娇色导航

Christopher Holmes

Chris, hello and welcome to 娇色导航live here in the Asia Pacific region. My name is Chris Holmes, editorial director for Asia, and I'm going to be your host for today.

I'm very pleased to welcome Nobumasa Takeuchi, editorial director for Japan, for cio.com as part of our leadership Live series where we talk to tech leaders across the region. So Nobu San welcome. Nobumasa Takeuchi

Thank you for joining. Christopher Holmes

Thanks so much for taking the time to speak, to speak with me today. I'm really looking forward to hearing your perspective on how the role of the 娇色导航is evolving in Japan, and you know what you were hearing about future plans.

So with that, let's actually just, you know, get into our conversation. So,you know, for Japanese CIOs, I mean, what are they? What are they looking at? What's the strategic vision that you're hearing from your from the people you talk to, for 2025 what's the big picture?

Oh, I see, Nobumasa Takeuchi

I think that the top priority shared by CEOs are modernizing existing idea sets and CO creating a way to business. Why the shift to generative AI and cloud infrastructure is underway.

There is a need to reach legacy systems and new technologies, both cost optimization and agility, are very important in Japan, however, although the laws of the 娇色导航is being re evaluated, only about 20% of the country as a whole has a CIO, and change in management awareness is significantly required.

Christopher Holmes

Wow, that's really interesting. I didn't realize that only sort of two out of 10 companies actually have a 娇色导航role. Nobumasa Takeuchi Yes, yes.

That's why That's issues, big issues in Japan right now. Christopher Holmes Wow, wow.

And I know you and I have spoken in the past. I mean, the government is actually looking to try and sort of help companies digitize, you know, and adopt information technologies.

Maybe you could just share a little bit about the big picture there, about what government schemes there are to help companies upgrade.

Yes, especially in Japan, we have a Ministry of Economy trend and industry, and then they have a DX certification system, and it installed action subsidy as as well as a digital government protection standardization guidelines by the digital agency encourage companies to Improve and upgrade their IT environments.

Nobumasa Takeuchi

These programs are especially important for small and mid sized companies in Japan. However, although the guidelines are prepared, the implementation operation and the management of these systems are left to individual companies, and the current situation is that they have not yet been put in practice. Christopher Holmes

Okay, so there's still, still a lot of work to go on to actually digitize and actually bring companies up. Nobumasa Takeuchi

We have a cooperation of guidelines in your systems. But the issue is, you know, each company will have to take their guidelines first, Christopher Holmes and again.

I mean, coming back to what you initially said about that, two out of 10, only two out of 10 companies actually having a CIO. Do you feel that that 娇色导航role is becoming more central to business strategy in Japan? Yes, that's right.

They are the law of the 娇色导航is shifting from the traditional defensive it to offensive. Digital transformation and the 娇色导航is evolving from being merely responsible for technology to a position that plays a part in business strategy.

And collaboration with the 娇色导航CEO and COO is becoming important Nobumasa Takeuchi

most of companies I'm currently interviewing relatively listed companies, that successful companies seem to build the 娇色导航as a center of their business strategy, with an understanding of business and It and as a bridge between management CIOs and CXO. Christopher Holmes Okay, very interesting.

So, I mean, I'm going to put you on the spot here. So if we were to ask you the same question, in a year's time, how many organizations do you think will have that 娇色导航role in place? Nobumasa Takeuchi

Oh, there's still minimum, I would say, like, you know, some 20s, but you know they are, you know, increasing the, you know, as positioning and the number of your CIOs. That's why, you know, I hope you know the systems and the culture will be changed soon.

Christopher Holmes Wow.

Okay, well, I look forward to having conversation in a year's time to see how. See how good your prediction is there. So, I mean, let's, let's change tax slightly and just talk around some of the key technology focus areas.

I mean, there's so much buzz around new technology these days, you know, especially artificial intelligence.

I mean, it's sort of Top of Mind with most of the CIOs I talk to here in Singapore and across the ASEAN region, but I'm curious to hear what Japanese CI CIOs are telling you.

