Cost overrun risk in system development projects
First written in FY2016. 5 of 10 entries say "Mitigated", first in FY2018. Latest entry: FY2021.
The whole theme swung hardest in 2024: 18 of 59 companies on the "Worse" side.
26 other companies' latest entry also says "Mitigated".
- FY2021MitigatedAnnual report
「Accordingly, we have established a framework for conducting multifaceted assessments of project risks and monitoring service delivery, and are rigorously operating this framework through evaluation by the Business Review Committee. We are also continuing to implement measures including improving productivity through the systematization and standardization of system development methods and Project Medical Checkups, an early project-issue detection program.」
For unprofitable-project and cost overrun risks, the company explicitly identifies a combination of multifaceted assessments, service-delivery monitoring, the Business Review Committee, standardization, and Project Medical Checkups as its response measures. - FY2021-Q1MaterialisedAnnual report
「In addition, profitability declined slightly during the cumulative first quarter of the fiscal year under review due to an unprofitable project involving the construction of a core system. We will seek to further improve profitability by expanding high-value-added businesses, thoroughly managing project risks, and implementing measures to improve productivity.」
The company states that an unprofitable project occurred in a core-system construction project, meaning that cost overrun and declining profitability risks materialized during the quarter. - FY2020WorsenedAnnual report
「In addition, as the products and services handled become increasingly diverse, the safety and security risks that projects must manage are also increasing.」
Regarding project management risks, the company reports that, in addition to the previously identified risks of cost overruns and schedule extensions, safety and security risks are increasing as products and services become more diverse. - FY2020-Q1MitigatedAnnual report
「No new unprofitable projects occurred during the cumulative first quarter of the fiscal year under review.」
The company reports that no new unprofitable projects occurred during the quarter, demonstrating its results in managing cost overrun risk. - FY2019WorsenedAnnual report
「In addition to numerous system development projects in its core ICT business, our group is undertaking numerous projects in priority areas, including newly created service and platform businesses. As customer requirements become more sophisticated and projects more complex amid intensifying market competition, the risk is increasing that problems in these projects will require more cost and time than anticipated to resolve, resulting in cost overruns or delays to release dates.」
The scope of cost overrun risk has been expanded from core ICT development to numerous projects in priority areas, including services and platforms, and release delays are also explicitly identified. - FY2019-Q3MaterialisedAnnual report
「An unprofitable project occurred during the third quarter in an open-systems conversion project for a core system serving a customer in the distribution industry. However, partly due to the effects of efforts to improve productivity to date, profitability has steadily improved after absorbing the impact of the loss.」
Previously, the company reported a record of zero unprofitable projects, but states that an unprofitable project actually occurred during the third quarter in an open-systems conversion project for a core system serving the distribution industry. However, it states that the impact was absorbed through productivity improvements and that profitability has improved. - FY2019-Q2MitigatedAnnual report
「No unprofitable projects occurred during the cumulative second quarter of the fiscal year under review.」
No unprofitable projects occurred during the cumulative second quarter, continuing to document the company's results in managing cost overrun risk. - FY2019-Q1MitigatedAnnual report
「No unprofitable projects occurred during the cumulative first quarter of the fiscal year under review.」
The company reports that no unprofitable projects occurred in the first quarter, continuing to document its results in managing cost overrun risk. - FY2018MitigatedAnnual report
「No unprofitable projects occurred during the consolidated fiscal year under review, bringing the number of consecutive fiscal years with no unprofitable projects to 3.」
The company reports 3 consecutive fiscal years with no unprofitable projects, documenting specific results in managing cost overrun risk. - FY2016First statedAnnual report
「As customer requirements become more sophisticated and projects become more complex amid intensifying competition, if a problem occurs in a development project, resolving it may require more cost and time than anticipated, creating a risk of cost overruns.」
The company recognizes the risk of exceeding costs and schedules amid increasingly sophisticated and complex projects, and addresses it through screening, standardization, and an early-detection system.