2030日本デジタル改革
DIGITIZING INCUMBENT INDUSTRY SECTORS
6 industry sectors that can deploy 100+ use cases to build the digital future gradually, then suddenly
DIGITAL HEALTHCARE
Valued at 42 trillion JPY, the Japanese healthcare industry accounts for ~10% of the nationwide GDP. With the Japanese government's recent pushes on the topic and COVID-19 accelerating the shift to remote patient care, the industry is positioned at the brink of an impending digital disruption, which could lead to drastic socioeconomic benefit.
DIGITAL GOVERNMENT
Currently, less than 12% of Japan's administrative work is transacted online. Japan - despite being the world's third largest economy - ranks 23rd amongst 63 leading high-tech nations when it comes to digital competitiveness, lagging behind other Asian nations like Singapore, South Korea and China. The last OECD Digital Economy Outlook ranked Japan lowest amongst 31 countries in online procedures, with just 5% of citizens using digital applications at public offices, compared to the 70% of more digitally competitive nations like Denmark and Estonia. Annually, 323 million working hours - translating to personnel costs of nearly $8 billion - are consumed by manual processes.
DIGITAL INDUSTRIAL
Valued at nearly 300 trillion JPY, Industrial Manufacturing is the second largest industry sector of Japan's economy just after professional services, and covers a range of innovative products such as automotive, industrial machinery, building technologies, electrical and power equipment. As an industry it is mature, established and has a heritage for high quality, durability, and innovation.
DIGITAL FINANCIAL SERVICES
Contributing nearly 23 trillion JPY, the financial service industry in Japan made up 4% of the nation's GDP in 2018. While other developed Asian countries have shown 4 to 9% revenue growth in the past decade, in Japan there has been zero GDP growth since 2014, with revenues stagnating as well, squeezed by the low interest rate environment. Coupled with high costs, Japanese banks' profitability has also decreased by 5.1% between 2010 and 2017.
DIGITAL OMNICHANNEL RETAIL
In 2019, Japan's retail industry had collective revenues of 145 trillion JPY and a stagnant growth rate of 0.8%. eCommerce comprised of 19.4 trillion JPY of retail revenues, with a robust 7.65% YoY growth; and the sub-segment mobile eCommerce accounted for over half of eCommerce traffic, and had a growth rate of 34% between 2011 and 2018. However, even with the high growth of eCommerce, Japan's EC penetration - the % of total retail sales driven by eCommerce - is an estimated 9%, lower than economies such as China and South Korea, where eCommerce penetration stands at 24%.
DIGITAL EDUCATION
Far more than just an industry, education is the heart of a country, as it is vital in preparing citizens and workers who can think critically and play an active part in society and the economy. Throughout modern times, the world's educational systems have adapted their curricula and pedagogic techniques, but have remained unchanged at their core: individuals receive instruction in a teacher/learner setting, typically delivered and assessed by schools, and tailored to classroom groups. However, evolutions in digital technology and societal shifts are opening opportunities for innovative forms of learning, but also creating the necessity for education systems to adapt quickly to such shifts.