Japan's Digital Transformation - Interview with Ryosuke Akiyoshi, Associate Partner at EY Part 2
What are the challenges in moving Japan from analog to digital?
Milos Cavic, Tech Executive Connection Host
Japan has been known as one of the most advanced societies, but we are behind when it comes to digital transformation. Ryosuke Akiyoshi, Head of the Public Innovation Lab at EY, is looking to change that.
We had the honor to sit down with Ryosuke to talk about DX in Japan. In part 2 of our interview we covered the role the Public Innovation Lab plays in promoting DX, some of its projects, its midterm goals and what kind of people they want to hire.
This interview is part of Wahl+Case’s Tech Executive Connection interview series with our host Milos Cavic, Manager of the Enterprise Tech and FinTech teams.
Watch the full Interview
Part 2: How the Public Innovation Lab promotes DX in Japan
In order to help Japan digitally transform, a lot of businesses including consulting firms have joined this mission. EY is one of the most prominent firms and has long had close ties to the public sector and local governments. Can you tell us a bit more about the mission of the Public Innovation Lab at EY? How are you planning to help this public, private partnership?
Basically, our mission is to create new products, services and businesses. These are mainly in the public sector, but always have some connections to the private sector. So there is a lot of collaboration between the public and private sectors. And that is what we want.
Our first step is always to find a real issue. Then we will come up with a prototype of a solution and finally we will develop the product or service, mainly digitally. And once the product or service is launched to the market, we can start to monetize. I think this is a very unique approach in Japan, especially in the public sector.
Although smart cities are a big focus of ours, there are so many more issues on a local level; issues you will never see if you are based in Tokyo. That’s why you have to go to rural areas and talk to the local governments to get a better understanding.
Can you explain a bit about the innovations you have been working on? This will help us to better understand the magnitude of the Public Innovation Lab.
Yes, I’d love to. One of the main areas we are focusing on is to solve issues for senior people, especially the elderly. These can be related to healthcare, public transportation and many other areas.
Currently we are looking into services for a new generation of senior citizens; a generation that already has some experience with the digital world. These citizens are usually in their 60s or younger, have a smartphone and used to work with a computer for work. In this demography there is a big potential for creating new businesses. It is much harder to come up with digital solutions for citizens in their 70s and 80s for example because they are not familiar with these types of tools.
Our goal is to include both of these senior groups and create communities where the younger senior citizens can help the more elderly ones. In these communities they can use a mix of digital tools and analogue basic communication. This would be a future project for us.
That is very interesting. Do you have any other examples of projects that you are working on?
Yes, we also have different projects, for example a collaboration with a startup to set up Covid-19 testing facilities. In December 2020 we launched our first testing services in front of major train stations like Tokyo Station.
In this case we collaborated with a startup that had the technology to create test kits for Covid-19 and we helped them set up the service. By utilizing the technology of our startup partner we managed to provide the tests for about 2,000 JPY whereas other tests back then would usually charge somewhere between 20,000 and 30,000 JPY. We offered tests at one tenth of the price. This was very important for us because Covid tests and the sense of security they provide for many people are necessary to continue with everyday life and work as much as possible.
Another project I’m currently working on is a collaboration with another startup. They use image processing technology to monitor the safety of local infrastructure like roads, electricity or water supply. I am not allowed to share any details at this point but this project is especially promising.
That sounds like you are doing a lot of meaningful work at EY. What’s coming next? What is your vision for the near future?
Our vision for the next 3 to 5 years is to build a new type of business to tackle social problems. At EY we have a global network and a lot of knowledge and expertise about the public sector. We want to combine our resources to launch new businesses for local governments. This will be a new type of collaboration between the private and the public sector.
To achieve this we are aiming to launch many services and products in the public sector. We need to make all those projects financially viable and also promote them in Japan as well as overseas in some cases. We want to show the world a new way to solve social problems.
Last but not least, why did you join EY in the first place and what kind of people are you looking for to join the Public Innovation Lab?
For me personally, I liked the idea of using my past experience to start new projects in the public sector to build a better world. I am very passionate about this. When it comes to hiring, it was very challenging to find the right people in the past few years, but thanks to Wahl+Case we managed to hire a few good people recently.
The first thing we look at in any candidates is whether they can identify themselves with our mission. Do they want to contribute to solving real problems and creating a better society? That is very important to us.
I am also a big believer in diversity of talent and expertise, not only in demographic terms but also skill wise. We need designers, engineers, marketers and so on. I am looking for people who are passionate about solving problems. In the first interview I will explain everything about the EY Public Innovation Lab. If they like our mission and what we want to accomplish, we can take it from there and talk about how they can help us.
Thank you so much for your time Ryosuke. It was very insightful. I think I gained a better understanding of digital transformation in Japan, especially on a local level in the public sector.
And if any of our readers or viewers want to find out more about EY’s Public Innovation Lab including job openings and opportunities, please contact me directly at milos@wahlandcase.com.
If you like our content, join our mailing list and receive our latest startup stories, market insights and job trends for Japan’s tech market.
