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"I just want the damn stuff to work!"

And other messages from the real world
Johannesburg, 31 Aug 2005

A couple of years ago, we asked a sample of European CEOs and CIOs to tell us what they thought of the IT services industry. They didn`t mince their words:

"No more hype and blue sky please. Just make it happen." "IT should be invisible." "Some problems aren`t glamorous, they just need solving." "I just want the damn stuff to work!"

They were tired of wild theories and radical thinking. They weren`t prepared to swap hope for strategy anymore. They just wanted IT to do its job.

Anyone who has dealings with the IT services industry knows that too many big IT projects have failed to work, arrived months or years late, or been millions over budget.

And many smaller projects, while not necessarily hitting the headlines, have failed to work first time or caused disappointment in some other way, so it`s no surprise that IT buyers are feeling cynical.

It`s high time this was addressed by the industry and Fujitsu is beginning to lead the way in this respect. Our record is well above average when it comes to delivery and I believe we are better placed than most others to actually do something about it.

For example, we are the only global IT services business that is Japanese-owned and Europe-centred. Our financial structure and reporting cycles don`t force us into the short-term thinking that others may suffer from; we think and work differently to the other big IT services businesses. That is why I believe we can lead the way in what I`m calling a new reality in IT.

The new reality: learn from old industries

I`m a big fan of Toyota and Taiichi Ohno. They have led the way for decades in manufacturing quality and continuous improvement and they are continually relentless in searching for tiny improvements in process, speed, reliability and understanding. We need this in IT, and Fujitsu Services, as a Japanese-owned business, is well placed to head the movement.

Gone are the days when a new car needed tweaking or re-engineering a dozen times before it would get you where you wanted to go. But most big IT systems are still built by hand. Each one is slightly different, a little temperamental to get started, and difficult to fix or change. This is unnecessary.

The new reality: hear your customers

We need to come down from our ivory towers and start working with customers in way that fits their business, not just ours. Everyone knows that markets and business structures change all the time, so an outsourcing contract that costs millions in penalty clauses when you want to change something is, frankly, an anachronism.

Every business says it listens to its customers. Far fewer actually hear them.

The new reality: do what it says on the tin

We must design, build and operate IT systems and services so that they work first time, arrive on time and stay on budget. In short, we need to make things that do what it says on the tin. Common sense? Yes of course. Common practice? Not at all.

How is a real IT services company different?

Although many of our attitudes and processes have been unlike the other big IT services players for a long time, the answers we got in the research finally prompted me to formalise realism, common sense and relentless customer focus, and build our European structure and culture around these things. So what is a real IT services business like? Firstly, it`s a different shape. Its structures and systems are driven by the realities of its customers` strategies and problems.

Secondly, it`s like a traditional manufacturer in that it expects its products and services to work first time, arrive on time, on budget and keep on working well into the future.

Thirdly, it thinks and works long-term, by which I means it`s able to plan investments and build customer and supplier relationships over many years.

Let me give you three examples of our different ways of doing things:

Industrial IT

The industrialisation of IT has to happen sooner or later. At the moment projects are expensive, slow to get approval, slow to deploy and seldom achieve their ROI.

More so, 80% of what one company wants its IT to do is also what everyone else wants theirs to do - so why not industrialise (standardise if you like) 80% of the infrastructure solutions we make and sell?

In answer, we`ve created a set of templates that we call TRIOLE. When we make a system to a template, everything from its environment through to its configuration and performance to service operation is pre-known, already defined and proven to work.

Some 33% of Fujitsu`s delivered systems in Japan are now TRIOLE-based and their owners are enjoying faster system deployment, lower whole life costs and better reliability.

Realistic contracts

Another example is a commercial one. Our contract with a leading UK airline is written in their terms, not ours, so they pay us based on measurements that align with their business strategies and operational needs. They sell a lot of tickets online, we get paid more. They don`t, we don`t. There are many other examples of this kind of commitment in our commercial relationships.

Sense and respond

Sense and respond is our approach to delivering IT services that can eliminate unproductive work. It`s our way of thinking and working that aligns the everyday running of IT with the actual objectives of the business.

Fujitsu Services is able to improve both the service and the infrastructure in order to prevent failure rather than just fix it.

Does realism work?

More and more, Fujitsu Services finds itself doing things differently. Some people say such contrary behaviour is risky, but I`m convinced it`s the only way to work. Happily, the figures bear me out.

Our order book is t6.2b - a record - and profit before tax is up by 36% over last year.

Realism is a win/win situation for us and our clients. In my opinion, the sooner the rest of IT services realises and starts doing things differently, the sooner the industry will regain its reputation and begin to achieve its true potential.

Will the others follow? I believe so, which is why I intend to repeat that piece of research I mentioned in about two years` time. I`ll let you know then if anything has changed!

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Fujitsu

Fujitsu Services (South Africa) is part of the global IT services and solutions company Fujitsu Services Plc which is a wholly owned subsidiary of Fujitsu Japan, the third largest IT company in the world, with annual revenues of $38 billion and over 35 000 employees.

Fujitsu Services is a BEE company with its BEE partner Yard Capital holding 30% of Fujitsu Services locally.

Fujitsu Services (South Africa) has moved from being predominantly hardware focused to becoming an IT services and integration specialist, combining its in-house expertise with selected partners from the whole spectrum of the IT industry.

Headquartered in Johannesburg, Fujitsu Services (South Africa) has offices in Pretoria, Durban, Cape Town and Port Elizabeth.

Previously, under the banner of ICL, the company has operated in SA since 1911.

Eject is the Internet service provider for Fujitsu Services (South Africa).

For more information please visit http://za.fujitsu.com

Editorial contacts

Charles Smith
Izwe/CharlesSmithAssociates
(011) 447 1254
charles@csa.co.za