Public Sector Post-Standardization Solutions

Local governments

The deadline for unifying and standardizing core business systems is the end of FY2025. Demand for municipal solutions is expected to surge significantly that year as migration projects intensify. However, the allocation of investments after standardization is unclear, which is making it difficult for vendors to formulate strategies.
Based on a municipal questionnaire conducted, this report highlights the progress of municipal DX initiatives and future focus areas, including front-yard reform, public-sector back-office DX, and regional DX. The report uses the obtained data to help understand the current municipal status and suggests future market views by providing focus areas and growth opportunities for investments during the post-standardization period.

I. Trends in Local Governments' "Post-Standardization" Initiatives

1. Trends in Municipal Initiatives on "Post-Standardization"
   1.1. Standardization of Core Business Systems
   1.2. Current Status of Standardization
   　　1.2.1. Designated Migration Support Systems
   　　1.2.2. 34.6% of Local Governments Will Complete Migration by the Deadline
   　　1.2.3. Impacts of Standardization
   　　1.2.4. Rising Operational Costs and Countermeasures
   1.3. Looking Ahead to the Post-Standardization Era
2. Local Government Digital Transformation (DX)
   2.1. Background for the Need for Local Government DX
   2.2. Key Focus Areas for Local Government DX
   　　2.2.1. "Enhanced Security" Is the Most Common Area Currently Addressed
   　　2.2.2. "In-House Operational DX" Accounts for 94.0% of Future Focus Areas
   　　2.2.3. Distribution of Local Government DX Initiatives and Focus Areas: Current and Future Perspectives
   　　2.2.4. Local Government DX: Ranking of Future Focus Areas
3. Front Yard Reform (Reform to Enhance Digital Customer Experience)
   3.1. What Is Front Yard Reform?
   　　3.1.1. Front Yard Reform Promoted by the National Government
   　　3.1.2. The Vision of Front Yard Reform
   　　3.1.3. Government Support for Implementing Front Yard Reform
   3.2. Status of Front Yard Reform Initiatives
   　　3.2.1. "Issuance of Certificates at Convenience Stores" Is the Most Common Front Yard Reform Initiative
   　　3.2.2. Status of Front Yard Reform Initiatives by Population Size
   3.3. Challenges in Promoting Front Yard Reform
   3.4. Voices from the Site Regarding Front Yard Reform
4. Public Sector Back Office Digital Transformation (DX)
   4.1. What Is Public Sector Back Office DX?
   　　4.1.1. The Growing Importance of Public Sector Back Office DX
   　　4.1.2. BPR (Business Process Re-engineering)
   　　4.1.3. Public Service Mesh
   4.2. Key Focus Areas for Public Sector Back Office DX
   　　4.2.1. Over 90% of Local Governments Are Implementing Portal and Groupware Systems
   　　4.2.2. Generative AI Tops the List of Future Initiatives for Back Office DX
   　　4.2.3. Distribution of Initiatives and Focus Areas for Public Sector Back Office DX: Current and Future Perspectives
   　　4.2.4. Ranking of Future Focus Areas for Public Sector Back Office DX
   4.3. Challenges in Promoting Public Sector Back Office DX
   4.4. Voices from the Site Engaged in Public Sector Back Office DX
5. Regional Digital Transformation (DX) and Regional Revitalization
   5.1. The History of Regional Revitalization
   　　5.1.1. Phase 1 of Regional Revitalization (FY2014–2019)
   　　5.1.2. Phase 2 and The Vision for Digital Garden City Nation (FY2020–2024)
   　　5.1.3. Regional Revitalization 2.0 Initiative (FY2024–2025)
   　　5.1.4. Regional Future Strategy (FY2025–)
   5.2. Overview of Regional DX
   　　5.2.1. What is Regional DX?
   　　5.2.2. National Support Framework
   　　5.2.3. Areas of Focus and Case Studies for Regional DX
   5.3. Current Status of Regional DX
   5.4. Challenges in Promoting Regional DX and Regional Revitalization
   5.5. Progress of Regional DX Initiatives and Regional Revitalization
6. Expectations for IT Vendors
   6.1. Impact of Subsidies and Grants on Investment Activities
   6.2. Current State of Information Gathering: “Case Studies and Interviews with Other Municipalities” Serve as References
   6.3. Expectations for IT Vendors: "Proposals for Operational Improvements" and "Cost Transparency"
   6.4. The Ideal Vendor Profile Sought by Municipalities
   6.5. Expanding Base of Market Entrants

