Current Situation of Information Systems Usage in Japan.

Transcription

1 Current Situation of Information Systems Usage in Japan. Koh SATO Japan Users Association of Information Systems (JUAS)

2 Today s Agenda About JUAS Business environment of Japanese enterprises Characteristic of Japanese enterprise s utilization of IT and information-system (IS) organization Trend of IT investment from last year to this year and the aim by utilization of IT in the future.

3 JUAS:Japan Users Association of Information Systems JUAS was established as Japan Data Processing Association in 1962, and it was reorganized and renamed in Object of activity : Promotion of Information Systems from the standpoint of systemusers Characteristic of JUAS Members include major corporations of all industries in Japan included the following enterprises. Tokio Marine & Nichido Fire Insurance Co., Ltd. ITOCHU Corporation TOKYO electric power company NIPPON Telegraph and Telephone east Corporation SUMITOMO Electric industries, Ltd. Provides a forum for exchanging information Aims to be the association that can offer the knowledge concerning with practical applications of information technology. No. of members as of July in 2009 Regular member Associate member1 Associate member2 (only taking privacy mark ) Total no. of members 正会員企業の構成 コンサルタ Other 5% ント System 5% ベンダー vender 14% 14% 175 corporations 137 corporations 330 corporations 642 corporations Distribution ratio of regular members (Consultant/Think tank) Subsidiary 情報子会 of IT 社 17% 17% ユーザー System users 64%

4 Activity chart of JUAS in 2009 Research Trend of systematization Software-metric Diffusion of system reference manual Research Project Technical research Information security System of Important infrastructure IT Management (large-sized enterprise) IT Management (Small and medium-sized enterprise) information supplement JUAS academy Security center Inspection for approval of the Privacy Mark UISS center Users Information Systems Skill Standards Community of members Forum on IT division management -4 communities on Subsidiary of IT management -2 for top management IT -2 for Chief Information Officers (CIO) -3 <in Kansai> for top management on IT on Subsidiary of IT management on planning and implementation of IT for a group of enterprises Plaza For Takumi old boys of system-users For only women Society for the study Study of IT strategy Study of training Study of co-ownership of information Study of system operation Study of Enterprises risk management Study of utilization of IT Study project on Services Sciences on Technology of Requirements Specification on Technology of Requirements Specification on improvement of delivery, quality and cost on utilization of IT in global on utilization of Open Source Software on standards of documentation for system development on the span of life of hardware and software Almost 1000 persons joined 42 projects in Not only the systemusers, but also the IT vender and IT consultant participating Training Open seminar Order-made seminar Publication Overseas visit Training of CIO Innovation Management College System Users Symposium JUAS Square

5 Today s Agenda About JUAS Business environment of Japanese enterprises Characteristic of Japanese enterprise s utilization of IT and information-system (IS) organization Trend of IT investment from last year to this year and the aim by utilization of IT in the future.

6 Business environment of Japanese enterprises Low birthrate and longevity Demand drop of the domestic market. Entry into global markets. Limits of resources Global financial crisis

7 Comparing GDP Growing industry 1:Finance 2:IT 3:Natural resource US$ ,000 90,000 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10, ,819 1 ルクセンブルグルクセンブルグ ( 金融 ) ( 金融 ) Luxemburg :Finance 1 72,430 2 ノルウェーノルウェー ( 原油 ) ( 原油 ) Norway :Natural resource 5 GDP per one person in ,914 53,246 53,001 51,800 50,931 44,024 39,994 42,179 39,190 41,049 38,613 39,630 39,141 36,708 35,433 37,301 36,594 34,181 3 カタールカタール ( 原油 天然ガス ( 原油 天然ガス ) ) スイス ( スイス金融 ) ( 金融 ) Qatar :Natural resource Switzerland:Finance 5 アイスランドアイスランド ( 水産業 ( ) 水産業 ) 11 Iceland:IT 6 アイルランドアイルランド (IT) (IT) 24 Ireland:IT 7 デンマークデンマーク ( 農業 畜産業 ( 農業 畜産業 ) ) Danmark 4 8 アメリカ合衆国アメリカ合衆国 ( 金融 ) ( 金融 ) Sweden:IT 6 9 スウェーデンスウェーデン (IT) IT) ( United states of America:Finance/IT 9 10 オランダオランダ ( 原油 天然ガス ( 原油 天然ガス ) ) Netherlands :Natural resource フィンランド (IT) Finland:IT フィンランド ( IT) イギリスイギリス ( 原油 ) ( 金融 ) United Kingdom :Finance オーストリアオーストリア ( 製造業 ( ( 金融金属工業等 ) )) 8 Oesterreich:Finance 14 カナダ ( カナダ金融 ) ( 金融 ) 17 Canada:Finance 15 アラブ首長国連邦 ( 石油 ) ( 原油 ) United Arab Emirates: Natural resource ベルギーベルギー ( 製造業 ( ( 金融金属工業等 ) )) 12 Belgium:Finance 17 フランスフランス ( 製造業 ( 製造業化学等 ) )) オーストラリアオーストラリア ( 金融 ) ( 石炭 鉄鉱 ) ドイツ ( ドイツ製造業 ( 製造業自動車等 ) )) Germany: manufacturing industry Australia: Natural resource France: manufacturing industry 7 20 日本 manufacturing 日本 ( 製造業 ) industry 3 Japan: 7

