The Progress of Digitization

According to the Ministry of Internal Affairs and Communications’ Information and Communications White Paper for the year 2021, the amount of information technology investment* in Japan in 2019 was approximately 14.3 trillion yen (2015 price assessment), accounting for 15.7% of private-sector capital investment in the same year. While the amount of IT investment itself is increasing slightly, its share of total capital investment appears to have leveled off. In terms of investment destination, software (contracted development/packaged software) accounted for the largest share at 60% of the total.

※ Information and communication capital goods (hardware/software), not including cloud services.

Source: Ministry of Internal Affairs and Communications Ordinance, 2021 White Paper on Information and Communications

What about the use of cloud services?

According to the same survey, the use of cloud services in 2020 accounted for about 70% of the total, and the use rate seems to be increasing year by year. The survey also indicates that more than 80% of companies are feeling the benefits of cloud services, and this is likely a factor in the increase in the usage rate.

File storage and data sharing was the most common use, at approximately 60% of the total, followed by e-mail, internal information sharing/portal, schedule management, payroll, financial accounting, human resources, data backup, and other major uses.

Source: Ministry of Internal Affairs and Communications Ordinance, 2021 White Paper on Information and Communications

Source: Ministry of Internal Affairs and Communications Ordinance, 2021 White Paper on Information and Communications

Challenges of Digitization

As described above, while the shift to digital cloud computing is gradually progressing, other investments in information technology have remained flat.

So what about public awareness? According to the survey, 35% of respondents feel that digitization is progressing. On the other hand, 33% of respondents feel that digitalization is not progressing, indicating that the public’s views are divided. (32% of respondents chose “neither.”)

Source: Ministry of Internal Affairs and Communications Ordinance, 2021 White Paper on Information and Communications

Among respondents who feel that digitization is not progressing, the top reasons given for the lack of digitization are lack of information, security/leakage, lack of IT literacy, lack of digitized work, and lack of progress in communications/device development, which seem to be the main challenges for digitization.

Source: Ministry of Internal Affairs and Communications Ordinance, 2021 White Paper on Information and Communications

How to Solve Digitization Challenges

Issues Related to Information Security

Countermeasures for information security issues include in-house implementation and outsourcing. Since information security measures require a wide range of knowledge, it is recommended to outsource them to outside specialists such as information security consultants. Even in the case of outsourcing, it is ultimately necessary for employees themselves to have basic knowledge. Therefore, it is advisable to formulate an in-house security policy under the supervision of an expert and take basic measures against unauthorized system intrusion or virus infection, information leakage, and equipment failure due to disasters.

Issues with a Lack of Communication/Terminal Development

One solution to the problem of lack of communication/device maintenance is to use public support programs. The Small and Medium Enterprise Agency’s IT introduction subsidy program for improving productivity in services provides a subsidy of 50% (up to 100,000 yen) for the purchase of PCs and tablets. In addition, cloud service usage fees are subsidized for two years. (From the FY2021 supplementary budget proposal)

Lack of IT literacy/Challenges with Less Digitization Work

We recommend the use of the cloud workflow Questetra BPM Suite as a countermeasure against the challenges of insufficient IT literacy and the lack of digitized work.

Questetra BPM Suite does not require advanced IT literacy, as it can construct a business system with no code. Specifically, by creating a workflow diagram with a simple mouse operation, a business system in which business flows according to the workflow diagram can be constructed with no code. In addition, Questetra BPM Suite does not depend on specific business operations. It can be applied to all kinds of business, so it is possible to increase the number of business operations that can be digitized.

Questetra BPM Suite can also solve some issues related to information security.

For example, it can help prevent brands from being tarnished by social networking posts. Risk can be avoided by establishing a checking process whereby a supervisor checks the content of a post before it is posted.

It is also effective in preventing email from being misdirected. Various business data, including email addresses, can be inserted into an email, and it is also possible to have the email sent automatically. (Data can be stored/inserted into various data containers that have been set up, in addition to email.) This prevents human error, such as incorrectly pasted addresses or email addresses, or incorrect attachments.

In addition to these, Questetra BPM Suite is also useful for preventing ID/password mismanagement for multiple cloud services, and can be linked to external cloud services to perform automated processing. This means that employees do not need to log in directly to the cloud service to process cloud service tasks, which helps prevent ID/password mismanagement.

