As cost pressures and sustainability requirements continue to rise, Japanese businesses are entering a new race: optimizing processes through automation. With automation rates in the manufacturing sector exceeding 55%, how can Japan’s enterprises fully harness the potential of automation and optimize costs?
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Pressure to optimize costs and ensure sustainable growth
In a volatile global economy, cost optimization and sustainable growth have become top priorities for all businesses. According to a McKinsey report, 79% of global companies are seeking ways to reduce costs in response to economic pressures. However, only 26% actually achieve their goals. This highlights that cost optimization is no easy task.
Cost optimization involves more than just cutting unnecessary expenses. It also means maximizing resources, improving efficiency, and balancing economic benefits with social responsibilities. A PwC survey found that 75% of global CEOs believe sustainable development is key to maintaining long-term competitive advantage. For Japan, a country committed to achieving net-zero emissions by 2050, this pressure is even more pronounced.
As a nation facing an aging population and labor shortages, this dual challenge has become more urgent than ever. These challenges require solutions that can achieve these goals without straining the budgets and resources of businesses.
Automation in Japanese businesses
Japan has long been known as a pioneer in applying technology and automation to production and management processes. With advanced technology and a commitment to enhancing efficiency, Japanese companies have achieved high levels of automation in many fields. According to a Gartner report, 80% of large enterprises in Japan had implemented RPA by 2022, higher than the global average of 60%.
The maturity of the market means companies can no longer rely on early adopter advantages. Instead, they need to find ways to optimize costs and enhance the efficiency of automation systems. A 2023 IDC report revealed that only 30% of Japanese companies are satisfied with the cost efficiency of their current automation systems. As a result, they are seeking new approaches to create smarter processes, maximize efficiency, and reduce costs in the long term.
Migration to new automation platforms: A solution for Japanese businesses
As businesses transition from basic to intelligent automation, Japanese companies are turning to migration strategies. This involves upgrading to new RPA platforms to optimize more complex processes and take advantage of advanced features. There are two main approaches to platform migration:
New automation platform
Businesses can leverage the latest technologies while eliminating the limitations of the old platform by fully transitioning to a new automation platform. This shift brings benefits such as increased efficiency, reduced operational errors, and cost optimization. For instance, Mizuho Financial Group implemented RPA across its system, automating over 2,000 business processes. This saved the company approximately 300,000 work hours annually, equivalent to 150 full-time employees.
However, transitioning to a new platform also presents challenges such as initial investment costs, transition time, and employee training. According to a Gartner report, companies adopting this strategy can save up to 30% in operational costs after three years.
Dual-platform strategy
This more flexible approach allows businesses to use both old and new automation platforms simultaneously, combining the strengths of both. Companies can minimize risks during the transition while utilizing the latest technologies to improve efficiency and optimize costs.
Tokio Marine & Nichido Fire Insurance adopted a dual-platform model during its digital transformation. Simple claim processing was automated using RPA, while traditional processes were maintained for complex cases. The company reduced claim processing time by 30% and increased customer satisfaction by 20% with this model.
akaBot (FPT): An effective automation migration solution for Japanese market
With 4,000 enterprise clients in 21 countries worldwide (as of Q3 2024) and solution capabilities recognized by leading organizations (Gartner Peer Insights, Everest Group, IDC…), akaBot can tailor its RPA solutions to address the specific needs and challenges of the Japanese market. When transitioning to the akaBot automation platform, the total cost of purchasing akaBot licenses and migration costs are equal to or lower than the investment in the old platform.
Optimizing costs and ensuring sustainable growth are not just goals but essential factors for the survival and development of Japanese businesses. Applying modern automation solutions, combined with an appropriate migration strategy, will be key to maintaining and enhancing a company’s position in the global market. Only by effectively leveraging technology can businesses overcome current challenges and achieve sustainable growth in the future.
akaBot (FPT) is the operation optimization solution for enterprises based on the RPA (Robotic Process Automation) platform combined with Artificial Intelligence, Process Mining, OCR, Intelligent Document Processing, Machine Learning, Conversational AI, etc. Serving clients in 21+ countries, across 08 domains such as Banking & Finances, Retail, IT Services, Manufacturing, and Logistics…, akaBot is featured in “Voice of the Customer” for Robotics Process Automation” by Gartner Peer Insights, G2, and ranked as Top 6 Global RPA Platform by Software Reviews. akaBot also won the prestigious Stevie Award, The Asian Banker Award 2021, Everest Group’s RPA Products PEAK Matrix® 2023, etc.
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