KONO Taro, the Minister for Digital Transformation, Leading Japan's DX: Reflecting on Two Years of Progress Part1

The Digital Agency is a government organization that serves as the command center for Japan's DX (Digital Transformation) reform, working toward the realization of a "digital society that leaves no one behind and is kind to people."

We spoke with KONO Taro, who was appointed Minister for Digital Transformation in August 2022, to reflect on his two years of accomplishments and to hear about the ongoing challenges he is addressing to further accelerate Japan's digitalization.

Myna-chan&KONO Taro

■ First, abandon the idea that "Kasumigaseki never makes mistakes"

In recent years, digital technology has made remarkable progress. However, there is a gap between those who can quickly adapt to cutting-edge digital technology and incorporate it into their daily lives and work, and those who cannot. Minister Kono emphasizes the importance of having an "attitude that does not fear change" to achieve DX.

"Before becoming Minister for Digital Transformation, I served as the Minister for Regulatory Reform, where I worked on various aspects of digitalizing government administration. At that time, I proposed abolishing the use of personal seals (mitome-in) as they no longer served as a meaningful means of personal identification. Some government offices were quick to respond, while others were not."

"Perhaps the same can be said for all organizations where people gather. If you can change things as needed from what has been continued up until now, you should be able to smoothly advance DX and make a difference."

Minister Kono continues to push forward with the DX of government agencies, putting at the forefront a stance of breaking away from the traditional mindset of "Kasumigaseki never makes mistakes." He has focused on fostering an agile approach that involves making swift decisions in response to changing circumstances and implementing various measures to create better systems and services, moving forward despite failures.

Additionally, in April of this year, a Japanese version of ridesharing was launched in collaboration with the Ministry of Land, Infrastructure, Transport and Tourism. Minister Kono reflects on how he has pursued a policy of boldly making necessary changes after carefully listening to user feedback since the start of the ridesharing service.

"The priority for ridesharing is to ensure 'mobility' from the perspective of improving user convenience. Based on this idea, we upgraded the Japanese ridesharing service after July to increase the number of vehicles to meet the growing demand for transportation. During rainy weather when more than 5 millimeters of rain per hour is forecasted or during times when temperatures exceed 35 degrees Celsius, the service will now be available in time slots that were previously unusable. In addition, the number of vehicles will be increased during already usable time slots to alleviate the shortage of transportation options. I am grateful for the agile response by the Ministry of Land, Infrastructure, Transport and Tourism to the regulatory reform."

■ Promoting the widespread use of a "convenient and secure" My Number Card

In 2023, cases were confirmed where some information, such as health insurance certificates and public payment accounts, was not correctly linked to individuals' My Number (national identification number).

In response to this issue, in June last year, the Digital Agency, under the leadership of Minister Kono, established the "My Number Information Comprehensive Inspection Headquarters" in collaboration with relevant ministries and agencies to conduct a thorough inspection across the government and to take measures to prevent recurrence.

While Minister Kono asserts that "we will thoroughly fix the areas that need improvement regarding the My Number Card," he also emphasizes the importance of aiming to improve services with a forward-looking approach, bearing in mind that "zero risk" is unattainable.

"For example, when it comes to the stage of implementing cutting-edge autonomous driving technology in society, it is difficult to seek zero risk from the outset. Many of the current causes of traffic accidents are due to human error. Considering the high risks involved when elderly people drive cars themselves, gradually expanding autonomous driving could lead to a reduction in traffic accidents caused by human error. It is essential to take a broad view and actively adopt technologies that can replace human actions while pursuing a safe life."

Since the establishment of the Digital Agency in 2021, the achievements of DX have rapidly permeated into daily life. One example is the "Visit Japan Web."

"The 'Visit Japan Web' is a service that allows Japanese people who have traveled abroad to register various procedures related to entry into Japan in advance online, facilitating smooth entry. The Digital Agency developed this service and has been making fine adjustments to improve convenience in collaboration with the Ministry of Land, Infrastructure, Transport and Tourism, the Ministry of Finance, the Immigration Services Agency, and airports nationwide. At the start of the service, we received many comments pointing out difficulties in use. Now, however, it is highly rated by people returning to Japan and those entering from abroad."

I often go on business trips abroad, and indeed, the "Visit Japan Web" service has become easier to use.

"Private sector digital platforms, such as Rakuten, Yahoo, Amazon, and Google, continuously make agile reforms to change what needs to be changed, from the user interface and experience to the backend, emphasizing usability. That is the strength of digital technology, I believe."

Expanding the use of the My Number Card has been a particular focus of Minister Kono during his two years in office. He has quickly visited many local governments and private companies that have launched new initiatives and services related to the My Number Card.

In municipalities where the My Number Card is becoming more widespread, there are cases where it is used as a "citizen card" in various aspects of daily life. Minister Kono smiled as he discussed the impressions he gained from his visits.

"I was particularly impressed with 'LoCoPi (Locopi) Asahimachi' in Asahi Town, Toyama Prefecture. They use the remaining capacity of the IC chip in the My Number Card to store the local currency service 'Asahimachi Coin,' which can be used in place of a wallet or smartphone for shopping. I heard that by the end of this year, point-based payments will be available at around 50 stores in Asahi Town. I also saw cases where the My Number Card was used for checking in at senior exercise classes or for children using school buses to go to and from school, applying it as a family monitoring service."

■ Outlook for the next generation of My Number Cards and their smartphone integration

Minister Kono spoke about what the Digital Agency is currently working on to further expand the use of the My Number Card.

"We are working toward the goal of starting the integration of the My Number Card and driver's license by the end of fiscal 2024. In addition, we have launched a task force to consider the introduction of the 'next-generation My Number Card' by 2026."

"The current My Number Card has a validity period of 10 years, but the electronic certificate has a validity period of 5 years due to the encryption methods used. We have received feedback that the renewal of the electronic certificate is troublesome. The next-generation My Number Card will enhance encryption technology and align the validity period of the electronic certificate with that of the card."

Minister Kono also mentioned that in the future, it may be necessary to consider the necessity of physical cards. Looking abroad, for example, in the United States, there is a gradually expanding environment where driver's licenses, state-issued ID cards, student ID cards, and employee ID cards can be added to the Wallet app on an iPhone or Apple Watch and presented as official identification.

■ The grandmother who carries only her smartphone and My Number Card

Minister Kono's desire to accelerate the smartphone integration of the My Number Card was reaffirmed during a visit to Asahi Town, Toyama Prefecture, in July this year, following a conversation with a resident.

"When I advised an elderly woman I met to keep her My Number Card in her wallet so as not to lose it, she replied, 'No, Mr. Kono, the only things I carry are my smartphone and My Number Card. I don't carry a wallet.' I felt reassured that if the My Number Card becomes available on smartphones, that grandmother I met will immediately take advantage of it."

By maintaining an "attitude that does not fear change," opportunities to feel the richness of life will also increase.