NTT Corporation plans to grow global business, drive innovation
Nippon Telegraph and Telephone Corporation (NTT Corporation) has introduced several initiatives in a move it says will help the organisation become more competitive and profitable, and create new ways of serving clients and society through its global business.
NTT Corporation's operating companies - NTT Communications, Dimension Data, NTT DATA, and NTT Security - have all continued to evolve and grow their respective capabilities. In addition, NTT Group has been driving collaboration across these operating companies with great success.
"The global market is changing fast. We've seen rapid progress in technology innovation; disruption caused by new business models, and the aggressive expansion of innovative competitors. These factors have led to clients' increasing demand for digital transformation. We believe it's an opportunity for us to create new value and increase our presence in the global market," says NTT Corporation.
Focusing on global business
NTT Corporation will establish a new global holding company under NTT Corporation by the third quarter of the fiscal year ending 31 March 2019. This entity will be called NTT, and Jun Sawada, current CEO of NTT Corporation, will serve as its CEO.
Estimated operating revenue of NTT, is approximately US $38 billion with US $20 billion already coming from outside Japan (consolidated figures, based on the fiscal year ending 31 March 2018. By the third quarter of the fiscal year ending 31 March 2019, NTT Communications, Dimension Data, NTT DATA, NTT Security, and NTTi3, will be transferred to NTT, and will align together under its new leadership.
While making NTT Group more competitive and profitable, its global governance will also benefit from embracing and integrating its people's diverse talents, skills, and management experience in global markets.
The new structure will leverage their expertise to its maximum potential. In addition, by the second quarter of the fiscal year ending 31 March 2020, NTT corporation could consider integrating these businesses, with the exception of NTT DATA, into two new businesses. One will look after the global business; the other will cater for the domestic business in Japan.
NTT DATA will continue to collaborate with other companies in the Group while retaining its present management structure, status as a listed company, management autonomy and brand.
Expanding R&D capability
In addition, the organisation will create a new global innovation fund: NTT Venture Capital, LP (a limited partnership), which will help evolve global innovations.
With this new fund, activating investment in high-growth areas such as digital technology will be easier as well as intensify R&D activities in global markets by using a global network of experts from advanced academic research institutions and venture-capital communities around the world.