Liaison Conference of Related Ministries and Agencies, etc. Related to digitalization, etc. of Business Operators (4th)

Overview

Date and Time: Wednesday, May 29, 2024, from 13:15 to 14:00
Location: Online
Agenda:
1. Opening
2. Proceedings
  1. Status of responses to digitalization, such as public procedures
  2. Current status of surveys for the development of administrative procedure systems for business operators
  3. About public service's DX Roadmap for Businesses
  4. Overview of the Digital Marketplace and the status of initiatives
  5. Outline of "DX Support Guidance - An Approach to Supporting Small and Medium-Sized Enterprises Starting in digitalization"
3. Adjournment

Materials

Minutes, etc.

Members present

Chairman

Tomoya Hasui (Deputy Director General of Strategy & Organization Group, Digital Agency)

Members

Royo NAKAJIMA (Deputy Chief Cabinet Secretary (Assistant to the Deputy Chief Cabinet Secretary))
Hiroki Nakamura (Deputy Director-General of the Conference on the Realization of the Digital Garden City Nation Vision Secretariat)
Hiroshi Yoshida Hei (Deputy Director General of the Secretariat of the Cabinet Secretariat Digital Administration and Finance Reform Council)
*Attendance by proxy: Takeya Kobayashi (Councilor of the Secretariat of the Cabinet Secretariat Digital Administration and Finance Reform Council)
Seiichi Ito (Deputy Director-General for cybersecurity and Information Technology)
Shigeyuki Tani (Director General of the National Police Agency)
*Representative: Arisa Yoshino (attached to the Planning Division of the Director General's Secretariat of the National Police Agency)
Yu Ozaki (Deputy Director General, Supervisory Bureau, Financial Services Agency
Reiko Kondo (Director of the Planning Division, Minister's Secretariat, Ministry of Internal Affairs and Communications)
Koichi Nakamura (Deputy Director General for cybersecurity and Computerization of the Secretariat of the Ministry of Justice
MATSUO Hirotaka (Director for cybersecurity and Information Technology, MOFA)
*Representative: Mitsue Morita (Director of the Information and Communications Division, Minister's Secretariat
Toshio Uematsu (Ministry of Finance, Deputy Director-General of the Secretariat of the National Tax Agency
Hironori Toyooka (Director General to the Minister of State for Ministry of Education, Culture, Sports, Science and Technology (MEXT))
Kazuhiro Mita (cybersecurity Ministry of Health, Labor and Welfare, Deputy Director-General for Information)
*Attendance by proxy: Takayuki Kanaga (Assistant to the Director of the Office of the Counselor in charge of Information Systems of the
Hideto Sugaya (Deputy Director-General for cybersecurity and Information Technology, Ministry of
Tomohiro Ushiyama (Deputy Director General of the Secretariat, Ministry of Economy, Trade and Industry (in charge of IT strategies))
Tetsuya Matsuura (Executive Director of the Management Support Department of the Small and
Hirohide Okamoto (Deputy Director General for cybersecurity and Information, Ministry of Land, Infrastructure, Transport and
Yoichi KAMIYA (Deputy Director-General for cybersecurity and Information Technology, Secretariat of the Ministry of
Motoyuki NAKANISHI (Deputy Minister for cybersecurity and Information Technology, Ministry of Defense)
UEGUCHI Hiroshi (Director of the Bank of Japan Business Bureau)

Minutes

Mr. Hasui: Thank you very much, Mr. Now that it's on time, I would like to open the fourth meeting of the Inter-Ministerial Liaison Conference on digitalization and Other Business Operators.

I am Hasui from Digital Agency, and I will be facilitating the meeting. Thank you for your continued support. I look forward to working with you.

As for today's meeting, all members are participating online. Thank you very much for taking the time to attend.

In addition, the materials are as we have sent you in advance.

Let's get down to business.

