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Terms such as “digital transformation” (DX), “artificial intelligence” (AI), “Internet of Things” (IoT), and “5G” (fifth-generation mobile technology) commonly occur in the media. Although several books have been published on these topics, most of them are “how-to” books which only discuss the technology or function.
 
We are at the dawn of an era wherein data can revolutionize our economy, society, and industries. How can companies approach this new age? “I wrote this volume with the belief that conveying this idea to as many people as possible will help individuals consider digital development as something that affects them in their individual capacity. Such a shift in understanding could inevitably lead to the betterment of the world.
 
In the coming era, “real data” will play a leading role in the real world, wherein data gathered from the real world in a variety of fields (e.g., manufacturing, civil engineering and construction, mobility, medical care and health, and infrastructure) will bring about new value. As we live in the real world, many aspects of our life can also be digitized. With the increasing awareness regarding digitization, it is likely to permeate every corner of society.
 
A wastepaper collection system in Shikoku, Japan, is a noteworthy example of the aforementioned phenomena. It portrays a mutually beneficial relationship between a supermarket, its customers, and a wastepaper collection company.
 
The wastepaper collection company in question installed a sensor and wireless communication module into their collection box, to measure the amount of wastepaper in the box in real-time. This allowed the company to gain insights into the volume of wastepaper at any time, remotely, facilitating the timely collection of wastepaper. By installing this technology, the company could reduce collection costs by two-thirds. Currently, this wastepaper collection boxes are installed in supermarkets, and customers can receive points when they bring in the wastepaper. The supermarket is able to offer such points, since they are able to recoup costs from the now reduced recovery costs of the wastepaper collection company
 
Supermarkets that install such collection boxes can expect an increase in customers frequency as the points would act as an incentive for customers to visit the supermarket. Simultaneously, wastepaper collection companies can reduce the time and effort invested in the collection work. Therefore, this is a good example of a system that benefits everyone, simply by making wastepaper collection boxes “smarter.”
 
The given example illustrates only a minor change; nevertheless, it also shows how that change succeeded in creating new value. As there may be numerous similar initiatives, the possibilities for digitalization are endless.  As an increasing number of individuals gradually adopt digitalization, digital development will inevitably permeate every aspect of our lives.
 
Management consultant Peter Drucker once said, “the greatest praise an innovation can receive is for people to say, ‘This is obvious! Why didn’t I think of it? It’s so simple!’”. People tend not to notice things that are obvious, until they are highlighted. Once fully realized, digitization may eventually become the norm,. If we collectively embrace the digital arena, we may gain deep insights that will lead to the building of a new society and business world/environment.
 

(Written by MORIKAWA Hiroyuki, Professor, School of Engineering / 2021)