Reviewing sales processes and establishing a system to prevent problems

「For a corporate website renewal project commissioned by a customer, the Company is working to improve project profitability while balancing efficiency and high quality by using multiple generative AI tools across the entire process, including information architecture, content production, visual production and project management.」

「To expand orders, the Company plans to broaden the scope of its services by leveraging its strength in UX (user experience, or customer experience) expertise, accelerate its efforts to become multichannel across digital and physical channels, including stores, and further strengthen collaboration, primarily in sales, with its parent company NTT DATA and NTT DATA Group companies.」

「The company is strengthening measures including visualization of profitability by project and customer and reviews when orders are accepted and when system requirements are defined, to ensure appropriate profitability on commissioned projects.」

「During the fiscal year under review, strengthening project management contained costs such as outsourcing expenses, and profitability improved from the previous fiscal year.」

「During the consolidated fiscal year under review, strengthening project management contained costs such as outsourcing expenses, and profitability improved from the previous fiscal year.」

「Under its Group vision, “Creating the future of business through digital technology and creating the future of business with users,” the Group provides services centered on customer experience (CX) to support the optimization of corporate digital marketing and digital transformation. To achieve its FY2022 medium-term vision of becoming “a company that designs business and society by dramatically transforming people’s experiences,” the Group is pursuing three initiatives: strengthening its customer experience (CX) design capabilities, improving business profitability, and investing in growth areas.」

「The Company recorded operating losses for 3 consecutive fiscal years through the previous fiscal year, primarily because profitability deteriorated as a result of increased development costs due to delivery delays and specification changes. It worked to review its order acceptance decisions and quality control methods and to control outsourcing costs. As a result, the Company eliminated its operating loss, in part because project profit margins improved.」

「Amid this business environment, the Group implemented measures including strengthening its services, improving project profitability by controlling discounts and strengthening project management, strengthening human resources and the organization through enhanced on-the-job training and leadership training, and improving productivity by enhancing employees’ work-life balance. These initiatives are improving project profitability, but measures such as stronger order risk management, a review of transactions with unprofitable customers and more detailed project planning have caused orders to stagnate in the short term.」

「As in the previous fiscal year, the Company implemented measures including strengthening project management to eliminate loss-making projects and improve project profitability, as well as controlling outsourcing costs.」

「Amid this business environment, the Group continued implementing measures to improve project profitability from the previous fiscal year, while advancing collaboration with NTT DATA, which had newly become the Company’s parent company. It also carried out management reforms and organizational changes, including the introduction of an executive officer system aimed at speeding up decision-making on business execution, and implemented measures to restore performance. As a result, project profitability improved, but the effect of the sales initiatives took time to emerge, while the operating loss expanded due in part to the reduction of transactions involving large projects at a consolidated subsidiary.」

「The Company implemented measures including thorough internal reviews at the proposal and requirements-definition phases for system projects and controls on sales discounts. As a result, although consolidated sales declined from the previous fiscal year, the improvement in project profit margins and other factors reduced the Company’s operating loss, resulting in consolidated operating profit turning positive.」

「Although project profitability has been steadily improving as a result of these efforts, measures such as strengthening order-taking risk management, reviewing transactions with unprofitable customers and refining project plans became factors limiting order growth in the short term.」

「Against this business backdrop, the Group transitioned to a new organization effective 1 April 2018 and implemented measures including strengthening sales capabilities, improving profitability by strengthening its project management system as in the previous fiscal year, and improving productivity through enhanced employee training and a better work-life balance for employees.」

「Our group recognises improving project profitability, including preventing loss-making projects, as an urgent management priority. Accordingly, in April 2018 we changed our organisational structure and strengthened measures including thorough internal reviews at the proposal and requirements-definition phases of system orders, establishing project management standards covering deliverables and project execution methods, and limiting sales discounts.」

「In this environment, the company has been implementing measures to restore performance, including strengthening marketing activities to expand revenue, improving the estimation process to enhance profitability, establishing a new management organization to prevent troubled projects, reviewing low-profitability projects and strengthening employee training to improve project quality.」

「In addition to strengthening the management system to prevent project problems, the Company is implementing measures to improve profitability and develop human resources, and plans to continue focusing on these initiatives in the second half of the fiscal year.」

「The Group continued to implement action plans from the previous fiscal year, including reviewing the sales process, establishing a system to prevent problems, recruiting personnel, and reforming training.」