I would recommend it to anyone who wants to make digitization a reality.

40% implement telework, 60% had prior experience. Small and medium-sized enterprises lagged behind.

According to Tokyo Shoko Research’s 18th survey on enterprises affected by the COVID 19* of October 2021, approximately 37% of all companies surveyed in Japan deployed teleworking. (By company size, about 66% of companies with a capital of 100 million JPY or more and about 31% of companies with a capital of less than 100 million JPY deploy teleworking. The survey defines large companies as those with a capital of 100 million JPY or more, and small and medium-sized companies as those with a capital of less than 100 million JPY.)

In terms of telework experience, about 58% of all companies have implemented telework (about 85% of large companies and 53% of small and medium-sized companies).

Source: Tokyo Shoko Research, “The 18th survey on enterprise affected by the COVID 19”

※ Survey date: October 2021, Survey method/object: Internet research panel

Of the companies in Japan that implement telework, only about 34% of all companies have more than 70% of their employees teleworking. (By company size, large companies accounted for about 30%, and small and medium-sized companies about 36%; about the same level.) It appears that telework is applied to only a portion of employees, depending on the type of job, etc. in many companies, and not to all employees.

Increasing number of companies implementing telework

According to the 2021 edition of the Ministry of Internal Affairs and Communications’ White Paper on Information and Communications, the number of teleworking companies increased when the state of emergency was declared, and then decreased.

Thus, the telework implementation rate has been gradually increasing, although it has been fluctuating. As the implementation rate increases teleworking has taken root in some companies, and over the long term the number of companies implementing teleworking appears to be on the rise.

Source: “White Paper on Information and Communications 2021” Ministry of Internal Affairs and Communications

What are the Challenges of Telework?

According to a Tokyo Shoko Research survey on telework implementation by small and medium-sized companies*, the majority of companies that do not telework cite the lack of telework-enabled operations (approximately 65%) as a problem, while other issues include poor internal and external communication (approx 35%), low productivity (approx 24%), and the lack of a PC/communications infrastructure (approx 20%). were cited as other issues.

On the other hand, companies implementing telework cited information security (approx 57%), internal communication (approx 56%), PC/communication infrastructure (approx 55%), labor management (approx 43%), and going paperless (approx 37%) as challenges.

※Survey period: May 2021, Target: Small and medium-sized companies (662 companies) in the 23 wards of Tokyo

In Japan, The Ministry of Internal Affairs and Communications (MIC) released the Telework Security Guidelines (5th edition) on May 31, 2021, that provides guidelines for security measures regarding information security, which many teleworking companies find to be an issue. Telework companies are required to comply with these guidelines.

However, information security measures did not begin with telework. Implementation of information security measures in the office and on the road is as important as ever.

The main challenge with telework is that there are some tasks that cannot be handled when the work style changes. This is due to the fact that some operations cannot be digitized*. (Of course, this excludes industries and occupations that do not allow telework.) The results of the Ministry of Internal Affairs and Communications’ FY2020 secondary survey (conducted from December 2020 to January 2021) show that there are many issues that can be resolved through digitization.

* See also：How is DX progressing?

What is the Concrete Solution?

One effective solution is digitization of business operations. Digitization of operations means digitizing information and business processes held by the company.

Many employees, including part-timers, are teleworking at Questetra. However (because of digitization), they do not feel the challenges as described in the previous section. We would like to introduce the efforts of Questetra as an example of a solution to this problem.

Cloud Workflow Questetra BPM Suite is used for all of the following tasks that are considered telework implementation issues.

• Attendance management
• Work progress management
• Work instructions/guidance/evaluation
• Internal communication (information sharing/recording/retrieval)
• Application approval
• Expense reimbursement
• Approval requests

Etc.

Questetra BPM Suite can create workflow diagrams and systemize them (without requiring code development) for any business process, including those not listed above.

Questetra also uses cloud services such as Google Workspace, SendGrid, and Box. These cloud services can be linked to Questetra BPM Suite via API for automated processing.

For example, by creating a workflow diagram for step mail a business application for step mail can be created. By having this business application send requests to SendGrid it is also possible to have HTML mail sent automatically.

The automated processing of cloud services not only improves business efficiency, but also solves security issues, as Questetra BPM Suite and cloud services are linked through APIs, eliminating the need for employees to log in directly to cloud services. Therefore, there is no need to worry about ID/password leaks.

