Nikkei xTECH examines the current state of the “2025 Cliff” identified as a threat by the Ministry of Economy, Trade and Industry’s 2018 DX Report, in a 5-part series. The series asks whether the cliff has been overcome amid new factors, including the rapid spread of generative AI.
The DX Report published by the Ministry of Economy, Trade and Industry in 2018 warned that the aging, increasing complexity and black-boxing of companies’ core systems would hinder investment in digital transformation while increasing maintenance costs and security risks. Now that 2025 has passed, this article examines whether Japanese companies’ information systems have transitioned to the other side of the cliff.
In a 5-part series titled “Examining the 2025 Cliff,” the author explores the view that the essence of the challenges posed by legacy systems lies not in the cliff itself, but in the organizational and market structures that created it. The series also addresses the impact of the rapid spread of generative AI as a new challenge affecting companies’ IT strategies.
While introducing the content of other installments, including Episodes 4 and 5, the series provides an overview of the relationship between Japanese user companies and IT vendors, as well as examples of companies that crossed the cliff and cases where they failed to do so. This organizes the current situation and challenges involved in advancing digital transformation and encourages discussion of its future prospects.