Future Technology

Definition and purpose of DX

In order to understand the relationship between DX and ODD, we will explain the meaning of DX once again. When promoting DX, the goal is not only to “introduce the latest technology”, but also what you want to change and how.

Key points for defining and promoting DX

DX stands for Digital Transformation, which literally translates to “digital transformation”. Originally an academic term, this term referred to the development of technologies that improve people's lives.

Since then, it has become a business term for companies making major changes to their products, services and business models, or fundamental changes in market structure due to the development of technology. DX is not just the development of the technology itself, but also the significant impact it has on businesses and markets.

The Ministry of Economy, Trade and Industry defines DX as follows in the “Guidelines for Promoting Digital Transformation (Guidelines for Promoting DX)”.

“In response to rapid changes in the business environment, companies are leveraging data and digital technology to transform their products, services and business models based on the needs of customers and society.
Establish a competitive advantage by transforming our organization, processes and culture.

As noted in this definition, the keyword in DX is “transformation”. DX is about making a big change to something through the use of digital technology and data. Therefore, when promoting DX, we need to think about the answer to the question: “What do we want to change and how?” »

(Related)“DX = computer use” is not the same thing! What is DX that you want to understand correctly? Points of importance and promotion

“Defining the goal of a major transformation” is essential for promoting DX

The development of technology and the use of data have the power to evolve not only a company's business model, but also market structures and society. As our company's mission is to “create a sustainable future through promoting the use of data”, we believe that technology and data can have a “great impact on Japanese society”.
As the saying goes: “The heart of DX is the use of data.” » Using technology and data to promote DX will have a big impact on society by breaking your company's current situation and will produce results in my work. field of business these days, I think it has to do with the desire to improve one's self-esteem and the determination to aim for major change.
On the other hand, if there is another interpretation, if there is no big goal such as “changing society”, the introduction and implementation of technology, which is only originally a means to achieve an objective, will become a simple objective. will end up being a labor-saving measure and it will be difficult to achieve results.

What are the SDGs?Global trends and Japan's action plan

Now let me explain the basics of the SDGs. Let's take a look at the goals set by the United Nations and the types of action plans Japan has in place to meet them. We will also explain the differences between the SDGs and CSR, which have many similarities.

17 SDG goals

SDG is the abbreviation for Sustainable Development Goals, called “Sustainable Development Goals” in Japanese. These are international goals adopted at the United Nations summit in 2015 to aim for a sustainable and better world by 2030. The following 17 goals were defined, pledging to “leave no one behind, for 'development of all and of all regions of the planet'.

Poverty: ending poverty in all its forms, everywhere
・Hunger: ending hunger, achieving food security and better nutrition, and promoting sustainable agriculture.
・Health: ensuring a healthy life and promoting the well-being of all people of all ages
・Education: ensure inclusive and equitable quality education for all and promote lifelong learning opportunities.
・Gender: achieving gender equality and empowering all women and girls
・Water and sanitation: guaranteeing the availability and sustainable management of water and sanitation for all
・Energy: ensuring access for all to affordable, reliable, sustainable and modern energy
・Economic growth and employment: Promote inclusive and sustainable economic growth, full and productive employment and decent work for all.
・Infrastructure, industrialization and innovation: build resilient infrastructure, promote inclusive and sustainable industrialization and promote innovation.
・Inequalities: Correcting inequalities within and between countries
・Sustainable cities: achieving inclusive, safe, resilient and sustainable cities and human settlements
・Sustainable consumption and production: ensuring sustainable consumption and production patterns
・Climate change: take urgent action to reduce climate change and its impacts
・Marine resources: conserve oceans and marine resources and use them sustainably for sustainable development.
・Land resources: protection, restoration and promotion of sustainable use of terrestrial ecosystems, sustainable management of forests, combating desertification, halting and reversing land degradation and halting biodiversity loss.
Peace: Promote peaceful and inclusive societies for sustainable development, ensure access to justice for all and build effective, accountable and inclusive institutions at all levels.
・Means of implementation: strengthening means of implementation, revitalizing global partnerships and achieving the Sustainable Development Goals.

A further 169 targets were set in the 17 areas mentioned above.

