Fujitsu's true vision that can be seen in the new medium-term plan from 2023 - Japan NEWS

　Fujitsu seems to be about to start working on a medium-term management plan (medium-term plan) that will start in FY2023. The current medium-term plan, which declares a transformation into a digital transformation (DX) company, redefines the roles and responsibilities of sales and system engineers (SEs), and achieves net sales of 3.5 trillion in core business technology solutions in FY2022. Those that achieve targets such as yen and 10% operating margin. President Takahito Tokita and others will transform the company into the true form they are aiming for, which is the measure of the new medium-term plan.

　The current medium-term plan from 2020 tackled service delivery and frontline transformation. One of them was the repeated reorganization and integration of SE companies, which had been established in each prefecture, and on October 1, they were consolidated into the Japan Global Gateway (JGG), which spans both Fujitsu and Fujitsu Japan (FJJ) organizations. matter. The number of employees is about 7,000, and it is an in-house production organization that integrates everything from development to operation. Vice President Hidenori Furuta said in February 2021, "One of the measures to change the way the system integration (SI) business should be," revealing the endless reform of the domestic multi-contracting structure. In other words, get out of the man-month business and switch to a business where you get paid for the value of the services you provide.

　FJJ will be the one to realize that business model as soon as possible. The company's predecessor, Fujitsu Business Systems, has developed system sales for medium-sized companies, and has prepared packaged software including its own. Convert them to SaaS and provide them as solutions on clouds such as Microsoft Azure and Amazon Web Services (AWS). So to speak, it will be "IaaS free" and integrate the things on top of it. FJJ's territory will expand from medium-sized companies to local governments, medical institutions, and educational institutions, and will promote cloud business using SaaS.

On the other hand, it is difficult to apply ready-made products such as SaaS to large companies, which are Fujitsu's main customers. Someday they would like to develop a business like FJJ, but right now they are at the stage of inspecting the internal organization and roles and identifying issues. That is "Fujitora". It is called a DX project to transform Fujitsu itself, but to put it simply, it is a grassroots movement that is expected to share and change operations, processes, systems, etc. that are "strange".

　In order to do so, we will create a system to collect the opinions of about 120,000 employees around the world in real time, and first unify the disparate negotiation progress management (pipeline) in each country. Not only overseas, but also domestic business divisions and domestic subsidiaries should be viewed with the same granularity. We have just created a plan for standardizing these business processes. Among them, in-house systems and complicated paperwork can become barriers in expanding the global market. In order to solve these problems, projects such as "One ERP", which makes the entire group into one integrated core business system (ERP), and "One CRM", which is a business negotiation management system platform, have also been launched.

In addition, Fujitsu has integrated front sales and delivery SE into an organization, with roles such as account general manager in charge of major customers, DX business consultant to promote customer DX, delivery with specialized technology, etc. Redefine and educate SE & pre-sales engineers in charge, professional consultants with various qualifications, etc.

　One of the models they are aiming for is probably Accenture. It is an IT service that provides everything from management consulting to business reform, system construction, and operation, and in the fiscal year ending August 2021, it will have sales of 50.5 billion dollars and an operating margin of 15.1%, surpassing Fujitsu. Accenture's business model with global operations seems attractive.

But how do you plan to differentiate yourself? There are things that Fujitsu has that Accenture does not. One is hardware. In particular, high-performance computing (HPC) such as the supercomputer Fugaku, quantum computers, large-scale parallel processing technology, and equipment related to the 5th generation mobile communication system (5G), etc., can process large amounts of data. It will be able to meet the needs of the application power and network. These will probably be provided as solutions and services rather than as single units in partnership with cloud vendors.

　There are hardware that can be made without Fujitsu. For example, what do you do with it on x86 servers, storage, etc.? Conversely, what other companies cannot easily produce is the mainframe, which has supported Fujitsu's earnings to date. There are many users not only in Japan, but also in Germany, Australia, Spain, etc., but we will probably come to a conclusion in 2022.

In July 2021, Mr. Vivek Mahajan from IBM assumed the position of Chief Technology Officer (CTO) overseeing such next-generation technology, replacing Vice President Furuta. Invited as Senior Managing Executive Officer, he also has experience in charge of infrastructure services at IBM Japan. We also need to pay attention to what technology we focus on.

　The other is that we have many partner companies for system construction and hardware sales. Accenture is completely in-house, but Fujitsu positioned about 150 partner companies for system development called "FSA" as important partners. However, the relationship crumbles when JGG goes into operation. Going forward, Fujitsu will likely ask its subcontractors to provide technologies, skills, and solutions that they are good at, rather than providing engineers or subcontracting outsourced development. For system sales companies, it will be an important key to maintaining relationships with local customers such as local governments. For sales companies, Fujitsu may not have the same attractive system as before, but they still sell their own solutions and Fujitsu's solutions for local governments as a set.

　Fujitsu will finish rebuilding its organizational structure, product system, and relationships with cooperating companies by the end of FY2022, and will enter the final stage of transformation to the image it envisioned from FY2023.