Only 13% of Japanese companies are working on digitization, far behind the 60% in the United States, according to the Internal Affairs and Communications Ministry's fiscal 2021 white paper on information and communications.
The ministry surveyed the status of digital transformation efforts by companies to develop new products and reform their organizations using digital technology. If digital transformation reaches U.S. levels, the white paper estimates it will boost sales in Japan's manufacturing sector by about 6%, or about 23 trillion yen.
Sales in the non-manufacturing sector were predicted to rise by about 4%, or about 45 trillion yen.
More than 50% of companies in Japan cited a shortage of human resources as a barrier to promoting digital transformation. The government predicts there will be a shortage of about 450,000 personnel in the information and communication field in 2030, making the development of human resources by the public and private sectors an urgent issue.
The white paper says Japanese companies do not collaborate sufficiently with other businesses, compared to those in Europe and the United States. It also calls for the active utilization of outside personnel, saying that while it is ideal to have human resources in-house, it is difficult to do so in reality.
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