You know about what they're really focusing on because you talked a little bit earlier on as well about sort of moving beyond the legacy systems and starting to introduce new modern systems. So you know, what are you actually hearing? Nobumasa Takeuchi

Oh, the key technology focus, I would say that the cloud native, zero, trust, security, building data lakes, such as things, are getting a lot of attention.

But the most likely, the key technologies that exactly you said getting the most attention will be generative AI and the tools like APIs or platforms or AI co pilot, Christopher Holmes yeah.

I mean, I think, I think that's sort of common across the globe at the moment.

And again, it's interesting seeing that you're almost, I mean, we talked, you talked a little bit about digital transformation, but sort of moving to almost AI led transformation is what I'm starting to hear a lot of companies talk around.

So I mean getting into that in a little bit more detail. I mean, what? What are the companies thinking about AI and automation, especially generative AI. Nobumasa Takeuchi

I think a greater number of Japanese companies have completed the POC phase and becoming beginning to move toward full scale implementation in the operations this stage.

However, there are many security and rigor risks and data data quality issues, and there is an urgent need to establish guidelines or the scope views I would say that the percentage of Japanese companies as a whole using generative AI is less than 20% at this moment, and the frequency of use tends to be lower than that of overseas companies There is a culture difference in the use of generative AI among various departments within a company and the role of the 娇色导航is once again required to promote overall optimization, partial optimization.

However, some research companies are beginning to require their CIOs to take AI session learning AI certification and AI training courses. Okay? And I'm really interested because, particularly, I mean, there's a lot of Japanese companies that operate overseas as well.

Have you seen, sort of like the overseas organizations Christopher Holmes

move faster with sort of AI adoption? Are you hearing that compared to sort of like the head office back in Japan. Oh, not yet. Nobumasa Takeuchi

They are now struggling even the headquarter office in Japan, and they are thinking operating or even the overseas. So now it's not the level of deployment and AI generative, Christopher Holmes

AI and again, I mean, maybe you could also just give us some idea of what are some of the use cases that you're hearing these organizations are adopting around AI Gen, AI, Nobumasa Takeuchi

oh, the case, you know, fully interviewed with some of, you know, electric companies They are all focused on, you know, and they call it AI first, and then they inbox all the departments, even legal, you know, generic departments, or, you know, HR something.

And then let them, you would see, you know, all AIS, even though, you know, they get, you know, 200 alerts. Then they learned everything.

Then after that, you know, everyone learned, know how to use, you know, generative AI to kind of, you know, successful company is getting now, analyzed, Japan, Christopher Holmes interesting, interesting.

And again, I mean, what do you what are you hearing around the or, how are CIOs really trying to sort of balance that, if you like, the legacy systems, with the innovation.

Because I know there's a lot of very, very old school it still, still in place in Japan. I mean, you know, dare I say it's sort of mainframes, even that kind of technology.

And yet, here we are talking about AI, so how, how are CIOs, sort of having, addressing this? Nobumasa Takeuchi

Oh, they are now tackling on that issues because, one, because she is, like a 娇色导航doesn't even know the, you know, detailed technology, and then, you know, generative AI. That's why.

A 娇色导航is trying to translate the kind of, you know, terminology and even the use stage of, you know, AI somehow, and then to let them learn, you know, what it is.

Then after that, cio finally could understand the land you know, how utilize generative AI to all, you know, the organizations. So now it's a real, you know, stage to just start, yeah, and again, what about that?

Balancing the innovation, you know, again, it's always one of the challenges that CIOs face is sort of balancing innovation with sort of maintaining the traditional systems and when to actually move. So how are they addressing that? Oh, I say that it will be.

Takes a time because, you know the Japanese, you know management, you know, fond of, you know, the following, the legacy systems, even at this time, even though they understand the, you know, like a crowd business is very, you know, passionate, but again, now it's not the stage, it's now the learning stage, And then CIO.

Better to let the 娇色导航now the, you know, housing like a crowd business would be more, you know, important to protect, you know, their IT assets and the data. So we've got to continue the conversation around data and AI integration. Christopher Holmes

I mean, last year we saw lots of proof of concepts around the globe.