Today's agenda consists of the following: the first is "Status of digitalization's Response to Public Procedures, etc.," the second is "Current Status of Surveys for Development of Administrative Procedure Systems for Businesses," the third is "public service's DX Roadmap for Businesses," the fourth is "Overview of Digital Marketplace and Status of Efforts," and the fifth is "Overview of' DX Support Guidance - Approach to Supporting Small and Medium-Sized Enterprises Starting with digitalization.'"

First of all, I would like to ask about the "Status of digitalization's Response to Public Procedures, etc." in Agenda 1.
Last year, with the cooperation of people in ministries and agencies and other prefectures, we issued a written request to more than 2,600 organizations asking them to submit their tax returns by e-Tax in tax withholding slips and other prefectures. In response to this, we have gathered information on the status of tax returns. I would like to ask for an explanation from the National Tax Agency. Then, Mr. Uematsu, Deputy Director-General of the National Tax Agency.

Director General Uematsu: I'm Uematsu from the National Tax Agency. Nice to meet you.
Using Attachment 1, I would like to report on the status of digitalization's response to public procedures related to the National Tax Agency.

On page 2 of the slide, the part in red is an update from the part I reported last time.

With regard to the promotion of Mynaportal cooperation on employment income information, as Deputy Director-General Hasui has just introduced, the outline of the results of the final return of income taxes for 2023 has been compiled, so I would like to report on it later.

Regarding the second check point, "Expansion of business operators that can cooperate with Mynaportal," we have issued a written notice to the Life Insurance Association of Japan and the Non-life Insurance Association of Japan in joint signatures with Digital Agency and the FSA.

Next, regarding the "Promotion of Automation of Tax Payment Information Attachment in Applications," which is on page 3 of the slide, the National Tax Agency is consulting with relevant ministries and agencies individually and requesting them to consider responses at the time of the next system renewal.

In addition, in joint signatures with Digital Agency and the FSA, we have issued a notice to the Japanese Bankers Association (JBA), and with the cooperation of Ministry of Internal Affairs and Communications, we have issued a public notice to local local government.

Regarding the "expansion of online inquiries for deposits and savings," we have also issued a written notice to the Life Insurance Association of Japan, the Japanese Bankers Association, and the Japan Securities Dealers Association in joint signatures with Digital Agency and the Financial Services Agency. In addition, with the cooperation of Ministry of Internal Affairs and Communications, we have issued a public notice to local government.

It is page 4 of the slide.

I would like to report on the outline of the results of the final return for income taxes for 2023, which was made from January to March this year, as part of the cooperation between the final return and the year-end adjustment using the Mynaportal Cooperation.

Under the framework of the Inter-Ministerial Meeting, in December 2023, the National Tax Administration Agency asked each ministries and agencies to inform the industry organizations and incorporated administrative agencies under its jurisdiction. As reported last time, as a result, with the cooperation of each ministries and agencies, more than 2,600 organizations were informed. As a result of other efforts, the digitalization of official procedures for the final return of income taxes for 2023 has progressed as follows.

There is a bar graph in the middle. First of all, on the left side, the number of online submissions of employment income in tax withholding slips for 2023 was 18.71 million, an increase of 37.9% compared to last year.

Next, regarding the number of people who used My Number Card in the final tax return in the middle, for 2023, it was 4.85 million, an increase of 25.3% from the same period of the previous year.

In addition, the number of people who used the Mynaportal tie-up in the final tax return on the right side was 1.91 million in 2023, which is + 44.7%.

We have made some progress in this way, and thank you very much for your cooperation. We need to further advance digitalization, and I believe it is important to continue such efforts toward the final tax return for next year. We look forward to your continued cooperation.

That's all from me.

Mr. Hasui: Thank you very much, Mr. .

As a result of your support, progress has been made to a certain extent. I would like to thank you again.

In digitalization, once you proceed, it will be easier to proceed further, so I think it will be difficult to overcome the first hurdle, but I would like to ask for your continued support.

Then, I would like to ask if you have any opinions or questions about the current explanation. What do you think?

