Customer stories – Furukawa Electric Group

Before the project, each department within Furukawa Electric Group had its own ways of working and IT systems to enable them, giving each department autonomy over its
business operations and procedures. As a result, IT systems and ways of working had become siloed and complicated across the organization. “IT couldn’t adequately support Furukawa Electric Group’s management,” recalls Masahiko Uchizawa, General Manager, DX Promotion Department, Digital Innovation Center, Strategy Division, Furukawa Electric Group. “We found it difficult to respond to changes in the business environment; organizational changes, divestitures, and mergers and acquisitions.”

Mr. Uchizawa explained the group’s various business and systems challenges, including “uncertainty due to the prominence of complex and labor-oriented operations” and “the inability to respond flexibly and promptly due to a lack of systems and rules”. IT systems were not fit for purpose, both in terms of dealing with currency and because most reporting was done manually, including management information, accounting, purchasing and sales. Moreover, accounting, purchasing and sales systems were not integrated, and the lack of coordination between systems meant information on transactions could not be managed centrally.

The lack of unification and standardization made code difficult to compile and compare. The departure of experienced business and IT employees left gaps in tacit knowledge, making the maintenance of aging systems difficult.

Operations could be halted unless measures were taken quickly.

Like many companies, Furukawa Electric Group wanted to upgrade its core systems but was struggling to take the first step. Mr. Uchizawa expressed his concerns: “We realized that not overhauling our aging core systems would generate risk.”