Nakano-ku, Tokyo Models Successful Digital Transformation for Japanese Governments Using ABBYY Intelligent Automation; Reduces Workload and Costs by Up to 30%

The Tokyo district uses ABBYY IDP technology to streamline resident tax collection and expedite payments

Tokyo’s district Nakano-ku has achieved a 30% reduction in work volume and a 25% reduction in outsourcing costs by using ABBYY intelligent document processing solutions to digitally transform its resident tax collection process. The solution was jointly developed with Kyoto Information Processing Service Co., Ltd. and Toppan Forms Co., Ltd. and serves as a ready-to-use solution extendable across Japanese governments nationwide to improve business processes and citizen services.

The solution automated and improved resident tax collection opperations by combining Business Process Management (BPM) methods with intelligent document processing (IDP) solutions to extract data from more than 100 different handwritten and printed paper forms in various sizes and shapes– a process that had previously been done manually.

Notice of special collection and payment of representative forms (left) and account transfer request form (right).

”Our intelligent automation solution serves as a model to completely transform and improve the way Japanese governments process resident tax collections and any other number of citizen services,“ commented Mariko Maeda, President of ABBYY Japan. Japan has talked about digital transformation for more than two years, we have a ready-built solution that has proven value for processing handwritten notes and a roadmap to eliminate reliance on paper forms and improve efficiencies.“

Japanese local governments nationwide use private companies to send notices, collect, and process tax payments. The tax rates differ and the structuce of incoming documents from financial institutions vary depending on each financial institution. Additionally, since there is no standard format, registration data is created in the system of every single district differently.

Furthermore, the forms required to apply for direct debit and for receiving the refund are handwritten. Adding more complexity to the process, as preliminary preparation for data entry, a data layer for registration in the core system converts the names of financial institutions, branches, etc. into codes and supplements them to the form one by one. Each form is registered in the core system and checked by the district staff. The labor-intensive work is then inputted manually by an external specialist. This process is no longer sustainable due to recent decreases in the labor force and as wage increases became a challenge.

Value Achieved with Intelligent Automation

The joint solution achieves many benefits for Nakano-ku that is repeatable and scaleable across other business processes and government agencies:

1. A streamlined, repeatable and automated process for resident tax processing was developed.
2. Intelligent document processing solutions accurately recognize and process all kinds of forms, including handwriting- and atypical typographics allowing a one-stop operation for local government employees.
3. Improved operational efficiency by reducing costs by 25%.
4. Solution is compatible with LGWAN (Integrated Administrative Network) and available in the cloud or can be built on-premise for a high-security environment.

Hideki Soeda, President and CEO of Toppan Forms Co., Ltd, commented, “With this solution, we were able to realize digital transformation in local government operations and it can be used as a reference by other local governments. We look forward to working with governments nationwide to support their digital transformation.“

For more information about ABBYY intelligent document processing solutions, visit www.abbyy.com.