How successful is Japan? Challenges and action plans

In Japan, the SDG Promotion Headquarters was established in 2016, headed by the Prime Minister, and the SDG Promotion Roundtable was established under this headquarters, where experts from a wide range of fields exchange ideas. opinions. As a result, the “SDG Action Plan 2020” was released, which includes specific initiatives to be implemented in 2020 to achieve the 2030 goals.

This action plan focuses on the following three points.

I. Business and innovation – Promoting “Society 5.0” linked to the SDGs –
II. Regional revitalization driven by the SDGs and the creation of resilient, environmentally friendly and attractive cities
III. Empowering the next generation and women as bearers of the SDGs

Concerning the relationship with the company, the first point, “Business and Innovation”, is particularly important. Here, in addition to integrating the SDGs into business management and promoting smart agriculture, forestry and fishing, we can see the words “use of ICT research and development , AI and big data”. This point makes us feel the link between the SDGs and the DX.

What is the difference between the SDGs and CSR?

CSR (Corporate Social Responsibility) refers not only to the pursuit of profits and compliance with laws, but also to the responsibility that companies must assume as citizens towards society. The importance of CSR lies in the fact that companies have an obligation to respond appropriately not only to consumers but also to all stakeholders, such as employment taking into account human rights, contribution to local communities and respect for the environment.

Although there are similarities between the SDGs and CSR, such as the emphasis on social responsibility, there are also differences. For businesses, the SDGs refer to the responsibilities that companies must assume in their core activities, while CSR refers to the responsibilities that companies must assume in areas other than their core business. In CSR, the “core business + α” is called into question, and in the SDGs, the core business itself is called into question.

What is “Society 5.0” proposed by the government and Keidanren? DX that contributes to the SDGs

DX is considered one of the ways to achieve the SDGs. We will explain the “Society 5.0” advocated by Japan and talk to you about the relationship between DX and SDGs.

DX is one of the ways to achieve the SDGs

There is an argument that DX is one of the keys to achieving the SDGs, as stated in the Japanese government's action plan, “Using Research and Development in ICT, AI and Big Data”. Keidanren is also organizing a subcommittee titled “Digital Transformation (DX) to Achieve the SDGs,” and discussions are taking place in the context of achieving economic growth while solving global problems through DX.

Proposal for “Society 5.0” by the government and Keidanren

The Japanese government and Keidanren proposed the concept of “Society 5.0” as a keyword linking DX and the SDGs.

According to Keidanren, Society 5.0 is “a new future society that will be realized by integrating innovative technologies such as AI, IoT, robots and big data into all industries and societies”, and a “hunting society (Society 1.0).” the fifth new form of society in the history of human social development, after the agricultural society (society 2.0), the industrial society (society 3.0) and the information society (society 4.0).

The future society envisioned by Society 5.0 is nothing less than an ideal society in which humans can master digital technology and everyone can experience a high quality of life. The way to achieve this is to transform businesses and society through DX.

Future possibilities presented by the DX promotion

Even though the SDGs do not necessarily focus solely on business activities, there is no doubt that DX is one of the means to achieve them. If DX changes business models and society, and humans become capable of using new technologies such as AI and big data, existing social problems will be solved and a society where everyone can benefit from goods and services he needs will be created. it is believed that this will become reality.

Therefore, it can be said that the importance of achieving DX is extremely great. DX is a project that is not only about improving a company's sales or changing the market structure, but also about the future company itself.

summary

DX is the transformation of a company's products, services and business models through the use of digital technology and data. Furthermore, it has the potential to transcend the boundaries of a single company and fundamentally change market structure or lead to the resolution of social problems.

In this regard, DX and the SDGs become relevant. DX is believed to play an important role in achieving the SDGs, which set goals for achieving a sustainable society.

(reference)
・UNDP “Sustainable Development Goals”
・Ministry of Foreign Affairs “What are the SDGs? »
・Keidanren “Society 5.0 for the SDGs”
・Keidanren “Keidanren Times DX Weekly to Achieve the SDGs”

At NTT Data, we focus on “review work” performed by qualified experts as the ultimate goal of multimodal AI.

