#Japan #Higashikurume #Infomart #BtoB Platform

Digital Transformation in Higashikurume

In an impressive leap towards digital transformation, Higashikurume City in Tokyo has adopted the BtoB platform series, introduced by Infomart Co., Ltd. This initiative aims to streamline accounting and contract administration, resulting in a significant reduction of approximately 86% in paperwork. It demonstrates how local governments can leverage technology to improve services and operational efficiency.

Challenges Before Implementation

Prior to the introduction of the BtoB platforms for invoices and contracts, Higashikurume faced several challenges as it strove to meet its digital transformation goals. The city aimed to establish a user-friendly municipal office, enhancing citizen convenience while improving service quality through operational efficiency. However, reliance on traditional paper-based methods led to decreased productivity and increased time and cost burdens for both the city and its business partners.

Every year, the accounting department deals with around 35,000 expenditure vouchers. Since multiple invoices can be consolidated into a single voucher, the actual number of invoices received is even higher. On a daily basis, officials were required to stamp nearly 150 vouchers, leading to time-consuming processes and the need for 96 files per year just for document storage. This system was cumbersome, exacerbating issues related to storage space and document retrieval.

In addition, the contracts were entirely managed on paper, necessitating the processing of contract decisions within the financial accounting system. Creating and printing two copies of contract documents for delivery to businesses was a significant burden. Businesses had to bear costs related to transport for document handover or mailing, with additional costs for revenue stamps depending on contract specifics.

Reasons for Adopting BtoB Platforms

The decision to implement the BtoB platforms was influenced significantly by their compatibility with existing finance accounting systems. This integration allowed for seamless data linkage, eliminating the need for staff to adapt to new systems. Moreover, the platforms had been rigorously tested with local governments, aligning with Higashikurume's direction for regional digitalization. Infomart's established track record of facilitating smooth transactions across a broad user base contributed to the decision, as did the platforms' compatibility with the Local Government Wide Area Network (LGWAN), crucial for local government operations.

Positive Outcomes from Implementation

1. Increased Efficiency and Reduced Errors

The integration of BtoB invoicing platforms with existing systems alleviated the need for extensive new training. This connection greatly reduced the risk of processing errors and sped up review and payment processes. Staff in remote offices no longer needed to travel to headquarters with paperwork, dramatically cutting down on travel time. The efficiency in processing invoices has been drastically improved, with over 35,000 cases handled annually and more than 150 cases reviewed daily. The overall time taken for administrative reviews has been significantly shortened, supporting a telework environment.

2. Massive Reduction in Paper Usage

Digitalization led to the downsizing of bulky file collections from 96 to just 14 annually, meaning the city achieved around an 86% reduction in paper usage. Other departments followed suit, enhancing the overall progress towards a paperless office. The ability to track invoice statuses online improved progress management and collaboration, significantly lowering the risk of missed payments or oversights, which in turn prevents accounting accidents.

3. Enhanced Satisfaction Among Businesses

A survey conducted two months post-implementation among 80 businesses showed that approximately 70% found the system user-friendly and around 80% were satisfied overall. The shift to electronic contracts eliminated the need for revenue stamps and allowed for completed online exchanges, making it an attractive option for many businesses looking to adapt.

Future Directions

Moving forward, Higashikurume plans to increase the number of businesses utilizing the BtoB platform while striving for continued paperless improvements. With a focus on SDGs and Green Transformation (GX) strategies, the city is also optimistic about reducing its environmental impact, including CO2 emissions. The ongoing expansion of BtoB platform usage aims not only to enhance precision and ease but to drive regional digital transformation effectively. By leveraging digital capabilities, Higashikurume seeks to achieve accurate and swift accounting processes and mitigate risks associated with accounting mishaps.

For further insights, be sure to check out the complete case interview and additional resources from Infomart.

Full Case Interview

Government-Municipal BtoB Platform

About Infomart

Founded in 1998, Infomart Co., Ltd. specializes in providing cloud services to streamline BtoB transactions such as invoicing and procurement. With over 1.2 million companies using the BtoB platforms, the company has effectively facilitated transactions amounting to over 62 trillion yen annually. Infomart continues to push boundaries, ensuring that businesses can transition towards more effective digital operations seamlessly.