Digital strategies and implementation for small and medium-sized enterprises in Japan

This study aims to clarify the importance of digital strategies and implementation for improving the productivity of small and medium-sized enterprises (SMEs). We defined digital transformation (DX) as a management transformation aligned with “Digital Governance Code 3.0” by the Ministry of Economy, Trade and Industry (METI) (1). And we propose a method that classifying challenges SMEs face regarding digital implementation into three categories, namely ‘Front,’ ‘Middle,’ and ‘Back’ to evaluate the degree to which digital technologies are utilized in business operations. With a survey targeting 14 well-performing companies and 14 other companies in the Kanto region in Japan, it was revealed that well-performing companies not only pursue digitalization but also actively utilize digital tools in their daily operations to improve productivity.