Social Transformation and DX / GX

The Fourth Industrial Revolution (第4次産業革命) is the large shift in how industry and society work, brought about by technologies such as IoT, AI, and big data.

Its hallmark is that all kinds of things connect to the internet (IoT), and AI analyzes the large volume of data they send to create new products and services. Industrie 4.0 (インダストリー4.0), a manufacturing initiative the German government launched in 2011, is a well-known effort to push this trend forward from the factory side.

AnalogyIt is the fourth great wave to reshape industry, and this time the wave is driven by networks, data, and AI.

How to rememberThe Japanese 次 marks order: this is the fourth turning point after steam, electricity, and computers, hence "4th."

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Society 5.0 (Society5.0) is the human-centered society Japan aims for, one that closely merges cyberspace (サイバー空間) with physical space (フィジカル空間) to achieve both economic growth and solutions to social problems.

Cyberspace is the virtual space built on computers and networks, while physical space is the real space where people and things actually exist. The Japanese government presented it as the future society to aim for in the 5th Science and Technology Basic Plan, adopted by the Cabinet in 2016. Counting the hunting society as 1.0, it is called "5.0" because it is the fifth society, after the agrarian, industrial, and information societies.

AnalogyIf human social history were a book divided into chapters, this is the blueprint the government drew up for the next one, Chapter 5.

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A Super Smart Society (超スマート社会) is one that can deliver the goods and services people need to the people who need them, when they need them, in just the amount they need; the name refers to the same society as Society 5.0, described by what it actually looks like.

It aims for a state in which society's many needs are met in fine detail, and everyone can receive high-quality services and live comfortably regardless of differences in age, gender, region, or language. The 5th Science and Technology Basic Plan uses this term for the society that Society 5.0 is meant to bring about.

AnalogyIt is like a town where, before you even place an order, exactly what you want arrives at your door in exactly the amount you want.

A data-driven society (データ駆動型社会) is one that analyzes, in cyberspace, data gathered from the real world and returns the results to the real world to solve problems and create new value.

This mechanism of linking the real world and cyberspace through data is called a CPS (cyber-physical system, サイバーフィジカルシステム). It relies on IoT for collection and AI for analysis, and it is the foundational idea that supports Society 5.0.

AnalogyJust as a car's engine turns its wheels, data becomes the power that drives society's decisions and actions.

How to rememberThe Japanese term translates "data-driven," and its word for "driven" is the one used for an engine powering a machine.

DX means using digital technology to transform the very way business and daily life work, creating new value.

The idea is usually traced to Swedish researcher Erik Stolterman, who proposed in 2004 that the spread of digital technology changes people's lives for the better. In Japan, the Ministry of Economy, Trade and Industry treats DX as a corporate effort and calls on companies to build a competitive edge by using data and digital technology not only to change products and business models but also to remake their operations, organization, and corporate culture. The ministry's DX Report 2 (2020) lays out stages that lead through digitization (デジタイゼーション) and digitalization (デジタライゼーション) to DX.

AnalogyIt is like a local photo shop that does more than speed up developing film: it remakes the business itself into a service that shares smartphone photos and handles everything through to delivering the prints.

How to rememberIf adopting IT means "changing the tools," DX means "changing the way things are done."

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Digital Transformation (デジタルトランスフォーメーション) is the full name of DX, and it means the same thing as DX.

It abbreviates the English Digital Transformation, combining the initial D with an X that stands for Transformation. In English, it is customary to shorten the prefix Trans- to X, likening it to cross, which an X can represent.

AnalogyIt is the same relationship as calling someone with a long formal name by a handy two-letter nickname.

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GX is the effort to shift an economy and society built on fossil fuels to one built on clean energy, cutting greenhouse gas emissions while also growing the economy.

In 2020, the Japanese government set a goal of reaching carbon neutrality (カーボンニュートラル) by 2050. Carbon neutrality means subtracting the amount absorbed by forests and other sinks from greenhouse gas emissions so that the net total is zero. GX is the movement toward that goal, expanding renewable energy such as solar and wind power while also making industry more competitive.

AnalogyIt is like rebuilding a town that runs on gasoline cars into one served by cars and trains powered by renewable energy, while also helping the town's businesses grow.

How to rememberG is for Green, the color that stands for the environment and decarbonization.

Green Transformation (グリーントランスフォーメーション) is the full name of GX, and it means the same thing as GX.

It abbreviates the English Green Transformation and, like DX, uses X to stand for Transformation. Green is used here as a word that symbolizes the natural environment and decarbonization.

AnalogyIt follows the same naming pattern as DX, with the driving force of change switched from digital to clean energy.

How to rememberBuilt the same way as DX: one leading letter + X for transformation.