Japan, a country known for its technological innovations in robotics and manufacturing, has surprisingly lagged behind when it comes to digital transformation. According to the 2022 IMD World Digital Competitiveness Ranking, Japan ranked 29th out of 64 countries examined in terms of know-how, development of digital technologies and their preparedness to exploit digital transformation. Other Asian countries finishing ahead of Japan include South Korea in 8th, Taiwan in 11th, and China in 17th.
The country is well-aware that it has fallen behind many of its G7 counterparts. Japan’s public sector is notoriously stuck in the analog age, with its endless paper-shuffling reliant on manual stamping. Since declaring its initiative to digitise in September 2020, the country established a Digital Agency to coordinate the digital transformation effort across government departments and the private sector. Yet standing in the way of digital transformation are some self-imposed constraints, including a risk-averse mindset, limited exposure of some companies to global competitors and a deficit of software engineering talent to build the necessary software applications.more here