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How XBRL Transformed
Fujitsu's IT Platform
Oct. 15th
2008
HANAOKA Kazuhiko
Corporate Vice President
FUJITSU Limited
18th XBRL International Conference
Fujitsu Group (FY2007)
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Net Sales: US$ 34.1B
Employees: 100,000
Group Companies: 130
Net Sales: US$ 5.2B
Employees: 10,000
Group Companies: 50
Net Sales: US$ 8.4B
Employees: 24,000
Group Companies: 140
Net Sales: US$ 5.6B
Employees: 33,000
Group Companies: 110
EMEA
APAC & China
Japan
The Americas
Consolidated Net Sales: US$ 53.3billion
No. of Employees, Worldwide: 167,000
Consolidated Subsidiaries: 430 companies (47 Countries)
© FUJITSU Limited 2008
• System Platforms- System Products - Network Products
• Services- Solutions - Systems Integration- Infrastructure Service
• Others
Business Composition
© FUJITSU Limited 2008 3
¥3,158 billion(US$ 31.5 billion)
¥1,056billion(US$ 10.5 billion)
¥736 billion(US$ 7.3 billion)
¥378 billion(US$ 3.7 billion)
• LSI Devices• Electronic Components• Others
• PCs/Mobile Phones• Hard Disk Drives• Others
9.0%
13.8%
20.6%
56.6%
Device Solutions
Other Operations
Ubiquitous Product Solutions
Technology Solutions
FY 2007 Revenue by Business Segment
Consolidated Net Sales by Business Segment, Including Intersegment Sales
Fujitsu’s XBRL related activities
XBRL specification development
Served as a chairman of a working group for basic specification
development
Development of the latest specifications and best practices
Provision of tools and support for
consortium activities
Participation to XBRL consortium and pilot projects in various regions
XBRL solutions for early adopter
customers
Preparation of XBRL-based financial reports in public institutions
Middleware for XBRL processing: Interstage XWand
© FUJITSU Limited 2008 4
Internal control
(JSOX)
SecurityEnvironmentalprotection/regulations
Changes in the Environment
of Global Business Management
© FUJITSU Limited 2008 5
Continuousbusinessoperation
Corporate Management
Early financialresults announcement,
Quarterly disclosure
IFRS,
ISA
BC (Business Continuity),DR (Disaster Recovery), etc.
Basic Environment Law,
Law on Promoting Green Purchasing,
RoHS, etc.
Personal Information Protection Law,ISMS/ISO-27001,
Government’s unified standards, etc.
Aiming to realize IFRS-based
business management
Standardization of the entire group’s accounting
rules
Development of unified accounting standards, policies, and administration
standards for all group companies including overseas subsidiaries
Fair value basis
Strict evaluation and write-down of assets (fixed assets, affiliated company
stocks, etc.)
Evaluation of inventory assets based on the lower-of-cost-or-market method
Matching principle between expenses and
revenues
Immediate provision for losses and write-down of assets
Depreciation and evaluation of assets reflecting actual business situation
(payback period, etc.)
6© FUJITSU Limited 2008
Prerequisites for IFRS-based
business management
Standardization of the entire group’s accounting
rules
Development of globally-shared business management infrastructure
Visualization and standardization of business processes
Internal control cannot be secured without standardization of the entire
group’s accounting rules
Fair value basis, Matching principle between
expenses and revenues
Agile and proper management through business and asset risk visualization
Realization of an appropriate level of revenue in return for costs
© FUJITSU Limited 2008 7
Issues
in Fujitsu’s corporate IT system
Fujitsu developed individually optimized systems,
in accordance with business growth and focus
themes, on a case-by-case basis.
The latest “Cutting-edge technologies” were
applied to the individual system development.
Many systems were dispersed without TCO
visibility and system owners.
© FUJITSU Limited 2008 8
Management-IT integration
in practice
Enhance IT investment management
Visualization of investment (central control of investment)
Define and thoroughly implement IT
policies
Unification of system architecture
Unification of development framework
SOA-based business system modeling
Security & disaster counter measures
Full-scale implementation of overall IT
control (J-SOX)
© FUJITSU Limited 2008 9
Largest issue – FOCS
© FUJITSU Limited 2008 10
Overseas operation systems
Contract systems
Information systems
Factory & procurement
systems
1269 system interfaces, 400 forms and 1 million product code masters
Began operation in 19846Mstep COBOL (mainframe)69 directly related systems
SUMMIT/JUST
FOCS
Challenges toward technologies
for FOCS reconstruction
Mix of massive application assets (ERP/PKG/bespoke)
Difficult to design and maintain integrated DB
Difficult to rebuild system with“big-bang” approach
Technology advancement (hardware/software), XML technology implementation, standardization
Realizing a “visible”, “connectable” and “adaptive” systemCurre
nt sy
stem
SOA-based system development
Business activity record(data control and utilization)
New system development approach
11© FUJITSU Limited 2008
Starting point for discussions
Most of core business processes are
systemized.
Current system goes through correct
transactions.
Every transaction has “IN” and “OUT”.
All business activities can be recorded as
data that can be utilized freely (Fact data)
12© FUJITSU Limited 2008
Base Concept for FOCS Reconstruction
- Designing concept for SUMMIT -
Opposite Direction from SAPSUMMIT
Sales ordering system
Procurement system
Production system
Maintenance/Contract system
Asset mgmt system
Sta
nd
ard
inte
rface
Pe
rfect a
uto
ma
tic
logic
al J
ou
rna
liza
tion
Acco
un
ting
syste
m
•Automatic journalization by business codes
•Creation of detailed past record database
•SOA based XBRL-GL
13© FUJITSU Limited 2008
Implementation of Business
Process Platform
e-FOCUS GLOVIA/SUMMIT
glovia.com Bespokebusiness application
InterstageService Integrator
CSV-XML conversion, Data
processing, format conversion
Data structure management
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XML
Business Activity Recorder
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XML
SAP CRM
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XML
OracleCDH
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XML
Collecting business activity record
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Legacy
JCA adaptor
Business process record
System log output
Business activity record
Data filtering
Business activity recording service
14© FUJITSU Limited 2008
Purpose of developing XML Ledger
Separation of data and processing
XML LedgerNew data
• Record all new
data in
chronological order
• Add new data
rather than deleting
or updating
existing data
Salesdata
Accountingdata
Procurementdata
Manufacturingdata
Inventorydata
Selection Processing
© FUJITSU Limited 2008 15
Recording Business activities on
the XML Business Activity Recorder
Business activity data
Keeps history information (on a detailed level)
Adding new data rather than updating existing data
Stores data comprehensively
All data is available on the recorder
New items can be added easily
XML-based flexible data structure
XML Business Activity Recorder
Account
receivableSales Accounting
Analysis/Visualization
on a detailed level
Service bus: Automatic data collection, XML tags, time stamps
Information service
Audit support service
XBRL-GL© FUJITSU Limited 2008 16
Fujitsu will …
Situate IT as the enabler for the
transformation of Business process,
Corporate rhythm, Business model, and
eventually the Corporate management.
Utilize XML, XBRL, etc. for internal
standardization
Provide customers with values that
Fujitsu has achieved as an early adopter.
© FUJITSU Limited 2008 17
© FUJITSU Limited 2008 18