Japanese shipbuilding has long been recognized for the production and on-time delivery of high-quality, innovative ships. Japanese shipyards will continue to remain competitive in an ideal future because of these factors. However, shipbuilding in Japan faces several internal and external challenges that put this future at risk: a generation of highly skilled experts retiring from the workforce, a reliance on institutional knowledge, more competition from abroad, and a demand for new innovative ship types. In addition, Japanese shipbuilders have not evolved their businesses to take advantage of the process enhancements digital technologies support, further adding to the risk of falling behind. This paper defines DX in the context of shipbuilding and examines how Japanese shipbuilders can accelerate DX within their organizations to stay globally competitive for the long term and overcome industry-wide risks. This paper will also offer a starting point for a DX framework that will help the Japanese shipbuilding industry avoid the digital cliff.
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