, the project utilized the 'Kizuna PARK Platform' DX start diagnostic tool. Based on 29 clearly organized questions from indicators established by the Ministry of Economy, Trade, and Industry, it assesses companies on aspects like DX implementation, digital technology utilization, talent development, and business model effectiveness. By conducting diagnostics before and during the support period, they quantified the outcomes achieved.

Comments from Key Participants

During the panel discussion, various stakeholders emphasized the importance of visualization in driving actual change within businesses. They highlighted that continued administrative support is vital for the evolution of local businesses and urged others to participate in upcoming digital transformation initiatives.

Overall, participants recognized the necessity of a robust mindset among business owners, along with the ability to visualize management resources. By doing so, businesses could identify challenges and prioritize solutions effectively.

Conclusion

FORVAL and the project participants agree that pushing forward with DX initiatives is crucial for sustaining local economies. There is a growing awareness of the deficits in skilled personnel for digital efforts, indicating an urgent need for ongoing education and development. The combined approach of digital transformation and talent cultivation will enable sustainable progress, benefiting Minamiboso and Tateyama's regional business landscape.

About FORVAL and Meisin

FORVAL is committed to supporting ESG management visibility, specializing in consulting services for SMEs. Meisin operates with the aim of becoming a leading group in productivity across various sectors, providing tailored solutions from their base in Chiba. Together, they underscore the significance of fostering a culture of digital adaptability for businesses in their region.