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6Fujitsu Limited
I think that IT investment in Japan is generally on a recovery trend, particu-
larly in the industrial, retail and financial services sectors. It is important
that we tap into this trend, but I also want to build an earnings structure
that is resilient to external factors. Specifically, we will work to raise profit-
ability in our systems integration business, which accounts for around 60%
of our services business in Japan, and to increase the ratio of high-margin
packaged services and operational services in our services business by mak-
ing new proposals to clients. Through these and other measures, we will strive to increase profit margins
across our services business.
In systems integration, we will continue to bolster our project management capabilities. In recent
years we have had to tackle the issue of loss-generating projects. Compared to the previous two years we
have been able to achieve a marked reduction in such projects by reinforcing our systems integration
assurance capabilities to ensure rigorous project risk management. Other initiatives have included
쎱 How do you plan to grow the services business in Japan going forward?
processes, and enhancing productivity in software development. Profits generated through these reforms
are then reinvested in design and development to create a virtuous cycle. In this way, we are striving to be an
invaluable partner to customers. Based on this thinking, we have sought to transform our whole approach
to how we do business, and backed this up with structural reforms. In fiscal 2006 we plan to complete the
challenges we set forth in this medium-term vision, striving to realize further business expansion by focus-
ing on aggressively developing our business outside Japan, creating new businesses and other measures.
Focus on basics: Customer-centric perspective/speed/timely delivery/quality/cost
Reinvigorate product-related business units: Renew focus on technology
Reenergize manufacturing: Toyota Production System reforms to manufacturing and personnel development
Team-building measures: Overhaul management by objective system
FY2006FY2001 FY2002 FY2003 FY2004 FY2005
Share sense of urgency
Focus on realities of front lines
Promote information disclosure
Jan. 2004:
Medium-term objectives set
Jun. 2004:
The FUJITSU Way
revised
Expand Business
Enhance efforts in overseas
and SME markets
Create new businesses
Cultivate new and existing customers
Reform
Structure
Integrate sales and SE teams
Reorganize/merge affiliates
Focus on logic LSI in Electronic Devices business
Reform Approach & Actions
■ Initiatives to Date