But as a lot of the analyst firms have talked about, 2025 is a year when the rubber has to hit the road and they've, we've got to be be seeing sort of lots of return on investment numbers. There's got to be adoption at scale.

So really, I mean, what examples have you seen in terms of Japanese companies actually moving towards this data and AI integration? Nobumasa Takeuchi

Yes, generative AI and the machine learning beginning to using a preventive machine in the manufacturing industry demand focusing in retail and flow detection in financial industries. In retail, for example, supermarkets are using a generative AI to correct and analyze data on consumer purchase histories to understand demand focused.

They have successfully launched a point Economic Zone business in terms of creating a point system and redeeming points for cash. Meanwhile, in finance, accounts are increasingly being left lent out to third parties in Japan and AI is being used to detect fraud in the process of identity verification.

Christopher Holmes

Yeah, it's preventive maintenance, demand forecasting, fraud detection, yeah, I think they're, they're definitely some of the the initial use cases that we've seen with with a lot of organizations, I mean, but again, from the CIOs you're talking to, what are the the biggest challenges that they're facing, using AI effectively?

Nobumasa Takeuchi

Oh, I would say that the data, governance, interdepartmental collaboration and the lack of human resources in Japan in particular, there are overwhelmingly many industries centered on manufacturing, such as automotive, shipping, precision machinery, electric electronics and pet industries, and in some cases, data is siloed, so such companies are faced with the challenge of not being able to unify their data, making AI ineffective.

Christopher Holmes Yeah, yeah, yeah.

All make all make perfect sense. And what do you think is the outlook for the rest of the year? As I said, 2025 is the year where AI needs to prove itself. I mean, what are you hearing? Nobumasa Takeuchi

Oh, many CIOs have began training and creating mechanisms to expand the use of AI to all employees.

However, this movement still varies in differences even among some listed companies, I would say that the successful companies are taking the next step by repeating the trial alert and the swollen AI first, and there is a DX initiatives.

This will be explained in the last part of my summary, but generative AI is moving from beginning being an experiment to a working stage in Japan. Christopher Holmes

So you expect to see more adoption by the end of the year. Nobumasa Takeuchi I hope so.

Christopher Holmes So, okay.

I mean, we've talked around AI. Say, again, if I look back to our state of the 娇色导航survey investments was a in AI was sort of leading the way as to where IT budgets were being allocated, and second to that was around cybersecurity.

So I mean, what I'd like to do now is maybe dive into the cybersecurity and compliance areas. Again, it's top of mind for many leaders. I mean, what are you hearing from Japanese tech leaders? Are the biggest cybersecurity concerns for 2025 Nobumasa Takeuchi

in 2025 I would say that the three biggest concerns security of entire supply chain, countermeasures against ransomware attacks and implementation of zero trust file security of the entire supply chain due to the recent geopolitical risks, is of great interest. The biggest concern in Japan will be ransomware countermeasures.

Japan has a large number of registered companies that the overwhelming majority of these companies are subsidiaries under the umbrella of group, and we have seen several cases where we call it the candidate Group company was hacked, resulting in a downgrade of systems, including those parent company shut down with factory operations and drop in sales, but in town effective business performance.

Christopher Holmes

So really taking down the entire supply chain that yes, yes, exactly. Wow, wow. And again, how are, how are CIOs tech leaders? How are they addressing both Japanese and global data protection requirements Nobumasa Takeuchi

in Japan, CIOs must comply with the revised Personal Information Protection Law. And in other countries, with ddpr and the CIOs are struggling to balance and unify to governance structure and data localization. Japanese companies with global operations are making a purpose in complying.

But explained earlier, there are many subsidiaries and subsidiaries belonging to parent companies in Japan, and we have seen cases where these companies do not have security measures in place which pauses a challenge from a data protection perspective. Christopher Holmes

Yeah, very interesting again. Are you expecting to see sort of changes in this as we move through 2025 and into 2026 Nobumasa Takeuchi

or I would say that still the same, but the Japanese government are trying to let them move along and then introduce the security measures. And in reality, this is not the stage that each companies are introducing the tools and technology at this stage. Christopher Holmes Interesting, interesting.

