Reimagining Digital Darwinism can put your organization on an evolutionary path
Article｜2024-9-10
5 minute read
In 1859, Charles Darwin published his findings stating that the evolution—or extinction—of a species is determined by the process of natural selection. Just as this theory explains the driving force behind life itself, evolution is an equally important driver for the survival of businesses of all sizes and across all industries. The good news is that another one of Darwin's principles is also at work in the modern landscape of an increasingly digital world. Namely, adaptation.
Even here at Fujitsu, we had to face the reality of adapting to rapid changes if we wanted to maintain our competitive edge. As Fujitsu’s CDXO (Chief Digital Transformation Officer) and CIO (Chief Information Officer), I was responsible for leading an internal digital DX strategy that—in Darwinian terms—could be the difference between evolving and going extinct. I’d like to tell you about how this strategy started, and how it’s going.
Where purpose and strategy meet
The essence of digital transformation (DX) is using data and digital technologies to create new value. Each organization has to ask themselves, ‘how should we change our business model and corporate culture to make it happen?’
That’s a question I’ve been asking myself a lot in recent years and generating a meaningful answer has been a challenging task. When I think back to 2020 when I joined Fujitsu, the topic of DX was in the air. We had just announced our intention to implement a DX strategy, but it was not clear what exactly we wanted to achieve. We had to remind ourselves to always start by asking ‘why are we doing this’ and not ‘what is technologically possible.’
Needless to say, as a company with offices and employees around the world, each with their own unique needs, challenges and business priorities, finding a unifying thread that tied the DX project together wasn’t immediately obvious. The breakthrough came in May of 2020 when we announced our new corporate Purpose: “Make the world more sustainable by building trust in society through innovation.”
Once our Purpose was in place, it opened up the floodgates for all kinds of important changes. Suddenly, the vision of Fujitsu's future through DX became clear. There was now a direct link from DX to sustainable growth, but we had to adopt the mindset that ‘nothing is sacred’ when it came to setting disruptive targets to make these important changes come to fruition. The time had come to adapt and evolve.
Datum 1: DX is not the end goal
Approaching a DX project as a mission in of itself is a dead end. The first step is to determine the ideal state you wish to achieve. Only then can you begin to assess the digital tools to spur the transformation that will achieve that state.
A complete revision
Just as biological evolution is a gradual process, so too is organizational evolution. We are currently only halfway through our DX journey, but it’s easier than ever to picture the positive outcomes at the end of the road. What are they exactly? We refer to them as ‘4X,’ alluding to the transformations we’re advancing in four distinct areas:
- Customer Transformation (CX: A series of business-focused initiatives)
- Employee Transformation (EX: Measures aimed at activating Fujitsu’s people, organization, culture)
- Operational Transformation (OX, Process innovations to optimize operational efficiency)
- Management Transformation (MX, Initiative to spur excellence in leadership)
Source: Ridgelinez (modified)
We identified approximately 150 themes related to IT reform, including the 4X, Purpose-driven management, and digital and data processes. Then, we established a system to monitor, classify, and prioritize the themes every three months to promote a steady drumbeat of reform.
The reason for this system is that the project itself could be jeopardized if the 4X are not in sync. There are two main points to consider: the first is making sure there is an organic link between all reform efforts to create a virtuous cycle of change. Digital and data processes, and IT solutions are the engines that drive the entire company toward its Purpose.
The second point is to have the leadership team assertively engaged in promoting these reforms. That means implementing a management structure capable of formulating a new approach that empowers simultaneously occurring future-oriented re-optimization efforts by building on past reforms. In other words, escaping from the trap of depending on past methods is the key to making meaningful DX strides.
In this case, the past methods involved a complex network of in-house IT systems, digital technologies, and unused data. Evolving along a Purpose-driven, sustainable growth trajectory by making progress on the 4X transformations meant undertaking a change program of global consolidation, streamlining and standardization. Enter One Fujitsu.
Datum 2: DX demands data
Working towards the end goal of a DX project takes an orchestrated effort across departments and regions. It also requires a periodic analysis of the progress being made. Stay the course? Pivot to another priority? Rethink the goals? Those are the questions along the way that lead to the most successful outcomes.
A foreseeable future
The One Fujitsu program was launched as a major initiative to optimize the company and management structure for the future. The end goal is sustainable growth and improving profitability for the Fujitsu Group, which we believe requires focusing on three key initiatives: real-time management, data visualization, and standardization of business operations.
This program marks a monumental shift in mindset—it is an unprecedented move towards predictive management. By taking full advantage of digital technology infrastructure and unifying previously siloed data, every region and function across the Fujitsu Group can use the same data in real time. Making this approach even more valuable is the inclusion of AI technology that enhances predictability and bolsters the true value of the Company. The One Fujitsu program is based on two main activities:
Mapping and consolidating IT systems
In April or 2021, Fujitsu had over 4,000 in-house IT systems. To date, we have decommissioned and integrated more than 1,000 systems, but the reality is that a vast number of systems remain. The objectives of those remaining systems have all been divided into categories: segmented operations, basic operations, global standards and local optimization. There is still a long way to go, I’m confident we’re on the right track.
Putting standardization in the hands of the business
Unlike many standardization projects, which are often driven by the IT teams, the One Fujitsu program was headed by a steering committee consisting of the CEO, CFO (Chief Financial Officer), me. The reason is simple: standardization should be done by the business units themselves. We believe that continuous innovation is the key to creating a business system that meets global standards.
The way forward is set, the business stakeholders are engaged, and the ultimate objective is now a shared vision: ensuring Fujitsu’s DX learnings help customers and society continue to evolve toward a sustainable future.
Datum 3: DX is BX (business transformation)
Too often, DX is viewed as an IT-optimization project, but that’s only the beginning. It needs to reach every part of the organization and be integrated into a larger growth strategy. Only then will reveal its full potential as a business transformation driver.
A revolutionary type of evolution
With most evolutions, there is an element of chance that could spell unpredictable results down the road, but the One Fujitsu program isn’t like most evolutions. Thanks to real-time monitoring capabilities and a vision for the end state, there is an element of control that Darwin could never have accounted for. In the end, it is people, driven by purpose and supported by data, that are the key to bringing about the virtuous cycle of change that we are imagining. The first step in DX is to start with people. Purpose is the foundation for behavior change. In order to instill change in employees centered on the purpose they want to achieve, the highest levels of management have to embody change, engage in dialogue and communication, and share their to-be vision. Beyond that, the wave of voluntary changes originating in the field will spread throughout the company, helping us make strides in turning our Purpose into action.
In this way, Fujitsu is promoting a more inclusive version of Digital Darwinism; one that benefits the Group, customers and society at large. Instead of survival of the fittest, it is a new paradigm that encourages survival of the values that will help the world survive—trust, innovation and sustainability. There’s no turning back now. The future is evolving in real time.
Yuzuru Fukuda Corporate Executive Officer, EVP, CDXO, CIO
Fukuda joined Fujitsu in 2020 as CIO and Deputy-CDXO (Chief Digital Transformation Officer), and assumed his current position in 2023. In this role, he is spearheading the exploration, implementation, and frameworking of DX based on Fujitsu- and Japan-originated methodologies, and to transform the IT systems, IT departments, IT human resources, and IT governance that promote these transformations.
Before joining Fujitsu, he worked at SAP Japan for 23 years, advising on and supporting management and business reforms through IT and digital technologies for large companies. He also served as President and CEO of SAP Japan from 2014 to 2020.
Related Information
Fujitsu eyes Celonis’ process mining a key tool for data-driven management
