Interim Report of the
"Subcommittee for Human Reso
urce Development in the Information Technology Field"

Ad Hoc Committee on Information Industry of Industrial Structure Council,
Ministry of International Trade and Industry

- Human Resource Development through Strategic Computerization Investment for Economic Recovery -

<Summary>

 

1. Background information and approaches to the task

(1) For the sake of keeping and improving the international competitiveness of Japanese industries, it is essential to reform business processes and to improve methods of storing and using information by means of information technology (IT).

(2) Investment in information technology that is aimed at materializing business strategy is defined here as "strategic computerization investment."

(3) The most important factors concerning strategic computerization investment are the human resources of both IT users and venders and the environment of human resource development. Major approaches to this task are "environmental arrangements," such as the provision of motives and relevant information.

(4) There are two types of environmental arrangements: "direct environmental arrangements" and "basic environmental arrangements."

 

2. Basic concept in approaching the task

(1) Direct environmental arrangements

i. One reason for the fact that strategic computerization investment is not always easy is the difficulty in assessing the merit of the investment objectively.

ii. A useful solution is to provide objective information to IT users (such as an objective comparison of services offered by IT venders from the viewpoint of users).

The availability of such information among users is expected to lead to the activation of competition between venders.

iii. As a result, venders will have to make investment efforts to attract and foster human resources in order to satisfy the needs of companies. From the viewpoint of IT venders, the most important investment is in human resource development.

(2) Basic environmental arrangements

i. In regard to the infrastructure of human resource development, such as qualification tests and institutions of special education, appropriate steps have to be taken to meet the needs of the time, since technological innovation is rapidly advancing in the field of IT.

ii. In order to attract excellent human resources to the field of IT, it is necessary to clearly present the ideal type of human resource for that field.

iii. It is important to raise the level of information literacy nationwide through computer education at schools.

iv. Human resource development is important not only in the private sector but also in the public sector, since computerization in the public sector greatly affects the progress of computerization of the whole society.

 

3. Categorization of computer users and IT venders (in connection with direct environmental arrangements)

(1) Categorization of computer users

i. In Japan, there is no unified definition of CIO (chief information officer).

ii. From the standpoint of strategic computerization investment, business strategy is important. In this context, the use of the phrase "CSO" (chief strategic officer) is recommended.

iii. CSOs are especially important in small and medium-size companies. It is advisable to seek outside support in planning and carrying out effective IT strategies.

iv. The importance of human resources who support CSOs should also be pointed out.

(2) Categorization of IT venders

i. IT coordinator

It is proposed that human resources who connect business strategy and IT should be called "IT coordinators." IT coordinators are required to have the following skills in addition to expertise in their own field.

(i) Interpersonal communication skills

(ii) Business process analyzing and abstracting skills

(iii) System development management skills

ii. Project management skills

Project managers, who take charge of the comprehensive management of information system development, such as the management of schedules, costs, and resources, are becoming increasingly important for both users and venders.

In fostering project managers, training should be provided on the basis of OJT. It is proposed that modern project management should be introduced into projects carried out by government agencies.

(3) Utilization of system monitoring in strategic computerization investment

i. Objective analysis and assessment by third parties is a useful standard of judgement in the process of decision-making about investment in IT by CSOs.

ii. In order to promote the utilization of system monitoring, various measures should be taken, including the re-examination of relevant qualification systems.

 

4. Environmental arrangements to promote strategic computerization investment

If problems concerning investment in information technology, such as difficulties in assessment and lack of relevant information, are solved, users (especially CSOs) will be able to invest in information technology with a more positive and aggressive attitude. At the same time, vender companies will be able to provide incentive and pressure to invest in human resource development more actively. In order to promote environmental arrangements for this purpose, the following project is proposed.

"The Strategic Computerization Investment Promotion Project" to enhance corporate

competitiveness through the reform of business operations.

Provisional title: IT Solution Square Project (SSP) (see Appendix)

 

5. Improvement of the qualification test of data processing specialist

(1) Present situation of the qualification system of data processing specialists

i. In regard to the qualification test of data processing specialists, several criticisms are given, such as:

a. There is a widening gap between the examination system and rapid technological innovation as well as the actual business world.

b. The value of the qualification decreases with the passage of time, due to the absence of a re-qualification system of data processing specialists.

