As many companies are required to tackle digital transformation, it is necessary to properly understand the background of digital transformation and the necessary ideas before putting it into practice. In this article, I will explain the practical points necessary to carry out digital transformation based on the author's practical examples.

This report proposes several idea to improve DX, Digital Transformation, and IT, Information Technology, capability in Japan. There is common understanding that Japan is behind from other countries for these fields. However the DX is getting to buzzword , which includes a lot of area and sometimes is misleading. The author evaluates OECD’s analysis and considered that the required level of digital transformation depends on its nature of business domain. Generally speaking Japanese firm is not good at top down management decision for digitalization. This paper focuses on problem of enterprise systems with organizational and educational perspective compared with European and American firms.

Finally this paper propose “top down decision” or “middle up down decision” , and also propose IT educational approach, which includes the trial at graduate school of Komazawa University. This proposal has 4 points, 1) Studying system architecture, 2)Understanding of system dynamics, 3) Understanding of data and database, which includes importance of integrity of information and 4)Adoption of “Recognizing events” in addition to “Resolving questions”.

Israel is called the 2^nd Silicon Valley. Many major ICT companies have their R&D centers in Israel while some 1,000 start-up companies are born in Israel every year.

This study analyzes reasons why Israel takes a role of an incubator for startups to launch their businesses and to create technological innovation. In the latter part, this study discusses possible applications of the Israeli eco-system on the Japanese market.

Chapter 8 of “Engineering Brands” series is “Embodying the Future Business in Mid- to Long Term.” We discuss the development of “the Engineering Brands” from the perspective of strategic marketing theories.

CEOs predict outlook and draft mid and long-term plans. Dreams are not something that are given; you draw own dreams. Management works on developing their Engineering Brands while implementing the mid to long term business plans.

A company comes together as a unit and establishes a “Brand” that is leading to the Next Generation. They would be able to communicate their strength with simple words if both employees and customers clearly understand the company’s brand concept.

It is important to set clear company goals. This paper discusses when all employees making efforts to meet the common branding goals, the values of the company will rise.

This study examines the Japanese “O-motenashi Way” of business with its use of high-context service interaction.Reflecting on the historical evolution of host-guest relationships in the traditional Japanese “Way of Tea”, we present a service-dominant (S-D) logic framework for analyzing value co-creation in the scope of three aspects: closeness of relationship with customers, empowerment of employees, and establishing trust with local communities. The framework is applied to understand the success of two businesses practicing the “O-motenashi Way”: prosthetics manufacturer Nakamura Brace, and high-grade traditional Japanese inn Kamenoi- Bessou. These case studies demonstrate the aforementioned three aspects of contemporary service business management as embodied in the “O-motenashi Way” of value co-creation. The framework provides a basis for effective strategic planning of service management not only in domestic businesses, but also in high-context service businesses aiming at future semi-globalization focusing on local cultural context.

This paper, titled “Global Management Strategy Theory for SMEs,” will organize the knowledge that SME managers should learn based on the ten themes. Many of Japan’s small and medium-sized enterprises (SMEs) are facing a serious shortage of human resources. Nowadays, Japanese companies cannot expect sustainable growth unless they proactively accept foreign human resources and globalize their human resources and cooperate with foreign workers.

In this issue, titled “Utilization of Overseas Human Capital,” I will report on the utilization and challenges of overseas human capital by Japanese SMEs, the utilization and development of overseas human capital by SMEs, and the establishment of a sustainable, recycling-oriented human capital ecosystem.

This is a new series, titled “Digital Education for Executives in Small- and Medium-Sized Enterprises (SME).”

Digitalization is way behind in small- and medium-sized enterprises. Most of them do not have systems built in the organizations. It is difficult for them to tackle the current situation quickly and catch up with large companies. It is because digitalization requires human resource development and a significant amount of capital investment to build and maintain the systems.

What Digital Transformation, DX, can bring to enterprises depends on the circumstances of each company.

This series consists of 10 articles and deepens the knowledges that SME executives should learn. The first article is “Basic Knowledge of DX, that reveals issues and challenges Japanese companies face.