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Messages from Keidanren Executives and Contributed articles to Keidanren Journals March, 2015 In anticipation of the start of the My Number System

Haruo MURASE Vice Chairman of the Board of Councillors, Keidanren
Chairman, Canon Marketing Japan Inc.

There is now less than a year before the launch of the Social Security and Tax Number System. After numerous twists and turns, the bills for the Act on the Use of Numbers to Identify a Specific Individual in the Administrative Procedure and other related laws were finally passed during the ordinary National Diet session in May 2013. Since then, this system has been discussed from various angles. These discussions have focused on numerous points, such as the objectives of the system, the means for achieving these objectives, the beneficiaries of the system and its merits, its effectiveness in light of the large amount of tax money invested, privacy protection, and the decision-making process in these matters. Some argue that the more important issue is the general lack of awareness among the public, rather than the question of whether to condone or oppose the system. Accordingly, they feel there is a need to promote greater understanding.

As I watch this debate unfold, one similar thing comes to mind: the nature of the process in making the switch to information technology within the corporate sector. Looking back, I remember issues that required a huge amount of investment, such as responding to the Y2K issue and complying with consolidated accounting, the International Financial Reporting Standards and other global standards. There are similar issues that still need to be addressed. We have seen major technological progress in the fields of financial accounting and marketing, such as customer relationship management (CRM) and social networking services (SNS).

I will not hesitate to say that information technologies were "patchy" at best before the wave of cloud computing. In the early days of IT, actual operations were patchy, and IT systems needed to follow suit in order to support them. Essentially, what was required was a process that began with restructuring the workflow. This represented a kind of a business process reengineering (BPR). Today, one of the main trends is the shift to cloud services and open systems, and thus the introduction of IT together with BPR holds the key to determining the quality of productivity and value offered.

As I consider the future of the number system in light of these comparisons, it would probably be best to use the remaining time to discuss what kind of social system best serves the benefits of the public and helps to improve the productivity of society as a whole, as well as the roadmap for creating this system. Naturally these discussions will not come to a close in January 2016. If any problems occur after the system is launched, it is perfectly fine to modify it. A better system is built upon the wisdom of the public and the accumulation of persistent efforts. I sincerely hope the government and policymakers will make public interest the top priority within the system design process. We, as corporations, have a duty to work earnestly to facilitate this process.

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