If possible, we would like to promote the fact that such results have been achieved in various places. In that case, we may receive your support, but we would appreciate your cooperation.

Next, I would like to explain the "Current Status of Surveys for the Development of Administrative Procedure Systems for Businesses" in Agenda 2.

In last year's Interim Report on Digital Administrative and Fiscal Reform, which was compiled in December, it was positioned to aim for the use of jGrants as a general rule in subsidies for business operators. Based on this, we are conducting a survey on the current status of digitization of subsidies. At present, due to co-management subsidies among ministries and agencies, we have not yet completed 100% of the input. However, with the cooperation of the people of the ministries and agencies concerned, we have received a considerable amount of input, and Digital Agency will explain the status of the survey.

In addition, in order to contribute to the online transfer of subsidies, we would like to cooperate with the Digital Administrative and Fiscal Reform Council as necessary.

Then, Mr. Hatakeyama from Digital Agency, please explain.

Mr. Hatakeyama: It is called the DX Road Map of public service for . I will explain.

First, I would like to refer to Material 2, "The Current Status of Surveys for the Development of Administrative Procedure Systems for Businesses."

If I would like to review the background once again, in the Administrative Project Review in the autumn, it was compiled to consider the active use of the national existing benefit system and private sector's new digital technology. Among them, the Interim Report of the Digital Administration and Fiscal Reform Council positioned online application as a rule for all subsidies from twenty twenty-five. Based on this, we are currently conducting a survey on subsidy groups using DXS.

What is the subsidy group? We do not have an exhaustive list of all the subsidies in Kasumigaseki, so with the cooperation of Mr. Ministry of Finance and each ministry and agency, we have published a list of subsidy groups on a survey basis related to budget request. There are two opportunities to make the subsidies online, this winter or next winter, and we believe that it is necessary to make it in time for the limit at the end of fiscal 2025.

First of all, we have narrowed down the main subsidies that we would like you to move toward the utilization of jGrants from this winter to next spring. Among them, even though we have already conducted a survey, the final beneficiaries must be sole proprietorships or corporations. In addition, the number of cases adopted per year must be more than 100. In addition, jGrants does not include local government in the examination route because local governments is not yet able to respond to the LGWAN, which is a local online application network. In addition, it is not compatible with the Okinawa system, which is currently maintained by each ministry and agency, and applications can be made only by e-mail or paper. And, of course, it is unavoidable to include subsidies that will be abolished at the end of fiscal 2023, so it exists as it is.

We started this survey around November last year, but as of now, about 14% of the data has not been entered, and about 11% is still being entered.

The current survey unit is the subsidy group, and I think that there are multiple types of menus and various subsidies in one subsidy group.

In addition, among the subsidy groups, there are also cases in which the government pays the Subsidy Office once, and then the Office examines and adopts the payment and pays the business operator. In such cases, if there are 1,000 people who received the subsidy at the end, we would like you to state that the number of adoption is 1,000, but there are also cases in which it is entered that there is only one adoption of this subsidy, and we have started to capture it based on specific names, but we are aware that such cases have not yet been listed.

Turning to page 4, regarding the current status of entry, I am very grateful that some ministries and agencies write almost 100% of their subsidies, even though they have a large number of subsidies, such as the Ministry of Health, Labor and Welfare.

The bar code-like graph in the lower half is a measure of how many employees are involved in the entry work. If it is divided into multiple colors, for example, the Ministry of Health, Labor and Welfare, the Ministry of Land, Infrastructure, Transport and Tourism, the Ministry of Economy, Trade and Industry, Children and Families Agency, Ministry of Internal Affairs and Communications, and the Ministry of the Environment, it probably means that two to thirty people from the original section and group were included in the entry.

On the other hand, it has been suggested that the ministries and agencies that are filled with one color and the ministries and agencies that are filled with two colors are due to the fact that the actual input work was heavily loaded on one or two specific employees, who probably worked until midnight.

