Daiwa House Embarks on Digital Finance Transformation with SAP


SAP implementation partner Fujitsu has been supporting Daiwa House Industry’s digital transformation for many years now, including the company’s latest digital finance transformation with SAP.

In 2019, Daiwa House Industry, Japan’s largest homebuilder and a prefabricated housing specialist, tapped Fujitsu Ltd., global information and communications technology equipment and services company, to help the company build an ERP system that will unify its growing group of 357 companies as well as strengthen overall governance across the organisation. Leveraging SAP S/4HANA Cloud, Daiwa House was able to have a two-tier ERP system with zero add-on development, reduced version upgrade costs, create development procedures templates, and standardise finance processes.

Following the successful SAP implementation project, Daiwa House Industry has renewed its partnership with Fujitsu for the management infrastructure system of the company with a focus on finance transformation. (InsideSAP Asia often references articles from websites in other languages to bring you as much information as possible.) Daiwa House’s finance modernisation project is centred on SAP S /4HANA and SAP S /4HANA for Central Finance to deliver deeper governance to the global construction firm through enhanced capabilities on financial information analysis and visualisation.

Starting as a pioneer of prefabricated housing, Daiwa House Group has massively grown since 1955, has become a highly-diverse construction and housing multinational company, and has been on the Fortune Global 500 list for 12 consecutive years. As of March 2021, the Japanese enterprise has grown to 444 companies employing over 48,000 professionals worldwide delivering its vision of co-creating “value for individuals, communities, and people’s lifestyles” by leading urban development and offering living services aside from building houses.

Addressing Growth Challenges with Digital Finance Transformation

Daiwa House’s expanding market footprint and scaling business growth driven by mergers and acquisitions and rapid globalisation has revealed emerging challenges. The company recognised the need for an IT platform to address pressing concerns on financial and non-financial information visualisation, governance and risk management, management resources utilisation across business divisions, and business management in regional offices.

Relying on Fujitsu’s SAP expertise to deploy SAP S/4HANA as the core of the Daiwa House’s digital transformation–anchored on three key interests namely link internal and external processes, drive speed, and innovate with the latest technology– the company is focused on the following:

  • Real-time understanding of the financial status
  • Faster decision-making capabilities 
  • Enhanced operational efficiency and management plans as a result of automation in analysis and report creation

In addition, the multinational enterprise has also slated to deploy: 

  • SAP S/4HANA for central finance to unify financial data across the organisation including overseas offices, acquired companies, and joint ventures. SAP S/4HANA for central finance enables companies to transform their financial data and modernise processes in a phased SAP S/4HANA ERP onboarding, which helps avoid disruption on multiple ERP legacy systems and reduce risk.
  • SAP Central Finance Transaction Replication by Magnitude for SAP S/4HANA for timely accounting slip collection regardless of the system used. The solution connects central finance to distributed systems, allowing real-time visibility to third-party operational details and transactions for faster, more-cost-effective finance implementations.
  • SAP Central Finance Data Harmonisation by Magnitude for SAP S/4HANA for master data identification and replication. The solution enables organisations to create powerful master data record that supports finance processes, accelerating governance and integration of master data from distributed SAP and third-party systems.

Daiwa House Industry and Fujitsu’s SAP project implementation will kickstart on August this year.

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