Chugai’s digital approach is accepted by Tokyo Stock Exchange

According to its press release, Chugai Pharmaceutical Co., Ltd. was selected as “Digital Transformation Stocks” in 2020

Chugai Pharmaceutical Co., Ltd. (TOKYO: 4519) announced that it has been selected as one of the “Digital Transformation Stocks (DX Stocks) 2020” by the Ministry of Economy, Trade and Industry (METI) and the Tokyo Stock Exchange (TSE). “DX Stocks” are designated to companies that have fundamentally transformed their business models and other aspects of their business based on the premise that digital technology will lead to new growth and enhanced competitiveness.

In recent years, with the spread of digital technologies such as AI, IoT, and Big Data, the trend of Dx has become apparent worldwide by moving beyond the realm of “utilizing IT for business” and use digital technology as a precondition for fundamentally transforming business models, organizations, operations, corporate culture, and culture to realize customer value in order to achieve new growth and strengthen competitiveness.

METI and TSE have jointly selected and announced the DX Stocks with an aim to accelerate the digital transformation of Japanese companies in preparation for the arrival of the fully-fledged digital age. 35 companies were selected from a pool of approximately 3,800 listed companies in Japan based on the following criteria: 1) business transformation, 2) strategic initiatives, and 3) management leadership.

Who is Chugai Pharmaceutical Co., Ltd.?

Based on Business Wire, a Berkshire Hathaway company’s media, the company profile of Chugai is described as

Chugai Pharmaceutical (TOKYO:4519) is one of Japan’s leading research-based pharmaceutical companies with strengths in biotechnology products. Chugai, based in Tokyo, specializes in prescription pharmaceuticals and is listed on the 1st section of the Tokyo Stock Exchange. As an important member of the Roche Group, Chugai is actively involved in R&D activities in Japan and abroad. Specifically, Chugai is working to develop innovative products which may satisfy the unmet medical needs, mainly focusing on the oncology area.

In Japan, Chugai’s research facilities in Gotemba and Kamakura are collaborating to develop new pharmaceuticals and laboratories in Ukima are conducting research for technology development for industrial production.

Overseas, Chugai Pharmabody Research based in Singapore is engaged in research focusing on the generation of novel antibody drugs by utilizing Chugai’s proprietary innovative antibody engineering technologies. Chugai Pharma USA and Chugai Pharma Europe are engaged in clinical development activities in the United States and Europe.

What is Digital Transformation?

According to Salesforce’s explanations, we can see the definition of digital transformation as follows.

Digital transformation is the process of using digital technologies to create new — or modify existing — business processes, culture, and customer experiences to meet changing business and market requirements. This reimagining of business in the digital age is digital transformation.

It transcends traditional roles like sales, marketing, and customer service. Instead, digital transformation begins and ends with how you think about, and engage with, customers.  As we move from paper to spreadsheets to smart applications for managing our business, we have the chance to reimagine how we do business — how we engage our customers — with digital technology on our side.

For small businesses just getting started, there’s no need to set up your business processes and transform them later. You can future-proof your organization from the word go. Building a 21st-century business on stickies and handwritten ledgers just isn’t sustainable. Thinking, planning, and building digitally sets you up to be agile, flexible, and ready to grow.

Many Japanese Companies faces the same challenge: How to transform them?

In fact, the word, “Digital Transformation (DX)”, is not new. However, it seems that many Japanese companies are struggling to realize it. Of course, DX is not companies’ purpose but their way to make them more sustainable and successful. However, some companies actually tackle DX as though it were corporate’s purpose. This is one reason why Japanese companies do not realize DX.

Another reason is that human nature makes us reluctant to change ourselves. We can call this status quo bias. Therefore, strong leadership is necessary to transform the company. We can see that Chugai is the good example for this nature. In other words, many Japanese companies can learn the essence to transform themselves from Chugai’s initiative.

At the same time, we can see how difficult to change organizations in the other article. Therefore, if we want to create new values, we need many knowledge. The word, Digital Transformation, is not important. Our bold actions, expertise, courage and some good luck are important.