How to Drive Digital Transformation in Japan

In this article, our co-founder Chris Frost shares his perspective on the unique challenges of digital transformation in Japan, especially in the context of talent and organizational culture.

With more than 20 years of experience in global recruitment, supporting industries like e-commerce, digital marketing, and customer experience, Chris has a unique perspective on what makes Japan’s hiring market special, and the challenges companies face when driving digital transformation (DX).

Having built businesses in Japan himself, hired local teams, and supported global companies entering the Japanese market for over seven years, Chris has seen both the opportunities and the roadblocks up close.

Today, we share his insights into the hurdles and possibilities for Japanese companies moving forward with DX.

Why Is Digital Transformation in Japan So Difficult?

One key reason is that while many Japanese business leaders know their organizations inside out, they often have limited hands-on experience in areas such as digital products, UX (user experience), data, and growth strategies.

In Japanese companies, employees typically rotate through multiple departments over long careers, which builds a deep understanding of the entire organization. This is a major strength. But as leaders rise to higher positions, their focus shifts to oversight and management, meaning they often lose touch with what’s happening on the ground. As a result, they’re less directly involved in product development, improving user journeys, testing campaigns, or driving adoption of new tools.

This creates a gap between decision-makers and those working on digital initiatives day to day. It’s not about resistance to change, it’s simply a difference in lived experience.

Some companies try to bridge this gap by hiring younger digital talent and giving them a “manager” title. But without decision-making authority or strong top-level support, these roles rarely have the influence needed to spark real transformation. Change is hard to drive from the middle of a rigid hierarchy.

What can Japan learn from global companies?

In many Western organizations, digital transformation is led by specialists. These are people who build new teams, run experiments, learn from failures, and grow by actually doing. This expertise doesn’t come from meetings, it comes from hands-on, real-world experience.

Building teams that balance tradition and change

Japan doesn’t need to “become Silicon Valley.” Instead, it needs to combine its strengths, deep organizational knowledge, long-term commitment, and strong systems. With digital expertise.

That means:

Empowering people who can work hands-on in the digital space
Bringing in external experts where needed
Encouraging leaders to collaborate with specialists and support bold, new initiatives

The goal is to build teams that respect tradition while moving at the speed of change. For successful digital transformation in Japan, it’s not about breaking existing systems, but about combining traditional organizational strengths with digital expertise.

The bottom line: DX is about people, not just technology

After two decades recruiting digital leaders across Asia and the world, the pattern is clear. Japan doesn’t have to copy anyone, but it does need to trust people who have rolled up their sleeves and built things.

Ultimately, digital transformation in Japan is not a technology problem, it’s a people problem. It starts with listening to the right voices and empowering those with hands-on experience to drive real change.

Cogs is an executive search and recruitment agency specialising in connecting creative-minded individuals with global career opportunities.

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