Fujitsu pins hope on restructuring
Fujitsu, the Japanese information and communication technology firm, is embarking on a major business restructuring programme aimed at eliminating redundant management processes and reducing operating costs.
The move by the world's fourth largest ICT firm is expected to focus on delivering services to customers in every region of the world, said Tatsuya Tanaka, head of Fujitsu Asia.
Fujitsu has carved its business into five segmented regions: Japan, Asia, US, EMEIA (Europe, Middle East, India and Africa) and Oceania.
Previously, the company divided its operations into only three regions: Japan, China, and the rest of the world.
"Given greater complexity and intensifying competition in the global ICT market, our new organisational structure will better serve our customers' requirements in different regions," Mr Tanaka said.
The new structure will also streamline the group's working processes and eliminate duplicated tasks, he said at the Fujitsu Asia Conference held in Bangkok on Friday.
To capitalise on high business growth in Asia, Mr Tanaka said Fujitsu has set up a new business unit responsible for implementing strategies and activities in the continent which is home to 60% of the world's population.
He added that Fujitsu is exploring more mergers and acquisitions of companies with advanced technologies in order to strengthen synergy in cloud computing and ICT-related services.
"We're focusing on developing applications rather than selling hardware as they provide higher margins," said Mr Tanaka.
In Asia, he said the hardware business contributed over 50% of total revenue, while businesses in other regions made up only 30%.
Fujitsu expects revenue from Asia to hit double digits following the restructuring, up from its single-digit contribution previously.