Issues Requiring Attention
Although the fall in IT investments in Japan is levelling off, it is expected that they will remain restrained. Meanwhile, global IT investments, mainly in emerging markets, are expected to increase. Given that our customers are expanding internationally into the global market, the NTT DATA Group also needs to expand its businesses in worldwide.
In the IT service market in Japan, due to the diversification and sophistication of the needs of society and our customers, there is an increasing demand for services which can be used as necessary without owning a system, as well as services that match the expectations for price reduction and shorter delivery periods. Therefore, the issue that the NTT DATA Group needs to work on is the expansion of diverse IT services that can respond to changes in the market rather than a business structure that depends on system integration.
The NTT DATA Group has rapidly expanded its size through measures such as capital alliances. In order to take advantage of its larger size, we must enhance corporate governance, after which it must promote more efficient utilization of resources and the creation of synergy from the perspective of group-wide optimization.
3 focus fields
Expansion of new fields and reinforcement of product competitiveness
In response to our customers’ expectations of price reduction, the NTT DATA Group will work on broadening solutions to reduce IT costs, such as cloud computing and AMO, while seeking to sophisticate and diversify the services provided in response to the need of customers to apply IT to more advanced and complicated business operations, such as business analytics and core business BPO. In addition, we will aim to upgrade and expand businesses that bring sustainable growth to our revenue by developing new businesses, such as M2M clouds and robotics, and by using its resources in areas with the potential for growth in existing businesses and for increase in the market share.
We will also invest proactively in expanding new businesses and strengthening product competitiveness, through such measures as improvement of software production technology (software development automation) and the R&D of advanced technologies in cooperation with universities and other organizations.
Expansion, enhancement and reinforcement of global business
The NTT DATA Group will aim to cover uncharted areas in order to support customers’ entries into the global market and provide services to overseas markets with growth potential. Moreover, the Global One Team will share our core solutions, such as SAP and telecoms, to further enhance and reinforce global businesses.
Pursuit of overall optimization
The NTT DATA Group will work on improving operational efficiency by leveraging the size of our businesses, which was achieved through the global-level standardization, streamlining, and intensification of business operations, as well as reorganization and consolidation of group companies and organizations. We will promote further growth through resource allocation based on business portfolios which can respond to the rapidly changing environment.
Objectives of the New Medium-Term Management Plan
Global TOP 5
By evolving from a “corporate group focused on domestic large-scale System Intergration business” into a corporate group which provides a wide range of IT services effectively on a global scale, we will provide customers with best-in-class services leveraging scale economy.
Improvement of Corporate Value
By realizing sustainable growth even amid uncertain economic environment through the transformation of business structure to combine investment necessary for business development and further reinforcement of financial foundations, we will improve corporate value.
[FY Ending March 2016]
(versus FY Ended March 2012: 85% up)
- *EPS(earnings per share)
The forecasts in this document are based on current information and may change due to future trends in the Japanese economy or the IT services industry, the introduction of new services, or the development of new technologies. Therefore, the NTT DATA Group cannot guarantee the reliability of these forecasts.