Fujitsu : Strengthens Organization to Expand its Digital Business and Presence in Global Markets

Fujitsu Limited today announced it will strengthen its organization as it seeks to expand its digital business and global sales - areas of anticipated growth. To do this, the company will on November 1 conduct absorption-type mergers of its three major systems-engineering subsidiaries in Japan - Fujitsu Systems East Limited, Fujitsu Systems West Limited, and Fujitsu Mission Critical Systems Limited - and through to March 31, 2018, will take a phased approach to bolster the structure of its Global Services Integration Business.

By enhancing its organizational structure, the Fujitsu Group is evolving into a global services integrator focused on technology solutions, aiming to expand the earnings capacity of its core business, while growing with its customers in the digital society.

Background and Objectives

The environment surrounding the ICT business is facing a major turning point due to the evolution of technology and other factors. While keeping pace with these changes, Fujitsu is concentrating its management resources in technology solutions, and strengthening its organizational structure to expand its digital business and global sales.

In April 2016, Fujitsu established its Digital Services Business, which brought together all of the businesses relating to the core technology areas of digital innovation, such as the cloud, artificial intelligence (AI), and the Internet-of-Things (IoT).

Fujitsu is now set to strengthen its Global Services Integration Business, and as a first step, the company will on November 1 conduct absorption-type mergers of its three major systems-engineering subsidiaries in Japan so as to build a robust foundation in line with its shift to a new structure. Upon having executed this initiative, Fujitsu will create an organization of some 3,000 specialists who will work on the frontline of new businesses that are driven by such digital technologies as AI and IoT. This organization, separate from Fujitsu's existing delivery framework, will be dedicated to directly promoting to customers digital services delivery, and together with the supporting middleware, as well as a Service Technology Headquarters which will collaborate with the Digital Service and Service Platform divisions, and Fujitsu Laboratories. Furthermore, the global business promotion functions of these subsidiaries will also be consolidated.

In addition, based on its experience in supporting customers to date, as well as the issues facing customers and the value and technologies it delivers, Fujitsu will remodel its existing structure, which is currently organized by industry and geographic region, into three new large-scale organizations. Specifically, these will be comprised of a State Infrastructure and Finance Business, where it will be critical to have superior reliability and quality, a Public Services Business, where efficiency and service speed will be vital, and a Private Enterprise Business, in which growth, both global and digital, is key. By March 31, 2018, these will have strengthened Fujitsu's organization for new digital business and accelerated its global expansion.

* For details, please see 'Notice of Agreement for Mergers through Absorption (Short-Form Mergers) of Consolidated Subsidiaries of Fujitsu Limited (PDF: 88.4 KB).'

Aims of the Absorption-Type Mergers

By bringing together 14,000 system engineers who have the role of leading customers' transformation, Fujitsu intends to strengthen the bonds of industry and operational knowhow that had been distributed throughout these companies, consolidate technologies, and other efforts that work to significantly expand the breadth of such knowledge and capabilities. With these companies having been unified into one, together with the construction of a frontline framework that customers will find easy to understand, Fujitsu will have bolstered its digital business development and global delivery capabilities. Moreover, efforts such as bundling together the current structure of industry and geographic region will enable the optimum positioning of human resources with the flexibility to adapt to changes that occur throughout the world. As a result, Fujitsu will accelerate the execution of its integration concept, FUJITSU Knowledge Integration.

Overview of the Companies Being Absorbed