In this way, Questetra BPM Suite can solve most of the problems of teleworking. We recommend it to those who want to implement teleworking.

Original Japanese version

Hi, there!

Many people are familiar with the term PDCA cycle, but do not know the specifics of the cycle and how it can be used to improve business operations. How can we use the PDCA cycle to improve our business?

In this issue, we will introduce the meaning of the term “PDCA cycle” and the concepts and tools for specifically utilizing the PDCA cycle in business operations.

Basics: What is the PDCA Cycle?

PDCA is an acronym for…

• Plan
• Do
• Check
• Act

…and the term “PDCA cycle” refers to improving things by repeating these four steps.

The point is that the PDCA cycle is not a one-time event, but to repeat the process of…

1. Making a plan
2. Executing the plan
3. Analyzing the results
4. Improving problem areas

In other words, once you have progressed to “4. Improving problem areas” you return to the process of making a new plan to improve the problem areas. The ideal way to operate the PDCA cycle is to improve things in a spiral shape by repeatedly improving the plan while performing the PDCA cycle.

PDCA Cycle and BPM

Incidentally, BPM (Business Process Management) is a typical example of corporate activities to improve business operations through the PDCA cycle. The PDCA cycle is a concept that can be applied to a wide range of areas, from business to lifestyle improvement, but the key point of BPM is that it focuses on the flow of business operations (i.e. business processes).

In BPM, the work performed in each step of the PDCA cycle is embodied as follows.

1. Design and visualization of business processes (Plan)
2. Sharing and execution of business processes (Do)
3. Monitoring of business processes (Check)
4. Analyzing and improving business processes (Act)

Basically, it is the same four steps as the PDCA cycle, but BPM is unique in that visualization and sharing are indispensable. BPM is a method for constantly updating (i.e. optimizing) business processes to their best state by repeating these four steps.

When business processes are constantly optimized, operations can proceed according to the most efficient and error-free procedures at that point in time. This directly affects the quality of the services and products offered by the company, and also improves the work environment by reducing wasteful and unnecessary overtime work.

In addition, if the idea of BPM permeates the organization, even if the organizational structure and social conditions change, it will be possible to flexibly construct business processes that match the changes on the site.

Modeling Operations – Conception and Visualization

Now, I would like to add some additional information about modeling (visualization) of operations, which is necessary to make the PDCA cycle actually useful for business improvement.

Business modeling visualizes the flow of business operations by representing them in a diagram.

For example, it is one way to describe business procedures in writing, such as in a business manual, but by representing them graphically, business procedures can be more easily shared and smoothly executed (Do).

This is an indispensable element of BPM as well, and is a crucial part of the planning and analysis steps of the PDCA cycle.

First of all, when designing a business process, it is important to draw a diagram of the flow of the business to check for things such as:

• Whether there are any omissions or gaps in the business process
• Are there any unnecessary steps?
• Is the flow of the workflow streamlined?

With a diagram these things become easier to check.

In addition, if there is a problem in executing the business process as designed, it is necessary to identify the problem or issue in the process (Check). At that time, if the business process is represented in a diagram it is easier to identify problems and issues because the entire business process can be seen from a bird’s eye view.

The figure above is an example of a business process diagram drawn in BPMN (※) notation. Using this notation is effective in that anyone can easily grasp the flow of the entire business process as long as they understand a few rules.

In addition, if the rules of the business process diagram are shared within the team, changes and modifications to the process can be made smoothly by anyone involved in the business.

※ BPMN (Business Process Model and Notation): A business process drawing method designed to enable many people to intuitively understand the flow of business operations.

Questetra BPM Suite to Support PDCA Cycle Operations

Questetra BPM Suite, as the name suggests, is software that supports business improvement activities in line with the concept of BPM.

For example, Questetra BPM Suite includes the following functions that support the PDCA cycle.

• Easy creation of business process diagrams on a PC (Plan – planning and visualization)
• Automatic progression of work according to the created business process diagram (Do – Execution)
• Ability to refer to data such as the time taken to process a task, each member’s workload status, and results (Check – Analysis).
• Easy modification and sharing of business processes on a PC (Act – Improvement)

This is exactly what the Questetra BPM Suite is for, a software to operate the PDCA cycle in a way that is useful for business operations.