II. Questionnaire Summary

7. Profile
   7.1. Regions
       7.1.1. Regions by Population Size
   7.2. Population Size
   7.3. Classification of Local Governments
       7.3.1. Classification of Local Governments by Region
       7.3.2. Classification of Local Governments by Population
   Size
   7.4. Number of Employees
   　　7.4.1. Number of Staff by Region
   　　7.4.2. Number of Staff by Population Size
   7.5. Number of Information System Staff
   　　7.5.1. Number of Information System Staff by Region
   　　7.5.2. Number of Information System Staff by Population Size
8. Progress of Municipal DX Initiative
   8.1. Status of Unification and Standardization
   　　8.1.1. Status of Unification and Standardization by Region
   　　8.1.2. Status of Unification and Standardization by Population Size
   8.2. Current Status of Municipal DX Initiatives
   　　8.2.1. Front-Yard Reform by Region
   　　8.2.2. Front-Yard Reform by Population Size
   　　8.2.3. Promotion of My Number Card Adoption and Use by Region
   　　8.2.4. Promotion of My Number Card Adoption and Use by Population Size
   　　8.2.5. Public Sector Back Office DX by Region
   　　8.2.6. Public Sector Back Office DX by Population Size
   　　8.2.7. Legacy System Innovation by Region
   　　8.2.8. Legacy System Innovation by Population Size
   　　8.2.9. Utilization of eLTAX for Public Fund Collection by Region
   　　8.2.10. Utilization of eLTAX for Public Revenue Collection by Population Size
   　　8.2.11. Promotion of Telework by Region
   　　8.2.12. Promotion of Telework by Population Size
   　　8.2.13. Data Empowerment by Region
   　　8.2.14. Data Empowerment by Population Size
   　　8.2.15. Security Enhancements by Region
   　　8.2.16. Security Enhancements by Population Size
   　　8.2.17. Securing Digital Talent by Region
   　　8.2.18. Securing Digital Talent by Population Size
   　　8.2.19. Regional DX by Region
   　　8.2.20. Regional DX by Population Size
   8.3. Status of Municipal DX Initiatives (Future)
   　　8.3.1. Front-Yard Reform by Region
   　　8.3.2. Front-Yard Reform by Population Size
   　　8.3.3. Promotion of My Number Card Adoption and Use by Region
   　　8.3.4. Promotion of My Number Card Adoption and Use by Population Size
   　　8.3.5. Public Sector Back Office DX by Region
   　　8.3.6. Public Sector Back Office DX by Population Size
   　　8.3.7. Legacy System Innovation by Region
   　　8.3.8. Legacy System Innovation by Population Size
   　　8.3.9. Utilization of eLTAX for Public Fund Collection by Region
   　　8.3.10. Utilization of eLTAX for Public Revenue Collection by Population Size　　
   　　8.3.11. Promotion of Telework by Region
   　　8.3.12. Promotion of Telework by Population Size
   　　8.3.13. Data Empowerment by Region
   　　8.3.14. Data Empowerment by Population Size
   　　8.3.15. Security Enhancements by Region
   　　8.3.16. Security Enhancements  by Population Size
   　　8.3.17. Securing Digital Talent by Region
   　　8.3.18. Securing Digital Talent by Population Size
   　　8.3.19. Regional DX by Region
   　　8.3.20. Regional DX by Population Size
   8.4. Status of Municipal DX Initiatives: Future Focus Level – 1st Place
   8.5. Status of Municipal DX Initiatives: Future Focus Level – 2nd Place
   8.6. Status of Municipal DX Initiatives and Future Focus: 3rd Place
9. Front Yard Reform
   9.1. Progress of Front Yard Reform
   　　- Online Administrative Procedures
   　　- Paperless Service Counters
   　　- AI Chatbots
   　　- Issuance of Certificates at Convenience Stores
   　　- One-Stop Service Counters
   　　- Procedure Guidance Systems
   　　- Reservation Systems
   　　- Remote Service Desks
   　　- Mobile Service Desks
   　　- Cashless Payment
   9.2. Challenges of Promoting Front Yard Reform
10. Public Sector Back Office DX
    10.1. Progress of Public Sector Back Office DX Initiatives
    　　- Electronic Approval
    　　- Electronic Approval
    　　- Paperless Operations (Document Management and Electronic Storage)
    　　- Implementation of Internal Portals and Groupware
    　　- Generative AI Empowerment
    　　- Utilization of AI (Excluding Generative AI) and Robotic Process Automation (RPA)
    　　- Utilization of No-Code and Low-Code Tools
    　　- Data Empowerment
    10.2. Status of Public Sector Back Office DX Initiatives (Future Plans)
    　　- Electronic Approval
    　　- Electronic Approval
    　　- Paperless Operations (Document Management and Electronic Storage)
    　　- Implementation of Internal Portals and Groupware
    　　- Generative AI Empowerment
    　　- Utilization of AI (Excluding Generative AI) and Robotic Process Automation (RPA)
    　　- Utilization of No-Code and Low-Code Tools
    　　- Data Empowerment
    10.3. Status of Public Sector Back Office DX Initiatives: Future Focus Level – 1st Place
    10.4. Status of Public Sector Back Office DX Initiatives: Future Focus Level – 2nd Place
    10.5. Status of Public Sector Back Office DX Initiatives and Future Focus: 3rd Place
    10.6. Challenges of Public Sector Back Office DX Initiatives
11. Regional DX and Regional Revitalization
12. Expectations for IT Vendors
13. Survey Form