DGI2024 Report (2): Japanese NPOs Need More Support to Use Technology InsightsEssays: Civil Society in Japan

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Posted on September 17, 2024

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Japanese NPOs Need More Support to Use Technology: New report on Asia’s social sector finds that Japan’s NPOs are struggling to keep up with rapid technological changes

 

 

Japan is globally renowned for being at the cutting edge of science and technology. However, the Doing Good Index 2024 finds that the Japanese social sector is being held back by gaps in technology adoption and use.

Technology is reshaping every conceivable aspect of business, society, communications and everyday life, and the social sector has not been immune to these changes. In recent decades, NPOs across Japan have adopted new technological tools to enable them to undertake the important work they do. More recently, the Covid-19 pandemic accelerated the shift to digital ways of working, with video conferences replacing in-person meetings, virtual documents replacing printed materials and, in some cases, entire business models pivoting to digital service delivery.

However, not all organizations have been successful in making this transition, and many are being left behind as the sector – and the world at large – moves rapidly towards a tech-first approach to getting things done.

 

NPO progress on digitalization

While access to the internet – a key criterion for digitalization – is relatively easy for Japanese NPOs (86% of those surveyed say their organization has sufficient internet connectivity), just 59% say they have sufficient access to digital devices such as computers and tablets for their staff. This is below the Asian average (69%). Furthermore, while 99% of NPOs in Japan say their organization uses basic software (such as Microsoft Office), fewer (70%) use operational software such as customer management, accounting and project management tools. An even smaller number of NPOs (37%) use advanced software, such as tools used for editing photos and videos, or analyzing data. 

Of course, this would not be an issue if NPOs had no need to use digital tools. However, 54% of NPOs say they have increased their organization’s use of digital technology in the last two years, 57% say they have increased the incorporation of technology in day-to-day operations, and 50% are more likely to be using online platforms to collaborate with others.

Hosting online events is also on the rise – spurred in part due to the pandemic – with 58% of NPOs saying they have increased this in the last two years. 51% of NPOs have increased their use of social media to promote and disseminate their work during the same period.

 

Cyber security

Another challenge for NPOs is cyber security: mitigating the risks that come with the digital age. Just a quarter (25%) of organizations in Japan say they have a cybersecurity plan, lower than the Asian average (30%). This means that three-quarters of organizations are either unprotected from digital threats or have not made staff aware of safeguards in place. This puts not only organizations at risk, but also the communities they serve. NPOs have a responsibility to protect the data of their beneficiaries, donors and staff. Investing in cybersecurity is an important step in achieving this.

More positively, 77% of NPOs say their organization has invested in anti-virus or similar software to protect their devices, the highest rate in Asia. Yet just 15% of NPOs have invested in staff training around cyber security and attack mitigation. What use are cyber security tools and measures if nobody knows how to use them effectively?

 

How NPOs can upgrade their digital capabilities

When asked what their organization’s top needs were in terms of digital technology, new hardware, improving their website, and training and upskilling staff were identified as the top needs.

 

This begs the question, what is holding NPOs back from embracing digital technology? According to the Doing Good Index, the main reason – highlighted by 70% of NPOs, the highest rate in Asia – is the lack of sufficient skills among staff to implement these technologies. This is followed by a lack of funding (67%) and a lack of awareness of available digital technology and tools (47%).

All stakeholders have a role to play in supporting NPOs to adopt digital technologies. Governments can provide direct funding – through grants and procurement of goods and services – to give NPOs the financial resources needed to invest in their own development. Individual donors, philanthropists and foundations can support NPOs by providing flexible funding, or donations that can be used for capacity-building within NPOs. While donors generally want to see their donations go directly to programs that help beneficiaries, investing in NPOs themselves is a force multiplier, allowing organizations to more efficiently and effectively serve communities in need.

The private sector, in addition to providing funding, can lend expertise and technical assistance to support NPOs’ digitalization, and donate products such as computers, tablets and other hardware to NPOs with insufficient supply. For example,

Finally, NPOs must look to how they can support each other on the road to digitalization. By sharing best practices and common challenges, and working together to find solutions, the sector as a whole can become better equipped to deliver social services in the 21^st Century.

 

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Text by Stephanie Chiang (Research Analyst, Centre for Asian Philanthropy and Society (CAPS))
Stephanie works within CAPS’ research team to deliver evidence-based insights into Asia’s social sectors. Prior to joining CAPS, she has worked across the public, private and social sectors in Australia and Japan, including as a journalist at the Sydney bureau of the The Asahi Shimbun.

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