Issues Requiring a Response

In order to further raise corporate value, the TIS INTEC Group recognizes the need to further promote the three basic concepts of the third medium-term management plan, which are "Profit Emphasis," "IT Brain—Expansion of Value-added Business," and "Portfolio Management," as well as promote "Generation of On-site Vitality," "Management Enhancement," and "Fostering of Unified Corporate Culture" to support these core concept initiatives.

1. Profit Emphasis

Regarding "Profit Emphasis," the Group has been implementing a range of measures to minimize unprofitable projects. A Production Innovation Committee comprising representatives from Group companies has been formed, the accuracy of project screening has been improved at the customer proposal level, and project monitoring functions have been strengthened. The Group will thoroughly implement these measures to raise profitability and productivity and thereby increase profits.

2. IT Brain—Expansion of Value-added Business

Regarding "IT Brain—Expansion of Value-added Business," although the Group has promoted all types of platform business and expanded the range of services in existing fields, the results have not met expectations. Moving forward, the Group will develop new services in industries where it has yet to make inroads. Furthermore, in fields with a close relationship to IoT, AI and other cutting-edge technologies, the Group will develop specific links between its R&D activities and its business activities while also strengthening human resources to meet business needs when launching organizations for these fields. Additionally, the Group will strive to make more accurate investment decisions when launching these types of service-oriented businesses through timely upfront investments matching market needs.

3. Portfolio Management

Regarding "Portfolio Management," the consolidated management of Group company business in and outside Japan has been promoted. The goals of portfolio management, however, are to identify strategically important fields for the Group, promote the acceleration of business tie-ups among the Group companies, and ensure the Group performs at a top level in each of its business areas. The Group will continually integrate and reorganize its businesses to optimize the business portfolio and ensure that management does not end with simple business consolidation. Regarding the BPO business, the Group has consolidated business sites located in multiple areas in order to improve earnings. In the IT infrastructure field, the Group has integrated the networks existing between the data centers operated by Group companies to both lower costs and create an environment in which Group companies can mutually utilize each other's services.
In addition to the above issues, the Group is vigorously tackling the following issues.

4. Generation of On-site Vitality

Regarding "Generation of On-site Vitality," raising the motivation of employees and generating more on-site vitality are recognized as the most important factors in ensuring sustainable corporate growth. To support this initiative, the Group is promoting the expanded use of telecommuting and other diverse types of work systems, the establishment of IT infrastructure to promote work efficiency, the establishment of satellite offices, trials with free address offices, and active investments in training.
Led by its executive management, the Group will strive to create working environments which enhance employees' passion for work and which ensure that a diverse group of people, including female employees, can thrive and make the most of their talents.

5. Management Enhancement

Regarding "Management Enhancement," the number of independent outside directors has been raised from two to three in order to establish a new Group governance system and ensure that Group receives input on its management from multiple perspectives and based on a diverse range of experience and insight. From fiscal 2017, in order to realize greater benefits from the transition to a holdings company system, new programs have been implemented to strengthen the human resources and business relations between the TIS business units and Group companies. These programs will be continued and strengthened to support a more robust Group governance structure.

6. Fostering of Unified Corporate Culture

Regarding "Fostering of Unified Corporate Culture," in conjunction with the transition to a holdings company system, the Group has formulated new Group Vision for the next 10 years. Under the new Vision to be achieved by 2026, the Group will strive towards the ideal corporate image of "Create Exciting Future" by leveraging next-generation technologies and know-how to make business innovations and create new markets. This Vision will be shared by all Group employees and various programs will be instituted to encourage employees to put this Vision into practice during their daily work activities. The Vision will serve as the basis for the fourth medium-term management plan beginning FY2019, with the Group striving to implement initiatives to realize the corporate image.

Update : November 1, 2017, 16:54


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