However, advanced economies are pursuing digital transformation (DX) not chiefly to reform the cost structure but rather to move toward a business model in which data creates value. Meanwhile, the expansion of cloud-based services has lowered hurdles to digitalization, for instance, by enabling lower-cost and faster implementation.
This, I believe, provides firms with the opportunity to step up the pace of transformation of their business models and make significant headway into new stages of growth. Furthermore, for Japan to take the lead in areas such as digitalization and climate change response, the growth of startups that can carry forward such initiatives will be critical.