8 Transition of population in Japan The peak the Yayoi era the Kamakura era the Edo era WW2 the Meiji era 8

9 Transition of population in Japan Population of over 65 years old

10 Export and Import on Japan The amount of exporting increased 1.6 times and the amount of importing increased 2 times In 8 years. The globalization of business has progressed. Export Import Population FY , , ,926 FY , , ,771 increasedecrease rate *dollars in millions 10

11 Today s Agenda About JUAS Business environment of Japanese enterprises Characteristic of Japanese enterprise s utilization of IT and information-system (IS) organization Trend of IT investment from last year to this year and the aim by utilization of IT in the future.

12 Characteristic of Japanese enterprise s utilization of IT Affected the stagnation in Japanese economy, Japanese enterprise s aimed the following by utilization of IT IT Invest for Innovation Business model or Business process. Cutting down the IT property that is already.

13 Ten-years Increase-decrease rate of All IT budget (2006/1996) A B Increase-decrease IT 予算増減率 rate of All IT budget -50% 0% 50% 100% 150% 200% 71% C D 112% 108% E -28% F -3% H -37% I -10% J 111% K L -26% -18% M 76% N 55% P 182% Q 46% R 13

14 Correlation of sales volume increase-decrease rate and IT budget per employee Increase-decrease rate 売上高増減率 sales volume increasedecrease 100% 50% drop-off sales but recovered by IT utilization The IT investment supported an increase of sales. 0% -50% 0% 50% 100% 150% 200% -50% Increase-decrease 1 人あたり rate IT 費用増減率 budget per employee 14

15 The theme of IT investment 2008 The theme that the management planning section wants to emphasize first is real-timemanagement. i.e. the speed at which executive management can get information about organizational performance. 0% 10% 20% 30% 40% Innovation of m anagem ent process 19% 26% Real-tim e-m anagem ent 21% 32% A chievem ent of transparency in m anagem ent 7% 11% Strengthening of sales power 10% 12% S trengthening of com m unication force 7% 8% M anagem ent of custom er s first 6% 12% Inform ation-collaboration betw een enterprises 1% 5% C oping w ith globalization 3% 5% D ischarge of social responsibility (i.e.inform ation security and privacy) 4% 4% O pening a new m arket and creation of new products others 1% 0% 4% 3% IT sector(n=849) U ser sector(n=737)

16 Three types of IT investment IT investment by enterprises can be categorized into three types: i.e. Infrastructure-type investment, rationalization-type investment and strategic type investment. Investment type Features Method of evaluation Infrastructure-type investment Rationalization-type investment Strategic type investment Is the basis of general business processes, such as groupware, networks, and includes investments relating to security. It is measurable, such as labor saving, reduction of goods in stock, reduction of costs, improvement of yield rates and so on. The impact of IT on a firm s ability to build brand equity, customer satisfaction, etc. is often difficult to measure, making it harder to justify and measure the success using traditional measures They decide its investment on the responsibility of top management with reference to investment amount to the amount sold, or investment amount per employee per year. (They don t evaluate it in special measure.) ROI is usually 2 or 3 years Concerned with measurable items; goals focus on Key Performance Indicators and customer satisfaction. Ultimate investment decision focuses on profitability of its business. Applicationownership is effective.

17 W eighting average in the am ount of investm ent Sim ple average The ratio of Three types IT investment By a simple average, the infrastructure-type investment is 40%, the rationalization-type investment is 40%, and the strategic type investment is 20%. Using a weighted average the infrastructure-type investment is 30%, the rationalization-type investment is 30%, and the strategic type investment is 40%. The infrastructure-type investment is increasing, and rationalization-type investment is decreasing. 0% 20% 40% 60% 80% 100% 2008(n=691) 41% 41% 19% 2007(n=406) 40% 41% 19% 2006(n=582) 40% 39% 20% 2008(n=546) 34% 32% 34% 2007(n=406) 35% 33% 32% 2006(n=582) 33% 28% 39% Infrastructure-type R ationalization-type S trategic type

