Our value creation:
Message from the Head of Global Solutions
Through the pursuit of a better world, we will create a global business that leads to the realization of Our Purpose and achieves growth.
Corporate Executive Officer
SEVP, Head of Global Solutions
Tackling global social challenges: seven Key Focus Areas
The starting point of Fujitsu Uvance is Fujitsu Group’s Purpose, which is “to make the world more sustainable by building trust in society through innovation.” Fujitsu Uvance was launched with the vision to seek growth by providing services globally that are tightly linked to the realization of this Purpose.
To turn our vision into practice, we have envisaged what global society might look like in 2030, the target year of the “2030 Agenda” of the United Nations Sustainable Development Goals (SDGs), and we are backcasting to examine the social issues to be resolved and the role that the Group should play in addressing them. As a result, we have identified seven Key Focus Areas that comprise Fujitsu Uvance. Four of these are cross-industry Vertical areas, while the remaining three are Horizontal areas, all supported by five Key Technologies. Fujitsu Uvance is a collection of offerings provided by the Fujitsu Group in these seven Key Focus Areas.
Having said that, the term “a collection of offerings” does not fully describe the entire scope of the transformation we are striving for under the Fujitsu Uvance brand. This is because the business model on which Fujitsu Uvance is based will go beyond that of the existing Fujitsu Group.
Going beyond traditional business models
The Fujitsu Group has developed its business incrementally around the world and has established its identity as a global company. However, given our scale and the diversity of our businesses and geographies, we have a very broad portfolio to manage. With an emphasis on solving social issues faced by communities globally, Fujitsu Uvance will transform our traditional business model and achieve sustainable growth with a view to realizing Our Purpose.
We established the Uvance Unit in April 2022 as the core business unit that drives Fujitsu Uvance. Currently, about 1,000 employees from four regions around the world have joined the Uvance Unit to formulate strategies, build new offerings, and create an organization and structure that enables a new business model. Personally speaking, I moved from Tokyo to London earlier this year to refresh my mindset and pursue a new business model consistent with our objective of global business development and growth.
Transforming development processes and revenue models
Our short-term priority is to expand the number of Uvance offerings to 20 covering all seven Key Focus Areas by April 2023, and then to 35 offerings by the first half of fiscal 2023. We will realize this in an agile and continuous manner, repeating development and testing in short cycles. We will also promote collaboration with our global alliance partners and co-creation with our customers, in addition to development within the Group. In collaborating with our customers, we emphasize an approach in which we take the lead while discerning how the markets in which our customers operate and the society that lies beyond them will change.
Fujitsu Uvance’s revenue structure is also different from that of the traditional business model. In the traditional business model, where we develop an IT system as per the customer’s requirements, our revenue is generated based on so-called “person-month” compensation; that is, fees for the number of people and time spent in building the finished product. Fujitsu Uvance, on the other hand, is based on a stock-type revenue model in which we generate revenue from the customer’s use of our offerings. We plan to flexibly combine our revenue structure according to the characteristics of our seven Key Focus Areas. We are also looking at revenue sharing on a contingency fee basis with respect to offerings developed through collaboration with the aforementioned partners or through co-creation with customers.
To clearly break away from the traditional business model, accepting a set of offerings as a given and simply continuing to sell them is not enough. The key to Fujitsu Uvance’s success will be the ability to foresee the changes that lie ahead in 2030 and beyond, and to rapidly and flexibly build offerings based on that understanding. This means, in practical terms, that we must strengthen our consulting capabilities. To do so, we will continue to reinforce the Uvance team using the global job posting system with personnel who have a desire to contribute to making the world better, and work in collaboration with our consulting subsidiary Ridgelinez and external partner companies. We will also utilize AI to enhance our sensitivity and responsiveness to changes in society and the market.
We envision that by 2025 Fujitsu Uvance will be a wellestablished brand in the global market, and by 2030, a core business and a major source of revenue for the Fujitsu Group. To achieve this goal, we are accelerating efforts toward product development, service provision, and organizational and structural development in collaboration with our colleagues, customers, and partners in the Group across the four regions.