Therefore, since we have a system that allows us to divide the work, I believe that it would be better for each ministries and agencies to divide the work as much as possible, both from the perspective of Reform of Working Practices and from the perspective of prompt input.

In fact, from this winter to the spring of next year, we have begun to narrow down the subsidies that will be given higher priority, such as asking to be listed in jGrants.

Regarding this, there are more than 100 cases that have been adopted and are not listed in the existing online application. For example, regarding the eMAFF that is painted pink here, it is not the case that applications can be made only by e-mail or paper, as mentioned above, so it is not the case that we are forced to list the eMAFF in jGrants. Therefore, we will narrow down the cases that are accepted only by paper, that are accepted only by e-mail, and that have an annual number of adoption of 100 or more, and for these cases, we will have a chance for only two years, so we will ask them to be listed this year, which is their first year.

In addition, we request that they be filled in, and we ask that they be filled in by the division of labor, but even so, there are cases where they are not filled in.

In this type of survey, it has been repeated in various places that, for example, a small number of staff members and section chiefs stay up all night to fill in the unfilled spaces. Recently, however, it has become possible to do RAG, which combines so-called Internet search and generative AI. To be specific, when the name of a subsidy is entered, an Internet search is performed according to the name of the subsidy, and based on the results of the search, generative AI automatically creates an outline of the system and a guess of what kind of examination path to go through, and it has been automated to fill out the entry form.

Therefore, I believe that if the entry field is blank, it will remain blank for a long time. From now on, we will use generative AI to fill in the blank fields on a hypothetical basis and confirm whether this is correct. If there is still no answer, I am aware that it will be in the order of taking the correct ones and moving on to the next step.

Go to page 7.

Regarding the "Additional Survey Plan for transition in jGrants," we are currently conducting a survey on the basis of a group of subsidies. This is a group of subsidies for budget request, which is equivalent to the unit of the administrative project review sheet or the unit of the punch drawing for budget request in Ministry of Finance. It is necessary to break down the group of subsidies into unit subsidies at the minimum unit level that cannot be broken down further. We will work on this together with each ministry and agency.

In addition, I would like to ask you to describe how you are currently considering going online for each unit subsidy, whether local government is included in the examination flow, and whether the subsidy rate is, for example, one half from the national government or one fourth from local government.

We will continue to comprehensively identify subsidies that can be used for digitization by listing those that meet the requirements for digitization in jGrants, or those that are highly likely to meet the requirements at a high level by branching the conditions using generative AI.

On page 8, I am thinking about the schedule. We will digitize all subsidies by the end of fiscal 2025. I think I will be able to bat twice. I will bat in the spring of next year and in the spring of the year after next, so I will do my best not to waste these two times.

That is all for Material 2.

Mr. Hasui: Thank you very much, Mr. .

Next, I would like to explain the DX Roadmap of public service for business operators in Agenda 3 as well. Please continue to speak to Mr. Hatakeyama.

Mr. Hatakeyama: It is called the DX Road Map of public service for business operators. There are only two pages of materials for this.

As I have already shown, we are working on the DX Roadmap for public service. For individuals, Mynaportal and My Number Card systems have been developed to some extent, but we are also working to organize public service for business operators.

With regard to this, what can be achieved over a period of several years is an important perspective, so we have begun to list them as such.

Among them, it is quite an epoch, but for example, in twenty twenty-five, we are working on making it possible to log in to a wide range of web services, including authentication, signature App and gBizID, in gBizID.

Next, I think this is also a quite large epoch, but as the "common function" of (2), we are considering electronic lockers as a new function.

When applying for administrative procedures, for example, I think we make documents by working together with administrative scriveners, tax accountants, and social insurance and labor consultants. At this time, we make the process of making documents together and the process of storing documents convenient. In addition, I think there are various kinds of certification documents, such as a certificate already issued by public office and a tax payment certificate, and we can store them with the electronic signatures of public institutions and private sector companies. I think we can make the exchange of electronic files smoother.