In addition, most of these workflow systems and BPM tools are difficult to set up on a server and prepare for use, but Questetra BPM Suite is a cloud-based service that can be used immediately after registration.

Another feature of cloud computing is that the same system used in the office can be easily accessed from anywhere as long as there is an Internet environment. This is a very useful point for improving work efficiency and remote working.

A free trial of Questetra BPM Suite is also available. Please take this opportunity to experience the operation of the PDCA cycle that actually helps your business with Questetra BPM Suite.

Hello, this is Hayashi from the Marketing Department.

In this issue we would like to explain how to improve QCD, which is an indicator when considering business improvement, while introducing successful examples of workflow system utilization.

What is QCD Improvement?

QCD is an acronym for “Quality,” “Cost,” and “Delivery,” three important elements in quality control in the manufacturing industry. Today however, it is widely known as a perspective that can be applied not only in the manufacturing industry, but also in business and daily life.

QCD improvement refers to the following points:

• Quality, from low to high
• Cost, from high to low
• Delivery (time), from slow to fast

This framework can be applied to all industries, not just manufacturing.

We won’t drop the “Q” level

Incidentally, the most important aspect of QCD is the “Q”, or quality. In the manufacturing industry, it represents the quality of products, and in the service industry, it represents the quality of services.

It goes without saying that the basic premise of QCD improvement is that…

• Quality must not be compromised

For example, even if cost and delivery time are improved, customer satisfaction will decrease if the product breaks down quickly or is poorly made.

Can’t “C” and “D” be Improved at the Same Time?

On the other hand, the “C” and “D” in QCD are said to be difficult to improve at the same time.

Taking Beaujolais Nouveau wine as an example, if it is delivered by air, it will be delivered on the day the wine is released but it will be expensive. On the other hand, those delivered by sea take longer but are less expensive. It is difficult to achieve both speed and affordability here, and if you try to force delivery to be fast but inexpensive, you may end up compromising the quality of the wine you purchase.

As described above, the three elements in QCD have a deep influence on each other. Therefore, it is important to promote improvement while maintaining a balance in overall QCD. In the next section we will introduce a successful example of balanced QCD improvement using a workflow system.

Examples of Balanced QCD Improvements

Let us look at the case of Sanshin Electronics Co., Ltd as a concrete example of QCD improvement.

The company had originally used a paper-based system for order management, but the problem was that when paper documents were input into Excel and other systems, transcription errors occurred and the speed of internal approvals was slow. In addition, printing and storing paper documents was time-consuming and costly.

The company introduced Questetra BPM Suite, a cloud-based workflow system, to automate operations and make them paperless, and achieved the following results.

1. Reduced input effort and errors: improved quality
2. Reduce administrative costs by 50%: lower costs
3. Shortened time from application to approval: faster delivery

The first benefit is that data that used to be entered into multiple systems and Excel for documentation can now be entered only into Questetra BPM Suite. The workflow system’s features such as automatic entry and automatic PDF generation have also been helpful in reducing time and errors.

The second is the effect of reducing labor and costs related to printing and storing documents by going paperless.

The third benefit is that Questetra BPM Suite is a cloud-based system, which allows easy access to the same system used in the office from anywhere as long as there is an internet connection. The company had been unable to process applications and approvals when the applicant and approver were out of the office, and in some cases it took several days for the documents to be stamped. However, with Questetra BPM Suite, applications and approvals can now be done outside of the office, so there is no longer a backlog of applications in the company.

Looking at the case study as a whole, it can be seen that QCD was improved in a well-balanced manner.

The Role of Workflow Systems in QCD Improvement

We hope you have understood the effectiveness of Questetra BPM Suite, a cloud-based workflow system, in improving QCD from the examples described in the previous section.

A workflow system is software that allows you to easily diagram the flow of business operations on a PC and automatically proceed with operations according to the diagram you have created. A workflow system can be very useful in this type of process.

For example, if the workflow is visualized as a diagram, points for improvement will be easier to find. In addition, when verifying the balance of QCD, data such as the time taken to process work stored in the workflow system will be helpful.

Incidentally, Questetra BPM Suite is also available on a free trial basis. Why don’t you take this opportunity to start improving your QCD with Questetra BPM Suite?