NTT DATA Groups New MidTerm Management Plan
Nov 4, 2016
NTT DATA Corporation
NTT DATA Corporation has finalized its “New Mid-Term Management Plan (FY 2016-2018)”, which puts the next three years in perspective by taking into consideration its business environment and challenges.
Business environment and pertinent issues
NTT DATA Group has expanded business in the global market, increased its coverage to 185 cities across 45 countries/regions, and thus established a global business foundation. However, our local market presence remains limited, with the exception of Japan, Germany, Spain and Italy. Therefore, in order to continue our growth in the steadily expanding global market, we need to strengthen our local presence and be recognized as a global brand by clients all over the world. To this end, our Group defined a goal as the “Global 2nd Stage” where it aimed by around 2020 to be recognized as a global brand that would achieve estimated consolidated sales of more than 2 trillion yen, with 50% of sales coming from outside Japan.
Furthermore, the advent of a wave of digitalization driven by accelerating technological progress has led to a growing need to expand existing businesses and to create new markets. Therefore, we intend to actively promote innovative technologies in the digital age as well as breakthrough technology in order to enhance our ability of providing value in new markets.
New Mid-Term Management Plan
Given the circumstances above and the effects of the recent large acquisition, our Group has defined the timing for reaching the Global 2nd Stage to be at or before the end of FY 2018, and has developed the three-year New Mid-Term Management Plan between FY 2016 (the year ending in March 2017) and FY 2018 (the year ending in March 2019) as follows:
With the key phrase, NTT DATA: ASCEND (Rise and grow our global brand), NTT DATA Group aims to grow its value as a global brand by strengthening local presence through business growth all over the world.
Solid results have been delivered with regards to Game-changing Approach to grow our share in existing businesses by anticipating trends in markets and technological innovations and to win new markets by staying proactive to clients’ needs; we have successfully entered Energy and utility sector, developed omni-channel systems and expanded digital archive businesses to name a few.
We will continuously harness accelerated changes in markets and technological innovations as opportunities to accelerate growth of our share in existing markets and win new markets in order to strengthen our local presence. Furthermore, we will endeavor to increase competitiveness in every region by enhancing solutions/services and increasing our ability to undertake global projects through synergies across operating companies around the world.
We will promote innovative technologies to help enhance core competencies of our clients, who are facing dramatically changing business environment, by combining our existing technologies with the latest technologies fit for the digital era in order to deliver solutions with agility and flexibility.
In order to respond to the growing needs of our clients for utilizing IT more strategically, we will always strive to apply cutting-edge technology by increasing our technical capabilities in the digital domain at a global level and partnering with players with highly competitive technological capabilities. At the same time, we will aim to co-innovate with our clients by applying advanced technologies to create new mechanisms and value.
Mid-Term Management goals
We will strive for further business growth to achieve the Global 2nd Stage by promoting active investments in new fields to adapt to changes happening in the digital society as well as by driving value creation with Game-changing Approach and Breakthrough Technology.
|Net Sales||More than 2 trillion yen|
|Operating Income||Increase of 50%*|
- *Compared to FY2015 (after adjustment for incremental investments in new areas)
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NTT DATA Corporation
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