(iii) "Subsidy Application (jGrants)" is exactly what I talked about earlier, and I would like to make sure that I do not waste two times at bat in 2024, the spring of next year and the spring of the year after next.

In addition to this, if we list the procedures that the business operator is involved in from the top, there are cases where the business operator has signed a contract with the national government or the national government wants to participate in procurement. If you go back to the root, for example, you can find your own registry information or corporate base registry. In addition, there are various subsidies for business operators and various systems, so we are advancing a complex initiative to make it possible to be seen as a portal.

What I have been introducing to you from an early stage is that if ministries and agencies work together to create something that has the same functions as what Digital Agency is already trying to create, it will be a complete double investment, so I would like to make it clear from an early stage that we are trying to create something like this over a period of about three years, and I would like to exchange views with you.

That's all from me. Thank you.

Mr. Hasui: Thank you very much, Mr. Agenda 2 and Agenda 3.

First of all, I would like to point out one thing. With regard to public service in Agenda 3, there is usually a line chart on the side, but it is also aware of the vertical axis. In relation to users, what happens and when it happens is divided into three layers: the front, the backyard, and the output from there. By looking at this from a vertical perspective, we aim to make it clear which functions are used, how they are used, when they are released, and when they can be used from users or those who provide services to users.

We are creating a service roadmap for individuals, and I believe that we are discussing this with ministries and agencies, but it also has a vertical perspective. In that sense, this is a one page summary of the entire business operator procedure system. As Assistant to the Minister for Foreign Affairs Hatakeyama mentioned earlier, if we believe that companies have a certain life stage, such as concluding a contract, applying for subsidies, starting a company, or requiring some kind of permission, we would like to create a more broken-down version in the future, based on what kind of procedures will occur at each life stage.

That is why I would like to ask any questions or comments you may have on Agenda 2 and Agenda 3, including on Agenda 2, as we are cooperating with the investigation of the system.

Would that be all right?

Then, if you have any, please let me know later.

Next, I would like to move on to Agenda 4 "Overview of the Digital Marketplace and the status of efforts".

This digital marketplace is being promoted with the aim of speeding up the procurement of SaaS in public authorities and diversifying procurement destinations by the entry of various vendors.

We have released a catalog site of the demonstration version, so Mr. Digital Agency will explain it including the future schedule. Mr. Yoshida, Director of Planning, nice to meet you.

Planning Officer Yoshida: I am Planning Officer Yoshida, in charge of the Digital Marketplace in Digital Agency, .

I would like to introduce the content of the initiative called Digital Marketplace and how it is progressing at present.

First of all, in terms of what kind of initiatives you would like to take, the purpose is to enable public authorities to quickly implement cloud software, or so-called Software as a Service (SaaS), procurement, and to encourage the entry of various vendors.

As I will explain later, I recognize that the current speed of procurement, especially when it comes to System procurement, is a pain for us. While resolving these issues, we aim to create a mechanism in which diverse service providers can enter the market from among those who tend to rely on specific vendors.

It has been fully operational in the United Kingdom since 2014, and although it is about 10 years behind, we are working to advance our efforts.

Similar mechanisms are being advanced not only in the United Kingdom but also in other countries.

We started considering this initiative in fiscal 2022. After that, we conducted a demonstration last fiscal year, and based on that, we are currently proceeding with the development of the official version. I will explain this later.

What actually happened in the United Kingdom is that in 2009, the United Kingdom was an oligopolistic IT public procurement market, with 18 companies accounting for 80% of procurement, but by introducing this digital marketplace, nearly 90% of registered vendors have become small and medium-sized vendors and startups, and in fact, nearly 40% of procurement value has been diversified into such players.

There are dots in the map below, but if you look at the figure on the right, you can see that vendors from all over Japan are registered in the Digital Marketplace.

