Digital Transformation in Date City: A Revolutionary Step Towards Cost Reduction and Efficiency

Digital Transformation in Date City

In an unprecedented move, Date City in Hokkaido has become the first municipality in Japan to implement a digital transaction system with businesses. This initiative, aimed at streamlining operations and reducing costs, utilizes the BtoB Platform provided by Infomart Co., Ltd., located in Minato-ku, Tokyo. The city plans to launch this system from April 1, 2026, targeting about 300 frequently engaged businesses, who will be able to use this service at no cost, barring some premium options.

Background of the Initiative

Date City has been working towards electronic decision-making systems as part of its public accounting system overhaul. However, traditional paper-based operations for invoices and contracts have resulted in significant administrative burdens. The processes of stamping, mailing, and storing paperwork, alongside the additional challenge of increased scanning tasks, have led to inefficiencies. Furthermore, businesses have been continuously facing hidden costs due to stamp duties, mailing expenses, and the difficulties in managing original documents, all of which also affected payment lead times.

To address these challenges, the BtoB Platform allows for the integration of electronic invoicing and contracts on a single platform, which can also connect with their internal systems via API. This comprehensive evaluation of the platform's benefits and the successful track record of numerous enterprises led to the decision to adopt it. The electronic invoicing system is expected to eliminate mailing needs and reduce the turnaround time for processes. Moreover, the abolition of stamp duties associated with electronic contracts promises direct cost savings for businesses. To make participation easier, the system is available on a voluntary basis, allowing small businesses to join at their own pace.

Key Factors for Implementation

1. Unified Platform for Invoicing and Contracts: The ability to manage all necessary documentation—such as invoices and contracts—on one platform was a compelling factor. This facilitates a seamless, one-stop digitalization for ordering, contracting, and invoicing.

2. API Integration with Public Accounting Systems: The BtoB Platform's capability to connect with various public accounting systems through API means that invoice data can automatically sync as digital data. This reduces the manual effort and errors associated with data entry into accounting systems, enhancing efficiency.

3. Utilization of New Regional Economic Grant: The BtoB Platform qualifies for the digital implementation type under the New Regional Economic and Living Environment Creation Grant, which helps to lower initial deployment costs—another important consideration in the decision-making process.

Expected Outcomes of Implementation

1. Cost Reduction through Digital Transformation: The project aims to abolish stamp duties with electronic contracts and reduce mailing costs. Additionally, this transition is expected to help in minimizing hidden costs associated with manual document management and cross-verification processes.

2. Significantly Enhanced Administrative Efficiency: By integrating the BtoB Platform for invoicing with the city’s public accounting system through API, expenditure orders can automatically populate within the system. This drastically cuts down on the time municipal staff previously spent creating and validating these orders manually.

3. Reduced Burden on Businesses: Completing the entire transaction process digitally eliminates the need for steps like printing, inserting, and physical document storage. This could shorten payment lead times from 1-2 days within the city and 2-3 days for transactions outside the city.

In a demonstration of adaptability, city employees have begun utilizing the BtoB Platform.

Future Developments

Date City aims to expand the BtoB Platform's reach to all its trading partners, targeting about 1,000 companies in total. Invitations to use the platform have already been sent to approximately 300 frequently engaged businesses, with 112 companies registering by April 2026. The city will continue to encourage digitalization of documentation processes, with a focus on businesses that are proactive towards DX (Digital Transformation). By progressively optimizing staff efficiencies, Date City aims to reallocate resources towards providing higher-value administrative services.

Comments from City Officials

The administration is optimistic that the adoption of this service will not only streamline municipal operations but also alleviate burdens for local businesses, enhancing operational speeds through more efficient electronic invoicing and contracts. Completing the invoicing process online reduces risks associated with mailing delays and costs. Moreover, the elimination of stamp duties is anticipated to expedite contract finalization, which is particularly beneficial for local SMEs. Plans for the future involve broadening the platform's usage, initially focusing on invoicing and contracts, and eventually expanding to include procurement documents like orders and receipts. By encouraging voluntary participation, the city hopes to improve regional digital readiness progressively.

Service Overview

The BtoB Platform for invoices supports not only issuing invoices but also receiving them and notifying payment amounts, making it a versatile cloud service for invoice management. It significantly optimizes time, costs, and efforts connected with invoicing tasks, promoting paperless operations and facilitating remote work in accounting functions.

Utilizing a data-to-data method for exchanging invoices allows for digital transfer of details without converting to PDF format, ensuring compliance with digital storage laws and invoice systems. Currently, over 1.25 million companies are reported to be using the service, highlighting its widespread adoption in enhancing business processes.

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About Infomart

Since its establishment in 1998, Infomart Co., Ltd. has provided cloud services that streamline invoicing and order transactions between businesses. Its flagship service, the BtoB Platform, is utilized by over 1.25 million companies, facilitating a total transaction volume exceeding 71 trillion yen annually.

Company Name: Infomart Co., Ltd. (TSE Prime Market: 2492)
CEO: Shin Kimura
Headquarters: 1-2-3 Kaigan, Minato-ku, Tokyo
Established: February 13, 1998
Capital: 4.996 billion yen (as of March 2026)
Business: Operation of B2B electronic commerce platform
Number of Employees: 884 (consolidated), 860 (unconsolidated, as of March 2026)
Website: Infomart Corporate