"Data will become a common language connecting the workplace and management." What is JDMC, the company that has supported data utilization in Japan?

The Japan Data Management Consortium (JDMC) was established in 2011 with the aim of creating a foothold for utilizing corporate data in management and business. The organization actively launches and manages study groups and communities on data utilization, organizes events, and hosts seminars. It has been responsible for creating the foundation for companies to utilize data.
Around 2000, a wave of IT adoption hit companies. Telephones were replaced by email, and paper documents were converted to electronic form. Inventory management records and customer information also went from thick ledgers to single files, and companies accumulated large amounts of data. This data is both the history of a company's activities and a treasure trove for identifying the next step. However, when it comes to actually identifying the next step, many managers and staff are left unsure of what to do first.
This time, we spoke with Hiroshi Onishi, Secretary General and Director of JDMC and President and CEO of NTT DATA Value Engineers, Inc., one of Japan's leading data management specialists, about JDMC and data management.

▼Profile
Secretary General and Director of Japan Data Management Consortium (JDMC)
President and CEO of NTT DATA Value Engineers Corporation
Mr. Hiroshi Onishi
*Titles and affiliations are those at the time of interview.

• Japan Data Management Consortium (JDMC) website

Approximately 300 companies participate! A specialized organization that has supported and promoted corporate data utilization for many years

First, could you tell us about the background and goals behind the establishment of JDMC?

JDMC was founded by myself and a small group of volunteers from several vendors. At the time, we were in a "Japan Passing" era, where many promising tools and solutions for data management and utilization were appearing on the market in Europe and the United States, but none had made it to Japan. If things continued like this, Japan's international competitiveness would decline. Therefore, in order to revitalize data utilization in Japan, we first wanted to raise awareness and spread the importance of data management, which is the source of that utilization, and so we began our activities.

Recently, Russia's invasion of Ukraine has led to soaring raw material prices, as well as rising food, gas, and electricity costs. The spread of COVID-19 has also made it difficult for store managers, who rely on years of experience and intuition to run their stores, to predict how much to purchase to minimize waste. When asked what "reliance" they should use to make decisions in this uncertain business environment, it's inevitable that managers will turn to current facts—that is, data—to address a future that cannot be predicted or addressed solely through human experience and intuition. While society's perception of data has changed significantly since JDMC was founded, our ultimate goal is to make using data to make better decisions the norm for companies and organizations.

At that time, were there any companies that were focusing on utilizing data?

There weren't many. Even the companies that were putting it into practice were skeptical, wondering if it was the right way to do it. That's why we thought it was necessary for JDMC to uncover the initiatives of each company and proactively share them first.

Ten years after its establishment, JDMC now has approximately 300 participating companies, including some of Japan's leading companies, such as megabanks and major automobile manufacturers. At the time, the accumulated experience in data management and utilization remained limited to individual companies and personnel, but now, regardless of business type or industry, the experience has been shared, and various concerns that arise in the process are discussed. I feel that this has contributed in some way to laying the groundwork for Japanese companies to actively utilize data.

What kind of activities does JDMC carry out?

As I will explain in more detail later, data utilization cannot be achieved overnight. Companies and those in charge often stumble over the question, "Where do I start?", and even if they do implement it, they often end up feeling anxious, wondering, "Is this the right way to do it?" JDMC focuses on these concerns and is carrying out three main activities.

1: Management of study groups and communities

First of all, what exactly are data utilization and data management? What is the purpose of data utilization, and what can be seen and what can happen by combining data? At JDMC, member companies can freely establish study groups and communities at their discretion, and participation is open to not only IT professionals, but also marketers and business department personnel. Each group brings their own company's challenges to bear on common themes, and jointly collects case studies and researches frameworks.

A few years ago, a certain use of data became a hot topic and sparked outrage. While data is beneficial to companies, some people have suffered disadvantages due to poor use of the data, and this situation has made headlines across industries. In such cases, data utilization can backfire. One example of a study group theme is, "What are the compliance points that we need to be aware of in order to actively utilize data?"

