The New Challenge Brought by Digitalization
Digitalization is advancing in small and medium-sized enterprises (SMEs). However, new problems are emerging behind the scenes. According to a survey by ITmedia, approximately 65% of SMEs operate without a dedicated information systems (IT) department. At the same time, a Keyman’s Net survey found that 84% of companies that have gone digital have experienced “file lost.”
“File lost” refers to the state where you can’t find the file you need. While digitalization has reduced paper documents, data storage locations have become scattered, ironically decreasing work efficiency.
These two pieces of news may seem unrelated at first glance. However, from a management × IT perspective, they are deeply connected. The absence of an IT department leads to file lost, which in turn halves the effectiveness of digitalization.
“Purpose-Less Digitalization” Caused by a Missing IT Department
In companies without an IT department, who manages IT? In many cases, it falls to someone on the front lines as an “extra duty.” The accounting person introduces cloud accounting software, the salesperson chooses a CRM tool, and the general affairs person contracts a file management service. Since each person selects tools convenient for their own tasks, overall consistency is lost.
I call this state “purpose-less digitalization.” Because each department introduces IT tools independently, data storage locations and formats are not unified. The result is file lost.
Even if management believes they are “advancing digitalization,” they may only be fragmenting operations. Unless management defines the purpose of IT, this situation will not improve.
File Lost Signals the Absence of IT in Management
The root cause of file lost is not a tool problem. It is the lack of “rules” for file management. Specifically, the following three elements are missing.
No Storage Rules
Without rules for “which file to store where and under what name,” it’s left to individual discretion. Person A uses cloud storage, Person B uses a local folder, and Person C uses email attachments. This makes finding necessary files time-consuming.
Lack of Naming Conventions
Without rules for including dates or version numbers in file names, files like “final version,” “real final version,” and “revised version” proliferate. It becomes impossible to determine which is correct, creating the risk of working with wrong data.
Incomplete Access Permissions
Without clear rules on who can access which files, security issues arise. Cases include leaving access for former employees or placing confidential information in shared folders.
These problems can be solved with an IT department. However, in companies without one, the problems often go unrecognized, and the burden on front-line staff only increases.
The Digitalization Trap: Going Digital ≠ Efficiency
Many managers tend to think, “If we go digital, our work will become more efficient.” But this is a major misconception. Digitalization is merely a means, not an end. The goal should be “improving work efficiency” or “speeding up decision-making.”
For example, simply converting paper documents to PDF does not improve searchability. Only after converting them to text with OCR (Optical Character Recognition), classifying them into appropriate folders, and tagging them do they become “searchable data.” Designing this entire process is the role of an IT department.
The news about Kobe Digital Lab starting DX support for warehouse operations can be understood in the same context. The goal in warehouses is to improve efficiency in inventory management and picking operations. Simply introducing handheld terminals has limited effect; the entire workflow needs to be redesigned.
To maximize the benefits of digitalization, management must clearly define “what IT is for” and design systems aligned with that purpose.
Three Actions Managers Can Take Right Now
Even SMEs that can’t immediately create an IT department can take action now. Try implementing the following three steps.
Establish File Management Rules
First, set company-wide file management rules. Unify storage locations, establish naming conventions, and define access permissions. These are matters that management should decide top-down. Leaving them to the front lines will only lead to fragmentation again.
Unify Cloud Storage
If you’re using multiple cloud storage services like Google Drive, Dropbox, and OneDrive, consolidate to one. Simply unifying the tool significantly reduces the occurrence of file lost. It’s also often cheaper than contracting multiple services.
Conduct Regular Audits
Once a year, conduct a company-wide file audit. Delete unnecessary files and review storage locations. Doing this regularly can prevent file lost. It’s also a good time to review the rules.
If Management Doesn’t Define IT, Chaos Will Continue
The reality that 65% of SMEs lack an IT department is the result of management avoiding IT. The mindset that “IT should be left to specialists” has created digitalization chaos.
Managers need to reframe IT as a “management resource.” The purpose of IT is to achieve management goals like improving work efficiency and increasing sales. To do this, management itself must define the direction of IT and create mechanisms to execute it.
File lost may seem like a small problem. However, beneath it lies a major structural issue: the absence of IT in management. Why not start by reviewing your company’s file management? That is the first step toward true digitalization.
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