18 Transition of Japanese IS organization Type A Type B Type C Type D 1980s~ 2000s~ Management User Management User Management User Management User Informationsystems division Strategy Informationsystems division Strategy Informationsystems division Strategy Informationsystems division Strategy Planning Development Operation Maintenance Planning spin-out Subsidiary of IT Development Operation Maintenance Subsidiary of IT Planning Development Operation Maintenance M&A by Big System vender Subsidiary of IT Planning Development Operation Maintenance outsourcing System vender Planning Development Operation Maintenance

19 Japanese information-system organization Formation company-wide Assigning tasks division Subsidiary of IT System vender Centralization type A Strategy Planning Develop ment Operation Centralization type B Strategy Planning Develop ment Operation Centralization type C Strategy Planning Develop ment Operation Federal type A Strategy Planning Develop ment company-wide Operation Strategy Planning Develop ment division Operation Federal type B Strategy Planning company-wide Strategy Planning division Develop ment Operation Apostasies Strategy Strategy Planning (C)JUAS 2009 Develop -ment division Operation

20 The ratio of Formation information-system organization The Centralization s ratio increases. Japanese enterprises tries to strengthen IT governance 0% 20% 40% 60% 80% 100% 2008(n=851) 77% 21% 2% 2007(n=623) 76% 22% 2% 2006(n=772) 73% 23% 4% 2005(n=915) 74% 23% 4% 2004(n=965) 74% 20% 6% 2003(n=855) 73% 20% 7% 2002(n=1152) 71% 18% 10% 2001(n=883) 70% 19% 11% C entralization Federal A postasies

21 m ore than 1000 less than 1000 all Outsourcing seems to expanded In large enterprises. 0% 20% 40% 60% 80% 100% 2008 actual(n=851) 61% 39% 2008 foresight (n=831) 48% 52% 2008 actual(n=575) 69% 31% 2008 foresigh (n=564) 57% 43% 2008 actual(n=269) 44% 56% 2008 foresigh (n=267) 31% 69% In-house O utsourcing

22 Today s Agenda About JUAS Business environment of Japanese enterprises Characteristic of Japanese enterprise s utilization of IT and information-system (IS) organization Trend of IT investment from last year to this year and the aim by utilization of IT in future.

23 IT Budget from the latter half of 2008 to 2009 The big drop in IT Budget s DI (Diffusion Index) The average of IT Budget decreased 10% A ctual Expectation of the next year at N ov FY2001 FY2002 FY2003 FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 Expectation of the next year at Nov Expectation of the next year at March

24 その他 (n=46) 商社 流通 (n=34) 機械製造 (n=45) 素材製造 (n=36) 一次産業 (n=27) IT Budget from the latter half of 2008 to 2009 by industry Material industries and Manufacturing industries plans to cut the IT Budget. 0% 20% 40% 60% 80% 100% primary industry Nov.2008 追加調査 Mar. 本調査 % 19% 7% 11% 19% 30% 26% 22% 19% 11% 11% 7% DI: 30 DI: 11 material industry Nov.2008 追加調査 Mar. 本調査 % 3% 19% 25% 22% 14% 19% 28% 19% 25% 14% 6% DI: 58 DI: 3 manufac turing industry Nov.2008 追加調査 Mar. 本調査 % 11% 0% 0% 16% 16% 40% 16% 27% 44% 20% 7% DI: 80 DI: 22 Distribu tion Nov.2008 追加調査 Mar. 本調査 % 15% 38% 38% 26% 6% 12% 18% 15% 9% 3% 6% DI: 3 DI:41 Other -Finance -Service Nov.2008 追加調査 Mar. 本調査 % 20% 13% 20% 35% 37% 4% 17% 13% 11% 9% 2% DI: 0 DI:17 10% or more 10% 以上増加 10% 1-9% 未満増加 increase Same 不変 10% 1-9% 未満減少 decrease 10% 10-30% 以上 30% decrease 未満減少 30% 30% 以上減少 or more increase as last decrease year.

25 Business environment of Japanese enterprises from last year to this year Because of The ever difficult economic environment by Global financial crisis, the information-system division have to reduce costs. But Is a quiet economic recovery good..only waiting..? The enterprise should survives. The enterprise should ready "The following move" of utilization of IT for the next age.

26 "The following move" utilization of IT Opinions on IT division management forum Understanding of Top management Commitment of user section Effect of IT investment Standardization of infrastructure Hardy IS division Strengthen IT governance Contribution for Innovation Business model or Business process. The following move Simplification of operations Proper budget Normalization of IT budget Readjustment of constant cost medium- to long-term IT policy Scanning development investment for maintenance System life management Reduced servers human resource development Inner cloud

27 Shift of human resource of IS division Case A company (food manufacturer) Persons who make a contribution for Innovation Business model or Business process while having the point of view of management, Persons who make point of contact with customers while having the point of view of marketing. Persons who make judgments of Information technology and IT cost

28 Thank you for listening. JUAS