Currently, many tasks such as inspections and controls carried out in various industries are carried out based on the intuition and experience of veterans, which makes it difficult to fully convert them into logic and systematization. Challenges include automation to cope with the increase and training difficulties. successors and the transmission of know-how.

Multimodal AI should be a solution to these problems.

For example, in the process of considering the novelty of illustrations, when humans judge novelty, they use not only the applied illustration but also the explanatory information attached to the application form to identify similar works in the past. Multimodal AI, which uses images and text to search for similar illustrations that include concepts, is considered effective for this task.

Figure 2: Multimodal AI in Novelty Review

Additionally, as part of our fraudulent goods inspection work, we select suspicious goods based on multi-faceted appearance information such as weight, color, shape, shipper details and recipient and printing characteristics. Multimodal AI, which uses 3D information, images, text and table data to determine the suspicious appearance of cargo, is considered effective for this task.

Figure 3: Multimodal AI in cargo inspection

NTT Data is also developing technology to automate and improve the automation and sophistication of various screening operations that require integrated judgment based on various information, such as loan screening, insurance screening and vehicle inspection.

The theme is “creativity”. A look at new ways of using technology, from reuse to misuse.

Dentsu Lab is an internal organization of Dentsu Inc. (head office: Minato-ku, Tokyo, representative director, president and general manager: Norihiro Kuretani, hereinafter referred to as “Dentsu”) that trains in solving social problems and develop new expressions using technology. Tokyo” and the technical director of BASSDRUM Group (operated by BASSDRUM Co., Ltd., head office: Minato-ku, Tokyo, representative director and co-founder: Kanta Shimizu) promoted the use of advanced technologies in businesses . business for several years. We have released the latest “Creativity” issue of “THE TECHNOLOGY REPORT”, a booklet that provides useful insights to form a vision for future business and manufacturing. Since its inception, we have explained themes such as “resolution”, “spectacle” and “humanity”, but this time we will discuss the “misuse”, “misuse” and “acrobatic use” of technology related to the evolution of technology. technology, as well as the underlying causes. Consider the creativity of some people.

The digital version can be downloaded free of charge from the website (https://the-technology.report/vol03/).

Combine various technologies to create interesting and lively ways to use them. And the feeling of accomplishment that comes from solving a problem is the true joy of working in technology. What is needed for this is a “vocabulary” of how to use technology. This time, we present many examples, ranging from “inventing new uses” such as diversion and misuse, to new technologies to come. In a collaboration between Dentsu Lab Tokyo and BASSDRUM, Japan's leading CTO group, we will decipher the technological leap driven by creativity.

<«LE RAPPORT TECHNOLOGIE N°3»>

・Specificity: Creativity
・Editor: Kanta Shimizu (GASSDRUM/Technical Director)
・Editor-in-chief: Yasuhiro Tsuchiya (Dentsu Lab Tokyo/Researcher)
・Supervision: Toshi Morioka (GASSDRUM/Technical Director)
・Publisher: Dentsu Lab Tokyo, BASSDRUM ・Publication date: December 4, 2023
・Price: Free ・Limited version of the book: booklet in A5 format (210 x 148 mm) / 28 pages
・Digital version: PDF format

<À propos de l'acquisition>
・Limited version of the book (free): Please contact your Dentsu representative.
　*Quantities are limited.
-The digital version can be downloaded for free from the site below.
https://the-technology.report/vol03/

First issue 0: https://the-technology.report/vol00/
Number 1: https://the-technology.report/vol01/
Number 2: https://the-technology.report/vol02/

<À propos du Dentsu Lab Tokyo>
Dentsu Lab Tokyo is a creative R&D organization that integrates research, planning and development. With the philosophy of “PLAYFUL SOLUTION” and “Don't worry about anything”, we use technology and digital ideas to develop expressions that touch people's hearts and to solve social problems that the world is currently searching for.
https://dentsulab.tokyo

<À propos de la grosse caisse>
We are pioneers in technical leadership and were one of the first to advocate the importance of the “CTO” role, which covers ever-expanding technical areas such as front-end/back-end, software /materials, and integrates them for implementation. https://bassdrum.org/

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summary:Many business leaders are beginning to believe that in just a few years, powerful generative AI will be able to perform cognitive tasks at the same level as humans. But this is a big misconception. Leaders will coexist with generative AI and humans in ways unknown.…See moreWe must prepare for a changing and uncertain world. This article outlines four steps leaders should take to achieve this goal.close

Preparing for a world where generative AI and humans coexist

Recently, I received a call from the CEO of a well-known bank wanting to discuss the future of generative AI (artificial intelligence). It originally worked with the bank on scenarios aimed at improving fraud detection and customer service, but a series of recent announcements make it clear it has even bigger ambitions. Banks, like many industries, have labor problems. There is a gap between the demand for qualified talent and the supply of employees willing to work in an office under pre-pandemic rules.

