Risk of Misalignment in Software Development, Delayed Delivery and Litigation
First written in FY2016. 3 of 7 entries say "Materialised", first in FY2017-Q3. Latest entry: FY2023.
Fuso Dentsu moved to the "Worse" side of this theme in 2017, 5 years before the typical company in this theme (2022).
The whole theme swung hardest in 2017: 9 of 31 companies on the "Worse" side.
21 other companies' latest entry also says "Restated".
- FY2023RestatedAnnual report
「In the system development projects we undertake, we maintain close coordination between the sales and technology divisions, carefully examine customer needs when pursuing business opportunities, and make alignment with customers our highest priority. We also work to clarify risks and consider countermeasures at the business-opportunity stage, while rigorously managing progress. However, various problems may arise, including misunderstandings with customers, problems with the project-wide structure and insufficient technical verification. If the project cannot be carried out within the planned scope, budget, delivery schedule and quality standards, there is a risk of losses and other consequences.」
Continued to disclose the risk of losses resulting from misunderstandings with customers, structural problems, insufficient technical verification and failure to meet requirements for scope, budget, delivery schedule and quality, as well as countermeasures and progress management from the business-opportunity stage. - FY2022RestatedAnnual report
「However, various problems may arise, including misunderstandings with customers, problems with the project-wide structure and insufficient technical verification. If the project cannot be carried out within the planned scope, budget, delivery schedule and quality standards, there is a risk of losses and other consequences.」
Continued to disclose the risk of losses resulting from misunderstandings with customers, structural problems, insufficient technical verification and failure to meet requirements for scope, budget, delivery schedule and quality. - FY2019WorsenedAnnual report
「However, various problems may arise, including misunderstandings with customers, problems with the project-wide structure and insufficient technical verification. If the project cannot be carried out within the planned scope, budget, delivery schedule and quality standards, there is a risk of losses and other consequences.」
Based on the experience of disagreements and discontinued work on a previous large-scale project, the risk factors were specified to include not only misunderstandings, but also structural problems, insufficient technical verification and failure to meet requirements for scope, budget, delivery schedule and quality. - FY2018MaterialisedAnnual report
「Regarding a large-scale system development project delivered last year, we had been responding to customer concerns about defects in the response and specifications. However, as we ultimately failed to reach agreement on quality and specifications, costs, and the schedule, we decided to discontinue the work and, as a result, recognized amounts equivalent to the equipment and development costs in the third quarter.」
The annual report also stated that disagreements with the customer over specifications and other matters in a large-scale system development project remained unresolved, resulting in the discontinuation of the work and recognition of amounts equivalent to equipment and development costs. - FY2018-Q3MaterialisedAnnual report
「Regarding a large-scale system development project delivered last year, we had been responding to customer concerns about defects in the response and specifications. However, as we ultimately failed to reach agreement on quality and specifications, costs, and the schedule, we decided to discontinue the work and, as a result, recognized amounts equivalent to the equipment and development costs in the third quarter.」
In a large-scale system development project, the customer identified defects, and agreement was not reached on quality, specifications, costs and the schedule, so the work was discontinued. Amounts equivalent to the equipment and development costs were recognized. - FY2017-Q3MaterialisedAnnual report
「Although operating profit declined due in part to rework arising in some system development projects during the three months ended 31 December,」
Stated that rework actually occurred in some system development projects relating to software development, which had previously been identified as a risk, and was a factor behind the decline in operating profit. - FY2016First statedAnnual report
「In software development, misunderstandings with customers and other issues may lead to claims over delivery delays and other matters, potentially resulting in litigation. To mitigate this risk, we maintain close coordination between our sales and technology divisions, carefully examine customer needs when pursuing business opportunities, and undertake software development with alignment with customers as our highest priority.」
Recorded the possibility of delivery delays, claims and litigation arising from misunderstandings with customers, and the response through coordination between the sales and technology divisions.