How XBRL Transformed Fujitsu's IT Platformarchive.xbrl.org/18th/sites/18thconference.xbrl.org/files/hanaoka.pdf · How XBRL Transformed Fujitsu's IT Platform Oct. 15th 2008 HANAOKA

1

How XBRL Transformed

Fujitsu's IT Platform

Oct. 15th

2008

HANAOKA Kazuhiko

Corporate Vice President

FUJITSU Limited

18th XBRL International Conference

Fujitsu Group (FY2007)

2

Net Sales: US$ 34.1B

Employees: 100,000

Group Companies: 130

Net Sales: US$ 5.2B

Employees: 10,000

Group Companies: 50

Net Sales: US$ 8.4B

Employees: 24,000


Net Sales: US$ 5.6B

Employees: 33,000


EMEA

APAC & China

Japan

The Americas

Consolidated Net Sales: US$ 53.3billion

No. of Employees, Worldwide: 167,000

Consolidated Subsidiaries: 430 companies (47 Countries)

© FUJITSU Limited 2008

• System Platforms- System Products - Network Products

• Services- Solutions - Systems Integration- Infrastructure Service

• Others

Business Composition

© FUJITSU Limited 2008 3

¥3,158 billion(US$ 31.5 billion)

¥1,056billion(US$ 10.5 billion)

¥736 billion(US$ 7.3 billion)

¥378 billion(US$ 3.7 billion)

• LSI Devices• Electronic Components• Others

• PCs/Mobile Phones• Hard Disk Drives• Others

9.0%

13.8%

20.6%

56.6%

Device Solutions

Other Operations

Ubiquitous Product Solutions

Technology Solutions

FY 2007 Revenue by Business Segment

Consolidated Net Sales by Business Segment, Including Intersegment Sales

Fujitsu’s XBRL related activities

XBRL specification development

Served as a chairman of a working group for basic specification

development

Development of the latest specifications and best practices

Provision of tools and support for

consortium activities

Participation to XBRL consortium and pilot projects in various regions

XBRL solutions for early adopter

customers

Preparation of XBRL-based financial reports in public institutions

Middleware for XBRL processing: Interstage XWand


Internal control

(JSOX)

SecurityEnvironmentalprotection/regulations

Changes in the Environment

of Global Business Management


Continuousbusinessoperation

Corporate Management

Early financialresults announcement,

Quarterly disclosure

IFRS,

ISA

BC (Business Continuity),DR (Disaster Recovery), etc.

Basic Environment Law,

Law on Promoting Green Purchasing,

RoHS, etc.

Personal Information Protection Law,ISMS/ISO-27001,

Government’s unified standards, etc.

Aiming to realize IFRS-based

business management

Standardization of the entire group’s accounting

rules

Development of unified accounting standards, policies, and administration

standards for all group companies including overseas subsidiaries

Fair value basis

Strict evaluation and write-down of assets (fixed assets, affiliated company

stocks, etc.)

Evaluation of inventory assets based on the lower-of-cost-or-market method

Matching principle between expenses and

revenues

Immediate provision for losses and write-down of assets

Depreciation and evaluation of assets reflecting actual business situation

(payback period, etc.)

6© FUJITSU Limited 2008

Prerequisites for IFRS-based

business management

Standardization of the entire group’s accounting

rules

Development of globally-shared business management infrastructure

Visualization and standardization of business processes

Internal control cannot be secured without standardization of the entire

group’s accounting rules

Fair value basis, Matching principle between

expenses and revenues

Agile and proper management through business and asset risk visualization

Realization of an appropriate level of revenue in return for costs


Issues

in Fujitsu’s corporate IT system

Fujitsu developed individually optimized systems,

in accordance with business growth and focus

themes, on a case-by-case basis.

The latest “Cutting-edge technologies” were

applied to the individual system development.

Many systems were dispersed without TCO

visibility and system owners.