He believed that generative AI could be a kind of silver bullet. This new tool will enable automation to reduce costs and increase efficiency, but it could also solve the labor shortage problem. Simply put, when will AI replace human workers?

Since November 2022, I have had similar conversations with leaders from various organizations, including insurance companies, manufacturers, and pharmaceuticals. Among them were Hollywood studio executives whose writers and actors were on strike. Every leader wants to know how to create more value with fewer employees. The reason is that in the fall of 2022, the chatbot “Chat GPT” developed by Open AI has rapidly spread, demonstrating the ability of AI to generate emails, papers, recipes, financial reports, articles, ideas, etc. Goldman Sachs predicts that 300 million jobs will be lost or significantly reduced due to generative AI within 10 years.

The turmoil has already begun. Jobs for rapid engineers (those who ask systems like Chat GPT to generate content) offer annual salaries of $300,000 or more. Open AI's GPT-4 has passed the Uniform U.S. Bar Exam, making it appear that lawyers may no longer be needed in corporate legal matters in the near future. In fact, Walmart is currently prototyping a generative AI system (unrelated to open AI) that will be used to negotiate contracts with certain business partners.

Meanwhile, 75% of lawyers and procurement staff involved in contracts said they now prefer to negotiate with AI rather than real people. Google's “Med-PaLM 2” is a special model that has been trained with medical knowledge and currently answers the questions of the medical licensing exam at the specialist level. In summer 2023, a trial is expected to begin that will automatically interpret mammograms and create reports without the intervention of a human doctor.

This incredible pace of development has led many leaders to conclude that within just a few years, powerful AI systems will be able to perform cognitive tasks at the same (or better) level than humans. Business leaders seduced by the promises of AI, worried about attracting and retaining talent and overwhelmed by the recent correction in stock prices and losses lower than analysts' expectations, are now working with fewer employees. as becoming. However, from my point of view, this is a huge mistake.

First, it is too early to accurately predict the future of AI. Generative AI, in particular, is just one area within a larger field that encompasses many interdependencies at different stages of development. This is just speculation about when and what jobs will be taken over by AI. It's not enough for an AI system to perform a task: its results must be proven reliable, integrated into existing workflows, and managed for compliance, risk, and regulation.

Second, in an era of rapid technological disruption, executives focus on short-term profits and don't think much about how their value networks will evolve in the future. As AI evolves, entire parts of the business will need to be restructured, but this will need to be done in real time, without a clear vision of the future. Do you remember? When the Internet and web browsers first appeared, they were seen as nothing more than entertainment. And no one was prepared for the fundamental changes these two changes would bring. It was impossible to predict at the time that the way presidential elections would eventually change and the world's first multi-billion dollar company would come into being.

Indeed, today's leaders must make decisions in the most complex business environment I have experienced since the dawn of the Internet. It's understandable that you want to follow the next wave of technology, but without knowing it, you're putting the future of your business at risk. Here we share steps all leaders can take to prepare for an uncertain world where generative AI and human workers coexist, but evolve in unknown ways.

Prepare for an unpredictable future

Paradoxically, workers should recognize that they will evolve alongside generative AI, rather than be replaced by it. Workers must evolve and learn new skills repeatedly. And leaders need to take a different approach to maximize the potential of AI in their organization. The approach is to repeatedly develop a workforce capable of responding to each major advance in AI. Above all, create future scenarios supported by evidence and move beyond old ways of thinking within your organization.

What can leaders do now to survive these times?

(Bonus for signing up as a free member of the DHBR e-edition)Michael E. Porter's article is now available!