What is Digital Transformation (DX)?

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Currently, there is no clear definition of DX, but the DX report cites the definition of DX provided by IDC Japan, a specialist IT research company.

"Companies respond to disruptive changes in their external ecosystems (customers, markets) while driving transformation in their internal ecosystems (organization, culture, employees), and how to use the rcs database for direct marketing create value and establish a competitive advantage by transforming customer experiences both online and offline through new products, services, and new business models using the 3rd Platform (cloud, mobility, big data/analytics, social technology)."

Source: Japan IT Market 2018 Top 10 Predictions: Transforming into a Digital Native Company - Dramatically Expanding Innovation in the DX Economy, IDC Japan Press Release, December 14, 2017

In summary, DX means utilizing the latest digital technology to disrupt in a positive way the organization, culture, and business processes that a company has built up until now, and then revamping them using a third platform to develop new products, services, and new business models and imagine customer experiences that span both online and offline, thereby securing a strong competitive advantage.

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About the Third Platform
The Third Platform is a concept advocated by IDC, and refers to an information infrastructure formed by four elements: cloud, mobility, big data/analytics, and social technology.

1. Cloud (Computing)
Cloud computing is a system that allows ICT (Information and Communication Technology) related services and various software functions to be used via the Internet. Currently, it is the field with the highest market growth potential, and most ICT vendors have already completed the transition to cloud computing, with a wide range of services now being rolled out.

In addition, cloud computing, which provides infrastructure facilities and development environments such as IaaS (Infrastructure as a Service) and PaaS (Platform as a Service), is becoming more widespread, making it essential for a company's ICT systems to be designed with the cloud in mind.