This is a difference from the conventional IT procurement. Until now, I believe that there have been many types of systems in which administrative systems and scratch are built from scratch and operated. In that case, procurement specifications were created by public office, proposals were received from multiple companies, and procurement was performed by evaluating them along with the price.

If the amount of money was large, it would take about six months only for the public offering period and other procedures, and the system could not be used immediately. In many cases, it was possible to make a development on an annual basis and finally use the system in the next fiscal year.

On the other hand, as cloud-based packaged software called Software as a Service (SaaS) is spreading in the private sector market, it has become clear from the beginning what kind of purpose and what kind of function it has, so first of all, we would like to realize a mechanism in which software vendors register such services so that each public authorities can procurement them according to their requirements.

There are advantages for both public authorities and business operators, and we have been able to select products only through our relationships with customers. However, we may be able to search for software that meets our purposes from a list of software and easily find a better one. As I mentioned earlier, up until now, systems have been created from scratch and then used, but by introducing software in packages that have already been created, the speed of software introduction will be increased, which will lead to the promotion of DX.

For business operators, it has been a barrier to entry in a sense because of the heavy procedural burden. However, by posting it on the catalog site first, it will be seen by various public authorities and the operating cost will be reduced. In fact, by reducing the burden by simplifying the procurement process, the barrier will be further lowered, and it will be possible for small and medium-sized companies and startups to enter the market.

In terms of the extent to which procurement is possible with the digital marketplace mechanism, as I mentioned earlier, it is difficult to purchase and use the cloud-based package software SaaS and the software as it is when installing it, so I think that in many cases, sales companies and others usually help with installation support and setup, so I am thinking of a mechanism that allows procurement as a set.

As for the specific procurement process, first of all, we will conclude a basic agreement with the software company and the sales company in Digital Agency, and in that agreement, we will agree on the necessary requirements for procurement to be listed on this catalog site. This will be the first step.

Each public authorities will narrow down the products on the catalog site through a search, select them, and make a procurement in the form of an individual contract.

In a sense, I think that determining and narrowing down the search conditions on this catalog site will be a proof that the services are compared fairly, and I expect that the software is selected as a result of the comparison on the digital marketplace by exporting it.

For the actual search, there are purpose tags and function tags. First, the purpose tag can narrow down where it fits in the policy category, and the function tag can narrow down what kind of function it provides as a function of the software.

In addition, not only this, but also the points to be considered when building software, such as compatible terminals, browsers, and security authentication, can be narrowed down by checking the check boxes.

First, you need to narrow down the software, and then you need to select where you want to buy it from. Of course, if the software company sells it directly, we buy it directly, but in the case of many SaaS Software, there are many cases where a sales company sells it on behalf of them. For these, you need to search for what kind of setup service they provide, narrow it down, and select it.

As I mentioned earlier, last year, in fiscal 2023, we have already released a demonstration version of this catalog site. Until the official version opens, we will continue to open the site, so if you don't mind, I would like you to touch this QR code to give us an image of what it will be like.

As for the future schedule, as I mentioned earlier, last year we demonstrated it, and we have already released a demonstration version of the catalog site, and we are receiving feedback from several ministries and agencies, especially those in charge of information systems and accounting, on the testing of users using it.

For the first six months of this fiscal year, based on this demonstration, we are preparing for the official introduction of DMP. For example, development, the official catalog site, and the arrangement of accounting systems, we assume that not only the country but also local government will be used, so the positioning of both in procurement is also arranged.

In addition, we are currently in the process of confirming with the security authorities what matters need to be confirmed in the procurement process in security.

In addition, since it is a necessary document for procurement, it is difficult to make a procurement in a place where there are no procurement specifications, so we are thinking of preparing a sheet to summarize the procurement specifications, the basic contract I mentioned earlier, and documents such as guidelines for users.

