May 01, 2018 ITOCHU Techno-Solutions Corporation
ITOCHU Techno-Solutions Corporation (head office: Chiyoda-ku, Tokyo; President & CEO: Satoshi Kikuchi; hereinafter "CTC") announced today that CTC has formulated a Medium-Term Management Plan for a period of three years from fiscal 2018 to fiscal 2020 under which CTC aims at furthering its growth.
Growth is a trend underlying economies around the world today. The Japanese economy is showing its strength, too, as demonstrated by changes such as growing consumer spending and corporate earnings. In the Japanese IT market, investments are expected to expand in areas such as the application of new technologies with the advancement of digital transformation and working style reforms and the expansion of network infrastructure functions centered on those for 5G networks. ASEAN nations are maintaining high rates of growth, too.
In this environment, CTC drew up a three-year Medium-Term Management Plan dubbed "Opening New Horizons." Under the plan, CTC seeks to play a key role in the evolution of IT as an industry leader, based on its mission of leveraging IT's potential to change the future for the global good. The plan will apply to CTC and its consolidated subsidiaries (hereinafter the "CTC Group").
CTC termed fields for new activities as Horizons in this Medium-Term Management Plan. In the four Horizons of business reforms, strong point enhancement, development of new fields and business foundation buildups, the CTC Group will work to achieve Group-wide growth in the period from fiscal 2018 to fiscal 2020.
Key Policies Adopted in the Medium-Term Management Plan: Four Horizons
1．Go Upwards!: Challenge Business Transformation
The CTC Group will build partnerships to grow with customers by expanding consulting services and bolstering its applications development capabilities.
- Co-Creation of Digital Transformation Businesses with Major Clients: The CTC Group will develop new digital businesses with customers.
- Expand Businesses in Application Services Layer: The CTC Group will further the development of business applications aggressively by introducing new technologies and methods for developing applications.
2．Go Forwards!: Sharpening our Advantages
The CTC Group will work to expand and stabilize earnings by building up its strong points such as IT infrastructure and cloud computing services.
- No.1 Cloud-Computing Integrator: The CTC Group will bolster its capabilities to integrate cloud services, such as hybrid cloud services and the cloud native environment centered on DevOps.
- No.1 IT Infrastructure & Network Environment Provider: The CTC Group will increase its earnings strength in the fields of infrastructure and networks where it has advantages by plowing deep SDN/NFV, AI and IoT technologies.
- Accelerate Expanding of Recurring Businesses: The CTC Group will work to stabilize earnings by strengthening cloud services, mission-critical system operation services and managed security services (MSS).
3．Go Outwards!: New Coverage, New Region in Globe
The CTC Group will search for new regions and business fields, and establish businesses that contribute to earnings growth in the future.
- Expand Global Activities: The CTC Group will offer IT services globally by expanding service and R&D bases.
- Create Open Innovation Activities as New Business Models: The CTC Group will expand its systems for collaboration with companies in different lines of business and challenge new business fields, in addition to making the most of its collaborations with start-ups, venture funds aimed at joint ventures with customers and the "DEJIMA" space for realizing open innovations.
4．Consolidate Footholds!: Stabilize Management Infrastructure
The CTC Group will build rock-solid business foundations as the groundwork for all its activities.
- Skill Transition & Workstyle Transformation: The CTC Group will strive to enhance the attractiveness of its Group companies by improving personnel systems so that they contribute to greater job satisfaction for employees and promoting working style reforms that support diverse ways of working.
- Consolidate CTC-Group Governance: The CTC Group will seek to improve its Group value by enhancing operational efficiency and pursuing specialization using AI/RPA.
- Quality First & Customer Centric: The CTC Group will offer reliable IT services by checking issues each year as business partners through its activities of listening to customers and reflecting their opinions in service improvements.
- Keep Shareholders Value & Returns: The CTC Group will implement capital policies that give consideration to growth in ROE.
Quantitative Targets for Fiscal 2020
The CTC Group aims to achieve the following quantitative targets in the four Horizons.
＜Business Goal FY2020＞
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