(2) Future direction of the qualification system

i. Categorization of IT engineers into about 4 categories.

ii. Establishment of an organization to plan and manage flexible and stable qualification tests.

iii. The date of passing the test should be noted along with the qualification registration number to cope with rapid technological innovation.

iv. Qualifications will be issued in the form of IC cards. At the same time, retrieval of information about qualified experts will be facilitated through the Internet.

v. In regard to the qualification system of "IT coordinator" and "IT system monitors", who are expected to have considerable practical experience in the field, qualifications should be issued after a fixed period of work experience and after passing relevant tests.

 

6. New trends in IT-related human resource development organizations

(1) Re-examination of plans for establishing a college of information

For the purpose of encouraging efforts of technical colleges to train necessary human resources and meeting the needs of the industrial world for various kinds of human resource development, the present curriculum system should be replaced by a more up-to-date system.

(2) Plans for creating a new system to support high-quality human resource development organizations concerning the following institutions.

[Technical colleges in the technological field]

i. Environmental arrangements to show colleges' hidden efforts to provide pragmatic and high-quality education in tangible figures so that the efforts of each college can be compared.

ii. Environmental arrangements to encourage technical colleges to provide objective information (especially about their distinctive or unique programs) through the Internet, thereby enabling colleges to retrieve and compare information about each other.

[Environmental arrangements to promote cooperation between human resource development organizations and the industrial world]

i. Promotion of cooperation between the industrial world and not only technical colleges but also various human resource development organizations.

ii. Provisional name: Credit for Excellent Partnership (CEP), a qualification system based on cooperation between industry and academia

a. To certify that each technical college is providing practical education based on cooperation with the industrial world. A private organization (provisional name: Computerization Human Resources Development Committee) comprising staff members of personnel and educational divisions of IT-related and information content-related industrial organizations will provide the certification.

b. As incentives to provide outstanding education based on cooperation, government subsidies to cover the cost of developing educational materials will be examined. By this action, technical colleges are expected to provide a wide range of technology-related career education and to contribute to the upgrade of skills of company engineers as "professional schools."

(3) Promotion of local human resource development projects in the technological field

i. At the local level, the spread of technology, which is rapidly advancing in the cities, is relatively slow.  At the same time, local companies are required to participate in global competition involving international companies. In this context, human resource development in the technological field is an urgent task.

ii. Based on the Law to Promote the Creation of New Businesses, which was enforced in February 1999, local software centers are expected to play the following roles.

a. To spread information technology throughout the local community.

b. To educate and train CSOs and prospective CSOs.

c. As part of the IT Solution Square Project, to visit local medium-size companies and convey the significance of the project.

d. To serve as the secretariat of local IT-related industrial organizations.

e. To strengthen the cooperation with other vocational training centers, for example, by cooperating in carrying out training programs to upgrade the skills of local instructors.

 

7. Promotion of information technology education at schools (focusing on the relationship with the industrial world)

(1) There are a wide range of challenges in the promotion of information technology education at schools.

(2) Since parents have no information to compare their children's school situations in the light of the national situation or national plan, and there is no voice of the people in local communities demanding the enforcement of education according to the plan. Though it has been decided that the cost of carrying out the education plan will be covered by the local allocation tax, the plan has not yet been carried forward as scheduled.

Drawing on the situation in the US, where an organization called "CEO Forum" conducts a survey on the progress of information technology education at schools and announces its findings, it is expected that the industrial world will make a similar contribution in Japan.

(3) Important points concerning the contributions of the industrial world to technological education are as follows:

i. As many companies as possible should make a contribution, even if each company's contribution is small, just like the web sites on which companies provide information about their fields of speciality.

ii. Incentives for contributors are needed such as the display of names of companies that contributed.

iii. The most important contribution by the industrial world is to provide high- quality products and services to the educational market at the lowest possible price, and to invest in the best human resources in the field.

 

8. Human resource development in the public sector

(1) Computerization of public administration is important since it affects industrial computerization and standardization.

(2) In general, human resource-related issues are more serious in public administration than in private companies.

<In the case of local governments>

i. One idea is to introduce the concept of CSO into the public sector, such as medium-size private companies, and to prepare an information network of public sector CSOs.

ii. To provide public administration officers with opportunities to experience the effects of computerization.

<In the case of the central government>

i. Fundamentally the same as for local governments.

ii. It is important to hire IT coordinators on a contract basis or to introduce system monitoring. (N.B: CIO training programs in the US may be informative.)

 

9. Conclusion

Regrettably, there are many issues that could not be examined thoroughly. For example:

(1) Method of making use of the skills of middle-aged workers. For instance, even though their experiences so far have nothing to do with IT, there is still the possibility that such experiences, combined organically with IT, could produce good results.