In fact, procurement using DMP will be after the second half of this fiscal year. First of all, we are thinking of opening an official version of the catalog site around the end of October. Since the registration of software by each business operator will begin, it is currently predicted that it will probably be possible to use it in procurement after the turn of the year. However, we believe that the schedule may be delayed depending on the status of the construction of the actual catalog site, but at present, we are proceeding with this.

First of all, I would like to ask you to recognize that Digital Agency has begun to develop such a new procurement scheme, and once it has been developed, we will update the information so that we can consider using it.

That's all from me.

Mr. Hasui: Thank you very much, Mr. .

This is an initiative on a new procurement that is being launched in Digital Agency, and I have introduced it to you as a reference for each ministry. Please let me know if you have any questions or opinions on this.

There may be some aspects that are difficult to understand just by giving a quick explanation. Therefore, I think that we may consider explaining separately and individually. If you have questions or opinions, please send them to us by email or other means. Thank you.

Now, let's move on to agenda item 5. It is "Outline of' DX Support Guidance - Approach to Supporting Small and Medium-Sized Enterprises Starting from digitalization.'"

This will be explained by the Ministry of Economy, Trade and Industry. The "DX Support Guidance" has been formulated to explain the matters to be considered when support institutions for SMEs provide DX support to medium-sized and small and medium-sized enterprises. Mr. Ushiyama, Deputy Director-General of the Ministry of Economy, Trade and Industry, please explain the outline of this.

Deputy Director-General Ushiyama: As you have just introduced, I am Ushiyama, Deputy Director-General of the Ministry of Economy, Trade and Industry.

I would like to explain the content of the "DX Support Guidance," which is for DX of small and medium-sized enterprises, etc., and for support organizations that provide escort support. The details are posted on the website of the Ministry of Economy, Trade and Industry, so today, I would like to briefly explain the outline using a one page summary.

Now, let's move on to the content.

First of all, in terms of background, the Ministry of Economy, Trade and Industry has been promoting DX support through so-called individual company support, such as IT introduction subsidies, manufacturing subsidies, and various subsidies, awards, and certification systems. Therefore, compared with small and medium-sized enterprises and large enterprises, in particular, human resources, information, and funds are insufficient, and given this, Promotion of DX is in a difficult situation on its own. We are aware of the current situation and the problem.

To that end, we believe that it would be effective to develop policies based on a new approach to support DX for small and medium-sized enterprises through so-called support organizations that serve as escorts for area, which we imagine to be financial institutions in area, IT vendors in area, local government, and public interest incorporated foundations. Therefore, we have held a review meeting since last November to discuss the desirable form of DX support, and have decided to formulate guidance.

The reality is that small and medium-sized enterprises that are actually engaged in DX are experiencing significant improvements in labor productivity and sales. By enhancing support, DX by small and medium-sized enterprises will further accelerate, and the fruits of that growth will be returned to area, realizing sustainable growth for the entire area. I believe it is extremely important to create such a virtuous cycle, and I very much expect that this DX Support Guidance will be an useful reference book for support institutions that are engaged in DX support.

So, going into the content, when we were considering the "Issue of support institutions," we interviewed 100 support institutions in each area, including financial institutions, IT vendors, local government, and public interest incorporated foundations, about their DX support initiatives and Issue. We found that there are four main Issue of support institutions. Specifically, we found that there are Issue such as that the support institutions themselves are behind in their DX initiatives, that they have not established a useful DX support method as a support institution, that they lack cooperation with each other, and that they lack DX support human resources within the support institutions.

Therefore, we have repeatedly held discussions on Issue at the Study Group of experts, and compiled the so-called Otokoro concept in the DX Support Guidance.

