Japan may be known for its bullet trains, but the country’s tech scene is quickly catching up to the rest of the world. In recent years, there has been a huge focus on digital Japan — and it’s only just begun. With a population of nearly 127 million and one of the world’s largest economies by GDP, Japan is now looking to technology to improve lives and government services.
The Japanese government has been working on putting digital technology directly into the hands of citizens. This will allow them to communicate with each other and the government in a seamless and integrated way. How will this digital transformation work? What’s at stake? And what makes digital Japan such an interesting country for digital innovation?
Japan’s drive towards digital transformation
The Japanese government came up with the Digital Government Implementation Plan in 2018 to improve efforts to merge data and ICT services throughout the government and across the private sector. Merely two years later, the world was affected by the COVID-19 pandemic, and digital Japan was not excluded.
The pandemic affected the healthcare management system, and the idea of a clear-cut digital plan was hatched. Thus, as Japan recovers from the effects of the pandemic, it is putting gears in motion to improve legacy systems through digital transformation or DX strategy.
In June 2022, the Japanese government accredited a document called the Priority Policy Program for Realizing Digital Society.
The document discusses strategies for the country’s DX journey. Also in the paper were the basic policies of the previously created national Digital Agency. Then to realize a future digital society, individuals and companies in the private sector – technologies and skilled individuals will all have to play their roles.
Japan’s digital ID program
In Japan, a significant portion of administrative tasks still requires in-person visits – whether it’s banking, filing taxes, or handling paperwork for moving homes.
The My Number ID card, designed to facilitate digital verification, aimed to shift some of this burden online. However, since its introduction in 2015, no political leader has been able to make it widely accepted – in 2019, a mere 15% of the population made use of it, partially due to concerns about data privacy.
In 2022, Kono Taro, Japan’s current Minister for Digital Transformation, decided to give the digital ID program another shot.
In October 2022, Kono took a bold step to push this digital ID into the mainstream. He issued an ultimatum: Starting in 2024, Japanese residents would be required to possess a My Number card if they wished to access their hard-earned health insurance benefits at the doctor’s office.
This move was aimed at driving greater adoption of the digital ID.
(Despite this, the journey has been far from smooth.)
Where is digital Japan going next?
Back in 2021, I wrote an article about how the Japanese government has had its fair share of challenges in an attempt to go digital.
Regrettably, it appears that many of these issues continue to remain the same.
Even Japan’s Digital Minister Kono Taro is quick to point them out.
Recently, he appeared at the Tallinn Digital Summit – one of the biggest digital government events.
This marked his second consecutive year participating in this international gathering, underscoring Japan’s continued efforts to make its mark on the global digital stage.
A huge deal!
However, during his brief 4-minute speech, Kono Taro addressed several key hurdles digital Japan faces in its digital transformation journey. These include Japan’s unfavourable demographic situation, a shortage of personnel in his department, the intricacies of the Japanese writing system when compared to Estonia’s, and the mindset of the population he serves.
Also, by the government’s own figures, less than half of the population thinks the digitalisation of society is a good thing, and only 28% feel they are adapting to it.
What’s more, only 29% of those who have used the country’s digital government services are satisfied with them.
Final thoughts…
I have to mention that Japan’s Digital Agency is a relatively new entity, having been established in September 2021. It’s just two years in the making.
In September, the agency published its Annual Report, aimed at providing insights into the path that Japan’s digital path might take in the future.
Their strategy appears to encompass three main elements: breaking down barriers to technology adoption, standardising the government’s digital approach, and addressing internal issues within the organisation.
There’s one undeniable fact: Japan’s ambition and progress in its initial year of digital transformation are commendable. However, the road ahead remains uncertain.
It’s a journey marked by the challenges of change and adaptation in a society deeply rooted in tradition, and only time will reveal the full extent of Japan’s digital transformation story.