In this way, JDMC holds study groups and community activities that bring together people with the same concerns and those close to the "field" to delve deeper into topics of interest. We also operate a Slack account, creating a forum for discussion where people can freely and openly exchange concerns and opinions outside of study groups. Currently, Slack has 500 members, and is used as a place where member companies with specific interests or themes can freely disseminate information.

2: Conference and Data Management Awards

JDMC holds a large-scale event once a year. It is held in a conference format, with speakers from people and companies with cutting-edge data utilization examples, and is designed to allow participants to take away many hints for data utilization throughout the day. It is usually an in-person event, but for the past few years it has been held online. We hope to return to an in-person event in the future.

After several years of holding events online, I realized there is still value in meeting face-to-face. Speakers are at the forefront of data utilization, and participants are currently struggling with issues. I believe that connecting these two groups is one of JDMC's missions. Due to the ongoing impact of COVID-19, the event will be held online, but I believe you will still be able to feel the high level of enthusiasm online, so I hope you will attend.

In addition, JDMC also runs an annual Data Management Awards ceremony, held at the same time as the conference. This awards ceremony recognizes corporate departments that have achieved outstanding results and achievements through the use of data, and that have used data in innovative ways.

We often hear people say, "Receiving the Data Management Award has made us feel appreciated within the company." Data management is, so to speak, the foundation that creates business benefits. Because it is difficult to prove the causal relationship between data management and direct revenue, it is often the case that people within the company wonder whether it is meaningful. However, we are pleased that receiving the award seems to raise awareness within the company that "we were actually doing something amazing!"

3: Information dissemination

We publish and send books and videos that compile the knowledge gathered through the study groups and communities mentioned above. In addition to providing easy-to-understand basic data management courses for beginners and in-depth lectures specializing in MDM (Master Data Management) online, we are also working to send information that makes data management/utilization more accessible from a wide range of perspectives.

We are also working hard to make member companies feel like they are working together to promote data utilization in Japan, by publishing columns in a relay format among the approximately 300 JDMC member companies.

The first step in utilizing data is to "look at the actual data and get ideas"

"Data" is a single word, but what kind of things do you think should be utilized as "data"?

I believe that anything that can be called digital, from data in core systems to email text, document files, spreadsheets, audio and video, can all be used as data. That being said, I think that everyone in charge is racking their brains over how to use it. Even if it's just an idea, I'd like you to start by finding a purpose for using it.

We often receive consultations from people who say, "We installed a data management tool, but we're not making progress in using the data." Unless you determine what you want to do with the data and your objectives, simply having the tool won't help you make progress in using it on-site. To achieve this, we encourage you to first look at the actual data and expand on your ideas, such as, "Wouldn't it be great if we could see customer behavior in ways that we couldn't see before?" Then, without hesitation, write down any ideas that come to mind on a whiteboard and explore why you want to use the data and what kind of data would be useful to have.

Additionally, there are many obstacles that trouble those in charge, such as aligning awareness between management and the field, and imagining how data will be used across departments.Even in Japan today, data utilization within individual departments has progressed to a certain extent, but dynamic data utilization that transcends departmental boundaries still has a long way to go, and conversely, it could also be said that there is room for growth.

To set goals, it seems necessary to take a bird's-eye view of the organization through data. On the other hand, the more bird's-eye view you take, the more difficult it seems to be to overcome the barriers between management, the field, and departments. Do you have any tips on how to overcome this?

You're absolutely right. Compared to when we first started, attention to data has increased dramatically. However, we recognize that we still have a long way to go to actually utilize data. One of the barriers is that data is rarely connected across departments and divisions. This is not just a barrier to data utilization, but also to the digital transformation that has been gaining attention recently, causing headaches for many people. Collecting and utilizing data from various source systems across departments is something that every company starts with, "I've never done this before." That's why people in every company are often stumped and hesitant to try. I believe that JDMC's role is to encourage people to join together in search of answers to these difficult shared challenges, even though there are no single right answers.

