Challenges and Success Mechanism of DX Promotion in Small and Medium-sized Enterprises

Abstract

In an age when cutting-edge digital technologies such as IoT and AI can be utilized relatively easily, opportunities for digital innovation and digital transformation are increasing not only for large companies but also for small and medium-sized enterprises (SMEs). On the other hand, there are various difficulties in realizing such digital innovation and transformation. Based on case analysis of SMEs working on DX promotion selected from METI (Ministry of Economy, Trade and Industry, Japan) DX Selection and Ishikawa Prefecture, this article summarizes the difficulties that SMEs face in promoting DX and introduces successful mechanisms for overcoming difficulties and taking advantage of opportunities. This article also compares large companies and SMEs from the perspective of DX promotion, then explains that SMEs are better suited for DX promotion than large companies from some viewpoints. In addition, this article shows research agenda on technology management, which is required for further DX promotion of SMEs.