Okay. I mean, so we've talked around sort of the newer technologies, we've talked around the overall strategy. We've talked around security. Let's get into talent, culture and teamwork. I mean, tech is only as strong as the team behind it.

So, you know, let's get into the people side of things, because again, it seems to be an ongoing challenge, particularly in the newer technologies, AI cybersecurity, for companies to find people. I mean, how are Japanese organizations attracting and retaining top it talent?

Oh, I would say that the remote working, work from home, visualization, the career paths, sideline work systems and now in skill training, it is called elite skilling, enable device work styles and particularly effective enough to acting a young and specialized personnel.

Japan is about to enter a phase where the program of a shortage of system engineers will become more serious, and we are beginning to see cases where succession between the senior and the younger generations is not progressing well. Nobumasa Takeuchi

As for in house airports, they are responding by securing the personnel from other departments and increasing the number of IT personnel in order to train young speeds. On the other hand, a situation like a train tool is beginning to emerge in terms of securing excellent IT personnel.

So one cloud computing companies I interviewed does not comprise on conditions in order to acquire excellent IT personnel, and in some cases, they are hiring under the same side of the conditions of those overseas. Christopher Holmes Wow.

Interesting, interesting. And I mean, how are, how are companies balancing traditional Japanese workplace culture with digital innovation? Nobumasa Takeuchi

Yes, wow, I would say that the kids are filled with digitalization commitment from the top management and bottom up experimental culture in Japan the front lines very strong, and the many companies that still have a paper and stamp culture, so management needs to be committed.

But when it comes to digital they tend to be reluctant to take proactive measures to overcome this culture of vision challenge and to achieve digitalization, it is necessary to accumulate successful experiences. So I believe that now it's a time for the CIOs role, even in Japan. Christopher Holmes

Very interesting, very interesting. I mean, Nobu San. I mean, this has been incredibly insights, insightful. I mean, thank you again. I mean, is there anything you wish more to share around the 娇色导航role in Japan today? Nobumasa Takeuchi Oh, yes.

Two things. CIOs are not only system operators, but also strategists through design the future of the company.

So the CIOs laws in creating barrier and promoting change requires company wide understanding and support fostering a culture that sees CEOs as a light hand man of management will be the key to accelerating a corporate transformation.

And finally, please, let me explain the specific Japan's digitalization challenge, the 2025 currief.

The 2025 currief, it's term used by the Minister of Economy, Trade and Industry in its 2018 DX report to describe that the limitation of aging IT systems and associated to risk of economic growth faced by the Japanese companies.

It is estimated that if digital transformation is not advanced by 2025 economic losses of up to 12 trillion Japanese yen, which means 84 billion US dollars per year could occur. So the three main challenges we are now facing, one is increased complexity and workbox radio systems.

And the second is an aging and the shortage of IT personnel, especially older technologies such as cobalt. And the third one advocate data utilization infrastructure. So policy solutions, I would say that the three points are required.

One is in the gradual organization of core systems, cloud migration and APIs and secure the train DX personnel, enhance risk sharing. And the last one is risk construction of overall optimized it strategy centered on data.

So in order to overcome this cliff DX promotion as a management strategy, rather than mere IT innovation is required. I think it can be said that the leadership of 娇色导航is now being questioned along with a change in corporate culture. Christopher Holmes Wow.

Very interesting. Very interesting. Again, I look forward to talking you to you again in about 12 months time to see how far things have progressed, progressed, and how far things have changed in this shift to digitalization.

Thanks Nobu San for sharing your insights into the role of 娇色导航and it in Japan that concludes today's CI interview. My name is Chris Holmes, and I've been talking to Nobu. Masa tahiu, editorial director for Japan, cio.com thanks again, Nobu. Nobumasa Takeuchi Thank you.

Christopher Holmes

If anybody has any comments, please reach out to me or Nobu on LinkedIn. You Transcribed by https://otter.ai