Delays and defects in system implementation and development work
First written in FY2018. 2 of 4 entries say "Reframed", first in FY2021-Q1. Latest entry: FY2021.
The whole theme swung hardest in 2017: 9 of 31 companies on the "Worse" side.
21 other companies' latest entry also says "Restated".
- FY2021RestatedAnnual report
「Errors in estimates, work delays, specification changes and other factors may result in the need for more work hours than initially estimated, potentially leading to higher-than-expected cost burdens and deteriorating profitability due to development delays and other factors.」
The risks of estimation errors, work delays, specification changes, increases in work hours and costs due to defects, and deteriorating profitability in system implementation and development continue to be described. - FY2021-Q3ReframedAnnual report
「We are working to shorten development periods by strengthening our development structure and adopting development methods that can respond flexibly to development needs. However, if rapid technological innovation occurs while new services and other products are under development, specifications change substantially as the services demanded by the market evolve, or unforeseen defects and other issues arise, development work hours may increase significantly and profitability may deteriorate, potentially affecting the results of operations of our group.」
The stated measures to address the risk of delays and defects in system implementation and development include strengthening the development structure, shortening development periods and adopting flexible development methods. - FY2021-Q1ReframedAnnual report
「In the distribution cloud, government cloud and trust businesses, service implementation may involve not only implementation work such as master-data configuration, but also improvements to add functionality and stabilize operations, as well as system development such as interfaces.」
The scope of risks related to delays and defects in system implementation and development has expanded from the distribution and government cloud businesses to the trust business, with product and service defects and lost orders also identified as factors that could affect results. - FY2018First statedAnnual report
「For system implementation and development, we forecast and estimate costs based on work schedules and other factors and manage progress for each project. However, given the nature of this work, accurately estimating all costs is difficult, and errors in estimates, delays in work, changes in specifications and other factors may result in the need for more work hours than initially estimated, potentially leading to higher-than-expected cost burdens and deteriorating profitability due to development delays and other factors. In addition, if we fail to complete implementation or development work and deliver the system by the deadlines agreed with customers, or if quality problems arise due to system defects or other issues, our results of operations may be affected by increased repair costs, reputational damage, claims for damages and other factors.」
The risks associated with system implementation and development, including increases in work hours and costs due to estimation errors, work delays, specification changes and defects, delivery delays, quality problems and claims for damages, are described as a separate item.