(2) Problems of education at universities. Information technology-related university education in Japan overemphasizes computer science and tends to neglect information technology. At the same time, there has not been effective cooperation between industry and academia in the IT field.

(3) The actualization of proposals mentioned so far requires enormous energy. It is expected that this report will activate relevant discussions in various fields.

 

 

 

(Appendix)

"Strategic Computerization Investment Promotion Project" to enhance corporate competitiveness through reform of business operations

Provisional title: IT Solution Square Project (SSP)

About the provisional title: The word "square" here has the following meanings:

i. A forum for CSOs to assemble, exchange opinions, and encourage each other - based on the word's meaning as "an open space."

ii. Multiplier effect expected to be made by technological exchanges between first-class venders and CSOs and the rapid spread of the concept of the project - a meaning based on the word's meaning as "multiplication of a number."

 

1. Purpose

(1) Environmental arrangements to support corporate managers in charge of business strategy in the process of decision-making in order to restore the competitive edge of Japanese companies (especially small and medium-size companies).

(2) Fostering of capable engineers who can design and develop IT systems that contribute to the restoration of Japanese companies' competitive edge.

 

2. Background

(1) There is an urgent necessity to restore the competitiveness of Japanese industries.

(2) The restoration of competitiveness should be achieved by the reform of business operation processes of companies and their affiliated companies, structural reorganization, reform of ways of utilizing information, and development of new businesses. Information technology (IT) is expected to facilitate the actualization of these steps.

*Investment in information technology, with the aim of materializing business strategy, is defined here as "strategic computerization investment."

(3) Successful companies are using IT strategically. On the other hand, there are many companies that cannot make large investments in IT even though they are vaguely aware of the importance of IT.

(4) From the viewpoint of corporate managers in charge of business strategy, there are the following problems.

i. Due to the rapid development of IT, it is difficult to employ staff who can keep up with the technology (especially for small and medium-size companies).

ii. Impossibility of assessing the situation of their own company and of comparing it with other companies.

iii. Lack of information in order to evaluate IT venders objectively.

iv. Absence of opportunities to exchange information and opinions with their counterparts in other companies.

v. Lack of outside human resources that can give IT-related support to small and medium-size companies at the stage of consultation.

(5) From the viewpoint of the management of IT vender companies, there are the following problems.

i. Hiring and fostering human resources is the largest investment for IT venders. However, there is all but no opportunity to demonstrate their expertise directly to the top management of users.

ii. Accordingly, investment in human resources is very high-risk. In addition, since IT venders receive other commissions to develop system programs from users, the management cannot risk the investment.


3. Outline of SSP

[Measures to support corporate managers (*) in charge of business strategy]

*Here, corporate managers in charge of business strategy are called CSO (chief strategic officers) and are distinguished from CIOs.

(1) All the information that is needed in the process of a CSO's decision-making about investment in information technology should be provided through the Internet, so that anyone can tap into the information (virtual resource center).

i. Information to compare the various services offered by all IT vender companies.

ii. Information to compare similar kinds of software products from the users' viewpoint.

iii. Case studies of successful and unsuccessful examples of investment in information technology

iv. Other relevant information

(2) Establishment of a members-only community of CSOs nationwide on the Internet (virtual community)

i. Each member can consult advisory IT venders about their problems, by e-mail. At least the first consultation of each member will be provided free of charge.

ii. Members can exchange information and opinions through the Internet without revealing their names.

iii. Others

(3) Nationwide promotion of regular meetings of CSOs

i. Organized by top-level IT consultants, regular meetings (every two months or so) should be held, with fewer than 20 CSOs attending.

ii. Arrangements to create a relaxed, inspiring, and encouraging atmosphere. (Similar forums organized by CEOs and CIOs are held frequently in the US and are very successful.)

Relevant officials of the central and local governments and public organizations should visit each company to inform CSOs of the necessity of investment in information technology, and recommend that they participate in the above-mentioned measures.

[Measures to foster IT venders]

(1) Fostering of "IT coordinators," who - unlike those doing only consultative activities - should take charge of the entire process of proposing IT-based business strategy, ranging from the design to the operation of IT systems, including the reform of business operations.

(2) Establishment of a new qualification system to evaluate practical IT-related work experience in addition to reform of the present qualification tests of data processing specialists.

(3) Industry groups of IT venders are expected to promote the fostering of the above-mentioned first-rate human resources, with the support of the Ministry of International Trade and Industry.

The Ministry of International Trade and Industry plans to promote this project as a private business based on cooperation between the government and the private sector.

 


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