In terms of specific support concepts and methodologies, the content organized in Chapter 3 of the Support Guidance is from the basic approach to specific methodologies in DX support. Let me tell you the content. For example, there are a very large number of support institutions in area, and among them, as the chief physician who continues to grow small and medium-sized enterprises, etc., as I mentioned earlier, in particular, area Financial Institutions, area IT vendors, and area consultants, I think that there will be great expectations for them to independently and actively engage in DX support. I think that there will be great expectations for them to actively engage in DX support. I think that there will be great expectations for them to actively engage in DX support. I think that there will be great expectations for them to actively engage in DX support. I think that there will be great expectations for them to actively engage in DX support. I think that there will be great expectations for them to actively engage in DX support. I think that there will be great expectations for them to actively engage in DX support. I think that there will be great expectations for them to actively engage in DX support. I think that there will be great expectations for them to actively engage in DX support. monitoring

In addition, not only from a short-term perspective but also from a medium - to long-term perspective, it is important to make efforts that can obtain non-monetary "benefits" as well as monetary ones. It is important to make DX support take such initiatives.

In addition, in order to expand the approach of DX support, the approach by actively working by the support organization. In addition to this, the approach of commonality and standardization of so-called indirect operations is very effective, and in particular, the approach of commonality and standardization of indirect operations should be pursued very actively. This is the important point mentioned here.

In addition, in doing so, we have summarized the points that it would be beneficial for us to use such initiatives for individual companies as a tool for implementing such support, including the Promotion of DX Indicators and the DX Certification Program, which the Ministry of Economy, Trade and Industry has been promoting as part of the Individual Promotion of DX Policy.

In addition, cooperation between support institutions is also important. This is organized in Chapter 4 of the Support Guidance. The significance of cooperation between support institutions is that each support institution has its own strengths and weaknesses, and it is difficult for only one support institution to complement each other. Therefore, I believe that it is necessary to cooperate and make use of each support institution's strengths.

In addition, in terms of information sharing between support institutions, even in the same area, there are cases in which support institutions are not connected, and there are very many cases in which support institutions do not know about corporate cases of DX or the details of their efforts. Therefore, in the first place, information sharing through cooperation is significant in itself.

As a form of cooperation between support institutions, I believe that so-called primary care doctors, such as area financial institutions, area IT vendors, and area consultants, should actively pursue cooperation on their own initiative. As an ideal form of cooperation, for example, I believe that cooperation between two or three companies is occurring everywhere.

In addition, the ideal way of DX support human resources is organized in Chapter 5 of the guidance, but DX support begins with consulting to lead to the ideal form of the company, and it is important to create such awareness, and in addition, it is very important for the support organization to acquire knowledge and skills related to digital to provide support.

Based on that, in terms of human resource requirements for specific support human resources, we believe that it is necessary to have both specific skills to lead to so-called transformation and a mindset to effectively demonstrate them. We, the Ministry of Economy, Trade and Industry, have already organized the skills of human resources who promote DX in the company as digital skill standards, and in accordance with it to a certain extent, we have organized the mindset and skill set of human resources required for DX support in this guidance.

In addition, in terms of human resource development, in addition to providing lectures, case studies, practices, and fieldwork, evaluation systems for DX support and incentive design are important, and we have obtained such a direction.

I have explained briefly above, but the details are posted on the website of the Ministry of Economy, Trade and Industry, so please refer to it for your interests. In the formulation of this guidance, ministries and agencies, which is related to it, has participated in the discussions from the review meeting stage. I would like to take this opportunity to express my gratitude. In the future, the Ministry of Economy, Trade and Industry will promote DX support based on this guidance, and we will cooperate with the people of ministries and agencies in terms of specific implementation.

That's all from me.

Mr. Hasui: Thank you very much, Mr. Ushiyama.

As you stated at the end, there are a variety of support tools, and I believe that it is important for the ministries and agencies participating today to cooperate with those who provide such support in their respective industries, particularly when digitalization is necessary. Therefore, I would like to continue to cooperate with you, including the people of the Ministry of Economy, Trade and Industry. Thank you very much.

Please let us know if you have any questions or comments about the current explanation.

That's all for today's agenda. Thank you for your participation as always. The secretariat will contact you later on the date of the next meeting.

Today, I would like to thank you all for taking the time to attend this meeting. This is the end of this liaison conference. Thank you very much.