Explanatory Meeting on Digital Transformation Stock Selection (Tentative Name) to be Held
The Competitive IT Strategy Company Stock Selection program to become a new initiative
January 6, 2020
The Ministry of Economy, Trade and Industry (METI) and the Tokyo Stock Exchange (TSE) jointly held five series of the Competitive IT Strategy Company Stock Selection program, as one of the efforts for encouraging companies to strategically invest in the field of IT to contribute to the improvement of corporate value and to the enhancement of competitiveness in the mid- to long-term.
In light of the recent trend of digital transformation (DX) appearing worldwide, a digital shift that, on the premise of using digital technologies, dramatically changes business models and other conventional methods and leads the outcomes to new growth and enhanced competitiveness, METI and the TSE, in the 2020 program, will focus on DX and make an overall revision of the criteria for selecting the stocks of outstanding companies under the program. In line with this, they will change the current title of the program, i.e., “Competitive IT Strategy Company Stock Selection program,” to a new one.
As an effort prior to starting the process for selecting the stocks of outstanding companies under the 2020 program, on February 4, 2020, METI and the TSE will hold an explanatory meeting at the TSE on the selection method and other information concerning the 2020 program. We are looking forward to seeing you there.
1. Outline of the Competitive IT Strategy Company Stock Selection program
Rapid advances in IT are transforming industrial structures and business models at an unprecedented pace. For Japanese companies to succeed in international competition amid this environment, it is vital to take a mid- to long-term standpoint for business management and, from this standpoint, to carry out strategic and proactive efforts contributing to improving corporate value and enhancing competitiveness and to invest in the field of IT for achieving these efforts.
Against this backdrop, since 2015, METI and the TSE have jointly been selecting outstanding companies that have been conducting a competitive IT strategy as “competitive IT strategy companies” out of TSE-listed companies, and they have been introducing such selected companies as attractive companies to investors who put emphasis on improving corporate value in the mid- to long-term. Through this program, METI and the TSE have been accelerating efforts for encouraging companies to proactively invest in the field of IT.
- Reference: List of the 29 selected companies under the 2019 Competitive IT Strategy Company Stock Selection program (PDF:394KB)
2. Trend of DX
Recently, in accordance with the dissemination of AI, IoT, big data and other digital technologies, the trend of DX has become apparent worldwide, which is a digital shift that, on the premise of using digital technologies, dramatically changes, beyond the conventional ranges in which IT is utilized for business, business models, organizations, practical tasks, corporate cultures, corporate climate and other conventional ideas and leads the outcomes to new growth and enhanced competitiveness in order to achieve creation of customer value.
As companies’ power to address DX is considered intangible assets that influence the mid- to long-term growth of companies, METI and the TSE partially revised the method for selecting outstanding companies in the 2019 Competitive IT Strategy Company Stock Selection program in order to grant high scores to companies engaging in efforts for promoting DX.
Moreover, expecting the full arrival of the new digital era, acceleration of DX is a highly significant challenge for Japanese industries to enhance their competitiveness. As part of its efforts to address this, METI submitted the Bill for the Act on Partial Revision of the Act on Facilitation of Information Processing to the 200th ordinary session of the Diet, held from October 4 to December 9, 2019, and the bill was established on November 29, 2019, following the discussions on it at the Diet. The bill requires the government of Japan to formulate guidelines for presenting to companies ideal approaches to making use of strategic systems in business management and also to recognize companies engaging in outstanding efforts in accordance with the guidelines. The bill is to come into force within a period not exceeding 6 months from the date of promulgation: December 6, 2019.
In light of these actions, METI and the TSE are now advancing discussions supposing that in the 2020 program, they will focus on DX and make an overall revision of the criteria for selecting the stocks of outstanding companies. In line with this, they will change the current title of the program, i.e., “Competitive IT Strategy Company Stock Selection program,” to a new one.
METI and the TSE will publicize the details of the revision at the following explanatory meeting.
3. Explanatory meeting to be held concerning a selection method and other information involving the Digital Transformation Stock Selection program (tentative name; currently, the Competitive IT Strategy Company Stock Selection program)
METI and the TSE will hold an explanatory meeting concerning the 2020 program, including a new method for selecting the stocks of outstanding companies, evaluation viewpoints, and how to answer the response sheets of a questionnaire survey, as follows:
February 4 (Tue.), 2020; from 14:00 to 15:30 (reception counter will open at 13:30)
TSE Hall, second floor of the TSE (2-1 Nihombashi Kabutocho, Chuo-ku, Tokyo)
Please note that the details of the program and other information may change.
- Opening remarks (TSE)
- Explanation on the Digital Transformation Stock Selection program (tentative name; currently, the Competitive IT Strategy Company Stock Selection program) (METI)
- Keynote speech
- Mr. Ito Kunio, Director, CFO Education and Research Center, Hitotsubashi University / Adjunct Professor, Graduate School of Commerce and Management, Hitotsubashi University
- Explanations on how to answer the response sheets of a questionnaire survey and other information
- Questions and answers
How to apply
If you wish to attend the meeting, visit the following TSE website and complete prior registration.
4. Other information
The key points of approaches to selecting the stocks of outstanding companies in the 2020 program will be specifically explained at the meeting and will also be publicized in a press release on the date of the meeting.
Division in Charge
IT Innovation Division, Commerce and Information Policy Bureau