On the other hand, the cost of storing data is decreasing every year, and the amount of data within companies is increasing. It's also becoming easier to hear customer feedback. Until now, manufacturers had to go through wholesalers, distributors, and retailers before their products reached the end customer, so the only way to gather customer feedback was through a customer survey postcard attached to the product. That was pretty idyllic, wasn't it? (laughs) Compared to those days, many products are now connected to the Internet, making it easier to gather customer feedback through customer service on websites, as well as through word-of-mouth on social media and review sites. There's no reason not to take advantage of this. JDMC has accumulated knowledge about the concerns and challenges of many companies and their representatives, so we encourage you to consult with us and make use of it.

Could you tell us what JDMC's ultimate goal is?

"The end of JDMC's role" means that data management and utilization will become a natural part of the culture for Japanese companies and organizations. Not only JDMC member companies, but all companies will be able to use data to make decisions. Data utilization will become a familiar and commonplace practice. Once this happens, I think JDMC will no longer be needed. Currently, we still have a large number of participants from IT departments in our research groups and conferences, but we would like to see more people involved in marketing, sales, general affairs, human resources, manufacturing, and other fields participate.

If people on the front lines think that "data utilization is useful" and "looking at data is fun," wouldn't it be easier for the departments leading data utilization to align with management and the front lines? Surely data could also become a common language between management and the front lines. We live in a world where management, business front lines, and IT departments all say things like, "According to this data, this decision seems appropriate, so..." I hope that data will become a "language" that leads to a common understanding and communication between different departments. I am convinced that the use of "data" will further connect business and IT, and management and the front lines.

That being said, looking at data can seem difficult. I find myself wondering where to start, what to look for, etc. Do you have any tips for making looking at data fun?

I've talked about this in a complicated way up to this point, but think about it in more familiar terms. "My manager left some food on his lunch tray. Is he not feeling well?" "Mr./Ms. XX seems more energetic than usual today. Did something good happen?" In fact, we all make inferences and predictions based on all kinds of data we obtain through our senses, intuition, and experience on a daily basis to discover problems and make decisions. In other words, you all use data in your daily lives as a matter of course.

Digital data has transformed information previously obtained through sensation, intuition, and experience into quantitative data, a common language that anyone can understand. It's easier to grasp signs and results with your head than with your senses. So, when you hear the term "data utilization," please relax and take the time to face the data with ease. Questions like "Why did sales go up? Why did they go down?" can easily be identified by looking at marketing data, inventory data, and internal company data. When you compare it with other data, you will begin to see relationships, and I think you'll soon realize that "looking at data is fun."

"What do you want to do with data?" Once you have found your purpose, take a look at the data that your company has at hand. If you find that "the numbers are increasing only in this month," take a look at the data from the previous year and the year before. If the numbers are increasing in the same month, try to find out "why?" Ask your sales department or marketing department. Take a look at the data. The data will tell you "what to do next."

Becoming a flagship for enhancing international competitiveness together with participating companies

Saison Information Systems has joined JDMC. What are your expectations for participating companies?

The number of JDMC member companies has grown from just over ten companies at the start to approximately 300. Of course, we welcome other companies to continue participating in the future. We would also like Saison Information Systems to speak freely and openly at JDMC about case studies, stumbling blocks, and barriers they have encountered. There are sure to be other companies with similar concerns, and some people in charge will be thinking, "Maybe I should ask for advice?" We hope that JDMC will be used as a place where we can think about and promote data utilization together.

JDMC has also received great support from participating companies. In the case of IT companies, they not only provide us with examples of successful data utilization, but also often cooperate with us by simply providing venues and people for seminars. Furthermore, companies with media presence, such as Saison Information Systems, help us raise awareness by introducing JDMC in this way. We are extremely grateful.

JDMC aims to "improve the international competitiveness of Japanese companies." While we have participants from companies that are competitors within the same industry, in our study groups, competitors also work on the same themes and help each other improve. Perhaps the people in charge joined with the hope of "improving their own company's competitiveness by deepening and strengthening their data utilization!" However, with the help of everyone involved, I feel that JDMC is becoming one of the cornerstones for increasing the international competitiveness of Japanese companies, and ultimately Japan itself. We hope to continue working with you to invigorate Japan, so we appreciate your continued support.

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