Management-IT integration

in practice

Enhance IT investment management

Visualization of investment (central control of investment)

Define and thoroughly implement IT

policies

Unification of system architecture

Unification of development framework

SOA-based business system modeling

Security & disaster counter measures

Full-scale implementation of overall IT

control (J-SOX)


Largest issue – FOCS


Overseas operation systems

Contract systems

Information systems

Factory & procurement

systems

1269 system interfaces, 400 forms and 1 million product code masters

Began operation in 19846Mstep COBOL (mainframe)69 directly related systems

SUMMIT/JUST

FOCS

Challenges toward technologies

for FOCS reconstruction

Mix of massive application assets (ERP/PKG/bespoke)

Difficult to design and maintain integrated DB

Difficult to rebuild system with“big-bang” approach

Technology advancement (hardware/software), XML technology implementation, standardization

Realizing a “visible”, “connectable” and “adaptive” systemCurre

nt sy

stem

SOA-based system development

Business activity record(data control and utilization)

New system development approach


Starting point for discussions

Most of core business processes are

systemized.

Current system goes through correct

transactions.

Every transaction has “IN” and “OUT”.

All business activities can be recorded as

data that can be utilized freely (Fact data)


Base Concept for FOCS Reconstruction

- Designing concept for SUMMIT -

Opposite Direction from SAPSUMMIT

Sales ordering system

Procurement system

Production system

Maintenance/Contract system

Asset mgmt system

Sta

nd

ard

inte

rface

Pe

rfect a

uto

ma

tic

logic

al J

ou

rna

liza

tion

Acco

un

ting

syste

m

•Automatic journalization by business codes

•Creation of detailed past record database

•SOA based XBRL-GL


Implementation of Business

Process Platform

e-FOCUS GLOVIA/SUMMIT

glovia.com Bespokebusiness application

InterstageService Integrator

CSV-XML conversion, Data

processing, format conversion

Data structure management

��x �� ¼ �Ì �i �Ô �Å �� Ê �»�Ì �¼

01 �V �» �i SEIHIN 2 102 �V ÕÆ Ä�P UNIT1 2 103 �V ��i �P PART1 1 103 �V ��i �Q PART2 2 102 ��j �b�g�Q UNIT2 5 102 ��j �b�g�R UNIT3 5 102 �V ÕÆ Ä�S UNIT4 1 103 �V ��i �R PART3 1 103 �V ��i �S PART4 2 102 �v ��g�Â PCB�P 1 1�E �E �E �E �E�E �E �E �E �E

XML

Business Activity Recorder

��x �� ¼ �Ì �i �Ô �Å �� Ê �»�Ì �¼


XML��x �� ¼ �Ì �i �Ô �Å �� Ê �»�Ì �¼


XML��x �� ¼ �Ì �i �Ô �Å �� Ê �»�Ì �¼


XML

SAP CRM

��x �� ¼ �Ì �i �Ô �Å �� Ê �»�Ì �¼


XML

OracleCDH

��x �� ¼ �Ì �i �Ô �Å �� Ê �»�Ì �¼


XML

Collecting business activity record

Bespokebusinessapplication(mainframe)��x �� ¼ �Ì �i �Ô �Å �� Ê �»�Ì �¼


Legacy

JCA adaptor

Business process record

System log output

Business activity record

Data filtering

Business activity recording service


Purpose of developing XML Ledger

Separation of data and processing

XML LedgerNew data

• Record all new

data in

chronological order

• Add new data

rather than deleting

or updating

existing data

Salesdata

Accountingdata

Procurementdata

Manufacturingdata

Inventorydata

Selection Processing


Recording Business activities on

the XML Business Activity Recorder

Business activity data

Keeps history information (on a detailed level)

Adding new data rather than updating existing data

Stores data comprehensively

All data is available on the recorder

New items can be added easily

XML-based flexible data structure

XML Business Activity Recorder

Account

receivableSales Accounting

Analysis/Visualization

on a detailed level

Service bus: Automatic data collection, XML tags, time stamps

Information service

Audit support service

XBRL-GL© FUJITSU Limited 2008 16

Fujitsu will …

Situate IT as the enabler for the

transformation of Business process,

Corporate rhythm, Business model, and

eventually the Corporate management.

Utilize XML, XBRL, etc. for internal

standardization

Provide customers with values that

Fujitsu has achieved as an early adopter.



Documents

How XBRL Transformed Fujitsu's IT Platformarchive.xbrl.org/18th/sites/18thconference.xbrl.org/files/hanaoka.pdf · How XBRL Transformed Fujitsu's IT Platform Oct. 15th 2008 HANAOKA